Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 593

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 593
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market rate for the profile of the business unit being tested. The risk that these discount rates may not be appropriate is quantified below

and shows the impact of a 100 bps change in the discount rate.

Terminal growth rate: The terminal growth rate is used to estimate the cash flows into perpetuity based on the expected longevity of the

CGU's businesses. The terminal growth rate is sensitive to uncertainties in the macroeconomic environment. The risk that using inflation

data may not be appropriate for its determination is quantified below and shows the impact of 100 bps change in the terminal growth rate.

Allocated capital rate: Tangible equity is allocated based on the level of risk weighted assets (RWAs) and capital required to be deployed in

the CGU which is dependent on the relative risk of businesses. The capital ratio used in determining the level of tangible equity allocated to

the CGU and its capital cash flows could move over time. The impact of a 50 bps increase in capital ratio is quantified below.

The sensitivity of the value in use to key judgements in the calculations for certain CGUs holding goodwill balances is set out below:

| Cash generating unit              |                        Carryingvalue |                            Value inuse |   Value inuseexceedingcarryingvalue | Discountrate | Terminalgrowthrate | Reduction in headroom |           |      |        | Change required to reduce headroom to zero |      |     |       |
| 100 bpsincreasein thediscountrate | 100 bpsdecreasein terminalgrowthrate | 50 bpsincrease toallocatedcapital rate | 10%reduction inforecastedcash flows | Discountrate | Terminalgrowthrate |  Allocatedcapitalrate | Cashflows |      |        |                                            |      |     |       |
|                                   |                                   £m |                                     £m |                                  £m |            % |                  % |                    £m |        £m |   £m |     £m |                                          % |    % |   % |     % |
| Personal Banking                  |                               11,457 |                                 13,107 |                               1,650 |         19.2 |                2.0 |                -1,106 |      -759 | -352 | -1,513 |                                        1.6 | -2.4 | 2.3 | -10.9 |
| BarclaycardConsumer UK            |                                2,212 |