Barclays reveals its profits jumped over first half of 2026
Barclays has revealed its profits jumped by 17 per cent over the first half of 2026 as its investment bank cashed in on dealmaking and activity in the financial markets.
This helped to offset the banking group setting aside more to cover bad debts. Barclays reported a pre-tax profit of £6.1 billion for the first six months of the year, up from £5.2 billion in the same period a year ago. This also came in higher than the £5.9 billion that most analysts had been expecting.
Barclays said its balance sheet was boosted by higher income from divisions including its UK bank, which rose by 8 per cent year-on-year to £4.5 billion, and its investment bank, which jumped by 11 per cent to £8 billion.
Increased levels of activity from investors in the global markets and increased income from equities, coupled with higher fees helped deliver a boost for the investment banking arm, Barclays said. It follows a period of heightened volatility in the world’s financial markets in response to the US-Israel’s war with Iran while there has also been increased dealmaking with a string of buyers snapping up UK-listed firms this year. However, the banking giant said its credit impairment charges for bad loans increased to £1.4 billion for the half-year period, from £1.1 billion the year before.
Richard Hunter, Head of Markets at interactive investor, commented: “For the most part, this is an unblemished release with strong growth across all areas of the group and spectacular progress in some, as Barclays kicks off the UK banks’ reporting season in style. The drivers for the improvement were spread across its units, with notable contributions from its global markets operation within the Investment Bank, higher Net Interest Income (NII) and the ongoing benefit of structural hedge income, which lessens the group’s susceptibility to changes in interest rates while providing a meaningful tailwind to revenues.”
He added: “The more general optimism towards the group from investors revolves around prospects for and performance of its three largest units.
"The Investment Bank, which is for the most part a US division, accounts for 48 per cent of group revenues, Barclays UK 27 per cent and the Barclays US Consumer Bank 13 per cent, all of which have had a strong story to tell.”
“The raising of the group projected income for the year to around £31.5 billion from £31 billion is perhaps typically conservative and brings a tinge of disappointment, but if the second quarter momentum is maintained expectations will continue to ratchet higher as the group delivers by firing on all cylinders.
"These heightened expectations, let alone a spike of 24 per cent in the share price in the last three months leading up to these results, probably explain the relatively cold reaction in opening exchanges. In addition, the shares have risen by 47 per cent over the last year, as compared to a gain of 19 per cent for the wider FTSE100, and by 129 per cent over the last two years.
Mr Hunter continued: "That being said, there is little doubt that the group’s financial strength, alongside its geographical and business diversity are factors which keeps the stock in hot demand.”
Susannah Streeter, chief investment strategist at Wealth Club, said: “Barclays results may have surpassed expectations, boosted by a revival in dealmaking, stronger investment banking activity and resilient consumers, but investors have a glass-half-empty view, unnerved about bad debt provision growing. There are also likely to be concerns about whether the bank can keep riding this investment wave or whether revenues could become choppier ahead."