LON­DON

The Pak Banker - - FRONT PAGE -

Bar­clays Plc is cut­ting 150 em­ploy­ees, in­clud­ing man­ag­ing di­rec­tors, at its in­vest­ment bank glob­ally as the firm shrinks its fixed­in­come oper­a­tions, ac­cord­ing to a per­son with knowl­edge of the mat­ter.

Jim McCormick, the Lon­don-based global head of as­set al­lo­ca­tion re­search, and Sharon Casey, a man­ag­ing di­rec­tor for in­ter­est rate sales in New York, were among the de­par­tures, said the per­son, who asked not to be iden­ti­fied be­cause they weren't au­tho­rized to speak pub­licly.

Bar­clays, which is los­ing its grip on Europe's fixed-in­come mar­ket to U.S. com­peti­tors, is trim­ming those oper­a­tions as reg­u­la­tion makes trad­ing debt less lu­cra­tive.

Even af­ter the bank's macro group, which in­cludes cur­ren­cies and in­ter­est-rate sales and trad­ing, gen­er­ated a 10 per­cent in­crease in rev­enue in the sec­ond quar­ter, Chair­man John McFar­lane plans to fo­cus on the less cap­i­tal­in­ten­sive debt and eq­uity cap­i­tal mar­kets busi­nesses.

James White, a Lon­don-based spokesman for Bar­clays, de­clined to com­ment. McCormick de­clined to com­ment. E-mails to Casey weren't im­me­di­ately re­turned.

Casey had been with the bank for more than a decade, while McCormick joined from hedge fund Co­mac Cap­i­tal in 2013.

The cuts are part of for­mer chief ex­ec­u­tive of­fi­cer Antony Jenk­ins's plan to cut 7,000 em­ploy­ees in the in­vest­ment bank by 2016, and the re­duc­tions are mostly tak­ing place at the di­rec­tor and man­ag­ing di­rec­tor level, the per­son said.

Bar­clays's in­vest­ment bank em­ployed 20,500 glob­ally as of the end of 2014.

So far, the re­vamp of the in­vest­ment bank has helped boost the shares. Bar­clays has risen 18 per­cent this year, mak­ing it the top-per­form­ing ma­jor U.K. bank stock.

The len­der re­ported a 8.8 per­cent in­crease in profit in the quar­ter this week, driven by its in­vest­ment bank, where there was a 35 per­cent jump in earn­ings, and its credit card oper­a­tions.

While fixed in­come is be­ing cut back, Bar­clays has bol­stered its ad­vi­sory and debt arm, mak­ing se­nior hires in ar­eas where it an­tic­i­pates a com­pet­i­tive ad­van­tage.

The bank added Barry Mey­ers from JPMor­gan Chase & Co. as head of the U.K. eq­uity cap­i­tal mar­kets team. He started this month as a di­rec­tor, a rank above his ti­tle at JPMor­gan. Bar­clays also hired Philip Shel­ley in Fe­bru­ary from Gold­man Sachs Group Inc., where he was co-head of U.K. cor­po­rate broking.

Bar­clays has added eight man­ag­ing di­rec­tors in the U.S. so far this year, with three of those in telecom­mu­ni­ca­tions, media and tech­nol­ogy, in­clud­ing Peter Co­hen, hired from Blackstone Group LP to run media bank­ing.

The Bri­tish len­der also cut em­ploy­ees from its Euro­pean as­set-backed se­cu­ri­ties unit in Lon­don this week, ac­cord­ing to three peo­ple fa­mil­iar with the mat­ter.

Chris Car­nell, head of Euro­pean ABS sales, and Stu­art Cal­nan, head of Euro­pean ABS trad­ing are no longer with the bank.

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