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Pin to quick picksBarclays Share News (BARC)

Share Price Information for Barclays (BARC)

London Stock Exchange
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Share Price: 216.75
Bid: 216.10
Ask: 216.15
Change: 1.85 (0.86%)
Spread: 0.05 (0.023%)
Open: 214.55
High: 216.75
Low: 214.55
Prev. Close: 214.90
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Barclays proves it's good with numbers

Tue, 15th Feb 2011 14:02

Barclays has increased profits by an impressive 32% and cut bonuses for all its staff, keeping analysts, shareholders, politicians and a banker-bashing public happy.The lender, helped through the financial crisis with Middle East cash rather than taxpayer's money, hit a five-month high Tuesday as City traders heard it had made £6.1bn in 2010 compared with £4.6bn the year before. They'd only expected £5.5bn.But those with a keen eye and equally good memory will know that Barclays posted an £11.6bn profit in 2009. That included a profit of £6.3bn from the sale of Barclays Global Investors, meaning 2009 profits were 92% higher than in 2008.Including BGI was good for 2009 - without it profits fell 13% to £5.3bn - but not so good for 2010 when its inclusion would have caused a 47% slump in profits.On bonuses, chief executive Bob Diamond said payments this year had been influenced by last week's Project Merlin deal with the government. The coalition effectively stopped badgering the banks to axe bonuses in return for commitments to lend more to businesses.Staff bonuses were cut by 7% to £3.4bn and by 12% at investment arm Barclays Capital to £2.6bn where headcount rose 7% to 24,800.Admirable; but staff costs still increased by 20% to £11.9bn, including an jump in performance costs from £2.8bn to £3.5bn. Salaries for whizz kids at BarCap rose to compensate for the hit on bonuses, sending Barclays' bill for salaries and performance alone up 13% to £8.8bn. Included within that is £860m of share-based payments, three times the figure for 2009.Just to confuse things, BarCap said last year its staff received an average bonus of £95,000. The unit employed 23,200 people at the time, giving a bonus pot of a little over £2.2bn, meaning this year's payout is £400m more than in 2009. On today's numbers, investment bankers pocketed an average £125,000 in bonuses in 2009, but only £105,000 this time, though compensation costs represented 43% of income compared with 33% the year before.But none of this bothers the market. Barclays shares are trading as high they have done since September and have risen 26% since the beginning of 2011.Chief executive Bob Diamond appears to have made a winning start to his leadership of the bank and is expected to get £9m for his troubles. All will be revealed in next month's annual report.
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Barclays executive denies discrimination in employee case

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