Investment banking drags down Barclays Q4 profit

Barclays reported a pretax profit of £5.9 billion for 2011, down 3% on the year and below analysts’ forecast of 6.1 billion.

Barclays said its key investment bank arm ended last year with its worst quarter for three years as the euro zone debt crisis hit bond trading activity, dragging the British bank’s annual profit down on the year before. 

Barclays, Britain’s fourth-biggest bank by market value, on Friday reported a pretax profit of £5.9 billion ($9.4 billion) for 2011, down 3% on the year and below analysts’ forecast of 6.1 billion, according to a company poll.
Income at investment bank arm Barclays Capital fell to £1.8 billion in the fourth quarter, down 19% on the previous three months.