Barclays posts 'solid' Q1 performance, launches £500m buyback

(Sharecast News) - British banking giant Barclays posted a solid first‑quarter performance on Monday, delivering double‑digit returns across all divisions, announcing a fresh share buyback and reiterating its medium‑term targets as it continued to push ahead with its strategic plan. Barclays reported a Q1 return on tangible equity of 13.5%, while earnings per share came in at 14.1p for the three months ended 31 March.

Group income rose 6% year‑on‑year to £8.2bn, while net interest income excluding the investment bank and head office increased 12% to £3.4bn, keeping the group on track to meet its 2026 NII guidance. Barclays UK income grew 9%, with UK corporate bank income up 10% and investment bank income 4% higher year-on-year.

Operating costs rose 2% to £4.4bn, partly offset by roughly £200m of efficiency savings, while total expenses increased 4% to £4.5bn as credit‑impairment charges rose to £800m, including a £200m single‑name charge in its investment banking unit, pushing the firm's loan‑loss rate to 74bps.

Looking ahead, Barclays reiterated its 2026 targets, including a RoTE of more than 12%, income of around £31bn, a cost‑income ratio in the high‑50s and a CET1 ratio of 13%-14%. For 2028, it continues to target a RoTE above 14%, more than £15bn of capital returns, income growth above 5% a year and a cost‑income ratio in the low‑50s.

Barclays also unveiled plans for a new £500m share buyback once its current £1bn programme has been completed.

Chief executive CS Venkatakrishnan said: "Barclays delivered another solid quarter with a 13.5% RoTE in Q126, and double-digit returns in all our businesses. This was despite a one-off charge and impairments in the quarter. Top line income grew 6% year-on-year, driven by broad based divisional performance including in the investment bank, where we generated over £4bn quarterly income for the first time.

"Our capital position remains robust with a 14.1% common equity tier 1 ratio and we are announcing a £500m buyback today. The breadth and quality of our businesses mean we remain confident in delivering all our financial targets across a range of environments. This includes greater than 12% RoTE in 2026 and greater than 14% RoTE in 2028."

As of 0815 BST, Barclays shares were down 2.85% at 415.20p.

Reporting by Iain Gilbert at Sharecast.com

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