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Bankers' bonuses will come under the spotlight as Barclays unveils bumper half year profits.
Profits from the bank's investment banking arm are expected to give Barclays a lift with executives in line for pay and bonuses worth an average £250,000 for six months' work, it has been reported.
Barclays is tipped to report profits of around £3 billion for the first six months, but the bank is unlikely to have escaped the damage caused by the recession and financial crisis.
It is estimated by Centre for Economic and Business Research think tank that up to £4 billion will be paid out in bonuses this year, up from £3.3 billion the year before.
Global banking giant HSBC is also expected to reveal a rise in profits. Taxpayer-supported banks Lloyds Banking Group, Royal Bank of Scotland and nationalised bank Northern Rock will also reveal results this week.
Barclays, which shunned a taxpayer bailout in favour of its own fundraising moves, has already reaped the benefits from its acquisition of the investment banking division of collapsed Lehman Brothers.
Strong investment banking gains helped the bank to a 15% rise in pre-tax profits to £1.37 billion in the first three months of the year. The surplus helped it offset a 79% rise in bad debt charges to £2.3 billion due to credit write-downs and the deteriorating economic climate. Profits were also down "significantly" at its UK retail banking business, which includes the Woolwich.
While this trend is likely to continue, analysts believe resilient profits from the Barclays Capital investment arm will help the bank stay ahead of its rivals.
Barclays is the first of the UK's biggest banks to reveal the latest scars from the financial crisis. Along with HSBC, Barclays has managed to shore up its finances without Government assistance.
The bank instead turned to Middle East investors for funding and has also agreed the £8.2 billion sale of its Barclays Global Investors fund management division.
Barclays set to report £3bn profit - Yahoo! News UK
Profits from the bank's investment banking arm are expected to give Barclays a lift with executives in line for pay and bonuses worth an average £250,000 for six months' work, it has been reported.
Barclays is tipped to report profits of around £3 billion for the first six months, but the bank is unlikely to have escaped the damage caused by the recession and financial crisis.
It is estimated by Centre for Economic and Business Research think tank that up to £4 billion will be paid out in bonuses this year, up from £3.3 billion the year before.
Global banking giant HSBC is also expected to reveal a rise in profits. Taxpayer-supported banks Lloyds Banking Group, Royal Bank of Scotland and nationalised bank Northern Rock will also reveal results this week.
Barclays, which shunned a taxpayer bailout in favour of its own fundraising moves, has already reaped the benefits from its acquisition of the investment banking division of collapsed Lehman Brothers.
Strong investment banking gains helped the bank to a 15% rise in pre-tax profits to £1.37 billion in the first three months of the year. The surplus helped it offset a 79% rise in bad debt charges to £2.3 billion due to credit write-downs and the deteriorating economic climate. Profits were also down "significantly" at its UK retail banking business, which includes the Woolwich.
While this trend is likely to continue, analysts believe resilient profits from the Barclays Capital investment arm will help the bank stay ahead of its rivals.
Barclays is the first of the UK's biggest banks to reveal the latest scars from the financial crisis. Along with HSBC, Barclays has managed to shore up its finances without Government assistance.
The bank instead turned to Middle East investors for funding and has also agreed the £8.2 billion sale of its Barclays Global Investors fund management division.
Barclays set to report £3bn profit - Yahoo! News UK
