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Barclays profits up by 35 per cent

20/02/2007

Barclays has announced a record year with profits before tax up 35 per cent on last year's results to £7,136 million.

The Canary Wharf-based bank also revealed an increase in income of 25 per cent to £21,595 million and declared good news for the company's shareholders with earnings per share up by 32 per cent to 71.9 pence.

Commenting on the results John Varley, group chief executive, said: "Barclays had an excellent year in 2006. We delivered outstanding performance in Barclays capital and Barclays global investors.

"Momentum has accelerated in UK retail banking," Mr Varley stated.

Retail banking in the UK made £1,213 million in 2006 alone which the bank accredits to "accelerated income momentum".

Absa, the South African bank in which Barclays has been a majority shareholder since 2005, was said to have "outperformed our acquisition business plan delivering very strong growth".

However like many other banks, Barclays found the UK climate for credit and lending difficult with a decrease in profits of 40 per cent.

"Conditions in UK cards and consumer loans were difficult but Barclaycard UK consumer credit performance is beginning to improve. We are well positioned to deliver further growth in the years ahead," added Mr Varley.

Barclays is the first of the major five banks in the UK to unveil its 2006 results.

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