Barclays (BARC) Q4 2025 earnings summary

Executive summary

• Achieved all 2025 financial targets, including 11.3% RoTE, 9% revenue growth to £29.1bn, and improved cost-income ratio to 61%, supported by £700m in gross efficiency savings.

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

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

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

• Set new three-year targets: >12% RoTE in 2026, >14% in 2028, and >£15bn distributions from 2026–2028.

Financial highlights

• Pre-provision profit and profit before tax up 13% to £9.1bn; EPS up 22% to 43.8p.

• Group NII up 13% to £12.8bn; stable deposits and lending growth across all divisions.

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

• Cost base at £17.7bn, with one-off items including £235m motor finance provision and £50m Q4 costs.

• Loan loss rate at 52bps, within 50–60bps guidance and through-the-cycle expectations.

Outlook and guidance

• Upgraded 2026 group income guidance to ~£31bn; expect >12% RoTE in 2026 and >14% in 2028.

• Plan to double investment by 2027, focusing on technology and fee growth.

• Targeting >5% annual UK lending growth, low 50s group cost-income ratio by 2028, and >£15bn shareholder distributions by 2028.

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

• Expect continued positive jaws and stable cost growth, with efficiency savings offsetting inflation.