Barclays has reported a significant 12% rise in its annual profit for 2025, reaching £9.1 billion as the bank pivots toward aggressive cost-cutting and artificial intelligence integration. The British banking giant simultaneously unveiled a massive plan to return at least £15 billion to its shareholders over the next three years while accelerating a shift of operations to India. This financial performance, which aligns with analyst expectations, marks a central point in Chief Executive C.S. Venkatakrishnan’s long-term strategy to modernize the institution and improve overall returns.
The reported pre-tax profit of £9.1 billion is a notable increase from the £8.1 billion recorded the previous year. Total income for the bank also saw a climb, reaching £29.14 billion in 2025 compared to £26.79 billion in 2024. These results were bolstered by a strong domestic presence and an investment banking arm that continues to provide substantial, though sometimes volatile, earnings for the group.
Massive Payouts and New Performance Targets
Following the profit beat, Barclays announced a major capital return program intended to distribute at least £15 billion to investors between 2026 and 2028. For the immediate term, the bank has authorized a £1 billion share buyback and a final dividend of 5.6 pence per share. This brings the total capital distribution for the 2025 financial year to approximately £3.7 billion, meeting the high expectations set by City analysts.
The bank’s leadership has also raised its performance benchmarks, signaling confidence in its ability to generate higher returns in the coming years. Barclays now targets a return on tangible equity—a key measure of profitability—of more than 14% by 2028. This is an upgrade from the previous goal of 12% which had been set for the 2026 period. Additionally, the bank expects total income to reach £31 billion in 2026, with revenue growth projected to exceed 5% annually through 2028.
Efficiency Drive Through Artificial Intelligence
Central to these ambitious financial goals is a wide-ranging push to utilize artificial intelligence to streamline operations and reduce expenditures. Barclays intends to use AI tools for data analysis, automation, and the generation of public-facing content. This technological adoption is part of a broader objective to slash overall costs by £2 billion as the bank seeks to bring its cost-to-income ratio down into the low 50s within three years.
The bank is focusing heavily on its core domestic market and leveraging technology to replace or enhance traditional roles. CEO C.S. Venkatakrishnan has emphasized that the group is chasing sustainably higher returns through these efficiency gains. By automating routine tasks and using AI for content creation, the bank hopes to improve its profit margins without relying solely on favorable interest rate cycles.
Impact on London Workforce and Offshoring
While the financial results have pleased investors, the shift toward AI and cost efficiency is leading to immediate changes in the bank’s workforce structure. Barclays has placed dozens of jobs at its London headquarters in jeopardy as it moves to offshore specific functions to India. Approximately 50 roles within the bank’s internal advertising division are at risk, with the transition expected to be completed by the end of August 2026.
Specifically, the bank plans to disband its nearly 20-member copywriting team currently based in Canary Wharf. Some staff members from the affected marketing division have already been let go, while others may be offered alternative positions within the organization. This move follows a period of uncertainty for employees who were first briefed on potential restructurings during meetings held in the previous year.
Expanding Operations in India
The roles being cut in London will largely be replaced by a new, larger team based in India. Barclays already maintains a massive presence in the country, employing over 30,000 people across major cities like Mumbai and New Delhi. While the new team in India will have a higher headcount than the previous London group, the bank anticipates that overall staffing costs will decrease due to lower salary requirements in the region.
These new teams in India will not operate in a traditional manner; instead, they will be “AI-augmented”. Staff will be expected to use artificial intelligence to assist in generating advertising copy and other content for the bank’s website and public materials. This combination of offshoring and AI integration represents the latest evolution of the bank’s strategy to maintain a competitive edge while strictly managing its global expenditure.
