Barclays takes to Jenkins' medicine

Group finance director Tushar Morzaria did little to cut through the puzzlement on the media briefing call, describing the future course for reforming the investment bank as a "continuation of [the current] strategy, and refining it". No doubt the market will hear more on these refinements from executive chairman John McFarlane, who in his review of the first half said the company would focus on UK personal and commercial banking, investment banking in Europe and the US, its cards business, and Africa.

The investment bank grew its pre-tax profits by more than a third to £1.4bn, with Greece-spooked markets providing work for its traders. Barclaycard grew its customer base across all geographies, with substantial growth in the US helping pre-tax profits rise 4 per cent to £795m. The ongoing turnaround in Barclays' South African retail business and a strong performance in wealth management lifted pre-tax profits in Africa by 12 per cent to £540m.

A stronger UK economy helped its personal and corporate banking business: impairment charges of £178m compared with £230m in the comparable period last year, with a lower rate of default among large corporate clients. The division's pre-tax profit was up 4 per cent at £1.5bn.

The company's costs accounted for 64 per cent of its income, down from 67 per cent the year before. But Barclays wants to reduce that figure to the "mid-50s" to boost earnings over the medium term. It is also progressing well with a plan to reduce its non-core assets, which now stand at £20bn, and hopes to reintegrate this unit into the bank from 2017.

Investec expects pre-tax profits of £5bn for the full year, from £2.3bn in 2014.