Barclays Reports a 21% Drop in Profits
Barclays announced a decline in earnings as it allocates more money to pay off potential fines for faults.
Their earnings before tax deduction dropped to £2.26 billion at a reduced rate of 21 percent last year. The bank got more money to take care of any problem that might arise from the investigation into the forex market manipulation by £750 million to £1.25 billion.
Removing this amount with other issues and charges, changed profits increased to £5.5 billion, going up by 12 percent.
The Chief Executive officer of Barclay , Antony Jenkins was appreciated with the first bonus he has received as a CEO, this was the sum of £1.1 million. So, Mr. Jenkins total income increased to £5.5 million for the year 2014. However, all bonuses paid to staff was reduced by the bank to £1.86 billion, a 22 percent reduction.
Funds for payment protection insurance (PPI) rose by £200 million within the fourth quarter of 2014, increasing the annual amount to £1.1 billion totally.
Antony Jenkins stated on Tuesday that the bank is financially doing well now than it was since the beginning of the financial chaos. And, the bank’s yearly data report indicates that his statement is true.
Mr Jenkins supported the fact that he was given a bonus, revealing that Barclays operated in a low cost mode, which was a 9 percent reduction rate, making a total of £18 billion, with a great profit margin.
Regarding the huge amounts of money kept to pay for legal costs, compensations and fines, Mr. Jenkins was certain Barclay will not be involved in such errors in the future.