Barclays shares slump as bank announces it is set to cull up to 12,000 jobs

11th February 2014

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Barclays shares have plummeted by 10p in mid-morning trading, following the publication of the bank’s full annual results and the news that it is to cut thousands of jobs writes Philip Scott.

Yesterday the bank surprised the market when it unveiled its headline full year profit a day early after a report in the Financial Times was found to be too close the mark.

The bank’s statutory pre-tax profits for 2013 increased to £2.9bn, while adjusted pre-tax profits fell by around a third from £7bn to £5.2bn.

Barclays said its profits were hit by, among other factors, restructuring and legal costs.

In the bank’s full-year results market update today, it said plans to cut up to 12,000 jobs this year, including some 7,000 in Britain, from its 140,000 workforce.

However despite its plans the bank revealed it had upped its staff bonus pool, by 10% to almost £2.4bn in 2013.

Last week Barclays’ boss Antony Jenkins, who took over in 2012 after the interest rate rigging scandal, announced that he had decided to decline his bonus for the second year running as a result of regulatory costs and a £6bn fundraising.

The bank’s chief executive officer, who was up for a bonus of up to £2.75m, said: “It would not be right, in the circumstances” for him to accept a bonus for 2013, and he has therefore declined the one offered to him by the group’s board.

The CEO however will, according to reports, be given some £4m in shares.

Despite the fall in its share price today, the market consensus still rates the stock, which is flat over 12 months, as a ‘buy’. Today analysts at Jeffries reiterated their ‘buy’ recommendation while Numis Securities maintained a ‘hold’. In addition Investec Securities yesterday repeated its ‘buy’ position.

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