Operating income grew strongly in the first nine months of this year compared to 2003, and bad debt provisions are lower, a bank trading statement said.

Barclays Chief Executive Matt Barrett said: "Current trends suggest full-year profit before tax will be somewhat better than the market consensus."

Shares in Barclays, third largest UK bank, have jumped by a third this year.

Strong performance

Its shares have surged since August when Barclays announced a 12% rise in first-half profit.

At the time Barclays said the global business climate had improved following the war in Iraq and increased confidence that the US would avoid a "double dip" recession.

The robust UK economy, and high consumer confidence thanks to low levels of interest rates and unemployment, had also helped.

Now it says business banking performed strongly in the third quarter as income increased and costs were squeezed.

It said net interest income grew moderately as wholesale margins were squeezed, while dealing profits and fees and commissions grew strongly.

Healthy six months

Mr Barrett said: "Barclays is well positioned for the remainder of the year."

Barclays will announce full-year results on 12 February.

Pre-tax profits were �1.96bn ($3.17bn) for the six months to 30 June, compared with a �1.755bn profit at the same time last year.