Barclays Visualizes a Challenging 2020 as Investment Banks Gather
The Chief Executive Officer of Barclays, Jes Staley, gave warnings about the low-interest rates and Britain’s Brexit hitting the economy.
Moreover, it will be threatening for the banks to meet their targets next year. This is even if traders outperformed most of Wall Street in the third quarter.
On Friday, Staley said in a statement, “The prospect for next year is unquestionably more challenging now than it appeared a year ago, in particular given the uncertainty around the U.K. economy and the interest rate environment.”
Barclays connects with other British lenders such as Royal Bank of Scotland. The bank was the one who has accused the domestic economic environment of putting its targets in danger.
In another statement, Barclays said that the corporate and investment bank’s third-quarter total income soared 17% from the same period last year. This was when the revenue from fixed income and equities both progressed.
Meanwhile, according to news reports, Barclays has outdone its U.S. peers. Their trading income grew an average of 6.4.
Plans On Improving Barclays Equity
Barclays aims to lift the return on tangible equity. This is a vital measure of profitability, above 9% this year. In addition, it will then raise more than 10% in 2020.
Meanwhile, Staley didn’t redraw those targets. An analyst, Citigroup Inc., has said 7% is a more accurate goal in the near term.
To have any confidence in meeting the targets, the American-born CEO must uphold a tight grip on expenditures.
Staley repeated that Barclay’s strategies to lessen expenses beyond its previous guidance had a lower bound of 13.6 billion pounds ($17.5 billion).
The CIB unit’s profit of 2.62 billion pounds has surpassed the 2.42 billion-pound consensus analyst evaluation.
According to the bank’s first-half results, Barclays cast off about 3,000 jobs in the second quarter. Moreover, it has cut variable reimbursement by more than 20%.
Elsewhere, Staley’s brake on costs has originated at the expense of executive confusion.
This happened in a quarrel over bonus cuts. He expelled his handpicked head investment banker, Tim Throsby, and took direct command of the unit last spring.
