NEWS ANALYSIS: Scepticism and probes cast shadows over Barclays second-quarter earnings
Investors are not convinced CEO Jes Staley can turn the bank into a rival for Wall Street’s top tier, and will ask awkward questions about probes of his conduct and a fraud scandal
London — Barclays CEO Jes Staley will strive to silence a chorus of sceptics when the lender reports second-quarter earnings on Friday. The shares are trailing all other European banks in 2017 after it missed out on what was a stellar first quarter for debt and equity trading revenue at most investment banks. While Staley has shrugged off criticism, investors remain concerned that his bet that Barclays can compete with the top tier of Wall Street is not paying off. Staley has thrown his weight behind the investment bank in London and New York, while shrinking elsewhere, arguing it provides a counterbalance to the lender’s more profitable retail and card businesses. The latter divisions could also face difficult UK market conditions amid Brexit and a possible consumer credit bubble. Following muted activity at US rivals, expectations are even lower this time for the securities unit, with JPMorgan Chase analysts predicting Barclays’ fixed-income trading fell 16% in the period. "Barcla...
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