Barclays reports higher income and lower credit losses
Group income increased 3% to £7.4 billion, while attributable profit rose 13% to £1.6 billion. Earnings per share climbed 18% to 12.3 pence. Operating expenses increased 1% to £4.6 billion, including £201 million in restructuring costs. Despite the increase, the cost-to-income ratio improved to 62% from 63% a year earlier.
Credit impairment charges, which cover expected losses on loans and other lending exposures, fell 20% to £503 million. The quarterly loan loss rate also declined to 43 basis points from 57 basis points in the corresponding period last year.
£500 million buyback takes shareholder returns to £2.8 billion
The newly announced buyback brings Barclays’ total announced shareholder distributions for the first nine months of 2026 to £2.8 billion, up 46% year on year. The bank’s common equity tier 1 (CET1) capital ratio, a key measure of financial strength, stood at 14.2%. Taking the latest buyback into account, the ratio would be 14.0%.
Barclays’ return on tangible equity, which measures returns against shareholders’ tangible capital, improved to 11.7% from 10.6% a year earlier. The bank remains on track to achieve a return above 12% for 2026 and retains its longer-term target of more than 14% by 2028.
Investment banking delivers mixed results
Performance across Barclays’ investment banking operations was uneven. Equities income increased 47% year on year, supported by earlier investments in prime financing and equity derivatives. However, income from fixed income, currencies and commodities (FICC) fell 19% amid challenging trading conditions.
Elsewhere, lending in the bank’s UK businesses grew 7% year on year, while its UK Corporate Bank recorded 14% growth. Net interest income, excluding the Investment Bank and Head Office, increased 7% to £3.5 billion.
Barclays also announced plans to cut around 5,000 jobs as part of its efforts to reduce costs and improve efficiency through technology and automation. The results come ahead of the UK government’s Budget on 28 October, when further taxes on banks could be considered.