Barclays - It will be all about investment banking revenue and cost cutting

Barclays Canary Wharf

Antony Jenkins’s two-year report card is due tomorrow, and it’s shaping up to be a bleak read.

Bloomberg News reports that Barclays’ chief executive officer, who has seen shares slump 20% this year following scandals involving high-frequency trading and currency probes, may report that revenue at the investment bank dropped at least 20% in the second quarter from a year earlier, according to six analysts surveyed by Bloomberg News. That’s about double the average decline for its U.S. peers.

“It will be all about investment-banking revenue” and cost cutting, said Chirantan Barua, an analyst at Sanford C. Bernstein who rates the shares market perform. “A mix of well-known structural headwinds added to a deleveraging business would lead to investment-banking revenue being down 26% in the quarter.”

Jenkins, 53, will end his sophomore year with the bank embroiled in a U.S. lawsuit alleging it hid the presence of high-frequency traders in its dark pool, or private-trading platform, and negotiating a settlement with the U.K. over a currency-rigging probe. The scandals on both sides of the Atlantic are overshadowing his pledge to overhaul the bank’s culture after it was fined for rigging Libor.

To access the complete Bloomberg News article hit the link below

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