Barclays could cut 20% of investment bank

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'In the long-term they will have to do more. On a four or five year view, the investment bank could probably halve'.

Reuters reports that Barclays' CEO Antony Jenkins is facing a high-wire act to overhaul the firm's investment bank without undermining a division that contributes about half of group profits.

Jenkins, criticised by investors and politicians for raising bonuses this year despite a big fall in earnings, has embarked on the third review of the investment bank in as many years in response to pressure to cut costs and improve returns, which lag other parts of the business such as Barclaycard.

Analysts predict this might lead to a cut in the investment bank's size of up to 20%. This would equate to about 5,000 jobs going out of 26,000 and could strip out about 900 million pounds in annual compensation costs.

'The expectation is for something like a 10 to 20% cut (in size)', Chintan Joshi, analyst at Nomura, said.

'In the long-term they will have to do more. On a four or five year view, the investment bank could probably halve'.

Hit the link below to access the complete Reuters article:

Barclays' boss treads fine line in investment bank review

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