Barclays sees profits soar thanks to Trump tariffs

Daily Mail​

a day ago

Barclays' profits beat expectations in the first half of the year as the banking giant's markets business was boosted by a surge in trading activity in the wake of US tariff announcements. The FTSE 100 lender saw pre-tax profits rocket 23 per cent to £5.2billion for the six months to 30 June, surpassing analyst forecasts of £4.96billion.
Total income within its global markets business soared 21 per cent to just under £5billion over the period, with strong demand within equities, and its fixed income, commodity and currency unit. Net interest income – the difference between what a bank pays and receives in interest – also beat forecasts after jumping to more than £7billion from £6.1billion last year.
In the UK, income jumped 12 per cent in the second quarter thanks to higher structural hedge income and the Tesco Bank acquisition earlier in the year. However, the takeover combined with 'elevated US macroeconomic uncertainty' contributed to impairments rising to around £1.1billion for the first half.
In addition, Barclays told shareholders the appreciation of sterling against the US dollar since the start of the year had 'negatively impacted income and profits'. Strong profit growth was also achieved despite group operating costs increasing by 5 per cent to £8.4billion, partially offset by roughly £350million of efficiency savings.
Barclays chief executive C.S. Venkatakrishnan said: 'We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors.' The result follows forecast-beating performance figures published by London-listed rivals Lloyds and NatWest last week, as well as a strong US earnings season.
Barclays on Tuesday also announced a £1billion share buyback and a half year dividend of 3p per share, equating to £1.4billion of payouts for the first half of 2025 - a 21 per cent increase year-on-year.
Barclays shares were up 0.5 per cent to 363p in early trading, having added 35 per cent since the start of the year. Victoria Scholar, head of investment at Interactive Investor, said: 'Like its Wall Street counterparts, Barclays' investment banking division saw income increase by 10 per cent in the second quarter, thanks to the tariff frenzy with volatile market conditions boosting trading activity.