British bank Barclays said today it expected 2005 earnings to rise in line with market expectations amid continued strong growth at its investment bank and fund management arms.
Barclays said it expected overall impairment charges, excluding its South African Absa business, to be in line with previous guidance. It said the rate of growth in charges at its Barclaycard business in the first nine months of the year were consistent with first-half trends.
Barclays said charges and investment at Barclaycard more than offset the credit card unit's income growth.
Britain's third-biggest bank kicked off a series of trading updates from the country's main lenders by reporting strong growth across most of its businesses but noted operating costs were rising in line with income growth in many units.
Barclays shares were expected to dip about 2.5 per cent from yesterday's close of 602 pence, as some dealers said the income growth fell short of some hopes and as the shares have rallied 14 per cent since mid-October. The shares are up 3 per cent this year.
The bank said analysts expected 2005 earnings per share (EPS) to be 52.6 pence and pretax profit to come in at £5.181 billion ($8.9 billion), based on forecasts from 17 analysts. Results for 2004 were not provided on an IFRS reporting basis.