Barclays Expands Wealth Management Operations

LONDON (Reuters) – Barclays (LON:BARC) aims to hire up to 100 more advisers to drive growth in its private banking and wealth management business but has ruled out a push into the United States due to fierce competition and high costs of entry.

Sasha Wiggins, chief executive of Barclays Private Bank and Wealth Management, announced on Tuesday that the lender had identified approximately 4 million Barclays UK customers with investable assets ranging from £250,000 to £3 million who could benefit from enhanced wealth management services.

"The UK is a large market with client investable assets totaling around £3.5 trillion ($4.45 trillion), spanning digital investing, affluent, and private banking segments," Wiggins stated during a presentation to analysts in London.

She added, "It's a significant opportunity, both for the individual but also for the economy," outlining plans to increase headcount and expand training for existing staff.

Barclays joins several major international banks, including HSBC and Standard Chartered (OTC:SCBFF), in seeking to bolster growth in their wealth management capabilities in response to declining revenues from lending in an environment of falling central bank base rates.

Aside from the UK, Wiggins mentioned that Barclays is pursuing market share in Singapore, India, and the Middle East, while the United States is "not a priority."

In addition to the hiring surge, Wiggins announced plans to increase the bank's annual technology spending in the business by over 75% compared to 2021-2022 levels, although she did not provide specifics.

She dismissed the idea of acquisitions to accelerate growth, asserting, "I have every confidence I can deliver this plan organically."

This year alone, Barclays has reportedly grown its net new assets under management by £3 billion, roughly double the growth seen during the same period last year. Wiggins reiterated the bank's targets to achieve an annual return on tangible equity exceeding 25% by 2026.

($1 = 0.7857 pounds)