Barclays: bonuses up, profits down

Despite falling profits at Barclays, the bank has seen fit to raise employee bonuses.

Barclays announced a 33% drop in pre-tax profits to £5.2bn for 2013. The drop reflects various legal provisions, a restructuring programme that will involve the loss of 12,000 jobs and a 37% decline in investment banking profits. Barclays' peers have also struggled.

Despite the poor results, the bonus pool grew by 10% to £2.4bn. The results followed the news that more than 2,000 customers had had their personal details stolen.

What the commentators said

The latest customer data theft could also prove pricey. Throw in this week's leak that forced the bank to release results early, and Barclays looks "too accident-prone an institution to be worthy of customer or investor trust".

The executives' greed doesn't help, said Chris Blackhurst in The Independent. The old canard about banks being in a global market for talent, and so obliged to pay its people ridiculous sums to stop them defecting to rivals, was trotted out again.

Well, so good is Barclays' talent that it contributed to a 37% drop in Barclays' investment-banking division. Nor has Barclays, or any other bank, ever explained where "all these gaping vacancies" at rival banks actually are.

Recommended

How rising interest rates could hurt big tech stocks
Tech stocks

How rising interest rates could hurt big tech stocks

Low interest rates have helped the biggest companies to entrench their positions. But what if rates rise?
25 Oct 2021
Get healthy returns from these three healthcare stocks
Share tips

Get healthy returns from these three healthcare stocks

Professional investor Paul Major of the BB Healthcare Trust highlights three of his favourite healthcare stocks.
25 Oct 2021
Andrew Hunt: why it's a great time to be a deep value investor
Value investing

Andrew Hunt: why it's a great time to be a deep value investor

Merryn talks to Andrew Hunt, author of Better Value Investing, about his adventures in the market's dark underbelly, looking for the hated and neglec…
22 Oct 2021
Back on track: why you should invest in railways
Share tips

Back on track: why you should invest in railways

Rail transport suffered a severe blow in the pandemic. But while post-Covid-19 working patterns may reduce revenue, trends in technology, long-distanc…
22 Oct 2021

Most Popular

Properties for sale for around £1m
Houses for sale

Properties for sale for around £1m

From a stone-built farmhouse in the Snowdonia National Park, to a Victorian terraced house close to London’s Regent’s Canal, eight of the best propert…
15 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
Emerging markets: the Brics never lived up to their promise – but is now the time to buy?
Emerging markets

Emerging markets: the Brics never lived up to their promise – but is now the time to buy?

Twenty years ago hopes were high for Brazil, Russia, India and China – the “Brics” emerging-market economies. But only China has beaten expectations. …
18 Oct 2021