Barclays lined up for record £11bn profit

The profits bonanza – almost double the level achieved in 2008 – is expected to generate a reported pay and bonus pot of 4.5bn for last year.

The sale of Barclays' fund management business BGI and a stellar performance from the BarCap investment banking business should be the main contributors to profits.

But after public outrage on pay following the widespread taxpayer support to the financial system, Barclays is likely to say it is cutting its share of revenues paid out to its lowest level for 10 years.

This would follow the example of United States banks such as Goldman Sachs, which slashed pay as a share of revenues despite a near 50 per cent jump in pay and bonuses for 2009. It also capped the pay and bonuses of 100 UK-based partners at 1m in an effort to show restraint.

Although Barclays has not taken taxpayer cash to rebuild its finances, raising funds from the Middle East instead, it has indirectly benefited from taxpayer support to the struggling sector.

It has emerged as one of the winners from the credit crunch and financial crisis after its acquisition of the US arm of failed investment bank Lehman Brothers, which will contribute a full year of trading to the results.

Chief executive John Varley last week told MPs banks had lost the trust of the public, but added that Barclays had lent far more than the 11bn extra to UK households and businesses it pledged at its annual meeting last April.

The results will also be scanned for how much the bank has lent during the year, the level of bad debts racked up – expected to come in at around 9bn – and its view of the outlook for the UK over the coming year.