Pre-tax profit rose by 10% to 3.54 billion pounds ($4.94 billion) in 2017, but that missed analysts' averaged expectations of 4.7 billion pounds, which did not take into account the one-off tax-related writedown.
Attributable earnings swung to a GBP1.92 billion loss from a GBP1.62 billion profit in 2016. The results reflected positive operating jaws as operating expenses reduced, primarily reflecting lower non-core related costs.
Barclays has posted a £1,922 million attributable loss in its full year results, due to a £2.5 billion write down on its sale of Barclays Africa, £1.2 billion of conduct charges and a £0.9 billion tax charge relating to USA tax reform.
Excluding items, earnings per share was 16.2 pence.
Investors, however, were cheered by the news that the dividend payout to shareholders - which Barclays had cut by more than half two years ago - would go back up to 6.5p in 2018.
The bank said on Thursday that year-to-date trading income had improved thanks to increased market volatility.
In the fourth quarter, Barclays' corporate and investment bank sank to a quarterly loss of 252 million pounds in part and revenue fell 11%.
Profit increased to £1.747bn from £1.738bn at Barclays UK, as total credit impairment charges and other provisions fell 13%, more than offsetting the 2% decline in income despite a growing mortgage book. The sell down of our shareholding in Barclays Africa, closure of our Non-Core unit, the establishment of our Service Company, and the creation of our United Kingdom ring-fenced bank, mean that, in terms of size and structure, we are now the diversified Transatlantic Consumer and Wholesale bank we set out in our strategy in March 2016. Investec analysts reckon Barclays' tangible equity will be worth 278 pence per share in 2019, meaning a 9.4% return on tangible equity.