British bank Barclays said today profits jumped 20 per cent in 2003, slightly ahead of market expectations, boosted by growth at its Barclays Capital investment bank.
Pre-tax profit rose to £3.845 billion sterling ($7.18 billion) for the year ended December 31st from £3.205 billion in 2002, the UK's third-biggest bank said in a statement.
Operating profit at the Barclays Capital investment bank rose 35 per cent to £782 million. The debt-focused business has gained from booming issuance and dealing in corporate bonds amid low interest rates, though investors had voiced concerns that the business might wane as rates rise.
Barclays is the first of Britain's large commercial banks to report for 2003. UK lenders have been buoyed by a consumer boom with interest rates at lows not seen since the 1950s.
Profit was also boosted by a fall in bad debt provisions, which dropped nine percent to £1.347 billion pounds.
Analysts had expected profit of 3.816 billion pounds, according to a Reuters poll.
Barclays shares closed up one percent at 515-1/4 pence yestersday. The stock has gained 49 per cent in the past year, making it the second-best performer of the UK's banks behind for-sale Egg.
The bank increased the full-year dividend to 20.5 pence from 18.35 pence a year earlier.