Barclays reports profit before tax of $4.02 billion for first nine months

LONDON (Reuters) - Barclays reported a profit before tax of 3.1 billion pounds ($4.02 billion) for the third quarter, as its under-pressure investment banking division booked increased trading revenues despite difficult market conditions.

The bank also said it will redeem $2.65 bln worth of preference shares, in a move to reduce its annual funding costs.

Barclays reported a better than expected core capital ratio of 13.2 percent at the end of the third quarter.

($1 = 0.7705 pounds)

(Reporting By Lawrence White and Emma Rumney, editing by Sinead Cruise)