Barclays profits in Ireland declined last year due to €3.4 million pension charge

Profits at the Irish arm of UK lender Barclays Bank fell last year by more than 2 per cent due to a €3.4 million pension charge relating to a former subsidiary.

Accounts just filed for Barclays Bank Ireland Plc show that its after-tax profit declined to €24.4 million in 2016 from just more than €25 million in the previous year.

Its total operating income declined marginally to just under €47.4 million while its general and administrative expenses rose by less than 1 per cent to €17 million.

The €3.4 million provision related to a “constructive obligation” that Barclays said it had to make a payment to the Barclays Bank Irish Retirement & Life Assurance scheme.

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This arose from the disposal of Barclays’ assurance and insurance businesses in Dublin to Monument Re.

Separately, customer deposits increased by 16 per cent to €2.4 billion while customer loan drawdowns rose by 53 per cent to €1.5 billion.

Its net interest income was 13 per cent lower at €27.9 million on the back of continued downward pressure on interest rates.

The bank closed the year with a healthy common equity tier one ratio of 15.4 per cent.

Payroll costs

Barclays employed an average 102 staff during the year, down from 108 in 2015. Total payroll costs reduced by almost 1 per cent to €13.05 million. Directors’ remuneration rose to €1.1 million from €871,000 in 2015 while fees paid to non-executive directors increased by 8 per cent to €170,000.

No dividend was paid to its UK parent company.

Commenting on the results, a spokesman for Barclays said: “2016 was another very positive year for Barclays Bank Ireland as it continues to pursue opportunities to grow the business through a strategy, which plays on its core strengths in corporate banking and wealth and investment management.”

He said strong lending and further expansion of the asset base in the wealth, and investment management division resulted in a 25 per cent increase in income from fees and commission, and trading and foreign exchange.

In terms of major transactions during the year, Barclays was the sole issuing bank on a €100 million trade finance facility for ESB, handled the first live trade finance deal globally using blockchain for Ornua, and was joint book runner on a €500 million senior secured notes issuance by Eir.

Barclays' Irish business is set to get a new chief executive in the near future with Sasha Wiggins due to leave to become the bank's head of the east and south east for UK corporate banking.