Barclays sets pounds 2.5bn for IT

Barclays will invest pounds 2.5bn on information technology in the UK over the next five years, equal to almost pounds 10m a week, Andrew Buxton, chairman, said yesterday.

He said Barclays would spend on information technology to improve risk management, retail services and operational flexibility and to cut costs.

Technology offered 'huge opportunities' to provide greater value to customers at lower costs, However, it also posed a threat as it enabled new entrants to compete in the financial services market, by using increasingly effective delivery and distribution channels.

Mr Buxton was speaking in Kuwait, at an international conference on Gulf banking.

'I doubt whether any international bank can face the future with any confidence at all unless its information technology spending is relatively high,' he said. Barclays has already spent pounds 800m on technology around the world.

Mr Buxton also said the time had come to consider raising minimum capital ratios. Banks should keep high capital ratios and regulators might have set minimum capital requirements too low.

Barclays and TSB have denied press reports, however, that they were planning imminent buy-backs of shares to return a total of pounds 2bn of cash to shareholders.

Barclays has been reviewing its capital needs since the spring. In August it offered to buy back several hundred million dollars' worth of subordinated debt. A spokesman said further moves were possible, but reports were speculative.

A TSB spokesman said it had no immediate plans, although it has shareholder approval for a buy-back of up to 15 per cent, or nearly pounds 500m.

Both banks have core 'tier 1' capital-to-asset ratios well above the 4 per cent minimum.

Start your day with The Independent, sign up for daily news emails
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Digital Optimisation Executive - Marketing

£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...

Recruitment Genius: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Day In a Page

Sepp Blatter resignation: The beginning of Fifa's long road to reform?

Does Blatter's departure mean Fifa will automatically clean up its act?

Don't bet on it, says Tom Peck
Charles Kennedy: The baby of the House who grew into a Lib Dem giant

The baby of the House who grew into a Lib Dem giant

Charles Kennedy was consistently a man of the centre-left, dedicated to social justice, but was also a champion of liberty and an opponent of the nanny-state, says Baroness Williams
Syria civil war: The harrowing testament of a five-year-old victim of this endless conflict

The harrowing testament of a five-year-old victim of Syria's endless civil war

Sahar Qanbar lost her mother and brother as civilians and government soldiers fought side by side after being surrounded by brutal Islamist fighters. Robert Fisk visited her
The future of songwriting: How streaming is changing everything we know about making music

The future of songwriting

How streaming is changing everything we know about making music
William Shemin and Henry Johnson: Jewish and black soldiers receive World War I Medal of Honor amid claims of discrimination

Recognition at last

Jewish and black soldiers who fought in WWI finally receive medals after claims of discrimination
Beating obesity: The new pacemaker which helps over-eaters

Beating obesity

The new pacemaker which helps over-eaters
9 best women's festival waterproofs

Ready for rain: 9 best women's festival waterproofs

These are the macs to keep your denim dry and your hair frizz-free(ish)
On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific
In this the person to restore our trust in the banks?

In this the person to restore our trust in the banks?

Dame Colette Bowe - interview