Barclay has reported a 2009 pretax profit of 11.6 billion pounds ($18.2 billion) in first quarter, on the back of 6.3 billion pound gain on the sale of its Barclays Global Investors asset management arm.
Net income rose to 9.39 billion pounds ($14.8 billion) from 4.38 billion pounds a year earlier, the London-based bank said today in a statement. Barclays sold its money management business Barclays Global Investors to BlackRock last year, excluding the gain pretax profit declined 13 percent to £5.3 billion. The total dividend for the year declined 78% to 2.5 pence a share.
“So we have strengthened our capital position, reduced leverage and added to our liquidity buffer and “We are by consequence both well prepared for any future economic weakness and also able to continue to execute on our strategy as opportunities arise”, said Chief Executive Officer John Varley in the statement.
The bank recorded an impressive performance as there were concerns that tighter rules on capital and liquidity would reduce bank’s profitability. CEO John Varley and President Bob Diamond have both declined any bonus for 2009 and that other members of the executive committee have had their entire bonus deferred, bank said in a statement.