Barclays reported stronger-than-anticipated earnings on Wednesday, despite difficult market conditions and lingering concerns over Brexit.

The U.K.-based bank posted £1 billion ($1.29 billion) in net income for the three-month period ending Sept 30. Analysts at data firm Refinitiv had been expecting third-quarter net income to come in at around £723 million.

Here are the key takeaways:

Third-quarter net income: £1 billion vs. £723 million expected by analysts at data firm Refinitiv.

In an attempt to reduce annual funding costs, Barclays said it will redeem $2.65 billion worth of preference shares.

The bank reported its core capital ratio stood at 13.2 percent at the end of the third quarter.

"In spite of macro-economic uncertainty, and particularly concerns over Brexit which weigh heavily on market sentiment, 2018 is proving to be a year of delivery on our strategy at Barclays," Chief Executive Jes Staley said in a statement Wednesday.

"We remain focused on generating improved returns, and on distributing a greater proportion of excess capital to shareholders over time," Staley said.

Barclays pre-tax profit for the quarter came to £1.46 billion compared to £1.11 billion for the same period a year earlier.

As of Sept 30., the British bank's common equity Tier 1 capital — a key measure of balance sheet strength — came in at 13.2 percent. This was in line with expectations, the bank said, and supported its previously stated plan for paying a dividend of 6.5 pence a share in 2018.

Barclays' Staley also said Wednesday that the transatlantic consumer and wholsesale lender would reduce its annual funding costs by £165 million a year. He explained the bank plans to do so by redeeming $2.65 billion worth of preference shares.