LONDON - BRITISH bank Barclays on Thursday said net profit rose 12 per cent in the first three months this year to 826 million pounds (S$1.84 billion) compared to the first quarter of 2008.

Sales surged 42 per cent to 8.15 billion pounds and Barclays added in a statement that it would resume shareholder dividend payments in the fourth quarter of 2009.

Barclays chief executive John Varley said the bank 'generated strong income growth,' driven by its purchase of the investment banking and trading units belonging to Lehman Brothers.

US banking giant Lehman went bankrupt last year, plunging the global financial system into turmoil.

Barclays purchase of Lehman businesses, 'together with good cost control,' enabled the British bank to 'shield the anticipated increase in impairment and absorb further credit market writedowns,' Varley said on Thursday. -- AFP