Barclays Q1 earnings 2025
Barclays, a British bank, recently reported positive results in the first quarter of the year, with both top and bottom line figures beating analyst expectations. The bank saw a pre-tax profit of £2.7 billion, up 11% year-on-year, and group revenues reaching £7.7 billion. The strong performance was attributed to the investment banking division, which saw a 16% increase in income to £3.87 billion.
Barclays’ return on tangible equity also improved to 14% in the first quarter, compared to 7.5% in the previous quarter. Despite the positive results, the bank’s shares experienced a slight dip by the end of the trading day.
One of the key factors for investors is how Barclays manages its significant exposure in the U.S. market amid the global trade tariffs imposed by President Donald Trump. The bank acquired the investment banking and capital markets businesses of Lehman Brothers in the U.S., which has been a crucial part of its operations.
Barclays CEO C.S. Venkatakrishnan highlighted the importance of managing market volatility and risks for clients in a profitable manner. He also mentioned the potential impact of economic uncertainty on decision-making by companies and individuals, which could lead to a slowdown in economic activity.
In terms of the U.S. consumer bank business, Barclays has shown improvement, with a 9.1% return on tangible equity in 2024. The bank is focused on preparing for various scenarios, including economic weakness in the U.K. and the U.S.
Analysts at RBC Capital Markets noted that Barclays’ exposure to the U.S. consumer and investment banking sectors could impact its stock performance amidst global trade tensions. However, Barclays shares have remained relatively stable compared to other banks, with a positive performance year-to-date.
Barclays’ core U.K. consumer bank unit also saw growth, supported by the acquisition of Tesco Bank. The bank is optimistic about potential economic benefits for the U.K. post-Brexit, as London aims to leverage its trade relationships with the U.S.
Overall, Barclays continues to navigate challenges in the banking industry, with a focus on managing risks and capitalizing on opportunities for growth. The bank remains a key player in the financial sector, despite broader economic uncertainties and market fluctuations.
