Barclays PLC (BARC.L) | Investment Case

1. Company Snapshot

1.a. Company Description

Barclays PLC, through its subsidiaries, provides various financial products and services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia.The company operates through Barclays UK and Barclays International divisions.It offers financial services, such as retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services.

The company also engages in securities dealing activities; and issues credit cards.The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985.Barclays PLC was founded in 1690 and is headquartered in London, the United Kingdom.

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1.b. Last Insights on BARC

Barclays' recent performance was driven by strong revenue growth, strategic share buybacks, and a positive outlook. The company's Q3 2025 earnings call highlighted an 11% revenue increase and a £500 million share buyback plan, demonstrating its commitment to enhancing shareholder value. Additionally, Barclays' CEO discussed the bank's investment banking unit and private credit market outlook, providing investors with valuable insights. The company's ability to navigate competitive market conditions and deliver strong results has garnered attention from investors.

1.c. Company Highlights

Last Price	441.95
Change Percentage	0.63%
Open	441.75
Previous Close	439.2
Market Cap ( Millions)	61365
Volume	2481143
Year High	443.88
Year Low	223.75
M A 50	397.07
M A 200	345.35

FCF Yield	0.00%
Dividend Yield	1.60%
ROE	9.56%
Debt / Equity	154.72%
Net Debt / EBIDTA	-1003.00%
Price To Book	0.83
Price Earnings Ratio	8.95
Price To FCF	0
Price To sales	1.18
EV / EBITDA	-4.35

2. Barclays' Q3 2025: Strong Revenue Growth and Improved Profitability

Barclays reported a robust Q3 2025, with top-line income rising 11% to GBP 7.2 billion, driven by growth in stable income streams. The bank's tangible net asset value per share (TNAV) increased to 392p, and the return on tangible equity (RoTE) was 10.6%, which equates to 12.3% for the year-to-date 2025. Earnings per share (EPS) came in at 0.1047, beating analyst estimates of 0.1019. The bank's net interest income (NII) grew 14% year-on-year and 12% quarter-on-quarter, driven by higher interchange and account fees.

Publication Date: Oct -24

                                    📋 Highlights
                                    Top-line growth:
                                                Barclays Q3 2025 revenue rose 11% to GBP 7.2 billion, driven by stable income streams and a 14% YoY Net Interest Income (NII) growth.
RoTE improvement:
                                                Return on Tangible Equity (RoTE) reached 10.6% for Q3, up from 12.3% year-to-date 2025, with 2025 guidance upgraded to >11% and 2026 target >12%.
Capital returns:
                                                GBP 500 million share buyback announced, reflecting a CET1 ratio of 14.1% and a GBP 10 billion 3-year capital return plan.
Efficiency progress:
                                                GBP 500 million gross efficiency savings achieved in Q3 (1 quarter early), with GBP 2 billion target by 2026 and 61% efficiency guidance reaffirmed.
Divisional performance:
                                                U.S. Consumer Bank delivered 13.5% RoTE and 20% YoY top-line growth, while Kensington mortgages doubled to GBP 4 billion with low delinquencies.

                                

Financial Performance

The company's financial performance was strong across various divisions, with all divisions generating a double-digit RoTE. The investment bank's RoTE improved by 1.3% year-on-year to 10.1%, while the U.S. consumer bank's RoTE rose by 2.6% to 13.5%. The group delivered circa GBP 500 million of gross efficiency savings in 2025, a quarter earlier than planned, and remains focused on delivering the circa GBP 2 billion gross efficiency target by the end of 2026.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of 0.73, Barclays' valuation appears reasonable. The bank's dividend yield stands at 1.83%, providing a relatively attractive return for investors. The Net Interest Margin (NIM) is expected to remain around 11.5% in the near term, supporting the bank's profitability.

Credit Quality and Capital Position

The loan loss rate was 57 basis points, with a GBP 632 million impairment charge. The bank expects a group loan loss rate within the through-the-cycle guidance of 50 to 60 basis points for FY 2025. The U.K. and U.S. credit picture remains benign, with low and stable delinquencies in consumer books and wholesale loan loss rates below through-the-cycle expectations. The company's CET1 capital ratio stands at 14.1%, reflecting a strong capital position.

Outlook and Guidance

Barclays has upgraded its 2025 RoTE guidance to greater than 11% and reaffirmed its 2026 target of more than 12%. The bank aims to return at least GBP 10 billion of capital over its 3-year plan, with a progressive increase in the total payout for 2025 versus 2024. A GBP 500 million share buyback will commence soon, reflecting strong capital generation. The company's guidance suggests a continued focus on improving profitability and returning capital to shareholders.

3. NewsRoom

Cloudflare (NET) Valuation Check as Barclays’ Bullish Coverage Highlights Growth Prospects in Cloud, AI and Cybersecurity

Dec -04

Source:

BOE Stress Test 2025: Have BCS, HSBC & Others Proved Resilience?

Dec -03

Source:

Barclays expects stocks to keep climbing the wall of worry in 2026

Dec -03

Source:

U.K. Bank Stocks Rise After BOE Cuts Capital Requirements

Dec -02

Source:

Black Friday busiest day of the year so far for retailers, figures show

Dec -01

Source:

Is Now the Right Time to Assess Barclays After a 61% Share Price Surge in 2025?

Nov -29

Source:

A Look at Barclays (LSE:BARC) Valuation as Shares Gain on Investor Optimism

Nov -29

Source:

Barclays Shares Surge 68.4% YTD: How to Play the Stock Now

Nov -28

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.80%)

6. Segments

Barclays Investment Bank

Expected Growth: 5.2%

The investment bank is likely to grow slightly above the global average due to its diversified global presence and the increasing demand for complex financial services. Its exposure to volatile markets is mitigated by its diversified product offering.

Barclays UK

Expected Growth: 4.5%

Growth is expected to be slightly below the global average due to the mature nature of the UK banking market and potential economic uncertainties affecting consumer spending.

Barclays Us Consumer Bank

Expected Growth: None%

None

Barclays Uk Corporate Bank

Expected Growth: None%

None

Barclays Private Bank and Wealth Management

Expected Growth: 4.8%

Expected to grow in line with the global average, driven by the increasing demand for wealth management services from high net worth individuals.

Head Office

Expected Growth: None%

None

7. Detailed Products

Personal Banking

Personal banking services for individuals, including current accounts, savings accounts, credit cards, loans, and mortgages.

Business Banking

Business banking services for small to medium-sized enterprises, including business current accounts, loans, and credit cards.

Corporate Banking

Corporate banking services for large corporations, including cash management, trade finance, and risk management solutions.

Investment Banking

Investment banking services, including mergers and acquisitions, equity and debt capital markets, and leveraged finance.

Wealth Management

Wealth management services, including investment advice, portfolio management, and estate planning.

Credit Cards

Credit cards for personal and business use, offering rewards, cashback, and other benefits.

Mortgages

Mortgage lending services for individuals and businesses, including residential and commercial mortgages.

Insurance

Insurance products, including life insurance, home insurance, and travel insurance.

8. Barclays PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Barclays PLC operates in a highly competitive industry, and customers have various alternatives to choose from. However, the switching costs for customers are relatively high, which reduces the threat of substitutes.

Bargaining Power Of Customers

Barclays PLC has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's diversified product offerings and strong brand reputation further reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Barclays PLC has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations and strong financial position also give it significant negotiating power over its suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This reduces the threat of new entrants and gives Barclays PLC a competitive advantage.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Barclays PLC faces intense competition from other major banks, which increases the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	77.36%
Debt Cost	10.72%
Equity Weight	22.64%
Equity Cost	10.72%
WACC	10.72%
Leverage	341.77%

11. Quality Control: Barclays PLC passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

HSBC

A-Score: 8.0/10

Value: 7.7

Growth: 7.3

Quality: 6.3

Yield: 8.8

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

NatWest

A-Score: 7.3/10

Value: 8.0

Growth: 5.6

Quality: 6.8

Yield: 8.1

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

ING

A-Score: 7.2/10

Value: 6.4

Growth: 5.7

Quality: 5.0

Yield: 9.4

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

Barclays

A-Score: 7.1/10

Value: 9.0

Growth: 7.2

Quality: 5.8

Yield: 5.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

Handelsbanken

A-Score: 6.7/10

Value: 5.5

Growth: 3.8

Quality: 5.4

Yield: 9.4

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

UBS

A-Score: 5.2/10

Value: 4.2

Growth: 4.0

Quality: 3.9

Yield: 5.6

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-29.91%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.72%

Barclays PLC - GB0031348658

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BARC

1.c. Company Highlights

Cheaper

Average Quality

Stable Momentum

Earnings Beats

Revenues Miss

Fairly Valued

Lower Quality

Average Growth

Strong Momentum

Average Yield

Earnings Miss

Medium Volatility

Revenues Beats

Higher Growth

2. Barclays' Q3 2025: Strong Revenue Growth and Improved Profitability

Financial Performance

Valuation and Dividend Yield

Credit Quality and Capital Position

Outlook and Guidance

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.80%)

6. Segments

Barclays Investment Bank

Expected Growth: 5.2%

Barclays UK

Expected Growth: 4.5%

Barclays Us Consumer Bank

Expected Growth: None%

Barclays Uk Corporate Bank

Expected Growth: None%

Barclays Private Bank and Wealth Management

Expected Growth: 4.8%

Head Office

Expected Growth: None%

7. Detailed Products

Personal Banking

Business Banking

Corporate Banking

Investment Banking

Wealth Management

Credit Cards

Mortgages

Insurance

8. Barclays PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Barclays PLC passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

12.e Scoring ^Insights

12.f DCF ^BETA