Barclays reported profit decrease of 50% in Q4 2015, amounting to 247 million GBP. The shares of British banking giant plunged by nearly 11% today after the bank announced plans to split its division, simplify operations and reduce dividends amid lower revenues. The plan for restructuring of Barclays is part from the implementation of the new rules for dividing the more risky investment banking from retail banking, which should protect the savings of depositors in the event of another bank collapse.
The restructuring plan includes simplify the business structure to two subsidiaries divided on geographical features – Barclays UK and Barclays Corporate and International. The first will be responsible for operations in UK, while the other will manage the international offices of the bank.
Barclays pointed out that this and next year will pay lower dividends. In 2015 the bank plans to pay a 6.5 pence per share, but in 2016 the dividend will decrease to 3 pence per share. Barclays announced plans to reduce its share of the division in Africa in the coming three years. Now the group holds 62% of Barclays Africa Group, which has 12 million customers in 12 countries.