(by M.Riley) 

U.K. Barclays bank said today pre-tax profits rose 23% to 2.41 billion pounds, with provisions down 10% to 589 million pounds and dividend up 17% to 8.25p, according to CBSMarketWatch. Analysts had been expecting pre-tax profits between 2.02 billion and 2.27 billion pounds. Operating expenses rose 15% to 3.91 billion pounds -- slightly outpacing a 14% rise in operating income -- on increased variable performance-based compensation costs and higher levels of investment spend.

Also Barclays CEO Matt Barrett declined to comment on a conference call on whether it was considering a bid for U.K. bank Abbey National or on whether a U.S. bank may bid for it. He agreed that European banking consolidation was bound to take place. "The issue is always that it is never easy and there are always a lot of difficulties and impediments to doing this but in the end economics rule the world and consolidation will take place," he said.