Barclays opens brokerage firm to diversify income
Published on: October 07, 2016 06:35 (EAT)
Barclays Bank has opened a stock brokerage subsidiary as the bank looks to diversify its revenue lines. Barclays Financial Services will offer cash equity trading services, fixed income and bond trading and derivatives, as the bank cuts its reliance on interest income. Speaking during the launch, Barclays Bank Chief executive officer Jeremy Awori said the bank’s expansion will leverage on creating new opportunities. “A while ago we had talked about our agenda of diversifying business and investing in new revenue streams and one area we talked about was looking at the investment banking arm and brokerage business,” Mr Awori said. Banks are expected to look to new income generating businesses, following the capping of interest rates to remain profitable. Barclays Financial Services Limited will offer cash equity trading services, fixed income and bond trading and derivatives. The new brokerage is also planning to launch exchange traded funds, working closely with the Capital Markets Authority and the Nairobi Securities Exchange under the new NSE rules. Nairobi Securities Exchange CEO Geoffrey Odundo said the addition of market participants will ease trading on the capital markets. “The participation of Barclays in our markets is a clear indication of the exchange’s attractiveness as an investment destination,” Mr Odundo said.