Barclays shares soar despite profits fall

Barclays shares shrugged off a larger than expected fall in profits this morning and a downbeat market to climb over 4% in early trading.

By mid-morning, shares in the group were up 4.3% or 9.9p, to 243p, bucking the trend in the blue chip index which was down on renewed Greek concerns.

The bank's shares rose despite the group reporting a 3% fall in profits to £5.9bn last year.

Adjusted profit before tax was also down 2% compared to 2010 to £5.59bn. However, the group provided some cheer for investors after upping its dividend 9% to 6p from the previous year.

Barclays' move higher by was not enough to prop the market up, with the FTSE 100 off 0.3% or 18.5 points, to 5,877.

Miners weighed heaviest on the index as precious and industrial metals pulled back.

Markets were also spooked by the latest twist in the ongoing Greek saga.

According to reports, eurozone finance ministers have rejected a reported €3.3bn package of Greek budget cuts, dashing hopes the country will secure more bailout cash and avoid default.

Greece now faces a race against time to get a deal squared away before its debt repayments are due next month.