Barclays reported on Thursday that its net profit increased by about a quarter in the third quarter, thanks to stronger performance in its core UK and investment divisions, as well as cost-cutting measures.
Barclays said in a statement that profit after tax increased by 23% to approximately £1.6 billion ($2.1 billion) in the three months ending September 30 compared to the same period a year ago.
"We continue to exercise cost discipline and remain well capitalised," stated Barclays CEO C. S. Venkatakrishnan.
In February, Barclays announced plans to cut £2 billion in costs over the next few years, after laying off 5,000 employees in 2023. The bank's acquisition of the banking business of British grocery behemoth Tesco is still expected to be completed next week.
"The acquisition of Tesco Bank... forms part of our commitment to invest in the UK," Venkatakrishnan said on Thursday.
Barclays UK's net profit increased by 17 percent in the third quarter, while its investment banking segment saw a 12 percent increase. Barclays shares rose 3.6 percent at the start of trading following the earnings announcement.
"Barclays is a multi-headed beast, and these numbers highlight once again the strength of its diversified model," said Richard Hunter, head of markets at trading firm Interactive Investor.
Barclays is the second of Britain's four big banks to report during the current earnings season.
Lloyds Banking Group reported a reduction in net earnings on Wednesday as global interest rates fell, adding that the first nine months' performance was also hit by increasing costs.
NatWest reports its latest earnings on Friday, followed by HSBC on Tuesday.