Company Of The Week: Barclays
Sunday 21 February 1999
Barclays increased lending to individuals and raised loans to and fees from corporations. This helped the bank recover from a tumultuous year, which culminated in the resignation of chief executive Martin Taylor. Investors expect Barclays' new chief executive, Michael O'Neill, a former BankAmerica Corp executive, to reduce costs in the next three years.
"These numbers demonstrate that commercial banks like Barclays have a very good franchise. They can absorb the impact of new entrants and protect their profitability," said Nick Collier, an analyst at Morgan Stanley Dean Witter.
Barclays shares rose 11 per cent to a six-month high. Barclays chairman- designate Sir Peter Middleton, who will succeed Andrew Buxton as chairman in April, said Barclays Capital is not for sale and the investment bank could earn a 1999 operating profit of about pounds 265m.
"We're going to run it as a low-risk business, not nearly as risky as lending money," said Sir Peter, adding that the investment banking division has quit risky businesses such as trading securities for its own account after being forced to set aside pounds 250m to cover Russian losses.
He said the bank's costs will be stable this year and will show big reductions in the next three years. In November 250, or 5.6 per cent, of the investment banking unit's staff were fired, and Barclays said it will reduce costs in its credit card business by 15 per cent over three years.
"The results showed that the recession is unlikely to be severe," said Charles Maisey, director of Quilter & Company. "Whereas last autumn everybody expected the worst, it now doesn't look so bad."
- 1 Expert urges cat lovers to own just one animal each
- 2 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 3 The Simpsons death: Creator Al Jean would 'kill himself' before character like Homer or Lisa
- 4 British man raped while urinating in bushes at Oktoberfest beer festival in Germany
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Expert urges cat lovers to own just one animal each
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
British man raped while urinating in bushes at Oktoberfest beer festival in Germany
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
'Women, walk wherever you want' posters taken down in Stamford Hill following 'unacceptable' signs separating men and women
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...