Barclays’ pre-tax profits surged by almost one-third to £3.3bn in the second quarter as traders reaped gains from market volatility. Revenues rose to £8.3bn, up more than £1bn from last year and ahead of analysts’ estimates. Investment banking revenues increased by a fifth, driven by equities income trading up 45 per cent, while advisory and underwriting fees jumped 32 per cent.

Chief executive CS Venkatakrishnan upgraded the group income target for 2026 by about £500mn to £31.5bn. However, analysts responded muted, noting UK divisions fell short on net interest income amid deposit margin pressure. Citigroup analyst Andrew Coombs said results were “likely to disappoint” with weaker performance across three UK businesses. Shares fell 4.9 per cent in early trading.

Impairment charges increased to £571mn in Q2 versus £469mn a year earlier, with half-year impairments up 25 per cent, reflecting losses from corporate bankruptcies including Market Financial Solutions. The private bank and wealth management division weighed on results, generating 26.9 per cent return on tangible equity versus 31.9 per cent a year earlier.