Barclays has unveiled plans to transition to a quarterly share buyback programme following the firm's impressive surge in total income during the third quarter.
The FTSE 100 heavyweight secured £7.2bn in total income, comfortably surpassing internal analyst projections of £7bn. This figure also represented a nine per cent increase year-on-year, as reported by .
The bank announced its intention to adopt a quarterly share buyback approach as part of its broader strategy to deliver £10bn to shareholders by 2026.
As part of its third-quarter results, Barclays initiated a £500m share buyback programme.
The lender's shares climbed more than 2.6 per cent at market opening to 373.95p.
The fresh buyback programme proceeded despite the firm nearly quadrupling its motor finance provisions to £325m, with an additional £235m ring-fenced.
This approach mirrors similar actions taken by Lloyds Banking Group, Close Brothers and Bank of Ireland, all of whom have increased their provisions.
Barclays' updated provisions impacted third-quarter profit before tax, which reached £2.1bn – meeting analyst forecasts but declining seven per cent year-on-year. Across the year-to-date period, the lender has secured £7.3bn.
Barclays makes impairment as jitters hit credit market
The lender also recorded a £110m "single name" credit impairment charge within its investment banking division. This charge stemmed from Barclays' exposure to Tricolor – a US auto-dealership whose collapse due to loan defaults sent shockwaves through the private credit market.
Barclays, alongside counterparts JPMorgan and Fifth Third Bancorp, served as a warehouse lender to Tricolor. Benjamin Toms, an analyst at RBC, commented: "Whilst we view Barclays revenue diversification positively in the context of the uncertainty surrounding the º£½ÇÊÓƵ Autumn budget, the bank's US corporate exposure will receive scrutiny given local trends over the last couple of months."
However, the company has raised its return on equity expectations to more than 11 per cent for the upcoming year, due to higher than anticipated income and the acceleration of its cost-cutting measures.
Matt Britzman, a senior equity analyst at Hargreaves Lansdown, remarked: "Barclays' latest results show a bank quietly outperforming despite headline noise.
"The additional charge tied to motor finance grabbed attention, but investors had largely priced that in already with shares underperforming in recent weeks."
He further added: "Investment banking edged past estimates but lacked the big gains seen at US rivals, leaving Barclays leaning on its diversified model to deliver steady progress without any major fireworks."
Revenue from investment banking saw a modest increase of eight per cent, reaching £3.1bn.
Barclays boss in cost-cutting overhaul
The bank's chief, CS Venkatkrishnan, known as Venkat, is currently implementing a three-year plan aimed at reducing the lender's reliance on its investment bank.
In a LinkedIn post last year, Venkat set out financial targets including a return on tangible equity exceeding 12 per cent and the aim to return over £10bn to shareholders by 2026.
Earlier this year, Barclays reportedly enlisted the services of global consultancy behemoth McKinsey in a bid to pinpoint areas for cost reduction within its investment banking division.
The consultants were charged with identifying instances of work duplication and potential tasks for automation.
In a further bid to trim costs, Barclays divested its German consumer finance business in July 2024.
This move, finalised in February 2025, freed up approximately €4bn (£3.4bn) in risk-weighted assets and boosted the bank's CET1 ratio – a crucial indicator of a lender's financial health – by ten basis points.
