Barclays announces pre-tax profits fall by 21 per cent due to restructuring costs

CEO Jes Staley says he sees no reason to change strategy in light of Brexit

Barclays' profit fall is due to the cost of restructuring its non-core assets (Getty)

Barclays has reported a 21 per cent fall in its pre-tax profits for the first half of 2016.

Statutory group profit before tax was £2.06bn, down 21 per cent on the same point last year.

The bank stressed the fall was due to the cost of disposing of its non-core businesses as part of its restructuring to focus on UK and US operations.

It said its core business made a pre-tax profit of £3.97bn, which is up 19 per cent on last year, but its non-core business had made a £1.9bn loss.

Jes Staley, chief executive of Barclays, said he did not believe there was any reason to change strategy despite the Britain's vote to leave the EU.

He said in a statement: “Taken together, the picture in the second quarter is one of strong and accelerating progress against our strategy.

“We remain confident that it is the right plan for Barclays, and see no reason to adjust it, or the pace of delivery, in light of the vote by the UK last month to exit the EU.

“We are very much open for business, and fully committed to supporting our customers and clients, and the real economy, through this period of uncertainty.”

Shares rallied after the results announcement as investors greeted profits that beat expectations despite the plunge.

“These are reassuringly good numbers,” Brian Cullen, investment manager at SW Mitchell Capital, which owns Barclays shares, told Reuters.

“We like the positive tone and the fact that they have resisted temptation to blame Brexit for changes in guidance.”

Staley has resisted the temptation to blame Brexit for any decisions since the vote last month.

While other banks, such as HSBC and Morgan Staley, have been reportedly considering moving jobs overseas, Barclays has said it has no plans to move jobs out of the UK.

“We are a British bank, our history is here in the UK so first and foremost we are staying anchored in London and anchored in Great Britain,” Mr Staley said.

UK banks fear they may lose passporting, or the ability to do business with the whole of the EU.

Banks and other companies have been discussing whether they will need to move European headquarters to the EU to keep the same privileges.