Barclays has beaten expectations in its Q4 2024 financial results, with total income reaching £7bn.

The bank beat its income expectations by £300m, while its profit before tax in the final quarter was also ahead of estimates of £1.3bn, reaching £1.7bn.

Across the year, Barclays’ return on tangible equity (RoTE) reached 10.5%, with profit before tax hitting £8.1bn in 2024, compared to £6.6bn in 2023.

Furthermore, the group reduced its total operating expenses by 1% year-on-year, reaching £16.7bn.

Group chief executive at Barclays, C. S. Venkatakrishnan, said: "In 2024 we met our financial targets, delivering for our customers and clients, with operational and financial performance improvement driven by disciplined execution of the three-year plan.

"This delivered a group RoTE of 10.5% for the year and £3.0bn of capital distributions, including the £1.0bn buyback announced today. Profit before tax increased by 24% to £8.1bn, earnings per share increased 8.3p year-on-year to 36.0p, and tangible net asset value (TNAV) per share increased 26p to 357p."

Looking ahead, the firm has updated its guidance for 2025, with group RoTE set to reach 11%, representing an "important next step in the journey" towards its 2026 targets.

For 2026, Barclays expects group RoTE to be greater than 12%.

Senior equity analyst at Hargreaves Lansdown, concluded:"Early price action for Barclays looks a little harsh after the group set a decent benchmark for the banking sector, closing the year with an impressive final quarter as both its UK and investment banking arms delivered. Credit quality remains solid, with loan loss rates comfortably below target, and while there was a dip in the final quarter, stripping out the higher-risk business from the Tesco deal shows that credit performance actually improved.

"The £1bn buyback taps into its strong capital position, and with £10bn expected to be returned to shareholders between 2024 and 2026, there’s enough on offer to keep markets happy. The only minor downside was the lack of guidance upgrades, but overall, investors should be pleased with these results, the immediate price reaction likely a result of the strong run up coming into results."

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