Latest news with #Venkatakrishnan
The Sun
21 hours ago
- Business
- The Sun
Barclays CEO welcomes possible end to Trump retaliatory tax
THE CEO of Barclays has welcomed indications that U.S. Republicans may scrap the Section 899 retaliatory tax proposal from their tax and spending bill. 'The developments on 899 are welcome progress and a significant outcome for a great many UK companies like Barclays that invest in the US and support economic growth in both countries,' Barclays CEO C.S. Venkatakrishnan told Reuters in an emailed statement. It is unusual for a British bank CEO to criticise a specific policy of U.S. President Donald Trump. Multinational companies with operations in the United States have been lobbying through industry groups against Section 899, warning about the potential impact on their investment plans in the country. Section 899 would have enabled President Donald Trump to retaliate against countries that impose taxes on U.S. firms under a 2021 global tax agreement that Trump considers unfair. The agreement is 'another important sign of the close working relationship between the UK Chancellor and US Treasury Secretary which is critical for UK and US businesses,' Venkatakrishnan said.
Yahoo
10-06-2025
- Business
- Yahoo
Barclays Plans to Trim IB Workforce by More Than 200 to Reduce Costs
Barclays PLC BCS intends to reduce 3% of its workforce in the investment banking (IB) division in the upcoming days. This is part of CEO C.S. Venkatakrishnan's plan to boost the division's profitability. This was reported by Bloomberg, citing people familiar with the matter. More than 200 employees in IB, global markets and research will likely be affected. These would also include managing directors, among the most senior roles. These job cuts aim to expand the bank's capability to invest in priority areas, one of the people familiar with the matter stated. Barclays has been focused on gaining market share in European rates, equity derivatives and securitized product trading. During its investor update last year, the company stated that these efforts are anticipated to boost revenues by £500 million by IB, the company is aiming to grow its revenues from equity capital markets and mergers and acquisitions, with a specific focus on the health care, industrial, technology, and energy transition it is prioritizing growth in other areas, Barclays remains committed to its transatlantic IB model, despite ongoing investor pressure over the years.A Barclays spokesperson stated, 'Like other banks, we regularly assess our talent pool as part of our routine operations to ensure ongoing investment in key focus areas.' This move aligns with Barclays' ongoing efforts to improve efficiency through streamlining business operations and focusing on core April 2025, it announced a collaboration with Brookfield Asset Management Ltd. to transform its payment acceptance business. Further, in February 2025, it divested its Germany-based consumer finance business. In November 2024, the company acquired Tesco's retail banking business and changed its operating divisions effective in the first quarter of the past six months, Barclays shares have gained 36.3% compared with the industry's growth of 23.1%. Image Source: Zacks Investment Research Currently, BCS carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Last week, a source familiar with the matter said that Citigroup C will cut about 3,500 jobs at two of its technology centers in China by the start of the fourth quarter of 2025. The reduction will take place at the China Citi Solution Centres in Shanghai and of the jobs that are being cut are full-time. Citigroup mentioned that some of the roles would be moved to its technology centers elsewhere without specifying the number of jobs or move is part of the bank's strategy to simplify and reduce its global technology operations to improve data after shutting its retail banking business in the United States in 2021, HSBC Holdings PLC HSBC is now set to close its business banking division in the country. This announcement comes amid the company's ongoing business simplification efforts and accelerated shift toward the Asia and Middle East regions. This was first reported by move will likely affect nearly 4,500 HSBC clients. The bank will aid the impacted clients in transitioning to a suitable alternative provider and will continue to serve some clients in the Mid-Market and Global Network Banking Business. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Citigroup Inc. (C) : Free Stock Analysis Report Barclays PLC (BCS) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Straits Times
09-06-2025
- Business
- Straits Times
Barclays to cut more than 200 investment bank jobs to reduce costs: Sources
Staffers in investment banking, global markets and research will likely be affected, sources said. PHOTO: REUTERS LONDON – Barclays is preparing to cut more than 200 jobs in its investment bank in the coming days as part of chief executive officer C.S. Venkatakrishnan's plan to boost the profitability of the division. Staffers in investment banking, global markets and research will likely be affected, according to people familiar with the matter. Managing directors will be the most senior roles affected, they added. The reduction represents about 3 per cent of the investment bank's headcount. The cuts are meant to give the bank more capacity to invest in priority areas, one of the people said. In markets, the bank has been focused on boosting its market share in European rates, equity derivatives and securitized product trading. In investment banking, the firm has been looking bolster the revenue it generates from equity capital markets and mergers and acquisitions, in particular across the health care, industrial, tech and energy transition industry groups. The move is not a sign that the bank is retrenching away from any products or asset classes, the person added. Although it's prioritising growth elsewhere, Barclays has committed to its costly transatlantic investment banking model in the face of pressure from investors over the years. 'Like other banks, we regularly review our talent pool as part of our ongoing business operations to ensure continued investment in priority areas,' a Barclays spokesperson said in a statement. The lender made similar reductions just over a year ago. Mr Venkatakrishnan has been under pressure to boost returns across the investment bank, which consumes large amounts of capital compared with other, higher-returning parts of the business. He has said the division won't be allocated any additional risk-weighted assets from the parent company in the coming years, even as it navigates higher capital requirements from global regulators. The CEO set out a new strategy in 2024 that anticipated about £2 billion (S$3.5 billion) of efficiency savings across the bank by 2026, helping to boost earnings and return £10 billion to investors. Barclays' investment bank is by far its largest division, generating £11.8 billion in revenue in 2024, up 7 per cent from a year earlier. The bank is known as a powerhouse in fixed-income markets – though it's been investing heavily in its prime and equity divisions in recent years to catch up to rivals. The bank has seen its market share in investment banking inching upward after it had roles on deals including Alphabet.'s US$32 billion (S$41 billion) purchase of Wiz Inc. and Sunoco's acquisition of Parkland Corp. for about US$9.1 billion including debt. Within markets, revenue for the first three months of the year jumped 16 per cent as the firm's stock traders posted their best quarterly haul in almost three years. Investors seem to be happy with the bank's progress so far, with shares up about 24 per cent this year. That's better than the 8 per cent advance of the FTSE 100 index. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
09-06-2025
- Business
- Business Times
Barclays cuts more than 200 investment bank jobs to reduce costs
[LONDON] Barclays is preparing to cut more than 200 jobs in its investment bank in the coming days as part of chief executive officer CS Venkatakrishnan's plan to boost the profitability of the division. Staffers in investment banking, global markets and research will likely be affected, according to people familiar with the matter, who asked not to be named discussing personnel. Managing directors will be the most senior roles affected, they added. The reduction represents about 3 per cent of the investment bank's headcount. The cuts are meant to give the bank more capacity to invest in priority areas, one of the people said. In markets, the bank has been focused on boosting its market share in European rates, equity derivatives and securitised product trading. In investment banking, the firm has been looking bolster the revenue it generates from equity capital markets and mergers and acquisitions, in particular across the health care, industrial, tech and energy transition industry groups. The move is not a sign that the bank is retrenching away from any products or asset classes, the person added. Although it's prioritising growth elsewhere, Barclays has committed to its costly transatlantic investment banking model in the face of pressure from investors over the years. 'Like other banks, we regularly review our talent pool as part of our ongoing business operations to ensure continued investment in priority areas,' a Barclays spokesperson said in a statement. The lender made similar reductions just over a year ago. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Cost cuts Venkatakrishnan has been under pressure to boost returns across the investment bank, which consumes large amounts of capital compared with other, higher-returning parts of the business. He has said the division won't be allocated any additional risk-weighted assets from the parent company in the coming years, even as it navigates higher capital requirements from global regulators. The CEO set out a new strategy last year that anticipated about £2 billion (S$3.5 billion) of efficiency savings across the bank by 2026, helping to boost earnings and return £10 billion to investors. Barclays' investment bank is by far its largest division, generating £11.8 billion in revenue in 2024, up 7 per cent from a year earlier. The bank is known as a powerhouse in fixed-income markets – though it's been investing heavily in its prime and equity divisions in recent years to catch up to rivals. Many changes As part of the investor update last year, Barclays said its work to gain share in European rates, equity derivatives and securitised products trading would help it boost revenue by £500 million by 2026. Meanwhile, the push to get back to the 4 per cent market share it last had in advisory and underwriting in 2019 was supposed to yield £700 million in income growth within investment banking. To pull off those goals, the bank has been appointing key leaders and has made several high-profile hires. For instance, it added former Centerview Partners LLC partner Andrew Woeber as its global head of M&A in April and Royal Bank of Canada's John Kolz joined in March to co-run equity capital markets globally. The bank has seen its market share in investment banking inching upward after it had roles on deals including Alphabet Inc.'s US$32 billion purchase of Wiz and Sunoco LP's acquisition of Parkland Corp. for about US$9.1 billion including debt. Within markets, revenue for the first three months of the year jumped 16 per cent as the firm's stock traders posted their best quarterly haul in almost three years. Investors seem to be happy with the bank's progress so far, with shares up about 24 per cent this year. That's better than the 8 per cent advance of the FTSE 100 index. BLOOMBERG
CNBC
22-05-2025
- Business
- CNBC
U.S. tariffs pose a 'real challenge' to Europe, Barclays CEO says
Washington's protectionist trade policies are posing a "real challenge" to European nations as they seek to raise their security contributions, according to Barclays CEO C. S. Venkatakrishnan. "I think Europe has a real challenge in adjusting to tariffs. It's got to find space, fiscal space, to increase defense spending, and it's got to look at consolidation in financial institutions, in within its market," the executive told CNBC's Steve Sedgwick on Thursday. The European Union currently faces a 25% U.S. import tariff on its steel, aluminum and cars and was in April struck with an additional 20% "reciprocal" levy under the White House's fresh wide-spanning trade policies. The latter duty has been temporarily reduced to 10% during a 90-day reprieve that expires in July, paving the way for Washington and the 27-member European bloc to join the negotiations table for a more favorable trade agreement. A deal has yet to be struck, with markets mired in uncertainty and with concerns mounting over the EU's economic growth outlook and potential inflationary and recessionary risks in the world's largest economy. The trade developments affecting the two historically allied nations have cast a shadow on the EU's efforts to overhaul its fiscal policies and galvanize defense spending under the bloc's "ReArm Europe Plan." The volatility has encumbered companies that seek to understand the impact of tariffs and regulation on their business model, Barclays' Venkatakrishnan said. "You can look at the companies that have withdrawn earnings guidance over the year, and those are the industries that are more deeply affected. And there, they might decide — not now, but over time — that there needs to be further consolidation or further rewiring of their business models," he said. "And then activity will increase, and we can help them. And then there are others who are ... taking advantage of the relative calm to continue to expand their businesses." British bank Barclays has had a notable presence stateside since absorbing the investment banking and capital markets businesses of collapsed Wall Street titan Lehman Brothers for $1.75 billion. The lender is navigating calmer seas at home, after Trump unveiled the broad outline of a U.S.-U.K. trade deal earlier this month and Britain scored another major win earlier this week through an agreement to reset its relationship with the EU after departing the bloc in 2020. Still, U.K. Prime Minister Keir Starmer's Labour administration must battle the dragon of surging inflation and public skepticism over Finance Minister Rachel Reeves' planned tax increases. A vocal Reeves supporter, Venkatakrishnan on Thursday said the current government remains "absolutely" on track with its economic steps and outlined the hurdles before the British economy: "We're not seeing consumer distress. We're in fact, seeing conduit continued consumer strength, but it's coming because of people managing their balances and their finances prudently. So economizing. The job market is still strong," he said. "But, as you see, even in the last couple of days, people are worried about inflation. People are worried about cost, whether it's winter fuel bills or whether it's more generalized inflation from tariffs, and the only real answer to that is growth."
