The bank also said it aimed to cut at least 1,400 more jobs in 2011, having cut 1,400 posts already this year. The fall in half-year profits was partly caused by a £1bn provision for settling claims of mis-selling of Payment Protection Insurance (PPI).

Most of Barclays’ profits come from its investment banking division, Barclays Capital, which includes parts of the former US bank Lehman Brothers. But adjusted profits at this division fell 9% to £2.3bn due to lower returns from investments in bonds and commodities.

Job losses

The bank said it was looking to cut costs to boost profits in future. Chief executive Bob Diamond said 1,400 jobs had been cut during the first six months of the year across its operations. “You should assume this trend will continue and increase somewhat,” he said.

Barclays currently employs more than 147,000 staff around the world. On Monday, rival HSBC announced it would cut 25,000 jobs by 2013 as part of its own efforts to cut costs. It had already announced 5,000 job cuts.

Lending targets

Despite the reduced profits, Mr Diamond said he was pleased with the results in what he called a “lacklustre” economic environment.

Sally Bowyer, Managing Director of leading claims firm, BrunelFranklin.com said: “Making a refund application against a bank or other large financial institution can be a daunting prospect, which is why it is much better to seek help from an organisation like Brunel Franklin, rather than struggle on and be left to try and work out the details for yourself. We operate a no-win-no-fee service and there is nothing to pay until your case is successfully won and the vendor has paid out.”

Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51