Barclays PLC (LSE:BARC) stepped up its target for returns in 2025 and plans to distribute at least £10 billion of capital to shareholders by the end of next year, including a £1 billion buyback announced today.
This followed a better-than-expected performance in the fourth quarter, where the statutory return on tangible equity (RoTE) was 7.5% as profit before tax came in at £1.7 billion compared to £0.1 billion a year earlier.
Profit before tax for the year increased by 24% to £8.1 billion.
Group income of £7 billion in the fourth quarter was up 24% year-on-year, or 14% year-on-year on an organic basis, as investment banking income increased 28%, reflecting higher trading activity.
The net interest margin ended the year at 3.53%, up from 3.34% at the end of the third quarter.
Credit impairment charges of £0.7 billion were taken.
The CET1 capital ratio ended the year at 13.6%, which chief executive CS Venkatakrishnan said underpins the target for shareholders distributions overt the next two years, “with a progressive increase in 2025 vs 2024”.
“Our new guidance for 2025, including group RoTE of circa 11%, represents an important next step in the journey towards our 2026 targets, including group RoTE of greater than 12%.”