Barclays posts pre-tax profits of £3.54bn

Barclays (LSE: BARC.L - news) has posted a 10% rise in annual pre-tax profits to £3.54bn, up from £3.23bn in 2016.

This result was despite earnings at its investment bank plunging to £2.1bn, with Barclays blaming the 22% dive on "weak market conditions".

There was also a £901m hit from changes to US corporate tax laws made by Donald Trump in December.

The bank said it had set aside £1.2bn for litigation and conduct, including £700m for payment protection insurance, also known as PPI.

Chief (Taiwan OTC: 3345.TWO - news) executive Jes Staley described 2017 as a "year of considerable strategic progress".

He said: "We have already started to see some of the benefits of our work in 2017.

"Group profit before tax increased 10% year-on-year as a result of our team's focus on execution.

"Although we are only seven weeks into the first quarter, and it is too early to offer formal guidance, we are pleased with the start to the year, and in particular in the markets businesses in CIB (corporate investment banking)."

Barclays posted an attributed loss of £1.9bn for the year against a profit of £1.6bn in 2016 after taking a previously announced £1.2bn write-down from the sale of Barclays Africa Group .

The bank also said that uncertainty and increased market volatility following the UK's vote to leave the European Union was "likely to continue until the exact nature of the future trading relationship with the EU becomes clear".

Potential risks include increased likelihood of a recession, sparking lower growth, higher unemployment and falling house prices; changes to EU passporting rights; and more difficulty recruiting and retaining talented staff, the bank said.

Barclays bosses said after the results were posted that the bank would also take a £127m hit in its fourth quarter, largely related to the failure of Carillion (Frankfurt: 924047 - news) .

The outsourcing firm collapsed last month, leaving a number of British banks exposed due to unpaid loans.

Barclays shares were up 5.8% in early trading.