Barclays Reports 19% Increase in Q1 Profits, Raises Income Guidance

Barclays reported a strong first quarter for 2025, with a 19% increase in pre-tax profit to approximately £2.72 billion and an 11% rise in total income compared to the previous year. The bank’s return on tangible equity reached 14%, exceeding both its 2025 guidance and 2026 targets, and its cost-to-income ratio improved due to ongoing efficiency efforts. Barclays upgraded its full-year 2025 guidance for net interest income to over £12.5 billion, citing robust growth driven by higher structural hedge income and strong performance in Global Markets and Tesco Bank. Despite raising provisions for potential bad loans, particularly due to US macroeconomic uncertainty, the group remains confident in achieving its financial and distribution goals for 2025 and 2026. The company also reaffirmed its commitment to return at least £10 billion to shareholders between 2024 and 2026 through dividends and share buybacks. Management emphasized continued positive momentum and effective execution across its business segments.