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
Facebook Twitter LinkedIn

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

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

About Author

Erin Davis  is a senior banking analyst for Morningstar.