(Clarifying that GBP2.7 billion is the one-time spending anticipated by Barclays to deliver its targeted run-rate cost reductions.)
LONDON (Alliance News) - Barclays Chief Executive Anthony Jenkins Tuesday will detail cost targets of the bank's Transform programme in a speech to investors at the Barclays Global Financial Services Investor Conference in New York.
In a statement issued Tuesday, Barclays said Jenkins will say in the speech that out of a GBP2.7 billion budget to deliver the benefits of "rightsizing, industrialisation and innovation" by 2015, approximately GBP1.4 billion is expected to be spent in the bank's retail business, with GBP400 million in its wealth business, over GBP300 million in corporate banking, and nearly GBP600 million in the investment bank.
Meanwhile, Jenkins expects ongoing run-rate cost reductions of GBP700 million to come from the front office, GBP800 million to come from operations and technology, and GBP200 million to come from areas such as human resources, finance and risk, totalling GBP1.7 billion per annum by 2015.
Barclays' Transform programme was announced in February 2013 and is a five-year strategy to stabilise the organisation to improve business in the next three years, with a broader aim of becoming the "Go-to" bank by 2015, Barclays said.
Jenkins' speech comes just three days ahead of the bank's possible rights issue on Friday. It is aiming to raise GBP5.8 billion to plug a capital shortfall identified by UK regulators.
Barclays shares were Tuesday quoted at 305.81 pence, up 6.26 pence, or 2.1%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2013 Alliance News Limited. All Rights Reserved.