Barclays reported a worse than expected profit before tax for the third quarter of 1.1 billion pounds, as a weak trading performance in its investment bank dragged down group results. Ciara Lee reports.
Barclays's CEO has been a steadfast champion of investment banking, often facing resistance from analysts and investors. In recent years it's failed to be as profitable as its retail and credit card units. Now Jes Staley could face further pressure after the division dragged on third quarter performance. Barclays profit before tax for the third quarter was 1.1 billion pounds, missing a 1.43 billion pound estimate. But some say Staley's approach may still be the right one. (SOUNDBITE) (English) WORLD FIRST, CHIEF ECONOMIST, JEREMY COOK, SAYING: "Given the political issues certainly here in the UK, and the ring fencing of the UK retail bank that's going to have to be put in place, the main cash-cow for Barclays is still going to be the investment banking." Barclays responded to the results by setting a bold new timetable for achieving profitability targets The bank aims to achieve an overall return on equity above 9 percent in 2019, and above 10 percent by 2020. But shares fell on the results by as much as sevent percent. Making it the biggest faller in the FTSE index. It was the biggest drop in the lender's share price since its more than 30 percent plunge in the days after the 2016 Brexit vote.