Barclays’ profits rise by 5pc

Profits doubled at Barclays’ UK retail banking business whilst falling at its main investment banking unit. Barclays’ UK retail banking operations made a pre-tax profit of £494m, up from £230m a year earlier, while pre-tax profits at Barclays Capital fell 49% to £388m.

Bob Diamond, chief executive of Barclays, said: “Our focus on cost reduction continues to deliver results and we are confident that we will exceed the £1bn savings target we set earlier this year.

“These results demonstrate the continued progress towards our 2013 goals through building momentum across retail and corporate banking businesses and strong relative performance by Barclays Capital in difficult market conditions.”