Barclays Posts 23% Profit Surge Amid Trade-Driven Trading Boom

date
29/07/2025
avatar
GMT Eight
Barclays PLC reported a 23% year-over-year rise in pre-tax profit for H1 2025, reaching £5.2 billion, driven by strong trading revenue amid U.S. tariff-driven market volatility. The bank announced a £1 billion share buyback and raised its interim dividend by 21%. Investment banking, especially fixed income and equities trading, led the gains.

Barclays PLC reported a 23% year-over-year increase in pre-tax profit for the first half of 2025, reaching £5.2 billion ($6.94 billion), driven by a surge in trading activity amid heightened market volatility linked to new U.S. tariff policies. The strong results were largely attributed to its investment banking division, particularly fixed income and equities trading, as investors repositioned portfolios to hedge against rising geopolitical and trade risks.

In its earnings release, Barclays also announced a £1 billion share buyback program and raised its interim dividend to 3 pence per share, up 21% from the previous year. The bank’s performance exceeded analyst expectations and highlighted its ability to capitalize on macro uncertainty, even as core lending margins remained under pressure from global rate divergence.

Investors responded positively to the news, sending Barclays shares up over 4% in London trading. CEO C.S. Venkatakrishnan stated that the bank is well-positioned to navigate ongoing market challenges and remains focused on returning capital to shareholders.

With global financial institutions preparing for further monetary policy shifts and trade-related volatility, Barclays’ robust performance signals resilience and growing investor confidence in diversified banking models during uncertain times.