Barclays Bank revenues drop 3%

Published:  13 Feb at 2 PM

As reported in the BBC, Barclays has announced a 3% drop in revenues to £5.9 billion for 2011, affected by a downturn in its investment bank division. The bank also reported that the bonus pool in the investment banking arm was down by 32% to £1.5 billion last year.

As a news conference, CEO Bob Diamond declined to talk about his own bonus. But senior executives expect to see bonuses cut by about 48%, which Robert Peston (BBC business editor) says would still award Mr Diamond about £3 million.

Barclays' total bonus pool for 2012 will now be around £2.15 billion, down by 25%, as cash bonuses are now capped at £65,000. The median bonus payout for an employee at Barclay dropped by 21% year-on-year down to £15,200.

Mr Diamond avoided questions about his own bonus at a press conference, saying that the news conference was about results today. He also declined to discuss critical remarks of the Association of British Insurers, who lobbies for many of the UK's most powerful investors--the pension funders.

Robert Talbut, who is chairman of the investment committee of ABI, said that while overall bonus pays at Barclays have been cut, the reductions for Barclays Capital is only in accordance with the drop in revenue before tax at BarCap.