Barclays profit rose by 12% in the third quarter of 2026, with pre-tax profit of £2.3 billion reported on 22 October. Barclays profit came in below the £2.4 billion expected by analysts, while total income of £7.4 billion was also below the £7.6 billion consensus. The miss was linked to a weak performance in fixed income at the investment bank, although the UK retail bank and cards business performed more steadily.
Barclays was the first of the large UK banks to report third-quarter results, kicking off a busy week for the sector. The bank said it plans about 5,000 role cuts and more than £1.1 billion of gross efficiencies in 2027, as it seeks to control costs while investing in technology. Return on tangible equity for the nine months was 13.8%, with a core capital ratio of 14.2%, and the bank announced a £500 million share buyback.
Barclays
Bank shares fell sharply on the day of the results. On 22 October, the FTSE 350 banks index hit its lowest level since June, with Lloyds closing at 100.40p, down 2.76%, Barclays at 409.45p, down 2.33%, NatWest at 631.80p, down 2.59%, and HSBC at 1,366.60p, down 2.29%. The main worry was a possible rise in the bank surcharge in the Budget on 28 October, after reports that the Chancellor was considering raising it from 3% to 8%.
The sector sell-off had three roots, according to market commentary: Budget tax risk, an energy-driven rise in inflation that led markets to price a Bank of England rate rise, and stock-specific news led by the Barclays update. Despite the fall, the banks own figures showed high returns. Lloyds reported a return on tangible equity of 17.1% for the first half of 2026, NatWest reported 19.7%, and three of the four large groups have buybacks under way or recently announced.
For Barclays, the third-quarter result leaves the bank in a strong capital position but under pressure to show that its investment bank can grow income. The Budget later confirmed the surcharge would double to 6%, rather than rising to 8%, which was less severe than feared. Bank shares rose on Budget day, although NatWest later fell by 8% on flat profits and HSBC and Lloyds fell by 5% on their own results.
Source: Admiral Markets
