Barclays half-year profit rises 17% to £6.1bn, upgrades outlook and boosts bonuses; Asia investment banking push gains traction

Half-year profit beats estimates

Barclays reported a pre-tax profit of £6.1 billion for January to June 2026, a 17% increase from £5.2 billion a year earlier, surpassing the analyst consensus of roughly £5.94 billion. The second quarter alone produced a pre-tax profit of £3.3 billion, up 31% from £2.5 billion in the same quarter of 2025. Group chief executive C. S. Venkatakrishnan upgraded the full-year revenue target to £31.5 billion, about half a billion higher than previously indicated, and said the bank was on track for a return on tangible equity above 12%.

Investment banking and trading drive growth

Global investment banking and underwriting fee income grew 24% in the first half. Equities trading revenue rose 17% year-on-year in dollar terms, delivering the strongest second quarter in four years, while bond trading was almost flat. The investment bank’s overall income climbed 11% to £8 billion, with the UK retail bank up 8% to £4.5 billion. Credit impairment charges, however, rose to £1.4 billion from £1.1 billion, partly due to a £228 million one-off hit linked to the collapse of property lender Market Financial Solutions earlier this year.

Asia-Pacific expansion accelerates

Barclays is making a concerted push in Asia, where its equity capital proceeds rose 82% and its M&A business grew 18% in the 12 months to June. Japanese dealmaking did the heavy lifting, rocketing more than tenfold to $14.8 billion from $1.4 billion on the back of corporate governance reforms and outbound activity, even as broader Asia-Pacific M&A volumes fell 20% in the first half. Barclays appointed Hiroshi Minoura as chairman of Japan investment banking and hired Kensuke Nakatsuka as head of M&A advisory in April, adding three senior coverage bankers over the past year. Former Deutsche Bank banker Ramin Naji will join as Asia-Pacific head of healthcare in August.

We want to add more to our core coverage advisory business because our global focus is to grow that business more.

The strategic imperative to find growth outside Japan is, and continues to be, very strong.

Shareholder windfall and bonus surge

The bank announced a fresh £1 billion share buyback, exceeding the forecast £831 million, and will pay £800 million in dividends. At the same time, the bonus pool for the first half rose almost 30% to £1.3 billion. Chief financial officer Anna Cross said Barclays was moving to a Wall Street-style pay model with higher variable compensation and lower fixed pay. The shift follows the bank’s improved profitability and mirrors practices at US rivals.

Tax backlash from trade unions

The results drew sharp criticism from the Trades Union Congress, which said the “bonanza profits” showed big banks could afford a higher tax surcharge. TUC general secretary Paul Nowak called on the new prime minister and chancellor to increase the bank surcharge and use the proceeds to ease energy bills.

Big banks like Barclays are raking it in while working people and local businesses are struggling. High interest rates have been a boon for banks but have meant mortgage misery and higher bills for the rest of us. This is not a ‘hard choice’. Barclays’ bonanza profits show that banks can easily afford to pay more tax. This is a chance for the new prime minister and chancellor to show whose side they’re on. It’s time to increase the bank surcharge and tax banks to bring down energy bills.

Market reaction and Canary Wharf commitment

Barclays shares initially fell as much as 7% before paring losses to 4%, dropping back below 500 pence after touching a 19-year high of 538.30 pence on Monday. Jefferies analyst Jonathan Pierce described the numbers as mixed, noting that a better-than-expected investment banking performance was offset by weaker results elsewhere and the possibility of additional costs in the second half. Separately, Barclays cemented its commitment to Canary Wharf by acquiring the 32-storey One Churchill Place headquarters on a 999-year leasehold for £750 million, securing long-term cost certainty beyond the 2039 lease expiry.