According to the bank, the profit growth was driven primarily by its investment division, which saw a higher than expected 35% increase in pre-tax profits.
Prior to the publication of the bank’s results, the Independent noted analysts’ concerns over the mounting level of bad debts from unsecured lending, but the results appear to have proved them wrong, indicating that Barclays’ performance in its consumer credit business was beginning to improve.
Barclays’ international operations have also had a successful year, with approximately 50% of the profits generated from outside the UK. The Independent claims that the bank plans to establish 350 branches overseas throughout 2007.
Although Barclays is celebrating a triumphant year, not everyone is partaking in the celebrations. The results have triggered an array of criticism over the group’s unnecessary bank charges, claiming customers were being ripped off.
Cited by This Is Money, Liberal Democrat treasury spokesman Vince Cable said: These enormous profits highlight the raw deal UK consumers are getting from banks.
