Barclays has posted an above forecast first-quarter profit of £2.7 billion from £2.3bn in the same period a year ago, boosted by investment banking revenue.

This was above analysts’ forecasts for £2.5bn. Income at its investment bank rose 16% to £3.9bn in the first quarter, above expectations of £3.5bn. Its private bank and wealth management business rose 12% to £349m..

Barclays has now lifted its guidance for 2025 income for a second time this year to above £12.5bn from a previous forecast of £12.2bn.

However, analysts say it will need to deliver in a global economy coloured by the trade war instigated by Donald Trump.

The bank’s share rose over 1.5% in early trading.

Market reaction

John Moore, senior investment manager at RBC Brewin Dolphin, said: “Barclays has beaten expectations again with a robust set of results against a volatile backdrop.

“Given its US exposure, the bank’s share price took a near -20% hit during the peak of the tariff uncertainty, but has rebounded quickly – and today’s update underlines the solid foundations which can help it ride through periods like these.

“Income and profits are up double digits year-on-year, while its balance sheet remains solid, the integration of Tesco bank solidifies its position in the UK, and stock market movements have been a boost to its investment banking operation – where income increased 16%.

“While macroeconomic uncertainty in the USA may prove a drag on performance this year, Barclays’ guidance has been upped and changes at the likes of HSBC and Santander could open up opportunities at home, which the bank is in a strong position to capitalise on.”

Russ Mould, investment manager at AJ Bell, says: “In the past, Barclays has drawn fire for its investment banking division and its role within the group has been heavily questioned. This part of the business shone in the first quarter as increased market volatility provided its trading operations with a major boost.

“Given said volatility has only picked up since the end of March, there is a good chance this could continue to provide Barclays with a tailwind in the current quarter too – though like the markets, this remains an unpredictable factor.

“Happily, for Barclays, other parts of the business are also performing well – bar US consumer banking where the company has taken some extra provisions, hinting at potentially increased risks across the Atlantic.

“The bank has upgraded its net interest income guidance despite the uncertain outlook for interest rates, which has a positive read across for UK-focused peers Lloyds and NatWest, and the company is sticking with its plan to return £10 billion to shareholders between 2024 and 2026.

“Three-and-a-half years since his appointment, chief executive CS Venkatakrishnan’s plan for the business seems to be on track although the market will be keeping a close eye on bad debt provisions to see if these are affected by the broader macro-economic uncertainty.”