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Barclays 3Q Profit Climbs Amid Sovereign Debt Crisis


Barclays Plc (BARC), Britain’s second- biggest bank by assets, said third-quarter profit increased 5 percent, beating estimates, as the sovereign debt crisis hurt investment banking revenue.

Pretax profit before debt valuation adjustments in the three months to Sept. 30 increased to 1.3 billion pounds ($2.1 billion) from 1.27 billion pounds a year earlier, the London- based company said today in a statement. That beat the 1.24 billion-pound median estimate of 10 analysts surveyed by Bloomberg. Revenue at its Barclays Capital investment banking unit fell 19 percent to 2.7 billion pounds.

“Capital markets remained difficult in October, but have shown some improvement since the announcement by euro zone leaders last week,” the company said in the statement. “Our retail, corporate and wealth businesses have performed broadly in line with their underlying run rates for the first nine months of the year.”

Barclays in June announced plans to increase revenue by as much 6.4 billion pounds by 2013 with more than a third coming from Barclays Capital. The target was challenged in the third quarter as Europe’s sovereign-debt crisis worsened, Standard & Poor’s downgraded the U.S. debt rating, Congress had a protracted debate over raising the U.S. borrowing limit and the Federal Reserve said it would hold interest rates near zero until 2013.

Barclays Plc (BARC), Britain’s second- biggest bank by assets, said third-quarter profit increased 5 percent, beating estimates, as the sovereign debt crisis hurt investment banking revenue.

Pretax profit before debt valuation adjustments in the three months to Sept. 30 increased to 1.3 billion pounds ($2.1 billion) from 1.27 billion pounds a year earlier, the London- based company said today in a statement. That beat the 1.24 billion-pound median estimate of 10 analysts surveyed by Bloomberg. Revenue at its Barclays Capital investment banking unit fell 19 percent to 2.7 billion pounds.

“Capital markets remained difficult in October, but have shown some improvement since the announcement by euro zone leaders last week,” the company said in the statement. “Our retail, corporate and wealth businesses have performed broadly in line with their underlying run rates for the first nine months of the year.”

Barclays in June announced plans to increase revenue by as much 6.4 billion pounds by 2013 with more than a third coming from Barclays Capital. The target was challenged in the third quarter as Europe’s sovereign-debt crisis worsened, Standard & Poor’s downgraded the U.S. debt rating, Congress had a protracted debate over raising the U.S. borrowing limit and the Federal Reserve said it would hold interest rates near zero until 2013.