Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 172

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 172
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 analysis of which underpins provisions made for the costs of customer redress. The Committee analyses the judgements and estimates made by management to evaluate the adequacy of the provisions. The Committee reviewed and challenged management&#8217;s approach to conduct provisions throughout the year, including in relation to the review commissioned by the FCA on historical motor finance commission arrangements and any potential related provision. The Committee also sought KPMG&#8217;s views on the timeliness and adequacy of provisioning in relation to conduct matters, as well as the triggers for raising a provision and the appropriateness of any decision to not raise a provision. The Committee was satisfied that management's judgement and approach resulted in an adequate and appropriate level of provision in relation to conduct matters. (refer to Note 23 to the financial statements) Impairment of financial instruments The Committee monitors management's judgements in relation to expected credit losses (ECLs), which are modelled using a range of forecast economic scenarios. Forward-looking models are used which require judgements to be made over modelling assumptions, including: &#8226; the determination of macroeconomic scenarios to be used &#8226; the methodology for weighting of scenarios &#8226; the criteria used to determine significant deterioration in credit quality &#8226; the application of management adjustments to the ECL modelled output. The Committee considered regular reports from management on: &#8226; credit performance across the different businesses &#8226; the impact of the macroeconomic environment, including central bank interest rate decisions, inflation trends and unemployment levels &#8226; the use of post-model adjustments (PMAs), including the retention or release of PMAs &#8226; the refresh of macroeconomic variables and associated weighting. The Committee closely considered management&#8217;s judgement on impairment coverage levels, including in respect of material exposures and the impact of delinquencies in certain areas of the portfolios. The Committee also considered areas of challenge from KPMG on management&#8217;s approach to judgements, including with respect to the use and release of PMAs. As a consequence of the acquisition of Tesco Bank, the Committee reviewed the treatment of the acquired balances. Having considered and scrutinised the reports, the Committee agreed with management&#8217;s conclusion that the impairment provision was appropriate. (refer to Note 8 to the financial statements) Impairment of goodwill and intangibles The Committee considers management's judgement in relation to goodwill and intangibles. The carrying value of goodwill and intangible assets is assessed on the