Barclays profits beat analyst forecasts

Barclays says first-half profit rose 12 per cent on increased profit from British consumer banking and reduced bad debts.

Pre-tax profit for the six months ended June 30th increased to £1.96 billion sterling from £1.76 billion a year earlier.

The London-based lender was forecast to announce £1.78 billion of earnings, according to the average forecast of six analysts surveyed by Reuters.

Operating profit at Barclays' personal financial services business rose 12 per cent to £534 million. The bad debt charge fell 9 per cent to £652 million pounds.

Barclays, Britain's third-biggest bank, proposed an interim dividend of 7.05 pence, up 11 per cent from a year earlier.