Barclays reveals Q3 profit slump

9 November 2010

British banking giant Barclays has revealed that its pre-tax third-quarter profit fell by 76 per cent, following a revaluation of the company's debt and a drop in income across the board.

The firm's overall profit for the last three months totalled £327 million ($527.5 million) - down from £1.36 billion in the previous quarter - with a slump in income from £8.19 billion to £7.41 billion.

"Our income and profit performance was resilient for the first nine months of 2010 despite a subdued economic environment," said chief executive John Varley. "Our capital, leverage and liquidity ratios remain strong."

He insisted that Barclays is "well-equipped" to cope with the implications of incoming regulatory changes and pointed out that the bank is continuing to support private sector businesses through lending.

German rival Commerzbank also posted below-par profits yesterday (November 8th 2010), but stressed that it expects to see a stronger performance over the coming months.

By Claire Archer

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