Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 380

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 380
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 to a weak market. Moderate stress has been experienced in the Group's (predominantly) US office commercial real estate exposure during 2024. As structural shifts in working patterns, such as the normalisation of ‘hybrid’ working, mature, the Group remains exposed to further stress. Landlords serving business tenants whose income is based on discretionary consumer spending are also at risk from reduced rent collection. • Leveraged Finance Underwriting: the Group takes on non-investment grade underwriting exposures, including single name risk, particularly in the US and the UK. A more constructive market tone has been seen in 2024 with continued resilience on the demand side providing opportunity to distribute positions. This environment exists, however, against a backdrop of increased geopolitical risks that, were they to materialise, could adversely impact the Group's ability to distribute its committed exposures without incurring losses. • Oil & Gas sector: high energy market prices during 2024 have helped restore balance sheet strength to companies operating in this sector. In the short term, the sector is vulnerable to geopolitical shifts impacting supply and demand. In the longer term, costs associated with the transition to renewable sources of energy may place greater financial demands on oil and gas companies. • Air Travel: the sector has benefited from strong travel demand as it recovered from the COVID-19 pandemic . However, there remains a heightened risk to the revenue streams of the Group’s clients and, consequentially, their ability to service debt obligation. These risks stem from the structural decline in higher margin business travel, consolidation within the European airline market, volatile oil prices, delays in the supply of aircraft, increasingly extreme weather patterns and concerns about the impact of air travel on climate change. • Information Technology sector: companies may struggle to monetise their product offerings and face increasing reputational risk particularly as regulatory scrutiny increases. Given the nature of their activities, the Group’s clients in this sector face heightened risk from data security breaches and ransomware and/or cyberattacks as well as from the malicious use of AI, all of which could negatively impact their ability to service debt obligations.

| Strategy                                         | Shareholderinformation | Climate andsustainability report | Governance |     | Riskreview | Financialreview | Financialstatements |     | Barclays PLC 2024Annual Reporton Form 20-F | 201 |
| Material existing and emerging risks (continued) |                        |                                  |            |     |            |                 |                     |     |                                            |     |

The Group also has large individual exposures to single name counterparties (such as brokers,