Barclays reported a 19% year-on-year increase in first-quarter pre-tax profit, reaching £2.7 billion, surpassing analyst expectations of £2.5 billion. The strong performance was driven by a 16% rise in investment banking income to £3.9 billion, with fixed income trading revenues up 21%, outpacing the 6% average increase among major U.S. banks. The bank’s markets division capitalized on heightened volatility stemming from U.S. President Donald Trump’s tariff policies, leading to a 16% increase in trading revenues to £2.6 billion. Fixed income, currencies, and commodities trading saw a 21% rise, while equities trading increased by 9%.
Investment banking fees grew by 4% to £644 million, despite a 3% decline in M&A revenues due to delayed transactions amid economic uncertainty. Barclays now holds a 3.4% share of global investment banking fees, ranking sixth worldwide.
Total income for the quarter rose 11% to £7.7 billion, with earnings per share increasing by 26%. The bank’s return on tangible equity reached 14%, and the CET1 capital ratio stood at 13.9%.
Barclays raised its 2025 net interest income guidance to over £12.5 billion, citing strong domestic lending growth. The bank also set aside a £91 million charge for potential future losses related to global trade tensions.
CEO C.S. Venkatakrishnan highlighted the bank’s diversified business model and proactive risk management as key factors in delivering strong returns across various macroeconomic scenarios. Despite the robust first-quarter results, Barclays remains cautious amid ongoing trade conflicts and economic uncertainties, which could impact future performanc
