The rise in profits was helped by a 30% fall to £5.67bn in charges against bad loans.
Profit after tax rose for the year 2010 30% to £4.55bn from £3.51bn a year ago.
Net income for the year 2010 increased 22% to £25.77bn from £21.05bn in the year 2009.
Barclays Capital, the investment bank where profits almost doubled to £4.78bn on revenues of £13.6bn, paid out bonuses of £2.6bn, down 12% on last year.
Barclays’ total staff costs rose by 20% to £11.9bn, of which £3.5bn was paid in bonuses.
The bank said that it will pay a final dividend of 2.5p a share, for a total of 5.5p for the year.
Barclays CEO Robert Diamond said a strong fourth quarter, particularly at Barclays Capital, gives the firm momentum going into 2011.
