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Barclays wealth profit hit by £22m 'Transform' bill

Barclays wealth profit hit by £22m 'Transform' bill

Profits at Barclays wealth arm fell 15% in the first quarter as it continued to invest heavily on transforming its image.

The bank spent £22 million on project 'Transform' in the first three months of the year, driving profits down from £60 million in the first quarter of 2013 to £51 million. With these costs stripped out profit was 22% higher.  

Elsewhere total income decreased 4% to £451 million, which Barclays attributed to 'adverse foreign exchange movements'. Meanwhile client assets fell from £204.8 billion to £198.3 billion 'mainly due to reduction in institutional deposits'.

Investment bank slump

Overall Barclays pretax profit fell 5% to £1.69 billion on the back of 28% drop in investment banking revenue. Within this its Fixed Income, Currencies and Commodities (FICC) arm was hit hard hardest, suffering a 41% fall in income.   

Barclays chief executive Antony Jenkins (pictured) said strong performance in its retail and corporate banking franchises helped offset FICC weakness.

'A continued strong momentum across our retail, cards and corporate banking franchises, all of which generated higher returns year on year, offset by a significant decline in FICC income within the investment bank,' Jenkins told the stockmarket.

'UK Retail, Barclaycard and Corporate together drove approximately half of the group's income this quarter and we remain well positioned to benefit from further improvements in the economic environment.'

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