Barclays enjoys record profit
By politics.co.uk staff
Barclays enjoyed a huge surge in full-year profits, rising 92% to £11.6 billion.
The British bank did not take any financial assistance from the British government, instead relying on Middle East funding, but it benefited indirectly from the liquidity added to the sector during the crisis.
“The level of profitability that’s been built up last year is very much on the back of a government guarantee,” Lib Dem Treasury spokesman said on the Today programme this morning.
News of its strong performance comes amid high public anger over the banking industry’s failure to reform.
Barclays will pay out £1.5 billion in bonuses for 2009, while 22,000 investment staff will receive £191,000 each on average for their salary and bonus.
But chief executive John Varley and president Bob Diamond are turning down their bonus for the second consecutive year in a recognition of the degree of public anger directed at the industry.
The profit level was boosted by the sale its BGI fund management arm last year.
The Institute of Directors (IoD) released a survey today indicating banks were still failing to lend to businesses, despite assurances they were doing so.
