Barclays Stock And UK Financials That Could Gain From Higher Interest Rates

Energy prices are surging, UK growth forecasts are being cut and interest rates are now expected to move higher instead of lower. That mix can hurt borrowers, but it can also reshape how banks and diversified financials make money from lending, deposits and fees. This article walks through three UK-listed stocks from our higher-rate screener that look closely tied to these shifts, and explains why their exposure to the latest news matters for your portfolio decisions.

The three stocks covered next are only a sample, and the full screen surfaced 15 more UK banks and diversified financials with similarly detailed interest rate stories that are not included here. To identify which mix of lenders, asset managers and payment groups best fits your own thesis, analyze the full UK Banks and Diversified Financials Benefiting from Higher Interest Rates screener through the UK Banks and Diversified Financials Benefiting from Higher Interest Rates screener.

Barclays (LSE:BARC)

Overview: Barclays is a large UK-based universal bank that earns money from high-street lending, cards, mortgages, deposits and global investment banking.

Operations: Revenue is concentrated in Barclays Investment Bank at £13.5b, with Barclays UK contributing £8.6b and the US Consumer Bank £2.6b.

Market Cap: £56.1b

Barclays sits near the front of this higher-rate theme, because a sizeable UK lending and deposit franchise feeds directly into net interest margins when policy rates and the yield curve shift.

"The first concern is Barclays' significant exposure to investment banking and trading income. These businesses are inherently cyclical, and profits can fluctuate considerably depending on market conditions."

What happens to those higher-rate earnings the market expects depends heavily on how one unseen pressure feeds through to future credit costs.

Those credit risks and earnings swings are exactly what the full narrative for Barclays unpacks, highlighting where pressure could be masking stronger underlying momentum.

IG Group Holdings (LSE:IGG)

Overview: IG Group Holdings runs an online trading and investing platform where clients trade derivatives, shares and crypto, and hold investable cash.

Market Cap: £3.2b

IG Group Holdings fits this higher-rate theme through the income it can earn on client money and treasury assets. Its push into new trading formats adds an extra potential growth leg that does not depend solely on UK economic strength.

"The planned acquisition of Underdog and entry into U.S. daily fantasy sports and prediction markets, where Underdog net revenue rose from US$9m in 2021 to US$466m in the 12 months to June 2026 and sector notional volumes are expected to nearly triple in 2026 versus 2025, could expand IG Group Holdings’ addressable market and support higher group revenue over time."

What really matters for IG Group Holdings now is how one future shift in trading activity and client engagement feeds through to margins.

That margin story is only half the picture, and the full narrative for IG Group Holdings shows how accelerating client activity, rate tailwinds and risk controls could reshape IG Group Holdings’ earnings mix.

HSBC Holdings (LSE:HSBA)

Overview: HSBC Holdings is a global bank that provides retail, commercial, corporate and wealth management services, with large UK and Asian franchises.

Market Cap: £221b

HSBC Holdings brings a different flavour to this higher-rate theme because its UK deposit base links directly to policy moves. At the same time, its Asian wealth and transaction banking arms add a second engine of fee income that does not rely solely on UK economic strength.

"Intensifying investment in Asian wealth management and private banking remains central, with over 1 trillion US dollars of Asian wealth balances and strong net new money in Hong Kong and India."

What really shapes HSBC Holdings’ rate story from here is how one pressure on funding costs and deposit mix filters through to future margins.

That pressure makes HSBC Holdings’ rate story more interesting, and the full narrative for HSBC Holdings maps how funding costs, Asian wealth and earnings resilience could be quietly decoupling from UK headlines.

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