CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Barclays investment bank chief quits as CEO Jes Staley seizes more control

The head of Barclays investment bank has resigned, with CEO Jes Staley bringing the unit under his control with the ambition to scale the business despite activist investor pressure to scale it back.

Tim Thorsby has quit as head of Barclays Corporate and Investment Bank (CIB), amid a swathe of leadership changes at the lender aimed at capitalising on its strengths as a diversified consumer and wholesale bank.

Moving forward, the CIB will be managed as three ‘distinct, though connected, units’, all of which will report directly to the Group CEO Jes Staley.

‘I believe we need a more granular execution focus on the businesses within the CIB if we are to drive those returns, in a reasonable timeframe, towards and above that cost of capital,’ Staley said.

‘And so I have decided to change the leadership model for that business, delayering the organisation in order to bring oversight and accountability for the performance of the investment bank much closer to me as group chief executive,’ he added.

Staley defies activist investor to scale back investment bank

Activist investor Ed Bramson, whose investment vehicle Sherborne Investors controls a 5.5% stake in Barclays, has been trying to build shareholder support to scale back the CIB unit.

But Staley has continued to fight back against the idea and has arguably proven Bramson wrong, with the unit recording better-than-expected results in 2018, producing a return on equity of just over 7%.

‘Competing in the top tier of global corporate and investment banking, enabled by our size, and commitment across asset classes, is important for Barclays’ future returns,’ Staley said. ‘And we demonstrably do compete in that top tier.’

Barclays CIB outperforms rivals

In the third quarter of last year, revenues at the banks’ equities and fixed income trading units rose by 35% and 10% year-on-year, outpacing most of its rivals.

However, the lender was unable to sustain that momentum in its fourth and final quarter of the year, with revenues at its fixed income trading operation sliding 6% year-on-year to £570 million.

But despite the slide, Barclays CIB still fared better than its European rivals, who all posted double-digit declines in 2018.

The leadership changes announced by the bank on Wednesday have been welcomed by investors, delivering another blow to Bramson's shake up plan, with Barclays share price up 1.46% to 155p.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Be ready to act on ECB opportunities

Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.