Despite beating analyst estimates, Barclays is the latest bank to report declining profits - a 38% drop in profits for the first half of 2011.  This, in turn prompted the British banking giant to announce it would cut costs by shrinking its workforce - also in line with the industry trend.

All told, first half net income fell to $2.44bn, from nearly $4bn for the same period in 2010.  Profits were adversely affected by compensation for customers who received bad advice on payment insurance, as well as poor performance in its investment division.

Cutting Jobs, Costs.   Like many others, Barclays plans to shed payroll costs and expects to cut about 3,000 positions this year.  The bank already has axed 1,400 during the first 6 months of 2011.  Barclays also has plans to sell its Russian retail operation and is looking to improve its loan books in Spain and Portugal.

On the positive note, Barclays set aside $2.9bn for bad loans - a 41% drop from last year.   Return on equity improved to 9.1% from 6.9% last year.  Barclay's stated goal is to hit 13% return on equity by 2013.  [Dealbook, 8/2/11]