Barclays Posts 15% Profit Increase In 2005

Barclays has reported a 15% increase in profits during 2005, a figure well above analysts forecasts. "Barclays delivered strong and broadly based profit growth in 2005," said John Varley, CEO at Barclays. "We made good progress in the UK, and

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Barclays has reported a 15% increase in profits during 2005, a figure well above analysts forecasts.

“Barclays delivered strong and broadly based profit growth in 2005,” said John Varley, CEO at Barclays. “We made good progress in the UK, and are well positioned across the group for further growth in 2006.”

The banking group announced that 2005 pre-tax profit rose from 4.58 billion in 2004 to a record 5.28 billion last year.

Britain’s third largest bank revealed that growth for the year was particularly strong in its international arm, though a 19% fall in profits at Barclaycard to 687 million, caused largely by bad debt, affected its final accounts.

Barclays investment banking subsidiary Barclays Capital (BarCap) reported a 35% increase in profits to 1.27 billion over 2006.

However, profit growth was slower for the company’s UK banking division, rising 8% last year to 2.44 billion. The amount classified by Barclays as bad debt rose 44% over 2005 to 1.57 billion.

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