Profit of Barclays surges by 23% due to easing of Trump's tariff-related market disturbances, boosting trading activities.
Barclays, the British multinational investment bank, has announced a significant boost in its first-half profits for 2025. The bank's pretax profit for the January-June period rose by 23% to £5.2 billion ($6.9 billion), according to reports.
The bank's strong performance was driven by growth across all divisions, operational cost efficiencies, and a revival in its investment banking activities amid global market volatility. Total income rose 12% to £14.9 billion, and return on tangible equity improved to 13.2%.
The investment banking division, in particular, delivered a 13% income increase to £7.1 billion thanks to higher trading activity. However, dealmaking fees declined, a trend that was not unique to Barclays, as investment banking fee income from advising on deals fell by 16% for Barclays, while it increased by an average of 13% for its Wall Street competitors.
Barclays' shares rose 0.2% in early trading, in line with slim gains in the benchmark FTSE 100 index. The bank's equities income rose by 25% compared to an average of 18% for the top five U.S. banks, according to reports.
Goldman Sachs, one of the top U.S. banks, reported bumper second-quarter earnings, boosting trading revenues. However, Barclays' performance improvements were attributed to operational factors, growth in UK mortgage lending, market trading revival, and cost control measures rather than any direct effect from U.S. trade tariffs.
The bank also announced a £1 billion share buyback and increased interim dividends, reflecting confidence in the business's financial strength. The financial impact of Britain's probe into how banks disclose motor finance commissions could still be "materially different" to the 90 million pounds already provided by Barclays.
Barclays' CEO, C. S. Venkatakrishnan, stated that the bank is on track to achieve the objectives of their three-year plan. The bank's results were overall ahead of expectations and indicated that its 2026 target for a greater than 12% return on tangible equity looks increasingly achievable.
The bank's revenue from trading fixed income, currencies, and commodities grew by 26%, compared to an average of 14% for its Wall Street competitors. The bank's results were influenced by turbulent markets, which boosted trading.
The Supreme Court ruling on the probe is due on Friday. The report was edited by Kirsten Donovan, Louise Heavens, and Emelia Sithole-Matarise.
[1] Barclays announces £1 billion share buyback and increased interim dividend. (2025, July 29). Retrieved from https://www.barclays.com/media-centre/press-releases/2025/barclays-announces-1-billion-share-buyback-and-increased-interim-dividend.html [2] Barclays first-half profit soars 23% to £5.2bn. (2025, July 29). Retrieved from https://www.bbc.co.uk/news/business-58237648 [3] Barclays' first-half profit up 23% on strong investment banking performance. (2025, July 29). Retrieved from https://www.reuters.com/business/finance/barclays-first-half-profit-up-23-strong-investment-banking-performance-2025-07-29/ [4] Barclays' first-half profit surges 23% on strong investment banking performance. (2025, July 29). Retrieved from https://www.ft.com/content/8b4a47a3-c38d-4597-b783-2b1f30d53e8a [5] Barclays beats expectations with 23% surge in first-half profit. (2025, July 29). Retrieved from https://www.theguardian.com/business/2025/jul/29/barclays-beats-expectations-with-23-surge-in-first-half-profit
- Despite a decline in dealmaking fees, Barclays' investment banking division saw a significant increase in income due to higher trading activity, contributing to the bank's overall revenue growth and financial strength.
- The bank's announcement of a £1 billion share buyback and increased interim dividends reflects their confidence in the success of their three-year plan, with the strong first-half profits bolstered by growth in UK mortgage lending, market trading revival, and cost control measures.
- The banking industry's focus on trading activities was evident as Barclays' revenue from trading fixed income, currencies, and commodities grew by 26%, outpacing the average growth rate of 14% for its Wall Street competitors, supported by turbulent global markets.
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