Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 433

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 433
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co Bank acquisition, partially offset by ( £6.3 bn) reclassification of a co-branded card portfolio to assets held for sale and ( £3.2 bn) sale of Italian mortgages business. Maximum exposure The Group’s net exposure to credit risk increased 4.3% to £1,074 bn ( 2023 : £1,030b n) which is mainly driven by £20bn increase in loan commitments, £18bn debt securities issued by government and £11bn cash collateral and settlement balances . Overall, the extent to which the mitigation is held against its total exposure has remained stable at 42% ( 2023 : 42% ). Credit quality Delinquencies were broadly stable across the group with an anticipated increase in US cards. A range of activities are in place to protect our existing defensive positioning against macroeconomic headwinds. The Corporate loans portfolio benefited from high-quality exposure and credit protection.

| Further analysis on the credit quality of assets ispresented in the approach to management andrepresentation of credit quality section. |

Stage decomposition A net decrease of £2.5b n is observed in Stage 2 gross exposure driven by an improved GDP forecast along with repayments in Business Banking and reclassification of a co-branded card portfolio to assets held for sale . Stage 3 balances have increased to £7.4b n ( 2023 : £7.2b n) driven by stage migration in corporate loans and US cards partially offset by sale of Italian mortgages business.

| Refer topages246to247for further details. |

Scenario The economy is gradually recovering and is further stimulated as restrictive monetary policy continues loosening. For Q424, macroeconomic scenarios have been refreshed and are designed around a broad range of economic outcomes. The Downside 2 (DS2) scenario has been broadly aligned to Barclays 2024 Internal Stress Test (IST24) which includes climate drivers.

| Refer to the Barclays resilience to climate scenarios onpage57for further details. |

ECL Impairment allowances on loans and advances at amortised cost including off- balance sheet decreased to £5.5b n ( 2023 : £ 6.3 bn) primarily driven by sale of Italian mortgage business , reclassification of co- branded card portfolio to assets held for sale and an improved macroeconomic outlook, partially offset by the acquisition of Tesco Bank . As a result, on-balance sheet coverage decreased 20 bps to 1.2% ( 2023 : 1.