Shares in Barclays have slumped by 3% as provisions to cover legacy issues continue to overshadow signs of progress elsewhere in the business.
The FTSE 100 company reported better-than-expected underlying profits of £5.5 billion but this was before one-off charges, including a further £750 million for its role in the foreign exchange (forex) rate-rigging scandal.
The top flight was 51.5 points lower at 6889.1 as it surrendered a positive start seen after Wall Street's tech-laden Nasdaq rose by nearly 1% on Monday to close above 5,000 for the first time since its dot-com peak 15 years ago.
The pound was higher against the dollar, at 1.54, after UK construction data was better than expected. Sterling was flat against the euro, at 1.37.
The mixed performance at Barclays acted as a brake on banking shares in general as the FTSE 100 Index continued the uncertain performance seen since it set a new record a week ago.
The banking giant was the one of the biggest fallers in the top flight after a 12% rise in underlying profits was marred by the additional forex provision, which took its overall hit for the scandal to £1.25 billion.
With the bank also taking an extra £200 million to cover compensation for mis-sold payment protection insurance, statutory profits were down 21% to £2.26 billion.
Investec Securities banking analyst Ian Gordon noted that Barclays smashed underlying profit forecasts by 25% in the second and third quarters of last year but only did so by 3% in the fourth quarter.
Amid an uncertain outlook for investment banking, shares in the FTSE 100 stock declined 8.45p and 254.3p.
Royal Bank of Scotland fell 8.2p to 370.1p, Lloyds Banking Group dipped 0.55p to 79.44p and HSBC slipped 2p to 580.9p.
In other corporate results, Taylor Wimpey rose by 3p to 147.9p after it reported a jump in full-year profits and said the spring selling season had started with both demand and trading at the better end of its expectations.
The company also doubled its dividend to shareholders and said there were signs that recent pressure on build costs was starting to ease.
There was also an encouragement from insurance giant Direct Line after its pre-tax profit lifted 12.2% to £456.8 million in the year to the end of December.
It cut costs by 5.6% over the period in order to offset falling premium rates but shares fell 2.1p to 328.4p as it signalled an improved recent trend, with motor premiums up marginally in the fourth quarter and home rates higher over the second half of last year.
The biggest risers in the FTSE 100 Index were Tullow Oil up 7.5p at 364.8p, Taylor Wimpey up 3p at 147.9p, Morrisons up 3.2p at 202p and Hargreaves Lansdown up 11p at 1171p.
The biggest fallers in the FTSE 100 Index were Smith & Nephew down 68p at 1131p, Travis Perkins down 81p at 1944p, RSA Insurance down 14.1p at 420.2p and Barclays down 8.45p and 254.3p.
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