Barclays drafts in McKinsey to find savings in investment banking arm

Barclays has enlisted the services of global consultancy giant McKinsey to identify potential areas for cost-saving within its investment banking division.
The FTSE 100 bank is aiming to streamline its investment bank, with consultants scrutinising the front office, finance, risk and technology divisions, as reported by City AM.
Consultants will be investigating any duplication of work and the possibility of automating tasks, according to sources who spoke to Bloomberg.
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It's already been reported that Barclays is considering cutting up to 200 jobs in this division as it seeks to enhance returns in the business.
The investment bank division is the company's largest and saw a 16 per cent increase in revenue in the first quarter of the year, reaching over £3.9bn. This was driven by increased transactional activity in global markets following numerous share sell-offs ahead of President Donald Trump's extensive tariffs on trading partners.
Barclays recorded a pre-tax profit of £2.7bn for the quarter, surpassing the £2.5bn predicted by analysts.
McKinsey has been collaborating with Barclays on this project for six months and will pinpoint target areas before proceeding to execution.
However, the consultancy firm emphasised that these cost-cutting measures do not indicate any reduction in market activity.
Chief executive C. S Venkatakrishnan, also known as Venkat, unveiled a new strategy in February 2024 to save nearly £2bn across the bank by 2026.
Barclays has announced: "In line with the strategy we announced in February of 2024, we are focused on simplifying our processes to better serve our clients."
This comes after competitor HSBC commenced job cuts within its investment bank division, aligning with CEO Georges Elhedery's restructuring plans for the bank.
The division is poised to shed various segments of its operations in the UK, US, and Europe, as the company shifts its focus towards a new growth strategy centred on Asia.

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