London, Jan 28, 2026, 07:59 GMT — Premarket
- Barclays jumped 1.88% to 489.80p on Tuesday, edging closer to its 2026 peak
- Bank revealed an additional buyback of 3.48 million shares, set for cancellation
- Investors are focused on the Fed decision set for later Wednesday and Barclays’ earnings report due Feb. 10
Barclays BARC.L repurchased 3,482,092 shares for cancellation on Tuesday, paying a volume-weighted average price of 488.2124 pence. This adds to a buyback effort that has seen close to 98.4 million shares bought since late October.
Buybacks have turned into a regular feature on Barclays’ daily tape, pushing the stock near its recent peaks. As bank valuations get a boost, investors zero in on signs that capital returns will hold steady.
The broader backdrop is growing noisy once more. The U.S. Federal Reserve will announce its rate decision later Wednesday, and a string of European bank earnings reports is poised to challenge the strength of the sector’s momentum.
Barclays shares ended the session 9.05 pence higher, gaining 1.88% to close at 489.80p, just shy of this year’s peak at 492.95p, based on data from Hargreaves Lansdown.
A buyback works simply: the bank buys its own shares on the market and cancels them, cutting the total share count. This can boost earnings per share down the line, though it hinges on steady profits and regulators being okay with the payouts.
UK bank shares surged Tuesday, pushing the banking index up 2.4% to its strongest point since May 2008, led by a rally in HSBC stock. Investors were also focused on the Fed meeting, alongside bets that the Bank of England will hold its benchmark rate steady at 3.75% in February.
Sources say Barclays and other major UK lenders plan to raise profit targets in their upcoming annual reports. Barclays has already signaled a return on tangible equity (ROTE) of 12% or higher by 2026, a key profitability metric. Analysts expect targets might climb by up to 200 basis points, or 2 percentage points. KPMG’s Peter Rothwell highlighted “earnings resilience” and “tighter cost control” as drivers, while Shore Capital’s Gary Greenwood cautioned about “lower pricing on lending.” Reuters
Barclays has joined other major UK lenders in pledging a total of £11 billion in lending capacity to help British companies grow abroad, supported by guarantees from UK Export Finance. Business and Trade Minister Peter Kyle emphasized that boosting exports depends on firms having the “means, motive, and opportunity” to break into new markets. Reuters
The trade could still reverse. Quicker rate cuts would tighten bank lending margins, while a rise in bad loans would challenge the optimistic profit forecasts investors are now factoring in.
Barclays shares will next react to the Fed’s decision Wednesday and the bank’s full-year 2025 results due Feb. 10. Investors will be watching closely for updated targets and any new clues on buyback plans.
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