- Barclays raises its full-year RoTE target to over 11%.
- Announces £500M share buyback amid legal and profit challenges.
- Investment banking strength and capital discipline lift investor confidence.
Barclays has raised its full-year guidance and announced a £500 million ($667 million) share buyback after posting third-quarter results that showed resilience despite a dip in profits. The British lender now expects a Return on Tangible Equity (RoTE) of over 11%—slightly above its previous estimate—and raised its net interest income forecast to more than £12.6 billion.
CEO C.S. Venkatakrishnan said the move reflects “consistent capital generation” over the past nine quarters. He added that Barclays will begin quarterly share buyback announcements going forward, highlighting the bank’s growing focus on shareholder returns and long-term performance.
Earnings Under Pressure from Legal Charges
Pre-tax profit for the quarter came in at £2.1 billion, down 7% year-on-year and slightly below analyst expectations. The decline was driven in part by a £235 million charge tied to the U.K. car loans scandal—bringing total related costs to £325 million—and a £110 million impairment from a single client exposure.
Quarterly income totaled £7.2 billion, with RoTE easing to 10.6% from 12.3% a year earlier. Despite this, Barclays’ investment banking arm posted an 8% income increase, helping offset weaker results in other divisions.
Investor Response and Market Context
Barclays shares rose nearly 5% on Wednesday, reflecting investor confidence in the bank’s strategy and capital strength. The stock is now up over 35% year-to-date, outperforming many peers in the Stoxx 600 Banks Index, which has climbed 55% so far in 2025.
Across the Atlantic, strong investment banking results from JPMorgan Chase and Goldman Sachs have also buoyed sentiment in global financial markets, suggesting renewed confidence in the sector despite lingering concerns over potential loan losses.
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A Confident Step Forward
While legal headwinds remain, Barclays’ decision to raise guidance and advance its buyback program signals confidence in its capital position and earnings potential. As Venkatakrishnan noted, the bank’s steady execution “has laid the foundations for greater performance beyond 2026,” with new long-term targets to be announced alongside its FY25 results.
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