London, Feb 27, 2026, 09:17 GMT — Regular session
- Barclays shares fell 1.1% in early trade, lagging a broader UK bank index rise
- A Times report put the bank’s exposure to Market Financial Solutions at about £600 million
- Traders are watching for clarity on potential losses and any knock-on effect on capital returns
Barclays PLC (BARC.L) shares fell in early London trading on Friday after the Times reported the bank faces potential losses linked to the collapse of UK mortgage provider Market Financial Solutions (MFS). By 08:22 GMT, the stock was down 1.1% at 467 pence, underperforming the FTSE 350 bank index, which was up 0.18%; Barclays did not immediately respond to a request for comment. Citi cautioned that “arranging a loan is very different to retaining that risk” on the balance sheet, and said it was not clear if any of the exposure had already been provided for. 1
The issue matters because “exposure” is money a lender could be on the hook for, and even a partial loss can hit bank profits fast if it lands on the balance sheet — the bank’s own assets and liabilities. Provisions are the cushions banks set aside for expected credit losses; investors will be looking for signs the cushion needs to get bigger.
The selloff also stood out against a buoyant UK market backdrop, with the FTSE 100 having closed at a record high a day earlier. “It is likely that the UK index’s outperformance is here to stay,” Axel Rudolph, a senior financial analyst at IG, said in a note on Thursday. 2
A separate company filing on Friday showed Barclays has continued its share buyback programme, purchasing 3,185,000 ordinary shares on Feb. 26 at prices between 466.95 pence and 474.90 pence, with a volume-weighted average price of 471.2823 pence. The filing said Barclays intends to cancel the shares and has bought 41,431,750 shares in total since the buyback began. 3
Pressure has not been confined to Barclays. Jefferies, another lender flagged in market chatter around MFS, fell more than 8% at one point on Thursday after Bloomberg reported it had about 100 million pounds of exposure; Jefferies declined to comment and Reuters said it could not independently verify the report. 4
For Barclays, the immediate question is whether the exposure reflects loans it arranged and distributed to others, or risk it kept in-house. That distinction will drive whether the market looks at this as a headline wobble or the start of a larger credit-cost story.
There is a downside scenario. If Barclays ends up holding more of the risk than investors expect — or if recoveries are weaker than assumed — any hit could pressure earnings and test confidence in the pace of capital returns, including buybacks.
Next up, traders will watch for any fresh comment from Barclays or disclosures that clarify the exposure, and for the bank’s next results update on April 28. 5
