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.
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.
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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.