Five questions answered on Barclays’ first quarter profit fall

What’s responsible?

Today British bank Barclays announced that its adjusted first quarter profits have fallen. We answer five questions on the banks flagging profits.

By how much has Barclays’ adjusted first quarter profits dropped by?

They’ve fallen by 25 per cent to £1.8bn.

What’s responsible for this fall in profits?

It’s party to do with the bank restructuring itself into a "Go-To" bank, which Barclays’ chief executive Antony Jenkins has described as ‘not an easy path’ but ‘the right one’ for the bank.

A £514m bill to cover the bank’s “Project Transform” plan to axe 3,700 jobs has also hindered its profits

Are they expecting any other hits this year that could further affect its profits?

Later in the year it expects a further £500m charge as part of the “Project Transformation” which will see it cut back its investment banking arm and generally overhaul the bank's culture.

Despite its intentions to revamp this section of the business, the division saw an 11% rise in profits in this quarter to £1.3bn, accounting for three quarters of the group's overall profits.

Why is Barclays making these changes?

The third biggest British bank is trying to reform its culture after Jenkins predecessor, Bob Diamond, accumulated a £290m fine for rigging Libor rates.

What were the banks profits like at the beginning of the year?

For the first three months to March, Barclays said it had a good start to the year. It recorded pre-tax profits of £1.5bn, which compares to a £525m loss in the same quarter the year before.

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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Police shoot man in parliament

A man carrying what appeared to be a knife was shot by armed police after entering the parliamentary estate. 

From the window of the parliamentary Press Gallery, I have just seen police shoot a man who charged at officers while carrying what appeared to be a knife. A large crowd was seen fleeing from the man before he entered the parliamentary estate.

After several officers evaded him he was swiftly shot by armed police.

Ministers have been evacuated and journalists ordered to remain at their desks. 

More follows. Read Julia Rampen's news story here.

Armed police at the cordon outside Parliament on Wednesday afternoon. Photo: Getty

George Eaton is political editor of the New Statesman.