Barclays profits up 12% as UK banks brace for tax increase in budget

Barclays’ strong performance included a 6% rise in net interest income at its UK retail banking operations, to £2bn. Photograph: John Keeble/Getty Images

Barclays is giving a further £500m to shareholders after reporting a jump in quarterly profits, as the lender steels itself for an increase in UK bank taxes at next week’s budget.

The lender said it logged £2.3bn in pre-tax profits over the July to September quarter, up 12% from £2.1bn during the same period last year.