Image: Barclays plc Image: Barclays plc

Barclays has reported an 8% fall in its profits for 2015 and revealed plans to cut its dividend.

The banking giant posted underlying profits of £5.4 billion for the year. It will cut its dividend by half to 3p per share for 2016 and 2017.

Barclays also set aside a further £1.45bn for compensation relating to Payment Protection Insurance (PPI). The bank also announced that it would sell its 62.3% stake in its Africa business over the next few years.

It is part of plans to simplify the business into two key areas; Barclays UK and Barclays Corporate & International.

Chief executive Jes Staley said: "Barclays is fundamentally on the right path, and is, at its core, a very good business.

"There is of course more we need to do and areas where I believe we can move much faster to deliver the high performing group that Barclays can and should be."