Barclays has delivered what it described as "another solid quarter" in Q1, as it recorded a 13.5% return on tangible equity (RoTE) and double-digit returns in all its businesses.

The bank reported that a 3.7% increase in its profit before tax, which totalled £2.8bn in the three months to 31 March, while its group income rose by 6% to £8.2bn.

Barclays added that its operating costs increased by 2% to £4.4bn, which reflected further investment, spend, business growth and inflation, although this was partially offset by £200m of cost efficiency savings and FX movements.

Meanwhile, its earnings per share rose by 8% year-on-year to 14.1 pence, while the bank announced its intention to initiate a share buyback of up to £500m, following the completion of its £1bn share buyback.

However, the bank has had to set aside litigation and conduct charges of £100m, primarily reflecting an increase in the provision of the FCA’s motor finance redress scheme.

In its outlook, Barclays expects its group RoTE to be greater than 12% by the end of its current financial year, with plans to return at least £10bn of capital to shareholders between 2024 and 2026.

Furthermore, its total group income is set to reach around £31bn in the current year.

In its 2028 targets, the bank is targeting RoTE of more than 14%, with plans to return £15bn to shareholders between 2026 and 2028. Its income is also set to be greater than 5% compound annual growth rate between 2025 and 2028.

Head of markets at AJ Bell, Dan Coatsworth, has described the bank’s results as “fine but not fantastic”.

He concluded: "As is common with the banking sector, there were a few nasty surprises to remind the market that not everything goes in the industry’s favour.

"A £105m increase in the motor finance provision was a memo that the compensation scheme is still a moving feast. Barclays even warns that the ultimate financial impact of the event could still differ from current estimates.

"The bank has also set aside £823m for bad debts, partially related to a fraudulent customer within its investment bank. This is an increase from a £643m provision in its first quarter results a year ago and is thought to be linked to the collapse of UK property lender Market Financial Solutions – though this is not confirmed in Barclays’ results."

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