Christopher Wheeler of Mediobanca Securities has written a research note to investors stating that such a move could increase Barclays' share price by as much as 39 per cent, reports Bloomberg.
"Political considerations and commercial imperatives would see investment-corporate banking and Barclays Wealth spun off, leaving the remaining Barclays business as a pure play on retail banking," he said.
Mr Wheeler suggested that Barclays could focus on retail banking in Europe and Africa, with the separated investment banking unit moving to the US.
A spokesman for the bank said it does not comment on analyst reports.
Last month, Srinivas Siripurapu, head of south-east Asia and south Asia at London-based Barclays Wealth, said the company is looking to quadruple the size of its wealth management business in his region during the next five years.
By Asim Shah