Barclays Plummets as Bank Slashes Dividend in Plan to Shrink
- Bank plans to cut stake in Africa business for capital benefit
- Fourth-quarter profit falls short of analysts' estimates
Barclays CEO: Cutting Africa Will Allow Deconsolidation
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Barclays Plc fell the most in more than three years in London trading as investors balked at Chief Executive Officer Jes Staley’s pitch that more short-term pain will be necessary for the bank to right itself.
The lender cut its dividend for the next two years and said costs from its non-core division will rise by as much as 1 billion pounds ($1.39 billion) this year as it accelerates the unit’s wind-down, according to a statement Tuesday. The shares plummeted 8.1 percent to close at 158.1 pence in London, the most since June 2012. The stock has dropped 28 percent this year, more than any other large U.K. lender.