Barclays restructures amid profits fall

Underlying annual profits for 2015 fell 2 per cent to £5.4bn, reports the BBC.

The bank said it would cut its dividend by more than half to 3p per share in 2016 and 2017.

Barclays also announced a further £1.45bn provision for PPI mis-selling.

It said it wanted to slim down into two, main core divisions – Barclays UK and Barclays Corporate & International.

The bank said it would “sell down” its 62.3 per cent stake in its Africa business in the next two to three years.

In early trading, Barclays shares fell 7 per cent.

Barclays said it would split the company into two units, Barclays UK and Barclays Corporate and International by 2019.

The UK’s big four banks are being forced to make these changes to comply with tougher new banking regulations, which are designed to prevent ordinary customers suffering from decisions made by investment bankers in the event of another credit crisis.

Barclays, like most of the world’s major banks, has been tainted by – and fined for – rigging prices in both foreign exchange and Libor interest rates.

Mr Staley said his main aim was to restore the bank’s reputation.

Laith Khalaf, senior analyst at Hargreaves Lansdown said the new boss was clearly taking a big broom to Barclays’ operations in a bid to dramatically simplify the group.

“When the dust has cleared, the bank should have two high quality financial services divisions, and the potential to offer investors a decent dividend, but it’s going to take some elbow grease to get there.”