Barclay's posts 3Q credit card profits
By UK CreditCards.com
The credit card business of Barclays registered a strong performance over the first nine months of 2009, the firm's new interim management statement confirmed Nov. 10.
Barclays said that net pre-tax earnings at Barclaycard were "ahead" of 2008's total and that income had grown "very strongly" over the year. This is partly explained by the fact that some customers are running higher card balances in the credit crunch and recession, resulting in increased interest payments to their provider.
Barclays also said that profits across all of the firm's retail and commercial businesses reached £2.2bn, while profits for the group as a whole were at £4.5bn.
In common with its rivals, the firm has suffered financially from the global credit crisis. Charges from bad debts rose by 65% across the group over 2009, eating into earnings. However, Barclays' overall performance was praised by group chief executive John Varley.
"We have maintained strong income momentum in the third quarter," he said. "This performance shows the resilience and diversification of our portfolio of businesses."
Published: 11 November 2009
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