Barclays PLC (LON:BARC) has announced its 2025 Results Announcement.
Performance Highlights
Barclays achieved all financial guidance in 2025 including a return on tangible equity (RoTE) of 11.3%. Barclays is on track to deliver 2026 targets and is announcing new targets to 2028, including RoTE of greater than 14% in 2028 and capital distributions of greater than £15bn between 2026 and 2028
C. S. Venkatakrishnan, Group Chief Executive, commented
“Barclays achieved all financial guidance in 2025. RoTE was 11.3% as all divisions delivered double-digit RoTE. We distributed £3.7bn to our shareholders, including the £1.0bn share buyback announced today, up from £3.0bn in 2024. We ended the year with a robust common equity tier 1 (CET1) ratio of 14.3% (14.0% rebased for buyback). We grew profit before tax by 13%, earnings per share (EPS) by 22% and tangible net asset value (TNAV) per share by 15% to 409p, a tenth consecutive quarter of growth.
Our progress in the past two years provides a strong foundation to deliver more for our customers, clients and shareholders. 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. Our aim is to secure sustainably higher returns through to 2028 and beyond, delivering Group RoTE of greater than 14% in 2028 and greater than £15bn of capital distributions to shareholders between 2026 and 2028.”
| ● | Announced 2028 financial targets | |
| ● | FY25 Group RoTE of 11.3% (FY24: 10.5%) with earnings per share (EPS) of 43.8p (FY24: 36.0p) | |
| ● | Total capital distributions of £3.7bn announced in relation to 2025 23% higher than 2024 | |
| – | Reflecting a total dividend of 8.6p (£1.2bn) and total share buybacks of £2.5bn for 2025. This includes a 5.6p (£0.8bn) full year dividend, and the intention to initiate a further share buyback of up to £1.0bn | |
| ● | FY25 Group net interest income (NII) excluding Barclays Investment Bank (IB) and Head office of £12.8bn, of which Barclays UK was £7.7bn, meeting 2025 guidance of greater than £12.6bn and £7.6bn respectively | |
| ● | Continued cost discipline with FY25 Group cost: income ratio improving to 61% (FY24: 62%) driven by positive operating leverage for the third consecutive year | |
| ● | Achieved £0.7bn of cost efficiency savings in FY25, exceeding the c.£0.5bn guidance, with a total of £1.7bn across FY24 and FY25 | |
| ● | Robust risk management with FY25 Group loan loss rate (LLR) of 52bps (FY24: 46bps), within the through the cycle range of 50-60bps | |
| ● | Strong balance sheet with CET1 ratio of 14.3% | |
| – | Taking into account the impact of the £1.0bn share buyback announced today, the CET1 ratio as of 31 December 2025 would be reduced to 14.0% (at the top end of the 13-14% target range) | |
| ● | TNAV per share of 409p (December 2024: 357p) | |
Key financial metrics:
| Income | Profit before tax | Attributable profit | Cost: income ratio | LLR | RoTE | EPS | TNAV per share | CET1 ratio | Total capital return | |
| FY25 | £29.1bn | £9.1bn | £6.2bn | 61% | 52bps | 11.3% | 43.8p | 409p | 14.3% | £3.7bn |
| Q425 | £7.1bn | £1.9bn | £1.2bn | 66% | 48bps | 8.5% | 8.6p |
FY25 Performance highlights:
| ● | Group RoTE was 11.3% (FY24: 10.5%) with profit before tax of £9.1bn (FY24: £8.1bn). All divisions delivered double-digit RoTE in FY25 | |
| ● | Group income of £29.1bn increased 9% year-on-year. Group NII excluding IB and Head Office was £12.8bn, up 13% year-on-year | |
| – | Barclays UK income increased 5%, reflecting higher structural hedge income and Tesco Bank NII, partially offset by the non-repeat of the £0.6bn day 1 gain from the acquisition of Tesco Bank in the prior year | |
| – | Barclays UK Corporate Bank (UKCB) income increased 16%, reflecting higher average deposit and lending balances, and higher structural hedge income | |
| – | Barclays Private Bank and Wealth Management (PBWM) income increased 5%, driven by growth in deposit, invested asset and loan balances from net new inflows and market movements | |
| – | Barclays Investment Bank (IB) income increased 11%, with growth across Global Markets and Investment Banking, supported by continued growth in more stable income streams (Financing and International Corporate Bank) | |
| – | Barclays US Consumer Bank (USCB) income increased 11%, reflecting the impact of repricing initiatives, business growth and the acquisition of General Motors co-branded cards portfolio (GM portfolio) in Q325, partially offset by the strengthening of GBP against USD | |
FY25 Performance highlights (continued):
| ● | Group total operating expenses were £17.7bn, up 6% year-on-year | |||
| – | Group operating costs increased 5% to £17.0bn, reflecting Tesco Bank run rate and integration costs, further investment spend, business growth and inflation, partially offset by £0.7bn of cost efficiency savings | |||
| – | FY25 total structural cost actions of £0.3bn (FY24: £0.3bn) | |||
| – | Litigation and conduct charges of £0.4bn (FY24: £0.2bn), included a £235m charge for motor finance redress in Q325 | |||
| ● | Credit impairment charges were £2.3bn (FY24: £2.0bn) with an LLR of 52bps (FY24: 46bps) | |||
| ● | CET1 ratio of 14.3% (December 2024: 13.6%), with RWAs of £356.8bn (December 2024: £358.1bn) and TNAV per share of 409p (December 2024: 357p) | |||
Q425 Performance highlights:
| ● | Group RoTE was 8.5% (Q424: 7.5%1) with profit before tax of £1.9bn (Q424: £1.7bn1) | |
| ● | Group income of £7.1bn increased 2% year-on-year. Q424 included the £0.6bn day 1 gain from the acquisition of Tesco Bank | |
| – | Group NII excluding IB and Head Office was £3.4bn, up 12% year-on-year | |
| ● | Group total operating expenses were £4.7bn, up 1% year-on-year, with a cost: income ratio of 66% (Q424: 66%) | |
| – | Group operating costs increased 3% to £4.4bn, reflecting business growth, inflation and one-off costs, including a VAT expense in Barclays UK, partially offset by c.£0.2bn of cost efficiency savings | |
| ● | Credit impairment charges were £0.5bn (Q424: £0.7bn) with an LLR of 48bps (Q424: 66bps). Q424 included a £0.2bn day 1 impact from the acquisition of Tesco Bank | |
| 1 | Q424 included the day 1 impacts from the acquisition of Tesco Bank: total income gain of £556m, credit impairment charges of £209m, and profit before tax benefit of £347m. |
Group financial targets1:
2026 targets
| ● | Returns: Group RoTE of greater than 12% | |||
| ● | Capital returns2: plan to return at least £10bn of capital to shareholders between 2024 and 2026, through dividends and share buybacks, with a continued preference for buybacks | |||
| – | Progressive increase in total capital returns versus 2025 | |||
| – | Share buybacks announced quarterly | |||
| – | Dividends to be paid semi-annually, including planned £2bn dividend for 2026 | |||
| ● | Income: Group total income of c.£31bn | |||
| – | Group NII excluding IB and Head Office greater than £13.5bn and Barclays UK NII of £8.1bn – £8.3bn | |||
| ● | Costs: Group cost: income ratio of high 50s in percentage terms | |||
| ● | Impairment: expect Group LLR of 50-60bps through the cycle | |||
| ● | Capital: CET1 ratio target range of 13-14% | |||
| – | IB RWAs mid 50s% of Group RWAs | |||
| – | Impact of regulatory change on RWAs in line with our prior guidance of c.£19-26bn | |||
| – | c.£3-10bn RWAs from Basel 3.1, with implementation expected from 1 January 20273 | |||
| – | c.£16bn RWAs from USCB moving to an Internal Ratings Based (IRB) model, subject to portfolio changes and regulatory approval, c.£5bn expected on 1 January 2027 with remainder anticipated later in 2027 | |||
| – | Expect Pillar 2A capital to reduce upon implementation of Basel 3.1 and USCB IRB | |||
2028 targets
| ● | Returns: Group RoTE of greater than 14% | |
| ● | Capital returns2: plan to return greater than £15bn of capital to shareholders between 2026 and 2028, through dividends and share buybacks. This provides capacity for additional investment and growth, exceeding the level of investment in the current plan | |
| ● | Income: greater than 5% compound annual growth rate (CAGR) 2025-2028 | |
| ● | Costs: Group cost: income ratio of low 50s in percentage terms. Cost target includes total gross efficiency savings of c.£2bn in 2026-2028 | |
| ● | Impairment: expect Group LLR of 50-60bps through the cycle | |
| ● | Capital: CET1 ratio target range of 13-14% | |
| – | IB RWAs of c.50% of Group RWAs | |
| 1 | Our targets and guidance are based on management’s current expectations as to the macroeconomic environment and the business and may be subject to change. |
| 2 | This multi-year plan is subject to supervisory and Board approvals, anticipated financial performance and our published CET1 ratio target range of 13-14%. |
| 3 | Fundamental review of the trading book (FRTB) impact mostly expected in 2027. |
