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| Barclays shares drop 5% after profits disappoint | Barclays shares drop 5% after profits disappoint |
| (35 minutes later) | |
| Shares in Barclays fell by 5% after its third-quarter profits figures came in below analysts' expectations. | Shares in Barclays fell by 5% after its third-quarter profits figures came in below analysts' expectations. |
| Profits for the period were up by 31% to £1.1bn, giving the bank a profit for the nine months so far of £3.4bn. | Profits for the period were up by 31% to £1.1bn, giving the bank a profit for the nine months so far of £3.4bn. |
| But its investment banking profits were down from £1bn to £652m, in what the bank said had been a difficult quarter for its markets business. | But its investment banking profits were down from £1bn to £652m, in what the bank said had been a difficult quarter for its markets business. |
| Barclays boss Jes Staley is currently being investigated over claims he tried to uncover the name of a whistleblower. | Barclays boss Jes Staley is currently being investigated over claims he tried to uncover the name of a whistleblower. |
| The whistleblower wrote a letter that raised questions about the decision to employ one of Mr Staley's old colleagues from his JP Morgan days. | The whistleblower wrote a letter that raised questions about the decision to employ one of Mr Staley's old colleagues from his JP Morgan days. |
| Barclays has already reprimanded Mr Staley for his conduct, but the matter is still being investigated by financial regulators the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). | Barclays has already reprimanded Mr Staley for his conduct, but the matter is still being investigated by financial regulators the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). |
| Muted activity | Muted activity |
| Mr Staley is in charge of the UK's only remaining major international investment bank. | Mr Staley is in charge of the UK's only remaining major international investment bank. |
| Weak profits in investment banking are widespread, as activity in bond markets is muted against a background of abnormally low interest rates, which make it difficult for banks to slice off profits. | Weak profits in investment banking are widespread, as activity in bond markets is muted against a background of abnormally low interest rates, which make it difficult for banks to slice off profits. |
| Barclays, however, said profits growth had been driven by a £932m reduction in operating expenses and its performance had been encouraging. | Barclays, however, said profits growth had been driven by a £932m reduction in operating expenses and its performance had been encouraging. |
| Its UK banking division saw an improvement in profitability and what it said was a "good underlying return" from its consumer, cards and payments business. | Its UK banking division saw an improvement in profitability and what it said was a "good underlying return" from its consumer, cards and payments business. |
| Blight | Blight |
| Mr Staley said these results were important as they were the first for many years in which "we have not been in some state of restructuring". | Mr Staley said these results were important as they were the first for many years in which "we have not been in some state of restructuring". |
| They were also helped by an absence of further provision for payment protection insurance (PPI) mis-selling. | They were also helped by an absence of further provision for payment protection insurance (PPI) mis-selling. |
| In the first six months of the year, the bank set aside £700m. Its total provisions for PPI stand at £9.1bn. | In the first six months of the year, the bank set aside £700m. Its total provisions for PPI stand at £9.1bn. |
| That could spell the end of the PPI scandal that has blighted UK banks' reputation and results. | That could spell the end of the PPI scandal that has blighted UK banks' reputation and results. |
| The bank also confirmed it was setting up a separate UK banking division to keep its day-to-day banking operations apart from the riskier investment banking, as required by new rules brought in to stop a repeat of last decade's credit crisis. | The bank also confirmed it was setting up a separate UK banking division to keep its day-to-day banking operations apart from the riskier investment banking, as required by new rules brought in to stop a repeat of last decade's credit crisis. |
| Laith Khalaf, senior analyst at stockbrokers Hargreaves Lansdown, gave a broad welcome to the results, but highlighted the investigation into Jes Staley - and the long list of other inquiries - as worrying. | |
| "Litigation still remains a risk for Barclays, with more than 20 separate investigations ongoing, not least one relating to Jes Staley's attempt to uncover a whistleblower in his own ranks," he said. |