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May 8, 2014updated 04 Apr 2017 2:18pm

Exclusive Update: Barclays restructures wealth management arm with roughly £2 billion of assets to be run down

Barclays Wealth and Investment Management will no longer be run as a standalone business after the British bank revealed plans today to merge the division into its personal and corporate banking division.

By Mark Foxwell

Barclays Wealth and Investment Management will no longer be run as a standalone business after the British bank revealed plans today to merge the division into its personal and corporate banking division.

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GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
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The move comes as Barclays announced plans to shed 14,000 jobs, mainly in the investment banking division. A spokesman for Barclays said: "No job cuts will be made in the wealth division."

The spokesman said the bank was being restructured into four core businesses – Personal and corporate banking, Barclaycard, Africa banking and Investment banking.

He said: "The merger of the wealth division into personal and corporate banking will allow the division to run more efficiently and be better aligned under a single platform. HNW individuals will benefit from retail customer privileges, which previously were not available to wealth clients."

Barclays, today, also announced the creation of Barclays Non-Core. This unit groups together those assets that do not fit the strategic objectives or returns criteria underlying the strategy review.

Sources close to the process told PBI that Barclays will exit and run down approximately £2 billion of wealth assets over time. Barclays Non-Core consists of c.£115bn of RWAs (including £59bn of Transform Exit Quadrant Assets held at year end 2013) with associated leverage exposure of c.£400bn.

Barclays’ group chief executive, Antony Jenkins, said: "This is a bold simplification of Barclays. We will be a focused international bank, operating only in areas where we have capability, scale and competitive advantage. In the future, Barclays will be leaner, stronger, much better balanced and well positioned to deliver lower volatility, higher returns, and growth."

He added: "My goal is unchanged: to create a Barclays that does business in the right way, with the right values, and delivers returns that our shareholders deserve. However, the way in which we will achieve this is different."

Plans for the investment bank will result in gross headcount reductions of around 7,000 by 2016 across core and non-core. The overall 2014 Group gross headcount reduction has been increased to 14,000.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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