Barclays posts £5bn profit as economic outlook brightens

It is now resuming the interim dividend for the first half at 2p per share , a higher level than analysts expected, and has unveiled another share buyback worth up to £500m.

The strong results come months after the bank finally saw off the threat posed by American corporate raider Ed Bramson, who ended his three-year battle against Barclays in May by selling his entire stake.

Mr Bramson, who runs Sherborne Investors, sold his 6pc holding following critcism from his own shareholders, who said they were losing patience with the activist’s campaign against the bank.

The investor wanted to shrink Barclays’ investment banking arm and potentially split it off – setting the stage for a clash with Jes Staley, the chief executive, who fiercely resisted his efforts. 

Mr Staley told reporters that the bank had not been hugely impacted by the ‘pingdemic’ of Covid app notifications sweeping Britain, which has forced hundreds of thousands of people to self-isolate. Barclays has only had to temporarily close two of its 700 branches as due to potential exposure to the virus.

He hopes to stay in the top job for a “couple more years,” he added, following speculation last year that the bank was looking for successors.