Barclays, Britain's third biggest bank, raised its 2007 write-down on the value of risky assets to £1.6 billion sterling but said profits were broadly in line with analysts' expectations.
Barclays today reported a pre-tax profit of £7.08 billion for 2007, down from £7.14 billion in 2006 but just ahead of an average forecast of £7.05 billion from analysts.
Underlying profits were up 3%, excluding the sale of businesses that boosted 2006 earnings.
The bank said it benefited from its diversity and had 'handled well the stress test of market turbulence in the second half of 2007'.
Profits at its investment bank arm Barclays Capital rose 5% on the year to £2.34 billion.
Losses arising from credit market turbulence were £1.64 billion, net of gains from the valuation of issued notes of £658m, it said. The bank had previously announced a £1.3 billion net write-down on assets linked to US sub-prime mortgages, which had included £400m in gains on valuation of notes.
