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Investing.com -- Barclays raised its full-year guidance and announced a new share buyback after reporting third-quarter results that reflected stable income trends and faster cost savings, despite higher provisions related to a car-loan redress probe.
Shares in the London-based lender rose 2.8% as of 07:22 GMT.
The bank said it now expects a return on tangible equity (RoTE) of more than 11% in 2025, up from around 11% previously, after posting a 10.6% RoTE for the third quarter.
The improved outlook reflects stronger income performance and faster execution of cost-saving measures, allowing the bank to accelerate its plans to return excess capital to shareholders, CEO C. S. Venkatakrishnan said in the update.
It also lifted its outlook for net interest income—excluding its investment bank and head office—to above £12.6 billion ($16.8 billion), compared with more than £12.5 billion earlier.
Barclays also announced a £500 million share buyback as part of an accelerated plan to move to quarterly repurchases.
For the third quarter, the lender reported a pretax profit of £2.08 billion, down from £2.23 billion a year earlier and broadly in line with analyst expectations of £2.1 billion.
The decline reflected a £235 million increase in provisions tied to the U.K. motor finance investigation, bringing the total to £325 million, along with a £110 million “single name” credit impairment in its investment bank.