Company: BCS
Filing Date: 2025-07-29
Form Type: 6-K
Source: 0001654954-25-008608
Chunk: 27

Company: BARCLAYS PLC
Filing Date: 2025-07-29
Form: 6-K
Chunk 27
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 economic instability; and secondly, model uncertainty: to capture the impact from model limitations and sensitivities to specific macroeconomic parameters which are applied at a portfolio level.

The Group continues to monitor the heightened uncertainty in the near-term macroeconomic outlook, especially in the US. The broadening range of outcomes coupled with volatile geopolitical scenarios suggest that a greater weighting than that used in the modelled ECL output should be applied to the Group's Downside scenarios to reflect the macroeconomic uncertainty. In response, an uncertainty PMA of £87m (£70m net of SRT credit protection) has been introduced during the year. This adjustment reflects a point in time impact based on the balance sheet as at 30 June 2025 for the uncertainty around macroeconomic variables. It does not factor in future changes in customer utilisation or management actions the Group might take to mitigate credit risk.

The total economic uncertainty adjustments as at 30 June 2025 is £154m (December 2024: £78m) and primarily includes:

Customer and client uncertainty provisions of £128m (December 2024: £53m):**

●

Retail mortgages (UK) £11m (December 2024: £11m): This adjustment reflects the risk of borrowers refinancing onto higher rates in the medium-term

●

Retail credit cards (ROW) £30m (December 2024: £nil): This adjustment is introduced during the year to provide for the elevated US macroeconomic uncertainty

●

**Corporate loans:**

-

UK £43m (December 2024: £42m): This adjustment reflects the possible cross default risk on Barclays’ lending in respect of clients who have taken bounce back loans

-

**ROW £44m (December 2024: £nil): This adjustment is introduced during the year to provide for the elevated US macroeconomic uncertainty

Model uncertainty provisions of £25m (December 2024: £25m):**

●

Retail mortgages (UK) £25m (December 2024: £25m): This adjustment remediates the higher recovery expectations impacted by model over-sensitivity to certain macroeconomic variables

#### Other adjustments
**Other adjustments are operational in nature and are expected to remain in place until they can be reflected in the underlying models. These adjustments result from data limitations and model performance related issues identified through model monitoring and other established governance processes.

Total other adjustments of £14m (December 2024: £150m) includes:

Adjustments for definition of default