Barclays Q1 Profit Soars 19% to £2.7B, Beats Expectations

Barclays Beats Estimates with 19% Profit Rise Amid Uncertainty

Barclays reported a 19% year-on-year rise in Q1 2025 profit before tax, reaching £2.7 billion ($3.62 billion), beating analysts’ expectations of £2.5 billion. The strong performance was largely driven by a 16% jump in investment banking income to £3.9 billion, propelled by a surge in fixed income trading, which rose 21%—outpacing the top five Wall Street banks. The British bank raised its 2025 income guidance to over £12.5 billion, up from £12.2 billion, citing strong growth in its domestic mortgage and consumer lending segments. Despite global economic uncertainties—heightened by new U.S. tariffs under President Trump—Barclays reaffirmed its performance targets and set aside £91 million to cover potential future losses, mainly in its U.S. operations. Investment banking fees from advisory services also climbed 4%, aligning with gains at U.S. peers such as JPMorgan, Goldman Sachs, and Citi. However, Barclays lagged behind Wall Street in equities trading, where top firms saw an average 32% revenue increase. Looking ahead, Barclays faces a more volatile environment amid rising trade tensions, inflation risks, and recession fears. Still, the bank remains committed to its cost-cutting and shareholder return strategy outlined in its three-year growth plan.

Barclays Profit Jumps 19% in Q1; Raises 2025 Outlook