Mr Varley is expected to stand down to make way for Mr Diamond, currently head of the bank’s investment banking and investment management businesses, in time for the annual meeting next April. An announcement could come as early as Tuesday morning. The transition has long been expected, and Mr Diamond only narrowly missed out on becoming chief executive of Barclays in 2004 when Mr Varley got the job. Mr Diamond’s ascendancy will likely be seen as confirmation of the transformation of the bank from a largely UK-focused retail bank into a global investment banking powerhouse. Mr Diamond’s responsibilities at Barclays Capital are expected to pass to his long-time deputies Jerry del Missier and Rich Ricci. It is understood the men could become co-chief executives of the business, which is now responsible for more than half of the group’s earnings. Barclays declined to comment.