Barclays profits down as investment bank income sags
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LONDON
LONDON (Reuters) - Barclays Plc (BARC.L) said its underlying profits fell 8 percent in the second quarter of this year after a drop in investment bank revenue as the British bank attempts to streamline the business and reform culture. Barclays said adjusted profits in the three months to the end of June were 1.7 billion pounds, down from 1.8 billion a year ago.That took profits in the first half of the year to 3.3 billion pounds, down 7 percent on the year but above the average forecast of 3 billion pounds from analysts polled by the company as operating costs fell.Revenues in the second quarter fell 9 percent, largely due to a 16 percent drop in the investment bank, where banks have been hit by a decline in fixed income trading and tougher regulations.Chief Executive Antony Jenkins has pledged to make Barclays leaner and more profitable and stamp out wrongdoing, but his turnaround efforts are being dogged by problems from the past and weak investment bank revenues. "We are delivering the strategy that we set. We're ahead of all the targets that we set and as that establishes itself over the next few quarters, the market will reflect that in the share price," Jenkins said.Barclays shares are down 20 percent this year, the third worst performer among Europe's top 47 banks .SX7P, who are on average up 1 percent. The bank's shares trade at 0.6 times book value, well below the average of 1 times for its European peers, according to Reuters data. Barclays set aside another 900 million pounds to compensate customers for mis-sold insurance products. (Reporting by Steve Slater; Editing by Matt Schuffham)