The second-largest bank by assets in the U.K – Barclays Plc increased the amount it pays out in bonuses by 10% even considering the fact that the division posted a loss in the fourth quarter.
Barclays Plc made an official statement today, announcing that the unit posted a pretax loss estimated to 329 million pounds (539 million dollars) in the period between October and December 2013 in comparison to a 760-million-pound profit for the same period in 2012. The company also said that the bonus pool for 2013 rose to 2.4 billion pounds from 2.17 billion pounds in 2012.
Antony Jenkins, who is the Chief Executive Officer of Barclays Plc, is said to be under pressure to control costs at the investment bank. In its statement today, the company commented that its managing directors performance has been evaluated against whether they showed “the right values and behaviours”. Chief Executive Officer Jenkins said in an interview, which was cited by Bloomberg: “We pay for performance and we pay competitively. It goes back to having the best talent across the world to serve our clients and customers.”
Mr. Jenkins has been leading the company through some lay-offs, including hundreds at the investment banking operation, in order to remove 1.7 billion pounds of the companys costs by 2015. The Chief Executive Officer said in the press conference today that Barclays Plc is expected to cut as many as 12,000 jobs. He also explained that about 7,000 positions will go in the U.K. and half of them have already been announced.
“Our cost-to-income ratio rose in 2013 mainly as a consequence of reduced income, but we remain committed to achieving a ratio in the mid-50s by 2015,” Barclays said for Bloomberg.
Barclays Plcs shares fell by 5.34% to GBX 263.60 by 14:51 GMT in London, marking a one-year change of -5.34%. The 24 analysts offering 12-month price targets for Barclays Plc have a median target of GBX310.00, with a high estimate of GBX364.00 and a low estimate of GBX203.22. The median estimate represents a 12.73% increase from the last close of GBX275.00.
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