The bank reported an adjusted profit of £1.69bn, hit by a 28% drop in revenue at its investment banking business, having warned in April that its Q1 profits would be lower than last year's.
The bank's shareholders have been unhappy about bonus payments at the bank, given falling profits, which the bank blamed on "subdued client activity" and a reorganisation of the business.
Barclays said comparisons with last year were tough as it had a relatively strong first quarter in 2013.
Despite warning last month that there would be a fall in profits for its currencies, bonds and commodities business, shareholders still voted to approve higher bonuses.
Antony Jenkins, Group Chief Executive, said:
“A continued strong momentum across our retail, cards and corporate banking franchises, all of which generated higher returns year on year, offset by a significant decline in FICC income within the Investment Bank, resulting in Group adjusted profit before tax decreasing 5%.
"UK Retail, Barclaycard and Corporate together drove approximately half of the Group’s income this quarter and we remain well positioned to benefit from further improvements in the economic environment. Investment Bank income reduced 28% primarily driven by a significant decline in FICC income of 41% on Q113 driven by lower client volumes, changes in business mix in light of the ongoing strategic review of the Investment Bank, and a relative strong performance in Q113. Performance in Equities and Investment Banking income was broadly stable year on year.
"I am pleased to report the lowest operating expenses, excluding cost to achieve Transform (CTA) spend, since 2009. This reflects the results of our cost programme. The outcome is higher adjusted profit before tax across most businesses, with the principal exception being the Investment Bank where income weakness offset cost reduction. We will continue to focus on operating expenses as a central element of Transform.
"Building on the strong progress made last quarter on leverage reduction, we remain focused on balance sheet and capital. This was demonstrated by the fully loaded CRD IV CET1 ratio increasing 37bps to 9.6% and the estimated PRA leverage ratio increasing 16bps to 3.1% this quarter, exceeding the PRA’s expected leverage ratio of 3%. Net tangible asset value per share increased 1p to 284p.
"As previously announced, I will update the market on Barclays strategy to deliver improved and sustainable returns and growth for our shareholders on 8 May 2014. This plan will address issues underlying the performance challenges we have recently experienced, including positioning the Investment Bank for the new operating and regulatory environment.”
