Barclays shares sink 5% as the bank expects to earn less interest in the U.K.

Barclays said Thursday that it expects to gain little involvement successful its U.K. division, arsenic analysts flagged the bank's "modestly disappointing" acceptable of results.

The British lender reported a nett income of £1.3 cardinal ($1.68 billion) for the 2nd quarter, successful enactment with expectations, contempt slower momentum successful concern banking.

Analysts were expecting a nett income of £1.4 cardinal for the quarter, according to Refinitiv. The slope antecedently reported a nett net of £1.78 cardinal successful the archetypal 4th of the year.

The second-quarter show was supported by the home part and by the user and cards arm. Both saw revenues higher successful the quarter, up by 14% and 18%, respectively. But, going forward, Barclays said that it expects a little nett involvement borderline successful its home slope — meaning that the slope is apt to person little wealth from the involvement it makes connected loans and from the involvement it pays connected deposits.

In addition, concern banking revenues dropped by 3% connected the backmost of little lawsuit activity.

Barclays shares dropped 5% successful aboriginal trade.

C. S. Venkatakrishnan, radical main executive, told CNBC's "Squawk Box" Europe that the expected alteration successful nett involvement margins going guardant is owed to immoderate customers utilizing their savings to repay their owe loans — this is yet a affirmative for the bank, arsenic it reduces the chances that radical volition miss their payments.

Venkatakrishnan added that the U.K. user is worried, prudent but not nether stress.

The Barclays squad besides announced plans for a stock buyback of up to £750 million.

"The £750m buyback is the silver-lining successful what was a modestly disappointing 4th for revenue," analysts astatine Jefferies said successful a note.

Here are different highlights for the quarter:

Venkatakrishnan said successful a statement: "We person positioned Barclays cautiously for this mixed macroeconomic situation and delivered a accordant show successful the 2nd quarter."

"Looking guardant we are precise assured of gathering our targets for the afloat year," helium added.