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Shares of Barclays plc (LSE:BARC) fell at the opening of trading in London on Tuesday, after the UK bank revealed its adjusted profit before tax for the first quarter of 2014 were hit by lower revenue from its investment arm.
In a statement, Barclays said adjusted profit before tax fell five percent to £1.693 billion. Adjusted profit before tax excludes impact of own credit, the disposal of investment in Blackrock, Inc., provisions for Payment Protection Insurance redress payments and claims management cost, as well as redress in the interest rate hedging products, and goodwill impairment.
On a statutory basis, pre-tax profit were up 18 percent to £1.812 billion, which includes own credit gain of £113 million. The figures show a turn from the £251 million loss the bank posted during the first quarter of 2013.
Barclays blamed “challenging trading conditions”, changes in the business, and “a relatively strong performance” during the first quarter of 2013 affected performance of the bank’s investment business during the January to March 2014 period. Income from investment banking plunged 28 percent to £2.490 billion, resulting from the 41 percent decrease in the bank’s fixed income, currencies and commodities income to £1.23 billion.
Group Chief Executive, Antony Jenkins, is scheduled to provide a market update of the bank’s strategy on 8 May 2014.
“This plan will address issues underlying the performance challenges we have recently experienced, including positioning the Investment Bank for the new operating and regulatory environment,” Jenkins said in a statement.
At 8:47 GMT, Barclays shares were 3.7 percent down, to 249 pence at a volume of 14 million shares, valuing the company at £40.831 billion.
