Barclays announced a £1 billion share buyback programme on Friday alongside first-quarter results that beat analyst expectations, as the bank’s investment banking division delivered a standout performance driven by elevated levels of debt capital markets activity and a surge in mergers and acquisitions advisory fees. Chief executive C.S. Venkatakrishnan described the results as “a strong start to 2026” and said the bank was on track to meet its full-year financial targets.
The investment bank reported revenues of £3.8 billion in the first quarter, a 19% increase year-on-year, making it the standout performer within the group. Debt underwriting revenues were particularly strong, as the combination of corporate refinancing activity and a wave of infrastructure bond issuances — partly linked to government spending programmes in the UK, US and Europe — generated exceptional fee income. Equity capital markets activity also recovered strongly from the subdued levels of 2024, with the number of initial public offerings in London increasing for the second consecutive quarter.
The UK consumer banking division performed more modestly, with pre-tax profits of £620 million broadly flat compared to the first quarter of 2025. Net interest income benefited from the bank’s ability to maintain mortgage margins despite the competitive pressures in the UK home loans market, while credit card revenues grew as consumer spending volumes recovered. Impairments on the credit card book declined slightly, a sign that the consumer credit stress seen in 2024 is gradually abating.
Barclays’ US consumer bank, which operates primarily through the Barclays US credit card business, reported a more challenging quarter, with higher impairment charges reflecting continued stress among lower-income American consumers facing elevated inflation and the impact of the Trump administration’s tariff measures on household budgets. The division’s revenues grew 4%, but operating profits declined 11% as the cost of credit deteriorated.
The £1 billion buyback, to be executed over the coming six months, was welcomed by investors who have been pressing management for more aggressive capital returns following the bank’s strengthened capital position. Barclays shares rose 4.3% following the results announcement, extending their year-to-date gains to 18% and making the stock one of the best performers in the FTSE 100 banking sector so far in 2026.
Looking ahead, Barclays raised its full-year return on tangible equity guidance to between 12% and 13%, up from the previous target of 11% to 12%, citing confidence in the sustainability of investment banking revenues and continued progress on cost reduction. The bank has been running a multi-year efficiency programme that has reduced its cost-to-income ratio from 68% in 2022 to a projected 58% for 2026.
— Edward Blackwell, London Capital Post
