(Sharecast News) – Barclays became the second bank to post surging profits on the back of higher interest rates and lift its provisions for bad loans.
The bank posted a 22% rise in pre-tax profit for the six months to June 30 to £4.5bn. Bad loan charges increased to £900m from £341m.
Net interest margin – a key metric charting the difference between loan and savings rates, soared to 3.2% from 2.67% as savers continued to receive feeble returns on their deposits amid mounting accusations of “profiteering” in the sector.
Barclays said it now expected NIM to be less than 3.20%, with a current view of around 3.15%.
Reporting by Frank Prenesti for Sharecast.com
