Shares in Barclays, the UK’s second-largest bank by market capitalisation, fell 5 per cent on Tuesday in spite of healthy profits for the third quarter, an improved assessment of the outlook for loan losses and the reinstatement of its dividend after almost a year.

Analysts said the decline was a reaction to the 31 per cent quarter-on-quarter fall in investment banking revenue to £3.7bn, although the Barclays Capital business, which was beefed up through the acquisition of the US operations of Lehman Brothers, contributed a third of group profits.