The outfit yesterday published its annual accounts, which revealed that additional amount has been ring-fenced alongside the £90m it set aside last year.
It means that the banking giant has now dedicated an eye-watering £325m to compensating motor finance customers under the FCA’s proposed redress scheme.
Barclays said it considers it ‘more likely than not’ that the compensation scheme – which is expected to be set out in the coming weeks – will be implemented by the FCA.
Barclays pulled out of the motor finance sector in 2019 with finance director, Anna Cross, previously admitting that the bank only had a ‘relatively low market share’ in the ‘low single digits’.
Elsewhere in the accounts, the firm generated a pre-tax profit of £9.1bn for 2025 – a 13% increase on the £8.1bn it made in 2024.
Income from all its divisions increased, with total group income jumping by 9% year-on-year to £29.1bn.
Barclays said it wants to hand out more than £15bn to shareholders between 2026 and 2028 through dividends and share buybacks.
Meanwhile, the bank told investors it had made cost savings worth £700m during 2025, bringing the total to £1.7bn over two years.
That figure falls slightly short of the sweeping £2bn savings target that the bank set itself at the beginning of 2024 – partially as a result of the car finance scandal.
Reacting to the results, Barclays chief executive CS Venkatakrishnan said: ‘Our progress in the past two years provides a strong foundation to deliver more for our customers, clients and shareholders.
‘As we outline in our plan for the next three years, we will invest further to improve customers’ experience and deepen relationships, while harnessing new technology, including AI, to improve efficiency and build segment-leading businesses and drive further growth.’
