Barclays posts profit beat for the third quarter on strong bond trading revenue

Wednesday reported an unexpected rise in third-quarter earnings on the back of strong trading revenues, despite a continued drag from a costly U.S. trading error.

The British lender posted a net profit attributable to shareholders of £1.512 billion ($1.73 billion), above consensus analyst expectations of £1.152 billion and marking an increase from a restated £1.374 billion for the same period last year.

“We delivered another quarter of strong returns and achieved income growth in each of our three businesses, with a 17% increase in Group income to £6.4 billion,” Barclays CEO C.S. Venkatakrishnan said in a statement.

The group continued to take a hit from an over-issuance of securities in the U.S., which have led to £996 million in litigation and conduct charges so far this year.

The bank also benefited from an increase in net interest margin — the difference between what a bank earns in interest on loans and pays on deposits — which rose to 2.78% from 2.53% as the group reaped the benefits from higher interest rates.