Profits at Barclays tumbled by 12% in the first quarter, as higher UK interest rates weighed on demand for mortgages and loans while a backdrop of economic uncertainty affected its investment bank. The UK bank said pre-tax profits fell to £2.3bn in the first quarter, down from £2.6bn last year, when it reported the strongest quarterly profit since 2011 after a string of interest rate hikes by the Bank of England. While UK interest rates have since risen to 5.25%, allowing banks to charge more for loans and mortgages, the resulting pressure on households has dampened the appetite for borrowing. Barclays said loans and advances to customers fell by 1% in the quarter, “reflecting subdued mortgage lending amid lower market demand”. However, executives confirmed the bank was increasing the share of high loan-to-value mortgages offered to customers, which could support a rebound in its loan book. At the same time, banks such as Barclays have been under pressure to raise interest rates for savers, further squeezing its income. Competition has also been tough, with customers placing their cash with more generous rivals, and prompting a 2% drop in deposits at Barclays. Overall, Barclays said net interest income, which accounts for...