All 2025 Targets Achieved; Upgraded 2026 Income Guidance
Barclays achieved all financial targets for FY2025 and upgraded 2026 income guidance to circa GBP 31.0 billion (from circa GBP 30.0 billion); top-line grew 9% y/y to GBP 29.1bn.
Improved Profitability Metrics
Return on tangible equity increased to 11.3% (from 10.5% a year earlier). Profit before tax increased 13% y/y to GBP 9.1bn and EPS rose 22% y/y to 43.8p.
Strong Net Interest Income and Structural Hedge Performance
Group NII rose 13% y/y to GBP 12.8bn; structural hedge income increased by GBP 1.2bn to GBP 5.9bn and contributed c.46% of group NII (ex-IB & head office). Hedge duration extended to ~3.5 years, underpinning predictable NII.
Cost Efficiency Progress
Delivered GBP 700m of gross efficiency savings in 2025 (vs GBP 500m target), with GBP 1.7bn cumulative toward a GBP 2.0bn target by 2026; group cost/income ratio improved to 61%.
Improved Division-Level Returns
All divisions generated double-digit RoTE in 2025: Investment Bank RoTE rose 2.1ppt to 10.6%, U.S. Consumer Bank RoTE rose 1.9ppt to 11% (FY) and Barclays U.K. RoTE 20.7% for the year (Q4 RoTE 23.8%).
Capital Strength and Shareholder Distributions
Ended year at top of CET1 13%-14% range (CET1 14.3% at quarter end); announced GBP 3.7bn of 2025 shareholder distributions (GBP 1.2bn dividends, GBP 2.5bn buybacks including a GBP 1bn tranche) and signalled >GBP 15bn of distributions across 2026–28.
Retail & Corporate Growth Momentum in the U.K.
Delivered GBP 20bn of the GBP 30bn RWA growth target (including GBP 7bn in 2025); 6 consecutive quarters of mortgage growth and 5 consecutive quarters of organic loan growth in the U.K. Corporate Bank; U.K. Corporate Bank lending +18% y/y and market share +100bps to 9.6%.
Strong Markets and Financing Performance
Market segments grew: financing income +20% y/y, FICC +14%, equities +21%; intermediation revenues +13% y/y; prime balances up ~30% y/y and Markets income grew year-on-year for 7 consecutive quarters.
Operational and Strategic Investments (Technology & AI)
Accelerating investment in cloud, data platforms and AI (89% apps on cloud); >250 AI tools/models in use; GitLab rollout improved code deployment speed by ~15% and Microsoft Copilot reportedly saved >1 million work hours in 2025; employee share grant (~GBP 500 worth of shares) for most colleagues.
Robust Liquidity and Capital Metrics
Liquidity and funding metrics strong: loan-to-deposit ratio 73%, NSFR 135%, LCR 170%; TNAV per share increased 52p y/y to 409p.