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%, supported by £700m gross efficiency savings.

• Delivered £3.7bn shareholder distributions for 2025, with a £1.2bn dividend and £2.5bn buyback.

• All divisions posted double-digit RoTE; Investment Bank RoTE rose to 10.6%, US Consumer Bank to 11%.

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

• CET1 ratio stood at 14.3%, reflecting robust capital generation and prudent risk management.

Financial highlights

• Pre-provision profit up 13% year-on-year; profit before tax up 13% to £9.1bn.

• EPS increased 22% to 43.8p; group NII up 13% to £12.8bn.

• Loan loss rate at 52bps, within 50–60bps guidance.

• Tangible net asset value per share up to 409p, up from 357p at end of FY24.

• Cost base rose £1bn to £17.7bn, mainly due to Tesco Bank acquisition and one-off items.

Outlook and guidance

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

• Targeting >12% RoTE in 2026 and >14% in 2028, with cost-income ratio expected to move to high 50s% in 2026 and low 50s% by 2028.

• Expecting >5% annual UK lending growth and >5% group income CAGR to 2028.

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

• Plan includes doubling investment, especially in technology and AI, to drive future growth.