Barclays beat profit estimates and saw strong growth in revenue last quarter, amid its efforts to lower costs.
Its profit before tax was UK£2.5 billion, up 28% year-on-year and passing LSEG estimates of £2.23 billion. Revenue was £7.2 billion, growing from £6.3 billion and in line with estimates.
“These strong results mark the mid-point of our three-year plan to deliver a better run, more highly performing and higher returning Barclays,” said Barclays CEO V.S. Venkatakrishnan on an earnings call. “We remain committed to and confident in achieving the full objectives of this plan and this includes a Return on Tangible Equity of c.11% in 2025 and more than 12% in 2026.”
Barclays has been seeking to cut costs in recent months, reportedly aiming to eliminate more than 200 investment bank jobs. It also hired McKinsey consultants to identify opportunities for further savings in June, according to Bloomberg.
Its statutory RoTE was 12.3% last quarter, compared with 9.9% one year ago. Barclays’ CET1 ratio was 14.0%, up from 13.6% in June.
The company’s earnings per share were £0.117, rising from £0.083 year-over-year. Income was £7.2 billion, compared with £6.3 billion in Q2 2024, and was negatively impacted by weakness in the U.S. dollar.
Retail and Corporate was Barclays Group's largest segment by income last quarter, which grew by 13% to reach £4.3 billion. Its Intermediation segment saw the greatest percentage increase in income, up 34% to £1.4 billion.
All segments posted year-over-year income growth except Banking Fees & Underwriting, which declined 16% to £0.6 billion.
Investment Bank income was £3.3 billion, up from £3.0 billion one year ago. Its profit before tax was £1.3 billion, rising from £1.1 billion year-over-year.
Barclays UK profit before tax remained stable year-on-year at £0.8 billion, while its income rose by £0.2 billion to £2.1 billion.
The group’s full-year guidance projects a CET1 ratio of 13-14%, with around £30 billion expected in 2026.
Barclays’ share price (LON: BARC) closed at £370.60, up from its previous close of £361.20. Its market capitalisation is £52.35 billion.
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