Barclays hopes £2bn profit will quell Diamond pay row

City analysts are forecasting that profits will have come roaring back in the first quarter from £1.66bn in 2011 to little over £2bn this year on the back of a resurgence in earnings from its investment banking arm, as well as a continued increase in retail banking profits reports The Telegraph.

The bank will be hoping the announcement of healthy first quarter earnings on Thursday will help calm investors ahead of what is expected to be a fiery annual general meeting a day later, where approximately 15pc of shareholders are expected to vote against its remuneration report and the re-election of Alison Carnwath as chairman of its remuneration committee.

It will also face anger over the bill associated with a flood of customer complaints over the mi-selling of payment protection insurance, which is understood to have run to more than £100m.

Last week, Barclays took the surprise step of offering new performance hurdles on Mr Diamond bonus, however many of the bank’s investors remain unhappy that it has not addressed their concerns over a controversial £5.75m “tax equalisation” payment made by the lender to settle a tax bill incurred by the banker when he relocated from New York to London to take charge at the start of last year.

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