Barclays Plc (BARC), the U.K.’s third- largest bank by assets, said earnings fell to 1.01 billion pounds ($1.67 billion) in the first quarter, as revenue from its investment banking unit declined by 15 percent. Net income was 5 percent lower for the three months to March 31 than the 1.07 billion pounds posted in the same period of 2010, the London-based company said in a statement today. Analysts estimated the lender would post a profit of 1.21 billion pounds, according to four surveyed by Bloomberg. Revenue at Barclays Capital, the investment banking unit run by Jerry Del Missier and Rich Ricci, fell to 3.28 billion pounds. “We have made a good start in 2011 in a challenging external environment,” Chief Executive Officer Robert Diamond said in the statement. Diamond cut the bank’s return on equity target in February to 13 percent down from an average of 18 percent over the past three decades, as higher capital requirements from regulators erode profitability. He is reviewing the bank’s operations and may sell or close some of the third of its operations that don’t generate sufficient returns. The bank will hold its annual meeting of shareholders in London at 11.00 a.m. To contact the reporters on this story: Gavin Finch at gfinch@bloomberg.net; Jon Menon in London at jmenon1@bloomberg.net To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

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