Barclays shares have tumbled to the bottom of London's blue-chip index after the British lender issued a warning regarding restructuring charges in the fourth quarter and cut its net interest margin guidance for its U.K. division.
At 0906 GMT, shares were down 4.75% to 137.20 pence, their lowest price since late March, with a session low of 131.5 pence.
The bank has indicated that it may encounter one-off material costs in the fourth quarter due to measures focused on reducing structural expenses. These measures are expected to contribute to future returns. Further details on cost efficiencies, disciplined capital allocation, and revised financial targets will be provided in the full-year results announcement in February.
Excluding these charges, the group still aims for a full-year return on tangible equity of approximately 10%.
Barclays has also revised its net interest margin expectation for Barclays UK, now forecasting a range of 3.05% to 3.10%, compared to the previous estimate of around 3.15%. The bank reported a margin of 3.04% for the third quarter, a decrease from 3.22% in the second quarter.
During a call with analysts, company executives stated, "We would expect NIM to step back a little in 4Q."