Barclays Sacks CEO, Jenkins, As European Shares Bounce Back | Independent Newspapers Limited
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Barclays Sacks CEO, Jenkins, As European Shares Bounce Back

Posted: Jul 8, 2015 at 11:15 am   /   by   /   comments (0)
Anthony Jenkins

Anthony Jenkins

BARCLAYS Chief Executive, Anthony Jenkins, has been fired after falling out with the board over the bank’s cost cutting and profitability.

Board members are believed to have wanted bigger cost cuts and more focus on the investment bank’s performance.

Chairman, John McFarlane, said the bank needed to become more efficient: “What we need is profit improvement. Barclays is not efficient. We are cumbersome.”

In a statement, Barclays said a “new set of skills” was required at the top.

Jenkins has been Barclays’ chief executive since 2012. The bank said a search for his successor was under way.

Barclays’ chairman, McFarlane, has been named executive chairman until a new chief executive is appointed.

In a conference call, McFarlane said the board had decided the firm needed to change its strategy in order to boost revenue growth.

Barclays needed to be “leaner and more agile” to improve the firm’s capital performance, he said.

Investors welcomed the news of the change, sending shares in Barclays up more than three per cent in early morning trade.

McFarlane applauded Jenkins’ role in steering Barclays through the aftermath of the financial crisis, and through the fallout of Barclays’ management shakeup three years ago.

But, he also said: “There is no question that cultural change was urgently required.”

McFarlane told BBC business editor, Kamal Ahmed, that Jenkins’ skill set had been suitable when he took the top post, but that the firm’s needs had changed.

When the BBC asked him about future job cuts, he did not rule them out.

Nor did he rule out the possibility of branch closures.

“Inevitably, banks are going to have fewer branches than they have now,” McFarlane said.

He also told the BBC that Barclays would not renew its sponsorship of the Premier League when it expires later this year.

Meanwhile, European equities bounced back on Wednesday after euro zone members gave Greece until the end of the week to come up with a proposal for sweeping reforms to secure new aid and avoid crashing out of the euro.

Barclays was the FTSEurofirst 300 index’s top gainer, up 3.3 per cent, after the British lender surprised markets by announcing a search for a new chief executive to help accelerate strategic change and boost shareholder returns.

“Markets are up on the realisation that this weekend there will probably come an end to the Greek saga, one way or another.

“Markets are probably priced for a Grexit, but one where contagion may be limited,” said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.

“In the meantime, commodity-related shares are in a downtrend, pressured by the sharp sell-off in the Chinese stock market. This will eventually lead to a massive buying opportunity, but it is clearly too early to jump back in.”


The euro zone’s blue-chip Euro STOXX 50 index was up 1.2 per cent by 0809 GMT, while the pan-European FTSEurofirst 300 index rose 0.5 per cent.

Britain’s FTSE, Germany’s DAX and France’s CAC gained 0.6 to 1.1 per cent, following an emergency summit on Greece in Brussels late on Tuesday.

European Central Bank Governing Council member Christian Noyer said a crisis meeting of EU leaders on Sunday is “really the final deadline” for Greece to reach a deal with creditors or face economic collapse.

But EU Economics Commissioner Pierre Moscovici said an agreement between Greece and its euro zone partners was still possible.

The STOXX Europe 600 Basic Resources Index fell 1.2 per cent after stocks in China, the world’s biggest metals consumer, slumped further. Chinese shares have lost about 30 percent of their value since mid-June, a new blow to the country’s already slowing economy.

In Britain, Finance Minister, George Osborne, fresh from May’s election victory, will say on Wednesday how he plans to reshape the economy by chopping welfare spending, easing the tax bill for workers and tackling challenges facing the recovery.