Barclays (BARC) Q3 2026 earnings summary

Executive summary

• Q3 income rose 3% to £7.365bn and profit before tax rose 12% to £2.322bn; RoTE was 11.7% in Q3 and 13.8% YTD, or 13.4% excluding the American Airlines gain.

• Q3YTD income reached £23.866bn, up 8% YoY; FY26 income target of c.£31.5bn remained on track.

• Management reaffirmed FY26 targets and 2028 ambitions, with a new £500m buyback announced.

Financial highlights

• Q3 EPS was 12.3p, up 18% YoY; Q3YTD attributable profit rose 17% to £5.837bn and EPS increased 23% to 43.0p.

• Q3 operating expenses were £4.560bn, up 1% YoY; impairment charges fell 20% to £503m and the loan loss rate was 43bps.

• Q3YTD Group NII excluding Investment Bank and Head Office was £10.250bn, up 9% YoY; Q3 Group NII was up 4%.

• Group deposits were £599bn, up 4% YoY; RWAs increased £5.0bn in Q3 to £369.8bn.

• Q3 structural cost actions were £201m versus £93m a year earlier; quarterly efficiency savings of c.£200m partly offset inflation, investment and business growth.

Outlook and guidance

• FY26 targets: income c.£31.5bn, RoTE above 12%, costs c.£18.5bn, cost:income ratio in the high 50s and loan loss rate within the 50–60bps through-cycle range.

• FY26 NII excluding Investment Bank and Head Office is expected above £13.7bn; Barclays UK NII guidance is £8.1–8.3bn, around the midpoint.

• FY27 costs are expected at c.£18.4bn; plans include modest cost growth and positive operating jaws each year through 2028.

• 2028 targets include RoTE above 14%, income CAGR above 5% for 2025–28, cost:income ratio in the low 50s and gross efficiency savings above £2bn over 2026–28.

• Basel 3.1 from 1 January 2027 is expected to add £8–15bn of RWAs; the Pillar 2A CET1 requirement is expected to fall 59bps, reducing MDA to 11.6%.