Barclays in profit slump

Barclays today reported a 9 per cent drop in quarterly profits after it saw a sharp fall in income from its investment banking arm.

Pre-tax profits fell to 1.66 billion in the first quarter of 2011 after revenues at Barclays Capital dropped 15 per cent to 3.3 billion as the group dealt with "a challenging external environment".

The update came as Barclays prepared to face a potential shareholder rebellion at its annual meeting over plans to award chief executive Bob Diamond a potential pay package that could be worth up to 27 million.