The revenues nose-dive at the division built up under Jenkins' predecessor,
Jenkins, named as Diamond's replacement in the wake of the 2012
The first quarter trading updating showed that pre-tax profit at the investment banking division - the traditional powerhouse of the bank - fell by 49% to pounds 668m largely because of a downturn in the part of the business that trades commodities, bonds and currencies. That performance dragged the total group's profits down by 5% to pounds 1.7bn, despite a 20% rise in the high street bank.
The retail arm did not take a new provision for payment protection insurance although there was a spike in claims in March.
Jenkins was criticised for the bank's policies at last month's annual general meeting, particularly after he defended a decision to increase bonuses in 2013 even though profits fell. He warned the bank risked a "death spiral" of staff leaving without the higher bonuses.
He said his strategy review "will address issues underlying the performance challenges we have recently experienced, including positioning the investment bank for the new operating and regulatory environment".
The investment bank's pay bill fell 20% to pounds 1.1bn in the first quarter but rose as a percentage of income owing to falling revenues. Morzaria said pay had fallen less than income because bonuses for previous years were included in the figures. He said
"Our fixed compensation was down 8% year-on-year . . . it gives you a sense of how we are managing our cost base there."
Its outlook statement indicated cutting costs of the business - a potential indication of job cuts - was likely to continue. "We continue to be cautious about the trading environment and . . . remain focused on structurally reducing the cost to improve returns," the bank said.
Barclays HQ in
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