Barclays investors said to demand talks over dividend cut

Some of Barclays’ leading investors are reportedly set to demand talks with the bank’s top independent director, Sir Gerry Grimstone, over its decision to slash its dividend this year and the next.

According to Sky News, a number of major Barclays shareholders want to meet Grimstone, who took over from Sir Mike Rake as deputy chairman less than 10 weeks ago.

It is understood the investors are unhappy about the decision to cut the dividend by more than half this year, with the same payout for 2017, following contradictory comments from chairman John McFarlane last year.

In a letter sent to staff last September, McFarlane said: ““We are taking action to accelerate earnings growth, return on equity and capital generation in order to have the capacity to invest in the business and to increase dividends.”

Last Tuesday, Barclays announced a drop in full year profit and a large cut to the dividend.

For the year to 31 December, adjusted pre-tax profit slipped 2% to £5.4bn and the bank announced a £1.45bn provision for PPI misselling.

Barclays also said it would slash its dividend by more than half to 3p per share this year and the next as it confirmed plans to sell its African business and focus on Barclays UK and Barclays Corporate & International.

At 1300 GMT, Barclays shares were down 0.3% to 173.30p.