Barclays Raises 2026 Income Target as First-Half Profit and Shareholder Returns Grow

Barclays PLC has raised its 2026 income target after reporting stronger first-half earnings, improved returns and growth across each of its main banking divisions.

For the six months ended 30 June 2026, group income increased 11% to £16.5 billion, while profit before tax rose 17% to £6.1 billion. Earnings per share climbed 24% to 30.7p.

The bank also announced a new share buyback of up to £1.0 billion and a 5.9p per share interim dividend. Including the £500 million buyback announced with its first-quarter results, total capital distributions for the half year reached £2.3 billion.

Investors can read the original company announcement for the complete financial statements and risk disclosures.

Barclays' first-half results at a glance

Metric	H1 2026	H1 2025	Change
Total income	£16.5 billion	£14.9 billion	11%
Profit before tax	£6.1 billion	£5.2 billion	17%
Attributable profit	£4.2 billion	£3.5 billion	19%
Earnings per share	30.7p	24.7p	24%
Return on tangible equity	14.8%	13.2%	1.6 percentage points
Cost-to-income ratio	55%	58%	Improved
Credit impairment charges	£1.4 billion	£1.1 billion	25% higher
Interim dividend	5.9p	3.0p	97% higher

Return on tangible equity, or RoTE, measures the profit generated from shareholders' tangible capital. Barclays produced a group RoTE of 14.8%, ahead of its 2026 target of more than 12%.

The second quarter was stronger still, with RoTE reaching 16.1%, income rising 16% to £8.3 billion and profit before tax increasing 31% to £3.3 billion.

Higher guidance is the main headline

Management increased its 2026 group income target from approximately £31 billion to approximately £31.5 billion.

Guidance for net interest income excluding the Investment Bank and Head Office was also lifted from more than £13.5 billion to more than £13.7 billion. Net interest income, or NII, is broadly the difference between interest earned on assets such as loans and interest paid on funding such as deposits.

Barclays continues to target a 2026 cost-to-income ratio in the high 50s and RoTE above 12%. It also expects its loan loss rate to be around the top of its 50 to 60 basis point through-the-cycle range.

The upgraded income target is encouraging because it follows growth across the group rather than reliance on a single division. However, the increase is relatively measured at £500 million, so continued delivery will be important during the second half.

Investment Banking delivered another strong period

The Investment Bank remained Barclays' largest income contributor, generating £8.0 billion in the first half, up 11%.

Global Markets income increased 12% to £5.6 billion. Within that, Equities grew 30% to £2.4 billion, while fixed income, currencies and commodities income was broadly stable at £3.2 billion.

Investment Banking income rose 10% to £2.4 billion, supported by a 24% increase in banking fees and underwriting. Advisory income climbed 67%, while equity capital markets income rose 65%.

The division's RoTE improved to 15.5% from 14.2%. That is a useful result given the amount of shareholder capital allocated to the business, although Investment Banking earnings can be more sensitive to market activity than retail banking income.

UK banking growth supported the result

Barclays UK income rose 8% to £4.5 billion, with profit before tax increasing 10% to £1.8 billion. Its RoTE improved to 20.1%.

Net interest income increased 8%, helped by structural hedge income. A structural hedge is used to smooth interest income over time by fixing returns on part of the bank's stable deposit base. This benefit was partially offset by deposit trends and pressure on mortgage margins.

UK mortgage balances reached £176.7 billion, compared with £166.8 billion a year earlier. Loans and advances across Barclays UK increased to £220.8 billion, while customer deposits stood at £245.6 billion.

The UK Corporate Bank also performed well. Income rose 8% to £1.1 billion and profit before tax increased 30% to £566 million. Its cost-to-income ratio improved from 54% to 46%.

Overall, Barclays reported 5% year-on-year growth in UK lending balances. It has now delivered £25 billion of its approximately £30 billion planned increase in UK risk-weighted assets since 2024.

Shareholder distributions increased sharply

The 5.9p interim dividend was almost double the 3.0p paid for the comparable period. Alongside the newly announced £1.0 billion buyback, this takes first-half capital distributions to £2.3 billion.

Barclays still plans to return at least £10 billion to shareholders between 2024 and 2026 through dividends and share buybacks, subject to performance and approvals. It continues to prefer buybacks and plans to announce them quarterly.

The bank's common equity tier 1 ratio, or CET1 ratio, was 14.3%. This measures its highest-quality capital relative to risk-weighted assets. After accounting for the new buyback, Barclays said the ratio would have been 14.0%, at the top of its 13% to 14% target range.

Tangible net asset value per share increased to 423p from 409p at the end of 2025, providing another sign that earnings exceeded the effect of distributions and other movements during the period.

The risks behind the stronger numbers

Credit impairment charges increased 25% to £1.4 billion, lifting the loan loss rate from 52 to 62 basis points. The total included a £228 million single-name charge in the Investment Bank during the first quarter.

Barclays UK's credit card arrears also edged higher. The 30-day arrears rate increased from 0.7% to 0.9%, while the 90-day rate rose from 0.2% to 0.3%.

Costs remain another area to monitor. Total operating expenses increased 6% to £9.1 billion as business growth, inflation, performance-related costs and investment outweighed efficiency savings.

Private Bank and Wealth Management showed this tension clearly. Income increased 2%, but expenses rose 11%, contributing to a 21% fall in profit before tax to £186 million.

The US Consumer Bank's reported performance also benefited from an approximately £225 million gain on the sale of the American Airlines credit card portfolio. Its first-half RoTE was 24.2%, but 14.9% excluding that gain.

Finally, uncertainty remains around motor finance redress. Barclays held a £430 million provision at 30 June 2026, although legal challenges could affect the timing and final cost of the scheme.

What Barclays investors should watch next

The key question is whether Barclays can maintain its income momentum while keeping costs and credit losses under control.

The first-half result gives management a solid platform. Returns exceeded the 2026 target, the income outlook improved, every operating division produced a double-digit RoTE and capital remained within the intended range after the planned buyback.

Against that, impairments are running above the prior-year level, some US Consumer Bank earnings came from a disposal gain, and continued expansion is consuming capital through higher risk-weighted assets.

For readers tracking the longer-term direction, Barclays Bank PLC's 2025 interim results provide additional context. The next test is converting the stronger first half into delivery of the upgraded £31.5 billion income target without allowing cost growth or credit deterioration to take the shine off shareholder returns.