Barclays Reports 21% Fall in Pre-Tax Profits

Barclays banking group, sponsor of football’s Premier League, has reported a sharp fall in profits.

Statutory pre-tax profits fell 21% to £2.26bn for the year to 31 December 2014.

The group increased its provision to cover any fallout from a probe into currency market manipulation by £750m to £1.25bn.

But stripping out this and other provisions, profits rose 12% to £5.5bn, the bank said.

Boss Antony Jenkins was awarded a £1.1m bonus – his first as chief executive – pushing his total pay package to £5.5m for 2014.

But the bank reduced the overall pool of money allocated for bonuses by 22% to £1.86bn.

Provision for payment protection insurance (PPI) compensation was increased by £200m for the last three months of 2014, the bank said, taking the year’s total to £1.1bn.

But Mr Jenkins said the banking group was stronger and had better prospects than “at any time since the financial crisis.”

Speaking to the BBC’s Today programme, Mr Jenkins defended his bonus, saying the bank had reduced operating costs by 9% to £19bn and had made a “huge amount of progress.”

Referring to the large amounts set aside to cover legal costs, fines and compensation, he said he was determined the bank would not make the same mistakes again.

Source: BBC News