HIGH Street bank Barclays has hailed strong results as pre-tax profits for last year rose nine per cent to £3.61bn.

The FTSE 100 company said its performance reflected the benefits of having a diversified business, although it added that charges for bad or doubtful debt had risen 35 per cent to £1.15bn during the period.

Chief executive Matthew Barrett said he was "cautiously optimistic" about prospects, adding: "We feel good about 2001 and are in good shape going into 2002."

Barclays' operating income rose 11 per cent to £11.36bn, and operating profit rose ten per cent to £4.13bn.

Mr Barrett outlined plans to expand Barclays outside the UK in the next ten years, while continuing to develop earnings aggressively in the home market.

The bank, which employs about 78,000 staff and has more than 2,000 branches in the UK, said its high street personal financial services division improved operating profits by 18 per cent to £423m.

The figure for the business banking arm rose five per cent to £1.15bn, while Barclaycard gained 20 per cent to £555m.

But Mr Barrett warned that competition was intensifying and if Barclays did not serve customers' needs they would go elsewhere.

Barclays' acquisition of the Woolwich resulted in a 38 per cent increase in mortgage lending in the second half of the year.

Shareholders will get a dividend of 66.5p, up 15 per cent on the previous year.