BARCLAYS REPORTS 17% PROFIT RISE TO £6.1BN ON STRONG INVESTMENT BANKING

Barclays reported pre-tax profit of £6.1 billion for the first half of 2026, a 17% increase from £5.2 billion in the same period a year earlier. The result exceeded analyst expectations of £5.9 billion. The banking group attributed the rise to heightened activity in its investment banking division, which benefited from increased dealmaking and volatility in global financial markets, particularly surrounding the US-Israel conflict with Iran.

Investment bank income rose 11% year-on-year to £8 billion, driven by higher fees and stronger performance in equities trading. The bank's UK division also contributed, with income rising 8% to £4.5 billion. However, Barclays increased its credit impairment charges for bad debts to £1.4 billion from £1.1 billion, largely due to a £228 million one-off charge relating to the collapse of property lender Market Financial Solutions earlier this year. The bank's private banking and wealth management arm saw income rise 5% to £713 million.

Barclays announced a dividend of 5.9p per share, up from 3p previously, and launched a £1 billion share buyback programme. Chief executive CS Venkatarishnan is pursuing a strategy to strengthen the investment banking division whilst reducing its share of group risk-weighted assets. The bank upgraded its 2026 income target to approximately £31.5 billion, citing robust growth in investment banking operations.