Barclays, the UK banking group, today revealed that profits at its investment banking business, grew "very strongly" in the third quarter and said full-year group profits would be in line with expectations.

Despite group chief executive John Varley's bullish outlook following the third-quarter trading statement, Barclays' shares fell an initial 2.5% but later rallied and at 13:30 GMT were trading down 1.66% at 591.75.