BARCLAYS PLC
For the period ended Dec 31, 2025. Filed Feb 10, 2026.
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The yearly report of a company based outside the US. It covers much of what a 10-K does, and may follow accounting rules other than US ones.
FY2025 · Filed Feb 10, 2026
Contents
Key performance indicators
In assessing the financial performance of the Group, management uses a range of KPIs which focus on the Group’s financial strength, the
delivery of sustainable returns and cost management. KPIs reflect the targets and ambitions followed during 2025.
The Group’s management believes that the non-IFRS performance measures included in this document provide valuable information to the
between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most
directly able to influence or are relevant for an assessment of the Group.
They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by management.
However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the
IFRS measures as well. Refer to the non-IFRS performance measures section for further information and calculations of non-IFRS
performance measures included throughout this section and the most directly comparable IFRS measures.
| Definition | Why is it important and how the Group performed | |
|---|---|---|
| Common Equity Tier 1 (CET1) ratioCapital requirements are part of the regulatory framework governing how banks and depository institutions are supervised. Capital ratios express a bank’s capital as a percentage of its risk weighted assets (RWAs) as defined by the PRA.CET1 ratio is a measure of capital as defined within the Definition of Capital section of the PRA's Prudential and Resolution Policy - Banking Index. | The Group’s capital management objective is to maximise shareholder value by prudently managing the level and mix of its capital to: ensure the Group and all of its subsidiaries are appropriately capitalised relative to their regulatory minimum and stressed capital requirements, support the Group’s risk appetite, growth and strategic options, while seeking to maintain a robust credit proposition for the Group.The CET1 ratio increased to 14.3% (December 2024: 13.6%), as CET1 capital increased by £2.5bn to £51.1bn and RWAs decreased by £1.4bn to £356.8bn. Taking into account the £1.0bn share buyback announced at FY25 Results, the CET1 ratio as at 31 December 2025 would be reduced to 14.0% (at the top-end of the 13-14% target range).Group target: a CET1 ratio in the range of 13-14%.1 | CET1 ratio14.3%2024: 13.6%2023: 13.8% |
| Return on average shareholders’ equity (RoE)RoE is calculated as profit after tax attributable to ordinary shareholders, as a proportion of average shareholders’ equity excluding non-controlling interests and other equity instruments. | This measure indicates the return generated by the management of the business based on shareholders' equity. RoE for the Group was 9.8% (2024: 9.1%, 2023: 7.6%). | Group RoE9.8%2024: 9.1%2023: 7.6% |
| Return on average tangible shareholders’ equity (RoTE)RoTE is calculated as Group attributable profit, as a proportion of average tangible shareholders’ equity. | This measure indicates the return generated by the management of the business based on ordinary shareholders’ tangible equity. Achieving a target RoTE demonstrates the organisation’s ability to execute its strategy and align management’s interests with the shareholders’. RoTE lies at the heart of the Group’s capital allocation and performance management process.The Group performed in line with RoTE guidance in 2025. Statutory Group RoTE was 11.3% (FY24: 10.5%). All divisions delivered double-digit RoTE in FY252025 Group guidance: RoTE of c.11%12026: targeting Group RoTE2 of greater than 12%3 | Group RoTE 11.3% 2024: 10.5%2023: 9.0% |
| Notes:1Group RoTE guidance was updated at Q325 Results, from c.11% to greater than 11%.2Management does not assess forward-looking “return on equity” (target RoE) as a performance indicator of the business, and therefore reconciliation of the forward-looking non IFRS measure “return on tangible equity” (target RoTE) to an equivalent IFRS measure is not available without unreasonable efforts.3Our targets and guidance are based on management's current expectations as to the macroeconomic environment and the business and are subject to change. | ||
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 316 |
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Key performance indicators (continued)
| Definition | Why is it important and how the Group performed | |
|---|---|---|
| Total operating expenses | Barclays views total operating expenses as a key strategic area for banks; those who actively manage costs and control them effectively will gain a strong competitive advantage.Group total operating expenses increased to £17.7bn (2024: £16.7bn). Group operating costs, which exclude litigation and conduct charges and UK regulatory levies, increased to £17.0bn (FY24: £16.2bn), reflecting Tesco Bank run rate and integration costs, further investment spend, business growth, and inflation, partially offset by c.£700m of cost efficiency savings. Litigation and conduct charges of £0.4bn (FY24: £0.2bn), included a £235m charge for motor finance redress in Q325. | Total operating expenses£17.7bn2024: £16.7bn2023: £16.9bn |
| Cost: income ratioTotal operating expenses divided by total income. | This is a measure management uses to assess the productivity of the business operations. Managing the cost base is a key execution priority for management and includes a review of all categories of discretionary spending and an analysis of how we can run the business to ensure that costs increase at a slower rate than income.The Group cost: income ratio was 61% (2024: 62%), in line with our guidance of c.61%, driven by continued cost discipline and positive operating leverage.2025 Group target: a cost:income ratio of c.61%.2026: targeting Group cost:income ratio of high 50s in percentage terms.1 | Cost: income ratio61%2024: 62%2023: 67% |
| Note:1Our targets and guidance are based on management's current expectations as to the macroeconomic environment and the business and are subject to change. | ||
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 317 |
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Consolidated summary income statement
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