BARCLAYS, which employs around 900 people in Poole, has seen profits tumble by a quarter in the first three months of the year.

The group posted first quarter pre-tax profits of £793million, down from £1.1billion a year earlier, as underlying profits in its corporate and investment banking business dropped 31 per cent.

Barclays also announced talks with AnaCap Financial Partners to sell its 74-branch business in France as boss Jess Staley continues to overhaul the lender.

The group insisted its core business put in a resilient performance, with profits up 18 per cent to £1.6bn, but said this was dragged lower by loss-making parts of the business.

Mr Staley said the results “show a core business performing well in a challenging environment”.

He added that moves to shed unprofitable divisions are cutting costs “which have a direct impact on our profitability today and mask the true performance of our strong core business”.

“This is the work we need to complete,” he said.

Barclays said it was “cautious” ahead of the June 23 referendum on European Union membership.

On second quarter trading so far, it said there had been little improvement for the investment banking business, with income down slightly further on a difficult first quarter, although the group added it was “too early” to comment on overall performance in the second quarter.

Barclays had already warned over first quarter trading, saying alongside its annual results in March that figures were set to be weaker than last year in the face of turbulent market conditions and a “particularly strong March in 2015’’.

The bank is undergoing a revamp under Mr Staley, who since January has continued to shrink the investment banking business, and sold its business in Portugal as well as a raft of other overseas divisions.

Its high street banking business in the UK also suffered a tough start to the year, with profit before tax down 17 per cent to £704m.

Barclays announced in March that it would carry out a “multi-million pound” refurbishment of its landmark Poole building.