The Banking and Strategy Initiative

Chillin' out till it needs to be funded

European Bank Results Season: A summary year for Bob Diamond’s Barclays

The results announcements do not give Barclays plans away but a comparison between the Retail Banking and Barclay Capital Group Income slides make it so very clear. The Barclays card franchise is back with a growth of 50%+ and UK retail is also growing fine at 60% on the topline the growth from $3.3 bln to almost $5 bln in Profit before tax surviving the $1.65 bln odd in PPI fines it had to pay this year. Barclays Capital on the other hand has lost a quarter of its top line to barely $15 bln while losing a third on the Profits ( PBT) at $4.5 bln from more than $6.6 bln.

As we saw it, Barclays Capital was the way to glory, but despite good handling of the challenges dealmaking did fade this calendar year as expected, ending u p with the bonus pool for the group losing 25% and the investment bank 32% Still group average per employee at $22.500k underscores the dealmakers’ and the traders’ better off $96.000k bonus

The bonus cap in the U*K has whittled to $3000 for cash comp according to the Independent. Barclays capped cash at $97.500k and the limit is much lower than at other investment banks. The graph below shows quarterly BarCap perfromance. Watch that FICC performance closely, it isn’t done yet, the bank taking $370 m in Greek debt losses ( Europe)

 

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