Barclays profits decline by 6%

Barclays Bank today reported pre-tax profits of £3.2bn (€4.8bn) for the last year - a 6% decline from 2001, due to bad loans and flat revenues.

Britain’s number three bank said a combination of closed life assurance funds and a 29% increase in bad debt provisions – including £132m (€198m) for its South American corporate banking division – converted what would have been a 3% boost to operating profit into a 4% decline.

Chief executive Matthew Barrett said: “Barclays delivered a resilient performance in 2002, reflecting aggressive action to mitigate the impact of a rapidly changing external environment.”