By Max Colchester
Barclays PLC's new chairman, John McFarlane, Thursday vowed to
speed up the U.K. bank's restructuring and improve returns.
Mr. McFarlane, who took over from outgoing chair David Walker,
said the bank had to resolve a number of legal problems hanging
over the lender and weed out unprofitable business units.
In a letter to shareholders he pledged a "dynamic" reallocation
of resources at the bank.
"It is appropriate that we continue to evolve the strategy to
fit the times and retain clarity on the proposition we are trying
to build," he added.
Mr. McFarlane, who joined Barclays from insurer Aviva PLC,
earned a reputation as a fearsome restructurer of struggling
financial institutions. He has been on Barclays's board since
January and has already performed a review of several business
lines, according to people familiar with the matter. On Thursday at
the bank's Annual General Meeting a shareholder asked how the
directors would fare when "John McFarlane arrives with his big
ax."
Problems related to past conduct continue to weigh on the bank.
Earlier this year the bank put aside GBP1.25 billion ($1.34
billion) to cover potential settlements over allegations that it
tried to rig foreign exchange markets. The provisions and
restructuring costs pushed the bank to a full-year net loss in
2014. The lender recorded a negative return on equity for the
period, a key measure of profitability. But in the last 12 months
the bank's shares have rallied some 2.5% as investors bet that the
restructuring will bear fruit.
Barclays Chief Executive Antony Jenkins said earlier this year
that he felt justified in accepting a GBP1.1 million bonus for 2014
because of the progress the bank was making slimming down and
refocusing on its retail and corporate business. The bank announces
its first-quarter earnings next week. On Thursday Mr. Jenkins said
that he was confident that 2015 would be a year of continued
delivery of the strategy and that there would be more clarity on
legal and regulatory issues. He added he expected "progress" on
legacy issues in 2015.
At the annual general meeting Mr. Walker said progress had been
made but "the journey is incomplete." He added that the criticism
the bank has faced was "justified."
Write to Max Colchester at max.colchester@wsj.com
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