Barclays profits rise 17% as dealmaking lifts investment bank

Barclays profits rose 17% in the first half of 2026, with pre-tax earnings reaching £6.1 billion, or about $8.1 billion, The Independent reported Tuesday. The result was ahead of analyst expectations of £5.9 billion and reflected stronger activity in the lender’s investment bank, while higher provisions for possible bad loans weighed against the gains.

The British bank’s pre-tax profit compared with £5.2 billion, or about $6.1 billion, in the same period a year earlier, according to the report. Barclays pointed to higher income across major parts of the group as the main driver of the increase.

Pre-tax profit is the amount a company earns before tax charges are deducted. For banks, loan-loss provisions are accounting charges set aside for loans that may not be repaid, so higher provisions can reduce reported earnings even when revenue is improving.

Why did Barclays profits rise?

The strongest contribution came from Barclays’ investment banking arm, where income increased 11% to £8 billion, or about $10.6 billion, The Independent reported. The report said the unit benefited from more dealmaking and activity in financial markets, areas that can lift investment banking revenue when corporate clients and investors transact more.

The group’s domestic business also expanded. Barclays’ UK bank generated income of £4.5 billion, or about $6 billion, an 8% increase from the prior-year period, according to The Independent.

The first-half figures suggest Barclays benefited from having several earnings engines working at the same time. Investment banking provided the largest reported income base among the divisions cited, while the UK bank added growth from its home market operations. Those gains were large enough to more than absorb the effect of higher provisions for potential credit losses.

What did Barclays say about its consumer businesses?

In a speech released with the results, Chief Executive C.S. Venkatakrishnan said Barclays’ US consumer business had passed 25 million customers without operating a physical branch network in the country.

Barclays also completed its purchase of Best Egg during the quarter, a deal aimed at strengthening the bank’s consumer lending capabilities, according to the report. The lender also worked with Samsung on the launch of Samsung’s US credit card.

Venkatakrishnan said Barclays was also investing in physical distribution where customer demand supported it. “Lastly, we are expanding and enhancing our branch network to meet the changing preferences of our customers,” he said in the speech.

He added that Barclays’ wealth offering in the UK included “low-cost, transparently constructed, risk-appropriate products” intended to help customers build their financial futures. The comments underscored a strategy spanning investment banking, domestic banking, US digital consumer finance and UK wealth services.

This story draws on original reporting from PYMNTS.