British lender Barclays Plc. (BCS, BARC.L) Tuesday said it plans to cut at least 3,700 positions globally in 2013, after reporting a loss for fiscal 2012.
Based on the results of a strategic review it conducted, the lender intends to eliminate 1,800 positions in the Corporate & Investment Bank and 1,900 in Europe Retail and Business Banking. This is expected to result in a restructuring charge of close to 500 million pounds in the first quarter of 2013.
The firm plans to deliver a return on equity in excess of the group cost of equity in 2015, which is assumed to remain at the current 11.5 percent level.
Total cost base is expected to be reduced by 1.7 billion pounds to 16.8 billion pounds in 2015, including interim cost estimates of 18.5 billion pounds for 2013 and 17.5 billion pounds in 2014. The firm will close the Structured Capital Markets business unit
For the fourth quarter, pre-tax loss was 466 million pounds, as against a profit of 813 million pounds last year. Adjusted pre-tax profit jumped to 1.09 billion pounds from 528 million pounds.
Quarterly loss attributable to equityholders of the parent was 835 million pounds compared to a profit of 356 million pounds last year.
Loss attributable to equityholders of the parent was 1.04 billion pounds for the year compared to a profit of 3.01 billion pounds in the prior year. Profit before tax plunged to 246 million pounds from 5.879 billion pounds.
The lender recorded Provision for PPI redress of 1.60 billion pounds, compared to 1 billion pounds last year. Further, the bank also took an 850 million pounds provision for interest rate hedging products redress.
Total income declined to 25.291 billion pounds from 33.033 billion pounds, amid declines in Net interest income, Net fee and commission income as well as Net premiums from insurance contracts.
Net trading income plunged to 3.025 billion pounds from 7.660 billion pounds while Net investment income declined to 817 millionm pounds from 2.305 billion pounds.
Credit impairment charges fell 5 percent to 3.596 billion pounds, reflecting improvements in Barclaycard, Corporate Banking and UK RBB.
Businesswise, Investmentbank income grew 13 percent to 11.722 billion pounds, as Fixed Income, Currency and Commodities or FICC income improved 17 percent and Equities and Prime Services income increased 14 percent. Investment Banking income increased 5 percent from last year.
Wealth and Investment Management income rose 4 percent to 1.815 billion pounds, driven by an increase in the High Net Worth businesses.
Corporate Banking income dropped 6 percent to 2.918 billion pounds while net operating income advanced as a result of credit impairment charges and other provisions.
UK Retail and Business Banking's income fell 5 percent in the year to 4.454 billion pounds, reflecting higher funding costs and reduced contribution from structural hedges.
Europe Retail and Business Banking income declined 26 percent to 1.274 billion pounds, amid challenging economic environment across Europe and non-recurrence of gains from disposal of hedging instruments in 2011.
Barclaycard's income rose 2 percent to 4.17 billion pounds, helped by growth across the business and contributions from portfolio acquisitions.
Looking ahead, Barclays said performance in January has shown a good start to the year across the Group. As part of the TRANSFORM program, the lender continues to focus on costs, returns and capital to drive sustainable performance improvements.
Barclays will pay a final cash dividend of 3.5 pence per share for 2012 on March 15, giving a total declared dividend of 6.5 pence per share for the year.
Antony Jenkins, Chief Executive, said, ''Our goal is to make Barclays the 'Go-To' bank for all our stakeholders. The plan that we set out today is critical to delivering that goal.
BARC.L closed up 1 percent on Monday at 301.50 pence.
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