Barclays Profitability Likely to ‘Suffer in Short Term’: Moody’sDonal Griffin
Moody’s Investors Service says in note that measures taken by Barclays are positive for long-term capital and funding, while weakening current profitability. *Accelerated rundown of non-core assets “will initially weaken the firm’s profitability” *Disposal of most of the African business “will reduce revenues and earnings diversity” *“These immediate challenges will be balanced by the eventual reduction in the complexity and operational risk *Earnings ‘‘diluted by the downsizing of the investment bank, high operating costs and significant conduct and litigation charges’’ **‘‘Tail risk of ongoing probes and prospective conduct-related litigation remains considerable’’ *NOTE: Link
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