By Margot Patrick 

LONDON-- Barclays PLC on Wednesday scrapped its dividend target to retain capital as part of a fresh effort by Executive Chairman John McFarlane to reshape the beleaguered British bank.

The move came as the lender reported a sharp rise in second-quarter net profit to GBP1.15 billion ($1.8 billion) from GBP161 million in the same period last year.

The second-quarter net profit figure was helped by a one-time, GBP496 million gain on Barclays's acquisition of parts of Lehman Brothers in 2008, while the second quarter last year was held back by higher operating and restructuring costs.

In an anticipated strategy shift, Mr. McFarlane also said Barclays would move faster in plans to shed noncore assets, but held off for now from any major changes at its investment bank, saying he was "personally pleased" by the division's recent progress.

Second-quarter revenue at Barclays's investment bank was flat at GBP2.15 billion but lower restructuring costs helped drive a 35% rise in the unit's pretax profit in the period.

In retail and corporate banking, Barclays posted a 9% fall in adjusted profit before tax, to GBP709 million from GBP780 million, as operating costs rose. The number strips out a new, GBP850 million provision in the second quarter to compensate U.K. customers for missold products including payment protection insurance on loans.

Shares in the bank rose 1.9% in early trading in London.

Mr. McFarlane, who fired Antony Jenkins as chief executive earlier this month and is temporarily running the bank, said the lender would maintain a 6.5 pence a share dividend this year to help keep its capital strength up. He abandoned earlier payout targets of 40% to 50% of earnings, saying the bank "will aim to maintain a sustainable and progressive dividend policy."

The strategic plans announced Wednesday were made three years into a prolonged period of transition at Barclays after an era of high returns from its once-huge investment bank was ended by rising capital requirements and the exit of former CEO Bob Diamond.

Mr. Jenkins proved to be a stopgap CEO, helping the bank improve its culture and standards but never fully convincing shareholders or analysts that Barclays had figured out how to adapt to a changed banking industry. He was fired on July 8, with Mr. McFarlane saying Barclays "urgently required" a different person running the bank.

Write to Margot Patrick at margot.patrick@wsj.com

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