Barclays shares hit 19-year high after strong results

Barclays shares climbed to their highest point since 2007, gaining about 55% over the past 12 months. The stock outperformed peers, with Lloyds up about 52% and NatWest around 37% over the same period.

Barclays’ investment bank advised roughly $24bn of equity capital markets transactions year-to-date, up from about $11bn a year earlier. Debt market advisory volumes reached about $242bn, compared with roughly $220bn a year earlier. Investment banking revenue is estimated at about $1.8bn so far this year, versus $1.6bn for the same period last year.

Trading revenues benefited from elevated market volatility related to heightened interest in artificial intelligence and recent geopolitical tensions. The bank reported net income of £8.2bn and profit before tax of £2.8bn for the most recent reporting period, and announced a £500m share buyback.

The Group’s UK franchise saw revenue rise about 9%, with the UK corporate bank up about 10%. The investment bank recorded roughly 4% growth and the US consumer bank expanded by about 14%. Barclays’ market capitalisation is near £71bn.

The Bank of England kept its base rate at 3.75%, and market expectations for rate cuts have been delayed. Higher interest rates supported banks’ net interest margins during the reporting period.

Management raised medium-term targets, increasing the 2028 return on tangible equity guidance to 14%. The bank outlined plans to return about £15bn to shareholders through dividends and buybacks between 2026 and 2028.

Recent European deal activity has provided advisory fee opportunities. Notable transactions this year include Nuveen’s acquisition of Schroders for about $13.4bn and a proposed US-backed bid for EasyJet.

On price action, the share price moved above a resistance level at 506p, a level last seen in February, which removed a developing double-top pattern. The Average Directional Index rose to about 36.7, its highest since mid-January, and the Relative Strength Index is around 70. Some analysts have identified a near-term upside target near 550p.

Investors are watching management’s forward guidance, the £500m buyback and the planned £15bn return programme for signs of future capital allocation.