Barclays (BARC) Q2 2025 Fixed Income earnings summary

Executive summary

• Return on tangible equity (RoTE) reached 13.2% for H1 2025 and 12.3% for Q2, with all divisions delivering double-digit RoTE in Q2 and strong progress against strategic goals.

• Total income grew 14% year-on-year to $7.2 billion, with H1 2025 attributable profit of £1.4bn, up 21% year-over-year.

• The group is executing its three-year plan, with over half of the planned $30 billion/£30bn business growth RWAs deployed, including the acquisition of Tesco Bank.

• Stable income streams now account for 40% of Investment Bank income, up from 29% in 2021.

• Risk-weighted assets (RWAs) remain stable, with a focus on balanced growth across UK and Investment Bank segments.

Financial highlights

• CET1 ratio at 14.0% in Q2 2025, supported by c.100bps capital generation in H1 2025.

• Q2 impairment charge was $469 million, equating to a loan loss rate of 44 basis points, maintaining through-the-cycle guidance of 50-60bps.

• Group NII (excluding Investment Bank and Head Office) at £7.2bn for H1 2025; Barclays UK NII at £3.1bn.

• Tier 1 ratio at 17.8%, with AT1 component of 3.8%; MREL ratio at 35.4% and over 70% of GBP 14 billion issuance plan completed.

• Total payout guidance for 2025 is c.11% of group, with a progressive increase versus 2024.

Outlook and guidance

• 2025 ROTE expected at c.11%, with a target of >12% for 2026.

• CET1 ratio to be managed towards the upper half of the 13-14% target range.

• Multi-year plan for at least £10bn total payout from 2024-2026, subject to performance and regulatory approval.

• Loan loss rate guidance remains at 50-60bps through the cycle, including charges from the GM card acquisition.

• Structural hedge income locked in at GBP 11.1 billion across 2025-2026, supporting multi-year NII growth.