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It’s been a bumpy year for stock markets, and it’s been a bumpy year for Barclays (LSE: BARC) shares, too.
Things look set fair at the start of 2026, but the Iran war has thrown everything into turmoil. Despite that, the FTSE 100 has held up pretty well. It’s up 5.7% since the start of the year.
By contrast, the Barclays share price is down 5.2%. That would have reduced a £9,999 investment on 1 January to £9,479 today. That’s disappointing, but long-term investors can’t really complain after its astonishing recent run. The Barclays share price is still up 145% over five years. Dividends are on top.
The stock was bound to take a breather at some point. Is this a buying opportunity for long-term investors?
How much money is this bank making?
Underlying full-year pre-tax profits have risen nicely in the last couple of years, as my table shows. They were a bit up-and-down before that.
- 2025 – £9.1bn
- 2024 – £8.1bn
- 2023 – £6.6bn
- 2022 – £7.0bn
- 2021 – £8.4bn
Q1 2026 results (April 28) showed a more modest 3% increase in profits to £2.8bn. The income is still rolling in, but the bank was hit by higher costs and a £228m impairment charge from the collapse of UK shadow bank Market Financial Solutions. In total, Barclays set aside £823m for bad debts. If shadow banking problems worsen or the Iran war triggers a global recession, that figure could climb higher.
Barclays may have a US investment banking arm and be expanding in the Middle East, but it still makes half of its money in the good old UK. Our sluggish economy is therefore a problem too.
Despite current uncertainty, Barclays still expects to return more than £15bn to shareholders between 2026 and 2028. Much of that will come from share buybacks, but it will pay dividends too. The forecast yield is 3.4% for 2026, rising to 4.1% next year.
Is now a good time to buy the stock?
Today, the bank looks good value with a forward price-to-earnings ratio of 8.6. Personally, I think recent volatility has thrown up an opportunity to buy FTSE 100 banks generally. I leapt on both NatWest and HSBC earlier this month, after their shares dipped on disappointing (but not actually that bad) quarterly results.
Both are up more than 5% since, so I’ve had a quick early reward, although my plan is to hold them for decades. Frankly, if I wasn’t beginning to worry that I was over exposed to the sector (I also hold Lloyds) then I would fill my boots with Barclays right now. While there are always risks, I just think this looks like one of the most compelling opportunities in the FTSE 100 today.
Over the years, investors can look forward to share price growth, dividend income, and buybacks. No doubt, there will be ups and downs along the way. Following the financial crisis, no investor will breathe easily around the banks. But I’ll be watching Barclays closely and waiting for an opportunity to buy it, once I get more cash in my trading account.
Should you invest £5,000 in Barclays Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays Plc made the list?
Harvey Jones owns shares in HSBC, Lloyds, and NatWest.
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