Will Realignment Efforts Enhance Barclays' Financial Strength?

Barclays PLC BCS has been executing its business streamlining and restructuring strategy through targeted acquisitions, partnerships and portfolio reshaping aimed at strengthening its core businesses and improving long-term profitability. The strategy reflects disciplined capital allocation, prioritizing scalable, higher-return segments while reducing exposure to lower-margin operations.

In line with this approach, in October 2025, Barclays announced the acquisition of U.S.-based digital lending platform Best Egg to expand its consumer lending presence and digital capabilities in the United States. In August 2025, the bank became the exclusive issuer of General Motors credit cards, acquiring a $1.6 billion U.S. credit card portfolio and expanding its card operations. In April 2025, it partnered with Brookfield Asset Management Ltd. to transform its payment acceptance business and enhance operational efficiency.

Barclays also strengthened its domestic retail presence by acquiring Tesco’s retail banking business in 2024. In 2023, it strengthened its mortgage platform through the acquisition of Kensington Mortgage.

Alongside expansion in core areas, Barclays has streamlined operations through selective divestitures. Last year, the bank completed the sale of its stake in Entercard Group and exited its Germany-based consumer finance business. In 2024, it divested its Italian mortgage portfolio. Through these initiatives, Barclays has streamlined its geographic footprint and reallocated capital to higher-return opportunities.

In 2025, Barclays reported total income of £7.08 billion ($9.65 billion), rising 1.6% on a year-over-year basis. The bank’s increased focus on its key businesses has supported improved financial performance. Despite a volatile operating environment, revenues have shown resilience, benefiting from its restructuring and realignment efforts. Overall, these initiatives highlight the benefits of improved capital allocation, a more efficient business mix and stronger performance across priority segments. The restructuring efforts are expected to continue supporting financial performance going forward.

Barclays’ Price Performance & Zacks Rank

Shares of Barclays have gained 14.5% in the past year compared with the industry’s growth of 12.7%.

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Currently, BCS carries a Zacks Rank #2 (BUY). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Strategic Realignment Efforts by Other Banks

Wells Fargo WFC is making efforts to strengthen its operations. While the bank is reducing headcount and streamlining processes, it is investing in its branch network and upgrading digital tools to augment the customer experience. As part of its attempts to improve the branch experience.

Wells Fargo is investing more in branch staff and upgrading technology. Hence, the company’s sustained focus on operational efficiency and cost discipline is expected to support profitability and enhance shareholder value in the upcoming period. Wells Fargo now targets a medium-term ROTCE of 17% to 18%, up from the previous 15% goal.

Citigroup Inc.’s C CEO Jane Fraser continues to advance the company’s multi-year strategy to streamline operations and focus on its core businesses. Since announcing plans in April 2021 to exit consumer banking in 14 markets across Asia and EMEA, the company has completed its exit in nine countries.

In December 2025, Citigroup agreed to sell its Russia-based banking unit, AO Citibank, to Renaissance Capital. The transaction is expected to improve the bank’s capital position over time by eliminating related risk-weighted assets. In the same month, C divested a 25% stake in Banamex to a Mexican business leader after separating its Mexican institutional banking business from consumer and middle-market units in December 2024.

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This article originally published on Zacks Investment Research (zacks.com).

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