I have a gut feeling we'll see Barclays starting to climb from here onwards, with a few downs along the way. I think some of the downward pressure we've seen on days when the share has dropped against the market has been caused by market movers looking to exit their short positions. Time will tell and a lot will depend on the sector movements, but i really do think this will start trending upwards.
Ok ok, maybe interpreting this article wrong then. But when he says £500m won't be enough immediately I'm thinking that will give a bad reaction in share price as it's another unknown. Unknowns = bad sentiment. Hope I'm wrong. Just wish they hurried up and got everything sorted, paid, and move on.
Barclays chief Antony Jenkins says the bank has 'definitively answered the capital question’
Barclays is on track to hit two of its main targets for boosting capital and reducing indebtedness as much as a year ahead of schedule after taking an axe to the investment bank that was once its profits engine.
“I think we are very well positioned to deal with the requirements of the regulators and in the course of next year I think that is going to become very apparent to the market,” Antony Jenkins, chief executive, told the Financial Times in an interview. “I think we have definitively answered the capital question.”
Signalling a likely cut in bonuses for Barclays staff to reflect the expected drop in profits at its investment bank this year, Mr Jenkins said: “I do not expect to be in a situation where profits are down and the bonus pool is up.”
The Barclays boss caused controversy in February by defending a rise in 2013 bonuses even though investment banking profits were down as a necessary “one-off” step to avoid top bankers quitting. But he said on Wednesday: “You can infer from my position that I don’t expect to be in the same position.”
The bank, which launched a drastic restructuring and set itself more ambitious targets to shrink its investment bank and slash costs in May, aims to have a common equity tier one ratio — the main measure of a bank’s financial strength — of 11 per cent by 2016. It has already reached a ratio of 10.4 per cent, if the sale of its Spanish operations is counted.
It also set a target to increase its leverage ratio, which measures its capital against its total assets, from 3.5 per cent at the end of September to more than 4 per cent by 2016.
“We have made very good progress against the targets and I feel confident that — certainly on the capital and leverage ratio — we will be able to deliver those targets ahead of schedule,” said Mr Jenkins.
Barclays has cut £36bn of risk-weighted assets out of the £110bn placed into a non-core unit in May, largely made up of parts of its fixed income, commodities and trading operations, as well as retail banking units in Spain, Italy, France and Portugal.
Yet its shares have fallen more than 10 per cent this year, underperforming the sector, in part due to concern over its capital position. Mr Jenkins said the bank’s investors “want us to go faster and that is what we are going to deliver”.
Barclays has cleared two important hurdles recently after it came through the Bank of England’s debut stress tests this week with a clean bill of health and was given new leverage ratio requirements by the regulator that were within its existing target.
One shadow still hanging over the lender is that it remains in talks about a settlement with UK, US and Swiss regulators over alleged collusion and rate-rigg
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