Barclays posts 23 per cent rise in first-half profit

BARCLAYS reported a 23 per cent rise in first-half profit, exceeding expectations, as increased trading activity driven by US president Donald Trump's trade tariffs boosted its markets business.

The bank said on Tuesday that pretax profit for January to June reached 5.2 billion pounds, above the analysts' forecast of 4.96 billion pounds.

Barclays announced a share buyback of 1 billion pounds and a half-year dividend of 3 pence per share, amounting to 1.4 billion pounds in total capital distributions to shareholders. This marks a 21 per cent increase from the previous year.

The bank’s investment unit supported the results despite a shift in spending towards its domestic retail and corporate banking business. "We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors," CEO CS Venkatakrishnan said.

Jonathan Pierce, an analyst at Jefferies, noted that the results were ahead of expectations and indicated Barclays' 2026 target for a return on tangible equity of more than 12 per cent appears achievable.

The bank said the financial impact of Britain's investigation into banks' disclosure of motor finance commissions could differ significantly from the 90 million pounds it has already set aside. Lenders are awaiting the Supreme Court’s ruling on the case, expected on Friday.

Barclays' trading results followed those of Wall Street banks such as Goldman Sachs, which also reported strong earnings from volatile markets. The British bank’s equities income rose 25 per cent, compared with an average 18 per cent rise among the top five US banks, according to Reuters calculations based on company statements.

Revenue from trading fixed income, currencies and commodities increased 26 per cent for Barclays, compared to an average 14 per cent rise at its US rivals Bank of America, Citigroup, JPMorgan, Goldman Sachs and Morgan Stanley.

Investment banking fee income from advising on deals fell 16 per cent for Barclays, while its Wall Street peers recorded an average gain of 13 per cent.

(With inputs from Reuters)