Barclays reported second-quarter 2026 income of £8.34 billion, representing an increase of 16% from £7.19 billion in the prior-year period.
Profit before tax increased 31% to £3.25 billion from £2.48 billion, exceeding the bank’s company-compiled consensus estimate of £3.12 billion.
Profit attributable to ordinary shareholders increased 36% to £2.26 billion, while earnings per share rose 43% to 16.7 pence from 11.7 pence.
Barclays generated a return on tangible equity of 16.1%, compared with 12.3% a year earlier. Its cost-to-income ratio improved to 54% from 59%, indicating that revenue grew more quickly than expenses.
The results prompted Barclays to raise its full-year 2026 group income target to approximately £31.5 billion from £31 billion.
The bank also increased its net interest income forecast, excluding Barclays Investment Bank and Head Office, to more than £13.7 billion from more than £13.5 billion.
Net interest income represents the difference between the interest a bank earns on loans and investments and the interest it pays on deposits and other funding.
Barclays Investment Bank was a major contributor during the quarter. Its income increased 20% to approximately £3.96 billion, driven by Global Markets activity and higher investment banking fees.
The division produced attributable profit of approximately £1.2 billion and a return on allocated tangible equity of 16%.
Barclays benefited from increased trading and corporate transaction activity. Equities trading and investment banking fees were particularly strong as market volatility and dealmaking created additional opportunities.
Barclays UK income increased 7%, supported by higher structural hedge income. These benefits were partially offset by changing retail deposit behavior and pressure on mortgage margins.
Barclays UK Corporate Bank income rose 8% as average lending and deposit balances increased. Private Bank and Wealth Management income grew 5%, supported by higher client balances.
Barclays US Consumer Bank income increased 38% to approximately £1.14 billion.
The improvement reflected portfolio changes, including an approximately £225 million gain from the sale of the American Airlines co-branded credit card portfolio and the contribution of the Best Egg acquisition.
US Consumer Bank attributable profit reached £253 million, compared with £87 million in the prior-year quarter.
Group operating expenses increased 7% to £4.52 billion. The increase reflected business growth, higher performance-related compensation, inflation, continued investment and expenses associated with Best Egg.
These pressures were partly offset by approximately £200 million in efficiency savings.
Credit impairment charges increased to £571 million from £469 million, while the group loan-loss rate rose to 51 basis points from 44 basis points.
Barclays ended the quarter with a Common Equity Tier 1 ratio of 14.3%, above its target range of 13% to 14%.
The bank announced its intention to begin a share repurchase of up to £1 billion and declared a first-half dividend of 5.9 pence per share, up from 3 pence a year earlier.
Total capital distributions for the first half reached £2.3 billion, representing an increase of 61% year over year.
For the first half of 2026, Barclays generated £16.5 billion in income and £6.07 billion in profit before tax. Return on tangible equity reached 14.8%, compared with 13.2% during the first half of 2025.
The bank continues to target a group return on tangible equity of more than 14% by 2028 and plans to return more than £15 billion to shareholders through dividends and buybacks between 2026 and 2028.
Barclays is also targeting annual income growth of more than 5%, a cost-to-income ratio in the low-50% range and more than £2 billion in gross efficiency savings between 2026 and 2028.
KEY QUOTE:
“I am pleased with another strong quarter for Barclays. Income is up, profitability improved and we are upgrading our 2026 target.”
C.S. Venkatakrishnan, Group Chief Executive of Barclays
