Barclays H1 profit rises 17% to £6.1bn on equities strength; bank lifts income target and buyback

Profit and revenue beat forecasts

Barclays reported pre-tax profit of £3.3 billion for the second quarter, a 31% increase on the same period last year, bringing first-half profit before tax to £6.1 billion, up 17%. Both figures exceeded analyst expectations; the consensus forecast for the half-year was approximately £5.94 billion. Revenue climbed to £8.3 billion in the quarter, more than £1 billion higher than a year earlier. The investment bank contributed £4 billion in income, well above the £3.7 billion estimate.

Equities trading delivers strongest Q2 in four years

Equities trading revenue rose 45% in the second quarter compared with the prior year, benefiting from market volatility. It was the unit's best second-quarter result in four years. Investment banking revenues overall were up by a fifth, with equities the main driver. Advisory and underwriting fees climbed 32%, led by equity capital markets. Still, Barclays lagged Wall Street, where equities revenues rose an average 69%, partly lifted by the massive SpaceX initial public offering.

Capital returns and guidance upgrade

The bank announced a fresh £1 billion share buyback, exceeding the £831 million analysts had forecast, alongside £800 million in dividends. It raised its full-year income guidance to about £31.5 billion, up from £31 billion previously. Chief executive CS Venkatakrishnan confirmed the upgrade, saying the bank was on track to meet its 2026 performance targets.

Bonus pool swells and sparks tax debate

Barclays increased its bonus pool for the first half by nearly 30% to £1.3 billion, up from £1 billion a year ago. The pot will continue to build through the second half and is likely to lead to more generous payouts when final decisions are made by the end of February 2027. The Trades Union Congress called for a higher bank surtax, arguing that it could fund energy bill relief under Prime Minister Andy Burnham's cost-of-living plans. TUC general secretary Paul Nowak said:

Big banks like Barclays are raking it in while working people and local businesses are struggling. High interest rates have been a boon for banks but have meant mortgage misery and higher bills for the rest of us.

He added that Barclays' "bonanza profits show that banks can easily afford to pay more tax."

Share price dips despite strong results

Barclays shares fell in early trading following the results. Analysts noted the gap to US equities gains and lingering tax policy concerns as factors that tempered investor enthusiasm.