Barclays plc - ADR

Strong results momentum; upgrades to 2026 outlook - Q2 income: GBP 8.3bn (+GBP 1.2bn YoY, +1.2bn benefit from an AA portfolio sale) - Q2 PBT: GBP 3.3bn (+30%+) - Q2 EPS: 16.7p (+43% YoY) (driven by operational progress + buybacks reducing share count) - Group guidance upgrade: 2026 group income to ~GBP 31.5bn (up from prior guidance ~GBP 31.0bn) - Returns target confidence: ROTE >12% in 2026 (reported 16.1% in Q2, 14.8% H1) and expectation to drive >14% in 2028

Capital strength + shareholder distributions (very tangible for investors) - CET1: 14.3% at quarter-end; ~14.0% pro-forma after announced buyback (operating intent: top end of 13–14% range pending regulation) - Distributions announced: - GBP 1bn share buyback - GBP 800m interim dividend (equivalent ~5.9p/share) - Dividend/buyback context: H1 distributions GBP 2.3bn (+61% vs H1 2025); company also referenced GBP 9bn distributions since 2024, targeting >GBP 10bn by year-end

Costs: efficiency wins now, but more “structural” cost actions coming (watch cost-income expectations) - Cost discipline: group cost-to-income improved to 54% (from 59% YoY); GBP 350m gross efficiency savings delivered YTD (GBP 200m in Q2) - Near-term caveat: costs rose ~GBP 300m YoY, including: - ~$200m additional compensation accruals in the Investment Bank (aligning income/cost) - compensation mix changes due to regulatory requirements (expected +GBP 100–150m weighted into 2027) - 2026–2027 transition plan: company expects up to a further GBP 300m of structural cost actions in H2 2026, funded by stronger H1 profitability, to yield commensurate efficiency gains in 2027 - Cost-income “North Star” retained: investment bank acknowledged consensus cost risk (no absolute OpEx target given), but management reiterated low-50s cost-income in 2028 and meaningful progress toward that from current-year high-50s