Barclays (BARC)
A UK retail bank bolted to a global investment bank. Those two halves earn money in completely different ways, and valuing Barclays means having a view on both.
The business
Barclays runs a UK retail and business bank, a UK corporate bank, a private bank and wealth arm, a US consumer bank, and a global investment bank. In H1 2026 all three UK businesses returned above 20% on tangible equity, the investment bank 16.0%.
Group income rose 11% to £16.5bn in H1 2026, with profit before tax up around 17% to £6.1bn. The company upgraded its 2026 income target to about £31.5bn.
The numbers that matter
All figures as reported on the dates shown. Nothing on this page updates with the share price — the live valuation sits in the app.
| Measure | Latest reported | |
|---|---|---|
| H1 2026 profit before tax | £6.1bn | +17% |
| Total income, H1 | £16.5bn | +11% |
| Return on tangible equity | 14.8% | target above 12% |
| CET1 ratio | 14.3% | target range 13-14% |
| Credit impairments, H1 | £1.4bn | incl. £228m single name |
| Motor finance provision | £430m | UK redress |
| H1 capital returns | £2.3bn | +61% year on year |
The moat
Retail banking has a real moat: current accounts are sticky, switching is a chore, and deposits are a cheap and durable funding source. That is why the UK arms earn above 20%.
Investment banking has almost none. It is a people business competing with the American banks on the same deals, and its earnings swing with market conditions — investment bank income rose 20% in Q2 2026 because conditions were favourable. Favourable conditions do not persist by arrangement.
What to check before you value it
Return on tangible equity, not profit
RoTE is the measure that matters for banks because it accounts for the capital required to produce the profit. H1 2026 was 14.8%, with Q2 at 16.1%, against a 2026 target above 12%.
The CET1 ratio
This is the bank's capital buffer. Barclays reported 14.3% at Q2 2026, above its 13-14% target range. Below the range means less capacity for buybacks; well above can mean capital sitting idle.
Impairments, and what caused them
Credit impairment charges rose to £1.4bn in H1 2026, including a £228m single-name charge and a UK motor finance redress provision now standing at £430m. A one-off charge and a deteriorating loan book look similar in the headline number.
How much of the return is the investment bank
Investment banking earnings are cyclical. A year when trading is strong flatters the group. Separating the durable UK returns from the volatile ones changes what multiple is reasonable.
Recent filings
Dated announcements only. Figures below were reported on the dates shown and are not updated as the share price moves.
How Oak Growth scores it
Oak Growth runs a discounted cash flow on Barclays and publishes the assumptions behind it — the discount rate, the growth rate and the terminal value — alongside a margin of safety against the live price. It also scores the company on the four pillars: moat, management, economics and value, in that order, because price comes last. The live figures sit in the app rather than on this page, so nothing here goes stale.
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Is Barclays a good bank share to own?
H1 2026 return on tangible equity was 14.8%, above its own 2026 target of more than 12%, with all three UK businesses returning above 20%. The complication is the investment bank, whose earnings depend on market conditions and are therefore less predictable than retail banking.
What is return on tangible equity and why does it matter for banks?
RoTE measures profit against shareholder capital after stripping out intangibles like goodwill. Banks are capital-constrained, so profit alone tells you little. RoTE tells you how efficiently the bank turns capital into earnings, which is the core question.
What is the CET1 ratio?
A bank's core capital measured against its risk-weighted assets — essentially the buffer that absorbs losses. Barclays reported 14.3% at Q2 2026 against a target range of 13-14%. Regulators set minimums, and capital above the requirement is what funds dividends and buybacks.
Why did Barclays shares fall despite beating expectations?
Investors focused on rising costs and credit impairment charges, which climbed to £1.4bn in H1 2026 including a £228m single-name charge and a larger UK motor finance redress provision. A profit beat and a deteriorating cost or credit picture can appear in the same set of results.