Barclays profits down as PPI misselling scandal takes its toll
Barclays has reported a drop in full-year profits and a restructuring including a reduction of its stake in its Africa business. Underlying annual profits for 2015 fell 2% to £5.4bn. The bank said it would cut its dividend by more than half to 3p per share in 2016 and 2017.
Barclays also announced a further £1.45bn provision for PPI mis-selling. It said it wanted to slim down into two, main core divisions – Barclays UK and Barclays Corporate & International.
The bank said it would “sell down” its 62.3% stake in its Africa business in the next two to three years. Barclays also said its bonus pool for staff in 2015 had shrunk 10% to £1.67bn.
The bank’s chief executive, Jes Staley, who took up his post in December, said the bank was competing on an international level.: “The last four years Barclays bonus pool has been cut in half… this is a dramatic move but we need to pay competitively whether its a bank manager in Manchester or a banker in New York, we need to pay our people competitively for Barclays to be competitive.”
“Barclays is fundamentally on the right path, and is, at its core, a very good business,” said chief executive Jes Staley in the results statement.
“There is of course more we need to do and areas where I believe we can move much faster to deliver the high performing group that Barclays can and should be.”
Mr Staley told the BBC that the bank’s decision on Africa had been “very difficult”.
“You go to places like Uganda and Kenya and the brand of Barclays is as strong there as it is in the UK,” he said.
“But we have to make some very difficult decisions if we are going to get Barclays into focused, clear, compelling business model that generates returns for our shareholders.”
Barclays has more than 12 million customers across 12 nations in Africa.