Adjusted profits at UK lender Barclays surged by over a fifth in the first quarter of 2012, well above expectations.
Adjusted pre-tax jumped 22% from just over £2bn registered in the first quarter of 2011 to £2.445bn this year.
Consensus estimates were for a reading of £2.006bn. Adjusted results exclude the impact of £2.620bn own credit reversal (2011: £351m), £300m in provisions for PPI redress (2011: zero) and any gains on acquisitions and disposals (2012: zero, 2011: £2m).
On a statutory basis, the bank reported a pre-tax loss of £475m, compared with a profit of £1.655bn last year. Total income excluding own credit rose to £8,138m, 5% higher than the first quarter of 2011.
Meanwhile, income at the investment bank (known previously as Barclays Capital) increased by 3% year-on-year to £3.464bn, ahead of consensus estimates of £3.360bn.
Adjusted return on equity increased from 10.2% to 12.2%, while the Core Tier 1 ratio dipped slightly from 11% at the end of 2011 to 10.9%.
The first-quarter dividend was maintained at 1p per share.
"Barclays first quarter results are an encouraging start to the year and demonstrate continued progress across our execution priorities," said chief executive Bob Diamond (pictured).
“We achieved an adjusted return on equity that exceeded 12%, driven by strong results in UK RBB, Barclaycard, and Wealth and Investment Management and improved performances in Corporate and Investment Banking.
"Our rock solid capital, funding and liquidity positions remain a source of competitive advantage and enabled us to fund a substantial proportion of our 2012 term funding requirements.”
Last week Barclays revised the terms of Diamond's bonus package after an outcry from shareholders.
Additional reporting by ShareCast
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