Barclays warns on economic uncertainty after profit rise

British bank Barclays announced a 10-percent lift in net profit for the third quarter but also revealed rising impairment charges owing to an "uncertain economic environment".

Profit after tax rose to £1.51 billion ($1.73b) in the June-September period, up from £1.37 billion in the third quarter last year, Barclays said in a statement, as the banking sector benefits from rising interest rates.

Impairment charges set aside for expected bad loans more than tripled to £381m. "We are ready to provide support for customers and clients facing an uncertain economic environment and higher cost pressures," Barclays chief executive C. S. Venkatakrishnan said in a statement.

"Whether helping retail customers to manage their finances or corporate clients navigate markets volatility, we will continue to be focused on meeting their needs."

Fallout from the UK government's recent failed budget included huge rises to interest rates on home loans provided by Barclays and its British peers, adding to the country's cost-of-living crisis.

This has given rise to concerns of defaults on repayments by some customers.

Barclays' share price was down 1.2 percent at 148.40 pence following the earnings update.

"Whilst the report card is good there is a good deal of economic uncertainty and worries about a windfall tax on banks," noted Markets.com analyst Neil Wilson.

Recent reports suggest the UK government could attempt to shore up the country's weak finances by further taxing British banks.