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Barclays reports profits up by 92 per cent to £11.6bn

Staff will receive a total of £2bn in bonuses, although two top executives decline their payouts.

The two top executives at Barclays are not taking their bonuses this year, as the banking giant reports a profit increase of 92 per cent.

The full-year profits increased to £11.6bn in 2009, which is nearly double the amount made in 2008. The figure was increased by the sale of BGI, its fund management arm, to the US firm BlackRock.

The bank, which did not receive any direct government help during the financial crisis, is now preparing to pay out bonuses of more than £2bn to its 23,000 investment bankers. It will pay £1.5bn in bonuses for this year, with a further £1.2bn to be paid over three years.

But chief executive John Varley and president Bob Diamond have turned down bonuses for the second consecutive year, amidst widespread public anger at huge pay-outs to bankers.

Announcing the decision, chairman Marcus Agius said: "Out of consideration of the continued impact of the economic downturn on many clients, customers and shareholders, combined with the fact that banks and bankers' pay remain matters of intense public interest and concern, both have advised the board that they wish to decline any such awards for the second successive year".

He said that all other members of executive team at Barclays would have their entire bonuses deferred and awarded over three years, and defended the pay policy at the bank, adding: "We must together safeguard the world from a recurrence of the events of the last three years."

Barclays said that it had loaned about £35bn to businesses and households in the UK in 2009, more than triple the £11bn it had promised to loan. The willingness for banks to lend is seen as vital to recovery.