Barclays(BCS) - 2025 Q4 - Annual Report

Financial Performance - Barclays reported a net interest income (NII) of £12.5 billion for the year ended December 31, 2025, representing a 5% increase compared to £11.9 billion in 2024[12]. - Return on average allocated equity was reported at 12.2%, up from 11.5% in the previous year, indicating improved profitability[17]. - The bank's total income for 2025 was £29.1 billion, with a cost-to-income ratio of 61%[50]. - Barclays UK achieved a profit before tax of £3.4bn in 2025, with a return on equity (RoE) of 15.5% and operating expenses of £4.9bn[67]. - The UK Corporate Bank delivered a robust income growth of 16% in 2025, with total loan growth of £4.6bn and a RoE of 18.9%[70][72]. - The US Consumer Bank (USCB) reported a return on equity (RoE) of 9.5%, up from 8.1% in 2024, and a return on tangible equity (RoTE) of 11.0%, up from 9.1% in 2024[123]. Growth and Strategy - Barclays aims to achieve a return on tangible equity of 14% by 2028, supported by strategic cost-saving initiatives and business growth[18]. - The Group's total assets increased to £1.5 trillion, a 4% rise from £1.44 trillion in 2024, driven by growth in customer deposits and lending[12]. - Barclays plans to expand its market presence in Asia, targeting a 10% increase in market share by 2026 through strategic partnerships and product offerings[18]. - The bank's diversified model supports synergies across its five business areas, enhancing accountability and transparency for shareholders[50]. - Barclays plans to launch a new Singapore booking center in 2026 to enhance its international capabilities in the Middle East and Asia[96]. Technology and Innovation - The company is investing £1 billion in technology and innovation over the next three years to enhance digital banking services and improve customer experience[18]. - The bank's hybrid cloud strategy has nearly 90% of its estate in the cloud, enhancing resilience and operational performance[41]. - Barclays has invested in AI tools for approximately 100,000 colleagues, aiming to improve productivity and innovation[39]. - The digital capabilities enhancement led to approximately 50% of client interactions being self-served in 2025, up from 40% in 2024[73]. Sustainability and Social Responsibility - Barclays has set a target to reduce its carbon emissions by 50% by 2030, aligning with global sustainability goals[18]. - Barclays facilitated an additional $98.5 billion of Sustainable and Transition Financing in 2025, bringing the total to $260.7 billion since the beginning of the initiative[195]. - The bank aims to achieve net zero emissions by 2050 and has set 2030 financed emissions reduction targets for eight high-emitting sectors[199][201]. - Barclays is actively scaling climate tech companies through the Barclays Climate Tech Escalator, providing tailored support to help them grow[208]. - The bank recognizes the importance of balancing energy security with transition progress, continuing to provide capital to the conventional energy sector[207]. Customer Experience and Engagement - Client satisfaction scores increased to 66%, up four percentage points from 2024 and ten percentage points from 2023, reflecting improved client experience initiatives[78]. - The Net Promoter Score (NPS) for Barclays UK main current accounts improved to +25, the highest since tracking began in 2013, reflecting enhanced customer service[142]. - Barclays UK extended branch opening hours by approximately 33,500 hours per year to improve customer service[54]. - In 2025, Barclays UK attracted approximately 580 new clients, contributing to a 1% increase in lending market share compared to 2024[71]. Employee Engagement and Development - Barclays granted colleagues shares valued at approximately £500 in February 2025, with a similar award planned for 2026[162]. - By the end of 2025, almost 25,000 colleagues achieved accreditation through the Risk and Control Digital Credential program, enhancing risk management capabilities[166]. - In 2025, Barclays hired 1,595 graduates, 1,508 interns, and 213 apprentices globally, reinforcing its commitment to building a strong talent pipeline[168]. - Colleague engagement remained stable at 85% in 2025, four percentage points above the external benchmark[183]. - The Inclusion Index for 2025 was stable at 81%, reflecting consistent colleague sentiment regarding inclusion and respect[187].