Barclays reported a 17% rise in first-half profit, beating analyst forecasts as equities trading revenue and deal fees lifted its investment bank. The lender announced a £1 billion share buyback and raised its full-year income guidance to £31.5 billion.
Barclays reported a 17% rise in first-half profit on Tuesday, topping analyst forecasts, as the British bank benefited from strong equities trading revenue and deal fees alongside its Wall Street peers. Profit before tax for the six months to June came in at £6.1 billion, above the roughly £5.94 billion analysts had expected.
Investment bank income beats forecasts
The investment bank, one of the group’s key earnings drivers, generated total income of £4 billion in the second quarter, ahead of analyst forecasts of £3.7 billion. Equities revenue rose 45% year-on-year in the quarter, though that growth lagged Wall Street rivals, which posted average equities revenue gains of 69% over the same period.
Alongside the results, the bank announced a fresh share buyback of £1 billion, exceeding forecasts of £831 million. It also slightly raised full-year income guidance to £31.5 billion, from £31 billion.
Costs climb as US consumer arm grows 38%
Group operating costs rose on the back of business growth, inflation and continued investment. That increase was partly offset by around £200 million of cost efficiency savings in the second quarter, Barclays said.
U.S. Consumer Bank income rose 38% in the quarter, aided by a roughly £225 million gain from the sale of Barclays’ American Airlines co-branded credit card portfolio and its acquisition of Best Egg.
Barclays reiterates £10 billion capital return plan
Return on tangible equity came in at 14.8% for the first half, while the bank’s CET1 ratio stood at 14.3%. Looking ahead, Barclays said it expects full-year 2026 group RoTE of greater than 12%, with a CET1 ratio in the 13-14% range.
The lender also reiterated plans to return at least £10 billion of capital to shareholders between 2024 and 2026. Barclays said it remains committed to, and confident in, delivering all of its financial and distribution targets for 2026 and 2028.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
