Barclays third-quarter profit falls short of forecasts as fixed income weakens

what happened

Barclays posted pre-tax profit of £2.3bn for the three months to September, up 12% year on year but below the £2.4bn analysts expected, TradingView reported. Earnings per share climbed 18% to 12.3p, and return on tangible equity improved to 11.7% from 10.6%. The bank said it remains on course for a RoTE above 12% in 2026.

Equities income jumped 47% to £1bn, which the bank linked to earlier investment in prime financing and equity derivatives. That offset a 19% fall in FICC income to £1bn, driven by weaker client activity in rates and credit and what the bank called "further adversity" in September. Investment banking income dipped 3% to £1.1bn.

Chief executive C. S. Venkatakrishnan said he was "pleased with the ongoing momentum" of the group's performance. With one quarter left in the original three-year plan, Barclays said it had achieved or was on track to achieve all its 2026 group targets, and reaffirmed its 2028 goals.

why it matters

For markets, the quarter highlights a split in the bank's trading business: strong equities revenue offset a sharp drop in fixed income, a key earnings driver for large global lenders. The reaffirmed 2026 and 2028 targets matter for investors tracking the stock and the UK banking sector.

market impact

Barclays and UK banks: weak fixed income revenue weighs on earnings, strong equities trading partly offsets the drop

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