Barclays profit up on investment banking rebound

LONDON (Reuters) - Barclays posted a 22 percent rise in first-quarter profit, ahead of market forecasts, as a strong rebound in revenue from its investment banking arm and a drop in bad debt countered increased compensation for insurance mis-selling.

An increase in profits at the big five UK banks was wiped out by more than £11bn of fines and compensation payments in 2012, reports The Guardian. Despite an improved core business performance, fines from regulators and the costs of the mis-selling of payment protection insurance contributed to a 40% cumulative drop in profits from 2011 to £11.7bn, according to accountants KMPG.