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Barclays' release of loan loss reserves sees soaring 2021 profits
Barclays’ annual results for 2021 show a pre-tax profit of £8.4bn, which is almost triple the £3.1bn reported in their 2020 results
Senior Journalist, covering the Credit Strategy and FSE News brands.
Senior Journalist, covering the Credit Strategy and FSE News brands.
Net income increased from £220m in 2020 to £1.1bn in 2021. Barclays said analysts had predicted it to be £643m.
Revenue rose 4.4% to £5.2bn, which was higher than analysts’ predicted £5.1bn. It was fuelled by a recovery in consumer spending in its retail bank and international credit cards business.
But Barclays’ strong performance is largely due to net credit impairment release of £0.7bn (against £4.8bn charge for loan provisions in 2020).
The net release included a reversal of £1.3bn in non-default charges. That compared with £492m in impairments in 2020.
C.S Venkatakrishnan, group chief executive of Barclays, said: "Our 2021 performance has enabled us meaningully to increase returns to our shareholders, with £2.5bn of excess capital returned via a total dividend of 6.0 pence per share".
For Premium Members, there is an in-depth analysis of the full year results here.
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