Barclays has reported a pre-tax profit of £9.1bn in its latest annual figures, a result up from £8.1bn last year, as the bank outlined plans to invest in AI over the next three years.

As part of a cost reduction effort via increased investment in technology, the bank also revealed it intends to redistribute £15bn to shareholders by 2028.

Barclays, announcing its full-year results covering the 2025 calendar year, reported group income of £29.1bn, which was up 9% year-on-year, while it also recorded a return on tangible equity (RoTE) of 11.3%.

The bank is two years into a five-year cost cutting plan and revealed it made savings worth £700m last year, bringing the total to £1.7bn since 2024.

Barclays chief executive, C. S. Venkatakrishnan, said the bank’s progress over the past two years provides a “strong foundation to deliver more” for its 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,” he said.

“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 £15bn of capital distributions to shareholders between 2026 and 2028.”

Despite the improvement in several top line figures, Barclays’ share price dipped by 2% in the days early trading.

Head of markets at AJ Bell, Dan Coatsworth, highlighted Barclays’ UK retail banking and wealth management operations and described them as “lacklustre”, with performances in both segments dipping in Q4. The UK banking (£8.7bn) and wealth management arms (£1.4bn) both closed the year at 5% growth.

“If there’s ever a weak part of the business, the rest often picks up the slack and helps keep the group in shape,” Coatsworth said. “The latest results are a perfect example of this dynamic in play.

“Barclays has outlined near and medium-term targets which imply stronger returns and big share buybacks. The targets sound impressive, but the market seems nonplussed by the overall package.

“There wasn’t enough to blow the lights out in terms of recent performance, and so much good news is already in the price.

“The banking sector has been a major money maker for investors over the past two years and now needs powerful catalysts to sustain the upwards share price momentum. That means large upgrades to earnings forecasts, otherwise the shares could stall.”

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