Barclays warns of weak first-quarter investment banking performance as tough conditions bite

The logo of Barclays is seen on the top of one of its branch in Madrid, Spain, March 22, 2016. REUTERS/Sergio Perez

LONDON (Reuters) - Barclays has warned investors that its first quarter investment banking performance was likely to be weaker than the same period a year ago, citing challenging market conditions.

In a surprise trading update on Tuesday, the lender also confirmed that its non-core income for the three months to end-March was expected to deteriorate compared to prior quarters, largely due to falls in the value of its Education, Social Housing and Local Authority loan portfolio.

Shares in the bank, which is due to report its first quarter figures on April 27, were trading down 3.1 percent at 145.7 pence at 1401GMT.

The bank also said it will seek shareholder approval for its plans to sell its controlling stake in Barclays Africa Group at a general meeting on April 28.

Barclays requires shareholder approval for the plan because it would result in accounting deconsolidation of the stake in its Africa unit.

Reporting By Lawrence White, editing by Sinead Cruise