Barclays reports 2025 profit jump, raises RoTE target to over 14%
#Barclays #RoTE #Annual Profit #London Stock Exchange #Shareholder Returns #Financial Results #Banking Sector
📌 Key Takeaways
- Barclays reported a substantial rise in annual profits for 2025, beating previous market estimates.
- The bank officially raised its Return on Tangible Equity (RoTE) target to over 14% for the year 2026.
- Strategic pivots toward UK retail and corporate banking have successfully reduced reliance on the investment division.
- Management confirmed a continued commitment to shareholder returns via increased dividends and share buyback programs.
📖 Full Retelling
Barclays PLC reported a significant increase in annual profits and an upgraded financial outlook from its London headquarters on Thursday morning, following a period of extensive structural transformation aimed at boosting shareholder returns. The British banking giant revealed a jump in its 2025 earnings and subsequently raised its key profitability target, known as Return on Tangible Equity (RoTE), to over 14% for the 2026 fiscal year. This optimistic recalibration comes as a direct result of the bank’s successful cost-cutting initiatives and a strategic pivot toward more reliable revenue streams within its domestic retail and corporate divisions.
The updated financial results highlight the success of CEO C.S. Venkatakrishnan’s multi-year plan to rebalance the institution's reliance on its historically volatile investment banking wing. By focusing on higher-margin lending and expanding its wealth management services, Barclays has managed to outpace analyst expectations despite a complex global macroeconomic environment. The bank’s commitment to disciplined capital allocation was further evidenced by its decision to return billions to shareholders through dividends and buybacks, signaling confidence in its long-term balance sheet stability.
Industry analysts noted that the move to raise the RoTE target above 14% places Barclays among the most ambitious top-tier lenders in Europe. The bank also updated its efficiency goals, aiming to keep operating expenses under strict control while investing in digital banking infrastructure. This strategic shift is designed to insulate the firm against potential interest rate fluctuations and provide a more predictable growth trajectory. As the 2025 fiscal period concludes, the bank maintains that its diversified business model is now better positioned to withstand market shocks while delivering consistent value to its global investor base.
🏷️ Themes
Finance, Corporate Strategy, Banking
📚 Related People & Topics
Barclays
British multinational banking and financial services company
Barclays PLC (, occasionally ) is a British multinational universal bank, headquartered in London, England. Barclays operates as five divisions: the UK Consumer Bank, UK Corporate Bank, Private Bank and Wealth Management (PBWM), Investment Bank, and the US Consumer Bank. Barclays traces its origins ...
London Stock Exchange
Stock exchange in the City of London
The London Stock Exchange (LSE) is a global stock exchange based in Paternoster Square in the City of London, England. Founded in 1801, it is one of the world's oldest continuously operating stock exchanges. As of July 2024, the exchange had a total market capitalisation of approximately US$3.4 tril...
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📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’ Gold, silver prices rise amid U.S.-Iran tensions, blowout January payrolls data Dow halts three-day win streak as blowout jobs data curbs rate cut bets Citi pushes back Fed rate cuts to May after blowout January jobs report (South Africa Philippines Nigeria) Barclays climbs after posting profit jump, raising RoTE target to over 14% Author Vahid Karaahmetovic Earnings Published 02/10/2026, 02:52 AM Updated 02/10/2026, 04:03 AM Barclays climbs after posting profit jump, raising RoTE target to over 14% 0 BARC 0.65% Investing.com -- Barclays (LON:BARC) reported a 12% rise in annual profit on Tuesday and raised its performance targets through 2028. The lender’s shares rose more than 1% in London. Profit before tax for 2025 reached £9.1 billion, compared with £8.1 billion a year earlier, and was broadly in line with the £9 billion average analyst forecast compiled by the bank. Total income for the year climbed to £29.14 billion from £26.79 billion in 2024, slightly ahead of expectations of £28.97 billion. Get deeper, analyst-backed insight into corporate earnings with InvestingPro In the fourth quarter, pre-tax profit came in at £1.9 billion, up from £1.7 billion in the same period last year and above consensus estimates of £1.72 billion, according to figures provided by Barclays . "Our progress in the past two years provides a strong foundation to deliver more for our customers, clients and shareholders," said Barclays CEO C. S. Venkatakrishnan. "As we outline in our plan for the next three years, we will invest further to improve customers’ experience and deepen relationships, while harnessing new technology, including AI, to improve efficiency and build segment-leading businesses and drive further growth." The lender raised its profitability ambitions, saying it now aims to deliver a return on tangible equity of more than 14% by 2028...