By Jonathan Davies

Barclays has reported a 21% fall in pre-tax profits in 2014, largely due to covering the costs of potential fines.

The bank reported pre-tax profits of £2.26bn for the year to 31 December 2014. It said that it comes as a result of increasing its provision to cover the costs of a probe into the manipulation of currency markets increased from £750m to £1.25bn.

Taking out such abnormal costs leaves the bank with a 12% rise in profits to £5.5bn.

Barclays said it set aside a further £200m for Payment Protection Insurance (PPI) claims in the final three months of the year, taking the 2014 total to £1.1bn.

After much has been made about the salaries and bonuses of the banks' top bosses, Barclays revealed that its chief executive Antony Jenkins was awarded a £1.1m bonus at the end of the year, taking his total pay for the year to £5.5m.

Overall, Barclays said it reduced its bonus pool by 22% to £1.86bn.