By Jonathan Davies
Barclays has set aside a further £800 million to cover fines and legal costs over alleged manipulation of foreign exchange markets.
It comes as the bank announced a 26% fall in profits for the first three months of the year.
Barclays reported profits of £1.34bn for the quarter. However, excluding one-off costs, profits were up 9% to £1.85bn.
The figures are the first real indicator of the impact of the reorganisation headed by chief executive Antony Jenkins.
The bank said it has so far cut costs by 7% and reduced its investment risk.
Mr Jenkins said: "While we still have much to do, I am pleased with how we've begun 2015."