Barclays' investment banking unit faces scrutiny as new targets loom ahead of Q3 update

Barclays’ investment banking arm contributed 44% of group revenue last year, buoyed by trading gains during periods of market turbulence. Venkatakrishnan’s restructuring plan calls for a smaller, more profitable division, with a target to bring its return on tangible equity in line with the group’s 12% benchmark and to lower its proportion of risk-weighted assets. The unit posted an 11% year-on-year income rise to £8bn in the first half of 2026, driven by a 45% jump in equities revenue in Q2.

Cost efficiency improved, with the division’s cost-to-income ratio falling to 54% in the first half. Analysts will assess whether the bank can sustain these gains and meet the longer-term ambition of a 14% RoTE by 2028 during the third-quarter briefing.