Barclays PLC (LSE:BARC) said it plans to launch a £750 million share buyback and return at least £10 billion of capital to shareholders by 2026 as reported profits above expectations and "good progress" on its three-year strategic plan.
Profit before tax for the first half of the year came to £4.2 billion, down from £4.6 billion a year ago, as second-quarter profits came in at £1.9 billion, well above the £1.6 billion average analyst forecast.
Group income was up 1% to £6.3 billion in the period, with UK income down 4% due to mortgage margin pressure and "adverse product dynamics" in deposits, though these did improve in the second quarter.
Barclays' investment bank income jumped 10% in the second quarter, as the sector benefited from strong trading performance, with equities income up 24%.
After completing a £1 billion share buyback announced its final results earlier this year, the new buyback and a dividend of 2.9p per share are planned for the first half of 2024.
Chief executive CS Venkatakrishnan hailed progress on the three-year plan, with a return on tangible equity of 11.1% in the first half of 2024, which he said "puts us on track" for the targeted 10%-plus RoTE in 2024.
He also raised guidance for other longer-term targets, including targeting RoTE above 12% and income of £30 billion by 2026, along with shareholder returns of at least £10 billion.
For the past period, he highlighted the completed sale of an Italian mortgage book, the announced sale of Barclays' German consumer finance business, and is "on track to complete the acquisition of Tesco Bank in November 2024".