Money put aside for bad loans fell 30% against a year earlier, to £5.67bn.
Group performance-related pay was down 7% to £3.4bn compared with 2009, and down 12% at the bank's investment banking arm, Barclays Capital (Barcap).
The 2010 pre-tax profit figure refers to the bank's continuing operations. This time last year, Barclays reported profits of £11.6bn for 2009, a figure which was inflated by the sale of its BGI fund management arm to US firm BlackRock.
Underlying profits for 2010 rose by 11% to £5.46bn.
"Barclays has opened the bank reporting season in some style, exceeding analyst estimates despite a challenging 2010," said Richard Hunter at Hargreaves Lansdown.
"In all, the results are representative of something of a return to normality."
Shares in Barclays rose by almost 3% following the results announcement.
These figures are calculated on the basis that a business that it sold in 2009, the large investment management operation BGI, had never existed”
Total staff costs rose by 20% to £11.9bn, of which £3.5bn was paid in bonuses.Bonuses at Barcap totalled £2.6bn, while profits at the division almost doubled to £4.78bn on revenues of £13.6bn.
The bank said that, in line with new regulations, bonus payments would be deferred over three years and would not be paid unless the bank had sufficient capital in reserve.
"We are committed to demonstrating that we are both responsible in our compensation decisions and practices and that we take our regulatory obligations and UK government commitments seriously," said Bob Diamond, Barclay's chief executive.
He added that bonus payments had been directly influenced by Project Merlin, a deal agreed with the government last week. Last Updated at 15 Feb 2011, 11:37 GMT *Chart shows local time
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Under the terms of the deal, the UK's top banks agreed to curb bonuses, lend more to small and medium-sized businesses - about £190bn in total this year - and reveal some salary details of top earners.Barclays will not reveal how much it pays its top executives, including Mr Diamond, until the publication of its annual report, which it says should be released within the first two weeks of next month.
However, total pay, including salaries, pensions and bonuses for the 24,800 bankers working at Barcap was about £236,000 on average, up from £196,000 in 2009, said BBC business editor Robert Peston.
"Salaries went up very significantly - by 40% to 50% in some cases - to compensate for the pressure to bring down bonuses," he added.
Tax bill Total group revenues came in at £31.44bn.
New lending in the UK was almost unchanged at £36bn compared with £35bn in 2009, although this figure does not include the £7.5bn in loans arising from the acquisition of Standard Life Bank.
In the UK, the bank paid £2.8bn in tax, while globally it paid £6.1bn.
"I am proud of what we achieved in 2010, especially our profit growth and enhanced capital and liquidity positions," said Mr Diamond.
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