Barclays PLC delivered a robust set of first-half 2026 results, reporting a return on equity (RoE) of 12.9% and a return on tangible equity (RoTE) of 14.8%, up from 11.4% and 13.2% respectively in the corresponding period of 2025. The bank announced total capital distributions of £2.3bn and declared it remains on track to meet its 2026 and 2028 financial targets, according to the Group's interim results announcement filed with the US Securities and Exchange Commission on 28 July 2026. Group profit before tax rose 17% year-on-year to £6,066m, while attributable profit increased 19% to £4,191m.
Earnings per share climbed to 30.7p from 24.7p in H1 2025. Total group income grew 11% to £16,501m, driven by higher revenues across Global Markets and Investment Banking, an uplift in structural hedge income, and a gain of approximately £225m from the sale of the American Airlines co-branded credit card portfolio within the US Consumer Bank division. In the second quarter alone, the group posted a RoE of 14.0% and a RoTE of 16.1%, with profit before tax of £3,252m representing a 31% increase compared to Q2 2025.
Group income in Q2 2026 rose 16% year-on-year to £8,338m. All five operating divisions delivered double-digit returns on equity in both H1 2026 and Q2 2026. Barclays UK reported income growth of 8% to £4,517m and a RoTE of 20.1%.
The UK Corporate Bank achieved a RoTE of 20.6% with income rising 8% to £1,088m. The Investment Bank posted income of £7,986m, an 11% year-on-year increase, with Global Markets income up 12% to £5,564m, driven by Equities, which surged 30% to £2,377m. The US Consumer Bank saw income jump 26% to £2,119m, significantly boosted by the AA portfolio gain, while Private Bank and Wealth Management recorded a 2% rise in income to £713m.
Group total operating expenses increased 6% to £9,065m, with underlying operating costs rising to £8,873m. The group delivered approximately £350m in cost efficiency savings in the period, partially offsetting inflationary pressures and higher performance-related costs. The cost-to-income ratio improved to 55% from 58% in H1 2025.
Credit impairment charges rose to £1,394m from £1,112m in H1 2025, primarily reflecting a £228m single-name charge in the Investment Bank in Q1 2026. The loan loss rate was 62 basis points compared to 52 basis points in the prior year period. The group's total coverage ratio remained stable at 1.2%.
The Common Equity Tier 1 (CET1) ratio held steady at 14.3%, at the top end of the group's 13-14% target range. Risk-weighted assets stood at £364.8bn. Taking into account the £1.0bn share buyback announced alongside these results, the CET1 ratio would be reduced to 14.0%.
Total capital distributions of £2.3bn include a £1.0bn buyback for Q2 2026, a half-year dividend of 5.9p per share — up from 3.0p in H1 2025 — and the £500m buyback announced with Q1 2026 results. Net asset value per share rose to 489p from 469p at end-2025, while tangible net asset value per share increased to 423p from 409p. On the balance sheet, total assets expanded to £1,730.4bn from £1,544.2bn at December 2025, driven by higher trading activity in the Investment Bank, growth in the liquidity pool and increased lending.
UK lending balances grew 5% year-on-year. The group's liquidity pool stood at £346.7bn, with a Liquidity Coverage Ratio of 157.7% and a Net Stable Funding Ratio of 135.8%, both well above regulatory minimums. During the period, Barclays completed two significant transactions in its US Consumer Bank.
On 24 April 2026, the group exited its American Airlines co-branded credit card partnership, releasing £3.6bn of risk-weighted assets and generating the circa £225m gain on sale. On 1 May 2026, it completed the acquisition of Best Egg, a US direct-to-consumer personal loan platform, for approximately £0.6bn. The combined effect was a marginal net increase in the CET1 ratio.
On 12 June 2026, the group announced an agreement to acquire GoHenry, a money management platform for children in the UK, with completion expected in Q4 2026. On 30 June 2026, Barclays acquired a 999-year leasehold interest in its global headquarters at One Churchill Place, London, valued at £750m and broadly neutral to the group's CET1 ratio and earnings. Regarding the FCA motor finance commission arrangements, the group increased its provision by £105m in Q1 2026 to £430m following the FCA's publication of final rules for an industry-wide redress scheme.
On 2 July 2026, the Upper Tribunal ordered a suspension of parts of the redress scheme following four legal challenges, introducing further uncertainty over the timing and extent of any remediation. Looking ahead, Barclays raised its 2026 group income target to approximately £31.5bn from approximately £31bn, and increased its guidance for group net interest income excluding the Investment Bank and Head Office to greater than £13.7bn from the prior greater than £13.5bn. For 2028, the group targets a RoTE of greater than 14%, a cost-to-income ratio in the low 50s, income compound annual growth of greater than 5% from 2025 to 2028, and capital returns to shareholders of greater than £15bn over 2026 to 2028.
The information was approved by Barclays' Board of Directors on 27 July 2026. The Q3 2026 results announcement is scheduled for 22 October 2026.
Source: home.barclays