Barclays today reported a leap in first quarter profits to £1.82bn (€2.09bn), but shares came under pressure amid fears of a slowdown at its star investment banking arm.

A sharp fall in annual profits will thrust life and pensions company Friends Provident back under the takeover spotlight this week.

Plans for an £89bn (€131bn) merger of British bank Barclays and ABN Amro came under more pressure today after the Dutch bank’s shares surged on hopes of a rival offer.