Barclays reported a full‑year profit before tax of £9.1 billion for 2025, a 12 % increase from £8.1 billion in 2024 and a beat of the consensus estimate of £9 billion. The lift was driven by stronger corporate and investment‑banking activity and a disciplined cost‑cutting program that kept operating expenses in line with revenue growth.
Total income rose 9 % to £29.1 billion, supported by double‑digit growth in intermediation and financing segments. However, fourth‑quarter revenue fell to £7.08 billion, 23 % below the consensus of £9.25 billion, largely because a weaker U.S. dollar reduced reported income and fee income slipped in the investment‑banking division.
Return on tangible equity climbed to 11.3 % from 10.5 % in 2024, meeting management guidance. All divisions posted double‑digit RoTE, with investment‑banking income up 11 % to £13 billion and Global Markets trading revenue up 15 % year‑over‑year.
Barclays unveiled 2028 targets that include a RoTE of greater than 14 % by 2028 and a commitment to return more than £15 billion to shareholders between 2026 and 2028, including a £1 billion share buyback announced today. The targets reflect confidence in U.S. growth, ongoing cost discipline, and investment in AI and digital platforms.
CEO C.S. Venkatakrishnan said the bank achieved all 2025 financial guidance and will invest further to improve customer experience, deepen relationships, and harness AI to drive efficiency and growth. CFO Anna Cross noted that a weaker U.S. dollar reduced reported income but that the return on tangible equity rose in line with guidance and that pre‑provision profit grew 13 % thanks to income growth and efficiency actions.
Investors reacted cautiously, with some analysts noting that the revenue miss tempered enthusiasm despite the profit beat and the ambitious 2028 targets. The mixed outlook highlights the bank’s resilience while underscoring the need to address the Q4 revenue shortfall.
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