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Barclays Releases Latest Profit And Salary Figures

by Jim ONeil on February 17, 2011

in Personal Finance News

On Tuesday, the UK was focused on Barclays, which beat expectations with an annual pre-tax profit totaling £6.07 billion. This represents an impressive 32 percent increase from last year and exceeded the £5.5 billion forecast from analysts.

In addition, the company reported a 30 percent decrease in bad debts to £5.7 billion. In spite of this, the bank decreased its staff bonuses.

Impairment charges for Barclays Capital, the investment banking arm of the institution, decreased sharply. This was partially offset by an increase in the impairment for Barclays Corporate within Spain. The nearly £900 million in charges led to Barclays Corporate experiencing a £631 million pre-tax loss.

Overall, group revenues totaled £31.44 billion, with small pre-tax profit increases reported by BarCap and the global retail banking division.

Despite the good news, Barclays reported that staff bonuses were reduced by seven percent, totaling £3.4 billion for the year. The bank also implemented a Contingent Capital Plan as part of its senior

staff deferred compensation arrangements.
Under the plan, bonus payments will be deferred for three years, with payment based on presence of sufficient capital reserves.

Barclay Chief Executive Bob Diamond reported that staff bonus payments were influenced by the banking industry and federal government Project Merlin. Last week, top UK banks agreed to keep bonuses in check and engage in more lending to businesses of small and medium size.
During 2010, UK lending by Barclays was nearly unchanged from the previous year.

Though staff may have lost out regarding bonuses, pensionable bumper salary increases made up for this. Total pay for the 24,800 BarCap bankers averaged £236,000 during 2010. This figure includes bonuses, salaries, and pensions and is an increase from the 2009 £196,000 figure.
Barclays issued a final dividend of 2.5p per share, resulting in a 5.5p annual dividend. This is more than double the 2009 dividend payment, which was 2.5p.

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