Barclays has posted an impressive 23% increase in its first-half profit for 2025, bringing the total to £5.2 billion ($6.94 billion). This significant jump has exceeded analysts’ expectations, underlining the bank’s solid performance amid global market uncertainties. The surge is largely attributed to heightened trading volumes, particularly in fixed income and equities, sparked by trade disruptions stemming from U.S. President Donald Trump’s tariff policies.
The trading boom was especially beneficial for Barclays’ investment banking division, which saw £3.3 billion in second-quarter income, significantly surpassing the anticipated £3 billion. Despite a challenging global landscape, Barclays managed to offset a 16% drop in advisory fees – a contrast to the performance of major U.S. banks, which saw a 13% increase in this area.
In addition to bolstering its profits, Barclays announced a £1 billion share buyback programme, enhancing shareholder returns. The bank also declared a half-year dividend of 3 pence per share, which equates to £1.4 billion in capital distributions, a 21% rise from the previous year. This move aims to further solidify the trust of its investors.
CEO C.S. Venkatakrishnan highlighted that Barclays is on track to meet its 2026 goal of achieving a return on tangible equity (ROTE) of more than 12%. This optimism comes despite ongoing challenges, including the UK’s motor finance commission probe, which could have a financial impact greater than the previously estimated £90 million.
Looking ahead, Barclays is increasingly focusing on its core domestic retail and corporate banking sectors, with the aim of generating more stable and sustainable returns for its investors. This strategic shift reflects the bank’s commitment to navigating current market volatility while laying the foundation for long-term growth.
