Barclays unveils surprise $670 million share buyback with upgraded earnings guidance

Barclays PLC has upgraded its full-year earnings guidance and announced a surprise $670 million share buyback plan. The firm reported a stronger-than-expected income despite a slight drop in Q3’s profit. 

The London-based bank revealed today that it expects a return on tangible equity (RoTE) of more than 11% for the full year 2025, an increase from the previous estimate, and greater than 12% in 2026. The bank reported that it also projects an income of £12.6 billion ($16.78 billion) for the year, excluding investment banking and head office operations. 

Barclays targets RoTE greater than 11% this year

C.S. Venkatakrishnan, CEO of Barclays Bank, said that the financial report today represents the ninth consecutive quarter of strong capital generation for its shareholders.  

“We have been robustly and consistently generating capital for our shareholders over the last nine quarters. Consequently, we’ve decided to bring forward a portion of our full-year distribution plans, with a £500 million share buyback announced today. Our consistent and strong delivery has laid the foundations for greater performance beyond 2026.”

–C.S. Venkatakrishnan, CEO of Barclays Bank

The bank also revealed plans to shift to quarterly buyback announcements, which reflects a more frequent capital return policy for investors. The bank’s pretax profit fell by 7% to £2.1 billion in Q3, from £2.23 billion in the same quarter last year. The firm attributed the decrease in profit to a £235 million provision for the ongoing UK motor finance scandal, costing the bank roughly £325 million. The bank also invested £110 million in one exposure linked to Tricolor, a U.S. auto parts supplier that reported bankruptcy recently. 

Barclays acknowledged that these credit exposures amount to roughly £20 billion, equivalent to 6% of its total loan book, with 70% of the loans concentrated in the United States. Despite the challenges, the investment bank reported an 8% increase in income year on year in Q3. The global markets division recorded a 15% increase, wiping off the 4% drop in investment banking fees. The firm recorded a total income of £7.2 billion for Q3.

Alongside the Q3 earnings update, Barclays recently introduced new monthly limits on crypto transactions for its personal and business debit cards. The bank aims to cap crypto-related payments at £10,000 per month for most account types to protect customers from crypto-related scams.

Barclays’ exposure to BTC stands at $131 million in IBIT ETF

Barclays’ interest in Bitcoin assets and crypto-related initiatives began last year through its investment in Bitcoin ETFs. Cryptopolitan reported in Q4 last year about the firm’s disclosure of its Bitcoin reserve under BlackRock’s iShares Bitcoin ETF IBIT. The bank invested $131 million in the ETF, which provided it with exposure to the Bitcoin market. 

Currently, BlackRock’s iShares ETF is the largest in terms of assets, surpassing the iShares Gold Trust ETF with $89.91 billion in net assets, according to SoSoValue data. This follows this year’s BTC performance, which has grown by more than 15% year to date.

So far, Barclays’ stock has jumped by over 4% in the early London session following the announcement. The bank’s strengthened capital return strategy has largely fueled the stock price increase. The stock YTD stands at 41.93%, buoyed by robust investment banking returns that outperform most European peers. At the time of publication, the stock was trading at GBX 378.90, with a daily range of GBX 371.22 – GBX 379.35. 

Broad equity markets in London have also gained today following the release of Q3 financial results for the lender. The Stoxx 600 Banks Index has gained more than 42% this year despite a 0.3% drop realized today. The FTSE 100 Index has gained 0.7% today and maintained over 14% year-to-date results. 

C.S. Venkatakrishnan, the bank’s CEO, noted that the lender remains committed to improving efficiency across the organization and improving the balance sheet by 2026. The firm confirmed that it will deliver updated financial targets to 2028 alongside the full-year results for 2025. 

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