Barclays raised its full-year outlook and announced a new share buyback program. The move followed third-quarter results that showed stable revenue trends and accelerating cost savings despite increased provisions related to an investigation into auto loan claims.
The London-based bank’s shares rose 2.8% as of 07:22 GMT.
The bank said it now expects return on tangible equity (ROTE) to exceed 11% in 2025, while return on equity (ROTE) reached 10.6% in the third quarter, higher than its previous forecast of around 11%.
In an update, CEO C. S. Venkatakrishnan said the improved outlook reflects stronger revenue performance and faster execution of cost-saving measures, enabling the bank to accelerate its plan to return excess capital to shareholders.
The bank also raised its forecast for net interest income (excluding investment banking and head office) to over £12.6 billion (about $16.8 billion), compared with a previous forecast of over £12.5 billion. Barclays also announced a £500 million share buyback program as part of an accelerated shift to quarterly buybacks.
The bank’s third-quarter pre-tax profit was £2.08 billion, down from £2.23 billion a year earlier and broadly in line with analysts’ expectations of £2.1 billion.
The profit decline reflected a £235 million increase in provisions related to the UK auto finance investigation, bringing the total to £325 million, as well as a £110 million single-name credit impairment in its investment bank.
