Page 26 - ARUBA BANK 2 MARCH 2016
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BUSINESS A25
Wednesday 2 March 2016
Barclays shares dive as bank restructures, sees profit fall
DANICA KIRKA The sign on a branch of Barclays Bank in London, Tuesday, March 1, 2016. Barclays PLC has re- investment banking.
Associated Press vealed plans to split itself into two as it reported a big fall in fourth-quarter profits. The bank said “The new boss Jes Staley is
LONDON (AP) — Barclays Tuesday its adjusted pretax profit, which includes one-off items like provisions to pay for mis- clearly taking a big broom
saw its shares slide Tuesday selling policies in the U.K., fell by more than a half to 247 million pounds ($344 million) from the to Barclays’ operations in
after the bank revealed year before. a bid to dramatically sim-
plans to split itself into two, plify the group,” said Laith
simplify its operations and (AP Photo/Kirsty Wigglesworth) Khalaf of Hargreaves Lans-
cut its dividend amid weak- down stockbrokers. “When
er earnings. is now 62 percent owned former CEO Antony Jenkins a more ethical approach the dust has cleared, the
The bank said its fourth by Barclays and has 12 mil- was pushed aside amid to his company’s opera- bank should have two high
quarter adjusted pretax lion customers across 12 concerns about the perfor- tions after he took charge quality financial services
profit, which includes one- countries. mance of Barclays’ invest- in wake of allegations Bar- divisions, and the potential
off items like provisions to New CEO Jes Staley says ment bank. Staley began clays was involved in the to offer investors a decent
pay for mis-selling policies Barclays PLC “is fundamen- his career as a commercial manipulation of a key glob- dividend, but it’s going to
in the U.K., fell by more than tally on the right path, and banker and advanced to al interest rate called the take some elbow grease to
a half to 247 million pounds is, at its core, a very good- head J.P. Morgan’s global London interbank offered get there.”
($344 million) from the year business.” investment bank. rate, or LIBOR. He sought to The bank also offered a
before. Staley was brought in after Jenkins had championed reduce the importance of warning about the uncer-
The London-based firm’s tainty regarding operations
restructuring plan is part of in the event that Britain
new rules to separate riskier votes to leave the Euro-
investment banking from pean Union on June 23.
retail banking. Such ring- It argued the vote “raises
fencing is meant to keep the possibility of a disrup-
people’s savings secure in tive an uncertain exit from
the event of another finan- the EU, with attendant con-
cial crash. sequences for investment
The bank said it would pay and confidence.”
a lower dividend this year It described the period fol-
and next year, leading lowing a vote in favor of
shares to fall 8 percent to leaving as having “unpre-
158.10 pence. dictable implications on
The bank also announced market conditions.”
plans to sell down its stake “We think it is in the inter-
in its African operations ests of our customers and
over the next three years to clients for the UK to remain
a non-controlling position. in the EU,” Chairman John
Barclays Africa Group Ltd. McFarlane said.
Honeywell walks away from $90B bid for United Technologies
NEW YORK (AP) — Hon- and that “they would take tions. United Technologies space sector. Honeywell, fire alarms.Shares of Honey-
eywell abandoned a bid it very seriously.” said Tuesday that Honey- based in Morris Plains, New well International Inc. rose
worth more than $90 billion At some point the mood well’s retreat “is the ap- Jersey, also makes thermo- $3.23, or 3.2 percent, to
for rival United Technolo- soured however, and Hon- propriate outcome given stats and security systems. $104.58 in morning trading
gies, saying it did not want eywell says United Technol- the strong regulatory ob- United Technologies, of Tuesday. United Technolo-
to force a deal with an un- ogies has since been unwill- stacles.” Both companies Farmington, Connecticut, gies Corp. shares fell $3.07,
willing partner. ing to engage in negotia- are big players in the aero- also makes elevators and or 3.2 percent, to $93.55.
United Technologies re-
jected the offer last week, Open House
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industrial conglomerates Reduced to Price $245.000
would never be approved Must Sell Now
by anti-trust regulators.
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