Barclays set for investment bank boost as Venkat’s overhaul in focus

Barclays is set to unveil a strategy update, in which the overhaul of its investment banking division by Samuel Venkat is expected to take center stage. The restructuring aimed at making the bank "simpler, better and more balanced" has been a point of focus for investors, who are keen on hearing about its progress.

Venkat's initial plans focused on reducing the investment bank's revenue contribution to the group, with the target of reducing its share from 44% in 2023 to a smaller portion. However, geopolitical tensions and market volatility have hindered this progress. In fact, the investment bank's income surged 48.4% to £8bn in the first half of 2026, driven by equities income, which rose 45% to £1.3bn in the second quarter alone.

Despite the challenges, Venkat has been successful in tightening the bank's balance sheet. His target has been to bring return on tangible equity (RoTE) for the investment bank in line with the broader group, which is currently at 12%. The RoTE for the investment bank has improved significantly over the past few years, reaching 15.5% in the first half of 2026, up from 10.6% in 2025.

Looking ahead, Venkat aims to raise RoTE to above 14% by 2028. Additionally, he plans to reduce the investment bank's risk-weighted assets (RWA) to around 50% by the end of 2026, which will boost its stock price and free up capital for returns. Barclays has also pledged to return over £15bn to shareholders through dividends and buybacks by 2028, which is expected to further improve the bank's share price.

Analysts believe that Barclays and UBS are set to be the outperformers among European banks in the third quarter, with Barclays' revenue momentum expected to remain robust. However, the investment bank's dominance in terms of RWA could steal the spotlight during the Q3 update, testing Venkat's ability to stick to his long-term targets amidst global instability.