(Bloomberg) -- The boss of Barclays Plc expects bonuses at its corporate and investment bank to be higher this year, with the unit’s dealmakers the latest to impress after pulling in almost a billion pounds in fees in a record third quarter. 

“Variable compensation, or the bonus pool, that’s very much tied to the performance of the corporate and the investment bank and I think you’ll see variable compensation higher this year given that they’ve generated record profits,” Chief Executive Officer Jes Staley said on Bloomberg Television.

Last year, Barclays granted annual bonuses worth 1.09 billion pounds ($1.54 billion) across the whole bank, roughly the same as in 2019 and 2018, according to filings.

Investment banks worldwide are boosting pay as the pandemic spurs client demand, drives up profit and heightens the danger of staff being poached by competitors. JPMorgan Chase & Co. said last week its compensation costs will probably increase. 

Staley also said the growing likelihood of inflation in the U.K. means salaries across the wider group could rise.

“It is quite likely you do get some inflation and we’ll have to have that translated into how we pay wages,” Staley said. “We have annual discussions with our workers and I think you’ll see compensation be aligned with inflation.”

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