Barclays cuts bonus pool after 2011 profit fall

London: Barclays revealed yesterday that it is slashing its bonus pool after earnings at its investment banking division fell sharply and dented overall profitability.

The bank said it was taking the action as it reported that its profit after taxes fell 15 per cent last year to £3 billion (Dh17.61 billion) from £3.56 billion the year before even though income rose 2.6 per cent to £33 billion. Much of the profit decline was due to a 32 per cent fall in pretax profit at the Barclays Capital investment banking unit to £2.97 billion.

Average payout

The bank said the average bonus for Barclays Capital employees will be £64,000, down 30 per cent from 2010. The total bonus pool was cut by 25 per cent and the average bonus per employee will be 21 per cent lower at £15,200.

"We need to balance remaining competitive with being responsive to the public mood," Chief Executive Bob Diamond told reporters.