Barclays has confirmed that its group chief executive is to step down with effect from 31 March 2011.

The global banking giant today announced his successor as Robert ‘Bob’ Diamond, who will take the position of president and deputy group chief executive from 1 October 2010.

Diamond is currently the head of the corporate and investment banking and the Barclays Wealth businesses within the group and has been a member of the Barclays board since 2005.

Varley will become a senior adviser on regulatory matters to Bob Diamond and to the board of Barclays until 30 September 2011.

Marcus Agius, chairman of Barclays Group said Varley had made an ‘extraordinary’ contribution to the bank during his service.

He added, ‘The Board is grateful to him for the tremendous progress Barclays has made during his tenure as group chief executive.

‘Bob Diamond will be his successor. He is superbly qualified, with more than 30 years' experience in the banking sector, the last 14 of which have been with Barclays. He has a proven track record as a business leader, and I and the Board very much look forward to working with him in his new role.’

John Varley, Group Chief Executive, said it had been a great privilege to lead Barclays as chief executive. He added, ‘What we have achieved over the last seven years has been achieved because of the immense and constant support I have had from my chairman, the board and my senior team, and from my 150,000 colleagues in the Group.’