Barclays Considers Return to Japan Cash Equities Business, Over a Decade After Previous Exit
N.R. Finch
Barclays is considering re-entering Japan's cash equities market, a business it exited in 2016; the bank has begun hiring key staff in Tokyo as record-high Japanese stocks provide the catalyst, though Goldman, JPMorgan and local brokers ensure the path back will be contested.
Why did Barclays leave — and why come back now?
In 2016, then-CEO Jes Staley slashed Asia-Pacific investment banking. About 120 equities staff left and the Tokyo office shrank.
The logic was explicit: concentrate resources on the most profitable businesses in the US and UK.
This means → the exit was never a verdict on Japan itself. It was a global cost cut across non-core units.
The wind has shifted. Japanese equities keep hitting all-time highs, and Barclays is reassessing the market it once abandoned.
What concrete steps has Barclays taken?
The bank has recruited equities specialists in Tokyo, including Takeo Kamai, former head of Japan execution services at CLSA — a prominent Asia-Pacific brokerage — and senior CLSA manager Warren Kim.
In plain terms = Barclays hasn't formally announced a return, but it is already poaching talent. That is usually the earliest signal of a market re-entry.
Sources stress the discussions are still at an early stage with no final decision. A Barclays spokesperson declined to comment.
What makes Japan's stock market so attractive right now?
Corporate governance reforms — government-led policies pushing listed companies to boost profitability and shareholder returns — are reshaping how Japanese firms operate.
Decades of deflation have ended. Companies can raise prices again, and pricing power flows straight to profit margins.
Bloomberg Intelligence strategist Laurent Douillet called the Japanese equity market "booming" and said now may be an opportune moment for foreign banks to step in.
This reflects a deeper shift: Japan's appeal has moved from "cheap" to "fundamentals are improving." That is the underlying reason global banks are collectively re-evaluating the market.
Who will Barclays be competing against?
In cash equities — buying and selling actual shares, as distinct from derivatives and electronic trading — the incumbents include Goldman Sachs, JPMorgan, Morgan Stanley, and Japan's own Nomura Holdings and Daiwa Securities.
Barclays is not starting from zero. It retained rates, FX and structured credit operations in Japan, posting net income of ¥67.1 billion (roughly $415 million) last year.
This means → the infrastructure exists, but cash equities is a resource-heavy business that demands research coverage, a sales team and deep client relationships. A trading platform alone is not enough.
How does this fit Barclays' global strategy?
Global equities revenue hit £1.1 billion (about $1.5 billion) in Q1 2026, up 16% year-on-year and ahead of market expectations.
Under CEO CS Venkatakrishnan, Barclays has already expanded equities operations in Hong Kong and other Asian markets, gradually reversing the decade-old retreat.
The bank has set a target of more than 14% return on tangible equity by 2028.
In plain terms = if Japan cash equities materialises, it is not an isolated move — it is a pivotal piece in Barclays' broader "return to Asia" playbook. Whether it actually reaches the finish line will be the clearest test of how serious this strategic pivot really is.
Content is for reference only, not financial advice.