Barclays plc, Britain's second largest bank yesterday reported slightly higher first half pre-tax profits of £1.289 billion sterling (£1.5 billion) in line with market expectations, but its shares still fell.

Analysts said Barclays' results held few if any surprises and Mr John Leonard at Salomon Smith Barney described them as "the first non-event of the banks' reporting season".

Dealers reported that some investors were switching from Barclays into National Westminster Bank plc, which bucked the trend with a 38 pence rise to 1,178 pence after buy recommendations from two brokerages.

"NatWest has been unloved but is now enjoying some new focus," said Mr Leonard. "It would be our preference."

Barclays' operating profit, excluding the results of the former BZW business sold last year, was flat at £1.352 billion, while return on equity slipped slightly to 23.3 per cent from 24.6 per cent.