LONDON (Reuters) - Barclays Plc said it paid out 2.4 billion pounds ($3.9 billion) in incentive awards last year after raising bonuses in its investment bank by 13 percent despite a slump in profits in the business.
BARCLAYS (BARC.LO)said it increased its bonuses and other incentive awards to staff across the bank by 10 percent last year and paid out 1.57 billion pounds in bonuses across the investment bank, up from 1.39 billion in 2012.
That, coupled with a fall in income in the business, lifted its compensation to income ratio to 43.2 percent last year from 40 percent in 2012. The bank said it continues to target a compensation ratio in the "mid-30s".
Barclays had already released headline results showing its earnings dropped to 5.2 billion pounds ($8.5 billion) last year, down 32 percent from 2012, falling short of analysts' forecasts as investment bank revenue slumped in the fourth quarter.
Profits at the investment bank slumped 37 percent to 2.5 billion pounds, as income fell 9 percent on the year to 10.7 billion pounds largely due to a decrease in fixed income.
Barclays said it expects to improve its leverage ratio to at least 3.5 percent by the end of next year as it reduces the size of its balance sheet.
Its leverage ratio improved to just under 3 percent by the end of the year, from 2.2 percent at the end of June. The UK regulator forced Barclays to raise 6 billion pounds from investors in October to improve that leverage ratio.
The bank said it remained committed to paying out 40-50 percent of its adjusted earnings in dividends.
($1 = 0.6098 British pounds)
(Reporting by Steve Slater; Editing by Matt Scuffham)