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| Barclays profits jump to £11.6bn | Barclays profits jump to £11.6bn |
| (20 minutes later) | |
| Banking giant Barclays has seen its full-year profits increase by 92% to £11.6bn ($18.2bn) in 2009. | Banking giant Barclays has seen its full-year profits increase by 92% to £11.6bn ($18.2bn) in 2009. |
| The figure was boosted by the sale of its BGI fund management arm to US firm BlackRock last year. | The figure was boosted by the sale of its BGI fund management arm to US firm BlackRock last year. |
| Stripping this out, profits fell 13% to £5.3bn with £2.5bn from its Barclays Capital investment banking arm. | Stripping this out, profits fell 13% to £5.3bn with £2.5bn from its Barclays Capital investment banking arm. |
| The bank, which did not take any direct state help during the financial crisis, also saw the level of its total bonus payouts rise to £2.7bn. | The bank, which did not take any direct state help during the financial crisis, also saw the level of its total bonus payouts rise to £2.7bn. |
| It will pay £1.5bn in bonuses for 2009 and a further £1.2bn to be paid over three years. | It will pay £1.5bn in bonuses for 2009 and a further £1.2bn to be paid over three years. |
| Barclays say that banks will be judged by how they conduct their business and how they lend and pay Robert Peston, BBC business editor Read Robert's blog See Barclays' share price | Barclays say that banks will be judged by how they conduct their business and how they lend and pay Robert Peston, BBC business editor Read Robert's blog See Barclays' share price |
| Some 22,000 investment banking staff are receiving £191,000 each on average in salary and bonuses - of which £95,000 is discretionary bonus. | Some 22,000 investment banking staff are receiving £191,000 each on average in salary and bonuses - of which £95,000 is discretionary bonus. |
| But the bank said that chief executive John Varley and president Bob Diamond had turned down bonuses for the second consecutive year, given "intense public interest and concern" about bankers' pay. | But the bank said that chief executive John Varley and president Bob Diamond had turned down bonuses for the second consecutive year, given "intense public interest and concern" about bankers' pay. |
| The large profits enjoyed by bankers have prompted widespread public anger because the banking sector was widely perceived to have taken dangerous risks which led to the global recession. | The large profits enjoyed by bankers have prompted widespread public anger because the banking sector was widely perceived to have taken dangerous risks which led to the global recession. |
| Banks defended | Banks defended |
| Barclays opted not to join the UK government's bail-out scheme for banks, instead opting to rebuild its finances using funds from the Middle East. | Barclays opted not to join the UK government's bail-out scheme for banks, instead opting to rebuild its finances using funds from the Middle East. |
| However, BBC business editor Robert Peston said some would argue it had benefited indirectly "from a windfall generated by the emergency rescue of the global economy undertaken by governments and central banks, an emergency rescue that was needed in large part because of the havoc wreaked by the excessive risk-taking of banks". | However, BBC business editor Robert Peston said some would argue it had benefited indirectly "from a windfall generated by the emergency rescue of the global economy undertaken by governments and central banks, an emergency rescue that was needed in large part because of the havoc wreaked by the excessive risk-taking of banks". |
| Former banker Barbara Stcherbatcheff and economic expert Sean Rickard on the link between bonuses and profits | Former banker Barbara Stcherbatcheff and economic expert Sean Rickard on the link between bonuses and profits |
| Last week, Mr Varley defended the role of big banks in the global financial system. | Last week, Mr Varley defended the role of big banks in the global financial system. |
| Appearing in front of the Commons Treasury Committee, he said that big banks were not necessarily riskier than small banks. | Appearing in front of the Commons Treasury Committee, he said that big banks were not necessarily riskier than small banks. |
| Barclays said it had loaned about £35bn to businesses and households in the UK in 2009, having promised in April to lend at least £11bn. | Barclays said it had loaned about £35bn to businesses and households in the UK in 2009, having promised in April to lend at least £11bn. |
| The willingness for banks to lend is seen as an important factor for economic recovery. | The willingness for banks to lend is seen as an important factor for economic recovery. |
| However, a report by the Institute of Directors suggested that almost 60% of businesses seeking bank finance in the past year had been rejected - with some saying they had been forced to borrow on their credit cards. | However, a report by the Institute of Directors suggested that almost 60% of businesses seeking bank finance in the past year had been rejected - with some saying they had been forced to borrow on their credit cards. |
| HAVE YOUR SAY It's great and a prime example of prudence and playing sensible.Steve, Reading Send us your comments | |
| Shares in Barclays were up by more than 6% in Tuesday morning trading. | Shares in Barclays were up by more than 6% in Tuesday morning trading. |
| Richard Hunter, of Hargreaves Lansdown stockbrokers, said the results were "further proof that Barclays has skilfully woven its way through the recessionary minefield". | Richard Hunter, of Hargreaves Lansdown stockbrokers, said the results were "further proof that Barclays has skilfully woven its way through the recessionary minefield". |
| "With or without the sale of BGI, the figures are extremely impressive," he added. | "With or without the sale of BGI, the figures are extremely impressive," he added. |
| "Today's announcement reiterates Barclays' position as a major global force, whilst also setting the standard in kicking off the UK banking reporting season." | "Today's announcement reiterates Barclays' position as a major global force, whilst also setting the standard in kicking off the UK banking reporting season." |