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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

Breaking News: Barclays PLC has been named a top pick by JP Morgan as the trading boom is expected to continue. Analysts see European banks, including Barclays, closing the valuation gap with Wall Street giants. This positive outlook comes as the bank is expected to benefit from a sustained trading boom. JP Morgan recommends a buy on Barclays, citing its strong performance in trading. The bank's recent earnings release showed improved trading revenue. Barclays is well positioned to capitalize on the current market trends.

1.c. Company Highlights

2. Barclays' Strong Financial Performance and Future Plans

Barclays achieved a return on tangible equity (RoTE) of 11.3% and top-line growth of 9% year-on-year to GBP 29.1 billion. The group cost/income ratio improved to 61%, and the loan loss rate was 52 basis points. Shareholder distributions for 2025 total GBP 3.7 billion, up from GBP 3 billion in 2024, comprising dividends of GBP 1.2 billion and share buybacks of GBP 2.5 billion. The actual EPS came out at 0.08488, beating estimates at 0.07686.

Publication Date: Feb -18

📋 Highlights
  • 2025 Financial Targets Achieved:: Barclays met all 2025 goals with a RoTE of 11.3%, 9% YoY top-line growth to GBP 29.1 billion, and a cost/income ratio of 61%.
  • Shareholder Distributions Up:: 2025 distributions rose to GBP 3.7 billion (from GBP 3 billion in 2024), including GBP 2.5 billion in buybacks and GBP 1.2 billion in dividends.
  • Divisional RoTE Growth:: Investment Bank RoTE increased 2.1pp to 10.6%, and U.S. Consumer Bank RoTE rose 1.9pp to 11%, both achieving double-digit returns.
  • 2026 Income & RoTE Outlook:: Group income to hit GBP 31 billion (+GBP 1.9 billion vs. 2025 plan), with RoTE exceeding 12% and a target of >14% by 2028.
  • Capital Generation & Efficiency:: Targets GBP 15 billion shareholder returns by 2028, low 50s cost/income ratio by 2028, and GBP 2 billion in cost savings over three years.

Financial Highlights

The bank's divisions generated double-digit RoTE in 2025, with the Investment Bank's RoTE increasing 2.1 percentage points to 10.6%, and the U.S. Consumer Bank's RoTE rising 1.9 percentage points to 11%. Barclays has delivered GBP 20 billion of the GBP 30 billion RWA growth targeted for the end of 2026. For 2026, the group expects income to grow to circa GBP 31 billion, driven by stable income streams and lending growth.

Valuation Metrics

To understand what's priced in, we can look at the valuation metrics. The Price-to-Tangible Book Value (P/TBV) is not directly available, but the P/B Ratio is 0.85, indicating that the stock might be undervalued. The Net Interest Margin (NIM) is expected to be greater than 13% for the U.S. Consumer Bank in 2026. The Dividend Yield is 1.5%, providing a relatively stable return for shareholders.

Future Plans and Targets

Barclays targets a return on tangible equity of greater than 14% by 2028 and aims to distribute over GBP 15 billion across 2026-2028. The bank plans to increase investments twofold to drive deep technological transformation and modernization, including embedding AI at scale across the group. The company's transformation is built on three pillars: cloud computing, data platforms, and AI adoption.

Investment Bank Performance

The Investment Bank aims to achieve a target of greater than 7% RWA productivity by 2028, with a focus on stable sources of revenue. The bank expects the International Corporate Bank to be a larger part of the IB, leading to more stable income overall. As Venkatakrishnan mentioned, "Investment Banking fees are influenced by various factors, similar to markets. Some of it has to do with relative strengths and market evolution."

Capital Generation and Distribution

The bank expects capital generation to exceed 230 basis points, an improvement of more than 30% over the next three years. Barclays plans to distribute over GBP 15 billion to shareholders by 2028, subject to regulatory and Board approval. The bank will also maintain capacity for selective investments to support structurally higher returns beyond 2028.

3. NewsRoom

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Barclays named a top global investment bank pick as JP Morgan says trading boom has further to run

Mar -10

Source: proactiveinvestors.com

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JP Morgan favours Barclays and Deutsche Bank as Middle East volatility boosts trading outlook for investment banks

Mar -03

Source: proactiveinvestors.com

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FTSE 100 Live: Stocks search for direction as gold soars above $5,000

Jan -26

Source: proactiveinvestors.com

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Credit lender stocks slide on Trump proposal to cap card interest rates

Jan -12

Source: proactiveinvestors.com

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Haydale raises £6.4m to buy decarbonisation services specialist

Dec -12

Source: proactiveinvestors.com

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Barclays warns interchange fee overhaul could threaten airlines’ loyalty revenue

Dec -05

Source:

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

Dec -04

Source:

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

Dec -03

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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
HSBC

A-Score: 7.6/10

Value: 5.7

Growth: 7.3

Quality: 6.2

Yield: 8.8

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
ING

A-Score: 6.9/10

Value: 4.8

Growth: 5.7

Quality: 4.8

Yield: 9.4

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
NatWest

A-Score: 6.8/10

Value: 6.4

Growth: 5.6

Quality: 6.5

Yield: 7.5

Momentum: 8.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Barclays

A-Score: 6.6/10

Value: 7.2

Growth: 7.2

Quality: 5.6

Yield: 5.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Handelsbanken

A-Score: 6.4/10

Value: 5.3

Growth: 3.8

Quality: 5.2

Yield: 9.4

Momentum: 6.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
UBS

A-Score: 4.8/10

Value: 3.2

Growth: 4.0

Quality: 4.0

Yield: 5.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.86$

Current Price

3.86$

Potential

-0.00%

Expected Cash-Flows