Barclays boosts profits

Amidst all the furore over bankers' bonuses, you might have missed the news of Barclays' 32% rise in its 2010 pre-tax profits.

Barclays has announced a 32% rise in pre-tax profits to £6.1bn in 2010. It was due to a similar-sized fall in bad loans and a solid performance from its investment banking division, Barclays Capital (BarCap), which accounts for around 80% of profits. Chief executive Bob Diamond said he wanted almost to double the group's return on equity a key gauge of profitability in the next three years by closing underperforming businesses and cutting costs by £1bn. Barclays took a £532m impairment charge related to its Protium fund. That was set up to hive off toxic debt assets.

The results were overshadowed by another row about bonuses. Barclays said its bonus pool for the whole bank fell by 7% in 2010. But average pay per person rose across the group, climbing by a fifth at Barclays Capital (BarCap). This takes into account salaries, pension arrangements and payments deferred from previous years.

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