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Barclays Plc reported declining profits of more than half in the second quarter after posting 1.1 billion-pound pretax loss mainly from the unit housing the businesses and assets sold.

According to the lender, the pretax profit of the bank in exclusion of notable items, lost about 763 million pounds from 1.62 billion pounds in the prior year, missing the analysts’ average estimate of 985 million-pound.

“Non-core rundown -- the key to unlocking the full earnings power of that core -- has good momentum, and we remain committed to closing the unit in 2017,” Chief Executive Officer Jes Staley, 59, said in the statement.

Given Britain’s vote leaving the European Union, Staley’s retreat effort at Barclays dealt a blow, months after he turnaround from Asia and Africa and targets U.K. to restore profitability. Thus, the country seemed to struggle for a recession and questions were raised about whether the bank will be acknowledged in doing business through Europe from London.

Analysts decided to cut the investment bank’s earnings outlook  and are expecting further cost cuts.

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Credit impairment charges were also given focus on Barclays increased by a third, led by the oil and gas sector.

Meanwhile, the stock has seen 34 percent losses since Staley took over in December, extending a two-year decline which left the bank changing hands at less than half the book value of its assets.

Shares turned disappointingly led by unexpected dividend cut decision of the bank in March to help lift its capital position during its restructuring.

Staley’s century-old African business is selling down, pulling the investment bank out of nine countries and wiped out over 10,000 jobs, while 50 billion pounds of toxic and unwanted assets were divested.    

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Pretax Profit Drops 21 Percent

The investment bank announced a 21 percent slump in first-half group profit before tax, fueled by the firm’s non-core business disposal, pulling its earnings.

Meanwhile, statutory group profit before tax settled at £2.06 billion, down 21 percent from the same period in the prior year.

The bank’s core business extracts pretax profit of £3.97 billion, up 19 percent year-on-year. However, non-core business claimed £1.9 billion losses, due to a related French business disposal of £372 million.

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