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Barclays warns of further job losses amid restructuring as annual profits fall 2%

09:52 01 March 2016

Barclays has announced a fall in annual profits after making a further provision for PPI mis-selling claims.

Barclays has announced a fall in annual profits after making a further provision for PPI mis-selling claims.

Barclays today reported a fall in annual profits as it announced a group-wide shake-up and took a further hit for payment protection insurance (PPI) mis-selling.

The banking giant posted underlying pre-tax profits of £5.4billion for 2015, down 2% in the previous year.

The results came as Barclays said it would split the group into two divisions – Barclays UK and Barclays Corporate and International – and “sell down” its stake in its Africa business over the next two to three years.

It also announced that it would take another PPI charge of £1.45bn, taking its total to £7.42bn.

Barclays added that staff bonuses for 2015 would total £1.7bn, down from £1.9 billion the year before, with last year’s figure including £976million within its investment banking business, down from £1bn in 2014.

And it added that £661m of bonuses for 2015 across the group were deferred, including £579m of awards within investment banking.

Barclays said it was splitting the group into two divisions as part of ring-fencing rules to separate riskier investment banking from retail banking in order to protect public savings in the event of another financial crash.

Jes Staley, group chief executive, said the performance showed Barclays “is fundamentally on the right path, and is, at its core, a very good business”.

Barclays said it would cut its 6.5p total dividend for 2015 to 3p for 2016 and 2017, as it presses ahead with the sell-off of its non-core businesses.

The bank said it had cut 5,700 jobs since enforcing a recruitment freeze last autumn and warned that the continuation of this freeze, coupled with the ring-fencing shake-up and the sell off of its non-core businesses, including Africa, would lead to significantly more job losses in the future.

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