Barclays profits beat expectations as investment bank thrives in volatile market
Published: 07:23 30 Apr 2025 BST
Barclays PLC (LSE:BARC) reported a 19% increase in profits for the first quarter of 2025, beating City expectations thanks in part due to a strong performance from its investment bank.
The lender increased credit impairment charges to £0.6 billion, reflecting a higher loan loss rate of 61 basis points, including a £74 million adjustment tied to rising macroeconomic uncertainty in the US.
But Barclays said trends across its loan portfolios remained stable, with no signs of deterioration, and the bank maintained its CET1 ratio at the upper end of its 13-14% target range.
Overall, a strong start to 2025 was reported, with first-quarter profit before tax coming in at £2.7 billion, beating consensus forecasts nearer £2.5 billion, and return on tangible equity reaching 14.0%. Earnings per share increased to 13.0p, up 26% on the prior year.
Group income rose 11% to £7.7 billion, with Barclays UK income up 14%, helped by structural hedge gains and the inclusion of Tesco Bank.
The investment bank posted a 16% rise in income, including a 21% increase in fixed income and currency trading.
Barclays raised its 2025 net interest income guidance from around £12.2 billion to over £12.5 billion. Guidance for Barclays UK NII was also lifted to above £7.6 billion.
Chief executive CS Venkatakrishnan said: "I am very pleased with our performance in Q125, which represents another strong quarter of execution."
He said Barclays' diversified businesses, robust balance sheet and proactive approach to risk, capital and liquidity "position us well to support our customers and clients and deliver strong risk-adjusted returns in a wide range of macroeconomic scenarios".
Plans to return at least £10 billion to shareholders between 2024 and 2026 through dividends and buybacks were also confirmed.
