Barclays announces PS500 million buyback amid 'solid' first quarter
Barclays PLC on Tuesday said it is confident delivering all its financial targets as it reported largely as expected first quarter results.
The London-based lender said pretax profit rose 3.3% to £2.81 billion in the first quarter of 2026 from £2.72 billion a year before, just shy of company compiled consensus of £2.83 billion.
Total income increased 5.8% to £8.16 billion from £7.71 billion a year ago, in line with consensus of £8.12 billion.
Attributable profit rose 3.8% to £1.93 billion from £1.86 billion last year. Basic earnings per share improved 8.5% to 14.1 pence from 13.0p, in line with consensus.
In response, shares in Barclays fell 3.0% to 414.39 pence each in London. It was the biggest faller in the FTSE 100 which was slightly higher.
By division, income rose 9% in Barclays UK, 10% in Barclays UK Corporate Bank, 4% in Barclays Investment Bank and 14% in Barclays US Consumer Bank. Income in Barclays Private Bank and Wealth Management income was broadly stable.
Return on tangible equity slipped to 13.5% from 14.0% on-year, though Barclays said all divisions delivered double-digit returns.
The cost-to-income ratio improved to 56% from 57% on-year, with costs rising 2.3% to £4.36 billion from £4.26 billion a year ago.
Credit impairment charges increased to £823 million from £643 million, including a £228 million single-name charge in the investment bank.
The loan loss rate rose to 74 basis points from 61bps. The CET1 capital ratio edged higher to 14.1% from 13.9% a year ago.
In addition, Barclays said litigation and conduct charges of £104 million primarily reflect a £105 million increase in the provision for the UK Financial Conduct Authority motor finance redress scheme, lifting the total provision to £430 million from £325 million at the end of 2025.
It announced a new £500 million share buyback, in line with expectations, to begin after completion of the current £1.0 billion programme.
Barclays reiterated all 2026 and 2028 targets, including return on tangible equity of more than 12% in 2026 and more than 14% in 2028.
For 2026, it continues to expect total income of around £31 billion, a high-50s cost-to-income ratio, and a common equity tier 1 ratio within its 13% to 14% target range.
Barclays plans to return greater than £15 billion of capital to shareholders between 2026 and 2028, through dividends and share buybacks.
Chief Executive CS Venkatakrishnan called it a ‘solid’ quarter.
‘The breadth and quality of our businesses mean we remain confident in delivering all our financial targets across a range of environments,’ he added.
Copyright 2026 Alliance News Ltd. All Rights Reserved.