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Dec 31, 2024
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Barclays Q4 2024 Earnings Report
Barclays reported strong Q4 2024 performance with revenue and profitability growth, driven by investment banking and strategic acquisitions.
Key Takeaways
Barclays reported Q4 2024 revenue of £7.0 billion and a profit before tax of £1.7 billion. Adjusted EPS was 6.7p. The company saw strong performance in its investment banking segment, while the acquisition of Tesco Bank contributed positively. Operating income improved despite higher credit impairment charges.
Revenue increased 24% year-on-year to £7.0 billion.
Profit before tax reached £1.7 billion, up from £110 million in Q4 2023.
Adjusted EPS was 6.7p, compared to a loss of 0.7p in Q4 2023.
Credit impairment charges rose to £711 million, reflecting the impact of the Tesco Bank acquisition.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Barclays expects to achieve a RoTE of approximately 11% in 2025, supported by cost efficiencies and strategic growth in investment banking and consumer banking. The bank aims to increase capital returns progressively.
Positive Outlook
- Targeting an RoTE of ~11% in 2025, with a path to exceed 12% by 2026.
- Progressive increase in total capital returns versus 2024.
- Group net interest income (NII) excluding Investment Bank expected to reach ~£12.2 billion in 2025.
- Cost-income ratio targeted at ~61% in 2025.
- Strong capital position with CET1 ratio maintained in the 13-14% range.
Challenges Ahead
- Loan loss rate expected to remain within the 50-60bps range.
- Potential impact from regulatory changes, including Basel 3.1 adjustments.
- Market volatility and geopolitical risks may impact investment banking revenue.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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