Barclays lifts income target as investment bank beats forecasts

Barclays PLC upgraded its 2026 income target and announced a £1 billion share buyback after stronger investment banking and interest income lifted second-quarter profit. The FTSE 100 bank reported group income of £8.3 billion in the second quarter, up 16% on a year ago, while pre-tax profit rose 31% to £3.3 billion. Return on tangible equity in the quarter improved to 16.1% from 12.3% a year earlier and 13.5% in Q1.

Investment banking revenue rose 20% to £3.96 billion, beating the £3.66 billion City consensus, as global markets income and advisory fees increased. Fixed-income, currencies and commodities revenue of £1.47 billion fell slightly short of the £1.51 billion forecast. UK lending balances grew 5% year on year, as mortgage margin pressure partly offset higher structural hedge income at Barclays UK. UK's net interest margin widened to 3.70% from 3.55% a year earlier.

The bank increased its 2026 group income target to around £31.5 billion from £31 billion. Guidance for net interest income excluding the investment bank and head office was raised to more than £13.7 billion from more than £13.5 billion. Barclays maintained its forecast for full-year return on tangible equity above 12%. It expects its loan-loss rate near the top of its 0.5% to 0.6% range after impairment charges increased to £600 million in the quarter.

Chief executive CS Venkatakrishnan said Barclays had delivered "another strong quarter", supported by UK lending growth and the investment bank performing well "in a favourable environment". The bank announced a buyback of up to £1 billion and a first-half dividend of 5.9p a share, up from 3p. Total first-half distributions reached £2.3 billion, 61% mor...