The banking group announced that 2005 pre-tax profit rose from Â£4.58 billion in 2004 to a record Â£5.28 billion last year.
Britain's third largest bank revealed that growth for the year was particularly strong in its international arm, though a 19 per cent fall in profits at Barclaycard to Â£687 million, caused largely by bad debt, affected its final accounts.
Barclays investment banking subsidiary Barclays Capital (BarCap) reported a 35 per cent increase in profits to Â£1.27 billion over 2006.
However, profit growth was slower for the company's UK banking division, rising eight per cent last year to Â£2.44 billion. The amount classified by Barclays as bad debt rose 44 per cent over 2005 to Â£1.57 billion.
Barclays chief executive, John Varley, said: "Barclays delivered strong and broadly based profit growth in 2005â¦ We made good progress in the UK, and are well positioned across the group for further growth in 2006."