Diamond to succeed Varley as Barclays chief

Bob Diamond will succeed John Varley as chief executive of Barclays, the bank announced this morning.

Diamond, head of Barclays Capital, will take over from Varley at the bank’s annual general meeting next year. Diamond will move back to London from New York for the role.

Varley will become a senior advisor on regulatory matters to Diamond and to Barclays' board until 30 September 2011.

Barclays insiders told the Financial Times that the change in leadership would not result in a change of strategy at the bank as both Varley and Diamond believe in a ‘universal banking model, with an investment bank and retail bank under the same roof’.

Varley is believed to have told colleagues he plans to concentrate on charitable work and his non-executive directorships when he leaves.

He leaves the bank on a high, having survived the banking crisis without a government bail-out and overseen a return to profitability.

Diamond has been equally successful in his time at Barclays, building up the investment banking arm from nothing and masterminding the acquisition of Lehman Brothers’ US assets.

Diamond said: 'As a leading global universal bank, Barclays has the right model, the right strategy, and above all the right people to deliver for all our stakeholders.  We face the future with confidence.'

Jerry del Missier and Rich Ricci, will become co-chief executives of Barclays Capital.