Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Barclays shares power ahead on sweeping bonus and job cuts

Barclays shares power ahead on sweeping bonus and job cuts

Barclays shares have powered ahead after the bank said it would cut at least 3,700 jobs as part of Antony Jenkins' drive for change.

At 10am, shares in the bank traded at 312.p, a far cry from their 139p price at the peak of the Libor furore.

Following a strategic review, Barclays said it would slash its headcount and cut costs by £1.7 billion.

Some 1,800 posts will go in the bank's corporate and investment bank division and 1,900 from its Europe retail and business banking arm.

The reductions are expected to result in a restructuring charge of close to £500 million, and elsewhere, more money would be saved and its critics appeased by a 'significant' decrease in Barclays' bonus pot.

For 2012 the average bonus per employee was down 13% year on year to £13,300 and within its investment bank the typical bonus award was cut by17% to £54,100.

Jenkins (pictured), who took over as chief executive following Bob Diamond's departure at the height of the Libor scandal, said he wanted to 'set a new course' for the bank, prompting him to spearhead a drive for change.

'Barclays is changing. We intend to change what Barclays does and how we do it and have set out clear commitments against which our progress can be measured,' he said.

Barclays unveiled news of the job cuts in a statement about its strategic review, previously announced by Jenkins, and issued it this morning to coincide with the bank's final results.

2012 has undeniably been a difficult year for Barclays, involving a probe by the Financial Services Authority (FSA) into its 2008 fund raising and loans to Qatar, the Libor scandal and criticism over its corporate and bonus culture more broadly.

But despite these challenges, Barclays' adjusted pre-tax profits for 2012 were up 26% on 2011 to £7.1 billion, with corporate and investment banking profits rising 46% and wealth management profits jumping 52%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Citywire 10k: video highlights

Citywire 10k: video highlights

Citywire held its sixth annual charity run last week, which hosted over 200 people and raised £14,000. Here are the video highlights.

1 Comment Play On the Road... in the South West

On the Road... in the South West

The On the Road team travelled to the corners of Devon and Cornwall to find out more about the wealth management scene in South West England, writes Ted Monroe.

Play BlackRock's Whitestone: why shorting pubs paid off

BlackRock's Whitestone: why shorting pubs paid off

Dan Whitestone, who manages the BlackRock Throgmorton Trust alongside Mike Prentis has benefited from shorting pubs.

Your Business: Cover Star Club

Profile: how to control your destiny in an age of regulation

Profile: how to control your destiny in an age of regulation

‘RDR was good news to us because it aligned our practices with the industry,’ says Courtiers boss Jamie Shepperd

Wealth Manager on Twitter