Barclays reports Q4 EPS 8.6p vs. 6.7p last year

Group RoTE was 8.5% with profit before tax of GBP 1.9B; Group income of GBP 7.1B increased 2% year-on-year. Q424 included the GBP 0.6B day 1 gain from the acquisition of Tesco Bank; Group NII excluding IB and Head Office was GBP 3.4B, up 12% year-on-year; Group total operating expenses were GBP 4.7B, up 1% year-on-year, with a cost: income ratio of 66%; Group operating costs increased 3% to GBP 4.4B, reflecting business growth, inflation and one-off costs, including a VAT expense in Barclays (BCS) UK, partially offset by c.GBP 0.2B of cost efficiency savings; Credit impairment charges were GBP 0.5B with an LLR of 48bps. Q424 included a GBP 0.2B day 1 impact from the acquisition of Tesco Bank. Reports CET1 ratio of 14.3%. C. S. Venkatakrishnan, Group Chief Executive, commented “Barclays achieved all financial guidance in 2025. RoTE was 11.3% as all divisions delivered double-digit RoTE. We distributed GBP 3.7B to our shareholders, including the GBP 1B share buyback announced today, up from GBP 3B in 2024. We ended the year with a robust common equity tier 1 ratio of 14.3%. We grew profit before tax by 13%, earnings per share by 22% and tangible net asset value per share by 15% to 409p, a tenth consecutive quarter of growth. Our progress in the past two years provides a strong foundation to deliver more for our customers, clients and shareholders. As we outline in our plan for the next three years, we will invest further to improve customers’ experience and deepen relationships, while harnessing new technology, including AI, to improve efficiency and build segment-leading businesses and drive further growth. Our aim is to secure sustainably higher returns through to 2028 and beyond, delivering Group RoTE of greater than 14% in 2028 and greater than GBP 15B of capital distributions to shareholders between 2026 and 2028.”