Barclays announced a 33% drop in pre-tax profits to £5.2bn for 2013. The drop reflects various legal provisions, a restructuring programme that will involve the loss of 12,000 jobs and a 37% decline in investment banking profits. Barclays' peers have also struggled.
Despite the poor results, the bonus pool grew by 10% to £2.4bn. The results followed the news that more than 2,000 customers had had their personal details stolen.
What the commentators said
The latest customer data theft could also prove pricey. Throw in this week's leak that forced the bank to release results early, and Barclays looks "too accident-prone an institution to be worthy of customer or investor trust".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The executives' greed doesn't help, said Chris Blackhurst in The Independent. The old canard about banks being in a global market for talent, and so obliged to pay its people ridiculous sums to stop them defecting to rivals, was trotted out again.
Well, so good is Barclays' talent that it contributed to a 37% drop in Barclays' investment-banking division. Nor has Barclays, or any other bank, ever explained where "all these gaping vacancies" at rival banks actually are.
-
Zoopla: UK rental growth hits three-year low - is buy-to-let still worth it?Landlords are already battling with higher taxes and reduced reliefs and now rental growth is slowing
-
How the government’s latest leasehold reforms will help youThe government has unveiled plans to abolish leasehold ownership and replace it with commonhold – here is what you need to know
-
UK banking stocks: what’s the latest this results season, and are they worth a look?All five major UK banks released their annual results in February, reporting profit increases. But the sector has long been unloved by investors. Are UK banking stocks hidden gems, or better avoided?
-
Britain’s most-bought shares w/e 12 AugustNews A look at Britain’s most-bought shares as of 12 August, providing an insight into how investors are thinking and where opportunities may lie.
-
Activist investing: forget hedge funds, leave it to private investorsOpinion Demands from “activist investor” hedge funds are every bit as short-termist as the management teams they are trying to shake up, says Matthew Lynn. Private investors will take a long view.
-
Banks pass stress testFeatures Britain’s seven biggest lenders have passed the second round of annual stress tests – but how resilient are the tests?
-
Barclays gives its boss the bootFeatures Barclays has fired its CEO Antony Jenkins after three years on the job. He will be replaced by the chairman, John McFarlane, on an interim basis.
-
Barclays shrinks investment bankNews Barclays is still struggling with their investment banking arms following another round of disappointing results.
-
New technology is threatening the big banks, but there's one that's still worth buyingFeatures Mobile and online banking are making traditional bank branches obsolete. But one bank in particular is still a buy, says Matthew Partridge.
-
BNP and Barclays misbehave
News Regulators in America have levied heavy fines on the banks for breaching its rules.
