# Barclays earnings dip after raising car finance compensation bill to £325m

By Russ Mould — 2025-10-22

Russ Mould, investment director at AJ Bell, said: “If investors were looking for some reassurance after a tricky little spell for the banking sector then Barclays has provided it.

“Barclays was caught up in market concerns about the US private credit situation last week, with the company having some direct exposure to the collapse of sub-prime auto lender and car retailer Tricolor.

“It also has the broadest US exposure among its London-listed peers.

“However, the scale of the share buyback announcement unveiled today does not smack of a business in panic mode, nor does an increase in the guidance for the full year.

“A decision to move to quarterly buyback announcements is an interesting one and could mean shareholders come to expect a return of capital in this way on a regular basis.

“Barclays is undergoing a review of its loan portfolio, and the market may remain wary for some time until it has confidence that there are no more skeletons in the closet.

“There was also an increase in provisions linked to the car finance mis-selling scandal but this would have been widely expected after the details of a compensation scheme were outlined earlier this month.

“This, and a provision in its investment banking business, meant income was slightly below forecasts for the quarter.

“Ultimately, this was a decent start to the banking sector earnings season in the UK as the industry tries to rebuild investor confidence.”

Canonical: https://experts.pressassociation.com/expert/6/views/5b7a27ca2fd4c77b