Barclays saw profits decline by 19 per cent in its latest financial year, largely driven by significant credit impairment charges.

In 2022 the British Bank recorded profits of just over £5 billion, down from £6.2 billion in the previous year.

The bank said that credit impairment charges had almost doubled to £1.2 billion during the 12-month period, compared to £650 million in 2021. Group profit without these charges would have increased nine per cent year-on-year to £8.2 billion.

Barclays attributed the hike in charges to “macroeconomic deterioration” and a gradual increase in delinquencies.

The UK lender was also impacted by a £165 million penalty issued by the SEC and CFTC for failing to comply with record-keeping obligations when business-related communications were made over unapproved messaging platforms.

Alongside this, it faced a loss of £600,000 for the over-issuance of securities, which included a penalty of £165 million.

Later in the year UK’s financial watchdog announced plans to hit Barclays with a £50 million fine after it failed to inform the market and its shareholders about £322 million worth of fees paid to certain Qatari investors.

Group chief executive C.S. Venkatakrishnan said that the bank had performed strongly in 2022 with overall income up 14 per cent. However, he warned that there could be headwinds over the coming year.

“We are cautious about global economic conditions, but continue to see growth opportunities across our businesses through 2023," said the chief executive.

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