At last. A universal bank – Barclays – has appointed a CEO,
Antony Jenkins, from a retail banking background.
Jenkins’ track record at Barclaycard makes favourable
reading.
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As CEO, he can prove that a background in investment banking is not
a pre-requisite to hold the top job. 
And in keeping with the ‘new normal’ back to basics or safety
first era of banking, a safe pair of hands is exactly what Barclays
needs.
His retail banking background also fits in
perfectly with Barclays more traditional role as a Quaker-formed
conservative and cautious lender.
A number of less than kind commentators have
commented upon a lack of personal charisma; lacking star-quality
said one observer; unexciting said another.
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By GlobalDataBarclays has probably had its fair share of
excitement and charisma for the short-to-medium term.
Jenkins’ retail banking unit contributed
almost one-half of group profits in 2011 compared with 46% from the
bank’s investment banking division.
Barclays is an excellent example of a strong
and profitable bank and is a very good example of a successful
universal bank.
In the six months to 30 June, Barclays posted
an adjusted profit before tax up 13% to £4.323bn with improvements
of 15% at Jenkins’ Retail and Business Banking unit; 11% in
Corporate and Investment Banking and 38% in Wealth and Investment
Management, demonstrating the strength of its universal
banking model.
The Barcap unit has shown an ability to cut
its costs (down by 12% in fiscal 2011 and by a further 3% in the
first half of 2012 with revenues 4% up).
Barclays’ loans to deposit ratio continued to
move in the right direction (improving to 111% from 118% in
2011).
Barclays’ adjusted cost-income ratio also
improved in the first half, to 61% (2011: 64%).
Looking ahead, revenue will remain under
pressure but Barclays is well placed to make further market share
gains while Jenkins’ focus on expenses is likely to result in
further progress in cutting costs.
A number
of outstanding retail bankers around the world – arguably some with
even stronger credentials than Jenkins – ought to be in the running
the next time a job of similar stature becomes available.
If any headhunters are short of names top
consider when the next CEO role becomes vacant, they might care to
glance at some of the distinguished names shortlisted for the
recent RBI Award for Retail Banker of the Year.
There is no guarantee – there never can be –
that Jenkins will be a major success in his new role but the odds
are that he will perform strongly.
There are also good odds to suggest that it
will not be long before other major banks opt for a safe banks with
a retail banking background when the top job is up for grabs.
