'I’d be surprised if they didn’t come back with a resizing of the investment bank again this year'.
Two and a half years into his tenure, Jenkins, a consumer banker by training, has pledged to focus on the most profitable businesses while seeking ways to dismantle the fixed income-dominated investment bank created by his predecessor, Bob Diamond. With the division lagging profit targets, he may have to deepen cuts under a 2014 plan to eliminate a quarter of jobs.
'The market will react to the investment bank; a poor fourth quarter won’t do the stock any favors', said John-Paul Crutchley, an analyst for UBS in London, who has a buy rating on the shares. 'I’d be surprised if they didn’t come back with a resizing of the investment bank again this year'.
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