Barclays has unveiled plans to cut £2bn in costs across the business over the next two years as the British bank vowed to boost profits. 

Chief executive CS Venkatakrishnan, known as Venkat, will restructure the company into five separate operating divisions and pledged to hand £10bn back to shareholders by 2026.

He will lay out more details about his shake-up this morning, including potential job cuts. The shareholder hand out will come into the form of buybacks and dividends.

Venkat said: “Our new three-year plan, which we will be announcing at the Investor Update today, is designed to further improve Barclays’ operational and financial performance, driving higher returns, and predictable, attractive shareholder distributions.”

The bank took a £927m hit from restructuring as pre-tax profits slumped by 12pc to £6.6bn in 2023, slightly lower than forecasts and below the £7bn from last year. 

Profits were dented by a large restructuring charge in the final three months of 2023.

Income was £25.4bn, up slightly from the £25bn recorded in 2022. 

Venkat also upgraded the return on tangible equity from 10pc to 12pc by 2026, the first upgrade for seven years. 

The 58-year-old is under pressure to revive the bank’s fortunes. Since taking over more than two years ago the shares in the company have fallen by 27pc. 

The overhaul is the first since 2014, when former chief Antony Jenkins tried to trim back the investment bank after replacing former investment bank boss Bob Diamond. 

He left shortly after the shake-up to be replaced by former JP Morgan banker Jes Staley.

Venkat was parachuted into the role in November 2021 after former chief executive Jes Staley stood down to battle allegations about his links to disgraced financier Jeffrey Epstein, the sex offender.

The FCA later found Staley had not been frank about his relationship with Epstein, although he is appealing the decision.

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