Barclays profits drop as cost cutting likely to accelerate

Barclays Canary Wharf

Barclays said third-quarter profit fell 10%, missing estimates as Chairman John McFarlane seeks to accelerate cost cuts.

Bloomberg News reports that pretax profit, including restructuring costs, fell to $1.53bn from $2.43bn in the year-earlier period, the bank said in a statement Thursday. That missed the $2.52bn average estimate of 14 analysts surveyed by Barclays.

At the investment bank, profit climbed to around $484m from $433.5m a year earlier. 

Barclays warned the unit, run by Tom King, could book a weaker performance in this quarter. Incoming CEO Jes Staley pledged a day earlier to continue shrinking the division to a 'less capital-intensive model' and improving relations with regulators.

'The investment bank has seen weaker market conditions in October in comparison to October 2014', Barclays said as it posted third-quarter results. 'However, it is too early to make any specific comment on fourth-quarter performance'.

To access the complete Bloomberg News article hit the link below:

Barclays Third-Quarter Drops 10% as McFarlane Squeezes Out Costs

Barclays Investment Bank Profit Climbs 12% on Equities Income


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