LONDON (ShareCast) - British bank Barclays blamed a weak performance in its investment banking arm for a five per cent fall in quarterly adjusted pre-tax profit to 1.7bn pounds, although it said its retail and credit card operations did well.

Barclays said bond trading, currency and commodity (FICC) income in the investment bank declined significantly in the three months to March 31st.

It attributed the fall to tough trading resulting in subdued client activity across rates and credit, changes in business mix in light of an ongoing strategic review of the investment bank, and a relatively strong performance in the same quarter last year.

But customer net interest income for RBB, Barclaycard, corporate banking and wealth and investment management increased 4% to £2.6bn reflecting business growth and stable margins.

Barclays has embarked on a review of its investment bank following controversies such as alleged Libor inter-bank rate rigging.

But it faced uproar at its annual meeting last month for increasing bonuses by £200m to £2.4bn last year despite leaving its dividend unchanged and raising £5.8bn in a rights issue.

The bank plans to update the market on its strategy review on Thursday.

Credit impairment charges improved 22% to £548m, mainly reflecting lower charges in African retail banking and corporate banking. As a result the loan loss rate improved to 45 basis points from 56 a year ago.

Chief Executive Antony Jenkins said: "UK retail, Barclaycard and corporate together drove approximately half the group's income this quarter and we remain well positioned to benefit from further improvements in the economic environment."

PW

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