Barclays Plc (NYSE:BCS) CEO, the Euro region will survive
Barclays Plc Chief Executive Officer, Robert Diamond, said the Euro region will survive even as the debt crisis slows economic growth and weakens the currency.
The underpinnings of the single currency, the underpinnings of the integrated economy across Europe are very, very strong, Mr. Diamond said in a interview in Hong Kong Wednesday. We are going to continue to see some event risk as we, in our opinion, march toward, over the next couple of years, closer to fiscal and political integration.
Our commitment is very, very serious around creating returns across all of Barclays that are comfortably ahead of the cost of equity, Mr. Diamond, 60 anni, said.
He reiterated the goal of boosting return on equity, a measure of profitability, to 13%. Britain's 2nd biggest bank by assets has not set a deadline for achieving the target as the environment, including global interest rates, would have an impact, he said.
Still, the bank is seeing some positive signs with all three of its biggest units posting improvements in Q-1, he said.
Mr. Diamond is selling assets and focusing on the most profitable operations to help meet his ROE target.
The lender last month raised about $5.5-B by selling its entire stake in BlackRock Inc.(NYSE:BLK) before the latest round of Basel rules stops it from counting the holding as capital.
He also sold the bank's consumer and commercial bank operations in Russia in October and a private equity unit in November.
Mr. Diamond expanded the investment bank by acquiring the North American unit of Lehman Brothers Holdings Inc. during the Y 2008 financial crisis, and added 2,000 bankers in Europe and Asia to build out the lender's equities business.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.