Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 536

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 536
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4 |   2023 |   2022 |
| For the year ended 31 December                                                 |     £m |     £m |     £m |
| United Kingdom                                                                 | 13,927 | 13,295 | 14,908 |
| United States                                                                  |  8,614 |  7,911 |  6,176 |

Note: 1 The geographical analysis is based on the location of the office where the transactions are recorded . 3 Net interest income

Accounting for interest income and expenses

Interest income on loans and advances at amortised cost, financial assets at fair value through other comprehensive income, interest

expense on financial liabilities held at amortised cost are calculated using the effective interest method which allocates interest, and

direct and incremental fees and costs, over the expected lives of the assets and liabilities.

The effective interest method requires the Group to estimate future cash flows, in some cases based on its experience of customers’

behaviour, considering all contractual terms of the financial instrument, as well as the expected lives of the assets and liabilities.

The Group incurs certain costs to originate credit card balances with the most significant being co-brand partner fees. To the extent

these costs are attributed to customers that continuously carry an outstanding balance (revolvers) and incremental to the origination

of credit card balances, they are capitalised and subsequently included within the calculation of the effective interest rate. They are

amortised to interest income over the period of expected repayment of the originated balance. Costs attributed to customers that

settle their outstanding balances each period (transactors) are deferred on the balance sheet as a cost of obtaining a contract and

amortised to fee and commission expense over the life of the customer relationship (refer to Note 4). There are no other individual

estimates involved in the calculation of effective interest rates that are material to the results or financial position.

|                                               |    2024 |    2023 |   2022 |
|                                               |      £m |      £m |     £m |
| Cash and balances at central banks            |  11,076 |  10,262 |  2,916 |
| Debt securities at amortised cost             |   2,445 |   2,337 |  1,251 |
| Loans and advances at amortised cost          |  17,836 |  14,742 | 12,125 |
| Fair value through other comprehensive income