Barclays Earnings: Challenging Deposit Environment Weighs on Net Interest Margin Outlook

Barclays reported third-quarter operating profits before tax of GBP 1.885 billion, down 4% from a year ago. Excluding the impact of the over-issuance of securities in the third quarter last year, income declined 2%, driven by a 2% decline in Barclays U.K. and a 6% decline in the corporate and investment bank. The consumer, cards, and payments segment did offset part of this weaker performance by growing 9% on the back of higher U.S. card balances, but weakening net interest margins and lower volatility and activity across markets held Barclays back overall. We maintain our GBX 208 per share fair value estimate and no-moat rating.