Barclays sees investment bank income drop 28pc
Barclays has reported a rise in statutory profit before tax of 18 per cent to £1.8bn for the first quarter of 2014.
However, adjusted profit before tax took a hit and was down five per cent to £1.7bn.
Investment bank income dropped 28 per cent to £2.5bn, with adjusted income falling by 14 per cent to £6.6bn. Barclays said the decline was due a sharp fall of 41 per cent in fixed income trading (FICC).
Barclays reported a net profit of £965m beating analysts' estimates of £934m.
Anthony Jenkins, group chief executive, commented:
A continued strong momentum across our retail, cards and corporate banking franchises, all of which generated higher returns year-on-year, offset by a significant decline in FICC income within the investment bank, resulting in group adjusted profit before tax decreasing by five per cent.
Barclays managed to achieve its lowest operating expenses, excluding cost to achieve transform spend, since 2009. On Thursday, Jenkins will outline a series of reforms that the bank hopes will deliver "improved and sustainable returns and growth for our shareholders."
The review may include the creation of an internal "bad bank," according to the Financial Times. In April, Barclays shareholders approved an increase in the bank's bonus pool of over 10 per cent to £2.38bn, with 24 per cent of shareholders voting to oppose the move.
No additional funds were set aside to compensate customers who were mis-sold payment protection insurance (PPI). The bank said that complaint volumes has declined and the amount available for compensation stood at £689m.