20-F: Barclays Bank PLC Reports Strong 2025 Profit Growth Amidst Market Volatility

Sentiment:

Annual Report 10 February 2026 11:46 AM

Barclays Bank PLC announced a 25% increase in profit before tax for 2025, driven by robust performance in Global Markets and US Consumer Bank, despite rising credit impairment charges and ongoing regulatory challenges.

Delay expectedThe EU Artificial Intelligence Act (EU AI Act) has a phased approach to compliance, with certain provisions applying from February 2, 2025, rules on general purpose AI models from August 2, 2025, and high-risk AI applications from August 2, 2027 (subject to possible delay).The EU's Digital Omnibus proposals put forward in November 2025 may remove the AI literacy obligation under the EU AI Act.The European Commission has announced it will deprioritize work on assurance standards for sustainability reporting until October 1, 2027.The implementation date for Basel 3.1 standards has been extended to January 1, 2027, with a transitional period to ensure full implementation by January 1, 2030.The implementation of the Fundamental Review of the Trading Book (FRTB) proposals has been delayed to January 1, 2027, with the internal model approach (FRTB-IMA) delayed to January 1, 2028.The PRA's proposed implementation date for operational incident and third-party arrangement reporting will be no earlier than the second half of 2026.The SEC extended the compliance dates for large short position reporting to January 2, 2028, and for securities lending reporting to September 28, 2028.The SEC extended the compliance date for the broker-dealer customer protection rule for daily reserve computations until June 30, 2026.The FCA expects to publish a policy statement and final rules for the motor finance compensation scheme in February or March 2026, with compensation to consumers beginning later in 2026.The FCA expects to lift the existing pause on handling certain motor finance complaints on May 31, 2026, subject to the terms of the redress scheme.The implementation rules of India's Digital Personal Data Protection Act, 2023, are to be fully implemented in 2027 in a phased manner.The re-domiciliation of Barclays Bank Ireland PLC to Paris is expected to be completed in H1 2027.

Capital raiseBarclays Bank PLC issued three AT1 instruments (Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities) for 2,770 million GBP in 2025.The company has borrowings of $6 billion USD from a wholly-owned, indirect subsidiary, recorded as equity due to non-cumulative and discretionary interest payments and perpetually deferrable principal repayment.

Worse than expectedCredit impairment charges increased to 1,866 million GBP in 2025 from 1,617 million GBP in 2024, indicating a deterioration in credit quality or increased provisioning.Total operational risk losses increased to 66 million GBP in 2025 from 53 million GBP in 2024, suggesting a rise in operational incidents or their financial impact.The USCB total coverage ratio decreased to 11.1% from 11.4% in 2024, which could imply a slightly weaker buffer against potential credit losses in that segment.The increase in total operating expenses by 3% outpaced the 10% increase in total income, indicating a negative 'jaws' effect, though not explicitly stated as such, it implies less efficient cost management relative to revenue growth.

Summary

Profit before tax for the Barclays Bank Group increased by 25% to 5,943 million GBP in 2025, up from 4,747 million GBP in 2024.
Total income rose by 10% to 20,927 million GBP in 2025, compared to 19,037 million GBP in 2024.
Net assets grew to 62,313 million GBP as of December 31, 2025, from 59,220 million GBP in 2024.
Credit impairment charges increased to 1,866 million GBP in 2025, up from 1,617 million GBP in 2024, primarily due to the acquisition of the GM portfolio, an Investment Bank single name charge, and elevated US macroeconomic uncertainty.
Total operating expenses increased by 3% to 13,105 million GBP in 2025, reflecting investment, business growth, and inflation, partially offset by efficiency savings and favorable FX movements.
The effective tax rate was 21.6% in 2025, slightly higher than 21% in 2024.
The Barclays Bank PLC Domestic Liquidity Subgroup (DoLSub) liquidity coverage ratio (LCR) was 149.7% at December 31, 2025, exceeding the 100% regulatory requirement.
The Net Stable Funding Ratio (NSFR) averaged 113% at December 2025, indicating a stable balance sheet funding profile.
The company declared a 1,175 million GBP dividend to its parent, Barclays PLC, for 2025, expected to be paid around February 10, 2026.
31,856 Euro non-cumulative callable preference shares of 100 EUR each were redeemed and cancelled on June 16, 2025.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive report, reflecting solid income growth and strategic advancements in key business segments. However, the increase in credit impairment charges and operational losses, alongside a complex and evolving regulatory landscape, introduces a degree of caution.

Positives

Profit before tax increased significantly by 25% to 5,943 million GBP in 2025.
Total income grew by 10% to 20,927 million GBP, driven by strong performance in Global Markets, US Consumer Bank, and UK Corporate Bank.
Investment Bank income increased 9% to 13,330 million GBP, with strong growth in Global Markets.
US Consumer Bank income increased 11% to 3,708 million GBP, benefiting from organic growth, the GM portfolio acquisition, and increased purchase activity.
UK Corporate Bank income rose 14% to 2,125 million GBP, supported by higher average deposit and lending balances and structural hedge income.
Private Bank and Wealth Management income increased 6% to 1,418 million GBP, driven by growth in assets under management and loan balances.
The Liquidity Pool increased to 229.9 billion GBP, primarily due to deposit growth and wholesale funding.
The Barclays Bank PLC DoLSub LCR remained robust at 149.7%, well above the 100% regulatory requirement.
The Net Stable Funding Ratio (NSFR) of 113% demonstrates a stable balance sheet funding profile.
The CET1 ratio was 12.7%, above the minimum regulatory requirement of 10.4%.

Negatives

Credit impairment charges increased to 1,866 million GBP in 2025, up from 1,617 million GBP in 2024.
Total operating expenses increased by 3% to 13,105 million GBP, reflecting investment spend, business growth, and inflation.
Litigation and conduct charges amounted to 284 million GBP, mainly related to a motor finance redress charge.
The USCB total coverage ratio decreased to 11.1% from 11.4% in 2024, partly due to the GM portfolio acquisition.
The strengthening of average GBP against USD negatively impacted income and profits, and positively impacted credit impairment charges and total operating expenses.

Risks

Changes in global and local economic and market conditions, as well as geopolitical developments, may materially impact business, results, financial condition, and prospects.
Limitations on economic output growth, large fiscal deficits, and uncertainty about trade policies could lead to economic stagnation or recessionary dynamics.
US executive and legislative initiatives in areas like trade, foreign policy, and energy could negatively impact interest rates, inflation, business performance, and employment.
The adoption of tariffs and other protectionist measures could complicate the economic outlook for the EU, China, and other export-driven emerging markets.
Structural challenges in the EU, including heavily indebted governments, low productivity, tight labor markets, and deteriorating demographics, could adversely impact business.
Economic slowdown in China, property market slump, and challenges for export-driven sectors could affect global market exposures due to contagion effects.
Structural challenges in the UK, including subdued growth, challenging fiscal position, and risks of higher inflation, could adversely affect corporate businesses.
Weak economic sentiment in the UK could lead to widening spreads for UK government and corporate debt, softening housing market, and lower equity valuations.
Loss of presumption of conformity and regulatory divergence between the UK and EU could adversely impact operations.
Financial market volatility and risk of disorderly markets, driven by technological sector developments (e.g., AI), could lead to market corrections and negative wealth effects.
Economic activity's dependence on data, technology, networks, infrastructure, and cybersecurity heightens the risk of service disruptions.
Reputational risks can arise from perceived roles in global developments like geopolitical conflicts, climate change, digitalization, fraud, money laundering, and sanctions.
Disruptions to global supply chains and trade protectionism could negatively impact markets.
Diverging financial, conduct, and prudential regulations between jurisdictions increase compliance complexity and costs.
Interest rate cuts could pressure net interest margins due to delayed pass-through or smaller pass-through to client deposits.
Higher interest rates for longer could lead to weaker growth, reduced business confidence, higher unemployment, and increased credit losses.
Changes in interest rates could adversely impact the value of securities in the liquid asset portfolio, creating volatility in the FVOCI reserve.
Intense competition in the financial services industry from new competitors (e.g., FinTechs, central bank digital currencies) could reduce revenues and profitability or market share.
Regulatory changes, including enhanced capital, liquidity, and funding requirements, structural separation of activities, and new tax levies, could materially affect business.
Continued focus by regulators on fair customer outcomes, effective competition, and orderly financial markets (e.g., FCA's motor finance compensation scheme, Consumer Duty).
Implementation of conduct measures related to organizational culture, employee behavior, and whistleblowing.
Reforms to wholesale financial markets, including public offers, asset management, and bond/derivative transparency.
Increasing regulatory expectations for operational resilience, minimizing disruption impacts, and critical third-party service providers.
Focus on technology adoption, digital delivery, AI, digital assets, and cybersecurity, with new laws and regulatory standards.
Continued evolution of the UK's regulatory framework post-Brexit, with potential for increased implementation costs and divergence.
Harmonization of EU market access for non-EU banks, limiting cross-border service provision from the UK.
Implementation of Basel III package reforms (RWA approaches, FRTB, output floors, leverage ratio, MREL).
Review of US banking sector regulation, including potential easing of capital or prudential requirements.
Review of EU financial sector regulation to enhance competitiveness, potentially easing regulatory burdens and capital requirements.
Greater monitoring of capital, liquidity, and credit risk management, with focus on reporting methodology and data quality.
Increasing regulatory expectations for governance and risk management frameworks, particularly for climate change and sustainability-related risks, enhanced disclosures, and anti-greenwashing rules.
Changes in national or supra-national requirements regarding offshoring or outsourcing services and data transfers.
Financial crime, fraud, and market abuse standards, including new offenses like 'failure to prevent fraud' in the UK.
Application and enforcement of economic sanctions, including those with extra-territorial effect.
Compliance with additional regulatory requirements for individual operating entities to facilitate resolution planning.
Continuing regulatory focus on data privacy, including processing personal data, safeguards, and use in AI systems.
Ongoing requirements to allocate and monitor management accountability (e.g., SMCR).
Operational capacity limitations and increasing complexity of the regulatory environment may limit strategy execution.
Cost management initiatives may not be as effective as expected, leading to missed cost-saving targets.
Failure to adapt strategy and business model to changing climate standards, industry practices, and regulatory requirements.
Challenges from external factors beyond control, such as rapid energy demand growth, geopolitical uncertainty, and policy inconsistency.
Lack of progress in low-carbon technologies, client net-zero goals, and supportive public policies could hinder climate ambitions.
Adverse impact from perception of ineffective or insufficient response to climate change.
Operational disruptions due to technology failures, cyber/data integrity issues, third-party service unavailability, or personnel/premises issues.
Cyber attacks, increasingly sophisticated and targeting financial sector, could lead to data theft, disruption, liability, and reputational harm.
Deployment of agentic AI expands attack surface for cyber attacks, exploiting inadequate controls or autonomous system vulnerabilities.
Inadequacies in cybersecurity policies, procedures, or controls, or employee negligence, could compromise defenses.
New and emergent technology, particularly AI, presents risks of liability, reputational harm, and regulatory actions if errors, bias, or intellectual property infringements occur.
Use of AI by third-party service providers could expose the company to risks if they contravene agreements or use unlawful data sources.
Evolving AI regulatory frameworks may impose resource-intensive compliance obligations or restrict AI usage, leading to business disruption or competitive disadvantage.
Fraud, including third-party, first-party, and internal fraud, can lead to customer harm, financial losses, and reputational damage.
Data management, information protection, and AI risks, including non-compliance with privacy laws, inadvertent disclosure of confidential information, and AI bias or hallucinations.
Algorithmic trading errors could result in erroneous transactions, system outages, or impact pricing abilities.
Processing errors due to high transaction volumes, speed, frequency, and complexity, exacerbated by AI integration, could lead to customer harm, financial loss, and regulatory actions.
Dependence on suppliers for services and technology, including AI, introduces concentration risk and potential for unrecoverable losses from supplier failures.
Incorrect judgments, estimates, or assumptions in critical accounting policies and regulatory disclosures could result in material losses or impact capital/liquidity requirements.
Tax risk from non-compliance with domestic and international tax laws, differing interpretations by tax authorities, and new international tax regimes (e.g., Pillar Two).
Inability to attract, develop, and retain qualified employees could adversely affect business, results, and reputation.
Model risk from decisions based on incorrect or misused model outputs and reports, exacerbated by AI models, could lead to financial loss, poor decisions, or reputational damage.
Wholesale conduct risk from failures to adhere to proper standards, leading to detriment for colleagues, customers, or market participants.
Customer protection risk from product design failures, inadequate redress, or mismanagement of client money.
Product design and review risk if products fail to reasonably consider potential negative outcomes for customers.
Regulatory compliance risk from failure to observe relevant laws, codes, rules, and regulations, or inadequate supervision of employees.
Laws, rules, and regulations risk from non-compliance, leading to reputational damage, penalties, or fines.
Legal risk from the multitude of dynamic and potentially conflicting laws, rules, and regulations, exposing the company to investigations, enforcement actions, and civil proceedings.
Increasing litigation, conduct, enforcement, and contract liability risks related to climate change, environmental degradation, and other ESG issues.
Claims of potential greenwashing arising from sustainability-related statements.
Legal action from stakeholders for allegedly financing or contributing to climate change or other sustainability issues.
Policies restricting consideration of sustainability factors in investment processes in certain jurisdictions.

Future Outlook

Barclays Bank PLC aims to continue deepening client relationships, accelerating digital transformation, and improving operational efficiency across its UK Corporate Bank. The Private Bank and Wealth Management division plans to launch an integrated digital SIPP, expand its UK Mass Affluent proposition, and grow international business with investments in the Middle East and Asia, including a new Singapore booking center. The Investment Bank seeks to strengthen its global position by leveraging advisory expertise, deepening client relationships, and driving RWA productivity, while streamlining operations and utilizing AI. The US Consumer Bank is committed to scaling its cards business through organic growth and new partnerships, accelerating diversification via the Best Egg acquisition, and investing in digitization and AI for enhanced customer experiences and operational efficiencies.

Management Comments

"We welcomed Mary Mack to the Board as a Non-Executive Director with effect from 1 June 2025."
"The Board is grateful to both Diane and Mary for their invaluable contribution to the Board during their respective tenures."
"The Board supports The Barclays Way, which provides the path for achieving a dynamic and positive culture."
"The Board believes that a positive culture, supported by effective leadership and a consistent tone from the top, is crucial to our success."
"Barclays Bank Group is committed to paying people fairly, with regards to their specific role, seniority, responsibilities, skills and experience and other factors that properly affect pay, in a way that balances the needs of the Barclays Bank Group's stakeholders."
"Our plan is designed to remain resilient amid ongoing volatility and uncertainty, while meeting the needs of our wider stakeholders including customers, clients, regulators, and shareholders."
"We actively navigate risk and uncertainty, and are vigilant to deliver for our stakeholders as the environment evolves."

Industry Context

StockSavvy.ai notes that Barclays Bank PLC's performance reflects broader trends in the financial services industry, where strong growth in investment banking and consumer lending is observed, particularly in the US market. The increased focus on digital transformation and AI adoption aligns with industry-wide efforts to enhance customer experience and operational efficiency. However, the rise in credit impairment charges and ongoing regulatory scrutiny, especially concerning climate risk and consumer protection (e.g., motor finance), indicates persistent challenges faced by large financial institutions. The strategic partnerships and acquisitions, like the GM portfolio and Best Egg, are consistent with industry consolidation and diversification efforts to capture market share and expand product offerings. The evolving regulatory landscape, particularly around AI and sustainability, presents both opportunities and compliance complexities for global banks.

Comparison to Industry Standards

Barclays Investment Bank maintained its rank of sixth across the Investment Bank in both Global Markets and Investment Banking, competing with peers like BofA, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan Stanley, and UBS.
The UK Corporate Bank grew lending market share by 1%, indicating competitive performance against other UK banks.
Client satisfaction scores in UK Corporate Bank improved, placing the company second among its peers in satisfaction relating to client-facing colleagues (as measured by SavantaMarket Vue Survey Q4 2025).
US Consumer Bank's c.3% share of the US credit card market indicates a significant, though not dominant, position compared to major US issuers.
The average payment rate of 31% in USCB's fourth quarter is noted as higher than pre-pandemic levels, suggesting strong portfolio quality relative to historical benchmarks.
Barclays' cybersecurity activities are assessed against the industry-recognized National Institute of Standards and Technology (NIST) Cybersecurity Framework, indicating adherence to leading security practices.
The company's climate strategy and financed emissions reduction targets for eight high-emitting sectors (Upstream Energy, Power, Cement, Steel, Automotive manufacturing, Aviation, UK Commercial Real Estate, UK Agriculture) and a convergence point for UK Housing align with global efforts towards a 1.5C pathway, using methodologies like BlueTrack and NGFS scenarios.

Management Changes

Role	Previous Person	New Person	Effective Date	Reason
Non-Executive Director	Diane Schueneman		2025-01-31	Stepped down from the Board and as a member of the Board Nominations and Audit Committees.
Non-Executive Director		Mary Mack	2025-06-01	Appointed to the Board.
Chief Financial Officer (BBPLC)	Aunoy Banerjee	Anna Cross (Interim)	2025-10-23	Resignation of previous CFO.
Chief Risk Officer (BBPLC Executive Committee)		Olivier Vigneron	2025-01-01	New appointment to the Executive Committee.
Chief Operating Officer (BBPLC Executive Committee)		Georges Lauchard	2025-01-01	New appointment to the Executive Committee.
Chief Compliance Officer (BBPLC Executive Committee)		Kate Vetch	2025-01-01	New appointment to the Executive Committee.
Non-Executive Director, Chair of Board Remuneration Committee, Member of Board Remuneration and Sustainability Committees	Mary Francis		2026-05-06	To retire from the Board.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Board Composition	The Board welcomed Mary Mack as a Non-Executive Director and noted the upcoming retirement of Mary Francis. Diane Schueneman stepped down. The Board continues to comprise a majority of independent Non-Executive Directors (80%).	2025-01-01	Maintains strong independent oversight and diverse expertise on the Board.
Committee Membership	Nigel Higgins was appointed to the Board Remuneration Committee. Diane Schueneman stepped down from the Board Nominations and Audit Committees. Mary Francis is to step down as Chair of the Board Remuneration Committee and as a member of the Board Remuneration and Sustainability Committees.	2025-01-01	Ensures continuity and appropriate expertise within key Board committees, with new appointments filling vacancies and strengthening specific areas.
Corporate Governance Arrangements	The Board adopted its own corporate governance arrangements, appropriate for a wholly-owned subsidiary of a listed company and a complex financial institution, rather than the UK Corporate Governance Code or Wates Principles.	2025-01-01	Tailors governance to the company's specific structure and regulatory regime, aiming for effective decision-making and long-term success.
Board Inclusion and Opportunity Policy	The Board adopted an updated version of the Board Inclusion and Opportunity Policy in February 2026, reflecting the Group's inclusion and opportunity strategy and aiming to meet FTSE Women Leaders Review and Parker Review recommendations.	2026-02-01	Reinforces commitment to diversity and inclusion at the Board level, aligning with broader Group strategy and external benchmarks.
Enterprise Risk Management Framework (ERMF)	The Board adopted the Barclays Group Enterprise Risk Management Framework (ERMF), which defines risk management, segregation of duties (Three Lines of Defence), principal risks, and risk appetite requirements.	2025-01-01	Strengthens the overall risk management structure and ensures consistent application of risk principles across the Group.
Financial Crime Risk Classification	Financial crime risk was elevated to a principal risk in the ERMF, effective from January 1, 2025, having previously been managed as part of compliance risk.	2025-01-01	Enhances transparency, visibility, and independent assessment of financial crime risk within the Barclays Bank Group.
Internal Control over Financial Reporting	Management assessed internal control over financial reporting as effective as at December 31, 2025, using the 2013 COSO framework.	2025-12-31	Provides reasonable assurance regarding the reliability of financial reporting.
Remuneration Policy	The Barclays Group Reward Policy was reviewed and its continued adoption confirmed by the Board Remuneration Committee, designed to promote long-term success and align remuneration with strategy and risk management.	2025-01-01	Ensures remuneration practices support sustainable performance and align with risk appetite and conduct expectations.
UKRF Sectionalization	The Barclays Bank UK Retirement Fund (UKRF) was amended to become a sectionalized scheme, creating two separate sections: the Barclays Bank Section and the Barclays UK Section, effective July 1, 2025.	2025-07-01	Separates Barclays Bank PLC from exposure to the Barclays UK Section of the UKRF, streamlining pension risk management for the entity.
Legal Risk Management Framework	The Group-wide Legal Risk Management Framework (LRMF) was updated in line with other Principal Risk Frameworks to provide consistency in risk management documentation.	2025-01-01	Enhances the identification, management, and measurement of legal risk across the Barclays Bank Group.

Legal Proceedings

US civil actions related to USD LIBOR were dismissed in September 2025, with plaintiffs appealing the decision.
Sterling LIBOR class actions in the SDNY were dismissed in 2018, and the dismissal was affirmed by the US Court of Appeals for the Second Circuit in September 2025, concluding the matter.
ICE LIBOR action in the US District Court for the Northern District of California was dismissed in 2022, affirmed in December 2024, and US Supreme Court review denied in June 2025, concluding the matter.
The remaining UK claim against Barclays Bank PLC and other banks in connection with alleged manipulation of LIBOR has settled, with the settlement not being material.
Proceedings are ongoing in Spain and Italy relating to alleged manipulation of LIBOR and EURIBOR.
Foreign exchange civil actions in Australia concluded with court approval of settlement, which was not material.
A settlement in principle has been agreed for foreign exchange civil actions in Israel, subject to court approval, not material.
UK Competition Appeal Tribunal (CAT) class action regarding foreign exchange manipulation was affirmed by the UK Supreme Court in December 2025 to be an opt-in class action.
US civil complaint alleging manipulation of silver price was dismissed against Barclays entities in 2018 and against remaining defendants in 2023, with plaintiffs appealing the dismissal.
A settlement in principle has been reached for Canadian civil actions alleging manipulation of gold and silver prices, subject to court approval, not material.
US Treasury auction securities civil actions were dismissed in 2021, affirmed in February 2024, and US Supreme Court review not sought, concluding the matter.
A settlement in principle has been agreed for Variable Rate Demand Obligations (VRDOs) civil action in state court, subject to court approval, not material.
The class certification for VRDOs consolidated class action in the SDNY was affirmed by the Second Circuit in August 2025, with defendants petitioning for US Supreme Court review.
Odd-lot corporate bonds antitrust class action in the US was dismissed in September 2025, concluding the matter.
Credit Default Swap civil action in New Mexico federal court had a motion for judgment on the pleadings filed by defendants after an appeal was denied in May 2025.
Interest rate swap (IRS) antitrust class action settled and was paid in 2024, not material, with individual claims proceeding separately.
BDC Finance L.L.C. filed a complaint in 2008, with Barclays Bank PLC's counterclaim for damages to be scheduled for trial after a pretrial motion was granted in November 2025.
US Anti-Terrorism Act civil actions in EDNY and SDNY are ongoing, with some dismissed and others stayed or awaiting amended complaints.
Shareholder derivative action in New York state court was dismissed in May 2025, concluding the matter, but a new complaint was filed in November 2025.
Skilled person review in relation to historical timeshare loans and associated matters concluded in 2023, with remediation measures completed.
FCA is consulting on an industry-wide compensation scheme for motor finance customers, with a provision of 325 million GBP recognized as at December 31, 2025 (up from 90 million GBP in 2024).
Over-issuance of securities in the US led to a class action claim that settled in 2024, not material.
Holders of VXX ETNs brought a class action in the SDNY, which was dismissed in March 2025, with plaintiffs appealing.
A class action by short sellers regarding VXX ETNs was dismissed in March 2025, affirmed by the Second Circuit in December 2025.
HMRC issued notices in 2018 regarding UK VAT treatment, with Barclays appealing the court's decision to the Upper Tribunal.
FCA civil enforcement investigations into financial crime systems and controls concluded in July 2025 with settlements, recognizing Barclays' cooperation.
Discussions with the relevant taxation authority are ongoing regarding a potential indemnity claim related to the sale of Barclays Consumer Bank Europe.

Related Party Transactions

Barclays Bank PLC is a wholly-owned subsidiary of Barclays PLC, the ultimate parent company.
Transactions between Barclays Bank PLC and its subsidiaries are eliminated on consolidation for the Group financial statements.
The Barclays Bank Group provides banking services to Barclays Bank Group pension funds (principally the UK Retirement Fund) and other entities, including loans, overdrafts, interest and non-interest bearing deposits, and current accounts.
Barclays Bank Group companies also provide investment management and custodian services to the Barclays Bank Group pension schemes.
All transactions with pension funds and other entities are conducted on the same terms as third-party transactions.
Summarized financial information for equity-accounted associates and joint ventures is provided in Note 33.
Key Management Personnel (Directors and Officers of Barclays Bank PLC, certain direct reports of the CEO, and heads of major business units and functions) receive banking services, with 12.9 million GBP in loans and 14.8 million GBP in deposits outstanding as at December 31, 2025.
Total commitments outstanding for Key Management Personnel were 0.1 million GBP as at December 31, 2025.
All loans to Key Management Personnel were made in the ordinary course of business on substantially the same terms as for comparable third-party transactions, and did not involve more than a normal risk of collectability.
Barclays Capital Asia Limited (BCAL) was sold by Barclays Bank PLC to its subsidiary Barclays International Holdings Limited for 227 million GBP, resulting in a 5 million GBP gain on sale.

Stakeholder Impact

Shareholders: Profit growth and dividend payments directly benefit shareholders. The increase in total equity also benefits shareholders. However, increased impairment charges and litigation costs could negatively impact shareholder value.
Employees: The company's commitment to an inclusive workplace, talent development, and fair pay agenda aims to positively impact employee well-being and career progression. Changes in paternity leave and non-primary caregiver leave policies enhance employee benefits. Mandatory cybersecurity training ensures employee awareness and compliance.
Customers/Clients: Strategic focus on client relationships, digital transformation, and enhanced product offerings aims to improve customer experience and satisfaction. The Consumer Duty in the UK sets higher expectations for care provided to retail customers. However, operational disruptions, fraud, or issues with AI technologies could lead to customer harm. The motor finance compensation scheme is expected to provide redress to affected customers.
Suppliers: Dependence on Third-Party Service Providers (TPSPs) for services and technology, including AI, creates risks if suppliers fail to meet expectations or experience cybersecurity incidents. The TPSP Code of Conduct and Supplier Control Obligations aim to ensure responsible practices in the supply chain.
Creditors: The stable LCR and NSFR, along with strong capital ratios, demonstrate the company's ability to meet its contractual obligations, benefiting creditors. The issuance of subordinated liabilities and AT1 securities impacts the capital structure relevant to creditors.
Regulators: Ongoing regulatory changes and scrutiny across various areas (prudential, conduct, climate, AI, financial crime) require significant compliance efforts and costs. Failure to meet regulatory expectations could result in fines, penalties, and restrictions on business operations.

Next Steps

Continue to deepen client relationships, accelerate digital transformation, and improve operational efficiency in UK Corporate Bank.
Enhance product mix, strengthen income quality, and drive technology-led improvements in client experience in UK Corporate Bank.
Launch an integrated digital SIPP and new UK Mass Affluent proposition in Private Bank and Wealth Management.
Expand international business with further investments in the Middle East and Asia markets, including the launch of a new Singapore booking center for PBWM.
Strengthen position as a leading global investment bank by leveraging advisory expertise, deep sector knowledge, and differentiated client offering.
Build share in Advisory and Capital Markets through productivity improvement, Treasury Coverage evolution, and continued investment in International Corporate Bank.
Scale the US cards business through organic growth and new partnership acquisitions, and accelerate USCB's diversification through the Best Egg acquisition (expected to close in Q2 2026).
Embrace latest technologies, such as GenAI and agile scalable platforms, to drive greater efficiency and deliver better customer experiences in USCB.
Continue to monitor and adapt to the evolving market environment, client needs, regulatory changes, and competitive pressures.
Complete the triennial funding valuation for the Barclays Bank Section of the UKRF in 2026.
The Upper Tribunal will hear Barclays' appeal against HMRC's judgment on UK corporation tax treatment in 2026.
The FCA expects to publish a policy statement and final rules for the motor finance compensation scheme in February or March 2026, with compensation to consumers beginning later in 2026.
The UK Government is expected to publish the first two UK Sustainability Reporting Standards (SRS) in early 2026.

Key Dates

Date	Description
2005-03-15	Euro non-cumulative callable preference shares were issued.
2005-06-08	US Dollar non-cumulative callable preference shares were issued.
2006-06-06	iPath Bloomberg Commodity Index Total ReturnSM ETNs inception date.
2006-06-09	iPath Bloomberg Commodity Index Total ReturnSM ETNs issue date.
2008-01-01	BDC Finance L.L.C. filed a complaint against Barclays Bank PLC.
2012-10-01	UKRF scheme closed to new entrants.
2013-03-12	iPath Select MLP Exchange-Traded Notes inception date.
2013-03-15	iPath Select MLP Exchange-Traded Notes issue date.
2014-07-01	UBS entered into a commodity index license agreement with Bloomberg Finance L.P.
2017-08-31	Coupon ex-date for iPath Select MLP ETNs changed from seventh to eighth index business day.
2018-01-01	UK's Pillar Two rules applied.
2018-01-17	iPath Series B S&P 500 VIX Short-Term FuturesTM ETNs and Mid-Term FuturesTM ETNs inception date.
2018-01-19	iPath Series B S&P 500 VIX Short-Term FuturesTM ETNs and Mid-Term FuturesTM ETNs issue date.
2018-12-31	HMRC issued notices regarding UK VAT treatment of certain Barclays overseas subsidiaries.
2019-09-09	iPath Series B Carbon Exchange-Traded Notes inception date.
2019-09-11	iPath Series B Carbon Exchange-Traded Notes issue date.
2020-03-15	Euro Preference Shares interest rate reset from fixed to quarterly floating rate.
2021-04-23	1 for 4 reverse split of VXX ETNs became effective.
2021-05-19	Barclays Bank PLC announced a 5 for 1 split of iPath Series B Carbon ETNs.
2021-06-04	5 for 1 split of iPath Series B Carbon ETNs became effective.
2022-01-01	G-SIBs with UK resolution entities required to meet MREL equivalent to higher of two times Pillar 1 and Pillar 2A requirements or two times leverage ratio requirement or 6.75% of leverage exposures.
2023-01-01	US corporate alternative minimum tax on adjusted financial statements income became effective.
2023-03-07	Second 1 for 4 reverse split of VXX ETNs became effective.
2023-07-23	Third 1 for 4 reverse split of VXX ETNs and first reverse split of VXZ ETNs record date.
2023-10-13	SEC adopted new rules for reporting securities loans and large short positions.
2023-12-13	SEC adopted rule amendments mandating central clearing of certain US Treasury securities transactions.
2024-01-01	Revised deduction regime for indirect subscription of internal MREL instruments applies.
2024-01-24	Third 1 for 4 reverse split of VXX ETNs and first reverse split of VXZ ETNs became effective.
2024-04-24	Amendments to EU EMIR reporting requirements took effect.
2024-05-31	UK anti-greenwashing rule came into force.
2024-07-01	Directive on Corporate Sustainability Due Diligence (CSDDD) entered into force.
2024-07-24	Third 1 for 4 reverse split of VXX ETNs and first reverse split of VXZ ETNs became effective.
2024-08-19	VXX ETNs daily index factor adjusted due to Index rebasing.
2024-09-18	SEC amended rules under Regulation NMS for variable minimum pricing increments.
2024-10-01	Barclays Group submitted its full US Resolution Plan.
2024-10-18	EU's NIS2 Directive applies.
2024-10-25	Palomino Limited became fully consolidated.
2024-12-03	SEC extended compliance dates for large short position reporting and securities lending reporting.
2024-12-20	SEC adopted amendments to broker-dealer customer protection rule for daily reserve computations.
2024-12-24	EMIR 3 amendments came into force.
2025-01-01	IFRS 9 transitional arrangements no longer applied. PRA amendments to resolution rules took effect. New York Department of Financial Services (NYDFS) amended cybersecurity regulation requirements went into effect.
2025-01-21	Barclays Bank Ireland PLC announced plan to re-domicile to Paris.
2025-02-02	EU AI Act literacy obligations and first set of prohibitions applied.
2025-02-03	Barclays Bank Ireland PLC completed the sale of its German consumer finance business to BAWAG P.S.K.
2025-02-09	Barclays Bank PLC Board of Directors approved the financial statements.
2025-02-10	Barclays PLC to announce new financial and operational targets through to 2028.
2025-03-01	Nigel Higgins appointed as a member of the Board Remuneration Committee.
2025-05-01	NYDFS cybersecurity regulation requirements for automated scans, access privileges, and threat monitoring went into effect.
2025-06-01	Mary Mack appointed to the Board.
2025-06-16	Outstanding 4.75% Euro non-cumulative callable preference shares were redeemed and cancelled.
2025-06-19	UK's Data (Use and Access) Act 2025 (DUAA) became law.
2025-07-01	UKRF amended to become a sectionalized scheme, creating Barclays Bank Section and Barclays UK Section.
2025-07-15	FCA to start regulating 'buy now pay later' lending.
2025-08-01	EU Artificial Intelligence Act (EU AI Act) entered into force.
2025-08-02	EU AI Act rules on general purpose AI models applied.
2025-08-22	Barclays USCB entered into an exclusive co-branded credit card partnership with GM.
2025-09-01	New offense of failing to prevent fraud under ECCTA came into force.
2025-09-12	Most provisions of the EU's Data Act (Regulation (2023/2854) came into effect.
2025-10-07	FCA began consulting on an industry-wide compensation scheme for motor finance customers.
2025-10-23	Aunoy Banerjee stepped down as BBPLC Chief Financial Officer.
2025-11-01	NYDFS cybersecurity regulation requirements for multi-factor authentication and asset inventory became effective.
2025-11-12	UK Cyber Security and Resilience Bill introduced to Parliament.
2025-11-13	India's Digital Personal Data Protection Rules, 2025 published.
2025-11-27	FSB published an update to its list of G-SIBs, maintaining 1.5% G-SII buffer for Barclays Group.
2025-12-01	CARB confirmed no enforcement action against entities not submitting climate-related financial risk reports by January 1, 2026 deadline.
2025-12-02	FPC published its assessment of appropriate capital requirements for the UK banking system.
2025-12-03	PRA published a policy statement (PS25/25) and supervisory statement (SS5/25) on managing climate-related risks.
2025-12-12	FCA published policy statement (PS25/23) on tackling non-financial misconduct in financial services.
2025-12-13	SEC adopted rule amendments for central clearing of US Treasury securities transactions.
2025-12-24	EMIR 3 amendments came into force.
2026-01-01	Amendments to PRA rules for step-in risk take effect. UK's Pillar Two rules applied. PRA amendments to Own Funds and Eligible Liabilities (CRR) Part and Definition of Capital Part of the PRA Rulebook take effect. SEC extended compliance dates for large short position reporting to January 2, 2028 and for securities lending reporting to September 28, 2028.
2026-01-26	Implementation date for targeted amendments to UK EMIR reporting framework.
2026-02-09	Barclays Bank PLC Board of Directors approved the financial statements.
2026-02-10	Barclays PLC to announce new financial and operational targets through to 2028.
2026-03-01	New FCA rule explicitly covering bullying, harassment and violence comes into force.
2026-05-06	Mary Francis to retire from the Board.
2026-06-30	Colorado Consumer Protections for Artificial Intelligence Act effective date. SEC broker-dealer customer protection rule for daily reserve computations compliance date.
2026-07-15	FCA to start regulating 'buy now pay later' lending.
2026-11-01	SEC extended compliance timelines for Regulation NMS amendments regarding minimum pricing increment and access fee caps.
2027-01-01	Implementation date for Basel 3.1 standards extended. CRD VI changes expected to enter into force in majority of jurisdictions. EU's Anti-Money Laundering Regulation (EU) 2024/1624 most provisions in force.
2027-04-01	CFPB's Required Rulemaking on Personal Financial Data Rights first set of requirements take effect.
2027-10-25	Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 will introduce new regulated activities.
2027-12-31	UK temporary recognition regime for non-UK CCPs extended until this date.
2028-01-01	Implementation of FRTB-IMA delayed to this date.
2028-01-02	SEC extended compliance dates for large short position reporting.
2028-09-28	SEC extended compliance dates for securities lending reporting.
2029-07-01	CSDDD obligations will apply after transposition into national laws on a phased basis from this date.
2030-01-01	Full implementation of Basel 3.1 standards by this date.
2036-06-12	iPath Bloomberg Commodity Index Total ReturnSM ETNs maturity date.
2043-03-18	iPath Select MLP Exchange-Traded Notes maturity date.
2048-01-23	iPath Series B S&P 500 VIX Short-Term FuturesTM ETNs and Mid-Term FuturesTM ETNs maturity date.
2049-09-08	iPath Series B Carbon Exchange-Traded Notes maturity date.

Recommendation

hold

Barclays Bank PLC demonstrated strong profit and income growth in 2025, driven by robust performance across its key business segments and strategic initiatives. The company maintains solid capital and liquidity ratios, indicating financial stability. However, the increase in credit impairment charges, rising operational losses, and a complex, evolving regulatory and legal landscape (including significant provisions for motor finance redress and ongoing litigation) present notable headwinds. While strategic investments in digital transformation and AI are positive for long-term growth, the associated risks and implementation challenges warrant caution. Given the mixed financial performance with increased provisions and the uncertain outcomes of various legal and regulatory matters, a 'hold' recommendation is appropriate for seasoned investors, suggesting continued monitoring of these factors before making further investment decisions.

Keywords

Banking, Financial Services, SEC Filing, 20-F, Annual Report, Credit Risk, Market Risk, Operational Risk, Capital Adequacy, Liquidity, Net Interest Income, Impairment Charges, Corporate Governance, Regulatory Compliance, Climate Risk, AI, Cybersecurity, Legal Proceedings, Dividends, Subordinated Liabilities, ETNs

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