Barclays profits surge 17% as investment bank cashes in on trading spurt

Barclays has revealed its profits jumped by 17 per cent over the first half of 2026 as its investment bank cashed in on more dealmaking and activity in the financial markets.

Susannah Streeter, chief investment strategist at Wealth Club, said: “Barclays results may have surpassed expectations, boosted by a revival in dealmaking, stronger investment banking activity and resilient consumers, but investors have a glass-half-empty view, unnerved about bad debt provision growing.

“There are also likely to be concerns about whether the bank can keep riding this investment wave or whether revenues could become choppier ahead.

“On the face of it, the first-half results were stellar, with profits rising 17 per cent, prompting the bank to unwrap a bumper £1 billion buyback present for shareholders.

“The big driver behind Barclays’ performance has been the resurgence in corporate dealmaking.

“The steady stream of overseas bidders circling UK-listed companies is likely to have provided Barclays with more opportunities to win lucrative advisory, financing and underwriting work.

“Advisory and underwriting revenues have remained robust, building on the healthy M&A pipeline the bank highlighted earlier this year.

“Rather than relying on one blockbuster IPO or mega-merger, Barclays appears to be benefiting from a broader revival in corporate activity.

“It is earning fees not just from takeover advice, but from financing acquisitions, underwriting debt and helping clients manage the risks that come with big cross-border deals.

“With international buyers continuing to see value in UK companies, that pipeline of work should continue to provide support, even though the steady exodus of companies from the London Stock Exchange is increasingly raising concerns about the long-term health of the UK market.

“Market volatility, fuelled by geopolitical tensions including the war in Iran, also appears to have played into Barclays’ hands.

“But although choppy markets can create opportunities, there is also a risk that this level of activity could calm sharply, leaving revenues more exposed to the ebb and flow of market moves.

“There are also ongoing concerns over credit impairment charges for bad loans. They increased to £1.4 billion for the half-year period, from £1.1 billion the year before.

“This was largely driven by a one-off hit of £228 million relating to the collapse of UK property lender Market Financial Solutions amid allegations of fraud.

“Although this rise in credit impairment does not appear to reflect a broad deterioration in the health of UK consumers or businesses, it does highlight the risks banks face as they navigate a more uncertain economic backdrop.”