Barclays Raises Income Target as Half-Year Profit Hits £6.1 Billion

Barclays Group reported a 17% increase in pre-tax profit to £6.1 billion for the half year ended June 30, 2026, surpassing analyst expectations of £5.9 billion. Total income grew 11% to £16.50 billion, fueled by an 11% jump in investment bank income to £8 billion and an 8% rise in UK bank income to £4.5 billion. These gains offset a £228 million loss stemming from the collapse of property lender Market Financial Solutions.

Following these results, the bank increased its 2026 group income target to approximately £31.5 billion and raised its net interest income target to over £13.7 billion. To return value to shareholders, the group announced a share buyback of up to £1 billion and increased its first-half dividend to 5.9p per share. Despite the growth, shares fell 5.1% to 503p, a decline Jefferies attributed to a "slightly messy set of numbers."

On the operational side, the bank recorded its strongest ever quarter for gross lending and mortgages in Q2, totaling £10 billion. However, the group revised its UK economic growth forecast down to 0.4%, citing volatile US trade policies and geopolitical uncertainty. Chief Executive C. S. Venkatakrishnan met with Chancellor John Healey to discuss growth across the country, while Finance Director Anna Cross noted that the weaker economic outlook has not yet dampened loan demand from corporates or households.