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.
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