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

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

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

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.

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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.