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| Barclays defends its performance | Barclays defends its performance |
| (30 minutes later) | |
| Shares in Barclays have jumped by nearly 40% after the bank wrote an open letter to reassure investors of its continuing good health. | |
| In the joint letter, chairman Marcus Agius and chief executive John Varley said the bank would report a 2008 profit "well ahead" of market targets. | In the joint letter, chairman Marcus Agius and chief executive John Varley said the bank would report a 2008 profit "well ahead" of market targets. |
| They said annual profit would be higher than £5.3bn, despite £8bn of gross write-downs at its investment bank. | They said annual profit would be higher than £5.3bn, despite £8bn of gross write-downs at its investment bank. |
| Like most banks, Barclays has seen its shares fall heavily in recent months. | |
| We are well funded, and we are profitable Barclays chairman Marcus Aguis and chief executive John Varley href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23144/intraday.stm">Barclays share price class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/498/0/default.stm">UK bank share prices | |
| "In view of the events in the banking sector last week, we have decided to communicate now with employees, customers, clients and shareholders," said Mr Aguis and Mr Varley. | "In view of the events in the banking sector last week, we have decided to communicate now with employees, customers, clients and shareholders," said Mr Aguis and Mr Varley. |
| "These figures demonstrate that, although we have been heavily impacted by the credit crunch, our income generation was at a record level in 2008 and has enabled us to withstand this impact and still produce strong profits." | "These figures demonstrate that, although we have been heavily impacted by the credit crunch, our income generation was at a record level in 2008 and has enabled us to withstand this impact and still produce strong profits." |
| In morning trade, shares in Barclays were up 19.7 pence, or 38.5%, at 70.9p. | |
| 'Well funded' | 'Well funded' |
| The letter added that the bank's capital resources were "well in excess of regulatory requirements". | |
| "We are well funded and we are profitable," they said. | |
| They reiterated that Barclays would not be seeking any financial support from the government. | They reiterated that Barclays would not be seeking any financial support from the government. |
| In November last year, Barclays secured £7bn of private funds, mainly from Middle Eastern investors. | In November last year, Barclays secured £7bn of private funds, mainly from Middle Eastern investors. |
| Barclays will now be publishing its full-year results on 9 February. | Barclays will now be publishing its full-year results on 9 February. |
| It said its profits had been lifted by its £1bn purchase of core assets of US investment bank Lehman Brothers, which was announced in September. | It said its profits had been lifted by its £1bn purchase of core assets of US investment bank Lehman Brothers, which was announced in September. |
| Barclays bought Lehman's North American investment banking and trading unit, in addition to the firm's New York headquarters and two data centres. | Barclays bought Lehman's North American investment banking and trading unit, in addition to the firm's New York headquarters and two data centres. |
| Barclays added it had already made a "good start" to 2009. | Barclays added it had already made a "good start" to 2009. |