Barclays reports £500m income drop

<p>Barclays has reported a £500 million fall in income during July and August.</p>

Barclays has reported a £500 million decline in income during July and August, which came as a result of "significantly" lower revenues in its investment banking division.

The lender said the disappointing data has caused it to remain cautious about the current economic climate in the UK.

It also provided details of the £5.95 billion it wants to raise by issuing new shares, which it hopes will help plug a £12.8 billion capital shortfall.

Shareholders are being offered a single new share at 185p for every four they currently own.

In its latest trading statement, the lender said: "Barclays continues to remain cautious about the environment in which it operates and its focus remains on costs, capital, leverage and returns in order to drive sustainable performance improvements."

The company also said its cost-cutting plans were proceeding as expected, while also predicting its operating costs would reach £18.5 billion this year.

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