Barclays bank has decided roll-off their Africa business by selling off 62% share in the Barclays Africa Group over the next 2 to 3 years. The move was confirmed by Barclays PLC Chief Executive Jes Staley. The move comes after Barclays reported a 2% drop in profit. Staley has laid out a plan for the bank to simplify and reorganize its structure and focus more on the ‘Transatlantic’ business coming from US and UK. Barclays posted a profit drop from 5.5 billion pound to 5.4 billion pound YoY. The drop also resulted in a 3 pence cut in dividend per share.
Staley said in his statement that Barclays is on the right path. Analysts reported that cut in the dividend will create some negativity in the market but in the long run the cut will counteract against capital weakness. After the result announcement, the shares of Barclays fell by some 10.5%. under Staley, Barclays has made a lot of cuts to remain profitable including shutting down its business in Asia. Most of these moves were made to cut costs.