Barclays is the latest UK bank to boost bonuses following a surge in annual profits linked to the release of cash originally put aside to cushion the blow of the Covid crisis.
The lender confirmed it had increased its staff bonus pool by more than 17% to £1.3bn for 2021, having paid out nearly £1.1bn a year earlier even as the pandemic raged.
It came as the bank reported an annual pre-tax profit of £8.4bn, more than doubling the £3.1bn reported for the whole of 2020. The surge in profits was due to the improving economic outlook, which meant Barclays was able to release £653m from reserves originally set aside to offset a potential jump in loan defaults during the pandemic.
That compares with the £4.8bn it was forced to put aside amid fears that customer debts would sour in 2020.
In his first set of full year results the chief executive, CS Venkatakrishnan, said: “Barclays demonstrated a clear and sustainable path to growth over the course of 2021.
“Our strategic priorities will continue to develop the diversified business model that we have established, investing in advanced technology capabilities in our consumer businesses, delivering sustainable growth across our global corporate and investment bank and reinforcing our commitment to aiding the transition to a low-carbon economy.”
Venkatakrishnan took over from Jes Staley in November, when his predecessor resigned. Staley stepped down after an investigation by the City watchdog, the Financial Conduct Authority, over how he described his links to the sex offender and disgraced financier Jeffrey Epstein.
The findings of the investigation have not yet been made public.
