Confirming details of the outcome of a strategic review, chief executive Antony Jenkins promised to make Barclays a “values-driven business”. He adds the reputational damage it suffered in 2012 stemmed from a culture in the sector that is “too aggressive, too focused on the short term and too disconnected from the needs of customers and clients, and wider society”.
Barclays’ brand took a hit in July 2012 when it was fined millions by the City watchdog for manipulating the rates banks use to lend to each other – LIBOR – a scandal that led to the resignation of chief executive Bob Diamond and a barrage of negative headlines about corporate greed.
Jenkins adds: “Under my leadership, Barclays will become a valuable and sustainable institution for all our stakeholders by aligning behind a common purpose: helping people achieve their ambitions – in the right way‟. This will be delivered by embedding five core values: respect, integrity, service, excellence and stewardship. By building this culture, I am confident that Barclays can become the ‘Go-T’ bank for all our stakeholders,” he says.
His comments chime with the marketing approach of its retail banking business. The bank is focusing its marcomms on developing “you shaped banking” and is soliciting opinions from retail customers that will be used to develop future products and services.
Barclays has also today (12 February) announced pre-tax profit fell sharply to £246m in the 12 months to 31 December 2012, down from £246m. Income was hit by £850m put aside to compensate customers mis-sold payment protection insurance and a number of accounting adjustments.
To offset the loss and reflect the increased focus on its UK retail baking operations, the bank also confirmed it is to cut 3,700 jobs across its corporate and investment bank and European retail businesses.
It also announced the closure of the controversial structured capital markets business unit, which offered companies advice on tax avoidance.