Image: Barclays Image: Barclays

Barclays has reported a 10% fall in profits for the third quarter as it set aside £560 million for customer refunds and litigation costs.

A day after confirming former JP Morgan banker James "Jes" Staley would takeover as its new chief executive, the banking giant posted profits of £1.43 billion for the three months between July and September, down a tenth on the same period last year.

Barclays said part of the slowdown was due to weak growth in its non-core businesses, which are due to be sold. Those non-core businesses, which include some investment banking assets and European retail banking, doubled losses to £337m.

Overall revenues dropped from £6.4bn to £6.1bn. The bank did say that profits in the businesses it is keeping rose 1% to £1.76bn, however.

In a letter to staff on Wednesday, Mr Staley said he would be focusing on Barclays' investment operations that did not require as much capital. His predecessor Antony Jenkins was fired after falling out with the board over strategy. Mr Jenkins wanted to turns the bank's attention more towards retail banking.