Barclays makes £1.8bn in Q1

30th Apr 2010 07:02

A big surge in business at Barclays Capital and decline in impairments had profit at Barclays bank up 47% in the first quarter of 2010.Profit before tax from continuing operations leapt to £1.82bn from £1.24bn in the first three months of 2009. Investment banking arm, Barclays Capital, raked in £1.47bn, 62% more than the year before.Impairment dropped 35% to £1.51bn compared with £2.31bn a year ago and 19% less than the figure for the final quarter of 2009, largely due to a £563m reduction to £191m at BarCap.Meanwhile, total credit market writedowns shrank to £141m from £2.61bn in 2009.Barclays said trading so far in April has been "consistent with the trends over the first quarter".But the shares fell heavily as traders expressed disappointment at weaker retail profits. The global retail banking business suffered a 6% drop to £403m, while UK retail banking profit decreased if the £71m gain on the disposal of Standard Life Bank is excluded.Chief executive John Varley was happy though. "I am pleased with the strong growth in profits which we have delivered this quarter. Diversification of our business and risk, and good underlying performance, have combined to produce this result.""The improvement that we have seen in impairment reflects the signs of economic recovery now evident in many of the markets in which we operate."Varley will hope that today's numbers will calm placate shareholders opposed to big pay deals lined up for top executives over the next few years. President and head of investment banking Bob Diamond's wage deal could see the American pocket £20m over three years. Other chiefs are also in line for hefty payouts. The bank made a better than expected £11.64bn profit in 2009 thanks to a £6.33bn profit on the sale of Barclays Global Investors, a deal that earned Diamond £26m.Shareholders will also get a 1p a share dividend this time.