Barclays reports Q2 EPS 11.7p vs. 8.3p last year

Group RoTE was 12.3% with profit before tax of GBP 2.5B. All divisions delivered double- digit RoTE in Q225. Group income of GBP 7.2B was up 14% year-on-year, with Group net interest income excluding Barclays (BCS); Investment Bank and Head Office of GBP 3.1B, up 12% year-on-year; Barclays UK income increased 12%, driven by higher structural hedge income and the Tesco Bank acquisition; Barclays UK Corporate Bank income increased 17%, reflecting higher average deposit and lending balances, and higher structural hedge income; Barclays Private Bank and Wealth Management income increased 9%, reflecting higher client balances and transactional activity; Barclays Investment Bank income increased 10%, driven by Global Markets, partially offset by Investment Banking; Barclays US Consumer Bank income was stable, reflecting card balance growth offset by the strengthening of GBP against USD. On a USD basis income was up 7%. Group total operating expenses were GBP 4.2B, up 5% year-on-year, with a cost: income ratio of 59%; Group operating costs increased 4% to GBP 4.1B, reflecting Tesco Bank costs, further investment spend and business growth, inflation, partially offset by c.GBP 200M of cost efficiency savings; Credit impairment charges were GBP 0.5B with an LLR of 44bps, including the impact of Tesco Bank. C. S. Venkatakrishnan, Group Chief Executive, commented, “We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors. At the mid-point of the plan, with six quarters of consistent execution, we have achieved over half of the c.GBP 30B planned UK risk weighted assets growth, half of the target income growth and realised two-thirds of the GBP 2B planned gross cost efficiency savings. In Q225 we delivered RoTE of 12.3%; year-on-year income grew by 14% and profit before tax by 28%. Earnings per share grew by 41% reflecting profit growth and the impact of share buybacks, with tangible net asset value per share growth of 13%. Given strong organic capital generation and common equity tier 1 ratio of 14.0%, today we announced a further GBP 1 bshare buyback and a half year dividend of 3.0p per share, equating to GBP 1.4B of total capital distributions in respect of the first half of 2025, a 21% increase year-on-year.”