Jes Staley predicted the strongest 12 months for financial progress for the reason that aftermath of the second world conflict, at 6.5% this 12 months, as “large pent-up demand” constructed up through the pandemic is launched.
“So we see – identical to you’re beginning to see within the US as effectively – fairly a strong financial restoration in 2021,” Staley stated. “We predict that can carry by means of into 2022.”
He made the upbeat evaluation of the outlook for the economic system as Barclays printed its first-quarter outcomes, which confirmed earnings on the financial institution greater than doubled over the interval to £2.4bn.
Whereas the financial institution recorded a drop in shopper spending at first of the 12 months, Staley stated the pattern was already reversing, helped by the “extraordinary success” of the UK’s vaccination programme.
He stated spending was already up 70% through the first two weeks of April, in contrast with a 12 months earlier.
The upbeat forecast meant the lender was capable of put apart a smaller sum to cowl buyer defaults linked to the pandemic. It logged a £55m cost to cowl dangerous money owed, a fraction of the £2.1bn put aside throughout the identical interval final 12 months.