Barclays profits make amends

First-half profits at Barclays bank rose by nine per cent, more than compensating for an increase in bad debt charges.

12:08 05 August 2005

First-half profits at Barclays bank rose by nine per cent, more than compensating for an increase in bad debt charges.

Pre-tax profits at Britain's third largest bank rose to 2.69 billion in the six months to June 30th, from 2.49 billion at the same time last year.

Barclays' profit was buoyed by record results at its investment banking arm and strong growth from its international and commercial banking units.

However, bad debts at Barclaycard caused profits to dip 17 per cent to 379 million.

Credit card arrears caused a 20 per cent increase in charges and other provisions, which rose to 706 million for the period.

Chief executive John Varley said: "Our expectation looking forward is that risk will rise broadly in line with the size of the loan book as it has over the last 12 months."

Mr Varley predicts "tides of growth" to carry the financial services industry forward for the next ten years.

Barclays' bad debt report reflects the situation at all of Britain's top five banks.