Barclays profits fall, hit by investment bank

LONDON (AP) -- Barclays PLC has posted a 5 percent fall in profits for the first three months of the year as earnings from its investment bank business slumped.

The British bank said Tuesday that its adjusted pre-tax profits fell to 1.69 billion pounds ($2.87 billion).

Barclays had warned last month that it would be hit by the performance of its investment bank division, which saw income from its fixed income, credit and commodities business fall by 41 percent.

Barclays Chairman David Walker has hinted at a shrinking of the investment banking arm, potentially cutting thousands of jobs.

However, the bank said its British retail and business banking arms performed well in the first quarter, with pre-tax profits up 20 percent to 360 million pounds.