Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 366

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 366
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 to funding, widen credit spreads and have a material adverse impact on the Group’s interest margins and liquidity position; and/or • A market-wide widening of credit spreads or reduced investor appetite for the Group’s debt securities, which could negatively impact the Group’s cost of and/or access to funding. In addition to subdued economic growth, other risk factors could adversely affect the business environment in which the Group operate s: • E conomic activity is becoming increasingly dependent on data, technology, networks, infrastructure and cybersecurity, heightening the risk and potential impact of service disruptions , either accidental or driven by bad actors such as cybercriminals or states using asymmetric tactics. • Financial institutions are often perceived to have a role in global developments or events like climate change, digitalisation, conflict in the Middle East, fraud, money laundering and sanctions, which give rise to reputational risks which are complicated to navigate. • Recent disruptions to global supply chains, including as a result of the Covid-19 pandemic, semi-conductor shortages, the Russia-Ukraine conflict, the Red Sea freight disruptions and the Panama Canal drought have all had an impact and underlined the potential for further adverse impacts on the markets in which the Group operates . Further geopolitical deterioration, in particular in the Middle East and/or South China Sea and trade war related de-coupling of production chains could also have a negative impact on the markets in which the Group operates. • Diverging financial, conduct and prudential regulations between the jurisdictions where the Group operates increase the complexity and costs of complianc e. In particular, increasing uncertainty and regulatory divergence between different jurisdictions relating to climate risk will add complexity and increase costs for compliance against varying regulatory expectations whilst also making it difficult for the Group to effectively and consistently manage stakeholder expectations and climate risks across its portfolios. The circumstances mentioned above could have a material adverse effect on the Group’s business, results of operations, financial condition, prospects, liquidity, capital position and credit ratings (including potential credit rating agency changes of outlooks or ratings), as well as on the Group’s customers, clients, employees and suppliers. ii) The impact of interest rate changes on the Group’s profitability The impact from changes to interest rates are potentially significant for the Group , especially given the uncertainty as to the size and frequen cy of s uch changes, particularly in the Group’s main markets of the UK, the US and the EU. Lower interest rates could put pressure on the Group’s net interest margins (the difference between lending income and borrowing costs ) due to either a delay