Barclays BCS reported second-quarter 2025 net income attributable to ordinary equity holders of £1.66 billion ($2.22 billion), up 34% from the prior-year quarter’s level.

An increase in revenues and a solid balance sheet supported the results. However, the company recorded a rise in credit impairment charges and operating expenses in the quarter.

Barclays’s Revenues Improve, Expenses Rise

Total income was £7.19 billion ($9.60 billion), up 14% year over year.

Operating expenses (excluding litigation and conduct costs) of £4.15 billion ($5.54 billion) increased 4% year over year.

The cost-to-income ratio was 59%, down from 63% in the year-ago period.

Barclays recorded credit impairment charges of £469 million ($626.3 million), up 22% year over year.

Pre-tax income was £2.48 billion ($3.31 billion), up 28% from the prior-year quarter’s level.

BCS’ Solid Balance Sheet

Total assets, as of June 30, 2025, were £1,598.7 billion ($2,192.3 billion), up 5% from the Dec. 31, 2024, level.

Total risk-weighted assets fell 1.4% from the Dec. 31, 2024 level to £353 billion ($484.1 billion) as of June 30, 2025.

As of June 30, 2025, the Common Equity Tier 1 (CET1) ratio was 14% compared with 13.6% as of June 30, 2024.

Our View on Barclays

Given Barclays’ restructuring and business-simplification efforts, its operating efficiency is expected to improve in the quarters ahead. The company’s cost-saving efforts will likely keep aiding financials. Yet, uncertainties regarding the performance of capital markets businesses and a persistent rise in credit impairment charges are concerning. Nonetheless, a solid balance sheet and buyouts are expected to aid revenue growth.

Barclays PLC Price, Consensus and EPS SurpriseBarclays PLC Price, Consensus and EPS Surprise

Barclays PLC price-consensus-eps-surprise-chart | Barclays PLC Quote

Currently, Barclays carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Barclays’ Peers

ICICI Bank Ltd.’s IBN net income for the first quarter of fiscal 2025 (ended June 30) was INR127.7 billion ($1.5 billion), up 15.5% from the prior-year quarter’s level.

IBN’s results were driven by increased net interest income, non-interest income and growth in loans. However, higher operating expenses and declines in deposits and provisions were headwinds.

Deutsche Bank DB reported second-quarter 2025 earnings attributable to its shareholders of €1.49 billion ($1.75 billion) against the loss attributable to its shareholders of $143 million in the year-ago period.

This Germany-based lender reported a profit before tax of €2.4 billion ($2.8 billion), up from $411 million in the year-ago quarter.

DB’s results gained from increased revenues and lower expenses. Lower provision for credit losses was another positive.

Story Continues

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Barclays PLC (BCS):Free Stock Analysis Report

Deutsche Bank Aktiengesellschaft (DB):Free Stock Analysis Report

ICICI Bank Limited (IBN):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments