Private client investment: Barclays set for hiring spree
Wealth management arm put on course to “grow by multiples”. The appointment of Thomas Kalaris as chief executive of Barclays Wealth Management signals the start of a rapid build-up.
|“The object over the next three to
five years is to grow not
marginally but by multiples”
The appointment of Thomas Kalaris as chief executive of Barclays Wealth Management signals the start of a rapid build-up of a business that has been a little-noticed makeweight in the investment banking and investment management division of Barclays run by Robert Diamond. Diamond is now signalling his intention to grow it in the same way as he grew Barclays Capital and BGI. It will be good news for Barclays shareholders if he succeeds. Analysts at Merrill Lynch calculate that the valuation of Barclays Capital grew from about £4 billion in 2001 to £10 billion ($17.6 billion) in 2005 and of BGI from roughly £1 billion to £6 billion. But during this period the wealth management division seemed to slide into obscurity amid divisional restatements. So it’s almost a surprise to see that the ragbag of 850-odd UK regulated financial advisers, Barclays Stockbrokers, Gerrard Investment Management and International Personal, Premier and Corporate Banking, already amounts to a business with £74 billion of customer funds delivering half-year 2005 pre-tax profit of £89 million.