Barclays plans PS1 billion buyback as interim profit beats consensus

Barclays PLC on Tuesday declared a new share buyback, affirmed its financial outlook, and reported better-than-expected profit growth, with its markets-facing business shining.

The London-based lender said pretax profit in the first half of 2025 surged 23% to £5.20 billion from £4.22 billion a year prior. Total income shot up 12% to £14.90 billion from £13.28 billion.

For the second quarter alone, total income rose 14% annually to £7.19 billion and pretax profit jumped 28% to £2.48 billion. Both outcomes topped the company-compiled consensus of £7.01 billion and £2.24 billion.

‘We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors,’ Chief Executive CS Venkatakrishnan said.

Barclays announced a new £1 billion share buyback. It also lifted its interim dividend by 3.4% to 3.0 pence per share from 2.9p. Barclays said that this would equate to a total capital distribution for the first half of £1.4 billion, up 21% on-year.

Return on tangible equity improved to 13.2% in the first half from 11.1% a year earlier. Net interest income, excluding the Investment Bank and head office, climbed 13% on-year to £6.1 billion.

For the full-year, Barclays still expects a RoTE of around 11% and net interest income, excluding the Investment Bank and head office, of above £12.5 billion. That would represent an improvement from 10.5% and £11.2 billion achieved in 2024.

During the first half, Barclays Investment Bank total income shot up 13% on-year to £7.18 billion, boosted by its Global Markets offering. Revenue in Global Markets, which houses equities and fixed income, currencies & commodities, saw revenue spike 21% to £4.98 billion.

In the Barclays UK ring-fenced UK retail banking division, first half revenue increased 13% on-year to £4.19 billion.

The Barclays UK Corporate Bank saw revenue improve 14% to £1.00 billion, while in the US Consumer Bank, it edged up 0.5% to £1.69 billion from £1.68 billion. Barclays Private Bank & Wealth Management revenue rose 10% to £697 million.

Shares in the company were down 0.8% to 358.25 pence each in London on Tuesday morning. The wider FTSE 100 index was up 0.1%.

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