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Bloomberg News reports that Barclays CEO Jes Staley said he wouldn’t panic after one bad trading quarter. Now he’s had three.
The British bank plunged the most since the aftermath of the Brexit vote after it posted the worst markets performance in Staley’s two-year tenure. Revenue from trading stocks, bonds and currencies fell 31% in the third quarter, the lender said Thursday, trailing most Wall Street rivals that posted an average 15% decline.
The stock fell as much as 7.2% in London trading, wiping more than $2.6bn from the value of the company. Barclays has lost about 17% this year, making it the worst performer in the Bloomberg Europe 500 Banks and Financial Services Index.
The consecutive declines in earnings will make it harder for Staley to win over some investors skeptical of his strategy to build up the investment bank, which has long been Barclays’s least profitable unit. It also increases pressure on the CEO, who is under investigation by the U.K.’s Financial Conduct Authority for attempting to unmask a whistle-blower. Executives introduced new deadlines Thursday for improving profitability to mollify impatient investors.
The bank on Thursday reported a 30% slump in third-quarter trading revenue, twice as much as the decline at its U.S. peers. The drop drove a third straight quarter of revenue contraction at Europe’s largest investment bank and overshadowed a surge in net income.
“These aren’t the kind of numbers you want to keep seeing,” said Markus Riesselmann, an analyst at Independent Research in Frankfurt who recommends investors buy the shares. “The longer this goes on, the harder it gets to believe management’s hopes for a recovery. We cannot see another two or three quarters like this.”