[R]12:00PM New York - Barclays Bank’s annual profit rose to £20.2 billion from £19.2 billion a year ago as strong results were posted in most of the divisions, notwithstanding losses of £1.6 billion from credit market turmoil.[/R]

Annual Earnings Review

Barclays Plc reported annual total net income, excluding claims, in the year ended December 31st grew 7% to £23 billion from £25.5 billion a year earlier.

In the fiscal year, net income rose to £20.2 billion from £19.5 billion reported in 2006. Earnings per share however slumped 4% to £68.9 from £71.9 in the year ago period.

Profit before tax fell 1% from £7.1 billion last year to £7 billion. Barclays also reported 10% growth in dividend from 31p last year to 34p

Business Segment Review

Barclaycard

Barclaycard profits rose 18% from £458 million pounds as there was strong growth recorded by Barclaycard International. Barclaycard US also made a profit for the first time this year.

There were reductions in the K Card extended credit balances as the Group strategically positioned the business to lower credit quality exposures. Continued investment in Barclaycard International ultimately increased operating profit by 12%

International Retail and Commercial Banking

International and Commercial Banking profits fell 23% to £935m from last year as profits a year ago reflected a £247 million realized from disposals and a £41 million post tax profit share from First Caribbean International Bank.

In addition, the declines were partly caused by the 12% average in the value of the rand.

International and Commercial Banking, excluding ABSA:

PBT for the division was at £246 million as income rose 28% after the bank tapped in emerging markets and Spain. During the year, the unit opened 324 new branches and 157 new sales centres and invested in a common technology platform and processes across the business.

International Retail & Commercial Banking-ABSA

Absa profits slumped 12% to £689 million as the average value of the rand declined 12%. The division’s profit before tax rose 23% in rand terms on the back of strong growth in retail banking, corporate banking.

Retail loans and advances jumped 22% and retail deposits soared 20%

Investment & Investment Management

Barclays Capital

PBT in the unit edged up 5% to £2.33 billion in the year from £2.21 billion a year ago. The results included net losses of £1.63 billion from the credit market turmoil.