Profit before tax at UK lender Barclays fell 3% and short of expectations in 2011, while adjusted income fell by a further 8%, reflecting a fall in income at its investment bank, Barclays Capital.
Profit before tax fell from £6,065m to £5,879m in the 12 months ended December 31st, mainly attributable to a £1,000m provision for the redress of Payment Protection Insurance (PPI) that wasn't recorded last year. The adjusted profit before tax figure, which excludes certain items such as the PPI figure, fell by a lesser 2%.
Meanwhile, total income excluding an own credit gain of £2,708m (£391m in 2010) and gains on debt buy-backs of £1,130m (nil in 2010), fell from £31,049m to £28,454m. Including these items, total income rose 3%.
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While income fell at BarCap, the firm assured that income increased in most other business "despite continued low interest rates and difficult macroeconomic conditions".
"Barclays has delivered solid results for the full year 2011 amidst a challenging economic, market and regulatory environment and has done so by continuing to support growth in the real economy," said Chief Executive Bob Diamond.
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