28 July 2026
If you are covering Barclays' latest financial results, please find below a comment from Will Howlett, financials analyst at Quilter Cheviot:
“Barclays’ second quarter results were solid with a small beat on expectations and better capital return, but the performance drivers were a bit mixed with strength in the investment bank offset by small misses elsewhere. Revenue guidance was raised but consensus expectations are largely there already, and additional structural cost actions, one-off in nature, are flagged for the second half of the year.
"Profits increased 31% year on year, with revenues and loan losses both better than anticipated. The investment bank in particular was strong, albeit following in the footsteps of the US banks which also reported robust revenues. The net interest margin for Barclays UK edged lower, but the bank has done a good job hedging this and achieving volume growth in the number of loans it has written. Group loan losses were well behaved at 51 basis points and after one-off losses (related to MFS) taken in the first quarter.
After delivering on all its financial targets set out at its 2023 results, Barclays published new goals in February, alongside 2025’s results. Barclays targets a return on tangible equity of more than 12% in 2026 and over 14% in 2028 (consensus now at 14.7%). Barclays sees a total payout of greater than £15bn over 2026-2028, equivalent to around 20% of market cap. These are ambitious targets and continues the positive investment narrative the business has delivered over recent months. The bank remains sharply discounted to the sector despite its now multiple years of delivery."
