Debt Consolidation Loan

Barclays Investment Bank

Barclays Plc, Britain's third-largest bank, had a 14 percent increase in second-half net as investment- banking income rose and loan loss provisions dropped. The stock fell on concern about rising costs and the U.K. consumer business.

Second-half net income climbed to 1.55 billion pounds ($2.9 billion) from 1.36 billion pounds a year earlier, according to Bloomberg calculations. Annual costs rose 15 percent, outpacing a 12 percent gain in revenue, the bank said in a statement today.

Chief Executive John Varley, 48, is hiring bankers at the Barclays Capital investment banking unit, issuing credit cards in Europe, the U.S. and Africa, and expanding the bank's money management unit to boost profit outside Britain. Varley, who took charge in September, is trying to overcome slowing growth in the U.K. as the housing market cools and loan profitability declines.

``Rapid growth in costs as well as the very weak performance in retail are the two most disappointing aspects,'' Richard Staite, an analyst at SG Securities in London who rates the stock ``sell,'' said by telephone. ``The only reason pretax profit was in line with expectations was because of this very low provisions charge.''

Shares of London-based Barclays fell 13 pence, or 2.2 percent, to 581 pence at 10:03 a.m. in London, making it the worst performer on the 80-member Bloomberg Europe Banks and Financial Services Index. The stock, which rose 18 percent last year, had gained 1.4 percent this year through yesterday's close.

Consumer Bank

Profit rose at all businesses except the U.K. consumer bank, where pretax earnings slipped 1 percent to 1.3 billion pounds.

``In U.K. retail, profit growth was held back by the fact that we've been investing strongly,'' Varley said on a conference call with journalists. ``We're well positioned for growth in U.K. retail in 2005.''

Source : Bloomberg - USA