Barclays' restructuring in 90 seconds

Synopsis

Jess Staley, the new chief executive of Barclays, presents his first set of results on Tuesday, which disappoint investors. The bank reports an annual net loss of 394 million pounds, significantly worse than the previous year, and a pre-tax loss of nearly two billion pounds in the last quarter, largely due to a provision for UK customer compensation related to mis-sold insurance products. As a result, Barclays shares drop by nine and a half percent, nearing their 52-week low and down almost 40 percent over the past year. In response to these financial challenges, Barclays announces plans to sell its 62% stake in its African subsidiary over the next two to three years, restructuring around its UK retail bank and global corporate and investment banking unit. Additionally, the bank cuts its dividend by more than 50% for 2016 and 2017, citing regulatory pressures and the need to strengthen its capital buffer amid insufficient earnings.