Key facts
- Barclays' pre-tax profit jumped 17% to £6.1bn in the first half of the year, exceeding analyst forecasts of £5.9bn.
- Income in the investment banking division rose 20% due to strong performance in global banking and investment banking fees.
- Equity trading income increased by 45% to £1.26bn in the second quarter.
- The bank announced a new £1bn share buyback program.
- Barclays declared a dividend of 5.9p per share, up from 3p in the prior year.
Barclays reported a significant surge in its second-quarter profit, exceeding market expectations due to a strong performance in its equity trading division, which benefited from market volatility. The bank's pre-tax profit for the first half of the year rose 17% to £6.1bn, surpassing analyst forecasts of £5.9bn.
The bank's investment banking arm saw income increase by 20%, driven by its global banking division and investment banking fees, reaching £3.95bn. Equity trading income specifically climbed 45% to £1.26bn, although this trailed the average 69% gains seen by Wall Street banks, partly due to the SpaceX IPO.
In response to the strong results, Barclays announced a new £1bn share buyback program and increased its dividend to 5.9p per share from 3p in the prior year. The bank also raised its 2026 income target to approximately £31.5bn, citing robust growth in its investment banking arm.
Barclays' private bank and wealth management division also saw a 5% increase in income to £713m. Chief Market Analyst at IG, Chris Beauchamp, noted that while the share price is at post-financial crisis highs, the results provide reassurance. He added that the investment banking performance helps alleviate concerns about motor finance claims, with the main future concern being the uncertain global economic outlook.