(Reuters) - Barclays Plc has set aside 500 million pounds to cover potential fines for manipulating currency markets, taking the shine off a rise in third quarter profits as it cut costs.

The British bank on Thursday reported an underlying pre-tax profit in the three months to the end of September of 1.59 billion pounds, up 15 percent from 1.39 billion pounds a year before.

It said it set aside 500 million pounds "relating to ongoing investigations into foreign exchange with certain regulatory authorities." It is one of six banks that are in talks with UK regulators about a coordinated settlement over alleged manipulation of foreign exchange markets, sources have said.