Barclays (BARC) investor relations material

Executive summary

• Achieved group ROTE of 13.5% in Q1 2026, with profit before tax up to £2.8bn and EPS up 8% to 14.1p, demonstrating resilience amid volatility, one-off charges, and higher impairments.

• Group income rose 6% year-over-year to £8.2bn, driven by NII growth and strong investment bank activity.

• All divisions delivered double-digit returns, with UK businesses and US Consumer Bank ROTE at or above 18%, and Investment Bank income exceeding £4bn for the first time in a quarter.

• Announced a £500m share buyback and realized £150m in gross cost efficiency savings in the quarter.

• Operational improvements and efficiency savings support confidence in 2026 (>12% ROTE) and 2028 (>14% ROTE) targets.

Financial highlights

• Profit before impairment rose 8% year-over-year; profit before tax increased to £2.8bn, up 3% YoY.

• EPS increased 8% to 14.1p, aided by share count reduction.

• Group NII (excl. IB and head office) up 12% year-over-year to £3.4bn; stable income streams grew 7%.

• Cost-to-income ratio improved to 56% from 57% a year earlier; total costs rose 4% to £4.5bn.

• CET1 ratio at 14.1% (rebased 13.9%), supporting capital return plans.

Outlook and guidance

• Confident in delivering >12% ROTE in 2026 and >14% in 2028, with FY26 income guidance of ~£31bn and Group NII expected to exceed £13.5bn.

• Cost-to-income ratio targeted in the high 50s% for 2026; loan loss rate expected at the top of 50–60bps range for 2026.

• UK lending expected to grow >5% CAGR from 2025–2028.

• Progressive increase in total payout, with a planned £2bn dividend for 2026 and >£15bn capital return targeted for 2026-2028.

• CET1 ratio targeted at 13-14% through 2026.