Barclays Q2 Results Exceed Expectations, Plans £1 Billion Buyback and Dividend

Barclays reported Q2 profit before tax of £2.48 billion, up 28% YoY, with all divisions delivering double-digit return on total equity. Attributable profit grew 34% to £1.66 billion, and basic earnings per share increased to 11.7p. Group income rose 14% to £7.19 billion, and the company plans to return at least £10 billion to shareholders between 2024 and 2026 through dividends and share buybacks.

Barclays Plc (BARC.L, BCS) reported a robust second quarter (Q2) 2025 earnings performance, with profit before tax climbing 28% year-over-year (YoY) to £2.48 billion. The company's attributable profit grew 34% to £1.66 billion, and basic earnings per share increased to 11.7 pence. Group income rose 14% to £7.19 billion, demonstrating strong operational efficiency across all divisions [1].

The bank's CEO, C. S. Venkatakrishnan, reaffirmed the company's commitment to its three-year plan, projecting Group net interest income excluding Barclays Investment Bank and Head Office of greater than £12.5 billion for fiscal 2025, with Barclays UK net interest income of greater than £7.6 billion. For fiscal 2026, Barclays projects Group total income of around £30 billion [1].

Barclays announced a £1 billion share buyback and a half-year dividend of 3.0 pence per share, bringing total capital distributions to £1.4 billion for the first half of 2025, a 21% increase YoY. The company plans to return at least £10 billion to shareholders between 2024 and 2026 through dividends and share buybacks, with a preference for buybacks [1].

The company's investment banking (IB) division reported strong performance, with equity and debt underwriting fees benefiting from a resurgence in IPOs and global bond issuance. Trading revenues also performed well due to solid client activity and market volatility. Net interest income (NII) improved as central banks' mixed approaches to interest rate adjustments stabilized funding costs and increased loan demand [3].

Barclays also settled with the Financial Conduct Authority (FCA) for £48 million related to historical anti-money laundering controls, demonstrating the bank's commitment to regulatory compliance [2].

In the context of its peers, Barclays' performance stands out. ICICI Bank Ltd. (IBN) reported a 15.5% increase in net income for the first quarter of fiscal 2025, while Deutsche Bank (DB) reported a significant increase in profit before tax [3].

References:

[1] RTTNews. (2025). Barclays Q2 Results Climb, Targets Plans £1 Bln Buyback. Retrieved from https://www.nasdaq.com/articles/barclays-q2-results-climb-track-targets-plans-gbp-1-bln-buyback
[2] Investing.com. (2025). Barclays H1 Profit Jumps 23% to £5.20 Bln, Launches £1 Bln Buyback. Retrieved from https://www.investing.com/news/earnings/barclays-h1-profit-jumps-23-to-52-bln-launches-1-bln-buyback-raises-dividend-4156462
[3] Yahoo Finance. (2025). Barclays Set to Report Q2 Earnings. Retrieved from https://finance.yahoo.com/news/barclays-set-report-q2-earnings-130400813.html