Barclays PLC Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
Barclays PLC's Q3 2025 earnings call highlighted an 11% increase in top-line income, a rise in tangible net asset value per share, and an upgraded RoTE guidance for 2025. The call also covered the company's progress in efficiency savings, UK lending momentum, and capital distribution plans.
Key Financial Results
Top line income increased by 11% to £7.2 billion, from £6.5 billion in the same quarter last year.
Tangible net asset value per share (TNAV) rose to £3.92 compared to £3.84 per share in the previous quarter.
Delivered a third quarter RoTE of 10.6%, which equates to 12.3% for the year-to-date 2025.
Upgrading 2025 RoTE guidance to greater than 11% and reaffirming 2026 target of more than 12%.
Group net interest income (NII) for 2025 is expected to be more than £12.6 billion, up from more than £12.5 billion.
CET1 ratio of 14.1%.
Group cost:income ratio was 63% in Q3.
Q3 group impairment charge of £632 million equated to a loan loss rate of 57 basis points.
TNAV per share increased £0.08 in the quarter and £0.41 year-on-year to £3.92.
Business Segment Results
All divisions generated a double-digit RoTE again this quarter.
The Investment Bank's RoTE improved by 1.3 percentage points year-on-year to 10.1%.
The US Consumer Bank's RoTE improved by 2.6 percentage points to 13.5%.
Barclays UK RoTE was 21.8% in the quarter.
UK Corporate Bank RoTE was 22.8%.
Private Bank and Wealth Management RoTE was 26.4%.
Capital Allocation
Bringing forward a portion of the full year distribution plan with a £500 million share buyback.
Plan to announce buybacks quarterly, subject to regulatory and board approvals.
Reiterating guidance to return at least £10 billion of capital over the three-year plan, with a progressive increase in the total payout for 2025 versus 2024.
Industry Trends and Dynamics
Competition for higher rate deposits continued in Q3 and is likely to persist.
Mortgage refinance activity remained elevated, and is expected to continue into the middle of next year as five-year fixed rate mortgages written during the stamp duty holiday in 2020 and 2021 mature.
Growth Opportunities and Strategies
Plan to share new targets for Barclays through to 2028 alongside full year results for 2025.
Simplifying businesses and rebalancing footprint to generate higher returns.
Growing RWAs in the three highest-returning UK businesses.
Continue to deploy £30 billion of UK business growth RWA by 2026.
Expanding the product range with full utilization of the Kensington brand, increasing the mix of higher LTV lending to levels more in line with the market.
Rolling out the Treasury Coverage model now to 1,500 top clients versus 800 at the end of 2024.
Financial Guidance and Outlook
Upgrading 2025 RoTE guidance to greater than 11% and reaffirming 2026 target of more than 12%.
Now expect group NII for 2025 to be more than £12.6 billion, up from more than £12.5 billion.
Reiterate guidance to return at least £10 billion of capital over the three-year plan, with a progressive increase in the total payout for 2025 versus 2024.
Well positioned to achieve the circa 61% cost:income target for 2025 despite an additional provision for motor finance, and this reflects strong delivery of planned efficiency savings.
Continue to expect a group loan loss rate within the through-the-cycle guidance of 50 to 60 basis points for FY 2025.
Expect structural cost actions to be around the top of the £200 million to £300 million normal annual range during 2025.
Expect NII to exceed £7.6 billion in 2025 for Barclays UK.
Expect the cost-to-income ratio for Barclays UK to increase this year from 52% in 2024, before falling to circa 50% in 2026.
