Barclays is to announce record-breaking profits in spite of the crisis in the banking industry and the bank’s decision to refund overdraft penalty fees to its customers.
The bank predicts gross profits of $14.55 billion this year, surpassing 2006’s unprecedented pre-tax profits of 14.07 billion.
Although Barclays’ shares have fallen in recent months, the bank says it has achieved successful growth in both retail and commercial banking. The profits come despite a $180 million bill for refunding customers who had been charged after exceeding their overdraft limit in the first half of 2007.
Barclays Capital investment banking branch admitted that it had been affected by the credit crunch, but had suffered smaller losses in the sub-prime mortgage market than predicted.
As a result of the development, Barclays has risen to the top of the FTSE 100 leaders board with a 3% increase in stocks.