Barclays profits fall 7% as bank faces £900m PPI hit

Barclays said today its underlying profits for the first half of the year had fallen 7% after a drop in investment bank revenue, while it also reported another huge bill to compensate PPI customers.

The bank said adjusted profits in the six months to the end of June were £3.3bn, down from £3.6bn over the same period last year. Costs were lower but revenues also fell 7%, mainly because of an 18% percent drop in the investment bank. Bacrlays and its peers have all been hit by a decline in fixed income trading which is still feeding through to revenues. The adjusted profit figures did not include £900m that the bank said it had set aside for further Payment Protection Insurance (PPI) mis-selling claims still to be settled.