London, Jan 26, 2026, 08:11 GMT — Regular session
- Barclays stock (BARC) edged up 0.2% in early London trading.
- Reuters reports UK lenders set to raise profit targets ahead of earnings season.
- Barclays revealed new share buybacks set for cancellation as part of its ongoing programme.
Barclays shares ticked up on Monday following a Reuters report that Britain’s largest banks are expected to boost their profit targets in upcoming annual results.
Barclays shares (BARC) edged higher by roughly 0.2% to 481.2 pence in early moves, following a close at 480.3 pence, per Investing.com data.
Timing is key. Bank earnings reports and fresh targets are coming in the next few weeks, and investors have been piling into European lenders following a solid rally in the sector.
Sources close to the situation told Reuters that Barclays plans to raise its return on tangible equity target — a key profitability metric comparing earnings to tangible shareholder equity — beyond the current 12%+ goal set for 2026. Analysts say the bank could boost the target by as much as 200 basis points, with each basis point equaling 0.01 percentage point, Reuters reported.
Barclays highlighted ongoing buybacks in a regulatory filing, revealing it repurchased 3,516,385 ordinary shares for cancellation following a Jan. 23 purchase. The shares were bought at prices between 480.35p and 486.75p.
Since announcing its buyback program in October, the bank has been repurchasing shares—a move investors track closely since it boosts earnings per share by reducing the number of outstanding shares.
Rates and credit continue to drive the major shifts. “UK banks have seen earnings hold up longer than first thought, thanks to higher interest rates, solid credit quality, and stricter cost controls,” Peter Rothwell, KPMG UK’s head of banking, told Reuters. Reuters
Peers are shifting as well. Reuters reports that HSBC and NatWest are set to raise their profitability forecasts, while Jefferies suggests Lloyds might boost its longer-term targets.
But pushing targets higher carries risks. If growth falters or credit losses climb, that guidance could become a cap investors penalize. And even a suggestion that interest rates won’t remain “benign” may squeeze banks’ net interest income.
Barclays faces its next major test with full-year earnings due Feb. 10. Investors will be watching closely for updates on medium-term goals, buyback plans, and management’s take on investment banking fees and loan quality.
