Stock in Focus: Barclays

Barclays' new strategy will build upon its mid-2014 revamp, which increased the group's focus on U.K. retail and commercial banking, say equity analysts

Erin Davis 15 October, 2015 | 11:30AM
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Barclays (BARC) spent much of 2015 at a crossroads but its path may soon be much clearer. New chairman John McFarlane is clearly determined to improve profitability, though it's been unclear how he intends to do so. Investors may soon have the answer, when new CEO James "Jes" Staley takes over, following former CEO Antony Jenkins' dismissal in July.

Stanley will maintain a sizable investment bank at Barclays

Staley, unlike Jenkins, has a strong background in investment banking. We think his appointment signals that Barclays intends to maintain an important presence in investment banking, even as it rationalises. We think that this could be difficult – Barclays' investment bank is sub-scale compared with U.S. competitors, and shrinking. Ultimately, we're unconvinced that the bank will consistently hit it 12% return on equity target.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barclays PLC187.06 GBP0.00Rating

About Author

Erin Davis  is a senior banking analyst for Morningstar.