Firstquarter pretax profit up 16
Shares rise 4 in early trading
Income from investment banking fees dips by 7

LONDON, April 27 Reuters Barclays reported better than expected firstquarter profit of 2.6 billion pounds 3.24 billion on Thursday after strong performance at its credit card business offset pressure on other profit engines, including investment banking.

The British bank39;s 16 profit jump from a year earlier beat analyst forecasts of 2.2 billion pounds in a robust set of results that underlined its increasing ties to the United States, where it has grown its investment and consumer banking businesses. Its strategy is in contrast to UK peers such as HSBC, which have pared back in the world39;s biggest economy.

Citigroup and American Express have also booked higher revenue from credit card spending in recent weeks but had to set aside larger sums to cover potential defaults.

Analysts at JPMorgan said Barclays39; figures could lead to upgrades in forecasts for the bank39;s fullyear profit. Barclays shares rose 4 in early trading, outperforming a 0.8 rise in the STOXX European banks index.

Income at Barclays39; consumer, cards and payments division rose 47 to 1.3 billion pounds thanks to rising credit card balances driven partly by its acquisition of a portfolio from retailer Gap last year.

But there were signs higher credit card spending could have a sting in the tail. The bank39;s bad loans provision for the quarter soared to 524 million pounds from 141…