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Barclays UK pre-tax profits up 39%

Barclays UK Retail Banking has reported a pre-tax profit of £989m for the 12 months to December 31, 2010, up 39 per cent from £710m in 2009.

The results, published today, reflect a gain of £100m on the acquisition of Standard Life Bank.

Operating expenses increased 11 per cent to £2.8bn, up from £2.5bn in 2009. Barclays says the increase reflects higher pension costs, the impact of its acquisition of Standard Life Bank and increased regulatory-related costs.

Net fee and commission income decreased 3 per cent to £1.25bn, down from £1.3bn, which Barclays says reflects “reduced income from current accounts and Barclays Financial Planning”.

Overall, the group saw an increase in pre-tax profit of 32 per cent, up from £4.6bn in 2009 to £6bn in 2010.

Total group bonuses were down 7 per cent from 2009 to £3.4bn.

Last month, the FSA fined Barclays £7.7m for misselling Aviva funds to retail clients, which was first revealed by Money Marketing. This paper also revealed the bank is closing its financial planning arm, saying the retail financial advice market is no longer financially viable, but it will continue to advise high net worth clients through Barclays Wealth.

Barclays Wealth saw a rise in pre-tax profit of 14 per cent, up from £143m in 2009 to £163m in 2010.

The bank says income increased 18 per cent to £1.6bn due to “strong growth in the high net worth businesses and higher attributable net interest income from the revised internal funds pricing mechanism”.

Operating expenses for Barclays Wealth increased 19 per cent to £1,349m, up from £1.1bn in 2009.

Barclays chief executive Bob Diamond says: “I have 147,500 colleagues around the world who are focused on bringing the best of Barclays to everything that they do, everyday. They have delivered unfailingly over the past three years.”

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