Barclays to prune mainland European, Asian operations

The U.K.'s Barclays plc Tuesday, Feb. 12, hinted at disposals in mainland Europe and in Asia as it focuses on the U.K., U.S. and Africa and prepares to cut at least 3,700 jobs across the organization.

Among a series of targets largely stipulated for 2015, Barclays aims to cut costs by £1.7 billion ($2.66 billion) to £16.8 billion; slash risk-weighted assets; improve returns on equity; lift its Tier One ratio; and pay out an eventual 30% in dividends.

The initiatives are the outcome of a review which CEO Antony Jenkins (pictured) began after he was catapulted into the role last summer from the retail banking division after a storm over LIBOR rigging led to the ouster of Barclays CEO, chairman and chief operating officer. Authorities are currently investigating the circumstances surrounding a £7 billion Middle Eastern cash infusion into Barclays in the fall of 2008 which avoided the need for state rescue funding, while Barclays, like other major U.K. banks, is also under fire for mis-selling insurance products to small businesses and homeowners.

"We intend to change what Barclays does and how we do it and have set out clear commitments against which our progress can be measured," said Jenkins in a statement.

Barclays said it would "focus investment in the U.K., U.S. and Africa, whilst maintaining an appropriate presence across Europe and Asia to support our global investment banking franchise" and would "reposition Barclays European and Asian Equities and investment banking division businesses to reflect the market opportunities and maintain a relevant proposition for our clients."

It will close its structured capital markets unit.

Barclays didn't say exactly what it would shed in Europe or Asia or how it would exit those operations. It is due to provide further information on the plans in an investor presentation later Tuesday.

The job cuts will include 1,800 from corporate and investment banking and 1,900 from European retail and business banking. Barclays currently employs about 140,000. The changes will trigger a £500 million restructuring charge in the first quarter.

Barclays released news of the review as it announced adjusted pretax profit of £7.05 billion, up from £5.59 billion in 2011, but slightly below consensus forecasts.

Barclays Capital contributed £4.1 billion, or 58% of group profit, a rise of 37% year-on-year.

During the year Barclays took at £1.8 billion provision to cover compensation to buyers of mis-sold payment protection insurance, and £850 million was earmarked to compensate business owners that bought interest-rate hedging products.

The lender's shares were little changed in early trading, valuing its equity at £37.1 billion.