Barclays PLC

Reported Q2 2026 income was GBP 8.3 billion, up GBP 1.2 billion, or 16%, year over year. Profit before tax was GBP 3.3 billion, up more than 30%, and EPS rose 43% year over year to 16.7p. Group RoTE was 16.1% in Q2 and 14.8% in the first half; CET1 was 14.3%. The group cost-to-income ratio improved to 54% from 59% a year earlier, and Q2 impairment charge was GBP 571 million, equal to a 51 bps loan loss rate. Management raised full-year 2026 income guidance to around GBP 31.5 billion, from prior guidance, and expects group NII of more than GBP 13.7 billion. For Barclays UK, full-year NII is expected around the middle of the GBP 8.1 billion to GBP 8.3 billion range; for the Investment Bank, management reaffirmed a circa 60% cost/income ratio and 12% RoTE target for 2026. The company announced a GBP 1 billion share buyback and an GBP 800 million interim dividend, with first-half distributions totaling GBP 2.3 billion, up 61% year over year.

The CEO framed the quarter as proof that Barclays is delivering on its multi-year plan, citing broad-based franchise growth, stronger returns, and ongoing operational simplification. He emphasized that the U.K. businesses and the Investment Bank are both performing well, and said the firm is using excess profitability to invest further while still lifting distributions. His tone was confident and upbeat, especially on the path to an all-weather RoTE above 14% in 2028 and on Barclays’ role in supporting U.K. growth.

The CFO highlighted the quarter’s financial outperformance with 16.1% RoTE, 43% EPS growth to 16.7p, and a 54% group cost/income ratio. She pointed to GBP 350 million of gross efficiency savings year to date, including GBP 200 million in Q2, while noting about GBP 300 million of higher costs year over year from business growth and compensation changes. She said the group loan loss rate for 2026 should remain around the top of the 50 to 60 bps range, the CET1 ratio ended at 14.3% (14% pro forma for the buyback), and liquidity remained strong with an LCR of 158%, NSFR of 136%, and an LDR of 75%.

Analysts pressed management on whether consensus 2027 costs and 2028 NII were too low or too high, and management replied that it does not guide to absolute cost numbers but expects a meaningful step down in the cost/income ratio in 2027 and low-50s by 2028. On Barclays UK deposit competition, management said the weaker product margin was largely due to a more competitive ISA season and expects sequential NII growth in Q3 and Q4 as seasonal effects fade. Questions on U.S. Consumer Bank NII and securitization margins drew a response that higher rates and compressed securitization prices are temporarily weighing on non-NII, but the underlying cards and Best Egg businesses remain on track. On PBWM, management said net new AUM was lumpy given the small scale, but sees the wider customer strategy as broadening the product set and deepening relationships through investments, advice, and digital access.