10 February 2026
If you are covering Barclays’ latest results, please see the following comment from Will Howlett, financials analyst at Quilter Cheviot:
“Barclays reported a strong fourth quarter this morning, with profits coming in ahead of expectations. The bank kept its 2026 return on tangible equity target unchanged but now aims for more than 14% in 2028, pointing to further upside. It also plans to return over £15 billion to shareholders between 2026 and 2028, equivalent to around 22% of its current market value and underpinning its capital return story.
“Barclays is lifting its dividend significantly to £2 billion in 2026 up from £1.2 billion in 2025 and has announced another £1 billion buyback today. Continued buybacks have reduced the share count by 4% and supported a 15% rise in tangible net asset value year on year. With its shares still trading at a discount to the sector despite strong tangible book value growth, we continue to see value.
“The bank’s profit before tax rose 12% to £1.9 billion, 8% ahead of consensus with better revenues and provision slightly offset by higher costs. This was primarily driven by the US consumer business, and a continued steady performance in the UK and its investment bank.
“The common equity tier one ratio increased to 14.3%, above the bank’s target range, prompting today’s buyback announcement. Barclays also set new goals, having delivered on all of the targets set out at its FY23 results. Alongside the upgraded return on tangible equity target, it has set out to achieve group income and UK lending growth above 5% a year and its cost-income ratio is expected to fall to low 50’s compared to 61% in 2025. Barclays remains attractively valued and is at a discount to the sector – although it still has a slight gap to fill compared to its competitors in terms of profitability.”
