BARCLAYS has promoted its retail banking head, Antony Jenkins, to chief executive, with a potential £8.8 million pay package in a move analysts think could lead to less emphasis on its controversial investment banking arm.

Mr Jenkins has replaced Bob Diamond, who quit in July after the company was fined £290 million by regulators for attempting to manipulate key interest rates.

The episode also saw the resignation of chairman Marcus Agius, who is to be replaced by veteran banker Sir David Walker, and two other directors.

Mr Jenkins, who first joined Barclays as a graduate trainee, said it was a strong bank.

He added: "But we have made serious mistakes in recent years and clearly failed to keep pace with our stakeholders' expectations.

"We have an obligation to all of those stakeholders – customers, clients, shareholders, colleagues and broader society – and a unique opportunity to restore Barclays' reputation."

Gary Greenwood, analyst at Shore Capital, said: "While we would have preferred to have seen an external appointment to the role of chief executive, we think this is probably the best internal appointment the company could have made."

He added: "In terms of strategy, we believe that this appointment increases the likelihood that the business will see its exposure to investment banking toned down, with greater emphasis placed on retail and commercial banking."

If Mr Jenkins does scale down Barclays' riskier investment banking arm, he will be following a similar path to rivals such as Royal Bank of Scotland, which has sought to focus on more traditional banking services.

Mr Jenkins currently leads Barclays' retail and company banking business and has sat on its group executive committee since 2009. He will receive a basic salary of £1.1m and earn an annual bonus of up to 250% of this, or £2.75m. His long-term incentive plan will be up to 400% of salary, or £4.4m.