Barclays has announced a surprise £500 million ($670 million / €575 million) share buyback and upgraded its financial outlook for 2025, as stronger-than-expected income and cost savings boost confidence at the UK bank.
The bank now expects to deliver a return on equity above 11% this year, according to CEO C.S. Venkatakrishnan, who said Barclays had been “robustly and consistently generating capital for shareholders over the last nine quarters.”
The move marks a shift towards quarterly buyback announcements, signalling a more active approach to returning capital to investors.
However, third-quarter pre-tax profit fell 7% to £2.1 billion, largely due to fresh costs related to the UK’s motor finance scandal and a credit hit from its investment bank. Barclays added £235 million to its motor finance provision, bringing the total to £325 million, and recorded a £110 million charge linked to exposure in the private credit market — reportedly tied to the collapse of US auto parts group Tricolor.
Despite this, investment bank income rose 8% year-on-year, led by a 15% jump in global markets trading, though dealmaking activity was weaker than at US rivals.
Barclays said it remains focused on discipline, cost efficiency, and sustainable returns, with Venkatakrishnan adding that the bank’s strong capital generation has allowed it to “bring forward” plans to reward shareholders.
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Source: Reuters
