Barclays (BARC) Q4 2025 Fixed Income earnings summary

Executive summary

• Achieved all 2025 financial targets, including 11.3% return on tangible equity and 9% year-on-year income growth to £29.1bn.

• Profit before tax rose to £9.1bn, and EPS increased to 43.8p, reflecting strong operating leverage and cost discipline.

• Cost-income ratio improved to 61%, and loan loss rate was 52bps, within guidance.

• Maintained strong capital position, ending at the top of the 13%-14% CET1 range after buyback.

• Focused on capital discipline, stable RWAs in Investment Bank, and growth in high-return UK businesses.

Financial highlights

• Net interest income (NII) guidance met for both group and UK, with group NII up 13% to £12.8bn.

• CET1 ratio at 14.3% (14% post-buyback), with 173bps capital generated from profits.

• Dividend payout of £1.2bn and buybacks totaling £2.5bn, exceeding guidance.

• Average LCR at 170% (£131bn excess liquidity), NSFR at 135%, and loan-to-deposit ratio at 73%.

• Tangible net asset value per share increased to 409p.

Outlook and guidance

• Targeting Group RoTE >12% in 2026 and >14% in 2028, with progressive increases in total payout.

• Group income guidance for FY26 is c.£31bn, with NII expected to exceed £13.5bn.

• CET1 ratio expected to remain within 13-14% range, with >200bps of capital generation in 2026.

• Expecting >5% annual loan growth to 2028 and stable Investment Bank RWAs (~£200bn).

• Group cost-income ratio expected in low 50s by 2028.