Barclays, RBS announce combined $3.16bn profits; Wary of financial sector reforms

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Both Barclays and Royal Bank of Scotland (RBS) have generated double-digit profits of 10 and 14 per cent respectively. Photo - Christopher Pledger/Telegraph

Banks today are the support system for many individuals and corporations. Out of these, some are highly recommended to join hands with. Barclays is a bank which has over 300 years of history and expertise in the field of finance and banking, and has its branches located in more than 50 countries. The main goal of the bank is primarily to cater to the welfare and needs of its clients.

From basic amenities to high end market development, the London-based bank provides financial advice and services such as credit cards, insurance, loans, mortgages and other products. The public-owned Royal Bank of Scotland (RBS) and Barclays together are expected to announce a combined profit of more than US$ 2 billion, an indication they have fared well and handled the economic downturn better than others.

However, instead of boasting about the good performance, both top British banks have expressed concerns over tough regulations and warned that it may lead to slow investment banking and further financial contagion.

SCRUTINY

Analysts at Credit Suisse expect Barclays to review the third quarter of profit in the region of $3bn. RBS, on the other hand, is expected to report a third quarter profit to the tune of $632m besides considerable contraction in investment banking arm. Both banks face equal scrutiny as to what they reveal and do not reveal along with the support of the treasury and publication of the final Independent Commission on banking report in the previous month. The treasury will publish a financial service white paper next month which is expected to set out guiding principles for the banking sector.

The white paper is set to create a roadmap for all banks operating within the UK and will provide guidelines to service providers on how to generate profits in cash and kind.

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