The British bank Barclays is studying a strong restructuring that could include the dismissal of some 2,000 workers in the administrative and technology sectors, as well as the elimination of 2,500 clients among the least profitable.

The drastic measure is aimed at reducing costs by one billion pounds and, in addition, increasing its profits, as was learned this Tuesday.

In this regard, the union is putting pressure on the bank to avoid these layoffs. The organization’s secretary, Sharon Graham, has described the layoffs as shameful and believes that the bank is only seeking to increase its profits.

Throughout this year, Barclays executives have met to discuss this restructuring plan, codenamed Minerva, and which responds to “the pressures on the entity and its CEO, Coimbatore Venkatakrishnan, to return more capital to its investors, which would imply reducing the weight of this division of the banking entity.”

Among the measures that the bank has also addressed is raising capital “to buy a wealth management business or undertake a drastic reduction of commercial assets at the investment bank of up to 25 %.”

In any case, if the drastic reduction of clients in the lower profitable sectors is applied, the entity could release 20,000 million pounds in risk-weighted assets.

M.Pino

Source: bolsamania

(Reference image source: Matthew LeJune, Unsplash)

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La entrada Barclays studies reducing client portfolio and layoffs apareció primero en Bitfinance.

International financial institutions are entering the blockchain ecosystem. This was highlighted in the research carried out by the Blockdata consultant, which reflects that “55 of the 100 main fundamental banks have investment participation in blockchain technology companies, crypto initiatives or specific projects through subsidiary companies.”

This trend has been increasing in the market of the cryptocurrencies for months, so financial companies are more focused on developing projects and initiatives related to crypto assets in order to provide better and innovative services to their customers.

The study also emphasizes that the custody service occupies 25 % of participation in the 100 larger banks. “Financing in startups blockchain has grown considerably, to double the levels reached in 2020″, stresses the Blokdata document.

The growth of the demand of users to invest in cryptocurrencies, the income that new companies in the sector have reported, as well as the regulatory and legal measures that States and Governments are taking with respect to the crypto coins are determining factors for the traditional financial sector to participate in this new market.

Blockdata said that within the actors who participated in the study are Barclays, Citigroup, Goldman Sachs, JPMorgan and BNP Paribas, which offer you, within its product portfolio, different investment initiatives in digital assets for its users.

M. Rodríguez.

Source: themoneypost.io.

La entrada Major international banks have investments in blockchain projects apareció primero en Bitfinance.

The financial entity Bankinter presented the banking results that reflected the return to the pre Covid-19 business and beat market forecasts, even without taking into account the capital gain obtained by the entity from the breakdown of the insurance direct line business, which amounted to 895.7 million euros, with positive impact on its profit in the first six months of the year, at 1,140 million.

Analysts estimate that the rest of the big banks also show signs of recovery. “We expect Santander, BBVA and CaixaBank to show good results, due to better revenue and cost trends in Europe in the case of Santander. While BBVA and CaixaBank could surprise with better provisions and capital. Sabadell’s results are mixed,” explained Barclays specialists in a recently published report.

Despite the uncertainty that still prevails about the setback that the Delta variant of Covid-19 may entail in the health crisis, improvements are expected in the cost of risk, both in the registered and in the future, of the Spanish entities and “resilience” in capital metrics.

Less provisions and better risk value

According to the opinions of the specialists, the objective will be focused on the evolution of the interest margin, which is pressured by the negative interest rate scenario that has prevailed in the euro zone for years and has lasted longer than expected, as well as in provisions intended to cover credit defaults.

Barclays considers that provisions for “loan defaults will fall 24 % compared to a year earlier in the case of Santander, 18 % in BBVA, 59 % in CaixaBank and 44 % in Sabadell.”

This scenario, with a lower provisioning, impacts on the improvement in the cost of risk observed in recent quarters and will also be reflected in the accounts for the first half of the year, if capital levels remain stable.

According to the analysis by Alvarez & Marsal, the cost of risk for Spanish banks increased threefold last year compared to pre-pandemic levels, to 0.84 %, while in the first quarter of 2021 it fell to 0.56 %.

Specialists also expect good results regarding liquidity. “The general trend will be one of maintenance or some improvement, which in many cases will depend on the regulatory impacts pending to be collected, but which in any case should be offset by the organic generation of capital.”

M. Rodríguez

Source: elespañol.com

La entrada Banking sector in Spain recovers the cost of risk and capital apareció primero en Bitfinance.