Barclays has warned it’s evaluating cost-cutting measures after elevating provisions for bad loans throughout the coronavirus disaster so far to £4.3bn.

The financial institution reported that third quarter group revenue earlier than tax got here in at £1.1bn after reserving costs of £608m within the July to September interval.

It had beforehand revealed provisions of £3.7bn protecting the primary half of the yr as the COVID-19 disaster rocked the worldwide economic system – additionally forcing the financial institution and its UK rivals to the entrance line within the provision of emergency government-backed loans to enterprise clients.

Chief executive officer of Barclays, Jes Staley, takes part in the Yahoo Finance All Markets Summit in New York, U.S., February 8, 2017
Image: Jes Staley is the chief govt of Barclays

Barclays mentioned that it had additionally offered over 640,000 fee holidays globally and foregone “some £100m” within the type of waived overdraft curiosity and banking costs for UK clients and enterprise banking purchasers.

“We have now delivered some £25bn through the government support measures to UK businesses”, the financial institution added.

But its assertion warned that it was evaluating actions to scale back structural prices.

The financial institution mentioned no selections had been taken as the pandemic continues to cloud the trail forward, with file low rates of interest hitting margins.

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Chief govt Jes Staley informed monetary analysts that the prospect of the Bank of England introducing destructive rates of interest in any persistent financial downturn could be “very tough” for banks – placing strain on profitability.

However he mentioned that such a course could possibly be of profit, if it boosted spending within the economic system.

He additionally did not rule out bonuses for the complete yr regardless of dividends to shareholders being suspended.

Barclays mentioned that regardless of the weak price setting, its consumer-facing companies returned to revenue within the interval.

Barclays UK delivered revenue earlier than tax of £196m. The financial institution credited decrease impairment costs and a restricted restoration in financial exercise.

The shopper, playing cards and funds division was within the black to the tune of £165m, Barclays mentioned.

Its funding financial institution continued to be the darling for earnings, with the markets division delivering a 29% leap in income to £1.7bn.

Image: The financial institution’s principal UK rivals, HSBC, RBS and Lloyds, reveal their third quarter outcomes subsequent week

Shares rose 4% on the open.

Mr Staley informed buyers: “In this historically challenging year for our customers and clients we have continued to provide huge support to help people through the social and economic impact of the COVID-19 pandemic.

“This stays a precedence, alongside sustaining the monetary integrity of the agency and holding our colleagues secure.”

Mr Staley has been a cheerleader for the investment bank under pressure from some investors for a renewed shrinking of the more risky division.

Neil Wilson, chief market analyst at, said of the Barclays results: “A robust efficiency on the company and funding financial institution lifted Barclays to a major Q3 pre-tax beat.

“Profits before tax of £1.15bn was about twice what was expected by the market.

“Much like its greater Wall Street cousins the funding banking division is offsetting a weaker efficiency within the shopper financial institution. Sticking with the funding financial institution was the very best factor Barclays may have accomplished.”

Barclays is the primary of the most important UK banks to report on their progress throughout the summer time months.

Next week sees Lloyds, HSBC and RBS reveal their respective updates.