Barclays Bank has reported profits before tax of £6.08bn ($9bn) for the full year of 2008, down 14% on its profits taken in 2007.
Chairman Marcus Agius said the bank had been "solidly profitable despite strong headwinds" experienced during the year.
The bank's charges on bad debt, including US sub-prime mortgages, almost doubled to £5.4bn.
Last month, the bank wrote an open letter to investors, forecasting profits of more than £5.3bn.
'Compensation' review
The letter was prompted by sharp falls in Barclays' share price on the back of worries over the bank's financial strength.
The bank also announced that it would not pay any bonuses to directors for 2008.
"For 2009 and beyond, we are reviewing our compensation policies and practices to ensure that they evolve appropriately," said chief executive John Varley.
Barclays' profits included £2.41bn of gains from acquisitions, mainly from its takeover of the North American operations of Lehman Brothers, the failed US bank.
Profits from retail banking were up 7%, from £1.28bn in 2007 to £1.37bn.
However, at the bank's commercial arm, profits were down by 7%, from £1.36bn to £1.27bn.
The bank said lending to both retail and commercial customers increased on the previous year.
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