Barclays PLC chief executive Martin Taylor abruptly resigned after a board meeting Thursday, and the banking company said it would report lower than expected profits for the year.

The news, which was first reported by the BBC, sent shares of the company's stock down more than 7% Friday. Barclays had two big investments that ran into trouble this summer, in Russia and in Long-Term Capital Management LP, a hedge fund. The banking company will record profits of about $3.15 billion in 1998, rather than the expected $3.36 billion.

The bank is "in good shape and well placed to seize future opportunities," said Mr. Taylor in a written statement. "It is now time for me to stand down and to allow the new management team to take the business forward."

Deputy chairman Sir Peter Middleton will be chief executive until a permanent successor to Mr. Taylor is appointed, Barclays said.

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