Barclays profits tumble 12% as UK interest rates hit mortgage demand | Barclays

Profits at Barclays tumbled by 12% in the first quarter, as higher UK interest rates weighed on demand for mortgages and loans while a backdrop of economic uncertainty affected its investment bank.

The UK bank said pre-tax profits fell to £2.3bn in the first quarter, down from £2.6bn last year, when it reported the strongest quarterly profit since 2011 after a string of interest rate hikes by the Bank of England.

While UK interest rates have since risen to 5.25%, allowing banks to charge more for loans and mortgages, the resulting pressure on households has dampened the appetite for…