Barclays Q3 profit misses expectations amid weakness in fixed income

(Sharecast News) - Barclays reported a slightly lower-than-expected third-quarter profit on Thursday following a strong performance in equities but weakness in fixed income, as it announced a £500m share buyback. In the three months to the end of September, pre-tax profit grew 12% to £2.3bn, missing expectations of £2.4bn, while earnings per share were 18% higher year-on-year at 12.3p.

The return on tangible equity rose to 11.7% in Q3 from 10.6% in the same period a year earlier, and Barclays said it was on track to deliver a RoTE greater than 12% in 2026.

Barclays hailed a strong performance in the equities segment, where total income surged 47% to £1bn, reflecting prior investment in prime financing and equity derivatives.

This helped to offset a 19% drop in income to £1bn in FICC (Fixed Income, Currencies, and Commodities), which reflected lower client activity in rates and credit into the second half of the quarter, and "further adversity" in September due to the macroeconomic environment.

Investment banking saw a 3% dip in income to £1.1bn in the third quarter.

Chief executive C. S. Venkatakrishnan said he was "pleased with the ongoing momentum of Barclays' operational and financial performance".

"With one quarter to go before the end of our original three-year plan, we have either achieved or are on track to achieve all of our 2026 group targets," he said. "We are confident in and committed to the 2028 targets that we laid out earlier in the year."

See latest RNS on Sharecast