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LONDON (Reuters) -Barclays reported its annual profit nearly trebled and returned 2.5 billion pounds to shareholders in 2021 via dividends and buybacks, as bad loan charges plunged and its investment bank continued its strong recent performance.
The British lender on Wednesday reported profit before tax for 2021 of 8.4 billion pounds ($11.42 billion), up from 3.1 illion pounds a year ago and above the average analysts’ forecast of 8.1 billion pounds.
Barclays (LON:BARC) said it would buy back 1 billion pounds of its own shares and increase its full-year dividend to 4 pence per share, resulting in a total payout for the year of 2.5 billion pounds.
In his first update to investors since taking over as Chief Executive following the shock exit of Jes Staley in November, C.S. Venkatakrishnan said he would continue his predecessor’s focus on expanding the investment bank.
Staley left after a dispute with British financial regulators over how he described his ties with convicted sex offender Jeffrey Epstein.
Venkatakrishnan, who is known inside the bank as Venkat and like Staley is a former employee of JPMorgan (NYSE:JPM), indicated after his elevation to the CEO role that the lender’s investment banking-focused strategy is “the right one”.
Venkat said that along with the investment bank, his other two priorities would be digitisation projects such as a ‘buy now, pay later’ consumer finance offering with Amazon (NASDAQ:AMZN) in Britain and Germany; and focusing on the transition to a low carbon economy.
Despite the improved performance, the lender warned that soaring inflation in its markets would impact its finances.
Barclays said its adjusted costs would be more than 12 billion pounds this year, partly as a result of higher pay for its bankers. The lender’s bonus pool for 2021 increased 23% to 1.9 billion pounds.
The bank confirmed that its long-standing chief financial officer Tushar Morzaria will retire from the lender, with his deputy Anna Cross set to take on the role from April.
($1 = 0.7357 pounds)
