Yahoo Finance Barclays Grows Profits But Shrinks Bonus Pool
Barclays (LSE: BARC.L - news) has announced a 12% rise in underlying annual profits to £5.5bn and confirmed a cut to bonuses as it continues to count the cost of past conduct.
The profit figure, which beat City forecasts, was achieved as the bank continued to cut operating costs - by £1.8bn or 10% during 2014 alone.
However, on a statutory basis, pre-tax profits fell 21% to £2.3bn as it booked an additional £750m charge in the final quarter to cover alleged involvement in the foreign exchange rate-rigging scandal.
The latest provision took its total exposure to the affair so far to £1.25bn while it also added £200m to provide for the compensation programme for customers mis-sold payment protection insurance (PPI).
The bank's bonus pool fell 22% to £1.86bn.
Chief executive Antony Jenkins will take home £1.1m of that sum after deciding to take his first annual award since taking the job in 2012.
His total pay package for 2014 came to £5.5m.
He said the results showed that the bank was continuing to make progress under its Transform programme.
"Barclays today is a stronger business, with better prospects, than at any time since the financial crisis," he said.
"While our work in transforming the bank is not yet complete, our performance in 2014 gives us confidence that we are on the right track."
The bank's cost base fell as it axed 14,000 jobs and closed a net 72 branches.
Barclays has closed a quarter of its branches since the financial crisis.
The bank's share price fell more than 2% when the FTSE 100 opened - reflecting investor concern on historical conduct.
Barclays did not enter into the settlements last November which saw six banks fined £2.6bn collectively over forex rigging by global regulators including the UK's Financial Conduct Authority.
It said it was seeking a "more general co-ordinated settlement" - with other authorities in the US still investigating the scandal.
Barclays has warned the probes could result in "substantial monetary penalties".
