Barclays Plc (BARC), Britain’s second- largest bank by assets, named Jerry del Missier as chief operating officer, leaving Rich Ricci in sole charge of corporate and investment banking.
Del Missier, 50, the co-head of the securities unit since October 2010, starts his new job immediately, London-based Barclays said in a statement today. The position will involve managing computer systems, the bank’s back office and helping to implement firebreaks around its consumer division to meet future U.K. regulations.
“Jerry has an outstanding track record and long history of engagement in operations and technology, and I know he will deliver on this agenda at pace,” Chief Executive Officer Robert Diamond, 60, said in the statement
Ricci, 48, will alone manage a business that contributed 45 percent of the bank’s net revenue last year, according to data compiled by Bloomberg, in a role Diamond occupied before his promotion in January 2011. Diamond is selling assets and seeking to increase profitability to achieve a 13 percent return on equity, as regulators tighten banks’ capital requirements.
Resolution planning will be one of del Missier’s responsibilities, said Barclays. The U.K.’s Financial Services Authority said last year that banks should prepare so-called living wills setting out how they may be broken up with the least possible disruption to the economy if they collapse. The U.K. government is also adopting proposals, suggested by its Independent Commission on Banking, to build firebreaks around consumer banks.
“Recovery and resolution, and ring fencing are vitally important projects and getting to a 13 percent return on equity means you don’t want the main-line guys getting distracted,” Christopher Wheeler, a London-based analyst at Mediobanca SpA who has an outperform rating on the bank, said by telephone.
Del Missier’s move may be related to succession planning, Wheeler said.
“I don’t think you can ignore this from a succession perspective,” Wheeler said. “This is a very senior guy moving to a different, very senior role and it feels like he’s getting rounded experience as a possible successor to Bob Diamond,” Wheeler said. “But bank succession planning rarely runs smoothly.”
Del Missier steps into a position that hasn’t been filled since Paul Idzik left in 2008. The bank last month raised about $5.5 billion by selling its stake in BlackRock Inc. (BLK:US) and in February increased his cost-cutting target for next year to 2 billion pounds ($2.5 billion) to bolster profit.
Barclays fell 1.6 pence, or 0.8 percent, to 200.7 pence in London, valuing the company at 24.6 billion pounds.
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