Barclays to report fall in profits to £1.8billion

INVESTORS are braced for Barclays to report a 4pc dip in profit next week, as rivals Lloyds and RBS also issue their third-quarter updates.

Barclays is also expected to update on news of a new chief executive. Former investment banker Jes Staley ( picturedbelow) is favourite.

Analysts at UBS expect Barclays (up 0.6p to 251.25p) to post thirdquarter pre-tax profits on Thursday down 4pc to £1.8bn compared with a year ago, ‘largely due to weaker investment banking revenues’.

However, the appointment of Staley, a former JP Morgan banker, is seen as a signal that the group wants to return to its former investment banking glory.

Confirmation Staley has got the job will end a three-month search to replace previous boss Antony Jenkins, who was ousted in July for lacklustre growth.

Separately Barclays and Credit Suisse are expected to be ready to pay up to £100m between them to settle several investigations relating to ‘dark pools’ trading – an area of trading shares that is separate from regulated markets.

On Wednesday, Lloyds Banking Group is likely to post a rise in quarterly profits.

Analysts at Investec forecast that underlying third quarter pre-tax profits will have risen by 4.5pc to £2.3m compared to a year ago, as it records a reduction in the payouts related to payment protection insurance (PPI) and other charges.

Analysts estimate RBS will post an adjusted third quarter operating profit of £988m.

However, the focus is still on its £2.1bn share sale announced by Chancellor George Osborne in the summer to reduce its 78pc stake. The Government’s share sale reduced its ownership to around 72.9pc.

By the end of the this Parliament, ministers expect to have sold threequarters of its holding in the firm.