London, Feb 10, 2026, 08:27 GMT — Regular session
Barclays climbed roughly 2% at the open in London on Tuesday, buoyed by news the bank is raising its profitability targets and rolling out a new plan for returning capital to shareholders. The shares traded near 496 pence after reaching an earlier high of 499.3 pence, according to data from Hargreaves Lansdown.
Barclays posted a 12% jump in its 2025 profit before tax, hitting 9.1 billion pounds, and rolled out new strategy targets that now reach through 2028. The lender is ramping up focus on the UK and tightening costs—AI is part of the mix, according to the bank. For 2028, Barclays is aiming for a return on tangible equity above 14%. The bank also plans to hand back over 15 billion pounds to shareholders from 2026 to 2028.
Investors are eyeing the fresh scorecard, looking for signs UK banks can maintain returns now that rates are moving and the crisis era is receding. Barclays is chasing a valuation boost—it wants to prove it can expand and return capital at the same time, instead of just going along with the credit cycle.
Barclays raised its 2026 income target, now aiming for about 31 billion pounds, and expects annual income to climb more than 5% through 2028, Dow Jones Newswires reported. The bank’s cost-to-income ratio is seen staying in the high 50s for now, with management forecasting a move down to the low 50s within three years. CEO C.S. Venkatakrishnan said the push is to “secure sustainably higher returns through to 2028 and beyond.” MarketScreener
Total income for 2025 climbed to 29.14 billion pounds, up from 26.79 billion the previous year, according to Barclays data reported by Investing.com. Fourth-quarter profit before tax hit 1.9 billion pounds. “Our progress in the past two years provides a strong foundation,” Venkatakrishnan said, as quoted in the report. Investing.com
Investment banking delivered a boost in the fourth quarter, but the UK business lost ground, according to the Financial Times.
Even so, those targets don’t offer much cushion for surprises. Should interest rates drop more quickly, lending margins could get pinched. Miss on costs, or see credit losses climb, and the pledge of more stable returns at a bank leaning heavily on its markets business faces a real test.
UK bank investors are now watching for NatWest’s annual numbers, landing Friday, Feb. 13 at 7 a.m. GMT. Capital returns are in focus, as are signals on whether the board will stretch targets all the way into 2028.
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