Barclays' Profits Jump

Profits at Barclays bank have soared by 92%, the financial services giant revealed today.

Full year profits for 2009 tipped £11.6bn ($18.2bn), a figure bolstered by the sale of the bank's BGI fund management arm to US firm BlackRock.

Minus this deal, profits stood at £5.3bn, with almost half of this generated by Barclays Capital investment banking business.

Barclays did not benefit directly from the UK Government's 'bank bail out' last year.

Bonuses at the bank also peaked at £2.7bn - over £1.5bn of which was paid out in 2009, with the remainder spread over the next three years.

However, both chief executive John Varley and president Bob Diamond have refused to collect their bonus returns for the second year running, citing the "intense public interest and concern" about bankers' pay.

Bank bosses and risk-taking investment bankers bore the brunt of public anger over the economic meltdown, which plunged the UK into one of the deepest recessions on record.

Millions of pounds were pumped into the British banking sector by the government in a bid to sustain institutions and limit industrial collapses.

Barlcays did not take direct funds from the Exchequer, instead sourced capital from the Middle East.

"The bond of trust between banks and stakeholders has been damaged by the credit crunch and the economic recession. That bond must be restored to health by how banks behave, how we lend, and how we pay," said Mr Varley.

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 turnover of loans within the money markets is seen as a vital sign of confidence, which can help shore-up economic recovery.

(PR/GK)