Banking giant Barclays has seen annual profits almost halve after setting aside a mammoth £4.8billion for loan losses due to the pandemic.
The group reported a 48% plunge in underlying pre-tax profits, excluding litigation and conduct charges, to £3.2billion for 2020.
Statutory profits fell 30% to £3.1 billion.
Its results revealed another £492million set aside for expected borrower defaults due to the Covid-19 crisis in the final three months of the year, though this was down nearly a fifth on the previous quarter.
The bank said that costs related to the pandemic will remain high throughout 2021, but that it expects loan loss charges to be "materially below" last year's £4.8billion hit.
Despite losses, Barclays said it plans to reinstate dividend payouts, as well as a £1.6billion bonus pool for staff and £1.4million in annual bonuses and incentive shares for boss Jes Staley.
Staley will pick up £4million for the past year, the lender said.
It added that investment banking trading offset the impact on its retail arm, with its "best ever year" for markets and banking income helping keep the group in profit every quarter.
Staley said: "Given the strength of our business, we have decided the time is right to resume capital distributions.
"We have today announced a total payout equivalent to 5p per share, comprising a 1p 2020 full year dividend and the intention to initiate a share buyback of up to £700 million."
He added: "We expect that our resilient and diversified business model will deliver a meaningful improvement in returns in 2021."
