(RTTNews) - British bank Barclays Plc (BCS: News , BARC.L), in an interim management statement, said Tuesday that profit for the nine-month period declined sharply due to significantly higher impairment charges and other credit provisions. The company also noted that October trading was generally consistent with the overall trend for the first nine months of the year.

For the nine-month period, the company's profit before tax declined 19% to GBP 4.54 billion from GBP 5.59 billion in the previous year.

Profit for the period attributable to equity holders of the parent decreased to GBP 2.73 billion or 23.9 pence per share from GBP 3.82 billion or 54.7 pence per share in the same period last year.

Excluding a charge on own credit of GBP 1.3 billion, gains on acquisitions and disposals of GBP 178 million, and gains on debt buy-backs of GBP 1.25 billion, profit before tax increased 116% to GBP 4.41 billion from GBP 2.05 billion in the prior year. The prior-year number excludes a gain on own credit of GBP 1.95 billion, gains on acquisitions and disposals of GBP 1.59 billion, and gains on debt buy-backs of GBP 9 million.
Segment wise, Global Retail and Commercial Banking profit before tax for the nine-month period declined 30% to GBP 2.18 billion from GBP 3.11 billion in the same period a year ago. Global Retail and Commercial Banking income grew by 11%, mainly due to the international businesses following rapid expansion in prior years.

Investment Banking and Investment Management profit before tax dropped 38% to GBP 1.97 billion from GBP 3.15 billion in the comparable period last year. Income at Investment Banking and Investment Management for the nine months increased 32%, largely driven by the performance of Barclays Capital.

Head Office Functions and Other Operations pre-tax profit was GBP 395 million, compared to a pre-tax loss of GBP 664 million in the preceding year, driven by gains on debt extinguishment of GBP 1.16 billion, partially offset by increased costs in central funding activity.

According to the company, the current and prior-year periods include the results of Barclays Global Investors, which is being sold to BlackRock with completion anticipated during December 2009. Profit before tax attributable to the relevant discontinued operations for the nine months ended September 30 was GBP 435 million, compared to GBP 673 million in the year 2008 and the equivalent profit after tax was GBP 252 million, down from GBP 471 million in the prior year.

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