Barclays posts £11.6bn pre-tax profit

Barclays Group has reported an annual pre-tax profit of £11.6bn, an increase of 92% on the previous year’s results.

For the year to December 31 Barclays advanced a total of £35bn in gross new lending to UK households and businesses, following a pledge to lend an additional £11bn to the UK economy during 2009.

Gross new mortgage lending was £14.2bn during 2009, down from £22.9bn in 2008, and net new mortgage lending was £5.7bn.

The average LTV ratio of the mortgage book was 43%, up from 40% in 2008.

The average LTV of new mortgage lending was 48%, reamining flat from 47% the previous year.

As at December 31 Barclays lay claim to 834,000 mortgage accounts compared to 816,000 in 2008.

Mortgage balances went from £82.3bn to £87.9bn, giving Barclays the same 7% total market share that it had in 2008.

Redemptions dropped to £8.5bn from £10.4bn..

For Barclays’ UK retail banking division overall pre-tax profit fell 55% to £612m.

Total loans and advances to customers increased £4.7bn to £99.1bn, while impairment charges increased 55% to £936m.

Last October Barclays agreed to acquire Standard Life Bank Plc from Standard Life Plc, adding to Barclays’ UK mortgage and savings book.

This acquisition completed in January.

John Varley, chief executive of Barclays, says: “Our record income performance produced a sharp increase in underlying profitability in 2009.

“We have strengthened our financial position considerably over the year in the areas of capital, liquidity and leverage and are well positioned to manage further changes that may be required of us by our regulators.

“I thank our customers and clients for their trust in us, and our employees for their commitment and stamina in a tough and, at times, hostile environment.”