Group income was also up 5% year on year, coming in at £6.5bn for Q3.

A balance sheet comparison between 30 September 2024 and 31 December 2023, reveals that loans and advances to customers decreased by £3.5bn to £199.3bn, driven by subdued mortgage lending reflecting wider market factors and continued repayment of government scheme lending in business banking.

Commenting on the latest numbers Barclays group chief executive C. S. Venkatakrishnan 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% return on tangible equity ( RoTE) in 2026.”

He added: “In Q324 Barclays delivered a RoTE of 12.3%, supporting our target of greater than 10% in 2024. Tangible net asset value (TNAV) per share increased to 351p, up 11p versus prior quarter and up 35p year-on-year.

“The acquisition of Tesco Bank, to complete on 1 November 2024, forms part of our commitment to invest in the UK. We continue to exercise cost discipline and remain well capitalised with a Common Equity Tier 1 (CET1) ratio at the end of the quarter of 13.8%.”

Barclays’ third quarter numbers come hot on the heels of high street rival Lloyds Bank’s whose interim management statement for third quarter shows a stronger mortgage book. At 30 September 2024, the figure stood at £310.1bn, compared to £306.9bn at end of June 2024 – representing a 1% rise.

Lloyds reported statutory pre-tax profit for the July-September period of £1.82bn, a slight fall from the £1.86bn a year ago but ahead of the average analyst forecast of £1.6bn.