Barclays PLC on Tuesday said it is confident delivering all its financial targets as it reported largely as expected first quarter results.
The London-based lender said pretax profit rose 3.3% to £2.81 billion in the first quarter of 2026 from £2.72 billion a year before, just shy of company compiled consensus of £2.83 billion.
Total income increased 5.8% to £8.16 billion from £7.71 billion a year ago, in line with consensus of £8.12 billion.
Attributable profit rose 3.8% to £1.93 billion from £1.86 billion last year. Basic earnings per share improved 8.5% to 14.1 pence from 13.0p, in line with consensus.
In response, shares in Barclays fell 3.0% to 414.39 pence each in London. It was the biggest faller in the FTSE 100 which was slightly higher.
By division, income rose 9% in Barclays UK, 10% in Barclays UK Corporate Bank, 4% in Barclays Investment Bank and 14% in Barclays US Consumer Bank. Income in Barclays Private Bank and Wealth Management income was broadly stable.
Return on tangible equity slipped to 13.5% from 14.0% on-year, though Barclays said all divisions delivered double-digit returns.
The cost-to-income ratio improved to 56% from 57% on-year, with costs rising 2.3% to £4.36 billion from £4.26 billion a year ago.
Credit impairment charges increased to £823 million from £643 million, including a £228 million single-name charge in the investment bank.
The loan loss rate rose to 74 basis points from 61bps. The CET1 capital ratio edged higher to 14.1% from 13.9% a year ago.
In addition, Barclays said litigation and conduct charges of £104 million primarily reflect a £105 million increase in the provision for the UK Financial Conduct Authority motor finance redress scheme, lifting the total provision to £430 million from £325 million at the end of 2025.
It announced a new £500 million share buyback, in line with expectations, to begin after completion of the current £1.0 billion programme.
Barclays reiterated all 2026 and 2028 targets, including return on tangible equity of more than 12% in 2026 and more than 14% in 2028.
For 2026, it continues to expect total income of around £31 billion, a high-50s cost-to-income ratio, and a common equity tier 1 ratio within its 13% to 14% target range.
Barclays plans to return greater than £15 billion of capital to shareholders between 2026 and 2028, through dividends and share buybacks.
Chief Executive CS Venkatakrishnan called it a ‘solid’ quarter.
‘The breadth and quality of our businesses mean we remain confident in delivering all our financial targets across a range of environments,’ he added.
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