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* Bank takes 750 mln stg extra provision for FX probe
* 2014 profit including charges, costs down 21 pct at 2.3bln stg
* Aiming for FX deal with as many agencies as possible
* Shares down 3 pct (Recasts with CEO comments)
By Steve Slater and Matt Scuffham
LONDON, March 3 (Reuters) - Barclays Plc chiefAntony Jenkins has threatened more cuts to its underperforminginvestment bank after a 750 million pounds ($1.2 billion) chargeby the British bank provided fresh evidence of the costs of pastmisdemeanors by its traders.
Barclays last year cut costs, improved its capital strengthand shed unwanted assets, which Jenkins said justified hisdecision to accept his first bonus since taking charge threeyears ago - helping his pay for last year to more than treble to5.5 million pounds.
But it continues to be dogged by past conduct problems andlacklustre returns in investment banking and Jenkins said onTuesday he would take a knife once again to the investment bankarm if it does not improve its profitability.
"I'm not a very patient person and every business within thegroup has to deliver the RoE (return on equity) that we requireof it," Jenkins told reporters.
"We won't hesitate to continue to optimise capital allocatedto the investment bank, the cost base and revenues to generatethose returns."
Barclays took a higher-than-expected 750 million poundcharge in the fourth quarter as it prepares to settleallegations its traders manipulated foreign exchange markets.
For the year as a whole it reported an adjusted pretaxprofit of 5.5 billion pounds, up from a restated 4.9 billion in2013 and above the average forecast of 5.3 billion.
Including charges, provisions and restructuring costs of 1.2billion pounds, pretax profit fell 21 percent to 2.3 billion.
Shares were down almost 3 percent by 1420 GMT, the topfallers in a slightly weaker European banking sector.
Barclays increased its provision for potential forex finesand settlements to 1.25 billion pounds and Jenkins saidbehaviour had been "wholly unacceptable" and continued to cast ashadow on the bank.
Barclays pulled out of settling allegations its traderstried to rig foreign exchange benchmarks in a deal between U.S.and UK authorities and six rival banks in November because ithad not reached a deal with New York's regulator.
It said it wanted to settle the allegations with as manyagencies as possible, as quickly as possible, but gave nofurther guidance on likely timing.
In addition to probes by Britain's Financial ServicesAuthority, the U.S. Commodity Futures Trading Commission and NewYork's Department of Financial Services, the U.S. Department ofJustice (DoJ) is in the final stages of its own inquiry.
PROBE OUTCOME
The bank said the outcome of the FX probes could violate anon-prosecution agreement (NPA) it has with the DoJ, whichstarted in 2012 when it was fined for rigging Libor rates andruns until the end of June. It means if the DoJ finds wrongdoingin FX activities it could come down harder on the bank.
Barclays is also being investigated by U.S. and UKauthorities on the circumstances around its 2008 fundraisingswith investors in Qatar and the bank said another unidentifiedregulator is also looking at a third-party relationship relatedto that event.
Barclays also set aside an extra 200 million pounds in thefourth quarter to compensate British customers who were mis-soldinsurance products.
Under Jenkins, Barclays has abandoned its ambition of beinga Wall Street powerhouse, shrinking its investment bank infavour of a return to its retail roots.
The arrival of John McFarlane as chairman in April hadraised expectations the downsizing of the investment bank couldaccelerate, after he sold dozens of units in a revamp at insurerAviva.
"The big issue for me is the new chairman's agenda," saidone top-15 shareholder. "These results are less significant thanany change to long-term strategy, especially a decision onwhether the company remains a universal bank."
Barclays said its investment bank had a good start to 2015but 2014 was a year to forget, with pretax profit sliding athird. It cut 2,600 jobs from the business out of 7,000 it hassaid it will axe, or about a quarter of the unit's staff.
Returns in the investment bank were just 2.7 percent lastyear, well short of its target of 12 percent, although the banksaid that was artificially low due to the impact of deferred payfrom past years, conduct and legal costs and restructuringcharges.
The bank's bonus pool dropped 22 percent to 1.86 billionpounds last year.
Profit at Barclays' personal and corporate banking division,its main profit driver, rose 29 percent, boosted by a drop inimpairment charges. (Additional reporting by Sinead Cruise; Writing by CarmelCrimmins; Editing by David Holmes)
