Barclays Annual Profit Leaps by 13% as Bank Aims to Hand £15bn to Shareholders
Barclays has revealed a significant surge in its annual profits, with pre-tax earnings climbing by 13% to reach £9.1 billion for the year 2025. This marks a substantial increase from the £8.1 billion recorded in 2024, highlighting a robust performance across the bank's operations.
Strong Performance Across All Divisions
The banking giant experienced a notable boost from its corporate and investment banking activities, alongside an ongoing cost-cutting drive. Total group income jumped by 9% year-on-year, with income from the corporate bank soaring by 16% as firms increased both deposits and borrowing. The investment bank also saw an 11% rise in income, driven by accelerated activity in global financial markets.
Ambitious Shareholder Returns Plan
In a move that underscores its financial strength, Barclays announced plans to hand out more than £15 billion to shareholders between 2026 and 2028. This will be achieved through a combination of dividends and share buybacks, aiming to reward investors for their support and confidence in the bank's strategy.
Cost Savings and Challenges
Barclays reported cost savings worth £700 million during 2025, bringing the total to £1.7 billion over two years. However, this falls slightly short of the £2 billion savings target set at the beginning of 2024. Total costs for the group increased by 5% last year, partly due to the acquisition of Tesco Bank and an additional £235 million set aside for compensating motor finance customers under the Financial Conduct Authority's proposed redress scheme.
Future Outlook and Strategic Investments
Chief executive CS Venkatakrishnan expressed optimism about the bank's future, stating that progress in the past two years provides a strong foundation for growth. He outlined plans to invest further in improving customer experience, deepening relationships, and harnessing new technologies, including artificial intelligence, to enhance efficiency and drive further growth in the coming years.
