Barclays reported full-year 2024 profit before tax of £8.1 billion on Thursday, a 24% increase year-on-year, as the British bank met its 2024 target of a return on tangible equity above 10%, set when it launched its three-year plan in February 2024 and announced a further £1 billion share buyback to be carried out in 2025.
Total income for the year reached £26.8 billion, up 6% year-on-year, with Barclays UK income up 9%, primarily reflecting the £0.6 billion day-one gain from the Tesco Bank acquisition, and Investment Bank income up 7%. The CET1 capital ratio stood at 13.6% at the end of December, within the bank's 13-14% target range, according to results published on Thursday.
TESCO BANK ACQUISITION
The acquisition of Tesco Bank's retail banking business generated a day-one income gain of £556 million on completion on 1 November 2024 (a £347 million net profit before tax impact after a £209 million impairment charge). The day-one gain reflected the difference between the fair value of acquired assets and the consideration paid.
Return on tangible equity of 10.5% met the 2024 target set at the start of the three-year plan, which aims for a RoTE above 12% in 2026.
CAPITAL DISTRIBUTIONS REACH £3 BILLION
Total capital distributions announced in relation to 2024 reached £3.0 billion, comprising total dividends of 8.4p per share (£1.2 billion) and share buybacks of £1.8 billion, including the £1.0 billion buyback announced with the full-year results. Barclays guided to a progressive increase in total capital returns in 2025.