March 1st 2016 should be inscribed into the diary of every employee at Barclays’ investment bank. This is the date when Jes Staley, Barclays’ new CEO will deliver the bank’s fourth quarter results. It’s also the day when Staley will reportedly announce over a thousand new redundancies.
Using a series of handy charts, banking intelligence firm Tricumen helps explain why Staley’s savagery is necessary and where it will fall most horribly.
1. Barclays’ investment bank needs to cut staff because: a) Its operating revenues have fallen faster than rivals’; b) It’s cost income ratio is out of control
2. Barclay’s investment bank needs to lay people off in credit trading and Asia Pacific
In the charts below, the red areas are where Tricumen says Barclays profitability is significantly below its peers. The green areas are where it’s doing fine and the orange areas are where it’s below average.
If Tricumen’s right, Barclays needs to clear out a lot of its Asian business along with all its credit trading operations. ECM, rates, and EMEA prime services and equities don’t look too hot either.