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 reported £1.6 billion ($2 billion) net profit attributable to shareholders for the third quarter, beating expectations.The result compared with the £1.17 billion net profit forecast in an LSEG poll of analysts,

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.