Nov. 4 (Bloomberg) -- Barclays Plc, Britain’s second- largest lender, handed control of its commercial bank to President Robert Diamond as Frits Seegers stepped down.

Diamond, 58, will oversee commercial banking and will keep control of investment banking and wealth management, London- based Barclays said in a statement yesterday. Barclaycard chief executive Antony Jenkins will take control of retail banking in the U.K., Europe and emerging markets, Barclays said. Both men will report to Chief Executive Officer John Varley.

Barclays has increased its dependence on Diamond’s investment-banking division, which contributed a third of profit in the first half, following the acquisition of the North American unit of Lehman Brothers Holdings Inc. last year.

“This could be a reward for his achievements over the past 24 months,” said Jason Kennedy, chief executive officer of Kennedy Associates, a London-based executive search firm. “He probably sees his career continuing and finishing with Barclays.”

Barclays fell 2 percent to 323.45 pence in London trading yesterday, valuing the bank at 36.6 billion pounds ($60 billion).

Seegers, 51, joined Barclays in 2006 from Citigroup Inc. where he was head of consumer banking in Europe, the Middle East and Africa.

“Seegers was a secondary player on the Barclays stage and I imagine he was aware of that and wasn’t particularly happy,” said Simon Maughan, an analyst at MF Global Securities Ltd. in London who rates Barclays a “buy.”

Executive Committee

Jerry del Missier and Rich Ricci will be co-chief executives of the corporate and investment bank, reporting to Diamond. Jenkins, del Missier, Ricci, wealth management CEO Tom Kalaris and Absa CEO Maria Ramos will join Barclays’s group executive committee, the bank said.

The bank agreed to buy Standard Life Plc’s banking assets last week for 226 million pounds to expand its British savings and mortgage operations. Barclays in September agreed to buy the Portuguese credit-card business of Citibank International Plc and is seeking more acquisitions in Europe.

“I am sad these changes result in Frits leaving the group,” Chief Executive Officer John Varley, 53, said in the statement. “Frits has had a transformational impact on our retail and commercial business globally.”

Seegers was paid a total of 2.3 million pounds in 2008, including a 700,000-pound salary and a 1.6 million pound long- term incentive award. He was the highest-paid director last year because board members didn’t receive bonuses. He would receive 12 months salary and bonus as potential compensation for loss of office, according to his contract, detailed in the bank’s annual report. A Barclays spokesman declined to comment.

Barclays said yesterday that third-quarter pretax profit was “consistent with the run rate” for the first half of 2009. The bank said it will issue a trading statement on Nov. 10.

To contact the reporter on this story: Jon Menon in London at jmenon1@bloomberg.net

Last Updated: November 3, 2009 19:00 EST