Barclays reports third quarter earnings hurt by higher costs at head office, restructuring

LONDON – Barclays PLC says adjusted pre-tax profit fell 10 per cent in the third quarter, as costs of running the British bank’s credit card unit and head office increased.

Earnings dropped to 1.43 billion pounds ($2.2 billion) from 1.59 billion pounds in the same period a year earlier. Net income increased to 417 million pounds from 379 million pounds.

The company also said Thursday that structural changes will be more expensive than previously expected, with implementation costs reaching 1 billion pounds over the life of the program.

The results caught some analysts off guard.

Shore Capital analyst Gary Greenwood said: “We are somewhat un-nerved by the extent of extra restructuring charges and will need to take these into consideration before reaching a firm conclusion on valuation.”