Barclays sees fall at investment bank unit

| November 9, 2010 | 0 Comments

Banking giant Barclays has today announced it made a pre-tax profit of £4.3 billion in the first nine months of the year, despite a slump in income at its investment banking division.

The bank, which is one of the few not to have received any financial help from the Government, said activity at its investment bank division Barclays Capital had been weak over the last few months.

Meanwhile, total profits for the third quarter totalled £1.27 billion - a rise of 8.5% compared with the previous quarter, but a fall of 28% against a year earlier.

Group chief executive, John Varley, comments: “Our income and profit performance was resilient for the first nine months of 2010, despite a subdued economic environment and moderate volumes.”

Mr Varley will be departing next year and will be replaced by Bob Diamond, currently president of Barclays Plc.

Last week, the Royal Bank of Scotland (RBS), which is 84% owned by the taxpayer, announced it plummeted back into the red with a £1.4 billion ($2.3 billion) pre-tax loss during the third quarter.

This compares with a loss of £1.8 billion in the same period a year earlier but also compares unfavourably with a profit of £257 million in the second quarter.

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