British bank Barclays said today that 2004 profit rose 20 per cent, in line with market expectations, boosted by its booming investment banking business.
Pre tax profit for the year ended December 31st rose to a record £4.6 billion sterling ($8.6 billion) from £3.85 billion a year earlier, Britain's third-biggest bank by assets said in a statement.
Pre tax profit before goodwill at the Barclays Capital investment bank rose 25 per cent to £1.04 billion, but UK retail banking profit fell 1 per cent to £1.13 billion.
"The outlook for 2005 is good as a result of balance sheet growth and investments made in 2004," chief executive Mr John Varley said in the statement, adding that bad debts were set to rise this year from last year's low levels.
Costs rose 15 per cent to £8.35 billion , faster than revenue which was up 12 per cent. The bank said expenses would rise broadly in line with revenue this year.
Analysts had expected group pre tax profit of about £4.57 billion.
The bank said the 2004 dividend would rise 17 per cent to 24 pence. Barclays shares closed little changed at 594p on Wednesday. The stock has gained 15 per cent in the past year, making it the second-best performer of the UK's 10 listed banks.