Barclays boss needs to demonstrate he’s getting control of costs

Barclays Canary Wharf

'There’s not much evidence costs are being cut quickly and aggressively enough'.

Two years into the job, Barclays Chief Executive Officer Antony Jenkins has won over analysts with pledges to cut costs and eliminate thousands of investment banking jobs. He’s yet to convince investors.

Bloomberg News reports that even though at least two out of three analysts have rated Barclays a buy since the start of the year, the shares have tumbled 16% since January, erasing about $9.7bn in market value.

The worst performing unit is the investment bank, which has a return-on-equity of 4.9%, less than half the bank’s 12% target and a third of its return from Barclaycard.

'Jenkins has to demonstrate he’s getting control of the costs and they can offer some decent returns with a smaller capital markets business - and hasn’t so far', said Colin McLean, founder and CEO of SVM Asset Management in Edinburgh, who oversees more than $800m in assets, including Barclays shares. 'There’s not much evidence costs are being cut quickly and aggressively enough'.

To access the complete Bloomberg News article hit the link below:

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