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Barclays boosts bonus pool by 30% on strong profits, fueling tax calls

Created at 28 Jul · 7:21 AM1 source↑ Market-relevant
IN SHORT

Barclays increased its banker bonus pool by nearly 30% to £1.3 billion for the first half of the year, following a 31% rise in second-quarter pre-tax profits. The bank also announced a £1 billion share buy-back and £800 million in dividends, intensifying calls for a UK bank tax.

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Key Numbers

£1.3bnBarclays' first-half bonus pool
£1bnBarclays' share buy-back
£800mBarclays' dividends
31%Barclays' Q2 profit increase
17%Barclays' half-year profit increase
£6.1bnBarclays' half-year profits
£3.3bnBarclays' Q2 pre-tax profits

Who's Involved

Barclays
UK bank increasing bonus pool and profits
Andy Burnham
Proponent of UK bank tax for spending plans
Trades Union Congress (TUC)
Advocating for increased bank taxes
Paul Nowak
General Secretary of the TUC

↳ Why This Matters

The substantial increase in Barclays' bonus pool and profits, coupled with shareholder payouts, has intensified pressure on the UK government to implement a windfall tax on banks, potentially impacting the financial sector's profitability and government revenue.

Key facts

  • Barclays increased its bonus pool by nearly 30% to £1.3 billion for the first half of the year.
  • Second-quarter pre-tax profits rose 31% to £3.3 billion.
  • Half-year profits increased 17% to £6.1 billion.
  • The bank announced a £1 billion share buy-back and £800 million in dividends.
  • The Trades Union Congress called for an increase in the bank surcharge and taxes on banks.

Barclays has significantly increased its bonus pool for bankers by nearly 30%, allocating £1.3 billion for the first half of the year. This comes after the bank reported a substantial rise in second-quarter profits, with pre-tax earnings climbing 31% to £3.3 billion, contributing to half-year profits of £6.1 billion, up 17% year-on-year.

In addition to the increased bonus pool, Barclays announced new shareholder payouts, including a £1 billion share buy-back program and £800 million in dividends. These strong financial results have amplified calls from groups like the Trades Union Congress (TUC) for a tax raid on UK lenders.

The TUC argues that banks like Barclays are profiting immensely while individuals and businesses struggle with the cost of living crisis, exacerbated by high interest rates. TUC General Secretary Paul Nowak stated that banks can afford to pay more tax and urged the government to increase the bank surcharge to help lower energy bills.

Frequently asked questions

Barclays' bonus pool for the first half of the year was £1.3 billion, an increase of nearly 30% from the previous year.

Barclays' second-quarter pre-tax profits rose 31% to £3.3 billion, and half-year profits increased 17% to £6.1 billion.

Barclays announced a £1 billion share buy-back and £800 million in dividends.

The Trades Union Congress (TUC), led by General Secretary Paul Nowak, is calling for an increased bank surcharge and taxes on banks.

What Happens Next

01Barclays will make final pay decisions by the end of February next year.
02The TUC continues to advocate for increased bank taxes.

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How It Developed

Barclays increased its banker bonus pool by nearly 30% for the first half of the year.
The bank's second-quarter pre-tax profits rose 31% to £3.3 billion.
Half-year profits reached £6.1 billion, a 17% increase.
Barclays announced a £1 billion share buy-back and £800 million in dividends.
Calls for a UK bank tax intensified following the profit and bonus announcements.

Sources

T1
Barclays increases bonus pool by nearly 30% as calls grow for UK bank taxThe Guardian

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