Barclays beats estimates as profits up 5%

Barclays reported Q3 profits rose 5%, beating estimates, despite the sovereign debt crisis hurting investment banking revenues.

Pretax profit, before debt valuation adjustments, in the three months to 30 September rose to £1.3bn from £1.27bn a year earlier, aided by cost cutting measures. However, revenue at the Barclays Capital investment banking unit fell 15% to £2.25bn over the period. Overall, quarterly revenues were 3% lower at £7bn in the face of "significant economic and market headwinds". Barclays said in June it would seek to increase revenue by as much as £6.4bn by 2013, with more than a third coming from its investment banking unit. However, this target was challenged in the third quarter as Europe...