29th Jul 2015 06:27
LONDON (Alliance News) - Barclays PLC Wednesday reported an increase in second-quarter net profit, and revealed plans to intensify the scaling down of its non-core assets.
In its first set of results since the board sacked Antony Jenkins as chief executive earlier this month, Chairman John McFarlane said he wants to ensure the bank's non-core division, which houses the assets that don't fit within its strategy, has less of an influence on overall results, primarily by cutting its capital requirements and operating losses.
Barclays is now planning to reduce non-core risk-weighted assets to about GBP20 billion by the end of 2017, when McFarlane expects it will be put back into the group's core division and managed down, changing previous guidance of reducing non-core risk-weighted assets to GBP45 billion at the end of 2016.
Net profit increased to GBP1.15 billion in the quarter ended June 30, compared with GBP161 million in the corresponding period the prior year. Adjusted pretax profit, a closely watched measure of the bank's performance, increased to GBP1.85 billion in the quarter, up from GBP1.66 billion year-on-year, ahead of the GBP1.75 billion forecast by analysts.
Barclays' interim dividend remains at 2.0 pence per share.
McFarlane, who is acting in an executive role until a new chief is hired, has already been clear that the bank focus on becoming leaner, growing revenue, and generating returns for shareholders.
Jenkins was told to leave after about three years since he succeeded Robert Diamond, the chief executive known for building Barclays' investment bank into a serious competitor with Wall Street banks.
When he took over from Diamond in the wake of the Libor benchmark rate manipulation scandal, Jenkins was tasked with restoring the bank's reputation and improving its culture.
By Samuel Agini; [email protected]; @samuelagini
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