Barclays Q3 Profit Rises 13 Percent to 1.65 Billion Pounds as Equities Income Jumps 47 Percent
Barclays made an attributable profit of 1,646 million pounds in the third quarter of 2026. That was 13 percent more than the 1,457 million pounds of a year earlier. Income rose 3 percent to 7,365 million pounds. Profit before tax climbed 12 percent to 2,322 million pounds. The bank also announced a new share buyback of 500 million pounds.
Its return on tangible equity was 11.7 percent, up from 10.6 percent. Over nine months the return reached 13.8 percent, above the bank’s 2026 target of more than 12 percent. Group Chief Executive C. S. Venkatakrishnan pointed to the “ongoing momentum of Barclays’ operational and financial performance”. He said the bank has met or is on track to meet all its 2026 targets.
Barclays third quarter 2026 at a glance
| Measure | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Total income | £7,365m | £7,167m | +3% |
| Total operating expenses | £4,560m | £4,497m | +1% |
| Credit impairment charges | £503m | £632m | -20% |
| Profit before tax | £2,322m | £2,077m | +12% |
| Attributable profit | £1,646m | £1,457m | +13% |
| Basic EPS | 12.3p | 10.4p | +18% |
| Return on tangible equity | 11.7% | 10.6% | +1.1 pts |
| Cost: income ratio | 62% | 63% | -1 pt |
Three months to 30 September, from Barclays’ Q326 results announcement. Percentage changes are the bank’s own; point changes are our calculation.
Equities carried the Investment Bank
The Investment Bank earned 1,010 million pounds before tax, up 9 percent. Its income grew just 1 percent, to 3,129 million pounds. The mix inside it changed sharply. Equities income rose 47 percent to 1,010 million pounds. Fixed income, currencies and commodities (FICC) fell 19 percent to 1,012 million pounds.
On our calculation, equities added 321 million pounds while FICC lost 244 million. That left Global Markets 77 million pounds higher, on our calculation. Equities made up 50.0 percent of Global Markets income, on our calculation, against 35.4 percent a year earlier. The two businesses now bring in almost the same revenue. The bank credits earlier investment in prime financing and equity derivatives, and it calls the FICC environment challenging.
The Investment Bank set aside 33 million pounds for credit losses, against 144 million a year earlier. Even so, its return on tangible equity slipped to 9.5 percent from 10.1 percent. The bank put that down to a 4 percent rise in costs and more allocated equity.
Investment Bank income lines, third quarter
| Line | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| FICC | £1,012m | £1,256m | -19% |
| Equities | £1,010m | £689m | +47% |
| Global Markets | £2,022m | £1,945m | +4% |
| Banking fees and underwriting | £656m | £646m | +2% |
| Advisory | £222m | £196m | +13% |
Selected lines from the Investment Bank income analysis; advisory sits inside banking fees and underwriting. Changes are the bank’s own.
The UK side and the US Consumer Bank
Barclays UK earned 955 million pounds before tax, against 953 million. Its income rose 4 percent to 2,349 million pounds. Costs grew 6 percent, driven by 110 million pounds of structural cost actions. Its return on tangible equity was 21.2 percent, against 21.8 percent. The net interest margin was 3.69 percent, against 3.68 percent.
UK Corporate Bank grew pre-tax profit fastest of the five divisions, on our reading. Its profit rose 11 percent to 313 million pounds, and income grew 10 percent. Its return reached 23.5 percent. Loans to customers there were up 14 percent on the year.
Private Bank and Wealth Management grew income 10 percent. But costs rose 18 percent as the bank invested in its wealth business, and pre-tax profit fell to 78 million pounds from 91 million.
The US Consumer Bank earned 126 million pounds before tax, down from 155 million. Its costs rose 14 percent in the first full quarter that includes Best Egg, the business it acquired. Its return fell to 10.9 percent from 13.5 percent. Its impairment charge fell to 340 million pounds from 379 million. That was still 67.6 percent of the group’s charge for the quarter, on our calculation.
Profit before tax by division, third quarter
| Division | Q3 2026 | Q3 2025 | RoTE Q3 2026 |
|---|---|---|---|
| Barclays Investment Bank | £1,010m | £925m | 9.5% |
| Barclays UK | £955m | £953m | 21.2% |
| UK Corporate Bank | £313m | £283m | 23.5% |
| US Consumer Bank | £126m | £155m | 10.9% |
| Private Bank and Wealth Management | £78m | £91m | 23.8% |
Head Office is not shown. Third quarter figures from the same results announcement.
The Investment Bank made 43.5 percent of group profit before tax, on our calculation. Barclays UK made 41.1 percent, on our calculation. The Investment Bank brought in 42.5 percent of group income, and Barclays UK 31.9 percent, on our calculation.
Costs, credit and capital
Total operating expenses rose 1.4 percent, on our calculation. Income grew 2.8 percent, on our calculation. That gap of 1.4 points, on our calculation, brought the cost to income ratio down to 62 percent. Operating costs before levies and litigation rose 7 percent to 4,565 million pounds. A litigation and conduct charge of 255 million pounds a year ago became a 16 million pound credit this quarter, which kept the total down. Without the 201 million pounds of structural cost actions, the ratio would have been 59.2 percent, on our calculation.
Net interest income rose 4.4 percent to 3,910 million pounds, on our calculation. It made up 53.1 percent of income, against 52.3 percent a year earlier, on our calculation. Outside the Investment Bank and Head Office, net interest income grew 7 percent to 3.5 billion pounds.
Credit impairment charges fell 20 percent to 503 million pounds. The loan loss rate fell to 43 basis points from 57. The bank expects its 2026 rate to be around the top of its 50 to 60 basis point range.
The common equity tier 1 ratio was 14.2 percent, just above the top of the 13 to 14 percent target range. Basel 3.1 rules, expected from 1 January 2027, should add 8 to 15 billion pounds of risk weighted assets. That would cut the ratio by 30 to 55 basis points. A lower Pillar 2A requirement should then take the threshold for distribution limits, the MDA requirement, to 11.6 percent from 12.2 percent. On our calculation, applying both effects to today’s ratio leaves a buffer of 2.05 to 2.30 points over the new threshold.
Distributions announced so far this year total 2.8 billion pounds, up 46 percent. The average number of shares in the quarter was 4.4 percent lower than a year earlier, on our calculation. On our reading, that is why earnings per share rose 18 percent while profit rose 13 percent.
Nine months and the targets
Over nine months, income rose 8 percent to 23,866 million pounds. Profit before tax grew faster, by 15 percent, to 8,388 million pounds. Attributable profit reached 5,837 million pounds, a 17 percent gain. Earnings per share did better still, up 23 percent at 43.0 pence.
Barclays guides to an estimated 31.5 billion pounds of income for 2026. On our calculation, that leaves 7,634 million pounds for the fourth quarter. That would be 7.9 percent more than the 7,077 million pounds of the fourth quarter of 2025, on our calculation. The bank guides total costs at an estimated 18.5 billion pounds in 2026 and 18.4 billion in 2027.
Barclays targets as printed
| Target | 2026 | 2028 |
|---|---|---|
| Group RoTE | Above 12% | Above 14% |
| Cost: income ratio | High 50s | Low 50s |
| Loan loss rate | Around top of 50 to 60bps | 50 to 60bps |
| CET1 ratio range | 13 to 14% | 13 to 14% |
From the group financial targets and guidance in the Q326 announcement. The bank also plans to return more than 15 billion pounds of capital between 2026 and 2028.
Why it matters: Barclays grew profit in a quarter when FICC income fell and the US Consumer Bank earned less. Equities income and a smaller impairment charge moved the other way. A lower share count lifted earnings per share faster than profit. The return over nine months already clears the 2026 target. The 2028 goal is more than 14 percent.
Outlook: Reaching the 2026 income guidance needs a fourth quarter 7.9 percent above last year’s, on our calculation. The bank plans a further estimated 300 million pounds of structural cost actions in that quarter. The Basel 3.1 changes are expected from 1 January 2027. HSBC reports its third quarter on 27 October, and Lloyds and NatWest follow on 29 and 30 October.
Sources: Barclays, HSBC, Lloyds Banking Group, NatWest Group, The Edge.
