Barclays (BARC) Q4 2025 earnings summary

Executive summary

• Achieved all 2025 financial targets, including statutory RoTE of 11.3%, 9% revenue growth to £29.1bn, and improved cost-income ratio to 61%.

• Distributed £3.7bn to shareholders for 2025, including £1.2bn dividend and £2.5bn buyback.

• All divisions delivered double-digit RoTE; Investment Bank and US Consumer Bank showed notable improvements.

• Simplified operations, divested non-strategic businesses, and exceeded efficiency savings targets.

• Outlined a three-year plan targeting >12% RoTE in 2026 and >14% by 2028, with >£15bn distributions planned for 2026–2028.

Financial highlights

• Profit before tax up 13% to £9.1bn; EPS up 22% to 43.8p; TNAV per share up to 409p.

• Group income rose 9% year-over-year to £29.1bn; NII up 13% to £12.8bn.

• Cost base increased to £17.7bn, mainly due to acquisitions and one-off items; cost:income ratio improved to 61%.

• Loan loss rate at 52bps, within guidance; credit impairment charges £2.3bn.

• CET1 ratio at 14.3% at year-end.

Outlook and guidance

• Upgraded 2026 group income guidance to ~£31bn, with NII ex-IB & HO >£13.5bn.

• Targeting >12% RoTE in 2026 and >14% in 2028, with >£15bn shareholder distributions planned for 2026–2028.

• Cost:income ratio expected to move to high 50s in 2026 and low 50s by 2028, underpinned by £2bn efficiency savings.

• Loan loss rate guidance remains at 50-60bps through the cycle.

• CET1 ratio to remain at top end of 13–14% range.