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Barclays Unveils New Divisional Structure, 2023 Financial Results; Shares Rise

Tom Burroughes

27 March 2024

UK-listed , which today announced 2023 financial results, also unveiled a management structure shakeup and new operating divisions. 

The lender said it will now have five operating divisions: Barclays UK; Barclays UK Corporate Bank; Barclays Private Bank and Wealth Management; Barclays Investment Bank; and Barclays US Consumer Bank.

For almost a decade, the UK bank hasn’t disclosed the financial results – such as its assets under management – at the wealth and investment division. In its statement today, however, Barclays said its segmental reporting will “reflect these five operating divisions, in addition to head office, from the first quarter of 2024.”

The divisions will be led by the following: Vim Maru has been appointed CEO of Barclays UK; Matt Hammerstein has been appointed CEO of Barclays UK Corporate Bank. In addition to his leadership of UK Corporate Bank, Hammerstein will replace Sasha Wiggins as the head of public policy and corporate responsibility; Sasha Wiggins is appointed CEO of Barclays Private Bank & Wealth Management; and Denny Nealon will continue as CEO of Barclays US Consumer Bank and Barclays Bank Delaware.

The Investment Bank operating division will be co-led as follows (also subject to regulatory approval in respect of new appointments, as appropriate): Adeel Khan has been appointed sole head of global markets; Cathal Deasy and Taylor Wright will continue as co-heads of banking; and Stephen Dainton has been appointed president of Barclays Bank PLC and head of investment bank management.

Each of the divisional and business heads above will be members of Barclays’ group executive committee, and report to the group chief executive, C S Venkatakrishnan. Paul Compton will step back from his role as the global head of the CIB (corporate and investment bank) and president of Barclays Bank PLC and will become the chairman of investment Banking, also reporting to the group CEO.

Barclays logged a pre-tax profit of £6.557 billion ($8.25 billion) in 2023, falling from £7.012 billion in 2022; attributable profit was £4.274 billion, down 15 per cent on a year before. Total income rose 2 per cent to £25.378 billion; total operating costs rose to £16.714 billion, rising 12 per cent year-on-year; total operating expenses rose to £16.931 billion from £16.73 billion. The bank’s cost/income ratio held steady at 67 per cent. 

Barclays' strategy includes cutting £2 billion pounds of costs, and returning £10 billion to shareholders. Shares rose on the results, with prices up as much as 7 per cent at one point during the morning.

In other figures, return on average tangible shareholders’ equity dipped to 9 per cent, down from 10.4 per cent. Last year, Barclays announced £1.75 billion of share buybacks, up from £1 billion in 2022. At the end of 2023, Barclays had a Common Equity Tier 1 capital ratio – a bank’s “shock absorber” – of 13.8 per cent, down from 14 per cent in 2022. 

Last year, Barclays combined the private bank and Barclays UK wealth business: on 1 May 2023, WM&I was transferred, creating a combined private bank and wealth management business. “The combination seeks to improve customer and client experience and create business synergies,” the lender said. The business transferred includes about £28 billion of invested assets, it said.

"In 2023 Barclays delivered solid performance against a mixed macroeconomic backdrop, meeting its financial targets. Our new three-year plan…is designed to further improve Barclays' operational and financial performance, driving higher returns, and predictable, attractive shareholder distributions,” Venkatakrishnan said.

Among other details, Barclays said its group net interest income rose 20 per cent in 2023 to £12.7 billion.