London, Feb 10, 2026, 07:54 GMT
- Barclays is targeting at least £15bn in capital returns for shareholders over 2026 to 2028.
- Pre-tax profit for 2025 climbed to £9.1bn. The bank also announced a £1bn buyback alongside a bump in its dividend.
- Barclays is aiming for a return on tangible equity of more than 14% in 2028.
Barclays is pledging at least £15 billion in shareholder returns from 2026 to 2028, following a profit beat and laying out new goals through 2028. The bank’s move signals more money for investors.
UK banks are out to show their payout case can hold up through more than just a favorable rates cycle or solid trading. Barclays brings a hefty domestic footprint to the table, plus an investment banking arm that tends to jolt earnings, sometimes sharply, from one quarter to the next.
Barclays bumped its 2026 income target up to about £31 billion, now looking for income to rise by more than 5% annually out to 2028. The bank flagged a cost-to-income ratio in the high 50s, aiming to bring that down into the low 50s within three years. “Sustainably higher returns through to 2028 and beyond,” is what chief executive C.S. Venkatakrishnan said the group is after. MarketScreener
Barclays posted a 13% jump in 2025 pre-tax profit, bringing the figure to £9.1 billion, with fourth-quarter profit up 12% at £1.86 billion—both topping City forecasts, which were around £9 billion and £1.7 billion. For 2025, the bank set total capital distributions at £3.7 billion, featuring an 8.6 pence dividend per share and a £1 billion share buyback. Barclays also stuck with its plan for at least £15 billion in distributions between 2026 and 2028.
Investment banking lifted the bank’s fourth-quarter results, with that unit’s revenues climbing 7% from a year ago, according to the Financial Times. The UK division lagged, posting a 13% drop in revenue year on year.
Venkatakrishnan is moving to cut the investment bank’s chunk of the group’s risk-weighted assets down to 50% by 2026, from the current 55.1%, according to City AM. In that same update, he pledged the bank would continue spending—backing “new technology, including AI, to improve efficiency,” with artificial intelligence tools taking on automation and data analysis. City AM
Barclays has boosted its targets, joining other top UK banks shifting their focus from restructuring to growth, with support from cost cuts and an improved environment. NatWest is set to release results on Friday, while HSBC’s report lands Feb. 25, according to Reuters.
The payout strategy banks on solid credit and steady revenue, even as the landscape shifts. If interest rates tumble or loan losses climb, income takes a hit. In that scenario, the bank might have to rein in its buybacks.
Now comes the hard part for investors: execution. Barclays needs to boost returns in its UK unit, keep a lid on costs, and steer clear of any shocks from its markets-driven divisions. The bank’s targets stretch through 2028. In this industry, that’s a long horizon.
