Barclays Bank yesterday reported annual profits of a record £7.14bn. This was a huge increase of 35% surge in pre-tax profits since 2006, taking them to a record.
The very high profits were made despite writing off over £2bn in bad debt charges. These bad debt charges mostly came from it credit card division – Barclaycard. Barclaycard said it was not over its worst period of writing off bad debt.
However with the huge rise in profits consumer groups have argued that Barclays is profiteering. They say there is no reason to justify its very high bank charges. Furthermore there is no good reason for consumers having to pay for current accounts and business accounts.
Chief executive John Varley said Barclyas had delivered an “outstanding performance” in its Barclays Capital investment banking operation and its fund management arm Barclays Global Investors.