Company: BCS
Filing Date: 2025-02-13
Form Type: 6-K
Source: 0001654954-25-001446
Chunk: 33

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 6-K
Chunk 33
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532 |

| 1 | Model exposure and ECL reported within Retail credit cards and      
 Retail Other excludes the German consumer finance business, sale of 
 which completed after the balance sheet date. Model exposure and    
 ECL reported within Retail credit cards and Corporate loans         
 continues to include a co-branded card portfolio, as its sale is    
 expected to close in 2026.                                          |
| 2 | Model exposures are allocated to a stage based on an individual     
 scenario rather than a probability-weighted approach as required    
 for Barclays reported impairment allowances. As a result, it is not 
 possible to back solve the final reported weighted ECL from         
 individual scenarios given balances may be assigned to a different  
 stage dependent on the scenario.                                    |
| 3 | Model exposures allocated to Stage 3 does not change in any of the  
 scenarios as the transition criteria relies only on an observable   
 evidence of default as at 31 December 2024 and not on macroeconomic 
 scenario.                                                           |
| 4 | Material corporate loan defaults are individually assessed across   
 different recovery strategies. As a result, ECL of £461m is         
 reported as an individually assessed impairment in the              
 reconciliation table.                                               |
| 5 | ECL from non-modelled exposures and                                 
 others includes ECL on Tesco's retail banking business of           
 £209m calculated using a                                            
 benchmarked approach based on UK cards and UK retail loans. The     
 sensitivity of the non-modelled exposures would materially reflect  
 the sensitivity of the benchmarked model.                           |

The use of five scenarios with associated weightings results in a total weighted ECL uplift from the Baseline ECL of 1.3%.

Retail mortgages: Total weighted ECL of £24m represents a 14.3% increase over the Baseline ECL (£21m) with coverage ratios remaining steady across the Upside scenarios, Baseline and Downside 1 scenario. Under the Downside 2 scenario, total ECL increases to £63m driven by a fall in UK HPI.

Retail credit cards: Total weighted ECL of £3,633m is broadly aligned to the Baseline ECL (£3,620m). Total ECL increases to £3,995m under the Downside 2 scenario, driven by an increase in UK and US unemployment rate.

Retail other: Total weighted ECL of £207m represents a 2.5% increase over the Baseline ECL (£202m). Total ECL increases to £271m under