Barclays, opens new tab reported first-quarter profit in line ‌with expectations on Tuesday, as a 228-million-pound ($308 million) provision linked to collapsed lender MFS was offset by a steady performance at its investment bank thanks to robust trading.

The British bank posted profit before tax of 2.8 billion pounds ​for January-March, up from 2.7 billion.

Income at the investment bank rose 4% from a year earlier ⁠to 4 billion pounds, versus analysts’ forecast for 3.9 billion.

Investors had been braced for a charge ​after the February collapse of London-based MFS, a little-known lender focused on complex property-related loans, which raised questions over ​risk checks at lenders including Barclays.

The failure has also fuelled concerns about the health of wider lending markets, including the fast-growing but opaque private credit sector.

Barclays, like other European ‌banks, ⁠had seen its shares scale multi-year highs earlier in 2026 as strong interest income, low bad-loan levels and a supportive economic backdrop buoyed profitability.

The bank was also expected to benefit in the first quarter from higher trading activity at its investment bank, after major U.S. lenders reported a surge in trading income ​this month amid Middle ​East-linked market volatility.

Barclays said ⁠income at its global markets business rose 6%.

That was driven by an 8% year-on-year rise in dollar-denominated revenue at its fixed income, currencies and commodities ​unit, lagging an average 11% increase at Wall Street rivals, according to ​Citi analysts.

Equities ⁠trading revenue jumped 23%, compared with an average 26% rise at the top U.S. banks.

Fees from investment banking advisory work rose 17% from a year earlier, below the 27% average increase reported by the six ⁠largest U.S. ​banks.