6 September 2010 Last updated at 13:04 ET

Barclays to create 600 jobs in Glasgow

Barclays said it was establishing a global shared services hub in Glasgow

Banking giant Barclays has announced that it is to create up to 600 jobs in Glasgow.

It plans to expand its presence in the city, with a new facility for its investment banking and wealth management division.

Barclays will receive more than £6.5m in Regional Selective Assistance Funding from Scottish Enterprise.

First Minister Alex Salmond said it reflected the resilience and quality of Scotland's financial services industry.

Scotland has been hit by big job losses at Standard life and Direct Line in the past fortnight.

The new jobs have been created in part through a grant from the Financial Services Advisory Board (FISAB).

As part of this project, Barclays is establishing a global shared services hub in Glasgow to support the activity of its investment banking and wealth management divisions.

It should take the number of staff employed by Barclays in Glasgow to more than 2,000.

'Exciting development'

The first minister said he was "delighted" that Barclays had chosen to expand its business in Scotland despite tough competition from emerging markets.

He said it was a boost for the financial services industry, which employs approximately 95,000 people and accounts for about 8% of Scotland's GDP.

Mr Salmond added: "Glasgow has a long-established reputation as global financial centre with the infrastructure and expertise that can deliver success."

Secretary of State for Scotland Michael Moore said: "This is welcome news for Glasgow and the financial sector. We have become used to hearing bad employment news as a result of the recession and the announcement of 600 jobs and the investment which goes with it is a real sign of encouragement for Scotland's economy.

"We can't afford to be complacent about securing our future stability and will continue to work hard across government to get our economy back to a healthy state."

Confirmed plans

Ian Axe, head of operations at Barclays Capital and Barclays Wealth, said: "This example of collaboration between the investment banking and wealth management divisions at Barclays is an exciting development for clients, staff and potential employees in Glasgow and across Scotland."

The jobs announcement came as Scotland's financial sector was hit by news big job losses in the past fortnight.

Glasgow-based insurance firm Direct Line announced it was cutting 400 jobs, while Insurance company Standard Life said it was shedding 500 jobs, the bulk in Edinburgh.

Earlier this year Barclaycard confirmed its plans to close its Barclays Partner Finance in Glasgow, which employed about 350 staff.

The company said the creation of new positions at its other UK centres would result in the net loss of about 50 jobs.