Shares in the bank have fallen slightly on the news to 259p, 0.8% down on the opening price.
UK investment managers which have major holdings in Barclays include Legal & General Investment Management which has 3% of the company, BlackRock with 2.77% and Standard Life Investments which holds 1.83%.
Total income in the bank’s wealth managment division was down to £258m from £264m the previous quarter.
Group statutory profit before tax fell 26% to £1.337bn, largely as a result of the fine provisions. Its tier one equity ratio increase 0.3% to 10.6% over the quarter however.
“The [forex fine] provisions overshadowed what Barclays said had otherwise been its best quarter in years, once one-off charges are stripped out,” said Graham Spooner, investment research analyst at The Share Centre. “New chairman, John McFarlane, recently wrote to shareholders to say that whilst the issues from the past “unfortunately still haunt us,” the bank has a solid foundation.”
“Investors should note that there appears to be light at the end of the tunnel,” Spooner continued. “The bank has shown signs of improvement as a result of its ongoing restructuring. Barclays has successfully cut its costs by 7% and is continuing to work toward its goal of shedding staff, shrinking its investment bank and improving the group’s capital strength.
“The bank’s new strategy has forecast that its dependence on investment banking will be significantly lower by 2016, and investors should watch to make sure this remains on track,” Spooner added. “Barclays also expects to increase the dividend pay-out ratio to 40%, which may please investors.”
