Barclays post £11.6 billion profit

Barclay’s bank (LON:BARC) has posted record annual profits of £11.6 billion for 2009. And if that wasn’t good news two of the most senior bosses have turned down bonuses for the second year in a row.

The pre-tax profits were 92 per cent ahead of 2008 figures. Probably more relevant is its £9.6bn of retained earnings. It seems that Barclay’s has become a much safer bank over the past year. Barclay’s gross lending and assets are now equivalent to 20 times its equity capital, in other words the bank is a lot less likely to go bankrupt than last year.

The profits were buoyed by its investment banking arm and the sale of part of the business last year to raise substantial funds. In the UK, Barclay’s made a £612m profit from retail banking and £749m from commercial banking. And to cap of a great feel good factor about banking, Chief Executive John Varley and President of the bank Bob Diamond have sacrificed payouts, because of the increased public interest into bank bonuses.

To read more on this story go to bbc.co.uk. What are your thoughts on the bosses who turned down their bonuses? Let us know your thoughts.