Barclays swung to a second-quarter net profit of £161 million ($272.7 million), compared with a net loss of £168 million in the same period last year, as the British bank made progress with plans to shrink its investment bank.

"We committed to simplify, focus and rebalance the group to deliver higher and more sustainable returns across the cycle, while structurally reducing our cost base and strengthening our capital position. We are making encouraging progress in executing this plan," chief executive Antony Jenkins said.