• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
  • Guest Content
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Opinion
    • Elevenses
  • Business
  • Food
  • Travel
  • Property
  • JOBS
  • All
    • All Entertainment
    • Film
    • Sport
    • Tech/Auto
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Opinion
    • Elevenses
  • Business
  • Food
  • Travel
  • Property
  • JOBS
  • All
    • All Entertainment
    • Film
    • Sport
    • Tech/Auto
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
No Result
View All Result
The London Economic
No Result
View All Result
Home Business and Economics

Alright for some? Barclays delivers dividend payout and staff bonuses despite profits tumble

Dividends and bonuses are in sharp focus for this year’s bank results season, with handouts set to stoke controversy coming against a backdrop of economic carnage caused by the pandemic.

Joe Mellor by Joe Mellor
2021-02-18 15:18
in Business and Economics
FacebookTwitterLinkedinEmailWhatsapp

Banking giant Barclays has seen annual profits almost halve after setting aside a mammoth £4.8 billion for loan losses due to the pandemic.

The group reported a 48% plunge in underlying pre-tax profits, excluding litigation and conduct charges, to £3.2 billion for 2020.

Statutory profits fell 30% to £3.1 billion.

But Barclays unveiled a shareholder dividend payout despite the profits hit, as well as a £1.6 billion bonus pool for staff and £1.4 million in annual bonuses and incentive shares for boss Jes Staley.

NEWS: Group CEO Jes Staley announces Barclays Full Year 2020 Results. #BarclaysResults

— Barclays Bank (@Barclays) February 18, 2021

Its results revealed another £492 million set aside for expected borrower defaults due to the Covid-19 crisis in the final three months of the year, though this was down nearly a fifth on the previous quarter.

Barclays warned that costs related to the pandemic will remain high throughout 2021, but that it expects loan loss charges to be “materially below” last year’s £4.8 billion hit.

It added that investment banking trading offset the impact on its retail arm, with its “best ever year” for markets and banking income helping keep the group in profit every quarter.

Staff bonus pool

Mr Staley said: “Given the strength of our business, we have decided the time is right to resume capital distributions.

“We have today announced a total payout equivalent to 5p per share, comprising a 1p 2020 full year dividend and the intention to initiate a share buyback of up to £700 million.”

RelatedPosts

UK no longer worst-performing economy in G7

Timpson proves once again why it’s a business of impeccable moral standing

Manufacturing slump worsens as EU customers grow ‘tired of additional administrative Brexit checks’

‘Brexit will be remembered as a historic economic error’ – Larry Summers

He added: “We expect that our resilient and diversified business model will deliver a meaningful improvement in returns in 2021.”

In its annual report published alongside the results, Barclays revealed the staff bonus pool was 6 per cent higher than the £1.5 billion shared out in 2019.

It said this represented a “relatively modest increase across the investment banking businesses, reductions for all other businesses and appropriate recognition for the contributions of our more junior colleagues”.

Mr Staley’s annual bonus awards took his total pay to £4.01 million for 2020, though this was down on the £5.9 million paid out in 2019.

Economic carnage

Dividends and bonuses are in sharp focus for this year’s bank results season, with handouts set to stoke controversy coming against a backdrop of economic carnage caused by the pandemic.

Lenders last year scrapped dividends after pressure from the Bank of England.

But the Prudential Regulation Authority (PRA) recently allowed lenders to resume paying divis, giving Barclays and its rivals the green light to resume shareholder payouts.

Mr Staley said despite the eye-watering loan losses that impacted figures, “2020 demonstrated the value of our diversified banking model”.

Stock market volatility since the start of the pandemic helped drive a 45% surge in revenues to £7.6 billion for its markets unit, which trades fixed-income securities, equities and derivatives.

But its consumer, cards and payments division slumped to a £388 million loss in 2020 due to the loan losses and wider economic woes.

Related: Reaction as EU poised to lock Britain out of its banking market

Content Protection by DMCA.com

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending

Elevenses: The Thing About Wrexham’s Cinderella Story

Elevenses: Exposing the Tories’ Deepfake Illegal Immigration Bill

Elevenses: Rishi’s Finest Hour

More from TLE

Were they shouting Boo-oris? Shapps says PM was CHEERED, not jeered

Minerals within diamonds can take billions of years to grow

Johnson: UK will be ‘fitter and happier’ if obesity problem is tackled

Taylor review “like putting out forest fires with water a pistol”

JPMorgan Russian Securities – Beyond politics

Johnson ‘smirks and smiles’ as he’s asked about Starmer death threats

Braverman’s husband hits out at Gary Lineker in ‘first-ever interview’

‘Terrifying’ decline in insects ‘demands a political and a societal response’

Watch Welsh woman tell Hillary Clinton “Bernie would have won” as she collects Swansea University honour

Quiz: How good are your geography skills?

JOBS

FIND MORE JOBS

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.