Tuesday 21 August 2018

Barclays boss says bank 'running free'

Jes Staley, Chief Executive Officer of Barclays. Photo: Pier Marco Tacca/Getty Images
Jes Staley, Chief Executive Officer of Barclays. Photo: Pier Marco Tacca/Getty Images

Donal Griffin

Chalk up a strong quarter for Jes Staley, but a murky outlook means he may not be out of the woods with Barclays's activist investor.

Second-quarter trading revenue at the British bank's securities unit, the centrepiece of its chief executive officer's strategy, grew 11pc, compared with the average 9.5pc pace achieved by US banks. That prompted Mr Staley to say Barclays is "running free" after many quarters of being hobbled by legacy misconduct charges.

Still, Barclays warned of low market volatility in July, which could dampen investment-bank revenues, and "some margin pressure" at its UK businesses. Revenue at the lender has sputtered since Mr Staley took the helm in 2015, adding to pressure from regulatory probes and activist investor Edward Bramson, who reportedly wants to alter the bank's plans.

The second-quarter results are "fine," but Barclays' guidance for its expected performance for the rest of the year is "very poor," said Ed Firth, an analyst in London with Keefe, Bruyette and Woods with a sell rating on its shares. (Bloomberg)

Irish Independent

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