Barclays’ income fell 4 per cent within the fourth quarter as a plunge in payment earnings at its funding financial institution offset a robust efficiency at its client lending enterprise, which was boosted by rising rates of interest.

Internet earnings decreased to £1.04bn from £1.08bn in the identical interval final 12 months, beating analysts’ expectations of £919mn, the British financial institution stated on Wednesday. Income rose 12 per cent to £5.8bn, however this was beneath the common £6.1bn estimate.

Barclays UK, its ringfenced client lender, posted income 13 per cent larger than in the identical interval in 2021. That was pushed by a rise in income from private and enterprise banking because the Financial institution of England raised charges, which this month hit a 15-year excessive of 4 per cent.

On the funding financial institution, fixed-income buying and selling surged 79 per cent, however this didn’t offset a 50 per cent plunge in advisory and capital markets charges, matching tendencies seen within the quarter on Wall Avenue. Consequently, income on the division fell 2 per cent to £2.6bn.

The financial institution additionally added £500mn of credit score impairment prices within the quarter, which it stated mirrored “the deteriorating macroeconomic forecast”.

For the total 12 months, internet earnings fell 19 per cent to £5bn in 2022, simply above analysts’ expectations of £4.9bn.

The decline mirrored an embarrassing buying and selling error that led to the financial institution by chance promoting $17.7bn of structured monetary merchandise it didn’t have authorisation for. It needed to pay $361mn to the US Securities and Change Fee and put aside £450mn to compensate buyers.

Income rose 14 per cent to £24.9bn, barely decrease than the £25.2bn estimated by analysts. The financial institution made a return on tangible fairness — a key profitability metric — of 10.4 per cent for the 12 months, down from 13.1 per cent in 2021.