Barclays profits exceed expectations, pledges to return £15 billion to investors

Barclays stated that by the end of 2028, it will return at least £15 billion ($20.5 billion) to shareholders and will continue to pursue its long-term plan of cost reduction and enhanced profitability.

According to an announcement released on Tuesday, Barclays aims to achieve a return on tangible equity of 11.3% in 2025 and seeks to raise this metric to over 14% by 2028. To accomplish this new target, Barclays said it will save approximately £2 billion by improving efficiency; last year, cost savings reached £700 million, exceeding the bank's previous expectations.

Barclays announced a £1 billion share buyback program after reporting fourth-quarter results that exceeded expectations, mainly due to outstanding performance in its trading business.

Fixed income trading outperformed expectations with revenue reaching £1.02 billion, up 9.6% year-on-year; equity trading revenue was £703 million, up 16% year-on-year. Both segments posted their best fourth-quarter performances since at least 2016.

However, investment banking slightly underperformed expectations, with fourth-quarter revenue remaining flat at £606 million.

Editor: Li Zhaofu