As sector pressures cast a cloud over Barclays investors advised to remain cautious

As Barclays reports Q3 results Graham Spooner, investment research analyst at The Share Centre, explains what it means for investors.

“Barclays reported a mixed bag of results this morning. Profits came in ahead of expectations however poor performance from its investment banking division continued, with revenues falling by 10%. The bank also announced it has put aside £500m for potential fines regarding the foreign exchange investigation.

“Investors will be pleased to hear management remains on track with its restructuring path as it moves away from dependence on investment banking and continues to cut costs. The promise of increased dividends in the future is something for long suffering investors to focus on; however the bank has reported the dividend this quarter will be kept at 3p.

“As the sector is still under a cloud and the shares have underperformed this year we continue to recommend no more than a ‘hold’ on Barclays for the time being.”