Barclays said third quarter income in its investment bank rose 6% year on year. Fixed income, currencies and commodities (FICC) and equities revenue both rose 3%, while investment banking income from advising on deals rose 13% on increased fees from advising on corporate fundraising.

Barclays (BARC.L) reported a forecast-beating 18 per cent rise in third-quarter profit on Thursday, as slower than expected interest rate cuts and upbeat investment banking prospects helped it raise its income outlook for the year.

British bank Barclays reported a net profit of £1.6 billion ($2 billion) for the third quarter on Thursday, exceeding analyst expectations.

Barclays raised its forecast for net interest income forecast for the year after third-quarter results beat eastmates, boosted by a rebound in investment banking activity.

Barclays' reported a forecast-beating 18% rise in third-quarter profit on Thursday, and said slower than expected interest rate cuts and improving investment banking prospects would support revenues as it raised its income outlook for the year.

British bank Barclays on Thursday said its net profit jumped almost a quarter in the third quarter, helped by improved performance at its core UK and investment divisions alongside cost-cutting.

British bank Barclays on Thursday reported £1.6 billion ($2 billion) net profit attributable to shareholders for the third quarter, beating expectations.

The banking giant revealed its pre-tax profits increased by 18 per cent year-on-year to £2.2billion in the three months ending September, far surpassing analyst forecasts of £2billion.