Barclays Investment Bank Gains Market Share in Advisory

Barclays investment bank is expanding its presence in deal advisory and equity capital markets to enhance returns, say co-heads in recent presentation.

Barclays investment banking division (BARC.L) is experiencing a notable uptick in market share within the realms of deal advisory and equity capital markets, a development that aligns with the institution's overarching objective to enhance returns. This assertion was articulated by the co-heads of global investment banking during a presentation directed at analysts and investors on Tuesday.

These advancements are a direct consequence of a comprehensive strategic overhaul initiated by CEO C. S. Venkatakrishnan in February, which seeks to bolster profitability by honing in on the bank's core operations within the UK and restructuring its organizational framework. The fruits of this labor are evident, particularly following an extensive reorganization of the bank's sector coverage and a targeted investment in human capital across pivotal sectors, including Energy Transition, Industrials, Healthcare, and Technology.

Since the strategic pivot in February, Barclays has embarked on a series of in-depth presentations—dubbed "deep dives"—into each of its divisions, with the latest session spotlighting the investment bank. This segment of the business, encompassing activities such as deal-making and global markets trading, has come under scrutiny as Barclays endeavors to rationalize its capital allocation in relation to performance metrics.

As of June this year, the investment bank is responsible for approximately 47% of the group's income, yet it consumes nearly two-thirds of the institution's risk-weighted assets. In a bid to rectify this imbalance, the bank has set an ambitious target to reduce this consumption to around 50%. The intricate dance of capital allocation and performance optimization continues to unfold, as Barclays navigates the complexities of the financial landscape with a renewed sense of purpose and strategic clarity.