Barclays has its share of trouble Bank value slumps as investment arm hit

NEARLY £2.5billion was wiped off Barclays’ stock market value yesterday after its wheeler-dealer investment arm suffered a slump in profits.

The bank’s shares tumbled 7%, the biggest fall since the immediate aftermath of last year’s Brexit vote.

Profits within the investment division crashed 33% to £593million in the three months to September 30.

Barclays is one of the few big Uk-based banks still with a major investment arm.

Bank chief executive Jes Staley has faced calls to offload it and focus on the firm’s high street bank and Barclaycard arms instead.

Other investment banks are finding it harder to make the bumper profits they did before the financial crisis, in part because of record low interest rates.

Staley admitted the past few months had “clearly been difficult” for the division.

Profits in Barclays’ UK arm rose 12% to £1.3billion in the first nine months of 2017.

The results come as City watchdog the Financial Conduct Authority investigates Staley’s attempt to unmask a whistle-blower.

The person wrote a letter questioning the hiring of one of Staley’s old colleagues. Staley said the matter was “ongoing”.

Laith Khalaf, senior analyst at broker Hargreaves Lansdown, said: “After making some good progress, Barclays appears to be stalling somewhat and it’s now touch and go whether the bank will break even in 2017.”

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