Barclays Powers Ahead with 23% Profit Leap Despite £1.1bn Debt Provisions
Barclays has defied economic headwinds with a bold profit surge, revealing strong performance in the face of rising debt risks.
Barclays has posted a striking 23% jump in pre-tax profits for the first half of the year, reaching £5.2 billion. The UK-based banking heavyweight credited the leap largely to its high-performing investment banking division, which delivered well above market expectations.
At the same time, the bank has been forced to set aside £1.1 billion to cover potential bad debts, a noticeable increase from the £897 million a year earlier. Much of this rise came in the second quarter, with an additional £469 million put aside.
Why the big increase? Two key reasons. First, the impact of Barclays’ acquisition of Tesco Bank. Second, a shakier economic backdrop, especially in the United States.
Despite this, the second-quarter results were even better than forecast. Profits for that period rose by 28%, hitting £2.5 billion. That’s largely thanks to the booming investment banking unit, which capitalised on turbulent markets to deliver solid revenues.
“We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors,” said group chief executive CS Venkatakrishnan, known more widely as Venkat.
His confidence appears well-placed. Barclays also announced a fresh £1 billion share buyback, another boost for shareholders. Meanwhile, the bank has slashed £350 million from costs as part of its plan to cut £500 million by 2025.
Those cost-cutting efforts, combined with strong investment banking results, are helping the lender stay resilient. It’s a mix of caution and confidence—navigating credit risks while keeping an eye on growth.
The overall message? Barclays is steering through tough times with grit and strategy. Even with economic clouds gathering, particularly overseas, the bank’s UK core and global arms appear to be weathering the storm.
