Barclays plans to leverage its strength in investment banking and technology to prepare for a turbulent year ahead in the region amid trade wars and recession risks, after the UK banking group produced its best returns on equity since 2021 last year.

"There's a lot of risk in the market at the moment, with geopolitical instability, trade wars, trade tariffs and controls, cyber threats, inflation and interest-rate uncertainty creating an increasingly dynamic environment for financial institutions and our clients," Rachel Huf, CEO of Barclays' Hong Kong branch, said in an interview.

The group's statutory return on tangible equity rose to 10.5 per cent in 2024 from 9 per cent in 2023, the highest since a 13.1 per cent gain in 2021. It aims to deliver 11 per cent in 2025 and 12 per cent in 2026, aided by cost and efficiency savings, according to its latest financial reports.

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While Barclays does not disclose the geographic breakdown of its income, Huf said its Asia-Pacific operations had consistently delivered double-digit returns on tangible equity over the past five years to showcase its resilience and ability to compete with US and Japanese banking rivals in the region.

Barclays ranked fifth in global debt capital markets as bookrunners in 2024, according to data compiled by Dealogic, trailing JPMorgan, Citigroup, Bank of America and Morgan Stanley. It ranked sixth in equity capital markets, behind the four US investment banks plus Goldman Sachs. Barclays was not placed in the top 10 in Asia-Pacific league tables.

"Our international investment bank's key strength is helping clients address these challenges, ensuring we support them through this turbulent period," said Huf, who assumed the top post in Hong Kong in 2023. She is also the bank's general counsel for Asia-Pacific since 2015.

She added that the bank was focused on finding solutions for clients and boosting its research on the impact of artificial intelligence (AI) developments like DeepSeek. Barclays has embraced automation, even before the global focus on AI adoption, by investing heavily in technology to bolster its electronic trading business in Hong Kong.

Barclays Plc is aiming to boost its return on tangible equity to about 11 per cent in 2025 and 12 per cent in 2026. Photo: Reuters alt=Barclays Plc is aiming to boost its return on tangible equity to about 11 per cent in 2025 and 12 per cent in 2026. Photo: Reuters>

Hong Kong, where Barclays had a presence for more than 50 years, serves as the hub for its China cross-border business and regional hub for equities and investment banking. In January, it hired Paul Johnson from Goldman Sachs to lead its Asia-Pacific equities business. Hong Kong is also a major hub for fixed-income and currency businesses in the region, Huf added.

In response to a sector-wide restructuring, Huf suggested that banking professionals should "stretch themselves and be open to opportunities beyond their immediate roles".

"In today's rapidly changing environment, continuous learning and embracing new opportunities are essential," Huf said. "Even at this stage in my career, taking on the chief executive role alongside my Asia-Pacific general counsel duties has been a valuable learning experience."

The bank said it would host the second edition of the Solving Sustainable Conference in Hong Kong in May to fulfil clients' needs, and contribute to efforts by Hong Kong to elevate sustainable finance.

Another tool for Barclays to navigate uncertainty and turbulence was to embrace diversity and adopt an inclusive culture, Huf said. Numerous studies have shown that diversity - beyond just gender diversity - led to better business outcomes, she said.

"At Barclays, we actively support an inclusive culture that recognises all forms of diversity, fostering a range of viewpoints that drive superior results."

Women represented about 45 per cent of Barclays' global organisation, with 30 per cent of its managing directors and directors being female, according to Huf, who is the first woman to lead the bank's Hong Kong branch.

The bank is targeting 40 per cent gender diversity on its board, which reflects its dedication to "fostering an inclusive workplace whilst at the same time ensuring that all board and succession plans are based on merit and objective criteria", Huf said.

Hong Kong has made real progress in gender diversity, including requiring company boards to have at least one woman, she added. "We believe that embracing diversity of thought is essential for achieving the best outcomes."

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.