Barclays enjoys 23% half-year profit rise

Banking group Barclays today said its UK arm had performed well as it posted a 23% rise in half-yearly pre-tax profits to a record £2.4bn (€3.6bn).

The group said its core UK banking business increased profits by 6% to £1.2bn (€1.8bn) in the period to June 30.

Barclays’ stockbroking and international business saw profits rise by 52% to £196m (€296m) and Barclaycard increased its contribution by 11% to £428m (€648m).

The bank boosted its interim dividend to shareholders by 17% to 8.25p.

Group chief executive Matt Barrett said Barclays had a record half-year, with all businesses delivering higher profits.

He added that the economic outlook for the remainder of 2004 looked healthy, with the world economy continuing to expand briskly.

“This provides a very helpful backdrop for the UK, where growth remains above trend and is expected to do so for the rest of the year,” he said.

In a press briefing, the company refused to comment on market speculation linking it to a possible counter-bid for Abbey National, which is the subject of an £8bn (€12bn) takeover offer by Spanish bank Banco Santander Central Hispano.

Barclays also said it could not rule out further job losses at the London head office of its UK retail banking business on top of 800 already announced in June.