Barclays (BARC.L) posted a forecast-beating rise in profits in the third quarter, with income from its investment bank leading growth.

The bank reported a 23% increase in attributable profits, which is owed to shareholders, to nearly ￡1.6bn. This beat consensus forecasts of nearly ￡1.3bn, according to figures provided by the bank.

Meanwhile, profits before tax rose 18% year-on-year in the third quarter to ￡2.2bn ($2.8bn), also coming in ahead of estimates of ￡1.97bn.

The company reported a 14% decline in credit impairment charges, which refers to the reduction in the value of assets, to ￡374m, compared to the same period last year.

Barclays said it had delivered a further ￡300m in cost savings in the quarter, resulting in year-to-date savings of ￡700m, putting it on track to deliver around ￡1bn in efficiencies for the year. Barclays announced a structural overhaul of its business back in February, with the aim of cutting costs by ￡2bn.

C S Venkatakrishnan, group CEO of Barclays, said: "We continue to be focused on disciplined execution of our three year plan and are encouraged with progress to date. Whilst there is more work to do, the Group is on track to achieve its target of greater than 12% RoTE in 2026."

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Total income across the business was up 5% year-on-year to ￡6.5bn, with the most growth seen in its investment banking division, where income had increased 6% to nearly ￡2.9bn.

On an earnings call on Thursday, Venkatakrishnan, also known as Venkat, said the company's investment banking business had seen "improved market share".

Barclays reported an increase in net interest income, the gap between what it pays out to savers and borrowers in interest, to ￡3.3bn from ￡3.25bn last year.

The bank raised its guidance for group net interest income, excluding its investment bank and head office, to "greater than" ￡11bn from around ￡11bn.

Barclays shares had climbed nearly 4% on Thursday afternoon, with the stock trading at around nine-year highs.

Venkatakrishnan said its acquisition of Tesco (TSCO.L) Bank's retail banking business was set to complete on 1 November.

In its first-half results, Barclays reported an 8% fall in profits before tax to ￡4.2bn in the first six months of the year, but this also came in ahead of forecasts.

The bank announced a share buyback of up to ￡750m and a half-year dividend of 2.9p per share.

Russ Mould, investment director at AJ Bell, said: “Barclays’ big beat has got investors excited, with the shares adding to the significant gains already made in 2024 in early trading.