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LONDON, Jan 21 (IFR) - Barclays is to exit cash equities inAsia and cut about 1,000 investment bank staff as its new chiefexecutive Jes Staley tries to improve profitability in thebusiness by slashing costs, a person familiar with the mattersaid.
The cuts were announced to staff on Thursday, and most willbe in Asia, the person said. Barclays has already cut about7,000 staff in its investment bank in the last three years,reducing the unit's headcount to about 17,000.
Tom King, head of investment banking for Barclays, said thebank was "sharpening our focus on the geographies and productswhere we have a clear competitive advantage" in a memo to staff,seen by IFR.
Barclays is increasingly focusing its investment bank on itstwo "home" markets of Britain and the US, notably the financialcentres of London and New York.
Its retreat echoes cutbacks at several European rivals,including Deutsche Bank and Royal Bank of Scotland, and followsa long struggle for many to make profits in Asia.
It also reflects difficult market conditions for investmentbanks as tougher regulations hurt profitability.
Indeed, Deutsche Bank said late on Wednesday it would make aloss of 6.7bn in 2015, partly due to difficult tradingconditions and restructuring charges. Its shares slumped 7percent in early trading on Thursday.
Barclays shares were up 0.6 percent. Its latest movecontinues the British bank's retreat from Asia, where it willkeep a physical presence only in China, Hong Kong, India, Japanand Singapore.
That will see it exit Australia, Taiwan and South Korea. Ithad previously had a presence in 12 Asian countries, includingIndonesia, Malaysia, Thailand and Philippines.
It will discontinue Asia-Pacific cash equity products, withthe exception of electronic execution-only services, and nolonger pursue "high-touch'"equities sales, trading, or researchcoverage of Asia products in any region, King's memo said.
Among the people leaving will be Jon Pratt, chairman ofglobal finance for Asia-Pacific, and Guy Smith, co-head of itsAsia debt origination group.
The bank will cut a majority of its DCM staff in Singaporeand Australia, but will retain a handful of bankers, peoplefamiliar with the matter said. Avinash Thakur, who was co-headof Asian debt origination alongside Smith, will become sole DCMhead.
King's memo did not specify the number of job cuts andBarclays declined to comment on specific departures.
King said the bank was considering exiting its preciousmetals business and will close its Moscow office, with coverageof key Russian corporates and financial institutions moving toLondon.
It will stop sales and local research coverage of theCentral and Eastern Europe, Middle East and North Africa regioncash equity products and centralise coverage in London.
Its Brazil markets business will be delivered offshore byits New York and London teams.
In the Americas, the bank will focus its securitisedproducts on origination-led asset-backed and commercialmortgage-backed securities.
As a result, Barclays will no longer offer residential loantrading, GNMA CMBS or CMO products.
Citigroup has also cut a number of capital markets bankersin a move to shave about 20 positions from its institutionalclient group in Asia Pacific, people familiar with the mattertold IFR on Thursday
Departures include Vivian Sam, a director in the leveragedfinance business, as well as Andy Siow, a member of the debtsyndicate team in Hong Kong. At least two associates coveringequity capital markets are also leaving, the people said. (Reporting by Steve Slater in London and Frances Yoon in HongKong; editing by Sudip Roy and Ian Edmondson)
