28th Apr 2026 09:38
(Alliance News) - 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 GBP2.81 billion in the first quarter of 2026 from GBP2.72 billion a year before, just shy of company compiled consensus of GBP2.83 billion.
Total income increased 5.8% to GBP8.16 billion from GBP7.71 billion a year ago, in line with consensus of GBP8.12 billion.
Attributable profit rose 3.8% to GBP1.93 billion from GBP1.86 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 GBP4.36 billion from GBP4.26 billion a year ago.
Credit impairment charges increased to GBP823 million from GBP643 million, including a GBP228 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 GBP104 million primarily reflect a GBP105 million increase in the provision for the UK Financial Conduct Authority motor finance redress scheme, lifting the total provision to GBP430 million from GBP325 million at the end of 2025.
It announced a new GBP500 million share buyback, in line with expectations, to begin after completion of the current GBP1.0 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 GBP31 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 GBP15 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.
By Jeremy Cutler, Alliance News reporter
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