But Barclays' needy debts are rising

The compact said lessening charges jumped 86% in the first half of the year from £2.45 billion in the identical interval of 2008 in spitefulness of signs of power somewhere else in the bank.

It came as loans to businesses and households struggling because of the downturn turned sour.

“We anticipate the repose of 2009 to be challenging with continuing recessions in numerous of the economies in which we are represented,” said chief chairman of the board John Varley.

Barclays Uk retail banking arm, which hindmost year made up a fourth of earnings, reported a 61% dip in profits to £268 million. Impairment charges in the UK rose from £288 million a year ago to £469 million. “Profits are down but it quiet recorded a profit,” he said. Varley said mortgage lending increased close by £6 billion in the first half as the numeral of mortgage accounts rose to 824,000.

The bank has attracted single million new savers in the over 12 months as customers squander clearly less safe banks.

Varley warned the retail bank desire remain behind beneath force as unemployment in the UK soars and businesses strive to pay back loans as the hindrance rumbles on.

Unemployment looks set down to hit three million next year, putting force on kith and family finances. Barclays said almost 1% of its loans to customers were at current in trouble, up from 0.65% a year ago.