Barclays lifts quarterly profit 12% and announces £500m buyback

Barclays reported higher profits and announced a £500m share buyback as the UK government considers increasing taxes on banks in next week’s budget. The results underline the lender’s strong shareholder returns, while the prospect of a tax rise is putting the sector in focus.

Pre-tax profit rose 12% to £2.3bn in the three months to 30 September, and UK lending grew 7%, including 14% growth in corporate loans. The investment bank brought in £3.1bn, below forecasts, as fixed-income trading income fell 19%; Barclays has returned £2.8bn to shareholders this year. Elsewhere, France’s 10-year borrowing yield reached 5.039%, its highest since 2002, while Brent crude rose above $111 a barrel amid supply concerns.