Barclays reported a 12% increase in annual profit on Tuesday and unveiled new performance targets through 2028, as the British lender sharpens its focus on its core UK market and steps up the use of technology, including artificial intelligence, to reduce costs and improve returns.
The bank posted profit before tax of £9.1 billion for 2025, compared with £8.1 billion a year earlier. The result broadly matched analyst expectations, which averaged around £9.0 billion according to forecasts compiled by Barclays.
Barclays also raised its key profitability goal, saying it now aims to achieve a return on tangible equity of more than 14% by 2028. This marks an upgrade from its previous target of over 12% by 2026.
Looking ahead, the London-based lender said it expects to return more than £15 billion of capital to shareholders between 2026 and 2028. As part of its capital plans, the bank announced £1 billion in share buybacks alongside a final dividend of 5.6 pence per share for the year.
Total capital distributions for 2025 are set to reach £3.7 billion, closely in line with analysts’ expectations of £3.8 billion.
Barclays joins rival Lloyds Banking Group in outlining more ambitious profit targets, as major UK banks move beyond nearly two decades of post-2008 financial crisis restructuring. The sector is now benefiting from a more supportive interest rate environment, improved regulatory and economic conditions, and growing cost-saving opportunities from technology.
Other British lenders are expected to follow a similar path. NatWest Group, which reports earnings on Friday, and HSBC, due to report on February 25, are also anticipated to announce more ambitious long-term targets, according to recent reports.
