Barclays lifts targets as annual earnings jump, adds £1bn buyback

(Sharecast News) - UK bank Barclays on Tuesday lifted performance targets after annual profits jumped 13% as it also unveiled a new £1bn buyback and planned to return £15bn to investors over the next two years.

Pre-tax profit came in at £9.1bn, in line with forecasts, with group income up 9% to £29.1bn. Group net interest income, the difference between loan and savings rates), excluding Barclays investment bank and head office, was £12.8bn for the year, against expectations of £12.71bn.

Barclays is now aiming for a return on tangible equity of more than 14% in 2028, up from previous guidance of greater than 12% in 2026, and capital distributions of greater than £15bn up to 2028.

"As we outline in our plan for the next three years, we will invest further to improve customers' experience and deepen relationships, while harnessing new technology, including AI, to improve efficiency and build segment-leading businesses and drive further growth," said chief executive CS Venkatakrishnan.

AJ Bell head of markets Dan Coatsworth said the numbers were a "perfect example" of how Barclays' diversified interests "typically work in its favour".

"Corporate and investment banking interests were strong while the UK retail banking and wealth management operations were lacklustre. Barclays has outlined near and medium-term targets which imply stronger returns and big share buybacks. The targets sound impressive, but the market seems nonplussed by the overall package."

"There wasn't enough to blow the lights out in terms of recent performance, and so much good news is already in the price."

"Barclays' figures might warrant small upgrades, but there isn't enough power in the results to keep the share price rally going."

Reporting by Frank Prenesti for Sharecast.com