Barclays plc - ADR

Strong Q1 Performance and Growth Outlook: Barclays reported a return on tangible equity (RoTE) of 14% for Q1 2025, exceeding the previous year's 12.3%. Total income increased by 11% year-on-year to £7.7 billion, with notable contributions from the Investment Bank and Barclays UK. The bank is confident in achieving an approximately 11% RoTE for the full year.

Upgraded NII Guidance: The bank upgraded its net interest income (NII) guidance for Barclays UK and the group, now expecting over £7.6 billion of NII in FY 2025, up from £7.4 billion. This improvement stems from higher-than-expected seasonal deposit volumes and a favorable mix, reflecting a stable income growth trajectory.

Cost Discipline Amid Rising Expenses: Total costs rose 5% year-on-year, influenced by run-rate costs associated with Tesco Bank acquisitions and employee compensation. Despite this, Barclays achieved a cost-to-income ratio of 57% for Q1, aligning with its long-term targets of circa 61% for 2025 and the high 50s for 2026.