Barclays has reported a 17% increase in pre-tax profit for the first half of 2026, reaching £6.1 billion, up from £5.2 billion in the same period last year. The result exceeded analyst expectations of £5.9 billion.
Investment Banking Boost
The profit uplift was driven by the investment bank, which saw income rise 11% year-on-year to £8 billion, benefiting from increased dealmaking and market activity. The UK bank division also contributed, with income up 8% to £4.5 billion. Barclays attributed the investment bank's performance to higher levels of investor activity in global markets, increased equities income, and higher fees.
The boost comes amid heightened volatility in global financial markets following the US-Israel conflict with Iran, alongside a wave of acquisitions of UK-listed firms.
Bad Debt Provisions Rise
However, credit impairment charges for bad loans increased to £1.4 billion for the half-year, compared to £1.1 billion a year earlier. This was largely due to a one-off £228 million charge in the first quarter related to a single company, understood to be the collapse of UK property lender Market Financial Solutions (MFS) amid fraud allegations.
