Barclays(US:BCS)2025-10-22 15:28Financial Performance - Barclays reported a return on equity (RoE) of 9.2% and a return on tangible equity (RoTE) of 10.6% for Q325, with year-to-date (YTD) RoE at 10.7% and RoTE at 12.3%[15]. - Total income for Q325 was £7.2 billion, with a profit before tax of £2.1 billion and attributable profit of £1.5 billion, resulting in a cost-to-income ratio of 63%[16]. - Barclays upgraded its 2025 Group RoTE guidance to greater than 11% and net interest income (NII) excluding Barclays Investment Bank and Head Office to greater than £12.6 billion[21]. - Group RoE was 10.7% and RoTE was 12.3% with profit before tax of £7.3bn, up 13% year-on-year[27]. - Group income of £22.1bn was up 11% year-on-year, with Group NII of £10.8bn, up 14% year-on-year[27]. - Profit before tax increased 24% to £718m, reflecting strong performance in the current fiscal year[51]. - Total income rose 15% to £1,525m, driven by a 23% increase in net interest income to £1,084m[52]. - Profit before tax for Barclays Private Bank and Wealth increased 9% to £325m, supported by growth in deposit and invested assets[54]. - Profit before tax increased to £3,935m, up 19% from £3,303m in the previous year[61]. - Profit before tax for the nine months ended 30.09.25 was £7.28bn, up from £6.45bn for the same period in 2024, reflecting a 12.9% increase[155]. Capital Management - Barclays announced a £500 million share buyback and plans to return at least £10 billion of capital between 2024 and 2026[21]. - The Common Equity Tier 1 (CET1) ratio stood at 14.1%, expected to reduce to 13.9% post £500 million share buyback, remaining within the target range of 13-14%[21]. - The CET1 ratio improved to 14.1%, with RWAs of £357.4bn[27]. - The company plans to return at least £10bn of capital to shareholders between 2024 and 2026 through dividends and share buybacks[27]. - The Group's total regulatory capital reached £72.974 billion as of September 30, 2025, compared to £70.118 billion in December 2024[145]. - Barclays' total equity excluding non-controlling interests was £76.394 billion as of September 30, 2025, an increase from £71.821 billion in December 2024[145]. Loan and Credit Performance - The Group's loan loss rate (LLR) for Q325 YTD was 53 basis points, compared to 42 basis points in Q324 YTD, remaining within the through-the-cycle range of 50-60 basis points[21]. - Credit impairment charges were £1.7bn, with a loan loss rate (LLR) of 53bps[27]. - Credit impairment charges increased to £1,744m, up from £1,271m, primarily due to the impact from Tesco Bank and elevated US macroeconomic uncertainty[34]. - The annualised loan loss rate is 53 basis points after applying a total impairment charge of £1.744 billion[108]. - The loan loss rate for Barclays US Consumer Bank was 505 basis points in Q325, an increase from 456 basis points in Q225, highlighting rising credit risk[184]. - The loan loss rate for Barclays Investment Bank was 44 basis points in Q325, significantly higher than 21 basis points in Q225, indicating increased credit risk[183]. Operational Efficiency - The cost-to-income ratio improved to 59% YTD in Q325, driven by positive operating leverage, with targeted cost efficiency savings of approximately £500 million achieved one quarter earlier than planned[21]. - Total operating expenses were £13.1bn, up 8% year-on-year, with a cost: income ratio of 59%[27]. - Total operating expenses increased to £13,087m, reflecting a 6% rise in operating costs to £12,661m, partially offset by approximately £530m in cost efficiency savings[34]. - The cost-to-income ratio for Barclays US Consumer Bank improved to 46%, down from 48% in the previous year[62]. - The cost-to-income ratio for Barclays UK Corporate Bank improved to 45% in Q325 from 54% in Q225[81]. Market and Economic Outlook - The UK GDP growth forecast for 2025 is 1.6%, while the US GDP growth is expected to be 1.0%[122]. - UK GDP is projected to grow by 1.6% in 2025, with a slight increase to 1.7% by 2029[129]. - The UK unemployment rate is expected to stabilize around 4.6% from 2025 to 2029[129]. - US GDP growth is forecasted at 1.0% in 2025, increasing to 2.0% by 2028[129]. - The UK bank rate is projected to decrease from 4.2% in 2025 to 3.6% by 2028[129]. Shareholder Returns - Barclays plans to announce new financial and operational targets through to 2028 at the FY25 Results on 10 February 2026[21]. - Barclays PLC generated £5.7bn of capital from profit, partially offset by distributions of £3.6bn, including £2.0bn in share buybacks[148]. - The share price of Barclays PLC increased to 379.60 pence as of 30 September 2025, compared to 268.15 pence at the end of 2024, marking a rise of 41.6%[187].