Barclays PLC

Furthermore, a weakening U.S. macroeconomy has direct implications on Barclays' U.S. consumer bank (12% of group income in 2024), which could dampen results by impacting its loan growth and loan-loss rate. Nevertheless, we forecast that the group's central profitability target of a return on tangible equity (RoTE) in excess of 12.0% by 2026 remains manageable. This level represents a solid return that gives Barclays good financial flexibility, even if it is materially lower than domestically focused U.K. peers (for example Lloyds or NatWest where we forecast RoTE above 15%) or U.K.-domiciled global banks (HSBC, mid-teens RoTE). The stable outlook indicates that we expect Barclays' credit metrics to remain robust over our two-year horizon. We anticipate that its well-diversified business will

... balance-sheet management support the rating. The bank's strategic and geographical diversification gives the group resilient earnings and supports a material excess capital position. Even as volatility has risen in the past nine months, Barclays' balance sheet has remained resilient: its lending book is stable, its liquidity pool is dominated by central bank reserves, and its funding is granular and well diversified. Barclays' updated strategy and elevated rates underpin a solid earnings outlook, but persistent volatility poses risks. The bank's updated strategic ambitions target sustained growth through to the end of 2026, driven by its U.K. businesses. Barclays posted revenue of ú26.8 billion in 2024, up from ú25.4 billion in 2023, propelled by consistently...

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