Jenkins set to cut bad products

Tim Wallace
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BARCLAYS could look to cut unprofitable business lines in its investment banking and other arms under a structural review planned by new boss Antony Jenkins.

The incoming chief executive has pledged to keep the investment bank intact and said he values the universal banking model.

But his background in commercial and retail banking means some analysts are concerned he could reduce the focus on the profitable investment banking unit.

Jenkins is launching a thorough internal review into each unit and product line in an effort to make the bank more efficient at a time when the increasing burden of regulation risks squeezing profits.

This could be a particular challenge as Jenkins told City A.M. he wants to implement potentially costly changes – like the ring-fencing of the retail and investment operations, and rising capital ratios – ahead of regulators’ targets.

The review will run in parallel with the Salz review into the behaviour and culture of staff at the bank, and will report in the first quarter of next year. Antony Salz’s review will report by the time of the annual general meeting in April.

It is not yet known who will replace Jenkins as head of retail and business banking, or whether Jerry del Missier will be replaced as chief operating officer, having resigned over the Libor scandal.

The COO post was resurrected by Bob Diamond earlier this year after standing vacant for several years, only for del Missier to resign within weeks.