Barclays Traders Show Signs of Peaking

Barclays Plc Chief Executive Officer Jes Staley has proved skeptics wrong: Hanging on to the British bank’s large securities business has been a blessing, especially during the pandemic.

Staley was under pressure at various points to cut back on riskier trading activities. He held off and his firm — like its Wall Street peers — has prospered, riding the wave of trillions of dollars injected into ravaged economies by central banks and profiting from the insatiable appetite for financial assets that offer a decent return in a low-yield world. But this Barclays profit driver shows signs of peaking, and it’s not clear what will replace it. Digital payments of the type offered by Square Inc. might be one answer, although this could require heavy investment.