Barclays investment banking profits jump, wields axe in Europe

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Barclays posted a 35% jump in second-quarter profit at its investment bank as litigation and restructuring expenses fell.

Bloomberg News reports that pretax profit at the unit rose to $1.2bn from $847.6m a year ago, the bank said in a statement Wednesday. The investment’s bank’s operating expenses for the quarter fell 14% to $2.05bn.

At the investment bank, run by Tom King, Chairman John McFarlane plans to focus on the debt and equity capital markets businesses and the advisory arm, two people familiar with the plan said in July. He will also likely cut the less profitable and more capital-intensive fixed income, commodities and currencies trading businesses, they said. McFarlane called European and U.S. investment banking a 'key franchise'.

In the meantime, Bloomberg also reports that Barclays is scaling back its European asset-backed securities business in London.

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