Barclays profits drop £177m in 2011

Barclays has reported a slight decline in profit for 2011 despite increased income, and a decrease in total incentive awards of 26 per cent across the whole of the group.

Total income increased three per cent to £32.3bn with adjusted income excluding own credit and debt buy-back down eight per cent.

Profit before tax of £5.9bn was down three per cent on last year, and adjusted profit before tax dropped two per cent to £5.6bn, signifying a decrease of £177m.

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Barclays Capital total incentives were down 35 per cent year-on-year following a decrease in profit before tax of 32 per cent.

The 2011 bonus pool specifically for Barclays Capital was £1.5bn, down 32 per cent on 2010.

Bob Diamond, chief executive of Barclays, said: “Against the backdrop of challenging economic and market conditions, we maintained our focus on clients and customers while supporting the real economy, as well as the needs of our shareholders, colleagues and the communities in which we operate.”

Operating expenses including provision of payment protection insurance, goodwill impairment and UK bank levy, were down four per cent year-on-year to £18.9bn.

David Fleming, national officer at Unite, said: “The announcement on bonuses today by Barclays is yet another illustration of the banking sector continuing to ignore the public outrage and disgust at their behaviour.

“Serious questions exist about the moral backbone of those running the financial service sector, while they find it acceptable to ignore the misery working people face with our economy in turmoil.

“The strong results today reflect the hard work done by the thousands of low paid Barclays staff in bank branches, processing and call centres. However, there remains an unacceptable disparity between the huge pay awards to the select few at the top of the organisation and the majority of the workforce.”

He added that in 2011 the bank cut approximately 6,000 staff worldwide.

“Barclays must now realise that cash rich multi nationals need to plough something back into society, instead of simply rewarding one another with fat bonuses.”