Barclays PLC (ADR) (NYSE:BCS) Is In Pressure To Boost Its Returns


Dallas, Texas 05/09/2014 (FINANCIALSTRENDS) – Barclays PLC (ADR) (NYSE:BCS) is now under pressure to boost its returns, and will downsize 7,000 staff  at the investment bank, which is around a quarter of its total, &  signaled the company’s  effort to build an international  bank is now over. Antony Jenkins, the company’s CEO, said that this plan will bring its number of jobs to now be cut right across the company by 2016 to 19,000, including its 12,000 said the lender in February that  it would eliminate in 2014. BCS will NOW create a bank to dispose of the 115B pounds ($195B) of assets, including the European consumer -arm. The bank will now primarily target U.K. & U.S.

Focused approach

It will serve even fewer clients, while the Asian unit will now become more focused said Jenkins. Jenkins said on the conference call that that investment bank is very exposed to the volatility in fixed-income & currencies as well as commodities & the group is extra exposed to the volatility in their investment bank. Jenkins, is a consumer-banker by training, and has been under great investor pressure to cut its costs at its investment bank that was created by the predecessor- Robert Diamond. The unit had posted a 49% dip in its Q1 profit, as the revenue from FICC, which is conventionally the company’s its biggest income source, dwindled. 

Weak revenue

Jenkins said that the market also faces structural rather than the cyclical drop & that the investment-banking revenue will still be “weak for a certain period of time.” That particular revenue weakness has also prompted many other European firms like Switzerland’s UBS AG to scale the bank much sooner, and also be rewarded with the gains in stock prices. Barclays PLC is a global financial-services provider that is involved in retail banking, and credit cards, as well as wholesale banking & investment banking, and wealth management & investment management services.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.