The bank also set aside 290m to compensate customers mis-sold foreign exchange products as it reported a 10 per cent drop in quarterly profit.
Barclays detailed for the first time its expected costs to implement the so-called “ring-fencing” of its UK retail bank, required by law to be in place by 2019.
The bank said it will spend about £400m next year to implement the ring-fence, and as a result lifted its guidance for core costs to £14.9bn from £14.5bn. It cut its 2016 return on equity target for its core business to 11 per cent from 12 per cent.
It will spend about £100m on ring-fencing plans this year, and the remaining £500m after 2016.
On Wednesday, the lender confirmed the appointment of Jes Staley as its new group chief executive officer, taking the role from December 1 in a move that analysts say signals the bank wants to return to its former investment banking glory.
Boston-born Mr Staley worked at JP Morgan for more than three decades before quitting in 2012 to join the hedge fund BlueMountain Capital Management.
Since the financial crisis it investment banking has become harder to generate revenues from investment banking, due to a range of new rules imposed by regulators around the world.
But the appointment of Mr Staley is seen as a sign that Barclays wants to renew its focus in this area after Mr Jenkins - a retail banker - had toned down this side of the business in the aftermath of the Libor rate-fixing scandal.
Chairman John McFarlane said: “As we align Barclays around our three priorities - focus on core segments and markets, generating shareholder values, and instilling a high performance culture with strong ethical values - we now have a forward agenda that has been discussed and agreed with Mr Staley.”
The bank said its adjusted pre-tax profit for the nine months to the end of September rose five per cent to £5.2bn, after the bank said it saw good growth across its core units, such as private and corporate banking and its Barclaycard operations.
It said its foreign exchange charge in the third quarter brought to total amount the bank had set aside for UK customer redress in 2015 to £1.3bn, jumping from £910m a year ago.