LONDON, Oct 24 ― British bank Barclays today unveiled a 16-per cent drop in net profit for the third quarter on souring loans and rising costs, and flagged more cutbacks ahead.

Profit after tax slid to £1.3 billion (RM7.6 billion) in the June-September period, down from £1.5 billion in the third quarter last year, Barclays said in a statement.

Pretax profit dipped four percent to £1.9 billion, but revenues climbed five per cent to £6.3 billion on higher interest rates.

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However, credit impairment charges set aside for expected bad loans reached £433 million, hit partly by rising rates and weaker house prices. That compared with £381 million a year earlier.

Income from corporate and investment banking fell six percent as financial markets volatility led to lower customer activity.

Barclays chief executive CS Venkatakrishnan said in a statement that the lender was managing credit well and remained “disciplined” on costs.

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“We see further opportunities to enhance returns for shareholders through cost efficiencies and disciplined capital allocation across the group,” he added. ― AFP