Barclays Reports £6.1bn Profit Amid TUC Banking Levy Proposal

• Pre-tax profits reached £6.1 billion for the first half of 2026, a 17% year-on-year increase.
• The Trades Union Congress (TUC) has proposed raising the bank surcharge to fund social energy tariffs.
• Barclays announced a £1 billion share buyback and a dividend increase to 5.9p per share.
• Income from the bank's investment arm grew by 11% following increased market volatility.
• Credit impairment charges for potential bad loans rose to £1.4 billion.

Barclays has reported a substantial rise in pre-tax profits, which reached £6.1 billion for the first half of 2026. This figure represents a 17% increase from the £5.2 billion recorded during the same period in 2025. The financial results exceeded the expectations of analysts, who had projected a consensus profit range between £5.9 billion and £5.94 billion.

The bank's performance was significantly bolstered by its investment banking division, where income rose 11% to £8 billion. This growth was largely attributed to market volatility and increased dealmaking activity, influenced by ongoing geopolitical tensions. Specifically, revenues from equities trading saw a 45% jump in the second quarter of 2026. Following these results, CEO C.S. Venkatakrishnan has upgraded the group's total income target for the year to approximately £31.5 billion.

According to reports in The Mirror, the profit surge has led to calls from the Trades Union Congress (TUC) for a 'tax raid' on the banking sector. TUC General Secretary Paul Nowak commented that major banks are 'raking it in' while many members of the public continue to face 'mortgage misery' and high utility bills. The TUC has proposed increasing the current 3% bank surcharge to either 16% or 35%, matching the existing energy windfall tax. The union suggests such a move could raise up to £60 billion over four years to fund social energy tariffs for vulnerable households.

Prime Minister Andy Burnham, who recently assumed office, is facing these proposals as the government evaluates fiscal policy. Amidst the high profits, Barclays also increased its provisions for bad loans, with credit impairment charges rising to £1.4 billion for the half-year. Additionally, the bank recorded a £228 million one-off hit in the first quarter related to the collapse of Market Financial Solutions.

Shareholders are set to benefit from the bank's strong position, with Barclays announcing a fresh £1 billion share buyback program. The dividend for the period has been set at 5.9p per share, nearly double the 3p dividend issued the previous year. Chief Financial Officer Anna Cross also noted that the bank expects to allocate up to £300 million toward structural cost actions to simplify its organisational operations.

Tom Church, Co-Founder of LatestDeals.co.uk, said, "The contrast between record banking profits and the rising cost of borrowing highlights the ongoing pressure on household finances across the UK."