*

First-half profit of 5.2 billion pounds beats analyst

forecasts

*

Bank announces buybacks and dividends worth 1.4 billion

pounds

*

Investment bank income up on trading frenzy from Trump

tariff

turmoil

(Adds share price and analyst reaction, more on investment bank

performance in paragraphs 11-16)

By Lawrence White and Stefania Spezzati

LONDON, July 29 (Reuters) - Barclays' ( BCS )

first-half profit rose by a better-than-expected 23%, the

British bank said on Tuesday, as its markets business reaped

bumper returns from the frenzied trading activity sparked by

U.S. President Donald Trump's trade tariffs.

Pretax profit for the January-June period totalled 5.2

billion pounds ($6.9 billion), above analysts' average forecast

of 4.96 billion pounds.

The bank also announced an expected share buyback of 1

billion pounds and a half-year dividend of 3 pence per share,

equating to 1.4 billion pounds of total capital distributions to

shareholders, up 21% from the year before.

The earnings update from the Britain and U.S.-focused lender

saw its investment bank lift overall returns, even as it shifts

spending away from that unit to refocus on its domestic retail

and corporate banking business.

"We remain on track to achieve the objectives of our

three-year plan, delivering structurally higher and more stable

returns for our investors," CEO C. S. Venkatakrishnan said in

the statement.

The bank's results were overall ahead of expectations and

showed its 2026 target for a greater than 12% return on tangible

equity looks increasingly achievable, Jonathan Pierce, analyst

at Jefferies, said.

Barclays ( BCS ) shares rose 0.2% in early trading, in line with

slim gains in the benchmark FTSE 100 index.

The lender also said the financial impact of Britain's probe

into how banks disclosed motor finance commissions could be

"materially different" to the 90 million pounds it has already

provided for.

Lenders are awaiting the outcome of a Supreme Court ruling

on the probe, due on Friday.

INVESTMENT BANK BOOST FROM TURBULENT TRADING

Barclays' ( BCS ) results followed Wall Street rivals such as

Goldman Sachs ( GS ) which reported bumper second quarter

earnings, as turbulent markets boosted trading.

The British bank's equities income rose 25% compared with an

average 18% gain for the top five U.S. banks according to a

Reuters calculation based on company statements.

Barclays ( BCS ) said revenue from trading fixed income, currencies

and commodities, its traditional strength, grew 26%, against an

average 14% increase for those rivals Bank of America ( BAC ),

Citigroup ( C/PN ), JPMorgan ( JPM ), Goldman Sachs ( GS ) and

Morgan Stanley ( MS ).

Investment banking fee income from advising on deals fell

16% for Barclays ( BCS ), compared with a 13% average gain for its Wall

Street competitors.

($1 = 0.7492 pounds)