Barclays announces £4.6bn profits
Barclays today unveiled profits of £4.6bn (€6.7bn) as part of the first slice of a £30bn (€43.6bn) haul expected from the UK’s five biggest banking groups.
The record annual performance from Barclays was 20% higher than 2003 and included profits of £2.47bn (€3.6bn) from its UK banking division.
In the coming days, HSBC, Lloyds TSB, NatWest owner Royal Bank of Scotland owner and HBOS are expected to take the sector’s total profits for 2004 towards £30bn (€43.6bn) – equivalent to £1,000 (€145,000) a second.
Much of the 9% improvement in UK profits was achieved in business banking, where annual earnings lifted by 19% to £1.35bn (€2bn).
This was offset by a weaker result in the retail division – an area Barclays said it needed to improve after profits fell 1% to £1.13bn (€1.64bn).
Barclays forecast a better showing in 2005, following its investment in more front-line staff, as well as better technology and infrastructure.
The company, which has more than 2,000 UK branches serving 10.7 million current account customers and 10.6 million savers, blamed the weaker UK retail showing on margins pressure on its mortgage business.
Elsewhere in the group, Barclaycard profits rose by 5% to £801m (€1.2bn) – a showing described as “more muted” than previous years following a series of interest rate rises and a drive to grow the customer base.
In the wealth management division, which includes recently-acquired stockbroker Gerrard, earnings rose by 57% to £451m (€655m).
Chief executive John Varley said he was confident of further growth across the group: “We take nothing for granted, but 2005 should be a year in which we can move forward confidently.”
