Barclays is looking to cut costs through structural changes as it seeks efficiencies in the face of falling profits. 

“We achieved around 200 million pounds of gross cost efficiency savings in Q1 out of our targeted 1 billion pounds for the full-year 2024,” Chief Executive C.S. Venkatakrishnan said today during the bank’s first-quarter earnings call. 

The London-based bank reported operating costs of 4 billion pounds ($5 billion), down 3% year over year.

Barclays is reaping the rewards of structural changes made in Q4 2023 relating to deploying technology, automation and digitalization, Chief Financial Officer Anna Cross said during the call. 

The bank’s target of $1.3 billion in savings in 2024 will be “driven by the structural cost actions we took in 2023, and half by prior and ongoing efficiency investments,” Cross said. 

THE BIG PICTURE: Many financial institutions, including Fifth Third Bank, Morgan Stanley and U.S. Bank, are reducing expenses. 

Morgan Stanley’s noncompensation expense, which includes tech spend, was $4 billion, down 2% YoY, the bank reported during its Q1 earnings call on April 16.  

Fifth Third said it saved $15 million in Q1 through automation. 

BY THE NUMBERS: For Q1, Barclays also reported: 

• Total income of $8.7 billion, down 4% YoY; 
• Investment banking income of $771 million, up 2% YoY; and 
• Net interest income of $1.9 billion, down 4% YoY. 

OF NOTE: In October, Barclays launched Demo Directory, a free platform where business founders can connect with investors to raise money and other growth initiatives, according to an October 2023 release from Barclays. 

“The platform is open to all founders; however, those likely to get the most out of the platform are ambitious, high-growth businesses who are investment-ready and looking to raise capital,” a Barclays spokesperson previously told BAN. 

Barclays tested the platform for 18 months before launching it in October and achieved 642 founder applications and 385 investor registrations without any marketing, the spokesperson said.  

The bank created the platform in-house and plans to provide the service for free for the growth of U.K. businesses. 

FLASHBACK: Barclays on Feb. 9 announced its plans to acquire retail giant Tesco’s consumer banking operations for $757 million. 

The acquisition will give Barclays “a healthy customer base and [expand] the audience they can reach,” Agustin Rubini, director analyst at think tank Gartner, previously told BAN. 

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