Barclays third-quarter profit declines on settlement costs

29th Oct 2015 07:46

(ShareCast News) - Barclays posted a drop in third-quarter pre-tax profit as the cost of claims settlements weighed on results and revenues fell.Third-quarter adjusted pre-tax profit slid to £1.43bn from £1.59bn in the same period last year, missing the average forecast of £1.65bn from analysts polled by the company, as revenue declined to £6.11bn from £6.38 in 2014.Statutory pre-tax profit fell to £861m from £1.22bn in the third quarter of 2014.The company paid out £560m in compensation to customers who had been missold foreign exchange products and to settle claims over US mortgage-backed securities.On Wednesday, Barclays confirmed the appointment of former JPMorgan investment banking head Jes Staley as its new chief executive, replacing Anthony Jenkins.Chairman John McFarlane said: "Today's results show another quarter of progress in our core businesses alongside the early effects of some of the changes that we are making."As we align Barclays around our three priorities - focus on core (segments and markets), generating shareholder value, and instilling a high performance culture with strong ethical values - we now have a forward agenda that has been discussed and agreed with Mr. Staley. We will update the market on our plans for structural reform after we have agreed them with the regulator."