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Barclays profit up 17% on equities boom, but shares fall as costs set to rise. Tue, 28th Jul 2026 09:02 * Barclays announces £1 billion share buyback, above forecasts * Bank lifts income guidance to £31.5 billion from £31 billion * Investment bank second-quarter income £4 billion, above forecast LONDON, July 28 (Reuters) - Barclays' first half profits rose by a better than expected 17% as it reaped bumper equities trading revenues from volatile markets, although its shares dropped on Tuesday in a sign of high investor expectations for British banks. Profit before tax for the January to June period of £6.1 billion ($8.11 billion) was just above forecasts of about £5.94 billion, but Barclays shares fell nearly 5% as analysts said its equities performance undershot market expectations boosted by Wall Street rivals' bumper quarter. Barclays, whose stock price has risen nearly 50% in the last year, also announced a fresh share buyback of £1 billion, above forecasts for £831 million, and dividends worth £800 million as it returns excess capital to shareholders. The bank's performance was also tarnished by an additional £500 million in expected costs for the second half of the year, which it said included streamlining efforts. "We anticipate spending up to £300 million in structural cost actions, directly related to making the organisation simpler, such as platform change processes," Chief Financial Officer Anna Cross told reporters on a conference call. INVESTMENT BANK STRONG, BUT STILL LAGS WALL STREET Barclays also slightly upgraded its income guidance for the year from £31 billion to £31.5 billion and said it was on track to meet its performance goals for 2026. Barclays' investment bank, which differentiates it from domestic-focused UK rivals such as Lloyds and NatWest, delivered total income of £4 billion in the second quarter of the year compared with analysts' forecasts for £3.7 billion. Revenues from equities rose 45% in the quarter compared with the same period last year, Barclays said. That lagged Wall Street rivals which were up an average 69% in equities, aided by the SpaceX IPO that helped supercharge earnings. Barclays also logged a disappointing 1% gain in fixed income trading, its traditional strength, against a 13% average rise for the top five U.S. banks, a Reuters calculation showed. Volatility in financial markets triggered by the Iran war has driven a trading frenzy that has boosted banks' revenues, while blockbuster M&A deals and IPOs have fuelled fees. BANKS BRACE FOR LATEST LEADER'S POLICIES Barclays is the first big British bank to report earnings this week, as the country's lenders warily eye Andy Burnham, the country's seventh prime minister in the last decade. Having reaped record profits in recent years, banks have been concerned the left-leaning leader might hike taxes on them. They received a boost on Friday, however, when Reuters reported Burnham's administration is likely to preserve the previous one's pro-growth approach to financial services. Shares in this article. 503.20 -5.13%

UK savings deals: the heat is on as banks offer up to 8%. Don't delay in taking advantage of the competition that is pushing up interest rates and increasing choice, experts say It is shaping up to be a decent summer for savers as fierce competition among providers pushes up interest rates and increases choice. You can currently get instant- and easy-access accounts that pay up to 5% interest, and fixed-rate savings bonds that pay almost that much. Meanwhile, those looking for a regular savings account can now get up to 8%. So if you have cash languishing in a savings, or current, account that is earning no interest, or only giving you a paltry return, now is the time to move it to a better-paying home. "Things are looking promising - the choice is really good, but it's all about being proactive and switching, and making the most of these products while they are there," says Rachel Springall at the financial data provider Moneyfacts. This month, the number of "live" savings accounts paying more than the Bank of England base rate - currently 3.75% - rose to 1,385, the highest figure for more than six years, says Moneyfacts. That figure represents more than half of the total number. (Though it is based on the interest rate paid on a balance of £5,000.) With the cost of living still a big issue, many savers will be keen to keep their cash close at hand where they can get at it if needed. The average non-Isa easy-access account rate is now the highest it has been for almost a year, at 2.53%. The top-paying easy-access accounts offer quite a bit more. Revolut, the fast-growing fintech that is now a fully fledged bank, recently launched a "market-leading" savings rate offer for new UK customers. If you open one of its instant-access savings accounts between now and 4 August, you can benefit from a rate of 5% until 4 December this year. This will apply on balances up to £25,000. After 4 December, the interest will revert to the rate determined by your plan. So if you are on Revolut's free standard plan, or its £3.99-a-month Plus plan, for example, it will fall to 2.9%. Chase, the British retail arm of the US bank JP Morgan, has an easy-access account called Chase Saver that pays new customers 4.5%. That rate is boosted by a 2.25% interest bonus that lasts for 12 months - the account's standard rate is 2.25%. It lets people stash away up to £3m - however, a (free) Chase current account is required. Fixed-rate savings bonds offer some of the highest rates. You typically have to tie up your money for between six months and five years, and they provide a clear, guaranteed return. One-year fixed-rate bonds have been "very popular", says Springall, as many people do not want to tie up their cash for too long. The good news is that this month, the average one-year fixed bond rate rose to 4.22% - its highest since November 2024. However, at the time of writing you could get more than that: for example, Marcus by Goldman Sachs had a one-year fixed-rate bond paying 4.9%. Up to £250,000 can be paid into this online account. And Atom Bank has a one-year fixed-rate bond paying 4.8%. Regular savings accounts often offer eye-catching interest rates. With these, you put aside some money each month for a limited period. Often, you have to have a current account with the bank offering the product, and in many cases the headline rate only lasts for a year. Lloyds launched a new instant-access regular savings account earlier this month called Monthly Saver. The account pays an impressive 8%. There is also a version available for customers of Halifax and Bank of Scotland, although the Halifax one (called Regular Saver) does not let you access your savings during the 12-month term. In all cases you can save from £25 to £250 a month by standing order or bank transfer, and your interest is paid 12 months after you open the account. Santander also has a regular savings account paying 8% for 12 months. It lets you save up to £200 a month from its current accounts. But watch out for the savings interest "tax trap" if you are putting a large-ish sum of money into a decent-paying non-Isa account. Interest earned outside an Isa is subject to tax once you go over your personal savings allowance. This is £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers, and up to £5,000 if you earn less than £17,570 a year.

Banking hub to open in town's arts centre. Holly PhillipsEast Yorkshire and Lincolnshire A new banking hub is to open in Stamford, Lincolnshire. The hub will be based at Stamford Arts Centre, on St Mary's Street, for one year until a permanent home is found for the service, South Kesteven District Council said. The facility, set up by Cash Access UK and run by the Post Office, will open in early September on weekdays from 09:00 to 17:00 BST. Councillor Richard Cleaver said: "The way people bank and pay for things is changing, which is why banking hubs like this will help people meet directly with their bank and also help small businesses bank their cash." The hub will provide access to cash and face-to-face banking services. The council said safety measures, including CCTV, were being put in place in the reception area of the arts centre. Cleaver said: "An expansion of banking services in Stamford is to be welcomed and we are pleased to be able to help people to have easy access to banking where we can." In addition to the banking hub, the town also has a Santander branch, which is open three days a week, and a Nationwide building society, which is open six days a week. Lloyds Bank on High Street is due to close permanently on 13 October. Download the BBC News app from the App Store for iPhone and iPad or Google Play for Android devices More on this story Related internet links