Barclays profits jump a third to £6.07bn

Barclays pre-tax profits jumped almost a third in 2010 to £6.07bn, slightly higher than analysts were expecting.

The bank reports a 32% increase on the £4.59bn profit it made in 2009, despite "continued economic challenges", it says.

Money put aside for bad loans fell 30% against a year earlier, at £5.67bn.

Group performance-related pay was down 7% to £3.4bn compared with 2009, but up 12% at the bank's investment banking arm, Barclays Capital (BarCap).

Barclays, which last month announced it would close its financial planning arm, says net fee and commission income were down 3% to £1,255m reflecting reduced income from Current Accounts and Barclays Financial Planning.

Bonuses at Barcap totalled £2.6bn, while profits at the division almost doubled to £4.78bn on revenues of £13.6bn.

Barclays Wealth, the bank's private wealth management arm, reports pre-tax profits up 14% to £163m, compared to £143m in 2009, led  principally by strong growth in the high net worth businesses, the bank says.

Profits for the bank's investment management business soared to £67m compared to £22m in 2009, which Barclays says reflects dividend income from its 19.9% holding in BlackRock.

Pay, pensions and bonuses per head for the 24,800 bankers working at Barcap was about £236,000, up from £196,000 in 2009, said BBC business editor Robert Peston.

Total group revenues came in at £31.44bn.

Lending in the UK was almost unchanged at £36bn compared with £35bn in 2009, although this figure does not include the £7.5bn in loans arising from the acquisition of Standard Life Bank.

In the UK, the bank paid £2.8bn in tax, while globally it paid £6.1bn.

Barclays share price was up 1.77%, or 5.5p, to 316.25p at 8.30am.