Barclays upgraded its full-year income guidance after reporting better-than-expected first-half results, boosted by strong demand in investment banking

The bank reported first-half revenue of £16.5bn, up 11%, while pre-tax profit climbed 17% to £6.1bn, comfortably ahead of market expectations. Second-quarter pre-tax profit increased 31% year-on-year to £3.3bn, beating the £3.1bn consensus forecast, supported by higher net interest income, structural hedge income and strong trading activity within its investment bank.

The investment bank remained the largest contributor, with revenue rising 11% to £7.99bn as market volatility boosted trading income and advisory activity.

Barclays UK also delivered a solid performance, with revenue increasing 8% to £4.52bn and pre-tax profit rising 10% to £1.77bn, supported by stronger net interest income, 5% loan growth and an increase in digitally active customers. For Q2, Barclays UK income increased 7%, as higher structural hedge income was partially offset by retail deposit dynamics and mortgage margin compression.

Commenting on the results, Wealth Club chief investment strategist Susannah Streeter said:
"The big driver behind Barclays’ performance has been the resurgence in corporate dealmaking. The steady stream of overseas bidders circling UK-listed companies is likely to have provided Barclays with more opportunities to win lucrative advisory, financing and underwriting work. Advisory and underwriting revenues have remained robust, building on the healthy M&A pipeline the bank highlighted earlier this year. Rather than relying on one blockbuster IPO or mega-merger, Barclays appears to be benefiting from a broader revival in corporate activity."

Barclays also increased its full-year income target to around £31.5bn and announced a further £1bn share buyback alongside a dividend of around £0.8bn, taking total shareholder distributions for the first half to £2.3bn, up 61% year-on-year.

CEO C.S. Venkatakrishnan said: "I am pleased with another strong quarter for Barclays. We are upgrading the 2026 Group income target to c.£31.5bn and remain committed to, and confident in, delivering all financial and distribution targets for 2026 and 2028."

Interactive Investor head of markets Richard Hunter added: "There is little doubt that the group’s financial strength, alongside its geographical and business diversity are factors which keeps the stock in hot demand. As such, the market consensus of the shares as a strong buy and a preferred play in the sector should be untroubled as Barclays marches on.”

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