Barclays may have to make deeper investment bank cuts

Axe In Wood

'I’d be surprised if they didn’t come back with a resizing of the investment bank again this year'.

Barclays' Antony Jenkins, in a push to revive earnings, has set his eyes on on the lender’s worst-performing unit: its investment bank.

Bloomberg News reports that the division will probably report on Tuesday that its fourth-quarter loss deepened from a year ago, according to analysts at Deutsche Bank.

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'.

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

Barclays CEO Set to Target Investment Bank in Profit Push

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