The 'investment bank must do the heavy lifting'.
Bloomberg News reports that as Jes Staley prepares to take over as Barclays’ new CEO on Tuesday, the investment bank should brace for deeper cuts as revenue stagnates and the lender struggles to reverse its falling share price, according to Investec Plc.
The bank may cut $900m of costs from the investment bank between 2014 and 2017, about 11% of the total at Barclays’s least profitable division, Investec said in a note on Monday.
'We see delivery on costs as critical' and the 'investment bank must do the heavy lifting', Investec analyst Ian Gordon, who has a buy rating on the stock, said in a note. 'We continue to reject Chairman John McFarlane’s vision of a revenue-led recovery'.
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