Figures from Barclays offer a decent clue on where the new boss Jes Staley will steer the business. Although Barclaycard has been doing brilliantly, overall the group’s return on equity has fallen and the cost base is rising.
The racier bits of investment banking, done by scores of traders in Canary Wharf dealing rooms, were hit by yet more huge declines in income – down 28 per cent in some parts.
But more traditional “advisory” work – practised by well-turned-out chaps helping company bosses do takeovers and raise money – fell by just 7 per cent. Not only is advisory work shrinking far less quickly than the casino stuff, it is far less capital intensive in the new world of tougher regulations on financial buffers for banks.
So as Mr Staley sharpens the cost-cutting knife, expect him to spare his traditional investment bankers but cut to the bone in areas like credit, commodities and currencies trading.
