This substantial increase coincides with a 24% rise in the bank’s annual pre-tax profits, reaching £8.1 billion. The profit surge was driven by a rebound in investment banking activity and stable interest rates, boosting income in both investment and UK retail divisions.

Mr Venkatakrishnan’s increased compensation reflects the vesting of long-term bonuses and a rise in Barclays’ share value. A new pay policy, to be voted on at the upcoming AGM, proposes a reduced salary but a potentially higher bonus, allowing him to earn up to £14.3m annually.

Barclays’ success has also benefited its bankers. A bonus pool of £1.9bn, up from £1.7bn, will be shared amongst top performers, and approximately 90,000 employees will receive £500 worth of shares each. Mr Venkatakrishnan stated this initiative aims to align employee interests with shareholder value.

Zoe Gillespie, investment manager at RBC Brewin Dolphin, said: “Barclays has delivered another strong set of results, with profits jumping by nearly a quarter to £8.1bn – slightly ahead of expectations.

“At the same time, revenues are on the rise – despite cuts to base interest rates – and costs are heading in the opposite direction. The bank is seeing the benefits of its divisional spread and a coherent and focussed long-term strategy, with the acquisition of Tesco Bank shoring up its retail offering in the UK and further acquisitions a possibility given the strength of its balance sheet.

“Barclays is in a strong position and looks likely to remain so for the foreseeable future, with the bank now beginning to deliver a reassuring level of consistency that it hadn’t necessarily been known for in the past.”

Despite the positive financial results, Barclays has allocated £90m to address the ongoing motor finance commission scandal. While the bank exited this market in 2019, analysts predict potential compensation costs of up to £442m. The bank is closely monitoring legal developments, including potential government intervention, which could impact the final payout.

Barclays is also navigating the complexities of evolving diversity, equity, and inclusion (DEI) policies. Despite some financial institutions scaling back their DEI efforts, Mr Venkatakrishnan reaffirmed Barclays’ “enduring and unwavering” commitment to inclusivity, emphasising the importance of diverse talent for business success.

The bank recently experienced a significant technology outage, disrupting digital services for two days. Mr Venkatakrishnan apologised to affected customers, pledging both assistance and compensation for any inconvenience caused. Following the announcement of the financial results and the outage, Barclays’ shares fell nearly 5% in early trading.