Barclays is scheduled to report results for the third quarter on Thursday. Here is what you need to know.
REVENUE FORECAST: Analysts expect the U.K. bank to report third-quarter revenue of 7.62 billion pounds ($10.14 billion), according to consensus estimates provided by the company, up from 7.17 billion pounds a year ago.
NET PROFIT FORECAST: Attributable net profit for the third quarter is expected to be 1.64 billion pounds, according to consensus estimates. This would be an increase of around 12% from 1.46 billion pounds a year prior.
Shares in Barclays lost 11% during the third quarter and are down by around 15% since the start of the year.
WHAT TO WATCH
-- INVESTMENT BANKING: Barclays's investment bank will be in focus after fixed-income figures for U.S. banks disappointed investors last week. Through its investment bank, Barclays has a larger exposure to global markets than U.K. peers. U.S. banks reported weaker fixed-income results for the third quarter due to interest-rate volatility, which could also affect Barclays's figures. Last year, the business generated 3.08 billion pounds in third-quarter income and was boosted by a 6% rise in fixed income, currencies and commodities trading. Looking ahead, market volatility in October means Barclays could benefit from a stronger fourth quarter in its investment bank, Keefe, Bruyette and Woods analysts wrote.
-- TAXES: British bank stocks slipped earlier this month after a report that U.K. Treasury chief John Healey is set to raise bank taxes in next week's government budget. Analysts say rumors about bank taxes are likely to overshadow earnings for U.K. lenders, and any update from Barclays on how this would affect it will likely draw investors' attention. Options that the government is discussing include reversing cuts to the bank surcharge made by the previous Conservative government, which would raise more than 2 billion pounds a year, The Guardian reported.
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