High-street bank Barclays reported a sharp rise in first-quarter profit as 'materially' lower credit impairment charges offset a fall in income.
For the three months through March, pre-tax profit jumped to a record £2.4 billion from £0.9 billion, while income slipped 6% to £5.9 billion year-on-year.
Common equity tier 1 ratio fell 50 basis points to 14.6%.
Credit impairment charges decreased to £77 million from £481 million last year, driven by reduced unsecured lending balances, no material single name wholesale loan charges and limited portfolio deterioration, the company said.
Looking ahead, the company expects that the full year 2021 impairment charge would be materially below that of 2020 'reflecting delinquency experience and an improved economic outlook during the latter part of Q121.'
For the full-year, the CET1 ratio was expected in the range of 13-to-14%.