LONDON, Oct 24 ― British bank Barclays today unveiled a 16-per cent drop in net profit for the third quarter on souring loans and rising costs, and flagged more cutbacks ahead.

Profit after tax slid to £1.3 billion (RM7.6 billion) in the June-September period, down from £1.5 billion in the third quarter last year, Barclays said in a statement.

Pretax profit dipped four percent to £1.9 billion, but revenues climbed five per cent to £6.3 billion on higher interest rates.

However, credit impairment charges set aside for expected bad loans reached £433 million, hit partly by rising rates and weaker house prices. That compared with £381 million a year earlier.

Income from corporate and investment banking fell six percent as financial markets volatility led to lower customer activity.

Barclays chief executive CS Venkatakrishnan said in a statement that the lender was managing credit well and remained "disciplined” on costs.

"We see further opportunities to enhance returns for shareholders through cost efficiencies and disciplined capital allocation across the group,” he added. ― AFP