Barclays pre-tax profits almost double in size, new figures show

6 August 2010

Pre-tax profits for Barclays bank went up by 44 per cent during the second quarter of 2010 when compared with statistics from the same period last year.

According to figures published by the financial institution, total profits reached £3.9 billion, up on the £2.7 billion recorded by the end of June in 2009.

The increase was partly attributed to Barclays Capital, the bank’s investment unit, where pre-tax profit more than trebled to reach £3.4 billion.

John Varley, Barclays chief executive officer, said: “Against the backdrop of subdued economic and market activity and the sovereign debt storm of the second quarter, we have delivered good growth in income and profits during the first half of the year.

“The twin benefits of a broadly based set of banking activities – both by geography and business line - and sound risk management lie behind these results.”

Further findings from the financial institution revealed its global retail banking unit posted a pre-tax profit of £901 million, an increase on the £845 million seen in the same period the previous year.

Meanwhile, Barclays was one of the 91 banks which went through stress tests conducted by the Committee of European Banking Supervisors.

The committee predicted a tier one ration of 13.7 per cent for the institution by the end of 2011.

Barclays also stated that it has set aside $194 million during the first half of the year to pay for a potential settlement over possible breaches of US sanctions.

The bank has undertaken an internal review of its actions related to persons and countries subject to the sanctions and has been reporting its findings to a number of authorities including the Office of Foreign Assets Control and the US Department of Justice.

According to the financial institution, the funds have been set aside “in relation to the possible resolution of this matter”.

By Jim Ottewill

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