Barclays Bank make £ 11 600 000 000 profit.

[Uncle Spielberg]

Banking giant Barclays has seen its full-year profits increase by 92% to £11.6bn in 2009.

The figure was boosted by the sale of its BGI fund management arm to US firm BlackRock last year.

Stripping this out, profits were £5.3bn with £2.5bn coming from its Barclays Capital investment banking business.

The bank, which did not take any direct state help during the financial crisis, also saw the level of its total bonus payouts rise.

It will pay £1.5bn in bonuses for 2009 and a further £1.2bn to be paid over three years.

But it said that chief executive John Varley and president Bob Diamond had turned down bonuses for the second consecutive year, given "intense public interest and concern" about bankers' pay.

The large profits enjoyed by bankers have prompted widespread public anger because the banking sector was widely perceived to have taken dangerous risks which led to the global recession.

Banks defended

Barclays opted not to join the UK government's bail-out scheme for banks, instead opting to rebuild its finances using funds from the Middle East.

Last week, Mr Varley defended the role of big banks in the global financial system.

Appearing in front of the Treasury Committee, he said that big banks were not necessarily riskier than small banks.

Barclays said it had loaned about £35bn to businesses and households in the UK in 2009, having promised in April to lend at least £11bn.

The willingness for banks to lend is seen as an important factor for economic recovery.

What do people think about this ?.

 

[Bozza]

Look like good results to me - well done Barclays.

What do you think about this?

 

[Common as Mook]

Good luck to them. They aren't state owned so they are the same as any other business who is free to make all the profit it wants.

Considring the shambles that is the banking industry in the UK, I think we should be proud that what is essentially a British bank has survived the turmoil and come out the other side.

 

[Hunting 784561]

Excellent news . This country needs a healthy banking system.

 

[Uncle Spielberg]

I take this as good news in that a strong bank(s) is the backbone of recovery in this country. What we need now is for them to start supporting small, businesses and giving mortgages at normal ltv's 90-95% and sensible rates. The £ 2 700 000 000 of the profit they have held back for bonuses may ruffle a few feathers.

 

[Boroseagull]

Congratulations Barclays, shows how a business should be run. Other bankers & all politicians take note.

 

[Uncle Spielberg]

Before we all start exploding with excitement what they have done is like shooting ducks in a barrel. With no competition in the system they are cherry picking and finance is now a luxury extended to cast iron a! certainities. Them not lending money to small businessess has allowed thousands of sound businesses to go to the wall and not lending and cherry picking mortgages at 75% and under has meant millions of people cannot buy and move anymore. they have basically hoarded all the cash themselevs and distributed a quarter of it in bonuses.

 

[skipper734]

Good to see my money, is contributing to the small profit Barclays is making.

 

[clippedgull]

Congratulations Barclays, shows how a business should be run. Other bankers & all politicians take note.

Precisely. Sound financial management. Great news.

 

[Common as Mook]

Before we all start exploding with excitement what they have done is like shooting ducks in a barrel. With no competition in the system they are cherry picking and finance is now a luxury extended to cast iron a! certainities. Them not lending money to small businessess has allowed thousands of sound businesses to go to the wall and not lending and cherry picking mortgages at 75% and under has meant millions of people cannot buy and move anymore. they have basically hoarded all the cash themselevs and distributed a quarter of it in bonuses.

Gross new lending for local business customers;

£1.47bn

 

[hitony]

Barclays Bank make £ 11 600 000 000 profit.

I bank with Barclays.......and ALL the money is MINE !!!!

 

[Uncle Spielberg]

How does that compare with a normal functioning market I wonder ?. It sounds a lot but new mortgage lending overall was £ 12 000 000 000 in 2009, sounds a lot but the lowest level since records began in 1987 and less than 50% of that needed to have a functioning mortgage and property market.

 

[Easy 10]

Well at least they wern't one of the ones bailed out by the taxpayer. And fair play to their President and CEO for not taking a bonus again this year. But they (and others) are still perpetuating this bonus culture which is one of the main roots of the financial crisis in the first place. On average, 22,000 Barclays executives are getting a salary of £100k, plus a £91k bonus on top. Why should someone be able to almost DOUBLE their earnings with a lump-sum annual bonus ? If I do well at my job, I'd be happy if they chucked me 5%. Why should bankers expect to get 80%-90% on top of their salaries ? They're not running countries here, they're just pushing numbers around.

Give it a few more years down the line and at this rate we'll be right back where we started, with irresponsible lending and huge bonuses dragging the economies to the brink of oblivion again.

 

[Bozza]

Sorry, I thought this was going to be a serious discussion about the merits of the recent performance of Barclays Bank PLC. Naively I didn't believe it was actually going to be a(nother) "Why can't banks do more to ensure a nice comfy livelihood for mortgage brokers again?" binfest.

I'm out.

 

[Beach Hut]

Survival of the fittest - good result all round

 

[Uncle Spielberg]

Spiteful and unnecessary again but I will rise above it. What I am saying is that a functioning mortgage and property market is important for millions of people, not just someone working in the industry and it is most certainly not functioning , I am pointing out first time buyers are not allowed to buy a property as they do not have a 25% deposit needed to get a decent rate, I am saying small businesses struggling over the last 2 years who need credit have been denied it and gone under even though they have healthy order books, I am saying banks in general are making huge profits as there is no compeition in the market anymore, I am saying it is not appropriate to hold back 25% of the profits to pay the staff bonuses, if you want to reduce the debate to having a pop at me and my circumstances, well I wouldn't expect anything else to be honest. Have a good day.

 

[Common as Mook]

Well at least they wern't one of the ones bailed out by the taxpayer. And fair play to their President and CEO for not taking a bonus again this year. But they (and others) are still perpetuating this bonus culture which is one of the main roots of the financial crisis in the first place. On average, 22,000 Barclays executives are getting a salary of £100k, plus a £91k bonus on top. Why should someone be able to almost DOUBLE their earnings with a lump-sum annual bonus ? If I do well at my job, I'd be happy if they chucked me 5%. Why should bankers expect to get 80%-90% on top of their salaries ? They're not running countries here, they're just pushing numbers around.

Give it a few more years down the line and at this rate we'll be right back where we started, with irresponsible lending and huge bonuses dragging the economies to the brink of oblivion again.

Bonus culture will always exist, like it or not.

Companies have to pay the best to get the best people to work for them and saying they just 'push numbers around' is a far too simplistic view. If that was the case, why don't they juts train up a load of ASBOS to do it and get them off the street. Companies would rather not pay bonuses, but they have to to attract the best people.

The key thing is, is for there to be a sensible bonus structure, like Barclays are doing at the moment. Deference over a number of years with a claw back clause is becoming more and more prevalent.

 

[Stumpy Tim]

Sorry, I thought this was going to be a serious discussion about the merits of the recent performance of Barclays Bank PLC. Naively I didn't believe it was actually going to be a(nother) "Why can't banks do more to ensure a nice comfy livelihood for mortgage brokers again?" binfest.

I'm out.

I hate you. And for that reason, "I'm out"

Good work Barclays

 

[Uncle Spielberg]

Sorry, I thought this was going to be a serious discussion about the merits of the recent performance of Barclays Bank PLC. Naively I didn't believe it was actually going to be a(nother) "Why can't banks do more to ensure a nice comfy livelihood for mortgage brokers again?" binfest.

I'm out.

PM me and I will give you a little idea of what is been like in the last 2 years so as not to bore anyone else.

 

[Uncle Spielberg]

Anyway back to topic.