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Barclays profit up 31% as TUC demands 35% bank surcharge

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Barclays profit up 31% as TUC demands 35% bank surcharge

Barclays reported profit before tax of £3.3 billion for the second quarter on Tuesday, up 31 per cent, as the TUC called for the surcharge on banking profits to be raised to as much as 35 per cent.

The FTSE 100 lender said strong equities trading activity had helped lift quarterly profits. It also upgraded its guidance, telling investors it now expects group income of about £31.5 billion this year, having previously anticipated about £31 billion.

Paul Nowak, TUC general secretary, said: “Big banks like Barclays are raking it in while working people and local businesses are struggling. This is a chance for the new prime minister and chancellor to show whose side they’re on. It’s time to increase the bank surcharge and tax banks to bring down energy bills.”

The surcharge is levied on bank profits on top of corporation tax. HMRC set the rate at 3 per cent from 1 April 2023, down from 8 per cent, and raised the banking group allowance to £100 million. Business Matters reported in October that the Treasury was examining restoring the surcharge to 8 per cent, a move expected to raise about £2 billion a year.

Speaking on a media call with journalists, CS Venkatakrishnan, the Barclays chief executive known as Venkat, pushed back on suggestions that banks could be a target for more taxes under Andy Burnham’s government, saying the sector already pays “the highest rate of tax globally”.

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He added: “We think that the track record that we and the other banks have in terms of supporting UK growth and UK lending… is really important for the health of the economy, and we hope that will be considered.”

Barclays is the first of three major UK banks to report first-half earnings since Burnham appointed John Healey as chancellor on 20 July.

Group income rose 16 per cent to £8.3 billion over the second quarter, beating City estimates. Over the first half, income rose 11 per cent to £16.5 billion, with profit before tax up 17 per cent to £6.1 billion.

The investment bank reported profit before tax up 32 per cent to £1.7 billion over the quarter, with income from equities trading up 45 per cent. The results follow record profits at Wall Street banking giants, where traders capitalised on volatility in financial markets.

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Corporate banking income rose 8 per cent to £1 billion over the half year and profit before tax rose 30 per cent to £566 million. In retail banking, net interest income, the difference between what the bank charges borrowers and what it pays savers, rose 8 per cent to £4.5 billion, with profit before tax up 10 per cent to £1.8 billion. Private banking and wealth income rose 2 per cent to £713 million, while profit before tax fell 21 per cent to £186 million.

The bank increased its provisioning for loan losses to £1.4 billion, up from £1.1 billion, which it said was “primarily driven” by the funding set aside to handle the collapse of Market Financial Solutions, the Mayfair-based provider of mortgages and bridging finance that collapsed amid allegations of fraud.

Barclays also launched a £1 billion share buyback and increased the interim dividend to 5.9p a share, up from 3p a share in the same half last year. The three-year targets it set out in February include about £2 billion of cost savings and more than £15 billion of capital returns by the end of 2028.

Shares in Barclays fell 5 per cent, or 27¼p, to 503p. The stock has risen nearly 40 per cent over the past year. Some analysts said the investment bank’s performance had lagged Wall Street rivals, which saw equities trading boosted by SpaceX’s initial public offering.

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Gary Greenwood, investment analyst at Shore Capital, said the shares had had a strong run-up to the results and “expectations had got ahead of themselves”. He said the investment bank had been “the standout performer” and that the group’s corporate banking services had “more than offset softer consumer trends”.


Jamie Young

Jamie Young

Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the ‘covid era’ and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine’s coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk

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Oil prices rebound by more than $2 a barrel on prospect of tightening US crude supplies

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Oil prices rebound by more than $2 a barrel on prospect of tightening US crude supplies
Oil prices rose by more than $2 a barrel in early trade on Wednesday on shrinking U.S. crude inventories, recouping some of the previous session’s losses caused by a pause in fighting between Washington and Tehran.

Brent futures increased by $2.71, or 3.2%, to $86.80 a barrel at 0002 GMT, while U.S. West Texas Intermediate (WTI) ‌crude rose $2.26, ⁠or 3.4%, ⁠to $81.95.

U.S. crude inventories fell by about 3.3 million barrels in the week ended July 24 ,market sources said on Tuesday, citing data from the American Petroleum Institute.

Gasoline inventories, meanwhile, grew by 918,000 barrels, while distillate inventories climbed 355,000 barrels compared with a week earlier, the sources said.

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Official inventory data from the Energy Information Administration is due later on Wednesday.


Further supporting prices, OPEC+ will ⁠likely halt ‌oil output increases for three months starting in October, sources told Reuters, after the producer group completes the scheduled return of ⁠barrels following voluntary cuts.
Oil prices have whipsawed on the U.S.-Israeli war in Iran, which has disrupted global flows of crude oil, particularly with the effective closure of the Strait of Hormuz. Prices plunged by about 5% on Tuesday to a two-week low on hopes that efforts to end the U.S.-Iran conflict would resume in earnest after a pause in hostilities.

U.S. President Donald Trump, who called off a two-week ‌U.S. bombing campaign over the weekend, told .Fox News on Tuesday that there were “good talks” with Iran, but threatened more strikes if negotiations break down. Iran, however, has ⁠denied that it is seeking to resume talks with the U.S.

Meanwhile, a Gulf source and a Western diplomat told Reuters that Oman has presented Iran with a plan to manage the strait, which would include collecting voluntary fees for using the passageway.

The proposals, backed by Gulf states, aim to serve as a basis to end the disruption to trade through the strait caused by the war.

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Council limits fence height for Goyders’ $17m Peppermint Grove house

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Council limits fence height for Goyders’ $17m Peppermint Grove house

Mining executive Tim Goyder’s plan to fence off his $17 million Peppermint Grove home has sparked a discussion on security at a western suburbs council.

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Costco $14M settlement: Washington shoppers may receive up to $500

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Costco Tillamook cheese bargain makes membership worthwhile for shoppers: report

Costco shoppers in Washington may be eligible to receive a cash payout after the retailer agreed to settle a class action lawsuit accusing the retailer of sending misleading promotional emails advertising limited-time offers.

The lawsuit alleges Costco violated Washington’s Commercial Electronic Mail Act (CEMA), which regulates commercial email marketing.  

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Under CEMA, recipients may recover up to $500 per qualifying email. However, the actual payout from the settlement is currently unknown and will depend on the number of valid claims submitted. 

While denying any wrongdoing, Costco agreed to pay $14 million to settle the lawsuit, Aaland v. Costco Wholesale Corp.

COSTCO HIT WITH LAWSUIT ALLEGING PROTEIN POWDER SOLD IN STORES CONTAINS ‘DANGEROUS’ LEVELS OF LEAD, ARSENIC

Costco

People arrive and depart at a Costco Wholesale store on June 13, 2026, in Bayonne, New Jersey.  (Gary Hershorn/Getty Images / Getty Images)

Washington residents whose email addresses are in Costco’s records and who received the promotional emails between June 2021 and July 2026 may be eligible to file a claim. 

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To receive a share of the settlement, eligible class members must submit a claim form by Aug. 24, 2026.

According to the lawsuit, Costco allegedly violated state law by sending commercial emails with deceptive subject lines that created a false sense of urgency by advertising limited-time offers that plaintiffs allege the retailer intended to extend beyond the advertised promotional period. 

Examples of the subject lines cited in the lawsuit include “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.”

Costco shoppers in Vermont.

Customers look over food items at a Costco store in Colchester, Vermont, in August 2024. (Robert Nickelsberg/Getty Images / Getty Images)

COSTCO QUIETLY DISCONTINUES AWARD-WINNING KIRKLAND ITEM FANS CALL ‘ONE OF THE BEST’ IN THE MARKET

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The net proceeds of the $14 million settlement will be distributed equally among class members who submit valid claims after court-approved attorneys’ fees, litigation costs and service awards are deducted. The exact payout per person remains unknown because it will depend on the total number of approved claims. 

Each class member may submit only one claim form, regardless of how many qualifying promotional emails they received from Costco.

Ticker Security Last Change Change %
COST COSTCO WHOLESALE CORP. 966.58 +15.00 +1.58%

Individuals may also choose to opt out of the settlement to preserve their right to sue separately or object to its terms by Aug. 24. 

Those who take no action will receive no compensation and will be barred from pursuing future legal claims related to the allegations covered by the settlement.

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The court will decide whether to grant final approval to the settlement on Oct. 2, 2026, at 3:30 p.m. PT in Seattle. 

Costco customer receipt

Customer handing receipt to door checker employee at the exit, Costco megastore, Queens, New York. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)

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Payments may be issued by paper check, Venmo, PayPal or other electronic payment methods.

 

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Corning Incorporated (GLW) Q2 2026 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript