Barclays, Britain's third-largest bank, today announced a rise in annual profits of 20%, boosted by a drop in bad debt levels and strong economic growth.
The bank's pre-tax profit rose to £4.60 billion last year, up from £3.84 billion in 2003, at the higher end of analysts' expectations. Operating profit stood at £3.50 billion in the year ending 2004, up from £3.81 billion the previous year.
'2004 was a year in which the Group continued to make very good progress,' chief executive Matthew Barrett said in a statement. The bank was boosted by strong economic growth, 'with the global economy expanding by around 5% and the British economy growing at more than 3%,' he added.
Barclays said its operating income increased 12% to £13.95 billion during the year to December 2004 with bad or doubtful debts down 20% to £1.09 billion on a year earlier.
The company - which has over 2,000 branches and 60,000 employees in Britain - also gave a positive outlook for 2005.
'A combination of good returns from prior investment and the continued strong pace of investment during 2004 means that we are in good shape to deliver profitable growth in the future,' said group chief executive John Varley.
'The outlook for 2005 is good as a result of balance sheet growth and investments made in 2004. We are targeting double digit income growth.'
