Barclays said its third quarter profit dipped slightly from a year ago, although it beat expectations as strong performance in its consumer and credit cards business offset sliding revenues in its investment bank.

It reported pre-tax profit of £1.88 billion for the three month period, against £1.97bn a year ago but above the consensus forecast of £1.77bn.

The bank warned in July that it expected to earn less interest in its UK division.

C S Venkatakrishnan, group chief executive, said the bank would “look for efficiencies in different parts of the bank” as part of a restructuring to reduce its “structural costs”.

He commented: “We continued to manage credit well, remained disciplined on costs and maintained a strong capital position.

“We see further opportunities to enhance returns for shareholders through cost efficiencies and disciplined capital allocation across the group. We will provide an Investor Update at FY23 results which will include setting out our capital allocation priorities, as well as revised financial targets.”

Shares in the group down by more than 5% in morning trading.