Barclays (BARC) Q2 2026 Fixed Income earnings summary

Executive summary

• Q2 2026 delivered a group RoTE of 16.1% and H1 2026 RoTE of 14.8%, exceeding the >12% FY26 target, with all three U.K. businesses above 20% RoTE and U.S. Consumer Bank at 10.5% (excluding one-time gains).

• Group income rose 16% YoY to £8.3bn, with upgraded 2026 guidance to approximately GBP 31.5 billion.

• Announced £2.3bn capital distributions for H1 2026 (+61% YoY), including £1.0bn buyback and £0.8bn dividend.

• Cost:income ratio improved to 54% in Q2, with positive operating jaws and over £350m gross efficiency savings year to date.

• Completed Best Egg acquisition in US Consumer Bank and GoHenry acquisition in Barclays UK.

Financial highlights

• Statutory RoTE: 16.1% in Q2, 14.8% in H1; EPS up 43% YoY.

• Group income: £8.3bn (+16% YoY); NII: £3.4bn (+10% YoY).

• CET1 ratio ended the quarter at 14.3% (14% pro forma for GBP 1 billion buyback), at the top end of 13-14% target range.

• Loan loss rate: 51 basis points for Q2, within 50-60bps through-the-cycle guidance.

• Group deposit base: £594bn (+5% YoY), with strong growth in International Corporate Bank deposits.

Outlook and guidance

• Upgraded 2026 group income target to approximately GBP 31.5 billion; NII guidance above £13.7bn.

• Confidence in achieving group RoTE above 12% in 2026 and targeting over 14% by 2028.

• Group loan loss rate expected to remain at the top of the 50-60 basis point range for 2026.

• Regulatory RWA inflation guidance for 2027 unchanged at GBP 19-26 billion, including Basel 3.1 and IRB implementation in U.S. Consumer Bank.

• High 50s cost-income ratio target maintained for 2026.