Barclays to lean on AI as it targets 2bn cost cuts and 15bn capital return

Barclays plans to harness artificial intelligence and other technology to drive productivity improvements and enhance customer experience while pursuing roughly £2 billion of gross efficiency savings over the next three years. The bank has committed to returning more than £15 billion of excess capital to shareholders by the end of 2028, reflecting stronger profitability and capital generation across the group. The strategy continues a restructuring that shifts focus away from volatile investment banking toward steadier UK retail, corporate and private banking revenues. The turnaround has lifted investor confidence, with Barclays shares rising about 240% over two years despite recent M&A setbacks.

"Barclays is turning to artificial intelligence to power the next phase of its turnaround, as the bank targets around £2 billion of cost savings and commits to returning more than £15 billion of surplus capital to shareholders by the end of 2028. C.S. Venkatakrishnan, the chief executive, widely known as Venkat, said the bank would pursue about £2 billion of gross efficiency savings over the next three years, alongside increased investment in technology, including AI, to improve productivity and customer experience."

"The commitments form part of a new set of three-year targets unveiled alongside Barclays' full-year results, marking the next stage of a restructuring that has already delivered a sharp re-rating of the bank's shares. Under the plan, Barclays expects to hand back more than £15 billion of excess capital to investors by the end of 2028, reflecting stronger profitability and capital generation across the group."

Read at Business Matters