Banking giant Barclays has reported an 18% increase in adjusted profits before tax in the first nine months of this year. Shares in the bank rose to the top of the FTSE 100 index on the news, adding 2.5p, or 1.2%, to 203p. Profits before tax rose to £5.07 billion in the first three quarters of 2011 compared with £4.3 billion in the same period of 2010.

Operating expenses stood at £14.5 billion, similar to 2010, but a provision of £1 billion was made for the mis-selling of Payment Protection Insurance (PPI) to customers. Credit impairment charges were also reduced, as the bank wrote off £2.6 billion in the year to date, a drastic reduction from the £4.3 billion in bad debt written down in 2010.

Bob Diamond, chief executive of Barclays, said the £5 billion in profits before tax had been made ‘despite significant economic and market headwinds’. We will continue to generate sufficient capital for our business needs and do not intend to raise new equity capital. We remain committed to lending in theUKand are on track to exceed our Merlin goals,’ he said.

The bank also reduced its exposure to the European debt crisis. Exposure to sovereign debt inGreece,Ireland,Italy,PortugalandSpainwas reduced by 31% from £11.6 billion to £8 billion. Smaller reductions were made in the group’s exposure to mortgages, corporate lending and regional banks. The bank reported exposure of £219 million inGreece, with £23 million of that in sovereign debt.

Sally Bowyer, Managing Director of Brunel Franklin said: “Everyone accepts that banks provide a valuable service and are entitled to make fair and reasonable charges for services. But people shouldn’t be sold PPI without being furnished with the full facts. PPI mis-selling cases serve as timely reminder of how careful we all need to be when taking out new loans and other credit card agreements.”

Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51.