Barclays’ profits rise but share price falls

Shares in Barclays tumbled after poor trading at its investment banking arm overshadowed a rise in third-quarter profit.

The lender said pre-tax profit rose from £837 million to £1.1 billion, with boss Jes Staley describing the period as “particularly significant”.

However, income at the bank’s markets division fell 14% to £3.5bn because of “lower market volatility”.

Macro income, which comprises fixed income, currencies and commodities, fell 27% to £1.3bn.

Mr Staley said: “A lack of volume and volatility in fixed income, currencies and commodities hit markets revenues hard across the industry and we were no exception to this trend.”

Barclays’ third-quarter results were buoyed by the absence of a payment protection insurance (PPI) provision.

The first half of the year saw Barclays put £700m aside to cover costs relating to the scandal, which has engulfed the banking sector. The group’s total PPI bill stands at £9.1bn.

Net operating income came in at £4.46bn in the quarter, versus £4.65bn in the same period last year.

Mr Staley said there was an improvement in profitability in Barclays UK, and a good return from its cards business.

Shares closed down 14.60p at 182.40 yesterday.

Barclays chief executive Jes Staley.