Financial News

  • 12 February 2014, 16:47

Barclays Bonuses Up 10% As 7,000 Jobs Are Cut

Barclays bank has pushed up staff bonuses by 10% despite seeing both its revenue and profit fall, as it admits 7,000 UK job cuts will occur this year.

The bank said it would pay £2.378bn in "incentives", following the release of its annual results for 2013.

It said investment banking staff would receive two-thirds of the bonus pool - £1.57bn.

It said the average value of incentives paid to workers in the investment bank was £60,100, up from £54,500 in 2012.

The bonus increase was 10.2%, despite income at the section sliding 9% last year to £10.73bn.

In late Tuesday trading Barclays' share price was down 4%. Here is the latest price.

Last week Sky News City Editor Mark Kleinman revealed the bonus boost for staff, and the risk of it stoking further furore about banker pay.

The average bonus for non-investment bank staff was £7,100, up 4%.

The issue of bonuses and banks has become a hot political potato for both the Government and Labour.

Last month, opposition leader Ed Miliband urged a break-up of the existing structure and admission of "challenger banks".

And the Prime Minister told Sky News he wanted pay and bonus restraint at the taxpayer-backed Royal Bank of Scotland.

Barclays chief executive Antony Jenkins, who waived his multimillion pound bonus, said the bank is "in a better position than we have been for many years".

In an interview with Sky's Jeff Randall, Mr Jenkins defended the remuneration packages, despite admitted profits were flat once restructuring costs were stripped out.

Mr Jenkins earlier confirmed that 7,000 UK jobs would be cut this year.

He said about half of the affected staff had been informed of the decision.

On Monday the bank revealed its statutory and adjusted profit figures ahead of time, after a media report revealed the figures.

It said the figures were released early to provide "clarity" and avoid speculation.

It was down 26% on the £7bn figure for 2012, below analysts' expectations.

The statutory pre-tax profit was revealed as £2.9bn for last year, up from £246m in 2012.

Barclays has been hit by scandal in recent years.

It has been trying to repair its reputation following its role in the Libor interest rate-rigging scandal of 2012.

It is also among companies under investigation for possible manipulation of foreign exchange trading.

The bank said that in 2013 the investment bank was hit with £331m in litigation and regulatory penalties.

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