Restructuring costs knock Barclays’ profits

Barclays saw its first-quarter profits fall by a quarter because of costs related to a restructuring plan put in place by chief executive Antony Jenkins.

The bank, which is cutting 3,700 jobs and scaling back its investment banking arm following a series of scandals, said “Project Transform” cost it £514 million during the first three months of the year.

As a result, adjusted pre-tax profits fell to £1.8 billion, down from £2.4bn a year earlier and just below analysts’ forecasts of £1.85bn.

Jenkins is trying to repair Barclays’ reputation following last year’s £290m fine for its part in the Libor-rigging scandal, which led to the departure of his predecessor Bob Diamond.

“In our goal to become the ‘go-to’ bank we have not chosen an easy path for Barclays, but we have chosen the right one,” Jenkins said today.

He added that the group expects to take a further £500m in restructuring hit this year.