London, Jan 27, 2026, 08:50 GMT — Regular session
- Shares of Barclays climbed in early trading following the bank’s announcement of yet another day of buybacks.
- Investors are eyeing upcoming guidance that might boost profit forecasts for UK lenders.
Barclays shares climbed 1.2% to 486.6 pence by 0850 GMT, following Monday’s close at 480.75 pence, kicking off a stronger session for UK bank stocks. (Investing)
Investors are sizing up steady capital returns while bracing for what the bank will reveal about profits and targets in its annual report due next month. This is crucial, as UK lenders have benefited from a lengthy run of higher rates and solid credit, and the market is now probing how much of that momentum can be captured in multi-year guidance.
Barclays reported repurchasing 2,490,976 ordinary shares on Jan. 26 at a volume-weighted average price near 481.74 pence. This move is part of the buyback plan announced on Oct. 23. The bank confirmed these shares will be cancelled, bringing the total repurchased since the program started to 94,878,602. (Investegate)
Buybacks happen when a company buys back its own shares, usually cutting the number of shares outstanding and handing cash back to shareholders. Traders often see daily buyback updates as a baseline for demand, but that boost can disappear fast if the broader sector turns weak.
The key swing factor will be guidance. Sources told Reuters this week that Barclays is likely to raise its profit targets when it reports, following a rally in European bank shares that has investors hunting for new upgrades instead of last year’s forecasts. Barclays currently expects a return on tangible equity—a measure of profitability excluding intangibles—of 12% or more by 2026. Peter Rothwell, head of banking at KPMG UK, highlighted “earnings resilience” driven by higher rates and tight cost controls. Yet Shore Capital analyst Gary Greenwood cautioned that political pressure to boost lending might squeeze loan pricing. (Reuters)
Any boost would place Barclays alongside peers facing similar pressure to clarify their next moves. Reuters noted that HSBC and NatWest are among the banks likely to increase their targets, with reporting season accelerating this week ahead of Barclays’ report on Feb. 10.
There’s a catch. Should rate cuts come sooner than anticipated, or if banks face tougher competition pushing them to lower loan prices, margins could take a hit—right when management is working hard to convince investors that the strong earnings will last.
Investors will be keen on Barclays’ comments about costs and its investment bank, where trading and deal fees tend to fluctuate significantly with market shifts.
Traders will focus on UK and European bank earnings this week for clues on guidance, with Barclays’ results on Feb. 10 expected to shape its targets and plans for returning capital.
