News about Barclays

Britain's Barclays plans to cut about 5,000 jobs, roughly 5% of its total workforce, as it restructures to lower operating costs and boost efficiency through artificial intelligence, freeing up resources for investment. About 60% of the affected roles are in support functions, including software development teams. In its third-quarter results released on October 22, pre-tax profit rose 12% year on year to £2.3 billion ($3.1 billion), in line with LSEG analyst forecasts, but group revenue of £7.4 billion came in below the £7.61 billion expected. Net interest income was broadly flat at £3.91 billion, the CET1 ratio eased from 14.3% to 14.2%, and return on tangible equity fell from 16.1% to 11.7%. Barclays shares were down nearly 1% at 8:50am London time, less than an hour after the market opened.

After acquiring personal loan originator Best Egg, Barclays plans to grow its U.S. digital bank by cross-selling high-yield savings accounts, certificates of deposit and personal loans to the 25 million customers of its co-branded credit cards. Partners include General Motors, Samsung, AARP, Jet Blue, Carnival and Frontier Airlines, and Barclays will offer personal loans with the same rewards currency as the cards, such as airline miles. The bank says cross-selling savings and checking products to AARP's more than 38 million members has been very successful, with partner endorsements building trust. The push comes as consumers face rising prices, but Citizens analyst David Scharff says personal loan performance remains stable, supported by a strong labor market with unemployment near record lows.

Dell Technologies CEO Michael Dell has dropped two spots and is no longer the world's fourth richest person after a sharp decline in his net worth this week. The decline began Wednesday, October 15, after a Barclays analyst downgraded Dell stock from overweight to equal-weight, according to Forbes, and the article cites a $20 billion drop.