10th Feb 2026 09:43
(Alliance News) - Barclays PLC on Tuesday pointed to its "diverse income portfolio" for higher profit in 2025, as it outlined a new GBP1.0 billion buyback scheme.
The London-based lender booked annual pretax profit of GBP9.14 billion in 2025, up from GBP8.12 billion in 2024. Total income rose to GBP29.14 billion from GBP26.79 billion on-year, with basic earnings per share ticking up to 43.8 pence from 36.0p.
In the fourth quarter alone, pretax profit improved to GBP1.86 billion from GBP1.66 billion, on total income of GBP7.08 billion, which was up from GBP6.96 billion the year prior. Quarterly EPS increased to 8.6p from 6.7p.
In response, Barclays shares were 1.6% to 494.40 pence on Tuesday morning in London.
Return on tangible equity for the fourth quarter was 8.5%, up from 7.5% on-year. For the year as a whole, RoTE increased to 11.3% from 10.4% in 2024, growing across all divisions, Barclays said. Tangible net asset value per share was 409p at the end of December, versus 357p a year prior.
As of December 31, the bank's common equity tier one ratio stood at 14.3%, compared with 13.6% at the end of 2024. When taking into account the buybacks announced on Tuesday, the measure reduces to 14%.
Barclays said it intends to repurchase shares worth up to GBP1.0 billion, starting in the first quarter of 2026. Its goal is to return at least GBP10 billion via dividends and buybacks between 2024 and 2026, "with a continued preference for buybacks", and a total dividend of GBP2 billion planned for 2026. Between 2026 and 2028, the bank is targeting GBP15 billion in capital returns.
Barclays sees 2026 income around GBP31 billion, with RoTE above 12%. Looking further to 2028, the bank aims for revenue to rise at a compound annual growth rate greater than 5%, with RoTE above 14%. It sees its CET1 ratio ranging from 13% to 14%, through to 2028, and eyes GBP2 billion in cost savings for the same period.
Also coming up is the expected close of a USD800 million acquisition. Back in October, Barclays said its Delaware subsidiary was buying direct-to-consumer lending platform Best Egg Inc. It sees the deal closing in the second quarter of 2026, after the sale of credit card receivables co-branded with American Airlines Group Inc. Barclays estimates the deals' net impact being a six-basis-point rise to its CET1 ratio.
In 2024, the lender took a relatively minor hit from the UK Financial Conduct Authority's motor finance redress, scheme, recognising a GBP325 million provision through subsidiary Clydesdale Financial Services Ltd. This remains subject to change, with the FCA yet to finalise compensation plans.
Meanwhile, Barclays Bank PLC said it paid GBP39 million to resolve an FCA investigation into the firm's compliance with anti-money laundering laws. Barclays Bank UK PLC "settled a separate matter" by paying GBP9 million, including a GBP6 million payment to investors, Barclays said. The UK watchdog ended its investigation into the two subsidiaries back in July.
Chief Executive CS Venkatakrishnan said Barlays met "all financial guidance in 2025", marking "a tenth consecutive quarter of growth".
"Our progress in the past two years provides a strong foundation to deliver more for our customers, clients and shareholders," the CEO continued.
"As we outline in our plan for the next three years, we will invest further to improve customers' experience and deepen relationships, while harnessing new technology, including AI, to improve efficiency and build segment-leading businesses and drive further growth. Our aim is to secure sustainably higher returns through to 2028 and beyond."
By Holly Munks, Alliance News reporter
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