British lender Barclays (BCS) has announced a strategic overhaul of its operations after reporting a fourth-quarter net loss of £111 million ($139.8 million U.S.).
The latest loss from Barclays was much worse than expected. Analysts had forecast a net profit of £60.95 million for Q4 2023.
For all of last year, Barclays reported a net profit of £4.27 billion, down from £5.02 billion in 2022 and below forecasts of £4.59 billion.
The bank said that it took a £900 million charge in Q4 from structural cost-cutting measures, which are expected to result in savings of about £500 million this year.
Along with the disappointing financial results, Barclays announced a major operational overhaul, including substantial cost cuts, asset sales, and a reorganization of its business divisions.
Going forward, the bank will be divided into five operating divisions, separating the corporate and investment banking sides of the lender.
The new operating divisions will be known as Barclays U.K., Barclays U.K. Corporate Bank, Barclays Private Bank and Wealth Management, Barclays Investment Bank, and Barclays U.S. Consumer Bank.
Barclays added that it is targeting total cost savings of £2 billion by 2026.
The lender also announced an additional share buyback of £1 billion and promised to return £10 billion to shareholders by 2026 through dividends and stock repurchases.
The stock of Barclays has declined 10% over the last 12 months to trade at $7.47 U.S. per share.
