British bank Barclays Plc said its first-quarter financial performance was well ahead of the same period last year, and confirmed it intends to resume paying dividends in the second half of 2009.
"We've had a good start to the year," Barclays Chief Executive John Varley said in a speech at the bank's annual shareholder meeting in London on Thursday.
"In the first quarter of 2009 our financial performance is well ahead of the prior year period, meaning that we've made good profits, and generated equity as a result."
The company, which cancelled its final dividend for 2008 last October in order to conserve capital as the global banking crisis unfolded, reiterated it aims to resume payouts in the second half of 2009.
Barclays said it would move to a quarterly payment system, with first cash payment scheduled for the fourth quarter of 2009.
It warned the sums returned to shareholders would be "significantly lower" than the 50 percent of profits typically handed back in recent years.
Barclays shares pared losses to stand 0.34 percent higher at 218.75 pence by 1135 GMT, having earlier fallen as low as 212.5 pence.
"On current trading, to say Q1 was well-ahead on last year is a positive," Fox-Pitt, Kelton analyst Leigh Goodwin said.
The bank's shares crashed to a 22-year low of 47.3 pence in January, but have since soared as news of a 3 billion pound capital boost through the sale of its iShares unit, and improved first-quarter trading, has prompted a rethink among investors.
INVESTOR DISSENT
However, some shareholders are expected to vent their anger at management on Thursday for a controversial fundraising last October by voting against the board's re-election.
In the fundraising, Barclays raised 7 billion pounds from Middle Eastern investors on favourable terms, which were not initially offered to existing investors.
However, resentment over the move, which allowed Barclays to avoid accepting government funds instead, has been soothed by the rally in Barclays' share price.
All of the bank's board are standing for re-election at the shareholder meeting.
"I don't think existing shareholders were that keen on taking shares last autumn, whereas the Middle Eastern investors were," said small shareholder James Boston, who intends to back the board's re-election.
"I think the board has done very much better than the other banks," he said.
Barclays Chairman Marcus Agius on Thursday said the fundraising has strained relations with shareholders, and expressed "sincere regret" for losses incurred by investors through declines in the bank's share price.
U.S. and European banks have generally reported a decent first quarter as an improvement in capital markets has offset rising bad loans.
Credit Suisse on Thursday posted a $1.7 billion net profit for the quarter, easily beating expectations thanks to a strong performance at its investment banking and wealth management units.
Barclays has said 2009 will be a difficult year but reckons its acquisition of Lehman Brothers in the United States last year, avoiding UK government intrusion and its better quality loan book, will bear fruit when economies turn.
