Investment arm performance overshadows Barclays profits

Shares in Barclays fell 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 per cent to £3.5bn because of “lower market volatility”. Macro income, which comprises fixed income, currencies and commodities, fell 27 per cent to £1.3bn.

Staley said: “The third quarter was clearly a difficult one for our markets business within Barclays International.

“A lack of volume and volatility in fixed income, cur- rencies and commodities hit markets revenues hard across the industry, and we were no exception to this trend.”

In better news, Barclays’ third-quarter results were buoyed by the absence of a paymentprotectioninsurance (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.

Staley added: “The third quarter of 2017 was particularly significant for Barclays as it was the first for many years in which we have not been in some state of restructuring.” 0 Jes Staley – difficult quarter for bank’s markets business