The £3.7bn pre-tax profit is a 24% drop from last year as the group has been heavily impacted by its over-issuance of securities in the US. The net cost due to the blunder came to £0.6bn.

C.S. Venkatakrishnan, Barclays Group CEO, commented: “This has been a strong first half with Group income up 17% to £13.2bn and a RoTE of 10.1%. The broad-based income growth that we achieved in the first quarter continued across all three operating businesses into the second quarter.

“Our performance in the first half shows the resilience and advantage that diversification at all levels brings, both across the bank and within our businesses. It also underlines the value of investment into our three strategic priorities in next generation consumer finance, sustainable growth across the Corporate and Investment Bank (CIB), and the transition to a low-carbon economy.

“Profit before tax was £3.7bn, and attributable profit was £2.5bn, after absorbing charges net of tax of £0.6bn relating to the Over-issuance of Securities.”

He added: “We are alert to the pressure that the rising cost of living will have on our customers and colleagues. We have a range of measures in place to help and are looking to do more.

“With our resilient income growth and balance sheet strength, we can provide that support while distributing excess capital, having announced a half year dividend of 2.25p per share and an intention to initiate a further share buyback of £500m.”

John Moore, senior investment manager at Brewin Dolphin, said: “Despite a fall in headline profits, Barclays has followed Lloyds with a strong overall set of results. However, litigation costs continue to be an issue for the bank and are becoming a familiar theme for quarterly updates.

“The credit card division is likely to be the most affected by any downturn in the economy, but there are some assurances around its preparedness, while its net interest margin will be helped by rising interest rates in the UK.

“Barclays is in a relatively good position and there remains the potential for a strategic move that could add shareholder value, but the bank could be even better placed if it could sort out the issues that have plagued recent updates.”