By Lawrence White LONDON, Feb 10 (Reuters) – Barclays said its annual profit increased 12% and announced new performance targets out to 2028 on Tuesday, as the British bank aims to improve returns by focusing on its core home market and using technology such as AI to cut costs. The lender reported profit before tax for 2025 of 9.1 billion pounds ($12.45 billion), up from 8.1 billion pounds the year before and broadly in line with than the 9 billion pounds average of analysts' forecasts as compiled by the bank. Barclays also lifted its key profit target, saying it now expects to make a return on tangible equity of greater than 14% by 2028, up from previous guidance of greater than 12% in 2026. The London-based bank said it expected to return more than 15 billion pounds of capital to shareholders between 2026 and 2028. It also announced 1 billion pounds in share buybacks and a 5.6 pence per share final dividend for the year, taking total capital distribution for 2025 to 3.7 billion pounds, in line with analysts' expectations for 3.8 billion pounds. Barclays follows rival Lloyds in setting out more ambitious profit guidance, as British lenders finally put nearly two decades of post-2008 crisis restructuring behind them to benefit from a benign interest rate environment, a more favourable regulatory and economic backdrop and the cost-saving potential of technology. NatWest, which reports earnings on Friday, and HSBC on February 25 are likewise expected to announce more ambitious targets, Reuters reported last month. ($1 = 0.7312 pounds) (Reporting by Lawrence White; Editing by Tommy Reggiori Wilkes)
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