Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “Barclays delivered a strong second quarter, with income and profit coming in ahead of expectations.
“The Investment Bank did much of the heavy lifting, helped by buoyant share trading and a recovery in corporate dealmaking, while loan impairments at the group level were lower than feared.
“Costs were higher than expected, but income grew faster, and the combination of a larger dividend and £1billion share buyback adds further weight to an encouraging set of numbers.
“The outlook has also improved, with Barclays raising its full-year income target and expecting more benefit from its core banking activities.
“UK lending continues to grow, and the Investment Bank is producing much healthier returns, although it still has more to prove against the scale of its US rivals.
“For now, the strategy is moving in the right direction, with stronger profits supporting investment in the business as well as increased cash returns to investors.”
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