Investing.com -- Barclays (LON:BARC) has reported a 12% decline in pre-tax profit in the first quarter as the lender grappled with weakness at its investment banking division, although the drop was smaller than anticipated.
The British lender posted profit before tax of 2.3 billion pounds in the three months ended on March 31, roughly 4% above consensus forecasts. Total revenue edged down 4% year-on-year to 7 billion pounds, but this was also ahead of estimates.
Investment banking income, however, fell by 7%, slightly shy of forecasts, due to slumping advisory fees and fixed income trading.
Even still, Barclays' annual guidance for return on tangible equity of greater than 10% was left unchanged.
It was the first set of results since Barclays unveiled a sweeping multi-year restructuring plan in a bid to a revive investor confidence following years of share price underperformance and executive level changes. In one key shake-up, Barclays increased its operating units to five from three, citing a need to enhance returns and management oversight.
In a statement on Thursday, Group Chief Executive C.S. Venkatakrishnan said the firm remains "focused on disciplined execution" of the overhaul.
"Overall a solid set of results, which should be well received," analysts at Citi said in a note to clients. Shares in Barclays were higher in mid-day U.K. trading on Thursday.