Barclays gains as CEO Jenkins steps down, bank looks for "new set of skills"

Barclays was on the front foot after the bank announced the departure of its chief executive, Antony Jenkins, saying that “a change in leadership is required” and the search for his successor is underway.

Chairman John McFarlane will become executive chairman pending the appointment of a new chief executive and the change will come fully into effect on 17 July.

The bank’s non-executive directors, led by deputy chairman and senior independent director Michael Rake, concluded that new leadership was required to accelerate the pace of execution going forward and that McFarlane is ideally qualified in this respect until a permanent successor is appointed.

The bank said the move does not signal any major change in strategy.

“The board recognises the contribution made by Antony Jenkins as chief executive over the past three years in incredibly difficult circumstances for the group, and is extremely grateful to him in bringing the company to a much stronger position. The situation he inherited would have challenged anyone facing the same issues,” Barclays said.

Rake said: “I reflected long and hard on the issue of group leadership and discussed this with each of the non-executive directors. Notwithstanding Antony’s significant achievements, it became clear to all of us that a new set of skills were required for the period ahead. This does not take away from our appreciation of Antony’s contribution at a critical time for the company."

Investec Securities said that although Barclays insisted the move does not signal a major change in strategy, few will see it that way.

“We assume that John McFarlane and/or Antony Jenkins’ permanent successor will quickly signal a faster rundown of non-core assets coupled with further rationalisation within the low return Investment Bank.

“Sources of incremental revenue growth are less obvious, although increased ‘aggression’ within Barclaycard and/or the UK retail/commercial businesses offers some potential opportunity.”

It added that the primary reason investors have been frustrated by the pace of progress relates to revenue weakness within Investment Banking and elsewhere and the continuing drag from conduct issues.

Investec rates the stock at ‘hold’.

Shore Capital analyst Gary Greenwood said: “ If this move does indeed act as a catalyst for an accelerated improvement in Barclays’ financial performance, then this can only be a good thing, in our view.”

He rates the stock at ‘buy’.

Mike van Dulken, head of research at Accendo Markets, said: “While a period of uncertainty until a successor is found would usually be a negative, the positive share price reaction suggests optimism that the replacement can better satisfy the board on the financial performance and strategic change front and get the shares back towards the 300p mark.”

At 09:15, Barclays shares were up 3.3% at 260.35p.

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