Barclays, Britain's fourth-biggest bank, has played down fears of a major impact from slowing economic growth as it posted a 16 per cent rise in first-half profits.
Investors breathed a sigh of relief that Barclays's asset quality did not deteriorate in the face of the global slowdown and the rise in provisions for bad debts fell short of expectations.
Pre-tax profits in the first six months to June 30th rose 16 per cent to £1.923 billion sterling from £1.652 billion a year ago.
Barclays Irish-born chief executive Mr Matthew Barrett said fears of global economic slowdown were overdone.
"Our view is that there is an excess of doom and gloom about the economy by some commentators and pundits and particularly about the UK economy," Mr Barrett told reporters. "As I said before, there is some cause for caution, but no cause for alarm."
Acquisition policy remains a key issue, and Mr Barrett recently said the bank wanted to expand in continental Europe, with domestic targets effectively ruled out after the government's block on Lloyds TSB's bid for Abbey National.
But Mr Barrett backtracked and said acquisitions were not a priority. He said the main aim was to widen existing operations in Europe, especially in Spain and Portugal.
"Our primary thrust is internal organic growth . . . we're not compelled to chase some big cross-border deal," he said.
"It would be disingenuous if I said we don't . . . look for potential partners down the road that might be a fit with our business, but I wouldn't hold your breath on that," Mr Barrett said.