Barclays is considering a return to cash equities business in Japan a decade after it exited the business, people familiar with the matter said.

Discussions are at an early stage and no decision has been made, according to the people, who asked not to be identified because the information is private. Barclays has been hiring equities specialists in Tokyo. They include Takeo Kamai, who oversaw execution services at CLSA¡¯s Japan securities business, and Warren Kim, a senior executive at the same Chinese firm.

A Barclays spokesperson declined to comment.

Barclays retreated from the business in Japan in 2016 as part of a wider winding down of the investment bank in the Asia-Pacific region to cut costs. The chief executive officer at the time, Jes Staley, took an ax to the investment bank following a series of scandals in previous years. Then-Chairman John McFarlane had also pledged to focus on the most profitable businesses in the U.S. and United Kingdom.

In Japan, 120 equity employees had to leave the firm and it downsized its office space in Tokyo after that decision. It is unclear how many bankers could be added under any plan to return to the business, the people said.

The move is the latest to reflect renewed interest in Japanese stocks, which are breaking records as governance reforms prompt companies to seek ways to bolster profitability and shareholder returns. The rebound has coincided with the end of decades of deflation in Japan, which has given companies more pricing power. Brokerages including Daiwa Securities Group expect the rally to persist, spurred by the artificial intelligence boom and receding risks in the Middle East.

The equities market in Japan ¡°is exploding¡± and now might be a good time for a foreign bank to get involved, said Laurent Douillet, a senior equity strategist at Bloomberg Intelligence. ¡°The addressable market could be really significant.¡±

Today, Barclays¡¯ markets business in Japan includes rates, foreign exchange and structured credit. Its equities operations over the past decade have focused on electronic trading, derivatives sales and prime brokerage. The firm posted net revenue of ?67.1 billion ($415 million) in the country last year.

A return to the Japanese cash equities market would pit Barclays against the likes of Goldman Sachs Group, JPMorgan Chase and Morgan Stanley, alongside Japanese firms including Nomura Holdings and Daiwa.

Globally, the bank¡¯s equities business made ?1.1 billion ($1.5 billion) in the first three months of 2026, beating estimates and increasing 16% year-on-year.

Barclays has been expanding equities operations elsewhere in Asia in markets such as Hong Kong, reversing the pullback from so-called high-touch cash equities business 10 years ago. Under CEO CS Venkatakrishnan, the London-based firm has laid out...