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Originally published Wednesday, October 31, 2012 at 1:23 AM

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Barclays reports Q3 loss under new CEO

British bank Barclays PLC on Wednesday reported a net loss of 200 million pounds ($322 million) in the third quarter as it wrote down the value of its own debt and set aside 700 million pounds in provisions to compensate customers for payment protection insurance.

The Associated Press

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LONDON —

British bank Barclays PLC on Wednesday reported a net loss of 200 million pounds ($322 million) in the third quarter as it wrote down the value of its own debt and set aside 700 million pounds in provisions to compensate customers for payment protection insurance.

The loss compared with a profit of 2.7 billion pounds a year ago, while total income was down 2 percent to 6.9 billion pounds. Adjusted pretax profit was up 29 percent to 1.7 billion pounds.

The results were broadly in line with investor expectations except for income from Barclays' Investment Bank, which was weaker than at its main competitors, said Gary Greenwood, analyst at Shore Capital.

"We remain neutral on the shares given the uncertain outlook, particularly in respect of the regulatory landscape associated with Investment Banking," Greenwood said.

The bank's shares opened 3.1 percent lower at 231.35 pence on the London Stock Exchange.

The biggest dent in earnings came from a charge of 1.1 billion pounds on the value of the bank's own debt, compared with a gain of 2.9 billion pounds gain a year earlier.

Barclays also booked more provisions for payment protection insurance, which Barclays disclosed earlier this month. That raised the bank's total provisions to 2 billion pounds. Other major British banks also face big costs for selling the insurance to customers who either didn't need it or want it.

It was the bank's first earnings report since Anthony Jenkins was appointed chief executive in August. He replaced Bob Diamond, who resigned following revelations that some Barclays employees had attempted to manipulate the London interbank offered rate (LIBOR), a key global financial index.

Jenkins said the results demonstrated good momentum but added, "we have much to do to restore trust among stakeholders."

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