Barclays Bank saw adjusted pre-tax profits fall by almost a third during 2013 as restructuring and litigation costs impacted the business, but has increased the bonuses it pays staff.
Yesterday the bank was forced to reveal its 2013 profits a day early after a leak in a financial diary column.
Over the 12 months to 31 December, the bank reported adjusted pre-tax profit fell 32% from £7.6bn to £5.2bn, while income fell 4%.
Adjusted profit before tax in the fourth quarter was down £1.2bn to £191m compared to the previous quarter, partly due to the impact of litigation and regulatory penalties in the investment bank.
Statutory profit before tax was £2.9bn, up from £797m in 2012, reflecting a reduced own credit charge of £220m (2012: £4.6bn). PPI provision fell from £1.6bn to £1.35bn between 2012 and 2013.
The bank has increased its staff bonus pool for 2013 by 10% to £2.4bn, up from £2.2bn in 2012, with the investment bank's bonus pool increasing by 13%.
Group chief executive Antony Jenkins recently turned down a £2.7m bonus to which he was entitled, saying it would be wrong given the "very significant costs" the business faces.
Barclays shares ended the day 1% higher yesterday at 278p. The shares have been disappointing over the last year, down 8% despite a 5% rise in the wider FTSE 100, following a series of scandals which have plagued the bank.
Most recently it was fined £2.3m for poor record keeping by the Financial Industry Regulatory Authority. The bank is also under investigation by the Information Commissioner after thousands of confidential files containing personal details of the bank's customers were reportedly stolen.
Jenkins (pictured) said restructuring within the business had impacted performance. "Our UK retail and corporate banking businesses delivered good results, alongside the continued strong growth of Barclaycard. Within the investment bank, an impressive performance in equities and in investment banking has helped to partially offset lower income from our fixed income, currencies and commodities business. We have also started to make important progress in repositioning our African, European and wealth businesses to improve returns.
"However, profits have been impacted by the restructuring and de-risking activity we completed during the year. This included withdrawing from certain lines of business, investing to transform our operations and resolving legacy conduct and litigation issues. The cost of these actions suppressed statutory profits to £2.9bn in the year, but was in the long-term interest of our shareholders."
Jenkins took over at Barclays in August 2012 from Bob Diamond following the LIBOR rigging scandal which engulfed the bank.
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