The Daily Telegraph reports that Barclays Bank has warned that this year's profits are likely to fall, mainly as it will need to make increase provision for bad debts at its investment banking arm, Barclays Capital.
Barclays Chief Executive, Matt Barrett, said this week that 'although the trading environment remains difficult, our performance in the first nine months remained resilient'. He described the environment as 'particularly tough' for Barclays Capital, Barclays Global Investors and Barclays Private Clients, but claimed that the units had 'delivered well' compared to other major rivals.
The Telegraph quotes one unnamed analyst, who said: 'There is not a lot of growth in Barclays. The main engine in the first half was Barclays Capital, but the fixed income market has stalled and its performance in the third quarter appears to have wiped out the £100m expectional revenues in the first six months'.