Barclays chairman John McFarlane speeds up reforms as profit rises

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McFarlane, who is running the bank after chief executive Antony Jenkins was ousted earlier this month, said he will cut costs to around 50% of income and cut non-core assets to £20 billion by 2017.

He said he plans to focus on three areas: delivering on strategy, giving more back to shareholders, and improving growth in earnings and capital.

“There is more that can be done to deliver better returns for shareholders, faster, and that work has begun under three Group priorities which I have established since becoming Executive Chairman earlier this month,” he said.

 

The bank reported adjusted profit before tax of £3.7 billion in the six months to the end of June, up 11% from a year earlier.

 

It also set aside a further £850 million to cover customer compensation, mainly redress for the mis-selling for payment protection insurance (PPI).

 

In total the PPI scandal has cost Barclays £6 billion.

The bank had previously set aside £800 million to cover the expense of any further legal action relating to the alleged rigging of foreign exchange markets.

Jenkins was ousted earlier this month after the board decided he had not implemented a planned overhaul of the bank quickly enough.

RSA boss Stephen Hester is among the names that been linked with the vacant chief executive job.

Source Article from http://www.standard.co.uk/business/business-news/barclays-chairman-john-mcfarlane-speeds-up-reforms-as-profit-rises-10423091.html

July 29, 2015 |
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