Barclays Bank PLC # Annual Report ### 31 December 2024 | | | | --- | --- | | | | | Contents | Page | | | | | | | | [Strategic Report](#ia16d0659cd524c01ae655d82fa382c3d_13) | | | Performance review | [1](#ia16d0659cd524c01ae655d82fa382c3d_19) | | [Performance measures](#ia16d0659cd524c01ae655d82fa382c3d_25) | [6](#ia16d0659cd524c01ae655d82fa382c3d_25) | | [Managing risk](#ia16d0659cd524c01ae655d82fa382c3d_40) | [9](#ia16d0659cd524c01ae655d82fa382c3d_40) | | Customer and clients | [12](#ia16d0659cd524c01ae655d82fa382c3d_43) | | Colleagues | [13](#ia16d0659cd524c01ae655d82fa382c3d_46) | | Society | [14](#ia16d0659cd524c01ae655d82fa382c3d_52) | | Section 172(1) statement | [15](#ia16d0659cd524c01ae655d82fa382c3d_55) | | | | | [Governanc](#ia16d0659cd524c01ae655d82fa382c3d_61)e | | | Governance [contents](#ia16d0659cd524c01ae655d82fa382c3d_61) | [17](#ia16d0659cd524c01ae655d82fa382c3d_61) | | [Corporate governance statement](#ia16d0659cd524c01ae655d82fa382c3d_67) | [18](#ia16d0659cd524c01ae655d82fa382c3d_67) | | [Directors’ report](#ia16d0659cd524c01ae655d82fa382c3d_70) | [31](#ia16d0659cd524c01ae655d82fa382c3d_70) | | Schedule to the Directors' report: Sustainability statement | [35](#ia16d0659cd524c01ae655d82fa382c3d_6560) | | [Other governance](#ia16d0659cd524c01ae655d82fa382c3d_79) | [118](#ia16d0659cd524c01ae655d82fa382c3d_79) | | | | | [Risk review](#ia16d0659cd524c01ae655d82fa382c3d_85) | | | [Risk review contents](#ia16d0659cd524c01ae655d82fa382c3d_88) | [121](#ia16d0659cd524c01ae655d82fa382c3d_88) | | [Risk management strategy](#ia16d0659cd524c01ae655d82fa382c3d_91) | [123](#ia16d0659cd524c01ae655d82fa382c3d_91) | | [Material existing and emerging risks](#ia16d0659cd524c01ae655d82fa382c3d_112) | [126](#ia16d0659cd524c01ae655d82fa382c3d_112) | | [Principal risk management](#ia16d0659cd524c01ae655d82fa382c3d_151) | [141](#ia16d0659cd524c01ae655d82fa382c3d_151) | | [Risk performance](#ia16d0659cd524c01ae655d82fa382c3d_184) | [153](#ia16d0659cd524c01ae655d82fa382c3d_184) | | [Supervision and regulation](#ia16d0659cd524c01ae655d82fa382c3d_394) | [233](#ia16d0659cd524c01ae655d82fa382c3d_394) | | | | | [Financial statements](#ia16d0659cd524c01ae655d82fa382c3d_400) | | | [Financial statements contents](#ia16d0659cd524c01ae655d82fa382c3d_403) | [245](#ia16d0659cd524c01ae655d82fa382c3d_403) | | [Consolidated financial statements](#ia16d0659cd524c01ae655d82fa382c3d_418) | [268](#ia16d0659cd524c01ae655d82fa382c3d_418) | | [Notes to the financial statements](#ia16d0659cd524c01ae655d82fa382c3d_439) | [274](#ia16d0659cd524c01ae655d82fa382c3d_439) | | | | | EU Taxonomy tables | [380](#ia16d0659cd524c01ae655d82fa382c3d_8634) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 1 | ## Strategic report ## Performance review The Strategic Report was approved by the Board of Directors on 12 February 2025 and signed on their behalf by the Chairman. ## Performance Review Overview Barclays Bank PLC (BBPLC or the Company) is a wholly-owned subsidiary of Barclays PLC . The consolidation of Barclays Bank PLC and its subsidiaries is referred to as the Barclays Bank Group. The term Barclays refers to either Barclays PLC (BPLC) or, depending on the context, the Barclays Group. The term Barclays Group refers to BPLC together with its subsidiaries. Barclays Bank PLC is the non ring-fenced bank within the Barclays Group. The Barclays Bank Group contains the Barclays UK Corporate Bank (UKCB), Barclays Private Bank and Wealth Management (PBWM), Barclays Investment Bank (IB) and Barclays US Consumer Bank (USCB) businesses. Barclays Bank PLC offers customers and clients a range of products and services spanning consumer and wholesale banking and is supported by the Barclays Group-wide service company, Barclays Execution Services Limited (BX), which provides technology, operations and functional services to businesses across the Barclays Group. Barclays Bank PLC is focused on delivering for customers and clients around the world. Our diversified business portfolio provides balance, resilience and exciting opportunities. Barclays Bank PLC has strong global market positions and continues to invest in people and technology with the aim of delivering sustainable returns. Our structure The 2023 Barclays Bank Group results comprised the reporting segments Corporate and Investment Bank (CIB), Consumer, Cards and Payments (CC&P) and Head Office. In February 2024, Barclays set out an updated business structure. Through our four divisions, UKCB, PBWM, IB and USCB in addition to Head Office, we are organised and operate in a simpler way, delivering greater accountability and transparency, supporting synergies and reflecting the way we serve our customers and clients. | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | Barclays Bank PLC | | | | | | | | | | | | | | | | | | | | | | Barclays UK Corporate Bank | | Barclays Private Bank and Wealth Management | | | Barclays Investment Bank | | Barclays US Consumer Bank | | | | | | | | | | | | | UK Corporate Bank The UK Corporate Bank (UKCB) offers a range of Corporate Lending and Transaction Banking services to clients with an annual revenue of more than £6.5m through to FTSE350 companies. • Corporate Lending: Offers a range of term, revolving, and overdraft facilities to clients across the UK, with financing solutions tailored to specific industry sectors • Transaction Banking: Provides cash management, trade and working capital solutions, risk management solutions and payment services internationally Private Banking and Wealth Management Private Banking and Wealth Management (PBWM) comprises PBWM UK and PBWM International. • Private Banking UK is a full-service proposition for clients with investible assets of £3m+ • Private Banking International is a full-service proposition for clients with investible assets of £5m+ internationally1, with a focus on clients in the Europe, Middle East and Asia wealth corridors • UK Affluent is for UK clients with £250k to £3m of investible assets • UK Digital Investing is for UK self-directed investors, with investment starting from just £1 Investment Bank Investment Bank (IB) provides money managers, financial institutions, governments, supranational organisations and corporate clients with advisory, finance and risk management services. • Barclays’ Global Markets division provides institutional investors, sovereigns and corporates with a full range of execution services, ideas and risk management solutions across asset classes (Equities, Credit, Rates, FX and Securitised Products). The Research team provides institutional investors with data-driven analysis, actionable insights and access to our analysts across global sectors, markets and economies • Barclays’ Investment Banking division partners with companies, governments and financial institutions worldwide to provide expert advice, innovative solutions and access to capital. It includes the International Corporate Bank, which provides the world's largest businesses with wholesale lending and sophisticated treasury solutions - supported by deep industry knowledge and local, on-the-ground specialists Note 1For India, the Private Bank proposition is available for clients with wealth of £3m+. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 2 | ## Strategic report ## Performance review US Consumer Bank US Consumer Bank (USCB) is a leading co-branded credit card issuer and financial services partner in the United States. • Barclays USCB has 20 million customers and partnerships with more than 20 of America’s leading brands across the airline, travel, retail and affinity sectors. • We provide co-branded credit cards, small business credit cards, instalment loans, point-of-sale finance, online savings accounts and certificates of deposits. Head Office Head Office provides centralised services across the Barclays Bank Group. Head Office also contains inorganic transactions announced as part of the FY23 Investor Update. #### The world in which we operate Barclays Bank PLC is driven by a common Purpose: working together for a better financial future. To do so, we must be strong as an institution, prepared for the future, and able to navigate different market conditions and evolving trends. We regularly review our operating environment for emerging trends, and adapt to address them. We are cognisant of those relevant to our industry and have identified three areas we need to be aware of in the execution of our strategy. We continue to make good progress in addressing them: • The impact of technology on banking products and services • The role of capital markets as the principal drivers of global growth • The transition towards a low-carbon economy We reflect the environment in which we operate in the development of our strategy and evolution of our operating model. Barclays' three- year plan, for which Barclays Bank Group is part of, is designed to withstand volatility and uncertainty, and help us to continue to meet the needs of our wider stakeholders - including customers, clients, regulators and shareholders. We actively navigate risk and uncertainty, and are vigilant to deliver for our stakeholders as the environment evolves. Focus areas UKCB a. Driving productivity and seamless digital delivery, simplifying and improving client experience b. Growing broad-based income through deeper client relationships with products and solutions which address their needs c. Growing share of lending and attracting new clients PBWM a. Moving to a simplified business structure, aligned to market opportunity in the UK and internationally, as well as reinvesting cost efficiencies to support growth b. Strengthening the proposition across the UK wealth continuum and the International Private Bank c. Growing assets under management to increase the relative contribution of non-interest income, to deliver high-quality recurring revenue IB a. Monetising our deep client relationships while maintaining prudent risk management b. In Global Markets, sustaining momentum in our businesses with Top 5 market share, growing our next focus businesses and continue scaling more stable financing income c. In Investment Banking, maintaining our historical strength in Debt Capital Markets (DCM) while growing share in Advisory and Equity Capital Markets (ECM) with Financial Sponsor and Corporate clients, and together with the International Corporate Bank, driving growth via coordinated coverage of our clients' Treasury functions USCB a. Scaling and diversifying by growing existing partnerships and winning new partners b. Investing in digitisation to deliver operational efficiencies and enhanced customer experience c. Improving net interest margin by optimising pricing and credit mix, while reducing funding costs d. Selective risk transfer to optimise use of the balance sheet Year in review UKCB The UK Corporate Bank has been described as the ‘beating heart’ of Barclays, given the role it has played in serving clients in the UK for over 330 years and its ability to join together the different aspects of the organisation to deliver for businesses and institutions. Our strong franchise and long-lasting client relationships are reflected in our financial performance, with the UK Corporate Bank delivering a Profit Before Tax of £734m. In 2024, we focused on laying the foundations for transformation with investment in online digitalisation, strategic hiring in line with market opportunity and deepening connections with clients. Against a challenging backdrop, we are pleased with the progress made. We have been proactive in our client outreach, attracting 550 new clients and issuing communications to clients affirming our support and willingness to lend, totalling more than £4.2bn. This focus enabled us to achieve total loan growth of £1bn for the year, after adjusting for perimeter changes with International Corporate Banking. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 3 | ## Strategic report ## Performance review We are deepening relationships with our clients by developing and improving products and services to better meet their needs. In 2024, we completed the implementation and migration of our end-to-end global trade finance solution, Trade360, in the UK. This platform provides clients with greater connectivity and visibility into their trade transactions, allowing them to optimise working capital efficiency, funding and risk mitigation. Using cloud-based functionality for corporate banking clients, we can offer an improved user experience through easy access and real-time integration with essential information, combined with the latest trade solutions as industry-wide digitisation continues to accelerate. We also enhanced our cash management client experience, reducing the average time it takes for clients to open additional accounts. We made improvements to our Virtual Account Management tool, where clients can manage large-scale virtual account operations and achieve comprehensive cash management. Additionally, we’ve increased the number of client interactions that can be self-served, enabling more clients to easily access the support they need. We have enhanced our client experience through the streamlining of processes and a focus on digitisation. This includes faster client onboarding times, such as our new fast-track process for UK-domiciled clients with simple ownership structures. PBWM Private Bank and Wealth Management's vision is to be the investment partner of choice for our clients, their families and the next generation. The strength of our business is reflected in our 2024 performance, with Assets Under Management (AUM) growing 14% and PBWM delivering a Profit Before Tax of £373m. Investing is a fundamental part of wealth creation and growth, and in the UK there is an opportunity to support savers to become investors. Barclays' digital investing service, Smart Investor, is embedded in the Barclays app and has over 331,000 active customers, providing them access to 8,500 different securities and funds including ready-made investments. Over the past year, we have focused on improving our digital investing proposition. The scaling and enhancement of Smart Investor is a strategic priority for Private Bank and Wealth Management as part of Barclays' three- year plan. Our research indicates that a number of people in the UK may benefit from financial advice but are not receiving it. To address this need, we have built the foundations of a new UK Affluent proposition to provide advice to our customers and clients at each stage of their personal financial journey. It aims to deliver scalable and accessible financial planning which is fairly priced and transparently constructed. It will be fully integrated within the Barclays app – making it seamless for our customers to access the advice they need alongside their day-to-day banking requirements. The UK Affluent service is currently being piloted and will be launched in 2025. We have focused on providing a best-in-class offering for our Private Bank clients. We continued to enhance our personalised service and improve the products we offer, including enhancing our ability to offer credit against investments and expanding our alternative offerings with the launch of new Private Markets solutions. Across all of our businesses, we have automated processes and digitised services to improve our operations. For instance, in Europe, we increased automation in our banking offering to improve operations and controls, and significantly reduce processing times. IB Barclays has a top-tier Investment Bank with a strong global ranking. Our market share in Investment Banking has improved, and we maintained our #6 Dealogic global fee share ranking - the highest of any non-US domiciled bank. Though there is still work to do, we are making progress, and this is reflected in the £582m increase in Profit Before Tax to £3,938m. With 2024 marked by episodes of both optimism and risk aversion, the Investment Bank continued to help clients navigate a complex landscape shaped by economic data, geopolitical events and policy change – delivering strategic solutions through our diversified portfolio of products and services. Through the  year, we continued to grow income with a focus on more stable income streams which along with greater efficiency resulted in positive jaws for the year. In Global Markets, our synergies between sales, trading, financing, and with our partners in Investment Banking, give us the opportunity to drive a more cohesive and trusted relationship with clients and deliver a fuller suite of products and services, delivering revenue growth of 4%. We have made strong progress with improved performance in the three focus businesses in Markets, while sustaining momentum in financing within Markets. In Investment Banking, we delivered revenue growth year on year, and improved overall global fee share by 30bps to 3.3%1 versus 2023. In 2024, we maintained our traditional strengths in Debt Capital Markets (DCM), consisting of Investment Grade and Leveraged Finance while making progress in rebalancing our footprint towards Advisory and Equity Capital Markets (ECM). While corporate banking revenues were down, driven by lower liquidity pool income and margin compression on deposits, we made progress in developing our international offering and improved our digital offering to meet the increasingly sophisticated needs of our clients. Note 1 Dealogic for the period 1 January 2024 to 31 December 2024 | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 4 | ## Strategic report ## Performance review USCB The US is the world’s largest credit card market, and growing. With a c.2-3% share1 of the total market and partnerships with 20 major brands, the USCB has a significant opportunity. In 2024, we delivered a Profit Before Tax of £408m, up from £167m in 2023. We are focused on building lasting partnerships with leading US brands. This year, we launched a new co-branded card programme with Breeze Airways and extended our current partnership agreements with Hawaiian Airlines, Frontier and RCI. While we made a strategic decision not to bid to become American Airlines’ sole card issuer from 2026, we were selected as the new issuing partner for the General Motors card programme, which will launch in the first half of 2025. Our acquisition of Luxury Card, a global leader in the premium credit card market, supports our objective to optimise and diversify our broader card portfolio and bring more aspirational experiences to its cardmembers. We have continued to expand our online retail deposits business. In 2024, we launched Barclays Tiered Savings product, which features tiered pricing and the ability to earn higher rates with higher balances while our customers’ savings grow. We added c.three million new customers organically in 2024 – and we strive to provide them all with a world-class experience. We have made various improvements to our customer journeys, using digitisation and automation to help us serve customers in a way that works for them – including the digitisation of letters and improved telephony with AWS Connect. We have also integrated a formerly separate deposits mobile app into the Barclays US app so our customers can access all their accounts in one place. And with investments in Digital Day One, customers no longer need to wait to receive a physical card before registering for our digital environment, allowing them to have access to digital on day one. Head Office On 24 April 2024, Barclays announced a transaction under which Barclays Bank Ireland PLC, a subsidiary of Barclays Bank PLC,  intended to dispose of its performing Italian retail mortgage portfolio. The sale completed in Q224, generating a loss on disposal of £220m. In addition, on 22 October 2024 Barclays agreed the sale of its non-performing Italian retail mortgage portfolio, with the sale of the vast majority of loans completing during Q424 and the small residual amount of loans is expected to complete later in Q125. The transaction generated a small pre-tax loss of £26m. Barclays remains in discussion with respect to the disposal of the remaining Swiss-Franc linked Italian retail mortgage portfolio. Should the sale occur, it is expected to generate a further small loss on sale. On 4 July 2024, Barclays Bank Ireland PLC, a wholly owned subsidiary of Barclays Bank PLC,  agreed the sale of its German consumer finance business (comprising credit cards, unsecured personal loans and deposits) to BAWAG P.S.K., a wholly-owned subsidiary of BAWAG Group AG, for a small premium to net assets. When including disposal costs and accounting adjustments as required by IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations), Barclays Bank PLC has recorded a £9m loss for the disposal group.  After the balance sheet date, in Q125, the completed sale was announced. In light of recent legal and regulatory developments in the UK, including the Court of Appeal judgment in October 2024 against other lenders in three motor finance commissions cases (subject to appeal to the Supreme Court, which is scheduled to be heard in early April 2025), and the ongoing FCA review into historical motor finance commission arrangements and sales, Clydesdale Financial Services Limited (CFS) has recognised a provision in relation to historical motor finance commission arrangements. Taking into account the information currently available, Barclays has estimated the potential impact of these matters by taking into account the potential basis for and timing of redress, which complaints may be valid or invalid, and the potential level of such complaints. All these assumptions are subject to significant uncertainty and will be monitored and updated if any significant new information becomes available. The legal and regulatory outcomes and the nature, extent and timing of any remediation action if required remain uncertain and, as a result the ultimate financial impact could differ materially to the amount provided. The FCA plans to set out the next steps of its review in May 2025. Under the FCA's rules, Barclays’ obligation to respond to motor finance commission complaints is paused until after 4 December 2025. Barclays ceased operating in the motor finance market in late 2019. In 2020, CFS was transferred from Barclays Bank PLC to Barclays Principal Investments Ltd (BPIL), another subsidiary of Barclays PLC. Barclays Bank PLC has provided an intragroup indemnity to BPIL in respect of historic litigation and conduct matters relating to CFS. Looking ahead UKCB We remain committed to support the delivery of Barclays' three-year plan through a continued drive to grow lending; building deeper client relationships; and continued investment in our digital capabilities to enhance our client's experience. PBWM We are focused on improving efficiencies across our business, strengthening our propositions and growing our assets under management to drive a more balanced income profile across net interest income and fees. A continued focus is to deepen the relationships we have with our existing clients and continue to grow our assets and liabilities. We will do this by being more consistent with the way we collaborate with clients across the wider firm. Our priorities for the year ahead include further improvements to our UK Digital Investing proposition, launching our new UK Affluent proposition, and continuing to improve our proposition and digital experience in the Private Bank - both in the UK and internationally. We are also focused on progressing our plans to establish a new Private Bank booking centre in Singapore. We remain committed to improving our underlying technology infrastructure and digital client experience. Note 1  Market share is estimated using reported Ending Net Receivables compared to the consumer credit market in the US. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 5 | ## Strategic report ## Performance review IB Our goal in the Investment Bank is to continue to improve returns to deliver in line with Group RoTE in 2026 and leverage our strength in the UK to consolidate our position as a leading global investment bank. We aim to achieve this through high single-digit compound annual growth rate (CAGR) income growth, disciplined cost management and increase in capital efficiency. USCB As we continue to deliver on Barclays' strategic plan, we will work closely with our card partners to drive organic growth in existing programmes, while actively pursuing new partnership opportunities with a focus in the retail segment - which will improve through-the- cycle risk-adjusted margins. In our digital deposits business, our aim is that continued investment in our products and new co-branded marketing programmes will drive growth that will enable us to reduce funding costs. Ongoing, programmatic investments in the digitisation of our customer experience, as well as in tools and automation to assist our colleagues, will further drive improvements in overall cost efficiency. We will continue to explore risk transfer transactions as a mechanism for reducing capital consumption. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 6 | ## Strategic report ## Performance measures #### Performance measurement Financial performance measures The performance of Barclays Bank PLC contributes to the Barclays Group, against which the delivery of strategy is measured. Income Statement | | | | | | --- | --- | --- | --- | | | | | | | | | | | | Barclays Bank Group results | 2024 | 2023 | 2022 | | For the year ended 31 December | £m | £m | £m | | Total income | 19,037 | 18,268 | 18,194 | | Operating expenses | (12,245) | (12,270) | (10,821) | | UK Regulatory levies1 | (242) | (149) | (150) | | Litigation and conduct | (186) | (44) | (1,427) | | Total operating expenses | (12,673) | (12,463) | (12,398) | | Other net (expenses)/income | — | (4) | 4 | | Profit before impairment | 6,364 | 5,801 | 5,800 | | Credit impairment charges | (1,617) | (1,578) | (933) | | Profit before tax | 4,747 | 4,223 | 4,867 | | Taxation | (999) | (662) | (485) | | Profit after tax | 3,748 | 3,561 | 4,382 | | Other equity instrument holders | (792) | (808) | (732) | | Attributable profit | 2,956 | 2,753 | 3,650 | Note 1Comprises the impact of the Bank of England (BoE) levy scheme and the UK bank levy. Consolidated income statement commentary The Barclays Bank Group’s profit before tax increased 12% to £4,747m primarily driven by the performance across the Investment Bank. In USCB, profitability improved from a lower impairment charge and income growth from higher balances. UKCB and PBWM incurred lower profits from lower liquidity pool income and higher investment spend, to support business growth ambitions. Head office profitability was impacted by the loss on sale of the performing Italian mortgage portfolio in Q224 (£220m), the loss on disposal from the German consumer finance business and Litigation and Conduct charges relating to historical motor finance commission arrangements in Q424. The Barclays Bank Group has a diverse income profile across businesses and geographies including a significant presence in the US. The appreciation of average GBP against USD adversely impacted income and profits, and positively impacted total operating expenses. Refer to Note 2 Segmental Reporting for the Barclays Bank Group results by reporting segments. 2024 compared to 2023 • Total income increased 4% to £19,037m  (FY23: £18,268m) – IB income increased 7%  to £12,192m (FY23: £11,422m) • Global Markets income increased 4% to £7,773m driven by Equities income, partially offset by lower income in Fixed Income, Currencies and Commodities (FICC). Equities income increased from elevated client activity in Derivatives and Cash products, and growth in Prime financing balances, additionally supported by a £125m fair value gain on Visa B shares in Q124. FICC income decreased reflecting lower client activity in Macro and the non-repeat of the inflation benefit from prior year, partially offset by strong performance in Securitised products • Banking fees and underwriting income increased 26% to £2,581m, reflecting an increase in the fee pool and an increased market share1 • International Corporate Bank income decreased 4% to £1,838m driven by lower liquidity pool income, as higher income from growth in deposit balances was offset by margin compression in deposit products including the impact of customers migrating to higher interest returning products. Corporate lending income was broadly stable – UKCB income was broadly stable at £1,856m (FY23: £1,861m) as increased deposit income from higher average deposit balances was largely offset by lower liquidity pool income – USCB income increased 2% to £3,351m (FY23: £3,281m). Net interest income (NII) increased reflecting underlying growth in cards balances. Net fee, commission and other income remained stable driven by higher purchases and account growth2 – PBWM income increased 9% to £1,341m (FY23: £1,235m), driven by client assets and liabilities balances growth and the transfer of WM&I from Barclays UK3. Net interest income was broadly flat, as the impact from higher deposits balances was offset by lower liquidity pool income. Net fee, commission and other income increased due to higher investment balances and transactional activity | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 7 | ## Strategic report ## Performance measures – Head Office income decreased 37% to £297m (FY23: £469m income), mainly driven by the £220m loss on sale of the performing Italian retail mortgage portfolio and the impact of the disposal of the German consumer finance business • Total operating expenses increased 2% to £12,673m (FY23: £12,463m), mainly driven by UK regulatory levies and litigation and conduct costs, including a provision relating to historical motor finance commission arrangements in Head Office. Operating expenses excluding UK regulatory levies and litigation and conduct costs remained broadly flat as the impact of inflation, higher performance costs, and the transfer of WM&I, was offset by efficiency savings and the non-repeat of prior year structural cost actions in Head office • Credit impairment charges were £1,617m (FY23: £1,578m), informed by the anticipated higher delinquencies in US cards, partially offset by the impact of credit risk management actions and methodology enhancements. US cards 30 and 90 day arrears were 3.0%4 (Q423: 2.9%) and 1.6%4 (Q423: 1.5%) respectively. The USCB total coverage ratio increased to 11.4% (December 2023: 10.1%), primarily driven by the reclassification of a co-branded card portfolio to assets held for sale, excluding which the coverage was 9.8% • The effective tax rate (ETR) was 21% (FY23: 15.7%). The 2024 ETR includes tax relief on payments made under Additional Tier 1 (AT1) instruments and on holdings of inflation-linked government bonds Notes 1    Data source: Dealogic for the period covering 1 January 2024 to 31 December 2024. 2    Includes Barclays accounts and those serviced for third parties. 3    WM&I was transferred in May 2023. 4  Including assets held for sale. Balance Sheet Information The following assets and liabilities represent key balance sheet items for the Barclays Bank Group | | | | | --- | --- | --- | | | | | | | 2024 | 2023 | | As at 31 December | £m | £m | | Assets | | | | Cash and balances at central banks | 180,365 | 189,686 | | Loans and advances at amortised cost to banks | 8,780 | 9,024 | | Loans and advances at amortised cost to customers | 136,047 | 137,177 | | Debt securities at amortised cost | 50,227 | 39,046 | | Trading portfolio assets | 166,244 | 174,566 | | Financial assets at fair value through the income statement | 191,845 | 204,236 | | Derivative financial instruments | 292,356 | 256,111 | | Liabilities | | | | Deposits at amortised cost from banks | 13,252 | 14,598 | | Deposits at amortised cost from customers | 306,124 | 287,200 | | Financial liabilities designated at fair value | 279,777 | 298,573 | | Derivative financial instruments | 279,331 | 249,880 | Balance Sheet commentary • Cash and balances at central banks decreased £9.3bn to £180.4bn primarily driven by a change in the composition of the liquidity pool from cash and deposits at central banks to debt securities • Loans and advances at amortised cost to banks and customers decreased £1.4bn to £144.8bn driven by the £6.0bn reclassification of balances to assets held for sale, partially offset by higher lending in Global Markets • Trading portfolio asse ts decreased £8.3bn to £166.2bn and Financial assets at fair value through the income statement decreased £12.4bn to £191.8bn. Increases in client activity and underlying growth in financing balances were more than offset by balance sheet efficiencies and increased netting opportunities • Derivative financial instrument assets and liabilities increased £36.2bn to £292.4bn and £ 29.5bn to £279.3bn respectively.  In addition to increased client activity, increased mark-to-market on FX derivatives was driven by USD appreciation in Q4’24, partially offset by a reduction in interest rate derivatives due to an increase in the USD and GBP forward rate curves • Deposits at amortised cost increased £17.6bn to £319.4bn driven by deposit growth in International Corporate Bank and Private Bank and Wealth Management • Financial liabilities designated at fair value decreased £18.8bn to £279.8bn. Increases in client activity and underlying growth in financing balances were more than offset by balance sheet efficiencies and increased netting opportunities The financial information above is extracted from the financial statements. This information should be read together with the information included in the accompanying consolidated financial statements. Capital and Other Metrics1 Barclays Bank PLC capital requirements are set by the Prudential Regulation Authority (PRA) at a solo-consolidated level. Barclays Bank PLC solo-consolidated comprises Barclays Bank PLC, the parent, plus certain additional subsidiaries, whose inclusion within the consolidation is subject to PRA approval. Barclays Bank PLC leverage minimum requirements are set at a sub-consolidated level effective from 1 January 2023 and the leverage disclosure below is for Barclays Bank PLC sub-consolidated. For further information, refer to Treasury and Capital Risk on page [222](#ia16d0659cd524c01ae655d82fa382c3d_319). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 8 | ## Strategic report ## Performance measures For the purpose of liquidity management, Barclays Bank PLC and its subsidiary Barclays Capital Securities Limited, a UK broker dealer entity, are monitored on a combined basis by the PRA under a Domestic Liquidity Sub-Group (Barclays Bank PLC DoLSub) arrangement. | | | | | --- | --- | --- | | | | | | | | | | | 2024 | 2023 | | Common equity tier 1 (CET1) ratio | 12.1% | 12.1% | | Total risk weighted assets (RWAs) | £223.6bn | £211.2bn | | UK leverage ratio (sub-consolidated) | 5.8% | 6.0% | | Liquidity coverage ratio2 | 157% | 151% | | Net stable funding ratio3 | 112% | 110% | Notes 1Capital, RWAs and leverage are calculated applying the transitional arrangements in accordance with UK CRR. This included IFRS 9 transitional arrangements and the grandfathering of certain capital instruments until 28 June 2025. Effective from 1 January 2025, the IFRS9 transitional arrangements no longer applied. 2Represents the average of the last 12 spot month end ratios. 3Represents the average of the last four spot quarter end positions. As at 31 December 2024, Barclays Bank PLC’s solo-consolidated CET1 ratio was 12.1%, which exceeded the CET1 minimum regulatory capital requirement of 10.6%. As a CRR firm, Barclays Bank PLC is required to disclose Return on Assets on a solo-consolidated basis of 0.4% (2023: 0.3%). The Barclays Bank PLC Group return on asset is 0.3% (2023: 0.3%). Non-financial performance measures Barclays Bank PLC is part of the Barclays Group which uses a variety of quantitative and qualitative measures to track and assess holistic strategic delivery. Barclays Bank PLC has addressed the Non-Financial Reporting requirements contained in sections 414CA and 414CB of the Companies Act 2006 through the disclosure contained in the Barclays PLC Annual Report 2024 on pages 41 to 44. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 9 | ## Strategic report ## Managing risk The Barclays Bank Group is exposed to internal and external risks as part of its ongoing activities. These risks are managed as part of our business model. Enterprise Risk Management Framework At Barclays Bank Group, risks are identified and overseen in accordance with the Enterprise Risk Management Framework (ERMF), which supports the business in its aim to embed effective risk management and a strong risk management culture. The ERMF governs the way in which the Barclays Group identifies and manages its risks. The management of risk is then embedded into each level of the business, with all colleagues being responsible for identifying and controlling risk. In 2024, financial crime risk was elevated to a principal risk in the ERMF, effective from 1 January 2025.  Previously, financial crime risk was managed as part of compliance risk. Recognising the increased external threat of financial crime, this change will enhance transparency and visibility of financial crime risk within the Barclays Bank Group and reinforce independent assessment, management and oversight of financial crime risk. Risk appetite Risk appetite defines the level of risk we are prepared to accept across the different risk types, taking into consideration varying levels of financial and operational stress. Risk appetite is key to our decision-making processes, including ongoing business planning and setting of strategy, new product approvals and business change initiatives. The Barclays Bank Group may choose to adopt a lower risk appetite than allocated to it by the Barclays Group but cannot approve a higher risk appetite limit than determined by the Barclays PLC Board without its approval. Three lines of defence The first line of defence comprises the revenue-generating and client-facing areas, along with all associated support functions, including Finance, Treasury, Human Resources and Operations and Technology. The first line identifies the risks, sets the controls and escalates risk events to the second line of defence. Employees in the first line have primary responsibility for their risks and their activities are subject to oversight from the relevant parts of the second and third lines. The second line of defence is made up of Risk and Compliance and oversees the first line by setting limits, rules and constraints on their operations, consistent with the risk appetite. The third line of defence comprises Internal Audit, and provides independent assurance to the Barclays Bank PLC Board and the Barclays Bank PLC Executive Committee on the effectiveness of governance, risk management and control over current, systemic and evolving risks. The Legal function provides support to all areas of the Barclays Bank Group and is not formally part of any of the three lines of defence. The Legal function is responsible for proactively identifying, communicating and providing legal advice on applicable laws, rules and regulations. Except in relation to the legal advice it provides or procures, it is subject to second line oversight with respect to its own operational and compliance risks, as well as with respect to the legal risk to which the Barclays Bank Group is exposed. Monitoring the risk profile Together with a strong governance process, using business and Barclays Group level Risk Committees, as well as Board level forums, the Barclays Bank PLC Board receives regular information in respect of the risk profile of the Barclays Bank Group. Information received includes measures of risk profile against risk appetite as well as the identification of new and emerging risks, which are derived by mapping risk drivers, identified through horizon scanning, to risk themes, and similar analysis. For further details of monitoring risks please refer to page [124](#ia16d0659cd524c01ae655d82fa382c3d_109). During 2024, the Barclays Bank Group ran a stress test to assess its capital adequacy and resilience under a severe but plausible macroeconomic scenario. This stress test targeted risks such as inflation, financial stress and a shock on demand; with terminal low rates set to test the Barclays Bank Group’s vulnerabilities through NII (Net Interest Income) margin compression. The stress test outcome for macroeconomic tests assesses full financial performance over the horizon of the scenario in terms of profitability, capital, liquidity and leverage to ensure the Barclays Bank Group would remain viable. We believe that our structure and governance supports us in managing risk in the changing economic, political and market environments. For further detailed analysis of our approach to risk management and risk performance see the full Risk review on pages [121](#ia16d0659cd524c01ae655d82fa382c3d_85) to [244](#ia490fb2b67a142fe832c7151eb48fd6b_353417). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 10 | ## Strategic report ## Managing risk | | | | | | --- | --- | --- | --- | | | | | | | The Enterprise Risk Management Framework defines ten Principal Risks1 | | | | | | Principal Risks | Risks are classified into Principal Risks, as below | How risks are managed | | Principal Risk | Credit Risk | The risk of loss to the Barclays Bank Group from the failure of clients, customers or counterparties (including sovereigns) to fully honour their obligations to the Barclays Bank Group, including the whole and timely payment of principal, interest, collateral and other receivables. | Credit risk teams identify, evaluate, sanction, limit and monitor various forms of credit exposure, individually and in aggregate. The first line deliver business plans and products within risk appetite and all limits set by the second line, by maintaining detailed financial forecasts, applying controls and managing risks  to which they are exposed. | | Market Risk | The risk of loss arising from potential adverse changes in the value of the Barclays Bank Group’s assets and liabilities from fluctuation in market variables including, but not limited to, interest rates, foreign exchange, equity prices, commodity prices, credit spreads, implied volatilities and asset correlations. | Market Risk teams use a range of complementary approaches to identify and evaluate traded market risk exposures. These risks are measured, limited and monitored by market risk specialists. The first line conduct trading activities within the risk appetite and all mandate & scale limits set by the second line. | | Treasury and Capital Risk | Liquidity Risk: The risk that the Barclays Bank Group is unable to meet its contractual or contingent obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. | Treasury and Capital risk is identified and managed by specialists in capital, liquidity and asset and liability management teams. A range of risk management approaches are used such as limits plan monitoring and stress testing. The assessment of liquidity risk should be comprehensive in assessing all sources of liquidity risk, representing all of the assets and liabilities, on-balance sheet and off-balance sheet items including at the regional and legal entity levels. Capital risk is predominantly assessed and controlled on a forward-looking basis through the means of capital forecasts and capital plans. Key capital risks must be identified well in advance to allow for mitigating actions to be agreed and become effective. Pension risks are monitored regularly and reported to relevant stakeholders and committees to support discussions with the relevant pension fund’s actuaries and trustees. IRRBB assessment uses earnings and value type metrics and it  takes into account the type of IRRBB, the accounting nature and direct impact to earnings or capital; and, the appropriate holding period of the risk. | | Capital Risk: The risk that the Barclays Bank Group has an insufficient level or composition of capital to support its normal business activities and to meet its regulatory capital requirements under normal operating environments and stressed conditions (both actual and as defined for internal planning or regulatory testing purposes). This also includes the risk from the Barclays Bank Group’s pension plans. | | Interest Rate Risk in the banking book: The risk that the Barclays Bank Group is exposed to capital or income volatility because of a mismatch between the interest rate exposures of its (non-traded) assets and liabilities. This also includes credit spread risk in the banking book, the risk that the Barclays Bank Group  is exposed to capital or income volatility because of changes in credit spreads on its (non-traded) assets and liabilities. | | Climate Risk | The risk of financial losses arising from climate change through, physical risks and risks associated with transitioning to a lower carbon economy. | A risk management framework has been implemented for managing financial and operational risks from climate change across Barclays’ first and second line activities. A range of risk management practices has been developed and enhanced for identifying, measuring and quantifying the impact of climate physical and transition risks in the financed portfolios. Climate scenario analysis forms a key part of Barclays’ approach to assessing and quantifying the impact of both physical and transition risks . In addition, Barclays conducts climate risk management activities at the level of key entities, including proposing Climate Risk Appetite, identifying, assessing and monitoring climate risk drivers, setting limits and other controls to keep the bank within risk appetite, and reporting activities, as appropriate. | | Operational Risk | The risk of loss to the Barclays Bank Group from inadequate or failed processes or systems, human factors or due to external events (for example fraud) where the root cause is not due to credit or market risks. | Operational risks are managed in accordance with the Operational Risk Framework, owned and overseen by the second line, and the standards within the Barclays Control Framework. The primary responsibility for the management of operational risk rests within the business and functional units where the risk arises. Management complete Risk and Control Self-Assessments to assess operational risks and the effectiveness of the controls within processes. Identified risks, events and issues are escalated to senior management and the Board to ensure timely notification and to agree the appropriate response. | | Model Risk | The potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. | The range of controls owned by first line include: timely model identification, robust model development, testing, documentation, annual assessment, and ongoing performance monitoring. The range of controls owned by second line include: independent model validation, oversight over on-going model performance, and execution of overall model risk governance covering oversight and reporting and escalation to appropriate forums and committees. | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 11 | ## Strategic report ## Managing risk | | | | | | --- | --- | --- | --- | | | | | | | Principal Risk | Compliance Risk | The risk of poor outcomes for, or harm to, customers, clients and markets, arising from the delivery of the Barclays Bank Group’s products and services (also known as 'Conduct Risk') and the risk to Barclays, its clients, customers or markets from a failure to comply with the laws, rules and regulations applicable to the Barclays Bank Group (also known as Laws, Rules and Regulations Risk 'LRR Risk'). | The first line is accountable for the overall assessment and management of compliance risks in their business or function and are responsible for implementing the requirements outlined in the Compliance Risk Management Framework (CRMF). Compliance must oversee adherence to the CRMF and the management of compliance risk, and provide independent second line of defence oversight to all Barclays businesses, providing advice and challenge where appropriate. | | Reputation Risk | The risk that an action, transaction, investment, event, decision, or business relationship will reduce trust in the Barclays Bank Group’s integrity and/or competence. | Reputation risk is managed by embedding our purpose and values, and maintaining a controlled culture within the Barclays Bank Group, with the objective of acting with integrity, enabling strong and trusted relationships to be built with customers and clients, colleagues and broader society.  Each business assesses reputation risk using standardised tools and the governance is fulfilled through management committees and forums, clear escalation and reporting lines to the Barclays Bank PLC Board. | | Legal Risk | The risk of loss or imposition of penalties, damages or fines from the failure of the Barclays Bank Group to meet applicable laws, rules and regulations or contractual requirements or to assert or defend its intellectual property rights. | Legal risk is managed by the identification and management of legal risks by the Legal function and the escalation of legal risk as necessary. The Barclays Bank Group's businesses and functions have responsibility for engagement of the Legal function in situations that have the potential for legal risk. Legal risk is also mitigated by the requirements of the compliance risk management framework, including the responsibility of the legal professionals to proactively identify, communicate and provide legal advice on applicable laws, rules and regulations. | | Financial Crime Risk | The risk that the Barclays Bank Group and its associated persons (employees or third parties) commit or facilitate financial crime, and/or, the Barclays Bank Group’s products and services are used to facilitate financial crime. Financial crime undermines market integrity and may result in: harm to clients, customers, counterparties or employees; diminished confidence in financial products and services; damage to the Barclays Bank Group's reputation; regulatory breaches; and/or financial penalties. | The first line is accountable for the overall assessment and management of financial crime risks in their business or function and are responsible for implementing the requirements outlined in the Financial Crime Risk Management Framework (FCRMF). Financial Crime must oversee adherence to the FCRMF and the management of financial crime risk, and provide independent second line of defence oversight to all Barclays businesses, providing advice and challenge where appropriate. | Notes 1The ERMF defines ten Principal risks. For further information on how these Financial and Operational Principal Risks apply specifically to the Barclays Bank Group, please see page [123](#ia16d0659cd524c01ae655d82fa382c3d_94). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 12 | ## Strategic report ## Customer and clients The following sub-sections include a summary of the Barclays Bank PLC specific items from the Barclays PLC Annual Report 2024, references to 'our' and 'we' refer to Barclays Bank PLC as part of the wider Barclays Group. For full details, refer to the Customer and clients section of the Barclays PLC Annual Report 2024. Providing an excellent customer and client experience is key to our strategy. We seek to understand our customers’ and clients’ expectations and aspirations, developing products and services to build their trust and support them to achieve their ambitions. Engaging with customers and clients Barclays Bank PLC is committed to serving our customers' and clients' best interests - and improving their experience is a key priority for the bank as we strive to make Barclays Bank PLC better. We frequently engage with customer and clients in a variety of ways - including running regular surveys, analysing customer complaints, direct interaction and drawing on data from millions of individual transactions - building our understanding of their evolving needs and enabling us to adapt to our products and services accordingly. In UK Corporate Bank A priority for the UK Corporate Bank is to make sure that feedback from clients through day-to-day interactions is heard, understood and acted on. Using quarterly client surveys and advanced analytics tools, we extract key themes from sources such as operational interactions, customer complaints, incidents and call recordings - enabling us to better understand challenges, identify root causes and recommend proactive actions to ensure our offerings support our customers' needs. The UK Corporate Bank has a multi-year plan to address client feedback and provide a more seamless experience. New digital and self-serve capabilities, for example live chat functionality for query resolution, are enhancing customer experience. In 2024, we built strong foundations to deliver our future global digital experience through a single web entry point, called iPortal. In Private Bank and Wealth Management At the core of our service in Private Bank and Wealth Management is a commitment to engage proactively with client feedback and respond to their evolving needs. In addition to the in-depth and highly valuable client knowledge gained every day by our client-facing colleagues, we use data-driven insights to inform strategic decision-making and shape and enhance propositions. We run annual surveys to deep-dive into client sentiment - and, for some segments, we supplement these with additional short-form surveys to understand how specific client journeys can be improved. We have made a number of customer journey enhancements in Smart Investor in 2024, such as onboarding and ready-made investment journeys. For Private Bank clients, we have improved digital payments functionality, implemented digitally enabled credit applications, and made a range of digital enhancements, which we know is a key focus for clients. We have also made improvements to other services such as the content and readability of clients' investments reports and, in the UK, continuing to enhance the personalisation of our telephony service. In Investment Bank In the Investment Bank, reflecting on engagement with and feedback from our clients, we continued to build the expertise, knowledge, and capabilities they are looking for. In December 2024, the Barclays' Research team started a phased roll out of a new Barclays Live portal to clients. The portal has been redesigned to provide easy to access insights across asset classes, enabling clients to stay ahead of industry and market trends. The new Barclays Live delivers a more personalised experience, designed to help our clients make smarter and quicker decisions and includes enhanced navigation and faster, more-tailored responses to markets, themes, and expert opinions. It also includes new features that bring key market themes into focus and give clients simpler access to different perspectives and opinions. In Investment Banking, we are simplifying engagement by unifying Treasury Coverage and providing clients with a lead treasury banker empowered to help deliver the entire franchise and more product breadth. Historically, individual product teams engaged individually with clients’ Treasurers. This change in approach  has led to our teams being more solutions driven, delivering better client outcomes and supporting a doubling of US deposits since 2023. In US Consumer Bank Our US Consumer Bank serves over 20 million customers in the US. We continually look for new ways to engage with our customers – including via surveys, focus groups, panels and other interactions - to improve their experience. We also analyse complaints and review daily operational data. We are learning that our customers want simpler, more straightforward interactions with us. In response, in 2024 we focused on improving our mobile app, digitising communications and creating more opportunities for customers to resolve their issues online through self-service, rather than having to call us. We have also focused on improving our call centre agent tools so that our colleagues are better equipped to serve our clients. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 13 | ## Strategic Report ## Colleagues The following sub-sections include a summary of the Barclays Bank PLC specific items from the Barclays PLC Annual Report 2024, references to 'our' and 'we' refer to Barclays Bank PLC as part of the wider Barclays Group. For full details, refer to the Colleagues section of the Barclays PLC Annual Report 2024. Figures mentioned are for the Barclays Group, other than where specifically mentioned. At the heart of achieving our plan to make Barclays Simpler, Better and More balanced are our colleagues. We are united by a shared Purpose, Values and Mindset, delivering to a consistently excellent standard in all we do - and we are making Barclays Bank PLC a great place to work, where every colleague can reach their potential. Engaging with colleagues Sharing our strategy and how colleagues can contribute towards delivery has been a key part of our 2024 engagement. Regular, two-way dialogue helps us to understand what is working well across the organisation and where we can improve. Engagement with colleagues is delivered through townhalls, skip-level meetings, site visits, leader-led sessions, focus groups and surveys. Through our bi-annual all-colleague Your View surveys, our people have the opportunity to share their feedback on working at Barclays – and in 2024, we saw the highest participation to date. We strive to create a respectful and inclusive environment where colleagues feel safe to speak up. Additionally, our raising concerns and whistleblowing processes provide anonymous channels for colleagues when needed. Our longstanding partnership with Unite in the UK also offers further insight into the views of our people. We continue to consult with Unite on major change programmes impacting our people, to minimise compulsory job losses and focus on reskilling and redeployment. Continuing to deliver to a consistently excellent standard A consistently excellent standard is an integral part of our culture and a key enabler of our three-year plan. It continues to be embedded through the group-wide multi-year Consistently Excellent culture change programme. In 2024, our focus has been supporting colleagues from understanding what it means to deliver to a higher standard to putting it into practice every day, with a focus on strengthening risk management and controls. This standard is now central to our hiring, promotion and colleague performance management processes. We continued to recognise colleagues for high standards through our recognition portal, our CEO Awards and our Exceptional Achievement Awards. Our leaders are critical here and, for the second year running, members of the Group Executive Committee visited sites across the world to talk about being consistently excellent – with a focus on how this enables delivery of the strategic plan. Investing in our talent Our talent ambition continues to underpin Barclays' approach to talent attraction, retention and development. In 2024, we refreshed, simplified and enhanced our selection experience and introduced a new single Global Talent Framework. We also introduced a new HR platform to deliver these changes at scale to our people. Our leadership framework continues to set the benchmark for what it means to lead at Barclays. It is the foundation for our leaders to improve how they lead and create an environment where colleagues can learn, grow and succeed. Our ambitions Barclays is committed to abiding by the laws in all jurisdictions in which it operates, including anti-discrimination laws. Building an inclusive and equitable culture, reflecting a diversity of views and backgrounds, where all colleagues can thrive is a business priority. We are focused on actions and outcomes that support a culture of belonging and diversity of thought. Our initiatives help to develop a leadership pipeline through which qualified candidates are considered for leadership roles regardless of their gender, race, or any other protected characteristic. Supporting our workforce Helping our people be at their best remains a priority. Our structured hybrid working model enables colleagues to connect in-person and plan their work to make the most of their time in the office and at home, where appropriate to their role. We continue to test and learn from our approach. We are also focused on supporting colleague wellbeing. We use data-driven insights and engagement through campaigns to help our people build healthy habits and promote a supportive culture. Our people policies Our people policies help us recruit the best people, provide equal opportunities and create an inclusive culture, in line with our Purpose, Values and Mindset, and in support of our long-term success. They are regularly reviewed and updated to ensure they are aligned with our broader people strategy. In 2024, we continued to review our policies to optimise colleague experience, standardising policies globally where possible, and supporting colleagues and people leaders to navigate them. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 14 | ## Strategic report ## Society The following sub-sections include a summary of the Barclays Bank PLC specific items from the Barclays PLC Annual Report 2024, references to 'our' and 'we' refer to Barclays Bank PLC as part of the wider Barclays Group. For full details, refer to the Society section of the Barclays PLC Annual Report 2024. Our success is measured not only by our commercial performance, but also by our contribution to society and the way we work together for a better financial future for all our stakeholders. Our focus on society falls broadly into three categories: Climate, Communities and Suppliers. Climate Capital is critical for a successful energy transition and the scale of our business gives us the opportunity to help finance this – to use our global reach, products, expertise and position in the global economy to work with our clients. We believe banks can play a systems-wide role in supporting the transition beyond financing, such as helping to create the ecosystems in which low carbon technology can flourish, working with clients and other organisations to unlock new financial solutions, understanding and informing policy and regulatory debates, and identifying ways to support innovation and new climate solutions for our clients. Barclays Bank PLC continues to support the Group's commitment to achieve its ambition to be a net zero bank by 2050, and in 2024 we continued to support delivery of the Group climate strategy. There has been good progress in reducing our operational emissions, and we continue to focus on reducing our financed emissions through our policies, targets and financing. Using our global reach, deep expertise in financial markets and growing capabilities in understanding the transition and clients, we are supporting clients as they transition to a low-carbon business model. Our climate strategy will continue to evolve as we continue to pursue our ambition of being a net zero bank by 2050 against the shifting and rapidly developing landscape. Please see the Climate and Sustainability Report in the Barclays PLC 2024 Annual Report and the Schedule to the Directors' Report: Sustainability Statement on page [35](#ia16d0659cd524c01ae655d82fa382c3d_6560). Communities We are committed to supporting the communities where we operate by enabling people to develop the skills and confidence they need to succeed, and helping businesses to grow and create jobs. Our focus is on building a stronger and more inclusive economy. Working together for a better financial future, we regularly engage with our community partners to deepen our understanding of societal issues and evolve our programmes accordingly. Formal quantitative and qualitative information is provided by our charity partners on a quarterly basis and we frequently seek feedback from the business leaders that we support through our programmes. This feedback and data helps inform and shape our strategic focus to ensure our work best serves the needs of the people and businesses we support. Skills and employability A vibrant, skilled workforce ensures local communities and businesses can thrive, and supports economic growth. Sustainable growth Barclays recognises that businesses are engines of growth and innovation in communities around the world, pioneering solutions to support the transition to a more sustainable, inclusive and just future. Well-positioned with the capabilities, resources and networks to support their growth – from idea to IPO – we provide a package of innovative programming, workspaces and investment. Charitable giving and investment in our communities Barclays Bank PLC supports employees to make a positive difference to the causes that matter most to them. We support communities directly by investing money and skills in partnerships with respected non-governmental organisations, charities and social enterprises. Suppliers The Barclays Bank Group via its parent engages directly with third party service providers, seeking to integrate sustainability considerations across our supply chain and provide inclusive procurement opportunities and drive economic impact to diverse businesses - diverse in size, demographic ownership makeup or mission. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 15 | ## Strategic report ## Section 172(1) statement How the Board has regard to the interests of stakeholders In accordance with the Companies Act 2006 (the Act), this statement sets out how the Directors have had regard to the matters set out in Section 172(1) of the Act when performing their duty to promote the success of the Company for the benefit of its shareholders as a whole and to have regard to: a. the likely consequences of any decision in the long term; b. the interests of employees; c. the need to foster business relationships with suppliers, customers and others; d. the impact of operations on the community and the environment; e. the desirability of maintaining a reputation for high standards of business conduct; and f. the need to act fairly as between shareholders. How the Board engages with stakeholders You can read about the key activities of the Board and decisions taken during the year in the Governance report, in particular how we have complied with our corporate governance principles, on pages [18](#i29c2b780fba64e579b29661f9a58f3e6_308714) to [30](#i29c2b780fba64e579b29661f9a58f3e6_311944). You can also read about our key stakeholder groups and how we listen and respond to them in the Customer and clients, Colleagues and Society sections of the Strategic report on pages [12](#ia16d0659cd524c01ae655d82fa382c3d_43) to [14](#ia16d0659cd524c01ae655d82fa382c3d_52). Further relevant information regarding the Barclays Group's key stakeholder groups and how we listen and respond to them can be found in the Our stakeholders section of the Barclays PLC Annual Report 2024. Barclays Strategy In February 2024 the Barclays Group announced a new three-year plan to create a ‘Simpler, Better and More Balanced Bank’ – to improve our operational and financial performance, and total shareholder returns. As part of this, the Company has set financial targets to match this ambition and improve outcomes for all stakeholders. As part of the BPLC Board’s responsibility to set the strategic direction for the Barclays Group, in 2023 the BPLC Board provided significant input and oversight of the shaping of the strategy. This continued through to 2024, when in the first part of the year the BPLC Board approved the new financial targets and re-segmentation of the Barclays Group into five focussed businesses, with four of these businesses in BBPLC - UK Corporate Bank, Private Bank and Wealth Management, Investment Bank and US Consumer Bank. Throughout the year, the Board received updates from the heads of each business who presented on strategy execution and performance against the financial targets. The Board was able to challenge what the strategy means to each business and the actions being taken to become a Simpler, Better and More Balanced Bank. With respect to the investor presentations on the US Consumer Bank, UK Corporate Bank, Investment Banking and Private Bank and Wealth Management businesses, the Board also considered and reviewed the materials. The Board Audit Committee considered the segmented financial reporting and operation of internal controls; while the Board Risk Committee received first line reporting from the businesses to ensure close oversight of the respective risks. This has facilitated greater accountability at a business level supporting closer monitoring and measurement of success. The Board has continued to provide ongoing monitoring and oversight of management’s implementation and delivery of the strategy. In support of a More Balanced organisation, the Board considered key strategic M&A transactions, including the sale of the German consumer finance business and the sale of the Italian mortgage portfolios. During the year, the Board considered how achieving a Simpler business model helped target best in class performance to ensure we are always striving to be Better. The consistently excellent standard described in the 2023 Barclays PLC Annual Report continues to be integral to the culture and execution of the strategy. A consistently excellent standard at Barclays means we are holding ourselves to a high standard across: • Service – providing world class service to our clients and customers. • Precision in our operations, our risk management and our controls. • Focus on businesses and projects where we can excel. • Simplicity and efficiency, seeking out every opportunity to automate. • Diversity of thought – championing new thinking and challenging the status quo. Dedicated 'Being Consistently Excellent' workshops were rolled out to Barclays colleagues throughout 2024 to create a common understanding. In recognition of the importance of consistently excellent standards, the Board focussed on how management measures the level of embedment. The Board received regular updates on non-financial KPIs, including a dedicated “Consistently Excellent” dashboard and the bi-annual Your View employee survey results. As part of an update to the Board on workforce engagement and culture in December 2024, the Board considered how the metrics used in the dashboard had improved year-on-year or had achieved the end-state ambition. Recognising that embedment of a behavioural change programme of this nature is a multi-year effort, the Board will continue to monitor measurement of culture and the consistently excellent standard in 2025. Consumer Duty In the 2023 Annual Report we highlighted the Board’s oversight of the implementation of the FCA's Consumer Duty. This outcomes-based regulation is designed to ensure relevant financial services firms deliver good outcomes for retail customers. Since then, the  Consumer Duty Board Sub-Committee has continued to provide oversight of implementation work through receiving regular updates, providing oversight of embedment of the Consumer Duty for in-scope products and services, and implementation for “closed products” (those products that have not been marketed or distributed to customers after 31 July 2023). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 16 | ## Strategic report ## Section 172(1) statement Embedment of Consumer Duty throughout the Barclays Bank Group’s operations and as part of its culture has been overseen by the BBPLC Board and Consumer Duty Board Sub-Committee which received information on customer outcomes throughout the year via updates on key activities, thematic findings, as well as risks and issue reporting, alongside examples of positive steps to improve customer outcomes and examples of the Consumer Duty in action. An example of this included a focus on complaints in the Private Bank and Wealth Management business which led to restructuring the client services teams to better support customers, leading to a 61% reduction in complaint volumes. The Board Consumer Duty Champion (a nominated Board member) was closely engaged in producing the first annual Consumer Duty report for the Board which assessed whether the businesses were delivering good outcomes for retail customers. In July 2024 the BBPLC Board, supported by the Board Consumer Duty Champion, considered and approved the report, concluding that the strategy, purpose and ambition of the Company aligned with the Consumer Duty. The report supported the Board's assessment of the implementation of Consumer Duty and our consistently excellent standard, with customer outcomes being a key lens and core pillar of the strategy.  The Board will continue to give consideration to any regulatory developments in relation to Consumer Duty. Nigel Higgins Chairman – Barclays Bank PLC 12 February 2025 | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 17 | ## Governance ## Contents | | | --- | | | | Our corporate governance processes and the role they play in supporting the delivery of our strategy | | | | | | --- | --- | --- | | | | | | Governance | | Page | | | • [Corporate governance statement](#ia16d0659cd524c01ae655d82fa382c3d_67) | [18](#ia16d0659cd524c01ae655d82fa382c3d_67) | | | • [Directors’ report](#ia16d0659cd524c01ae655d82fa382c3d_70) | [31](#ia16d0659cd524c01ae655d82fa382c3d_70) | | | • [Other governance](#ia16d0659cd524c01ae655d82fa382c3d_79) | [118](#ia16d0659cd524c01ae655d82fa382c3d_79) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 18 | ## Governance ## Corporate governance statement The Boardr Details of the Directors who served during the financial year ended 31 December 2024 are set out in the table below, together with the composition of each of the Board’s Committees. We welcomed Brian Shea to the Board as a Non-Executive Director with effect from 19 July 2024. Mohamed A. El-Erian stepped down from the Board on 31 August 2024 and Diane Schueneman stepped down from the Board with effect from 31 January 2025. The Board is grateful for both Mohamed's and Diane's invaluable contributions to the Board during their tenure. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Board | Nominations Committee | Audit Committee | Risk Committee | Remuneration Committee | Sustainability Committee | | Nigel Higgins1 Chairman of the Board | C | C | | | M | C | | Robert Berry Independent Non-Executive Director | M | | M | C | | M | | Anna Cross Executive Director | M | | | | | | | Dawn Fitzpatrick Independent Non-Executive Director | M | | | M | M | M | | Mary Francis Independent Non-Executive Director | M | | | | C | M | | Marc Moses Independent Non-Executive Director | M | | M | M | | | | Brian Shea2 Independent Non-Executive Director | M | | | | | | | C.S. Venkatakrishnan Executive Director | M | | | | | M | | Julia Wilson Independent Non-Executive Director | M | M | C | M | M | M | | Former Directors | | | | | | | | Mohamed A. El-Erian3 Independent Non-Executive Director | M | M | | M | | | | Diane Schueneman4 Independent Non-Executive Director | M | M | M | M | | | C Chair of Board or Board Committee. M Member of Board or Board Committee. 1 Nigel Higgins was appointed as a member of the Board Remuneration Committee with effect from 31 January 2025. 2 Brian Shea was appointed to the Board with effect from 19 July 2024. 3 Mohamed A. El-Erian stepped down from the Board and as a member of the Board Nominations and Risk Committees on 31 August 2024. 4 Diane Schueneman stepped down from the Board Risk Committee with effect from 31 May 2024. She stepped down from the Board and as a member of the Board Nominations and Audit Committees with effect from 31 January 2025. Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 Attendance Directors are expected to attend every Board meeting. During 2024, there was one ad hoc Board meeting held in addition to scheduled meetings.r Attendance at meetings in 2024 is set out in the table below. The aggregate attendance for Board and Board Committee meetings in 2024 did not fall below 75% for any Director. | | | | | | --- | --- | --- | --- | | | | | | | Director | Meetings attended / eligible to attend | Ad hoc meetings attended / eligible to attend | Effective date | | Nigel Higgins | 7/7 | 1/1 | Appointed 1 March 2019 | | Robert Berry | 7/7 | 1/1 | Appointed 8 February 2022 | | Anna Cross | 7/7 | 1/1 | Appointed 23 April 2022 | | Dawn Fitzpatrick | 7/7 | 1/1 | Appointed 25 September 2019 | | Mary Francis | 7/7 | 1/1 | Appointed 25 September 2019 | | Marc Moses | 7/7 | 1/1 | Appointed 23 January 2023 | | Brian Shea | 4/4 | 0/0 | Appointed 19 July 2024 | | C.S. Venkatakrishnan | 7/7 | 1/1 | Appointed 1 November 2021 | | Julia Wilson | 7/7 | 1/1 | Appointed 1 April 2023 | | Former Directors | | | | | Mohamed A. El-Erian | 4/4 | 1/1 | Stepped down 31 August 2024 | | Diane Schueneman | 7/7 | 1/1 | Stepped down 31 January 2025 | Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 19 | ## Governance ## Corporate governance statement Overview of governance framework Membership of the BPLC and BBPLC Boards is partially consolidated in order to drive efficiency and coordination, whilst also reducing complexity and unnecessary duplication. As a result, membership of the BBPLC Board is a subset of the BPLC Board, with all members of the BPLC Board (except for the Senior Independent Director, the Chair of Barclays Bank UK PLC (BBUKPLC) and at least one other Non-Executive Director) also serving on the BBPLC Board. This structure provides oversight over the activities of BBPLC, in addition to which Board members have direct accountability to BPLC’s shareholders through their separate responsibilities as members of the BPLC Board. The Board is committed to high standards of corporate governance and, in accordance with the Companies (Miscellaneous Reporting) Regulations 2018 (the 2018 Regulations), has adopted its own corporate governance arrangements, which it considers are appropriate to apply and are designed to facilitate effective decision-making to promote BBPLC’s long-term success. The Board has chosen not to adopt and report against the UK Corporate Governance Code (Code), which is intended for companies with listed equity securities. Furthermore, whilst fully supportive of the Wates Corporate Governance Principles for Large Private Companies (in particular the focus on purpose, culture and colleague and stakeholder engagement), the Board considers that the Wates Principles are less appropriate for a wholly-owned subsidiary of a listed company, which is also a complex financial institution subject to a comprehensive regulatory regime. This is consistent with the approach of other significant subsidiaries within the Barclays Group which are subject to the 2018 Regulations. The primary aims of our governance framework are that it: • ensures we have an effective and entrepreneurial Board which makes decisions and provides oversight to promote BBPLC's success, creating long-term sustainable value for its shareholder and the ultimate shareholders of BPLC, having regard to the interests of all our other stakeholders • seeks to ensure that our decision-making is aligned to our Purpose, Values and Mindset • is effective in providing constructive challenge, advice and support to management • provides checks and balances and drives informed, collaborative and accountable decision-making. Set out below are the principles which underpin our corporate governance arrangements and how these principles have been applied during 2024. Certain additional information, signposted throughout this section, is also available in the Strategic report. The Barclays Group-wide governance framework, which is set by BPLC, is designed to facilitate the effective management of the Barclays Group. This includes the setting of Barclays Group policies and approach in relation to matters such as Barclays’ Purpose, Values and Mindset, Barclays’ Remuneration Policy and the Barclays Charter of Expectations. Where appropriate, this corporate governance statement makes reference to those Barclays Group-wide policies, which are relevant to the way in which the Company is governed. The Company’s corporate governance principles and how the Company has applied them during 2024 and to the date of this report | | | --- | | | | | Principle One: Board leadership and company purpose A successful company is led by an effective and entrepreneurial board, whose role is to establish the company’s purpose, values and strategy, aligned to its culture and make decisions to promote its success for the long-term benefit of its shareholder, having regard to the interests of other relevant stakeholders and factors. | | | --- | | | | | ▪ Through the leadership of the Board, a clear vision of the Barclays Purpose, Values and Mindset is articulated, underpinning and defining BBPLC's strategy and culture, with a drive to embed this at every level of the organisation. ▪ Given its fundamental importance, the Board regularly considered strategy matters throughout the year, including the Barclays Bank Group's elements of Barclays' three-year strategy announced on 20 February 2024. Further detail on the Company’s strategy can be found from page [1](#ia16d0659cd524c01ae655d82fa382c3d_13) of the Strategic report and details of the Barclays Group strategy can be found within the Strategic report of the Barclays PLC Annual Report 2024. ▪ The Board supports The Barclays Way, which provides a path for achieving a dynamic and positive culture. The Board believes that a positive culture, supported by effective leadership and a consistent ‘tone from the top’, is crucial to our success. #### What the Board did in 2024 The key areas of focus for the Board in 2024 are set out below. Strategy and operational matters ▪ Considered strategy matters regularly throughout the year. In addition, the Board received business reviews throughout the year to understand key risks and opportunities and monitor progress against the targets set in the three-year plan in relation to the re- segmented business divisions within BBPLC of Private Bank and Wealth Management (PBWM), Investment Bank (IB) (covering both Global Markets and Investment Banking), US Consumer Bank (USCB) and UK Corporate Bank (UKCB). ▪ Reviewed materials for investor presentations on USCB, UKCB, Investment Banking and PBWM. ▪ Received focused presentations on 'horizontal topics' impacting the wider Barclays Group, such as financial crime risk, reputation risk, cybersecurity risk and controls, operational resilience and transformation initiatives to support the delivery of the strategy. ▪ Reviewed and approved the 2024 Medium Term Plan. ▪ Received updates on climate and sustainability matters through reports from the Board Sustainability Committee, including on the Barclays Group's sustainable finance strategy (including in relation to Investment Banking, Global Markets and UKCB), energy strategy and the development of a Barclays Group Transition Plan. Details of a briefing the Board received on the external climate reporting landscape can be found in Additional information relating to sustainability matters.r ▪ In early 2024, approved the 2023 Barclays Group Modern Slavery Statement, which covered BBPLC.r ▪ Considered culture and colleague engagement. Received regular updates from the Chief Executive Officer on the Barclays Group-wide cultural change programme to deliver to a consistently excellent standard and considered progress on embedment through management reporting and Your View colleague survey results. Board members also engaged directly with colleagues during the year, including through town halls and site visits. Refer to the Colleagues section from page [13](#ia16d0659cd524c01ae655d82fa382c3d_46) of the Strategic report for more information on colleague matters.r | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 20 | ## Governance ## Corporate governance statement ▪ Confirmed that BBPLC's method of workforce engagement has been effective in 2024.r ▪ Received an update on Diversity, Equity and Inclusion (DEI) activities during 2024, including progress against the Barclays Group's DEI ambitions for senior women and colleagues from under-represented races and ethnicities. r Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 Finance ▪ Regularly assessed the financial performance of the BBPLC businesses and Barclays Bank Group results through reports from management and through business specific updates to the Board. ▪ Reviewed and approved BBPLC’s financial results prior to publication. ▪ Reviewed and approved the payment by BBPLC in February 2024 of an interim dividend in respect of the year ended 31 December 2023 to its ordinary shareholder, and approved the payment of a 2024 interim dividend in September 2024. Details of dividends paid by BBPLC in 2024 are set out in Note 10 of the financial statements. ▪ Considered and approved the BBPLC elements of the Barclays Group Recovery Plan. Governance and risk (including regulatory issues) ▪ Received updates on management's implementation of the Financial Conduct Authority's (FCA) Consumer Duty for closed products and approved the first BBPLC Consumer Duty Annual Board Report ahead of the 31 July 2024 regulatory deadline. This included updates on embedment and observations from the BBPLC Consumer Duty Champion on the BBPLC Consumer Duty programme. You can read more about the Board's oversight of the Consumer Duty in the Section 172(1) statement from page [15](#ia16d0659cd524c01ae655d82fa382c3d_55). ▪ Received regular updates on emerging risks in the context of the macroeconomic, regulatory and geopolitical outlook. ▪ Approved the BBPLC Risk Appetite Statement and adopted the Enterprise Risk Management Framework. ▪ Considered the Barclays Group's annual operational resilience self-assessment and management actions to enhance recovery capability for Important Business Services insofar as it related to BBPLC. ▪ Upon the recommendation of the Board Nominations Committee, considered succession planning for, and approved changes to, Board and Board Committee membership. ▪ Upon the recommendation of the Board Audit Committee, approved putting the external audit out to tender. Refer to page [33](#ifcab2a3f75cd4c07b9a99d17ce31aa7e_40613) for further details about the audit tender process. ▪ Received regular reports from the Chair of each Board Committee. ▪ Received and considered feedback from the Barclays Group’s key regulators insofar as it related to BBPLC. | | | --- | | | | | Principle Two: Division of responsibilities An effective board requires a clear division of responsibilities with the Chair leading the board and being responsible for its overall effectiveness, and the executive leadership of the company’s business being delegated to the Chief Executive. The board should consist of an appropriate combination of Executive and independent Non-Executive Directors, each with a clear understanding of their accountability and responsibilities. The board’s policies and procedures should support effective decision-making and independent challenge. | | | --- | | | | | ▪ There is a clear division of responsibilities between the Chair and Chief Executive Officer. Page [18](#ia16d0659cd524c01ae655d82fa382c3d_67) sets out the details of the Board members, the majority of whom are independent Non-Executive Directors. ▪ Policies and protocols are in place to support effective decision-making and independent challenge, including the Barclays Charter of Expectations which sets out the individual role profiles and required behaviours and competencies of the Chair, Non-Executive Directors, Executive Directors and Committee Chairs. In accordance with the Charter of Expectations, the Non-Executive Directors are responsible for providing effective oversight, strategic guidance and constructive challenge while holding the Executive Directors to account against agreed performance objectives. The Chairman meets privately with the Non-Executive Directors when appropriate, to promote independence. ▪ The Board's responsibilities are executed in part through the Board Committees, each of which has its own Terms of Reference which set out its remit and decision-making powers. The Chairs of each of the Board Committees provide a report on the work of the Committee at every scheduled Board meeting. Details of the principal Board Committees and their core responsibilities and activities in 2024 are set out later in this report. ▪ Appropriate information and support is provided to the Board, to enable it to undertake its work with due care and discharge its responsibilities. ▪ The Barclays Group Corporate Governance Operating Manual sets out guidelines as to how the Barclays Group's significant subsidiaries (and their respective Boards and Board Committees) should interact with each other, while providing guidance and clarity for management and Directors as to how these relationships and processes should work in practice. It is a dynamic document that evolves with the changing nature of the Barclays Group. The Board Executive and Non-Executive Directors share the same duties and are subject to the same constraints. However, a clear division of responsibilities has been established. The Chairman is responsible for leading the Board and its overall effectiveness in directing the Company, demonstrating objective judgement and promoting a culture of openness and inclusion, and facilitating and encouraging constructive challenge and debate between all Directors, and which challenges executives where appropriate. The Chairman facilitates constructive Board relations and the effective contribution of all Non-Executive Directors, and ensures Directors receive information in an accurate, timely and clear form that is relevant to discharge their obligations. It is the Board’s responsibility to ensure that management delivers on short-term objectives, whilst promoting the long-term success of the Company and the Barclays Bank Group. The BBPLC Matters Reserved to the Board ensures that appropriate coordination with the governance of the partially consolidated BPLC and BBPLC Boards is in place. The Matters Reserved to the Board specifies those decisions reserved solely to the decision-making power of the Board. Those matters include material decisions relating to strategy, risk appetite, medium term plans, capital and liquidity plans, risk management and controls frameworks, approval of financial statements, approval of large transactions and the approval of share allotments, dividends, share buy-backs and reputation risk with strategic implications relating to the Barclays Bank Group. The Board has | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 21 | ## Governance ## Corporate governance statement delegated the responsibility for making and implementing operational decisions and running the Company’s business on a day-to-day basis to the Chief Executive Officer, supported by the BBPLC Executive Committee. The current Board comprises a Chairman, who was independent on appointment, two Executive Directors and six independent Non- Executive Directors. The Board comprises a majority of independent Non-Executive Directors, bringing significant expertise and independent challenge. The independence of the Non-Executive Directors is considered by the Board Nominations Committee annually. The percentage of independent Non-Executive Directors, including the Chairman, on the Board is 78%.r In respect of its Committees, except for the Board Sustainability Committee whose membership comprises 83% independent Non-Executive Directors, the percentage of independent Non- Executive Directors on each of the Board Nominations Committee, Board Audit Committee, Board Risk Committee and Board Remuneration Committee is 100%.r There is no workforce representative on the Board or its Committees.r Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 Non-Executive Directors' time commitment and conflicts of interest Non-Executive Directors, including the Chairman, are informed of the minimum time commitment prior to their appointment and they are required to devote sufficient time to the Company to discharge their responsibilities effectively. The time commitments of Directors are considered prior to appointment and are monitored by the Board Nominations Committee. All Directors must seek approval (providing an indication of expected time commitment) before accepting any significant new commitments outside of Barclays. The Board is satisfied that there are no Directors whose time commitment is considered to be a matter for concern. A record of each Director's external time commitments is maintained by the Company. In accordance with the Companies Act 2006 (the Act) and the Company's Articles of Association (Articles), the Board has authority to authorise conflicts of interest, and this ensures that the influence of third parties does not compromise or override the independent judgement of the Board. A conflicts register is maintained by the Company, which is a record of actual and potential conflicts, together with any Board authorisation of the conflict. Executive Committee On 20 February 2024, Barclays announced the re-segmentation of its operating structure into five divisions. Four of those divisions sit within the Barclays Bank Group: UKCB, PBWM, the IB and USCB. During 2024, the BBPLC Executive Committee membership included the Chief Executive Officer, the President of BBPLC and Head of Investment Bank Management, the heads of the four operating divisions referenced above, the BBPLC Chief Financial Officer, BBPLC Chief Risk Officer and other BBPLC functional partners. We welcomed the following new members of the BBPLC Executive Committee in 2024, including to ensure the new operating divisions within BBPLC were represented as well as following other changes during the year: • Aunoy Banerjee, BBPLC and Investment Bank Chief Financial Officer • Matt Hammerstein, Chief Executive of the UK Corporate Bank • Tim Jones, BBPLC and Investment Bank HR Director • Denny Nealon, Chief Executive Officer for Barclays US Consumer Bank and Barclays Bank Delaware • Sasha Wiggins, Chief Executive of Private Bank and Wealth Management The BBPLC Executive Committee meets quarterly and is chaired by the President of BBPLC and Head of Investment Bank Management. In addition to the day-to-day management of the Company, the Executive Committee supports the Chief Executive Officer in ensuring that the Barclays values, strategy and culture align, are implemented and are communicated consistently to colleagues. | | | --- | | | | | Principle Three: Composition, succession and evaluation A board with the right balance of skills, experience and diversity is critical to the sustainable delivery of value to the company’s shareholder and broader stakeholders. The size of the board should be guided by the scale and complexity of the company and appointments should be based on merit and objective criteria, with a view to promoting diversity and subject to a formal, rigorous and transparent procedure, which is underpinned by an effective succession plan for board and senior management. A successful board is a cohesive board that provides informed and constructive challenge to the management team and measures its effectiveness. | | | --- | | | | | ▪ The membership of the Board is drawn exclusively from the BPLC Board. The size and composition of the Board is considered appropriate for the Barclays Bank Group. There is a good balance between Executive and independent Non-Executive Directors, with the Non-Executive Directors able to provide essential independent challenge. Board members have a strong combination of technical, financial (including significant financial services experience) and commercial skills along with broader experience in culture and colleague engagement. Further detail on industry and leadership experience and international experience, on the basis of Board composition as at 31 December 2024, is set out in the tables below.r ▪ All appointments to the Board and senior management are based on merit and objective criteria, with a continued strong belief in the benefits that diversity, in all its forms, brings to the Board. This includes in relation to gender, ethnicity, age, sexual orientation, disability and socio-economic background. Board appointments are made following a formal, rigorous and transparent process, facilitated by the Board Nominations Committee, with the aid of external search consultancy firms. ▪ The Company continues to strive to build an inclusive, diverse and equitable workplace, making the most of the different backgrounds, perspectives, and experiences of our colleagues to better serve the Barclays Bank Group's customers and clients. Further information, including in relation to Barclays' DEI strategy and progress in this area, can be found within the Colleagues section of the Barclays PLC Annual Report 2024 and in the Inclusion, diversity and equity section below. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 22 | ## Governance ## Corporate governance statement ▪ There is regular review of the leadership and succession needs of the business to maintain depth and diversity in the talent and succession pipeline at the Board, executive and key management level. This remains a key focus to maintain the quality of leadership that is in place to lead the business in the delivery of the Barclays Bank Group's strategy. ▪ Ongoing training and professional development is key in providing Board members with a deeper and more granular understanding of the business, contributing to informed and sound decision-making. Further information on training and induction for Directors in 2024 can be found in the Training and induction section later in this report. ▪ Effectiveness is supported through annual reviews of the Board, Board Committees and individual Directors. In 2024, the Board, Board Committee and individual Director effectiveness reviews were externally facilitated by Christopher Saul Associates (CSA), an independent, external corporate governance advisory firm with no connection to the Barclays Bank Group or any individual BBPLC Director other than as disclosed within the report of the Board Nominations Committee in the Barclays PLC Annual Report 2024. The BBPLC review was conducted in parallel with the external review of the BPLC Board, Board Committees and Directors. Key findings from the CSA review for the Board are set out below and for each Board Committee are set out later in this report. ▪ Feedback from the 2024 Board effectiveness review indicated that the Board is operating effectively, and that the Board is hard working, collegiate and well led, providing an appropriate level of constructive challenge and support to management. The interaction between the Board, Board Committees and senior management was commented upon favourably. Feedback indicates that concurrent meetings of the BPLC and BBPLC Boards remain effective and work well in practice. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Industry and leadership experience1 (number of Directors)r | | | International experience2 (number of Directors)r | | | Financial services | 10 | | UK | 10 | | Political/Regulatory Experience | 10 | | US | 5 | | Current/recent Chair/CEO | 7 | | Rest of the World | 5 | | Accountancy/Auditing | 5 | | | | | Operations/Technology | 2 | | | | 1 Diane Schueneman retired from the Board with effect from 31 January 2025. Individual Directors may fall into one or more categories. 2 Diane Schueneman retired from the Board with effect from 31 January 2025. International experience is based on the location of the headquarters/registered office of a company. Individual Directors may fall into one or more categories. Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 Board Nominations Committee The Board Nominations Committee is comprised solely of independent Non-Executive Directors. The Board Nominations Committee is chaired by Nigel Higgins, as Chair of the BBPLC Board. Julia Wilson is the other member of the Committee. Mohamed A. El-Erian stepped down from the Board Nominations Committee on 31 August 2024, and Diane Schueneman stepped down with effect from 31 January 2025. The Board Nominations Committee held three scheduled and no ad hoc meetings in 2024.r Mohamed A. El-Erian was unable to attend one meeting due to a prior commitment. Board Nominations Committee meetings were attended during the year by the Chief Executive Officer and the Barclays Group Human Resources Director. Attendance at Board Nominations Committee meetings during 2024 was as follows: | | | | | --- | --- | --- | | | | | | Member | Meetings attended / eligible to attend | Effective date | | Nigel Higgins (Chair) | 3/3 | Appointed 1 March 2019 | | Julia Wilson | 3/3 | Appointed 1 April 2023 | | Mohamed A. El-Erian | 1/2 | Stepped down 31 August 2024 | | Diane Schueneman | 3/3 | Stepped down 31 January 2025 | The principal role and responsibilities of the Board Nominations Committee, pursuant to its Terms of Reference, are: ▪ considering appointments to the Board, its Committees and boards of BBPLC's significant subsidiaries ▪ considering the composition of the Board and its Committees ▪ considering succession planning and talent management ▪ evaluating Board effectiveness ▪ assessing the length of Directors’ tenure ▪ considering Board induction and training ▪ considering governance matters. During 2024, the principal activities of the Board Nominations Committee included: ▪ Reviewing and approving Board and Board Committee size, composition and succession planning, taking into account tenure, time commitment, skills, knowledge, experience and diversity of the Directors, and identifying any desirable skills to aid the Company in operating and competing effectively (and leading the search and recruitment process). ▪ Receiving updates on the Company’s executive governance framework, executive talent and succession management, including Executive Committee succession planning and reviewing and approving proposed changes to Executive Committee composition. ▪ Continuing to support, alongside the Board, the Barclays Group’s global Gender Ambition and Multicultural agenda, including Barclays' Under-represented Race and Ethnicity Ambitions. You can read more about Barclays' approach to DEI, including Barclays’ DEI  strategy, and data on gender and ethnic diversity, within the Colleagues section of the Barclays PLC Annual Report 2024.r ▪ Re-affirming (and recommending to the Board for approval) the Board's existing gender and ethnic diversity targets in the Board Diversity and Inclusion Policy which was adopted in February 2024 for a further year until the end of 2025 (and which align to the targets adopted by Barclays PLC which reflect the requirements of the UK Listing Rules), as set out below and further detailed in the Inclusion, diversity and equity section: | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 23 | ## Governance ## Corporate governance statement | | | | --- | --- | | | | | Gender diversity target | To ensure that by 2025: (i) the proportion of women on the Board is at least 40%; and (ii) at least one of the following senior Board positions is held by a woman: Chair, Chief Executive, Senior Independent Director or Chief Financial Officer, and that this is to be maintained going forward. | | Ethnic diversity target | To ensure that at least one Board member is from an ethnic minority background excluding white ethnic groups, and that this is maintained going forward. | ▪ Receiving updates on succession planning for the Company's main subsidiary company boards. ▪ Considering an interim review of the 2023 Board effectiveness recommendations, and approving that an external Board, Board Committee and individual Director effectiveness review be undertaken in respect of 2024. The 2024 Board Nominations Committee effectiveness review was externally facilitated by CSA. The review was carried out in conjunction with the review of the BPLC Board Nominations Committee. The results of the review confirm the Committee is operating effectively. It is considered to be well constituted and chaired, providing an effective and appropriate level of constructive challenge and oversight of the areas within its remit. The Committee’s interaction with the Board, Board Committees and senior management is considered effective. The review recognised the importance that both the Committee and the Board place on effective succession planning for the Board and BBPLC Exco and key subsidiaries within the BBPLC Group. This work is coupled with a focus on broader talent development across the business. Feedback indicated that concurrent meetings of the BPLC and BBPLC Board Nominations Committee continue to be effective, with coverage of BBPLC matters considered appropriate. Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 Appointment and retirement of Directors The appointment and retirement of Directors is governed by the Articles, the Act and related legislation. The Articles may be amended only by a special resolution of the shareholders. The Board has the power to appoint additional Directors or to fill a casual vacancy amongst the Directors and any Director so appointed holds office only until the next AGM where they may offer themselves for re-election. The Board Nominations Committee regularly reviews the composition of the Board, Board Committees and Executive Committee and the core skills, experience, knowledge and diversity of thought required. For the Board, it is standard practice to appoint any new Non-Executive Director or Chair for an initial three-year term, which may be extended for up to a further three-year term. As such, Non-Executive Directors typically serve up to a minimum of six years, although this period may be extended where considered appropriate by the Board Nominations Committee. Inclusion, diversity and equity Having due regard to the benefits of diversity in all its forms - including in relation to gender, ethnicity, age, sexual orientation, disability and socio-economic background - is a vital element of the Board Nominations Committee’s role in leading appointments and succession planning for the Board, Board Committees and the Executive Committee. Both the Committee and the Board recognise the benefits of an inclusive and diverse Board, reflective of the communities in which Barclays operates, in driving effective decision-making. With this in mind, in December 2024, the Board re-affirmed the existing targets in the Board Diversity and Inclusion Policy, which was adopted by the Board in February 2024, which articulate these aims. As at the date of this report: • BBPLC Board gender diversity stands at 44%r female, meeting the Board target of 40% gender diversity. • 22%r of the Board (two Directors) are from a minority ethnic background (excluding minority white ethnic groups) and the Company also satisfies the Board's target of having at least one Board member who is from an ethnic minority background (excluding white ethnic groups). The Company recognises that being an inclusive, diverse and equitable company is an integral part of our success. Further information on DEI at Barclays can be found within the Colleagues section and Board Nominations Committee report in the Barclays PLC Annual Report 2024. Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 Training and induction Directors are provided with the opportunity to take part in ongoing training and development as part of the Board and Board Committee schedule, but can also request specific training as required. During 2024, Directors continued to deepen their understanding of the business through Board deep dives, covering the operating divisions within BBPLC as well as updates from key Barclays Group functions. The Board also received an annual briefing on the Senior Managers Regime and certain Barclays Compliance Risk policies and standards, including concerning financial crime. In addition, the Board received updates on developments in corporate governance matters. On appointment, all Directors receive a comprehensive induction tailored to their individual requirements, designed to provide them with an understanding of how the Barclays Bank Group works and the key issues that the Company and the Barclays Bank Group face. When a Director joins a Board Committee, the schedule also includes an induction to the operation of that Board Committee. | | | --- | | | | | Principle Four: Audit, risk and internal control A board should establish formal and transparent policies and procedures to (i) identify the nature and extent of principal risks the company is willing to take in order to achieve its long-term strategic objectives; (ii) manage such risks effectively; (iii) oversee the internal control | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 24 | ## Governance ## Corporate governance statement framework; (iv) promote the independence and effectiveness of internal and external audit functions; and (v) satisfy itself on the integrity of financial reporting. | | | --- | | | | | ▪ The Company is committed to operating within a strong system of internal controls that enables business to be transacted and risks taken without exposure to unacceptable potential losses or reputational damage. The principal risks facing the Barclays Bank Group have been identified and robust processes are in place to evaluate and manage such risks including regular reporting to, and oversight by, the Board Risk Committee and the Board. A key component of the risk management framework is the Enterprise Risk Management Framework (ERMF), which supports the business in its aim to embed effective risk management and a strong risk management culture. The ERMF is designed to identify and set minimum requirements, in respect of the main risks, to achieve the Company’s strategic objectives and to provide reasonable assurance that internal controls are effective. Further detail on the Principal Risks and management of them can be found in the Strategic report. ▪ The Board approves the Barclays Bank Group's risk appetite (the amount of risk the Barclays Bank Group is prepared to take to earn an appropriate return while meeting minimum internal and regulatory capital requirements in a severe but plausible stress environment), including testing whether the Barclays Bank Group’s financial position and risk profile provide sufficient resilience to withstand the impact of severe but plausible economic scenarios within the parameters set by the BPLC Board Risk Committee. ▪ The effectiveness of risk management and internal controls is reviewed regularly by the Board Risk Committee (responsible for overseeing the ERMF and current and potential future risk exposures) and the Board Audit Committee (responsible for evaluating the effectiveness of internal controls). ▪ The Board Audit Committee also has oversight of the financial reporting processes and the work of the external and internal auditors (including independence and effectiveness). Board Audit Committee The Board Audit Committee is comprised solely of independent Non-Executive Directors, with membership of the Board Audit Committee aligned with the BPLC Board Audit Committee and designed to provide the breadth of financial expertise and commercial acumen it needs to fulfil its responsibilities. Its members as a whole have recent and relevant experience of the banking and financial services sector, in addition to general management and commercial experience, and are financially literate. The Board Audit Committee is chaired by Julia Wilson, who has significant corporate finance, tax and accounting experience. Robert Berry and Marc Moses are the other members of the Committee. Diane Schueneman stepped down from the Board Audit Committee with effect from 31 January 2025. The Board Audit Committee held 14 scheduled meetings and two ad hoc meetings in 2024.r Julia Wilson was unable to attend one short ad hoc meeting, which was called at short notice, due to an unavoidable personal commitment. Diane Schueneman was unable to attend three scheduled meetings (held in short succession) due to a prior commitment and one scheduled meeting due to travel disruptions. Board Audit Committee meetings were attended by representatives from the Barclays Group and BBPLC management in respect of matters relevant to their business or function area, including (as appropriate) the Chief Executive Officer, Barclays Group Finance Director, the Group Controller, BBPLC Chief Financial Officer, the Barclays Group and BBPLC Chief Internal Auditor, the Barclays Group Chief Compliance Officer, the Barclays Group Chief Operating Officer, the Head of Group Control, and Barclays Group General Counsel. The Company’s statutory auditor, KPMG, also attended Committee meetings. As part of the Company’s commitment to effective oversight and allocation of responsibilities between the BPLC Board Audit Committee, BBPLC Board Audit Committee and the BBUKPLC Board Audit Committee, Julia Wilson held regular meetings during 2024 with the BBUKPLC Board Audit Committee Chair to share relevant information and to ensure embedment of information flows and governance practice. In addition, discussions were held with the Board Audit Committee Chairs of the Company’s other major subsidiaries, Barclays Bank Ireland PLC (Barclays Europe) and Barclays US LLC (IHC). Attendance at Board Audit Committee meetings during 2024 was as follows: | | | | | --- | --- | --- | | | | | | Member | Meetings attended (incl. ad hoc) / eligible to attend | Effective date | | Julia Wilson (Chair) | 15/16 | Appointed 1 April 2023 | | Robert Berry | 16/16 | Appointed 1 March 2022 | | Marc Moses | 16/16 | Appointed 23 January 2023 | | Diane Schueneman | 12/16 | Stepped down 31 January 2025 | The principal role and responsibilities of the Board Audit Committee, pursuant to its Terms of Reference, are to review and monitor: ▪ the integrity of the Barclays Bank Group’s financial statements ▪ the effectiveness of the Barclays Bank Group’s internal controls ▪ the independence and effectiveness of the internal and external audit processes ▪ the relationship with the Barclays Bank Group’s statutory auditor ▪ the effectiveness of the Barclays Bank Group’s whistleblowing procedures. During 2024, the principal activities of the Board Audit Committee included: • Financial reporting: assessing the appropriateness of BBPLC's financial disclosures, including considering feedback from KPMG and management's review of controls relating to financial reporting. The Committee reviewed and recommended to the BBPLC Board for approval the Barclays Bank PLC Annual Report 2023 and the Barclays Bank PLC Results Announcement for the period ended 30 June 2024. This review included consideration of how the new business segmentation was presented. The Committee recommended to the Board that the financial statements should be prepared on a going concern basis. The Committee also received an update on the reporting requirements under CSRD for BBPLC. ▪ Impairment: assessing management's approach to impairment coverage levels, including the impact of delinquency levels in certain areas of the portfolio, the use of post-model adjustments and in respect of material exposures across the Barclays Bank Group. ▪ Conduct provisions: analysing management's judgements and estimates made with regard to the Barclays Bank Group’s material conduct provisions. The Committee also sought KPMG's views on the timeliness and adequacy of provisioning in relation to conduct matters. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 25 | ## Governance ## Corporate governance statement ▪ Legal, competition and regulatory provisions: evaluating advice on the status of current legal, competition and regulatory matters and considering management’s judgements on the level of provisions, including challenging management on the timeliness of raising provisions as well as understanding areas of KPMG challenge. ▪ Valuations: monitoring the valuation methods applied by management to significant valuation items and areas of judgement, with a particular focus on the leverage finance portfolio. ▪ Tax: overseeing tax matters relating to the Barclays Bank Group, including tax risk provisions, regulatory matters and interactions with tax authorities. ▪ Internal controls and business control environment: monitoring and evaluating the status of the more significant control matters and remediation programmes across the Barclays Bank Group. The Committee also discussed reports from the heads of UKCB, PBWM, IB and USCB on their control environment, together with views from the second and third lines of defence. In addition, the Committee received a presentation on the control framework to support the commitments made in the Barclays Group Modern Slavery Statement and the implementation of the Barclays Group Human Rights Statement.r ▪ Internal audit: receiving reports from Barclays Internal Audit (BIA) in relation to specific audits, key areas of focus and themes arising with respect to businesses in the Barclays Bank Group; considering remediation plans arising from adverse audit reports and monitoring related remediation programmes; discussing BIA's assessment of the management control approach and control environment in the Barclays Bank Group; and approving the annual BIA audit plan for the Barclays Bank Group. Committee members, along with the Barclays Europe and IHC board audit committee chairs, attended a 'BIA Teach In' which covered BIA talent and succession planning for key internal audit roles across the Barclays Group (including BBPLC and material BBPLC subsidiaries), and BIA's use of artificial intelligence to support the effective provision of assurance work. ▪ External audit: reviewing and approving the annual external audit plan for the Barclays Bank Group (including the key areas of focus) and assessing the progress of the 2024 audit. The Committee also reviewed audit quality and discussed KPMG’s feedback and challenge of management on areas such as critical accounting estimates and judgements and internal controls. The Committee received updates on KPMG's provision of limited assurance on CSRD disclosures by BBPLC and Barclays Europe, having approved the engagement of KPMG to provide the work as a non-audit service. Following a request by the shareholder, the Committee recommended to the Board to put the external audit out to tender. Refer to page [33](#ifcab2a3f75cd4c07b9a99d17ce31aa7e_40613) for further details about the audit tender process. ▪ Raising concerns: reviewing management's reports on whistleblowing matters, monitoring key whistleblowing metrics, considering potential whistleblowing trends and discussing with management to understand the impact of the whistleblowing process on colleague experience and suggested ways in which speaking up amongst colleagues could be further encouraged.r The 2024 Board Audit Committee effectiveness review was externally facilitated by CSA. The review was carried out in conjunction with the review of the BPLC Board Audit Committee. The results of the review confirm the Committee is operating effectively. It is considered appropriately constituted and diligently chaired, providing an effective and appropriate level of constructive challenge and oversight of the areas within its remit, with agendas considered appropriate having regard to the Committee’s broad remit. The Committee’s interaction with the Board, Board Committees and senior management is considered effective. The review suggested that members would welcome additional training and external perspectives on topics of relevance to the work of the Committee. In addition, a continued focus on ensuring shorter and more focused papers which clearly identify the key matters for the Committee’s attention was considered beneficial. Feedback indicated that concurrent meetings of the BPLC and BBPLC Board Audit Committee continue to be effective, with coverage of BBPLC matters considered appropriate. Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 Board Risk Committee The Board Risk Committee is comprised solely of independent Non-Executive Directors with membership of the Committee broadly aligned with the BPLC Board Risk Committee. The Board Risk Committee is chaired by Robert Berry. Dawn Fitzpatrick, Marc Moses and Julia Wilson are the other members of the Committee. Diane Schueneman and Mohamed A. El-Erian stepped down from the Board Risk Committee on 31 May 2024 and 31 August 2024, respectively. Board Risk Committee meetings are attended by management as appropriate, including the Chief Executive Officer, Barclays Group Finance Director, BBPLC Chief Financial Officer, Barclays Group Chief Risk Officer, BBPLC Chief Risk Officer, Barclays Group Chief Compliance Officer, BBPLC Chief Compliance Officer, Barclays Group and BBPLC Chief Internal Auditor, and Barclays Group General Counsel. The Company’s statutory auditor, KPMG, also attended meetings. The Board Risk Committee held 10 scheduled meetings and no ad hoc meetings in 2024.r Owing to a prior commitment, Mohamed A. El- Erian and Diane Schueneman were each unable to attend one meeting. Dawn Fitzpatrick was unable to attend one meeting owing to jury duty and Julia Wilson was unable to attend one meeting due to an unavoidable personal commitment. Attendance at Board Risk Committee meetings during 2024 was as follows: | | | | | --- | --- | --- | | | | | | Member | Meetings attended / eligible to attend | Effective date | | Robert Berry (Chair) | 10/10 | Appointed 1 March 2022 | | Dawn Fitzpatrick | 9/10 | Appointed 1 January 2020 | | Marc Moses | 10/10 | Appointed 23 January 2023 | | Julia Wilson | 9/10 | Appointed 1 April 2023 | | Mohamed A. El-Erian | 5/6 | Stepped down 31 August 2024 | | Diane Schueneman | 3/4 | Stepped down 31 May 2024 | The principal role and responsibilities of the Board Risk Committee, pursuant to its Terms of Reference, are to: ▪ review, on behalf of the Board, the management of the principal risks as set out in the ERMF (with the exception of reputation risk with strategic implications relating to the Barclays Bank Group, which is a matter reserved to the Board) ▪ consider and recommend to the Board, within the risk parameters set by the BPLC Board Risk Committee, the Company’s risk appetite and tolerance for those principal risks | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 26 | ## Governance ## Corporate governance statement ▪ review, on behalf of the Board, the Barclays Bank Group’s risk profile for those principal risks ▪ commission, receive and consider reports on key risk issues. During 2024, the principal activities of the Board Risk Committee included: ▪ Advising the Board on the appropriate risk appetite and risk tolerance for the Barclays Bank Group in respect of the principal risks in the ERMF when determining strategy; reviewing and/or approving (as appropriate) risk limits throughout the year. ▪ Reviewing reports on key themes arising from the current and prospective macroeconomic, geopolitical, macro-prudential and financial environment and their impact on the Company’s risk appetite and risk profile. ▪ Reviewing updates on credit and market risk, with particular consideration given to the structured lending and finance and leveraged finance portfolios, and actions taken to mitigate rising risk. ▪ Receiving regular reporting on areas of elevated climate risk and progress against sector targets. ▪ Considering and approving the Company’s internal stress test themes and the results of internal stress testing, and approved the results of the internal reverse stress test. ▪ Considering reports on the IHC's 2024 horizontal capital exam outcomes, 2024 US regulatory stress test outcomes, and its supervisory capital rating and new capabilities. ▪ Considering macroeconomic developments, including the evolving rates environment, US Government fiscal position, disintermediation, EU geopolitical and economic landscape and execution risk arising in relation to the execution of the Barclays Bank Group elements of the Barclays Group's strategy. ▪ Receiving reports on enhancements to regulatory reporting. ▪ Monitoring the capital, liquidity and financial resources of BBPLC to ensure it meets its regulatory requirements and obligations, taking into account potential impacts of the increased cost of living, geopolitical tensions, and other macroeconomic factors. ▪ Reviewing and considering the operational risks arising from the Company’s procedures, processes, systems and policies. The Committee continues to oversee work to drive robust operational risk management across the Barclays Bank Group, with the severe systems incident in early 2025 impacting many areas of our UK business a reminder of the need for continued vigilance in this area. ▪ Overseeing the management of compliance risk within BBPLC, and the performance of the Compliance function. ▪ Overseeing the Company’s regulatory requirements, as they relate to risk management, including regulatory and internal capital and funding requirements, approving the Company’s Internal Capital Adequacy Assessment Process and Internal Liquidity Adequacy Assessment Process. ▪ Reviewing the frameworks, policies and resources in place to support effective risk management and oversight of the Barclays Bank Group.r ▪ Advising the Board Remuneration Committee when making remuneration adjustment decisions for 2024. ▪ Discussing reports on key risk areas specific to the Barclays Bank Group which were provided to the Board Risk Committee throughout the year including actions taken by central banks, geopolitical tensions and associated credit risk strategy. The Board Risk Committee continually considers the impact of issues on the Barclays Bank Group and the risk environment in which it operates. It reviews steps taken by the business to manage exposures in this context. The Committee also received focused presentations on a number of areas specific to the business and activities of Barclays Bank Group. The 2024 Board Risk Committee effectiveness review was externally facilitated by CSA. The review was carried out in conjunction with the review of the BPLC Board Risk Committee. The results of the review confirm the Committee is operating effectively. It is considered appropriately constituted and diligently chaired, providing an effective and appropriate level of constructive challenge and oversight of the areas within its remit. The Committee’s interaction with the Board, Board Committees and senior management is considered effective. Whilst agendas are considered appropriate having regard to the Committee’s broad remit, the review recommended that consideration be given to how future Committee agendas might be shaped towards more open-ended discussion and to bring in more external perspectives. A continued focus on ensuring shorter and more focused papers which clearly identify key matters for the Committee’s attention was considered beneficial. Feedback indicated that concurrent meetings of the BPLC and BBPLC Board Risk Committee continue to be effective, with coverage of BBPLC matters considered appropriate. Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 Audit, risk and internal control The Board, together with the Board Audit Committee, is responsible for ensuring the independence and effectiveness of the internal and external audit functions. For this reason, the Board Audit Committee held regular private sessions with each of the BBPLC Chief Internal Auditor and the lead audit engagement partner of the statutory auditor without management present. The Board is also responsible for ensuring that management maintains an effective system of risk management and internal control and assessing its effectiveness. Such a system is designed to identify, evaluate and manage, rather than eliminate, the risk of failure to achieve business objectives and can only provide reasonable, and not absolute, assurance against material misstatement or loss. The Board Audit Committee oversees the control environment (and remediation of related issues) and also reviews annually the risk management and internal control system. Key controls are assessed on a regular basis for both design and operating effectiveness. Issues arising out of these assessments, where appropriate, are reported to the Board Audit Committee. The Board Audit Committee is supported in its review of internal controls by the assurance conducted by BIA. The severe systems incident in early 2025 impacting many areas of our UK business is a reminder of the need for continued focus in the management of operational risk. Controls over financial reporting A framework of disclosure controls and procedures is in place to support the approval of the financial statements of the Barclays Bank Group. Specific governance committees are responsible for examining the financial reports and disclosures to help ensure that they have been subject to adequate verification and comply with applicable standards and legislation. Where appropriate, these committees report their conclusions to the Board Audit Committee, which debates such conclusions and provides further challenge. Finally, the Board scrutinises and approves results announcements and the Annual Report to ensure that appropriate | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 27 | ## Governance ## Corporate governance statement disclosures have been made. This governance process is designed to ensure that both management and the Board are given sufficient opportunity to debate and challenge the financial statements of the Barclays Bank Group and other significant disclosures before they are made public. Management's report on internal control over financial reporting Management is responsible for establishing and maintaining adequate internal controls over financial reporting under the supervision of the principal executive and financial officers, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements, in accordance with (a) UK-adopted international accounting standards; (b) International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), including interpretations issued by the IFRS Interpretations Committee; and (c) IFRS adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. Internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail: ▪ accurately and fairly reflect transactions and dispositions of assets ▪ provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with UK-adopted international accounting standards and IFRS and that receipts and expenditures are being made only in accordance with authorisations of management and the respective Directors ▪ provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use or disposition of assets that could have a material effect on the financial statements. Internal control systems, no matter how well designed, have inherent limitations and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that internal control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. Management has assessed internal control over financial reporting as at 31 December 2024. In making its assessment, management utilised the criteria set out in the 2013 COSO framework. Management has concluded that, based on its assessment, internal control over financial reporting was effective as at 31 December 2024. The system of internal financial and operational controls is also subject to regulatory oversight in the UK and overseas. Further information on supervision by financial services regulators is provided under Supervision and Regulation in the Risk review section on pages [233](#ia16d0659cd524c01ae655d82fa382c3d_394) to [244](#ia490fb2b67a142fe832c7151eb48fd6b_353303). Changes in internal control over financial reporting There have been no changes that occurred during the period covered by this report, which have materially affected or are reasonably likely to materially affect the Barclays Bank Group’s internal control over financial reporting. | | | --- | | | | | Principle Five: Remuneration The remuneration policies and practices should support strategy and promote long-term sustainable success and be developed in accordance with formal and transparent procedures, ensuring no Director is involved in deciding their own remuneration outcome. Executive remuneration should be aligned to the company’s purpose and values and the successful delivery of the strategy with outcomes taking account of company and individual performance, and wider circumstances such as pay across the company’s workforce and Barclays' Fair Pay Agenda. | | | --- | | | | | ▪ The Barclays Group Remuneration Policy is set by the BPLC Board Remuneration Committee and reviewed and adopted by the BBPLC Board Remuneration Committee. The policy ensures that remuneration is aligned to the Barclays Bank Group's strategy and risk management approach and is designed to promote the long-term success of the Company. ▪ Remuneration for executives and senior management is considered in the context of the wider workforce remuneration and alignment of incentives and rewards with performance and culture. Their remuneration is reviewed annually by the BBPLC Board Remuneration Committee and the BPLC Board Remuneration Committee, as appropriate. No individual is involved in deciding their own remuneration. ▪ The Barclays Bank Group is committed to paying people fairly, with regards to their specific role, seniority, responsibilities, skills and experience and other factors that properly affect pay, in a way that balances the needs of the Barclays Bank Group's stakeholders. You can find more information on the Barclays Fair Pay Agenda which underpins all remuneration decisions in the Barclays Fair Pay Report 2024. The Barclays Bank Group also remains focused on closing its gender and ethnicity representation gaps where they exist, and the pay gaps that result, by increasing the representation of females and employees from under-represented minority group at more senior levels. You can find more information in the Barclays Group's UK Pay Gaps 2024 disclosure. Board Remuneration Committee The Board Remuneration Committee is comprised solely of independent Non-Executive Directors. The Committee is chaired by Mary Francis. Dawn Fitzpatrick and Julia Wilson are the other Committee members. Nigel Higgins regularly attended meetings of the Board Remuneration Committee during 2024 and was appointed as an additional Committee member with effect from 31 January 2025. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 28 | ## Governance ## Corporate governance statement The Board Remuneration Committee held five scheduled and no ad hoc meetings in 2024.r Meetings were attended by the Group Chief Executive, Group Finance Director, Group Chief Risk Officer, Group Human Resources Director, and the Group Reward and Performance Director as required. Attendance at Board Remuneration Committee meetings during 2024 was as follows: | | | | | --- | --- | --- | | | | | | Member | Meetings attended / eligible to attend | Effective date | | Mary Francis | 5/5 | Appointed 25 September 2019 | | Dawn Fitzpatrick | 5/5 | Appointed 1 July 2021 | | Julia Wilson | 5/5 | Appointed 1 July 2023 | The principal role and responsibilities of the Committee, pursuant to its Terms of Reference, are to: ▪ set the overarching principles of remuneration policy for the Barclays Bank Group within the parameters set by the BPLC Board Remuneration Committee ▪ consider and endorse the incentive pool for the Barclays Bank Group and the remuneration of key BBPLC executives and other specified individuals as determined by the Board Remuneration Committee from time to time ▪ exercise oversight of remuneration issues within the Barclays Bank Group. During 2024, the principal activities of the Committee included: ▪ Reviewing and adopting the Barclays Group People Risk Reward Policy. ▪ Reviewing the Board Remuneration Committee's Control Framework, Terms of Reference, annual activity and effectiveness. ▪ Reviewing and adopting the methodology and framework for 2024 incentive funding, and reviewing and endorsing the resulting incentive pool, including considering financial performance and risk updates (and the appropriateness of risk adjustments to incentives). ▪ Considering the appropriate bonus cap to set for BBPLC Material Risk Takers, and adopting a formal cap of 10:1, effective from performance-year 2024. A 2:1 bonus cap continues to apply in certain businesses that are subject to ongoing EU regulations, which continue to mandate this. ▪ Reviewing progress against the Fair Pay Agenda and the gender and ethnicity pay gaps for the year.r ▪ Considering regular updates on stakeholders matters, regulatory and legal considerations and payround considerations. ▪ Reviewing and approving, as appropriate, specific remuneration proposals for individuals within the Committee’s remit. The 2024 Board Remuneration Committee effectiveness review was externally facilitated by CSA. The review was carried out in conjunction with the review of the BPLC Board Remuneration Committee. The results of the review confirm the Committee is operating effectively. It is considered to be well constituted and chaired, providing an effective and appropriate level of constructive challenge and oversight of the areas within its remit, including in respect of areas of judgement and discretion. The Committee’s interaction with the Board, Board Committees and senior management is considered effective. Feedback indicated that the Committee’s interaction with the BPLC Board Remuneration Committee continues to be effective. Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 | | | --- | | | | | Principle Six: Stakeholder relationships and engagement Directors should foster effective stakeholder relationships aligned to the company’s purpose. The board should recognise the importance of listening to, and understanding, the views of its stakeholders, including the workforce, and specifically the impact of the company’s behaviour and business on customers and clients, colleagues, suppliers, communities and society more broadly; having regard to these views and impact when taking decisions. | | | --- | | | | | ▪ As described under Principle One, the Company has a defined Purpose and strategy; through this the Board has identified key stakeholders on whom the success of the Company depends. ▪ The Board and management engage throughout the year with the Company's stakeholders. The Board seeks to understand the views of key stakeholders and the impact of the Company’s behaviour and business on customers and clients, colleagues, suppliers, communities and society more broadly. Refer to pages [12](#ia16d0659cd524c01ae655d82fa382c3d_43) to [14](#ia16d0659cd524c01ae655d82fa382c3d_52) of the Strategic report for further information about our engagement with stakeholders. See also the Directors' report for information about how we engage with suppliers. ▪ The Company’s long-standing commitment to the importance and value of colleague engagement continues; the Company’s people are its most valuable asset. While there is no designated workforce engagement Director on the BBPLC Board, the Board receives feedback on culture and colleague engagement during the year through, for example, updates on colleague and workforce matters presented to Board meetings. Board members also have the opportunity to engage with colleagues during the year at colleague events. Further detail on the Company’s workforce commitment and engagement model can be found in the Colleagues section on page [13](#ia16d0659cd524c01ae655d82fa382c3d_46) of the Strategic report. ▪ The Board Sustainability Committee supports the Board's oversight of climate and sustainability matters, in accordance with its Terms of Reference. Board Sustainability Committee The Board Sustainability Committee comprises a majority of independent Non-Executive Directors, with membership of the Committee broadly aligned with the BPLC Board Sustainability Committee. The Board Sustainability Committee is chaired by Nigel Higgins. Robert Berry, Dawn Fitzpatrick, Mary Francis, C.S. Venkatakrishnan and Julia Wilson are also members of the Committee. The Board Sustainability Committee held five scheduled and no ad hoc meetings in 2024.r Owing to a prior commitment, C.S. Venkatakrishnan and Dawn Fitzpatrick were each unable to attend one meeting. Board Sustainability Committee meetings are attended by management including the Head of Public Policy and Corporate Responsibility, Group Head of Sustainability, Group Head of Sustainable and Transition Finance, and the Head of Legal, Public Policy and Corporate Responsibility. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 29 | ## Governance ## Corporate governance statement Attendance at Board Sustainability Committee meetings during 2024 was as follows: | | | | | --- | --- | --- | | | | | | Member | Meetings attended / eligible to attend | Effective date | | Nigel Higgins (Chair) | 5/5 | Appointed 23 March 2023 | | Robert Berry | 5/5 | Appointed 23 March 2023 | | Dawn Fitzpatrick | 4/5 | Appointed 23 March 2023 | | Mary Francis | 5/5 | Appointed 23 March 2023 | | CS Venkatakrishnan | 4/5 | Appointed 23 March 2023 | | Julia Wilson | 5/5 | Appointed 1 April 2023 | The principal role and responsibilities of the Board Sustainability Committee, pursuant to its Terms of Reference, are: ▪ supporting and advising the Board on its oversight of climate and sustainability matters relating to (i) the services and products provided to the Company's clients and customers, (ii) particular sectors, and (iii) its own corporate activities ▪ supporting the Board in monitoring the implementation of the Company’s climate and sustainability strategy ▪ reviewing and making recommendations to the Board on the suitability of the Company’s climate and sustainability strategy, position statements, frameworks, ambitions, metrics, and targets ▪ reporting to the Board on the climate and sustainability matters for which it is responsible, escalating issues and making recommendations to the Board where appropriate. During 2024, the principal activities of the Committee included:r ▪ Overseeing developments in our Sustainable Finance Strategy, which saw continued progress toward our sustainable and transition financing target. ▪ Examining the potential market barriers in relation to client transitions, and policy changes required to enable a better client transition aligned to a goal of 1.5C. ▪ Receiving updates on the energy related sections of Barclays’ Climate Change Statement, including the planned updates to that statement and the impact of those updates. ▪ Receiving updates from management on opportunities to make further progress on achieving 2030 financed emissions sector targets, considering financial impacts, risks and actions required for real world transition. ▪ Receiving an external briefing on human rights, further details of which are set out below in Additional information relating to sustainability matters. The 2024 Board Sustainability Committee effectiveness review was externally facilitated by CSA. The review was carried out in conjunction with the review of the BPLC Board Sustainability Committee. The results of the Committee effectiveness review confirm the Committee is operating effectively. It is considered well constituted and chaired, providing an effective and appropriate level of constructive challenge and oversight of the areas within its remit. The Committee’s interaction with the Board, Board Committees and senior management is considered effective. A continued focus on the potential overlap between the work of the Committee and that of the Board Audit and Risk Committees was considered beneficial. The review suggested that there may be merit in considering how agendas for future Committee meetings might be shaped to include regular horizon scanning items for emerging topics and to create opportunities for Committee members to hear from third party experts. Feedback indicated that concurrent meetings of the BPLC and BBPLC Board Sustainability Committee are effective, with coverage of BBPLC matters considered appropriate. Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 Additional information relating to sustainability mattersΔ Board and Board Committee oversight of sustainability matters The Board sets the strategic direction for BBPLC and has direct oversight of matters relating to culture. Further details on the role and responsibilities of the Board are set out in Principle One: Board Leadership and company purpose. Further to this, the Board and, as appropriate, its Committees oversee sustainability matters which may, where appropriate, include material impacts, risks and opportunities (IROs) as relevant. The Matters Reserved to the Board sets out those matters reserved to the Board, which include material decisions relating to strategy, risk appetite, risk management and controls frameworks and the approval of large transactions among other matters. The Board considers a range of matters in its decision-making process, which may include, where appropriate, consideration of any material IROs, as relevant. Each Committee has its own Terms of Reference setting out its principal role and responsibilities and incorporating oversight of our IROs where appropriate. In particular: • Recognising the importance of climate and sustainability matters and the growing importance of other sustainability areas including nature and biodiversity, the Board established the Board Sustainability Committee in 2023 to support and advise the Board in its oversight of climate and sustainability matters, including related risks and opportunities. The Chief Executive Officer is an Executive member of the Board Sustainability Committee and in that role brings invaluable climate and sustainability insights to the Committee’s discussions, including external perspectives from his outside appointments. • The Board Risk Committee oversees risk appetite and management of principal risks, including climate risk. In evaluating BBPLC’s risk profile, the Committee’s considerations include the risk of financial losses arising from climate change through physical risks and risks associated with transitioning to a low-carbon economy and progress against the Barclays Group’s financed emissions reduction targets (insofar as BBPLC contributes to these targets). • The role of the Board Remuneration Committee includes exercising oversight over remuneration issues within the BBPLC Group, including the Fair Pay Agenda and gender and ethnicity pay gaps. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 30 | ## Governance ## Corporate governance statement The Matters Reserved to the Board and Committee Terms of Reference are reviewed on a regular basis and updated as required, including if appropriate, to reflect changes in the nature of BBPLC's business and any relevant material IROs. The Board and, as appropriate, its Committees oversee the setting of certain targets that are material to the Barclays Bank Group and monitor progress towards them in accordance with the Matters Reserved to the Board and Committee Terms of Reference respectively. The Board and Board Sustainability Committee oversee the setting of material climate-related targets, aligning with the Barclays Group’s broader sustainability goals. The Board Sustainability Committee has responsibility for considering changes to the Barclays Group’s financed emissions reduction targets (insofar as BBPLC contributes to these targets) and the Board Risk Committee monitors progress against these targets and may, at the discretion of the Chair, escalate target performance matters to the Board Sustainability Committee for its consideration. In 2024, the Board Risk Committee received regular reporting on areas of elevated climate risk and progress against sector targets. Skills and expertise related to sustainability matters Board members and members of relevant Board Committees (for example, the Board Sustainability Committee) are able to reflect on and deepen their skills and expertise on sustainability matters, including in relation to our IROs as relevant, through periodic briefings on key business developments and external developments provided by management. In the context of an evolving legal and regulatory environment with respect to climate and sustainability, the Board received a briefing on the external reporting landscape in this area, including in respect of the disclosure requirements under the Corporate Sustainability Reporting Directive. Further information regarding briefings related to our material sustainability matters (including where appropriate updates regarding their management) provided to the Board during 2024 can be found in Principle One: Board leadership and company purpose (see the 'What the Board did in 2024' section). Information regarding the key sustainability-related activities of relevant Committees in 2024 can be found in Principle Three: Composition, succession and evaluation, Principle Four: Audit, risk and internal control, Principle Five: Remuneration and Principle Six: Stakeholder relationships and engagement. Where the Board or a Board Committee identifies that additional expertise and insight would be helpful to support informed decision- making, they are able to call on internal subject matter experts to provide additional briefings and training on particular material sustainability matters. Where appropriate, training may be requested from relevant external experts. Recognising the importance of external perspectives and the current landscape, members of the Board Sustainability Committee received an external briefing on business, human rights and the financial sector. With an increasing reputational, regulatory and legal focus arising from human rights, the briefing covered matters including the UN Guiding Principles on Business and Human Rights and the scope of business responsibility to respect human rights. This session provided valuable insights on the external human rights landscape and supported the Committee’s understanding of relevant frameworks and responsibilities. Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000 | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 31 | ## Governance report ## Directors’ report The Directors present their report together with the audited accounts for the Company for the year ended 31 December 2024. Section 414A of the Act requires the Directors to present a Strategic report in the Annual Report. The report can be found on pages [1](#ia16d0659cd524c01ae655d82fa382c3d_13) to [16](#i39255c531511426a9e07a1b166cd0e25_5184) . BBPLC has addressed the Non-Financial Reporting requirements contained in sections 414CA and 414CB of the Act through the disclosure contained in the Barclays PLC Annual Report 2024 on pag es 41 to 48. In addition, the Company has chosen, in accordance with section 414C(11) of the Act, and as noted in this Directors’ report, to include certain matters in its Strategic report that would otherwise be disclosed in this Directors’ report: • An indication of likely future developments may be found in the Strategic report. • The particulars of important events affecting the Company since the financial year end can be found in the Strategic report and Note 24 (Legal, competition and regulatory matters) to the financial statements. Other information that is relevant to the Directors’ report, and which is incorporated by reference into this report, can be located at: | | | | --- | --- | | | | | | Pages | | Performance measures | [6](#ia16d0659cd524c01ae655d82fa382c3d_25) to [8](#i63659fc2b09f4cfe9a49d902af4c1396_7277) | | Corporate governance statement | [18](#ia16d0659cd524c01ae655d82fa382c3d_67) to [30](#i29c2b780fba64e579b29661f9a58f3e6_311944) | | Sustainability statement | [35](#ia16d0659cd524c01ae655d82fa382c3d_6560) to [117](#i5b9d0f9d423340e793a79c0f3a322443_141188) | | Risk Management | [123](#ia16d0659cd524c01ae655d82fa382c3d_91) to [125](#i668d92d07ba74de3af3e1f251f36add2_2076) | | Principal Risks | 9 -11, [123](#ief02015a0d514f55bec30a65caa4024e_2775), [141](#ia16d0659cd524c01ae655d82fa382c3d_151) to [152](#i7292d8f03512412883ddbbaf55b6816f_16560) | | | | | Disclosures required pursuant to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 as updated by the 2018 Regulations can be found on the following pages: | | | Engagement with employees (Sch.7 Para 11 and 11A Regs 2008/2018 and Section 172(1) Statement) | [13](#ia16d0659cd524c01ae655d82fa382c3d_46) | | Financial Instruments (Sch.7 Para 6 Regs 2008) | [299](#ia16d0659cd524c01ae655d82fa382c3d_547) | | Hedge accounting policy (Sch.7 Para 6 Regs 2008) | [302](#ia3617309d76648f59043e56953462e6d_3518) | | | | Profits and dividends The results of the Barclays Bank Group show statutory profit after tax of £3,748m (2023 : £3,561m). The Barclays Bank Group had net assets of £ 59,220m as at 31 December 2024 (2023 : £ 60,504m). The Company declared a £1,195m dividend to its parent, Barclays PLC, in respect of 2024, which is expected to be paid on or around 13 February 2025. Dividends paid on preference shares for the year ended 31 December 2024 amounted to £41m (2023: £40m ). Further details on dividends on ordinary shares and preference shares paid in 2024 are set out in Note 10 to the financial statements. Share capital There was no increase in ordinary share capital during the year. BPLC owns 100% of the issued ordinary shares. There are no restrictions on the transfer of ordinary shares or agreements between holders of ordinary shares known to the Company which may result in restrictions on the transfer of securities or voting rights. Further information on the Company’s share capital, including preference shares, can be found in Note 26 of the financial statements. Shareholder rights in relation to shareholder meetings The Company is required to hold an annual general meeting each year in addition to such other general meetings as the directors think fit. 21 clear days' notice must be given for an annual general meeting and 14 days' clear notice must be given for any other general meeting. The Company is also required to hold a general meeting if so requested by a shareholder or shareholders representing at least 5% of such of the paid-up capital of the Company as carries the right of voting at general meetings of the Company. Such a meeting must be called within 21 days of the Company being required to hold such a meeting and must be held not more than 28 days after the notice convening such a meeting. Notice of a general meeting must be in writing and must specify the place, the day and time of meeting, and the general nature of the business to be transacted. If a special resolution is proposed, the notice must also specify the intention to propose the resolution as such. Subject as noted below, all shareholders are entitled to attend and vote at general meetings. The quorum for a general meeting is two qualifying persons present and entitled to vote. Voting is done on a show of hands unless a poll is properly demanded by the chair of the meeting or any shareholder entitled to vote on the resolution. Shareholders may vote at a general meeting in person or by proxy or, in the case of a corporation, by a duly appointed corporate representative. At a general meeting, shareholders vote on matters which are required to be approved by shareholders, by ordinary resolution or special resolution, as a matter of law or in accordance with the articles of association. An ordinary resolution is passed, on a show of hands, by a simple majority of votes cast or, on a poll, by shareholders representing a simple majority of total voting rights of the voting shareholders. A special resolution is passed, on a show of hands, by a majority of not less than 75% of the votes cast or, on a poll, by shareholders representing not less than 75% of the total voting rights of the voting shareholders. Holders of preference shares have no right to receive notice of, attend or vote at, any general meetings of the Company. Powers of Directors to issue and allot or buy back the Company’s shares The powers of the Directors are determined by the Act and the Articles. No shares were issued or bought back in 2024. The Directors are authorised to issue and allot shares and to buy back shares subject to annual shareholder approval at the AGM. Such authorities were | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 32 | ## Governance report ## Directors’ report granted by shareholders at the 2024 AGM. It will be proposed at the 2025 AGM that the Directors be granted new authorities to allot and buy back shares. Repurchase of shares The Company did not repurchase any of its shares in 2024. Directors The list of current Directors of the Company can be found in the Corporate Governance Statement on page [18](#ia16d0659cd524c01ae655d82fa382c3d_67). Changes to Directors during 2024 and up to the date of this report are set out below. | | | | | --- | --- | --- | | | | | | Name | Role | Effective date | | Brian Shea | Non-Executive Director | Appointed 19 July 2024 | | Mohamed A. El-Erian | Non-Executive Director | Stepped down 31 August 2024 | | Diane Schueneman | Non-Executive Director | Stepped down 31 January 2025 | Directors’ indemnities Qualifying third party indemnity provisions (as defined by section 234 of the Act) were in force during the course of the financial year ended 31 December 2024 for the benefit of the then Directors of the Company and the then directors of certain of the Company's subsidiaries and, at the date of this report, are in force for the benefit of the Directors of the Company and the directors of certain of the Company's subsidiaries in relation to certain losses and liabilities which they may incur (or have incurred) in connection with their duties, powers or office. The Barclays Group also maintains Directors’ & Officers’ Liability Insurance which gives appropriate cover for legal action brought against its Directors. Qualifying pension scheme indemnity provisions (as defined by section 235 of the Act) were in force during the course of the financial year ended 31 December 2024 for the benefit of the then directors and, at the date of this report are in force for the benefit of directors of Barclays Pension Funds Trustees Limited as trustee of the Barclays Bank UK Retirement Fund, and Barclays Executive Schemes Trustees Limited as Trustee of Barclays Capital International Pension Scheme (No.1) and Barclays PLC Funded Unapproved Retirement Benefits Scheme. The directors of the trustees are indemnified against liability incurred in connection with the trustee’s activities in relation to the aforementioned schemes. Political donations The Barclays Bank Group did not give any money for political purposes in the UK or outside the UK, nor did it make any political donations to political parties or other political organisations or to any independent election candidates, or incur any political expenditure during the year. Details of any political contributions made by the wider Barclays Group can be found in the Barclays PLC Annual Report 2024. Support for candidates and colleagues with disabilities and long-term conditions Barclays' commitment to inclusion means we want to ensure that candidates with disabilities and long-term health conditions receive support and adjustments in the application process and beyond. Barclays welcomes applications from all candidates and is committed to ensuring reasonable adjustments (accommodations) are put in place to ensure a fair and inclusive candidate experience. Barclays is committed to providing all colleagues with the support and tools they need to have a productive and fulfilling career. We can consider making adjustments to remove or reduce barriers colleagues might face if they have a disability, health concern or mental health condition. We also ensure opportunities for training, career development and promotion are available to all. Engagement with customers, suppliers and others in a business relationship with the Company Barclays must effectively manage, monitor and mitigate risks in our supply chain. The Directors, via management, have regard to the need to foster business relationships with suppliers. We expect our Third Party Service Providers (TPSP) to make responsible decisions that, where relevant, take our stakeholders’ needs into account in both the short and the long term. Barclays expects the TPSPs to comply with applicable laws, regulations and standards within the geographies in which they operate. Barclays’ standard approach to new TPSP on- boarding and renewal begins by assessing the services that are being provided and ascertaining the level of risk. TPSPs that are assessed as being above a low risk of exposure from a business risk perspective (at the point of onboarding and on an ongoing basis) are subject to Barclays’ Supplier Control obligations (SCOs). TPSPs to whom the SCOs apply become managed TPSPs and are subject to ongoing management and controls assurance during the term of service. Prior to contractual agreement and service go live, these TPSPs are required to complete a pre-contractual questionnaire which captures their adherence to the SCOs and Barclays’ TPSP Code of Conduct (TPSP CoC). The TPSP CoC encourages our TPSPs to adopt our approach to doing business and details our expectations for matters including environmental management and human rights, and also for living the Barclays Values. Barclays works closely with the Small Business Commissioner and other organisations, including Good Business Pays, to raise awareness to the public and larger businesses on late payments and the impact these can have on businesses and business owners. For information on our engagement with customers and clients, please refer to page [12](#ia16d0659cd524c01ae655d82fa382c3d_43) of the Strategic report and the Customers and clients section of the Barclays PLC Annual Report 2024. Branches and Country-by-Country reporting The Barclays Bank Group operates through branches, offices and subsidiaries in the UK and overseas. Those branches are in a number of different jurisdictions including in Hong Kong, Singapore and New York. The Company is exempt from publishing information required by the Capital Requirements (Country-by-Country Reporting) Regulations 2013 as this information is published by its parent, BPLC. This information is available on the Barclays website: home.barclays/annualreport. Research and development In the ordinary course of business, the Barclays Bank Group develops new products and services in each of its business divisions. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 33 | ## Governance report ## Directors’ report Key intangible resources Our key intangible resources are those resources without physical substance on which our business model fundamentally depends. We deploy them to serve the financial needs of our diversified customer base, delivering value through synergies, providing clear outcomes for our stakeholders. They include our: • People, purpose, values and mindset - Our people are our organisation. We deliver success through a purpose-driven and inclusive culture; • Brand - Our brand equity instils trust, lowers the cost of acquiring customers and clients and helps retain them for longer; and • Technology and infrastructure - Our deep technology and infrastructure capabilities drive customer experiences and support strong resiliency. Change of control There are no significant agreements to which the Company is a party that take effect, alter or terminate on a change of control of the Company following a takeover bid. There are no agreements between the Company and its Directors or employees providing for compensation for loss of office or employment that occurs because of a takeover bid. Statutory auditor The BPLC Board Audit Committee reviews the appointment of the Barclays Group statutory auditor, as well as their relationship with the Barclays Group, including monitoring the Barclays Group’s use of the statutory auditors for non-audit services and the balance of audit and non-audit fees paid to them. The BBPLC Board Audit Committee also monitors the use of the statutory auditor for non-audit services within the Barclays Bank Group. In December 2024, Barclays PLC announced its intention to conduct a formal tender process for the role of statutory auditor for the Barclays Group (including Barclays Bank PLC) with effect from the 2027 financial year onwards. After recommendation by the BBPLC Board Audit Committee upon request of the BPLC Board, the BBPLC Board approved the commencement of the formal audit tender process for the statutory auditor. The audit tender process will be overseen by the BPLC Board Audit Committee (with support from the BBPLC Board Audit Committee) and is expected to conclude in June 2025. An announcement will be made by Barclays PLC following the selection of the preferred firm by the BPLC Board. Please refer to the report of the Board Audit Committee in the Barclays PLC Annual Report 2024 for further information about the audit tender process. Non-audit services In order to safeguard the statutory auditor’s independence and objectivity, the Barclays Group has in place a policy on the Provision of Services by the Barclays Group Statutory Auditor (the Policy) setting out the circumstances in which the statutory auditor may be engaged to provide services other than those covered by the Barclays Group audit. The Policy applies to all Barclays subsidiaries and other material entities over which Barclays has significant influence. The core principle of the Policy is that non-audit services (other than those legally required to be carried out by the Barclays Group’s auditor) should be performed by the statutory auditor only in certain controlled circumstances. The Policy sets out those types of services that are permitted. Under the Policy, except for specific categories of ‘permitted’ services that require explicit Board Audit Committee approval, the BPLC Board Audit Committee has pre-approved all permitted services for which fees are less than £100,000. All requests to engage the statutory auditor are assessed by independent management before work can commence. Requests for permitted service types in respect of which the fees are expected to meet or exceed the above threshold, but expected to be less than £250,000, must be approved by the Chair of the BPLC Board Audit Committee before work is permitted to begin. Services where the fees are expected to be £250,000 or higher must be approved by the BPLC Board Audit Committee as a whole. All expenses and disbursements must be included in the fees calculation. More information on the Policy can be found in the Barclays PLC Annual Report 2024. The fees payable to KPMG for the year ended 31 December 2024 amounted to £57m (2023: £49m), of which £15m (2023: £9m) was payable in respect of non-audit services. A breakdown of the fees payable to the auditor for statutory audit and non-audit work can be found in Note [38](#ia16d0659cd524c01ae655d82fa382c3d_856) to the financial statements. Disclosure of information to the Auditor Each Director confirms that, so far as they are aware, there is no relevant audit information of which the Company’s auditor is unaware and that each of the Directors has taken all the steps that they ought to have taken as a Director to make themself aware of any relevant audit information and to establish that the Company's auditor is aware of that information. This confirmation is given pursuant to section 418 of the Act and should be interpreted in accordance with and subject to those provisions. Directors’ responsibilities The following statements, which should be read in conjunction with the auditor’s report set out on pages [246](#ia16d0659cd524c01ae655d82fa382c3d_412) to [267](#i3db6fc5ba1d149f9befee11be42b484f_9165), are made with a view to distinguishing for shareholders the respective responsibilities of the Directors and of the auditor in relation to the accounts. Going concern In preparing each of the Barclays Bank Group and Company financial statements, the Directors are required to: • assess the Barclays Bank Group's and Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and • use the going concern basis of accounting unless they either intend to liquidate the Barclays Bank Group and the Company or to cease operations, or have no realistic alternative but to do so. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 34 | ## Governance report ## Directors’ report The Barclays Bank Group’s business activities, financial position, capital, factors likely to affect its future development and performance, and its objectives and policies in managing the financial risks to which it is exposed are discussed in the Strategic report and Risk review sections of this report. The Directors have evaluated these risks in the preparation of the financial statements and consider it appropriate to prepare the financial statements on a going concern basis. Preparation of accounts The Directors are required by the Act to prepare the Company and the Barclays Bank Group accounts for each financial year and, with regard to Barclays Bank Group accounts, in accordance with UK-adopted international accounting standards. The Directors have prepared these accounts in accordance with (a) UK-adopted international accounting standards; (b) IFRS as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee; and (c) IFRS adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. Pursuant to the Act, the Directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the Barclays Bank Group and the Company and of their profit or loss for that period. The Directors consider that, in preparing the financial statements, the Barclays Bank Group and the Company have used appropriate accounting policies, supported by reasonable judgements and estimates, and that all accounting standards which they consider to be applicable have been followed. The Directors are satisfied that the Annual Report and Financial Statements, taken as a whole, are fair, balanced and understandable, and provide the information necessary for shareholders to assess the Company’s position and performance, business model and strategy. Directors are responsible for such internal controls as they determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Directors’ responsibility statement The Directors have responsibility for ensuring that the Company and the Barclays Bank Group keep accounting records which disclose, with reasonable accuracy, the financial position of the Company and the Barclays Bank Group, and which enable them to ensure that the accounts comply with the Act. The Directors are also responsible for preparing a Strategic report, Directors’ report and Corporate Governance Statement in accordance with applicable law and regulations. The Directors are responsible for the maintenance and integrity of the Annual Report and Financial Statements as they appear on the Barclays website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The Directors have a general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. The Directors are responsible for preparing the financial statements in accordance with Commission Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic reporting format. The current Directors, whose names and functions are set out on page [18](#ia16d0659cd524c01ae655d82fa382c3d_67), confirm to the best of their knowledge that: (a) the financial statements, prepared in accordance with (a) UK-adopted international accounting standards; (b) IFRS as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee; and (c) IFRS adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and (b) the management report, which is represented by the Strategic report and Directors' report: (i) includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face; and (ii) the Sustainability Statement referenced therein, which is set out on pages [35](#ia16d0659cd524c01ae655d82fa382c3d_6560) to [117](#i5b9d0f9d423340e793a79c0f3a322443_57607), has been prepared in accordance with the European Sustainability Reporting Standards and the specifications adopted pursuant to Article 8(4) of Regulation (EU) 2020/852. Sustainability Statement The content of the Sustainability Statement, required to be included in the Management Report further to the Transparency (Directive 2004/109/EC) Regulations 2007 (as amended), is set out in the Schedule to the Directors' Report on pages [35](#ia16d0659cd524c01ae655d82fa382c3d_6560) to [117](#i5b9d0f9d423340e793a79c0f3a322443_57607). By order of the Board Hannah Ellwood Company Secretary 12 February 2025 Barclays Bank PLC Registered in England. Company No. 1026167 Registered office, 1 Churchill Place, London E14 5HP | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 35 | ## Schedule to the Directors' Report: Sustainability Statement ## Cont ## ents | | | | --- | --- | | | | | | Page | | | | | General information | | | Introduction | [36](#ia16d0659cd524c01ae655d82fa382c3d_9380) | | Basis of preparation for sustainability reporting | [36](#ia16d0659cd524c01ae655d82fa382c3d_7615) | | Sustainability governance | | | • Board and Board Committee oversight of sustainability matters | [37](#ia16d0659cd524c01ae655d82fa382c3d_15159) | | • Management's role in governance | [37](#i2aeba3ab16fe4aa594fddfec1b252f95_21996) | | • Sustainability-related performance in incentive schemes | [37](#ia16d0659cd524c01ae655d82fa382c3d_8805) | | • Sustainability due diligence | [38](#ia16d0659cd524c01ae655d82fa382c3d_7487) | | • Risk management and internal control over sustainability reporting | [39](#ia16d0659cd524c01ae655d82fa382c3d_7448) | | Strategy, business model and value chain | [40](#ia16d0659cd524c01ae655d82fa382c3d_6632) | | Interests and views of stakeholders | [42](#ia16d0659cd524c01ae655d82fa382c3d_7526) | | Double materiality assessment | | | • Assessment process | [44](#ia16d0659cd524c01ae655d82fa382c3d_7550) | | • Material impacts, risks and opportunities, and their Interaction with strategy and business model | [47](#ia16d0659cd524c01ae655d82fa382c3d_7537) | | | | | Environmental information | | | Climate change | [49](#ia16d0659cd524c01ae655d82fa382c3d_6685) | | Biodiversity and ecosystems | [59](#ia16d0659cd524c01ae655d82fa382c3d_6799) | | EU Taxonomy | [62](#ia16d0659cd524c01ae655d82fa382c3d_19912) | | | | | Sustainable products and services (entity specific) | [63](#ia16d0659cd524c01ae655d82fa382c3d_13136) | | | | | Social information | | | Own workforce | [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) | | Workers in the value chain | [80](#ia16d0659cd524c01ae655d82fa382c3d_6961) | | Affected communities | [86](#ia16d0659cd524c01ae655d82fa382c3d_7165) | | Consumers and end users (entity specific) | [92](#ia16d0659cd524c01ae655d82fa382c3d_7111) | | | | | Governance information | | | Data privacy (entity specific) | [95](#ia16d0659cd524c01ae655d82fa382c3d_8423) | | | | | EU Taxonomy (qualitative information) | [98](#ia16d0659cd524c01ae655d82fa382c3d_8652) | | | | | Important information/ Disclaimers | [104](#ia16d0659cd524c01ae655d82fa382c3d_19890) | | | | | Further information | | | Disclosure requirements (including those incorporated by cross reference) | [105](#ia16d0659cd524c01ae655d82fa382c3d_8850) | | Datapoints in cross-cutting and topical standards that derive from other EU legislation | [106](#ia16d0659cd524c01ae655d82fa382c3d_16830) | | Key definitions as captured in the Barclays Climate Change Statement | [112](#ia16d0659cd524c01ae655d82fa382c3d_16817) | | Schedule to the Sustainability Statement – EU Taxonomy (quantitative disclosures) | [380](#ia16d0659cd524c01ae655d82fa382c3d_8634) | | | | | Independent assurance opinion | [114](#ia16d0659cd524c01ae655d82fa382c3d_8789) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 36 | ## Schedule to the Directors' Report: Sustainability Statement ## General Information Introduction Barclays Bank PLC (BB PLC) is a wholly-owned subsidiary of Barclays PLC. The consolidation of Barclays Bank PLC and its subsidiaries is referred to as the Barclays Bank Group. The consolidation of Barclays PLC and its subsidiaries is referred to as the Barclays Group. The term 'Barclays' refers to either Barclays PLC or, depending on the context, the Barclays Group as a whole. Barclays Bank Group's success is measured not only by its commercial performance, but also by the contribution to society and the way we work together for a better financial future for all stakeholders. We also have an important role to play in facilitating the investment needed to build the processes and infrastructure for the transition to net zero. Facilitating the world's decarbonisation requires collaboration between financial services, governments and the real economy. Nature and its ecosystem services fundamentally underpin economies and societies, and nature and biodiversity are intrinsically connected to our efforts to mitigate and adapt to climate change, maintain healthy communities, and support productive, sustainable economies. The scale of our business gives us the opportunity to help finance the transition – to use our global reach, products, expertise and position in the global economy to work with our clients, as they transition to a sustainable business model. Barclays, including Barclays Bank Group, is committed to building a stronger and more inclusive economy that is better for everyone. A vibrant skilled workforce ensures that businesses can thrive and that individuals, along with their families and wider communities, can achieve financial independence and security. We are also helping communities to develop the skills and confidence they need to succeed and helping businesses to grow. Basis of preparation for sustainability reporting This year, we are preparing a ‘Sustainability Statement’ for the first time, in accordance with the requirements set out in the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS), the Transparency (Directive 2004/109/ EC) Regulations 2007, as amended and the requirements of the EU Taxonomy Regulation. The threshold for information material for inclusion within this Statement is based on the requirements outlined in paragraph 31 of ESRS 1. The sustainability matters disclosed are aligned to the results of the double materiality assessment, see page [44](#ia16d0659cd524c01ae655d82fa382c3d_7550), and the information provided to meet our related disclosure requirements, including any metrics, has been based on the significance of the information in relation to the matter and identified impact, risk, or opportunity, or the capacity of such information to meet the users’ decision-making needs. Level of consolidation This Sustainability Statement has been prepared on a consolidated basis for the Barclays Bank Group, consistent with the financial statements. For further information on financial consolidation, see the notes to the financial statements on pages [360](#ia16d0659cd524c01ae655d82fa382c3d_805) to [368](#i84ea1e761224401cb6b364139013782a_4-2-1-1-2922537). Coverage of value chain An important cornerstone of the ESRS disclosure requirements is the double material assessment (‘DMA’). The DMA determines our material sustainability matters, which can be either impacts, risks or opportunities. Barclays Bank Group performed its DMA for the first time in 2024. The DMA covered direct business relationships as well as indirect business relationships in the value chain. For details of our value chain, see page [40](#ia16d0659cd524c01ae655d82fa382c3d_6632). The DMA process and reporting criteria are described further on page [44](#ia16d0659cd524c01ae655d82fa382c3d_7550). The outcome of the DMA serves as the starting point for our disclosures on our material risks, impacts and opportunities (IROs), which are included in the Environmental, Social and Governance sections below. Omission of information We have not omitted any specific pieces of information corresponding to intellectual property, know-how or the results of innovation. Disclosures in relation to specific circumstances that may have an effect on the preparation of the sustainability statement i) Sources of estimation and outcome uncertainty Financed emissions calculations rely on externally sourced data mapped to internal customer and client identifiers. The externally sourced data has various limitations for each sector, including lack of coverage, low resolution, consistency and transparency of company- reported data, as well as the time lag for external sources to report estimates or actuals. For details on the data sources and estimations in financed emissions metrics, including a summary of the basis of prep and level of accuracy, see page [58](#i53df09bfb6db44b0860e23f6adb8d730_53671). ii) Incorporation by reference Certain disclosure requirements are closely linked to requirements that Barclays Bank Group is already subject to, such as the requirement in the Companies Act 2006 to describe its governance structure. As such, these disclosures are included in other relevant sections of the Annual Report and incorporated by reference into this Sustainability Statement. The table on page [105](#ia16d0659cd524c01ae655d82fa382c3d_8850) identifies these disclosure requirements. iii) Use of phase-in provisions We have applied phased- in reliefs and transitional provisions set out in ESRS 1, including in relation to: • Quantitative disclosures on anticipated financial effects; • Disclosure requirements related to material sustainability matters; and • Entity-specific disclosures requirements. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 37 | ## Schedule to the Directors' Report: Sustainability Statement ## General Information Sustainability Governance Board and Board Committee oversight of sustainability matters Specific information relating to our Board and its Committees can be found in the Corporate governance statement from page [18](#i29c2b780fba64e579b29661f9a58f3e6_308714). In particular: • Information on the composition and diversity of our Board and its Committees is set out on page [18](#i29c2b780fba64e579b29661f9a58f3e6_308714) (the table in ‘The Board’ section), page [21](#i29c2b780fba64e579b29661f9a58f3e6_321066) (Principle Two: Division of responsibilities, ‘The Board’ section), page [22](#i0d2e79f3c88b40ffa88d931d9a708c86_0-0-1-2-3463103) (Principle Three: Composition, succession and evaluation, the table setting out industry and leadership experience and international experience) and page [23](#i29c2b780fba64e579b29661f9a58f3e6_321403) (Principle Three: Composition, succession and evaluation, the ‘Inclusion, diversity and equity’ section); • Information on the roles and responsibilities of our Board and its Committees in relation to sustainability matters and how these are reflected in governance documentation, is set out from page [29](#i29c2b780fba64e579b29661f9a58f3e6_266230) (Additional information relating to sustainability matters, the ‘Board and Board Committee oversight of sustainability matters’ section); • Information on how the Board and its Committees oversee the setting of targets and how they monitor progress towards them  is set out on page [30](#i29c2b780fba64e579b29661f9a58f3e6_321404) (Additional information relating to sustainability matters, the ‘Board and Board Committee oversight of sustainability matters’ section); • Information relating to the skills and expertise of Board and Committee members in relation to sustainability matters is set out on page [30](#i29c2b780fba64e579b29661f9a58f3e6_321406) (Additional information relating to sustainability matters, the ‘Skills and expertise related to sustainability matters’ section); • For information on how the Board and its Committees are informed about our material risks, impacts and opportunities, refer to page [30](#i29c2b780fba64e579b29661f9a58f3e6_321406) (Additional information relating to sustainability matters, the ‘Skills and expertise related to sustainability matters’ section); • For information on how the Board and its Committees consider our material risks, impacts and opportunities when overseeing our strategy, risk management and any decisions on major transactions, refer to page [29](#i29c2b780fba64e579b29661f9a58f3e6_321407) (Additional information relating to sustainability matters, the ‘Board and Board Committee oversight of sustainability matters’ section); and • Information about the material risks, impacts and opportunities considered by the Board and its Committees during 2024 is set out from page [29](#i29c2b780fba64e579b29661f9a58f3e6_293889) (Additional information relating to sustainability matters section). Management’s role in the governance processes Management across relevant business areas and functions are involved in the governance processes, controls and procedures used to monitor, manage and oversee our material impacts, risks and opportunities.  Where appropriate, specific management committees also have oversight of relevant material risks, impacts and opportunities in accordance with their Terms of Reference, with management responsibility and oversight ultimately being held by the Barclays Group Executive Committee.  Reporting lines are in place between our management committees, the Board and its relevant committees, and ultimately the Barclays PLC Board and its committees, with roles and responsibilities set out in their Terms of Reference. The Enterprise Risk Management Framework (ERMF) governs the way in which the Barclays Bank Group identifies and manages its risks. It outlines the highest level arrangements for risk management by setting out standards, objectives and key responsibilities of different groups of employees of the Barclays Bank Group. The ERMF is complemented by frameworks, policies and standards which are mainly aligned to individual principal risks: • frameworks cover high level principles guiding the management of principal risks, and set out details of which policies are needed, and high level governance arrangements; • policies set out the control objectives and high level requirements to address the key principles articulated in their associated frameworks. Policies state ‘what’ those within scope are required to do; and • standards set out detail of the control requirements to ensure the control objectives set by the policies are met. In relation to the management of material impacts and opportunities, our standard business controls and operating procedures apply. Targets are currently set and monitored at the Barclays Group level and, as such, where appropriate, relevant senior executive management (which would include relevant executive committees) contribute their business insights into the overall setting of targets. Sustainability-Related Performance in Incentive Schemes Remuneration decisions for colleagues result from the application of Barclays’ remuneration philosophy, which applies to all colleagues globally, including BB PLC Executive Committee members. The objectives of the remuneration philosophy include the following: • Remuneration in Barclays should reward sustainable performance. Sustainable performance means making a positive and enduring difference to investors, customers and communities, delivering good customer outcomes, taking pride in leaving things better than we found them, and playing a valuable role in society • Remuneration should align with risk appetite, risk exposure and conduct expectations, including sustainability-related risks. Barclays’ remuneration approach is designed to reward colleagues for achieving results in line with the Barclays Group’s risk appetite and conduct expectations | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 38 | ## Schedule to the Directors' Report: Sustainability Statement ## General Information The Barclays Group Remuneration Policy is set by the BPLC Board Remuneration Committee, and reviewed and adopted by the BB PLC Board Remuneration Committee. The policy ensures that remuneration is aligned to the Barclays Bank Group's strategy and risk management approach and is designed to promote the long-term success of the Barclays Group. Remuneration for BB PLC Executive Committee members is considered in the context of the wider workforce remuneration and the alignment of incentives and rewards with performance and culture. Their remuneration is reviewed annually by the BB PLC Board Remuneration Committee, and the BPLC Board Remuneration Committee as appropriate. No individual is involved in deciding their own remuneration. Performance for all colleagues, including BB PLC Executive Committee members, is assessed against colleague-specific performance objectives, which are aligned to the five lenses of the consistently excellent standard. The lenses include world-class service, precision, focus, simplicity, and diversity of thought, with sustainability considerations included as part of our objective to deliver world-class service. Specific sustainability-related objectives will depend on the role of the individual. Incentives are delivered in the form of annual bonus awards for all employees, including BB PLC Executive Committee members, and also Long Term Incentive Plan (LTIP) awards for the Executive Directors of BB PLC. Non-Executive Directors of BB PLC are not eligible for annual bonus awards or other incentives. Annual bonus awards aim to incentivise and reward the achievement of Barclays Group, business and individual objectives, and to reward colleagues for demonstrating behaviours in line with Barclays’ Values and Mindset. Individual bonus outcomes are determined based on Barclays Group, business, and individual performance and are fully discretionary, so there is no pre-determined or explicit weighting for sustainability-related measures, except for the Executive Directors of BB PLC (as described below). All colleagues are considered for annual bonus awards, subject to eligibility criteria, including BB PLC Executive Committee members. For employees earning higher bonuses and other employees identified as ‘Material Risk Takers’, including all of the BB PLC Executive Committee members, a significant proportion of the annual bonus is deferred to future years. Barclays’ performance against non-financial measures, including sustainability-related measures, is also factored into the determination of the Barclays Group and BB PLC incentive pools – impacting annual bonus awards of all employees, including BB PLC Executive Committee members. For 2024, sustainability-related measures considered as part of this assessment included: • climate-related measures focused on progress towards Barclays’ Sustainable and Transition Financing target, reductions in its financed emissions and progress against targets relating to achieving net zero operations; • consideration of how Barclays Group is investing in communities through programmes such as LifeSkills (including number of people upskilled and placed into work); • colleague-related measures including inclusion, engagement and culture. Since the assessment is holistic, there is no pre-determined or explicit weighting for sustainability-related measures. The incentive pool is also adjusted to take account of risks, both crystalised and potential future risks. Consideration is given to vulnerabilities across all of Barclays’ Principal Risks, including Climate Risk, through ex-ante and ex-post risk adjustments which are applied to the incentive pool. The Executive Directors of BB PLC, who are also Executive Directors of BPLC, are in addition eligible to receive Long Term Incentive Plan (LTIP) awards. Given their roles as Executive Directors of BPLC, the determination of their annual bonus and LTIP outcomes is more structured that the approach for most other Barclays employees, and includes an assessment of performance against a framework of measures set by the BPLC Board Remuneration Committee at the start of the performance period for each award. A portion of both the annual bonus and LTIP award for the Executive Directors of BB PLC is driven by non-financial performance measures, aligned with the Barclays Group’s strategic priorities. The 2024 annual bonus, and the 2024-2026 LTIP awards, for the Executive Directors each included a Climate & sustainability category, weighted at 5% and 15% respectively. Additionally, in the 2024 annual bonus, 5% is based on Colleague measures and 10% is based on Risk & operational excellence measures, while in the 2024-2026 LTIP, 5% is based on each of these categories of measures. In the next LTIP cycle, the 2025-2027 LTIP, sustainability-related measures will be included as part of a broader, renamed category of measures relating to Sustainability, customers and clients, weighted at 25%. The Sustainability measures will include Financing the transition, reducing financed emissions and achieving net zero operations, as well as supporting Barclays communities. Additionally, 10% of the 2025 annual bonus will be determined on a combination of colleague measures, including inclusion and engagement, and measures relating to customer and clients. Risk and operational excellence measures are also weighted at 5%, based on an assessment of performance against a range of measures of Barclays risk culture, operational precision and controls. Performance against these measures will be assessed by the BPLC Board Remuneration Committee at the end of the performance period, and a detailed retrospective narrative will be provided in the Annual Report following the end of the performance period. Integration of climate-related performance in incentive schemes Climate-related performance is considered in incentive schemes in the same way as outlined in the ‘Sustainability-Related Performance in Incentive Schemes’ section above, given that sustainability-related measures include climate-related measures. Sustainability due diligence Sustainability due diligence is the process used to identify, prevent, mitigate and account for how the actual and potential negative impacts on the environment and people connected with a company's business are addressed. These include negative impacts connected with a company’s own operations and its upstream and downstream value chain, including through its products or services, as well as through its business relationships. Due diligence is an on-going practice that responds to and may trigger changes in a our strategy, business model, activities, business relationships, operating, sourcing and selling contexts. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 39 | ## Schedule to the Directors' Report: Sustainability Statement ## General Information The table below outlines details regarding where information relating to sustainability due diligence can be found within the Sustainability Statement. | | | | --- | --- | | | | | Core elements of due diligence | Pages in the Sustainability Statement | | Embedding due diligence in governance, strategy and business model | [37](#ia16d0659cd524c01ae655d82fa382c3d_15159) | | Engaging with affected stakeholders in all key steps of the due diligence | [42](#ia16d0659cd524c01ae655d82fa382c3d_7526) | | Identifying and assessing adverse impacts | [44](#ia16d0659cd524c01ae655d82fa382c3d_7550) | | Taking actions to address those adverse impacts | [54](#ia16d0659cd524c01ae655d82fa382c3d_6718), [61](#ia16d0659cd524c01ae655d82fa382c3d_9015), [84](#ia16d0659cd524c01ae655d82fa382c3d_7001), [88](#ia16d0659cd524c01ae655d82fa382c3d_7122), [94](#ia16d0659cd524c01ae655d82fa382c3d_9484) | | Tracking the effectiveness of efforts and communicating | [56](#ia16d0659cd524c01ae655d82fa382c3d_6729) , [64](#ia16d0659cd524c01ae655d82fa382c3d_13160), [68](#ia16d0659cd524c01ae655d82fa382c3d_9186), [69](#ia16d0659cd524c01ae655d82fa382c3d_9191), [72](#ia16d0659cd524c01ae655d82fa382c3d_9235), [74](#ia16d0659cd524c01ae655d82fa382c3d_10985), [77](#ia16d0659cd524c01ae655d82fa382c3d_9206), [79](#ia16d0659cd524c01ae655d82fa382c3d_9310), [94](#ia16d0659cd524c01ae655d82fa382c3d_9479), [97](#ia16d0659cd524c01ae655d82fa382c3d_8433) | Risk management and internal control over sustainability reporting Barclays' approach to risk management and internal control over sustainability reporting is set out in the Operational Risk Framework (ORF), which defines “what” the organisation needs to do to manage Operational risk effectively. Operational risk is one of the principal risks, which is managed under the Barclays’ ERMF. The Barclays Control Framework (BCF) translates the high-level principles of the ORF into control requirements/objectives and sets out ‘how’ to manage operational risks consistently. The control requirements/objectives applicable to sustainability reporting process are defined in the Bank's financial reporting policies and standards. Sustainability reporting processes are subject to Barclays' evaluate, respond, and monitor approach to risk management. The approach involves the structure of risk identification and assessment, mitigation and management, and monitoring and reporting of risks. The risk identification and assessment for sustainability reporting, as set out in the ORF, is supported by various risk assessment tools. Risk and Control Self-Assessment (RCSA) is a Group-wide approach to identify and assess: • the risks that are inherent in each process; • the effectiveness of the controls in place to mitigate the risks; • the level of residual risks after the application of the controls; and • the actions required to reduce any residual risk that is outside the risk appetite/tolerance. Alongside the RCSA is the quarterly Control Environment and Risk Profile Assessment (CERPA) that assesses the effectiveness of the control environment and helps management determine if the residual risk is within or outside the appetite/tolerance; and is a key factor in determining the quarterly changes to the residual risk. For example, where the control environment improves, the level of residual risk is expected to fall, and vice-versa. The risk and control assessments (including RCSA and CERPA), risk events, issues and key indicators, among others, inform management if a risk should be subjected to an enhanced oversight, review and challenge, and prioritised for any risk mitigation/reduction plan. The main risks associated with the sustainability reporting processes, defined by Barclays' financial reporting policies and standards are grouped in risk themes (such as calculation error, reporting error and late reporting) which in turn consider risks relating to: • completeness and integrity of data; • accuracy of estimation results; • timing and availability of information; and • fairness, balance and understandability of disclosures. Such policies and standards also describe the control objectives and control requirements to mitigate the associated risks. These are preventative and detective controls, such as data integrity checks, external disclosure checks, reconciliations, validations, analytical reviews, and management review/challenge, operated by the relevant functions over the sustainability reporting process. To further mitigate the risks related to sustainability reporting, specific governance committees, such as the Disclosure Committee, are responsible for reviewing and monitoring the integrity of the Barclays Bank Group financial statements, including sustainability narrative reporting in the Annual Report. These controls are established to manage and mitigate the risks within the risk appetite and tolerance. Risk mitigation is either through implementation of additional controls against the risk, or remediation of existing controls assessed as operating ineffectively, in order to strengthen the effectiveness of the control environment of the relevant functions to the sustainability reporting process. Any findings of the risk assessment and internal controls associated with the sustainability reporting processes are assessed by the function for severity (financial and non-financial impact) and probability of occurrence in accordance with the Risk and Issue Classification Matrix (RICM). RICM provides a consistent basis for classifying risks and issues and helps determine the escalation and reporting requirements, commensurate with the overall risk exposure. Any issues, such as control gaps, are documented and recorded in the approved system of record, including remedial actions to address the findings, and are tracked/reviewed for completion and closure. Where applicable, a risk reduction plan is performed whenever the residual risk (after taking into consideration the effectiveness of controls) is outside of the risk appetite/tolerance. Such plan includes remedial activities to bring the residual risk within the acceptable level. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 40 | ## Schedule to the Directors' Report: Sustainability Statement ## General Information Any findings of risk assessment and internal controls associated with the sustainability reporting process are reviewed and reported by the relevant functions through risk and control committees on a regular and event-driven basis, such as the Horizontal and Control Forums. Where applicable, any material findings are escalated and reported to the Barclays Bank PLC Board Risk Committee (BRC). The BRC reviews the effectiveness of risk management, and the Barclays Bank Group risk profile, including the material issues affecting each business portfolio and forward risk trends. Strategy, business model and value chain Business model Barclays Bank Group's business model is aligned with the business model of Barclays Group. Barclays deploys its tangible and intangible assets, including people, technology, infrastructure and brand, to serve the financial needs of its diversified customer base, create synergies across the organisation, generate a well-diversified income stream and provide positive outcomes for its stakeholders. Significant products, services, and customer groups In February 2024, Barclays set out an updated business structure. Our products and services, based on the updated structure, are outlined below. For further information, refer to our Strategic Report from page [1](#ia16d0659cd524c01ae655d82fa382c3d_13) onwards. • UKCB: UK Corporate Bank brings together lending, trade and working capital, liquidity, payments and FX solutions for corporate clients with turnover of over £6.5m • PBWM: Barclays Private Banking and Wealth Management provides holistic wealth and private banking solutions and is structured to service clients from across the UK wealth spectrum and grow the Private Bank franchise in selected international markets • IB: Investment Bank incorporates the Global Markets, Investment Banking and International Corporate Banking businesses, serving FTSE 350, multinationals and financial institution clients • USCB: US Consumer Bank represents the US credit card business, particularly focused in the partnership market as well as an online deposit franchise Significant markets The significant markets where we provide products and services are: • UK: The primary products and services in this region are corporate banking and private banking and wealth management • Americas: The US is our main market outside the UK. Our principal US activities include investment banking business and consumer cards operations • Europe: Activities in this region consist of Investment Bank which is comprised of international Corporate banking, Investment banking and Global Markets, as well as Private Bank & Wealth management Headcount by geography: We had a diverse workforce of 23,788 employees globally at the end of FY24. For further details on the characteristics of our workforce, please refer to the S1 disclosure on page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889). Main features of our upstream and downstream value chain ![Barclays_Value Chain Table (002).jpg]() Direct relationships in value chain: Upstream • Investors: BB PLC is a wholly owned subsidiary of the Barclays Group, focused on creating long term sustainable value for Barclays and ultimately its shareholders. We are also a frequent issuer in the debt capital markets and have wholesale and retail debt investors • Third Party Service Providers (TPSPs)1: A TPSP is any entity that has entered into an arrangement with Barclays' entities, including those in the Barclays Bank Group, to provide business functions, activities, goods and/or services. For example, through | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 41 | ## Schedule to the Directors' Report: Sustainability Statement ## General Information TPSPs we obtain a wide range of products and services including technology and facilities management, client focused payment solutions, customer service, trading platforms and clearing services, supporting our colleagues through recruitment services, learning partnerships and other TPSPs that support multiple functions through data services Downstream • Clients and Customers: Investment banking clients include corporates, money managers, financial institutions, governments and supranational organisations. Corporate clients are also served through the UK Corporate Bank. Private Bank and Wealth Management primarily cater to high net worth individuals. US Consumer Bank caters to retail and non-retail clients through the provision of cards. We also partner with distributors to provide co-branded cards Indirect relationships in value chain • Affected communities: Individuals or groups who may be affected by the actions, operations and/or value chains of those parties in our upstream (TPSPs) or downstream (Clients and Customers) value chain • Workers in our value chain: Individuals who work in our upstream or downstream value chains but may not have direct contractual relationship with the Barclays Bank Group Sustainability strategy and goals Barclays Bank Group contributes to Barclays' sustainability strategy and goals. These are primarily focused on impacts, risks and opportunities arising from financing activities. We support Barclays' strategy of financing the transition through Sustainable and Transition Financing and the continued development of environmental, social and transition related financing products that meet our clients’ needs globally and support the transition to a low carbon economy. This is reflected in Barclays' financing target to facilitate $1trn of Sustainable and Transition Financing between 2023 and the end of 2030. In 2024, Barclays announced its Transition Finance Framework (TFF), which outlines the criteria for transactions to qualify as transition financing and sits alongside the Sustainable Finance Framework (SFF) to define what can be included against this target. Both the SFF and TFF are available on Barclays' website. The products and services offered as a part of this strategy are financing activities including debt and equity capital markets, corporate lending, trade finance and consumer lending. It applies to all Barclays businesses globally. These products and services help to generate positive social and environmental outcomes through financing of activities such as, but not limited to, energy efficiency, renewable energy, affordable housing, basic infrastructure and services. Our products and services that support the Barclays sustainability goals are as follows. UKCB: Supporting our corporate clients with their transition journeys through strong client engagement, deepening our relationships through delivery of insights and strategic priorities, while we continue to embed and develop our suite of sustainability-related products to provide an enhanced offering to clients. PBWM: Responsible investing and sustainable investing solutions focus on ESG integration and dedicated sustainable investment strategies. Barclays WM&I now offers most Global Access Funds as Article 8 products in a bid to promote sustainability pursuant to the EU’s Sustainable Finance Disclosure Regulation. IB: Blending the existing expertise and relationships in our coverage groups with new, specialised teams focused on sustainable finance growth areas – providing enhanced and integrated solutions for our clients. The specialised teams are: • the Energy Transition Group (which provides clients with holistic and cohesive strategic advice and financing solutions throughout the energy value chain, with a strong emphasis on decarbonisation); • the Sustainable Banking Group (which supports the sustainability needs of our clients across all industries through a tailored approach to coverage, advice and execution across M&A, risk management, equity and debt); • the Sustainable Project Finance Group (which provides tailored project financing solutions for clients aiming to decarbonize their business, accelerate the development of lower -carbon technology and monetize the associated transition-related revenue opportunities); • the Sustainable Product Group (which provides structuring services and advice to clients in Investment Banking and UK Corporate Banking focused on executing Green and Sustainability-Linked financing for clients); and • the Global Markets Team (which channels investments into sustainable activities, through a comprehensive range of solutions across asset classes). We also support Barclays' commitment to aligning all of its financing to the goals and timelines of the Paris Agreement, consistent with limiting the increase in global temperatures to 1.5°C and supporting clients through the provision of sustainable and transition financing, providing financial advice and guidance as they transition to a low-carbon economy Barclays has set 2025 emissions reduction targets for energy and power sectors, and has set 2030 emissions reduction targets for eight high-emitting sectors see page [56](#ia16d0659cd524c01ae655d82fa382c3d_6729). More generally, our broader sustainability goals include developing ways to effectively mitigate our material potential sustainability impacts and risks which could impact our customers and services, for example through the effective management of potential data privacy and cyber security impacts globally. Barclays has set out its expectations in the Third Party Service Provider Code of Conduct (TPSP CoC) for matters including environmental management and human rights. Its sustainability goals in relation to other stakeholders (such as investors and regulators) are primarily focused on maintaining and strengthening these relationships, and continuing to develop a broad and deep understanding of their individual sustainability related views, goals, expectations and challenges. Note 1Third party service providers are equivalent to suppliers as defined in Annex II- Acronyms and Glossary of Terms in ESRS, published by Council of European Union | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 42 | ## Schedule to the Directors' Report: Sustainability Statement ## General Information Main challenges ahead relevant to sustainability reporting While we have made progress in our ambition towards becoming a net zero bank, and continue to see a significant opportunity to demonstrate our commercial leadership and support for our clients in the transition, we recognise that the shift to a low-carbon economy is complex and subject to significant uncertainties.  Our ability to implement our climate strategy depends heavily on our clients’ ability to commercially decarbonise their business models, which is influenced by a wide range of external factors, including market developments, technological progress and its financial viability, a stable and supportive policy environment, regulatory alignment, changes to societal behaviour, geopolitical developments and regional variations. Our climate strategy will continue to evolve as we continue to pursue our ambition of being a net zero bank by 2050 against the shifting and rapidly developing landscape. As explained later in the statement, we contribute to Barclays financed emissions targets. Barclays keeps its targets, policies that support the progress towards them, and year-on-year and cumulative progress under review in light of the rapidly changing external environment and its need to balance a range of factors when managing its portfolios including commercial objectives, effective risk management and the need to support governments and clients both in delivering an orderly transition and providing energy security. Barclays expects progress towards the targets to be volatile and non-linear. As the external environment in which we, Barclays and our clients operate shifts, and new information becomes available, there may be a need for us and Barclays to update the approach to manage the effectiveness and impact of these efforts to reduce financed emissions, while remaining focused on the ambition to be a net zero bank by 2050. The development of sustainability related metrics, targets and disclosures are also dependent on data availability. Barclays relies on disclosures made by its clients and customers, which at this time are complex and still evolving to be reliable and consistent. Interests and views of stakeholders The table below outlines how we engage with our six key stakeholder groups. The purpose of this engagement is to enable us to understand the interests and views of our key stakeholders, in relation to sustainability matters, and allow us to consider these views in our strategy and business model. The table outlines: • the different types of engagement methods used to engage with our key stakeholders; • the purpose of our engagement with our key stakeholders; and • how the outcomes are used in our strategy and business model The Board is informed of our stakeholders’ views on sustainability-related impacts, where relevant, through updates from management and Board stakeholder engagement. This engagement is discussed in Principle Six: Stakeholder relationships and engagement on page [28](#i29c2b780fba64e579b29661f9a58f3e6_265280) in our Corporate governance statement. You can read about how the Board engages with stakeholders in our Section 172(1) statement in the Strategic report on page [15](#ia16d0659cd524c01ae655d82fa382c3d_55). Stakeholder engagement enables us to understand the priorities of our different stakeholder groups. The key topics our stakeholders raised and discussed, as part of stakeholder engagement, allow us to understand their interests and views on our strategy and business model pertaining to Environmental, Social and Governance matters. This understanding is used to support the due diligence process, and was considered as part of  the DMA, as outlined on page [44](#ia16d0659cd524c01ae655d82fa382c3d_7550), and specifically: • When assessing the appropriateness of the IROs that were taken forward for assessment under the DMA, and • During the stakeholder assessment (as discussed in the step 5 of our 'Double Materiality Assessment' section), to inform and enhance our understanding of external stakeholders views, through nominated internal proxies. | | | | | | --- | --- | --- | --- | | | | | | | Stakeholder | How BB PLC engages | Engagement purpose | How the outcomes are taken into account | | Third party service providers (TPSPs) | Barclays engages in a wide variety of ways on sustainability matters with our supply chain including: • Direct engagement with TPSPs through our relationship managers • Communication of our TPSP Code of Conduct to ensure TPSPs are aware of and able to meet expectations on matters including environmental management and human rights | The purpose of our engagement is to: • Promote good practice on matters including environmental management and human rights | The insights gathered during this engagement are used to assess the TPSPs against the individual topics contained within the TPSP Code of Conduct including expectations on matters including environmental management and human rights through annual self-certification. | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 43 | Schedule to the Directors' Report: Sustainability Statement General Information | | | | | | --- | --- | --- | --- | | | | | | | Stakeholder | How BB PLC engages | Engagement purpose | How the outcomes are taken into account | | Investors | BBPLC is a wholly owned subsidiary of Barclays PLC. Barclays PLC is a publicly traded company with diverse group of investors. Investors in BPLC refer to the disclosures made at BBPLC level. Barclays Group engagement with investors includes: • Regular quarterly meetings and updates on results and future guidance and expectations • Frequent deep-dive and thought leadership conferences and group sessions • Ad hoc engagement to address queries • Annual AGM to engage with BPLC investors and shareholders • Via an ESG resources hub to demonstrate non- financial performance, policies and statements, and applicable ESG ratings, as well as frameworks utilised by Barclays | The purpose of engagement with investors is to: • Provide a feedback mechanism for the Group, and indirectly to BBPLC and BBI to understand the needs of investors • Educate and explain current performance and future expectations to best illustrate performance to investors • Provide access to the subject matter experts within the Barclays Group as well as access to Senior Management and the Board | The insights gathered during this engagement are used to: • Drives topics of prioritisation in a changing environment, guiding relevant and accurate reporting against market expectations • Inform disclosure requirements of investors to aid investment decision, helping to develop sustainability- related policy and strategy, governing all activities of Barclays | | Government, Policy makers and Regulators | BB PLC engages (either directly, or indirectly through Barclays) with a range of governments, policymakers and regulators in a wide variety of ways, including: • Ongoing supervisory relationships with our regulators • Proactive engagement with policymakers and governments directly and indirectly (including through trade associations) consistent with our business strategy • Participating in key international and domestic policy forums • Providing feedback and engaging with regulatory and government consultations, directly and indirectly through trade associations | The purpose of this engagement is to: • Enhance our understanding of regulatory expectations and requirements in relation to our business • Identify and engage in the development of the key policy initiatives that could impact us and our clients, including in relation to sustainable finance and the energy transition | The insights gathered during this engagement are used to: • Embed our understanding of regulatory expectations and requirements within our business • Make informed and insightful contributions to the development of policy that could impact us and our clients • Enhance existing relationships and build new relationships with a range of governments, policymakers, regulators and relevant trade associations | | Employees | BB PLC's approach to workforce engagement delivers meaningful, regular two-way dialogue and recognises the importance of closing the feedback loop. We engage with colleagues  in a wide variety of ways, including: • Townhalls • Skip-level meetings • Site visits • Leader led engagement • Focus groups • Surveys • Unions and Works Councils | Our engagement channels provide senior leaders with the opportunity to engage with colleagues in a variety of ways. We engage in regular, meaningful, two-way dialogue with our colleagues to understand what is working well across the organisation and where we can improve. | Our engagement mechanisms enable us to listen to our colleagues, monitor organisational culture, and supports Senior Leaders to take action. | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 44 | Schedule to the Directors' Report: Sustainability Statement General Information | | | | | | --- | --- | --- | --- | | | | | | | Stakeholder | How BB PLC engages | Engagement purpose | How the outcomes are taken into account | | Customers and Clients | BB PLC engage with customers and clients in a wide variety of ways, including: • Regular client surveys • Analysis of customer complaints • Direct interaction | The purpose of engagement with customers and clients is to: • Support  our customers' and clients' • Gather customer and client feedback, and engage on their own financial health, financial and non-financial strategy and plans • Influence and develop products and services to meet their needs | The insights gathered during this engagement are used to: • Build our understanding of customer and client evolving needs • Adapt our products and services accordingly • Continue to build the expertise, knowledge and capabilities customers and clients are looking for • Identify and address the root causes of customer complaints • Tailor financing and advise clients on future financing requirements, aiding their own sustainability and supporting the longevity of our relationship | | Affected Communities and Workers in the downstream value chain | On an ad hoc basis, Barclays have engaged credible proxies and representatives to gain insight into the perspectives of affected communities, this has taken the form of: • Engagement with credible proxies, such as NGOs and civil society organizations. | The purpose of stakeholder engagement as part of the 2023 saliency assessment of the then Corporate and Investment Bank was to: • Develop our understanding of the actual and potential human rights risks relevant to our business from the perspective of affected stakeholders • Enhance the robustness and legitimacy of the process for assessing salient human rights risks | The insights gathered during this engagement have been used to: • Inform the identification of a  list of human rights impacts relevant to the then Corporate and Investment Bank • Support the update of the Barclays' Statement on Human Rights, informed in part by insights from the saliency assessment | Double materiality assessment Double materiality has two dimensions, impact materiality and financial materiality. A sustainability matter is material from an impact perspective when it pertains to the undertaking’s material actual or potential, positive or negative impacts on people or the environment over the short, medium or long-term. The financial materiality assessment corresponds to the identification of information that is considered material for primary users of general-purpose financial reports in making decisions relating to providing resources to the entity. The ESRS require undertakings to disclose specific information on environmental, social and governance matters when the undertaking has assessed the topic in question as material Description of t he process to identify and assess material impacts, risks and opportunities Barclays conducted a double materiality assessment (DMA) using the first five steps outlined below. Through step six, this DMA was modified to appropriately reflect the position of the  Barclays Bank Group. ![image.png]() Step 1: Understanding Barclays' products and services, value chain and stakeholders. The process focused on all activities, business relationships and geographies of Barclays that could give rise to heightened risk of adverse impacts. For more details please see Products and Services, and Value Chain on page [40](#ia16d0659cd524c01ae655d82fa382c3d_6632) and Stakeholder engagements on page [42](#ia16d0659cd524c01ae655d82fa382c3d_7526) Step 2: Developing a preliminary list of potentially relevant sustainability matters Research was conducted to identify a list of sustainability matters that were relevant and important to Barclays, its stakeholders, the geographies and the sectors in which it operates. This formed the basis for an assessment of relevant impacts, risks, and opportunities (“IROs”). This list was assessed further to understand whether Barclays was linked to these matters through its own operations or through business relationships in its value chain. While direct engagement with external experts was not undertaken, the views of established and recognised global and industry bodies were obtained through a number of sources, including; | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 45 | ## Schedule to the Directors' Report: Sustainability Statement ## General Information • ESG Frameworks (such as Sustainability Accounting Standards Board Guidance and United Nations Sustainable Development Goals); • ESG Rating Agency publications by organisations such as CDP and MSCI; • Industry and regulatory publications (such as 'Global Risk Report 2024' by World Economic Forum and 'Management and supervision of ESG risks for credit institutions and investment firms' by European Banking Authority); • Relevant legislation (such as the Sustainable Finance Disclosure Regulation (2019/2088/EU)) and the Taxonomy Regulation (2020/852/EU)); • Sustainability publications by a number of institutional investors; and • Sustainability disclosures by a number of peers. This step also included a review of reports published or prepared by Barclays (such as our Climate Risk Assessment Report, Global Reporting Initiative Report and Human Rights Saliency Assessment relating to the CIB financing portfolio), and media articles related to Barclays published between 2021-2023. The sustainability matters based on this research were scored based on the number of occurrences in the data sources and weighted, in order to prioritise the matters and arrive at a list of potentially material sustainability matters to carry forward to steps 3 and 4. Step 3: Impact materiality: Identifying and assessing the materiality of the impact of each sustainability matter across the value chain. Subject matter experts (SMEs) were identified based on their role in the Barclays Group and because their role requires having appropriate knowledge of the specific sustainability matters that were assigned to them. Informed by the on going due diligence processes in their respective areas, the SMEs identified impacts for each sustainability matter, covering all aspects of the value chain. They outlined whether the impacts were potential or actual, the stage of the value chain at which a given impact may occur, and whether the impact was positive or negative. SMEs impacts were scored and prioritised based on severity, reflecting their scale, scope, irremediability (for negative impacts) and likelihood (for potential impacts). The SMEs rated each parameter on a scale of 0-5, with the severity ratings then averaged and multiplied by the likelihood to obtain a rating for each impact. Where SMEs' assessments of a sustainability matter differed, the average of their assessments was used. Step 4: Financial materiality: Identifying and assessing the materiality of risks and opportunities from each sustainability matter across the value chain Informed by the on going due diligence processes in their respective areas, the SMEs identified the financial risks and/or opportunities for each sustainability matter. They outlined whether the risk or opportunity originated from an impact or dependency, and the stage of the value chain at which a given risk or opportunity may arise. Risks and opportunities were scored and prioritised by SMEs based on their magnitude and likelihood. The initial assessment of magnitude and likelihood was qualitative and relied on their professional judgement. The qualitative assessment was then augmented with quantitative thresholds, where available, such as stress test outcomes. Professional judgement was applied in mapping the quantitative thresholds and definitions of Barclays risk register to the qualitative definitions of magnitude and likelihood. The SMEs rated each parameter on a scale of 0-5 with the magnitude ratings then multiplied by the likelihood to obtain a rating for each risk and opportunity. Where SMEs' assessments of a sustainability matter differed, the average of their assessments was used. Step 5: Validation of the completeness and materiality of IROs with proxy external stakeholders and internal governance forums to finalise the Group DMA. Barclays used internal proxies to incorporate the views of affected external stakeholders. Internal teams were identified, based on their level of seniority and their engagement with and knowledge of the relevant external stakeholder groups. As such, the internal proxies were determined to represent the views and interests of external stakeholders, informed by our existing due diligence processes, and Barclays did not undertake direct engagement with external stakeholders for the purpose of the DMA. The results from steps 3 and 4 were aggregated as minimal, informative, important, significant and critical, and the rating for each matter was presented to the internal proxies who represented external stakeholders. The internal proxies were asked to consider and opine on whether; • they agreed with the SMEs' rating of the IROs and, by extension, the sustainability matter; and • the IROs were material in the short, medium and long term, or differed substantially across Barclays’ geographies and business- lines. Based on the ratings from the SMEs and views of internal proxies, all the sustainability matters were mapped on the following scale and the materiality threshold was set at significant and above. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Minimal | Informative | Important | Significant | Critical | The DMA, including the materiality threshold and proposed list of material topics, was reviewed and approved by the CSRD Steering Committee, which included representatives from business, finance, risk, regulatory, group sustainability and legal. Where the SME assessment for an individual sustainability matter differed from the internal proxy assessment, the CSRD Steering Committee decided on the final assessment. The material matters and IROs were then reviewed by the BB PLC Audit Committee. Step 6: Disaggregating Barclays' DMA outcome to arrive at the material IROs for the Barclays Bank Group When sustainability matters were assessed for Barclays, the SMEs were also asked to consider and document if any impacts, risks or opportunities were specifically related to or resulted from activities of individual subsidiaries or locations. These inputs provided a | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 46 | ## Schedule to the Directors' Report: Sustainability Statement ## General Information foundation to ascertain whether there was a need to adjust Barclays materiality assessment for the Barclays Bank Group. This assessment was performed separately for own operations, upstream and downstream sustainability matters. Own operations: • Own workforce - Based on SME input, the IROs did not differ significantly across Barclays' geographies and primary operating subsidiaries and, therefore, that Barclays' own workforce materiality assessment was suitable for use by the Barclays Bank Group. Accordingly, positive impacts related to own workforce were identified as material for the Barclays Bank Group • Own infrastructure - Based on SME input, the environmental IROs assessed for Barclays' global real estate portfolio were representative of IROs for the Barclays Bank Group. Therefore Barclays' materiality assessment was suitable for use by the Barclays Bank Group. Accordingly, IROs related to own infrastructure were not identified as material for the Barclays Bank Group Upstream: Based on SME input, the IROs did not differ materially across Barclays' geographies and primary operating subsidiaries. Therefore, Barclays' upstream materiality assessment was suitable for use by the Barclays Bank Group. Accordingly, IROs related to upstream were not identified as material for the Barclays Bank Group. Downstream: For the downstream IROs, step 1 of the DMA was extended to review balance sheet exposures by sector. Sectoral reporting guidelines in several industry and regulatory frameworks primarily focus on non-financial sectors and sectors with high resource consumption. From a bank’s balance sheet perspective, this primarily represents exposures to certain non-financial corporates (NFCs). Accordingly, this analysis focused on Barclays Bank Group's exposure to non-financial sectors only and did not factor exposures to financial services. Barclays Bank Group's exposure to non-financial sectors (percentage value of total exposure) is not considerably different to that of Barclays, except for financing to agriculture, which is concentrated in Barclays Bank UK PLC, with Barclays Bank Group having a relatively small exposure to the agriculture sector. There were no material IROs related to the agriculture sector for Barclays. Also, two of Barclays' downstream material matters were specific to retail banking in the UK and therefore were excluded from Barclays Bank Group's material matters as we do not have a UK retail presence. Barclays' UK retail activities are carried out by Barclays Bank Group's fellow subsidiary, Barclays Bank UK PLC. Please refer to the full list of material matters on page [47](#ia16d0659cd524c01ae655d82fa382c3d_7537). Additional information on IRO identification for Environmental matters Climate matters As part of the DMA process, when assessing climate change, we considered Barclays’ direct operations and our value chain’s emission contribution and the impact of these emissions. Additionally, we completed analysis to identify and assess both physical and transitional risks and opportunities including the use of scenario analysis to assess how our assets and business activities may be exposed or impacted by climate risks. Further detail, including scenarios overview, are set out on page [49](#ia16d0659cd524c01ae655d82fa382c3d_6696) in the Climate Change disclosure. Other environmental matters Actual and potential impacts, risks and opportunities, relating to pollution, water and marine resources, biodiversity and ecosystem, resource use and circular economy in Barclays' direct operations and our value chain were identified and assessed qualitatively based on expert judgement of Barclays subject matter experts according to the process and criteria above. This process will continue to be developed. The DMA was primarily qualitative and relied on the professional judgement of the SMEs. Accordingly, we did not factor in any site level or asset and activities analysis for Barclays' real estate portfolio to determine our impacts, risks and opportunities relating to pollution, water and marine resources, biodiversity and ecosystems, and resource use and circular economy. Site level analysis has since been conducted for Barclays global real estate portfolio. It has not been disaggregated as part of the BB PLC DMA. We did not undertake any additional consultations with our stakeholders beyond the engagement outlined in steps 2, 3 and 4 of the DMA. Biodiversity matters Actual and potential impacts, dependencies, transition and physical risks and opportunities, including systemic risks, relating to biodiversity and ecosystems in Barclays Bank Group's direct operations and value chain were identified and assessed as part of the DMA process. Site level analysis to identify whether any of our sites are located in or near biodiversity-sensitive areas has since been conducted for Barclays' global real estate portfolio. It has not been disaggregated as part of the Barclays Bank Group's DMA. Business conduct matters Business conduct within our operations was assessed to identify material impacts risks and opportunities in line with the DMA process. This included assessing our specific activities, sectors and locations, under step 6, to identify any specific matter that may be more or less relevant to us. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 47 | ## Schedule to the Directors' Report: Sustainability Statement ## General Information Embedding sustainability in risk management: We recognise environmental and society related risks as emerging drivers of other existing financial (Credit, Market, Treasury and Capital) and non-financial (Operational and Reputational) risks and these emerging risks are not treated as a standalone risk type. These are identified, assessed and monitored in the risk management processes as they evolve over time. The process for evaluating financial materiality of risks through the existing risk management processes is outlined below. The risk register contains all material risks that may impact forward-looking business plans across key legal entities and business units. Quantitative (typically based on stress testing) or qualitative assessments are performed to quantify the impact of material risks on capital or liquidity positions of legal entities/business units. Following this assessment, each material key risk driver is mapped to the risk ratings (which are derived based on the magnitude of impact and materiality thresholds). Barclays risk register is refreshed on at least an annual basis and is subsequently used to support strategic planning, scenario design, sensitivity analysis and capital adequacy assessments. Given this is the first year that we have performed a DMA, and due to the fact that our overall risk management processes originate from Barclays’ Enterprise Risk Management Framework, the DMA process is not currently integrated into our overall risk management processes or used to evaluate our overall risk profile and processes. While  magnitude is a driver of risk rating in the existing process, there needs to be more deliberation on how the concepts of magnitude and likelihood as required by DMA for ESRS disclosures, can be better aligned with existing processes. Embedding sustainability in opportunity management: On an annual basis, a strategic review of sustainable finance opportunities is undertaken by the business along with relevant stakeholders. The opportunities prioritized are then captured into Barclays' annual planning cycle. Barclays’ 2024 financial planning process included a review of its strategy, its implementation, and tracking of progress against climate-related targets – as well as capturing a view of climate- related opportunities. During 2024, Barclays continued to enhance its monthly reporting framework to cover a view of the balance sheet and revenue from Sustainable and Transition Financing. This supports Barclays' ability to review its sustainable and transition  financing portfolio at greater granularity and improve relevant business engagement through the financial planning process. Enhancements were made to help a further evaluation of the portfolio's performance and identify opportunities to maximise revenue generation activities. The DMA process is not currently integrated into our overall opportunity management processes or used to evaluate our overall pipeline of opportunities. Material Impacts, Risks and Opportunities and their Interaction with Strategy and Business Model The table below shows the material sustainability matters for Barclays Bank Group and their mapping to the associated ESRS standard or, in the case of our entity specific sustainability matters, the most appropriate ESRS standard. Further descriptions of the material sustainability matters (referred to in the table below as IROs) can be found within the strategy section within each of the topical disclosures. The current effects of these material IROs on our business model, value chain, strategy and decision making, and how we have responded to these effects are reflected, in particular, in the key actions we have taken over the year, and the actions which we have planned. Anticipated effects of these material IROs on our business model, value chain and strategy are also reflected in the key actions we plan to take. Further information regarding both our strategy and actions can be found in the topical disclosures below relating to each of these IROs. In relation to the anticipated effects of our material IROs on our business model, value chain and strategy and decision making, we will continue to reflect on how we can appropriately monitor and respond to these effects. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 48 | ## Schedule to the Directors' Report: Sustainability Statement ## General Information | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | Value Chain | | | Time Horizon | | | | ESRS | Page | IRO | Type | Upstream | Own Operations | Downstream | Short >= 1year) | Medium (2 -5 years) | Long (>5 years) | | E1 | [49](#ia16d0659cd524c01ae655d82fa382c3d_6685) | Climate Change | Negative Impact | | | \* | \* | \* | \* | | E1 | [49](#ia16d0659cd524c01ae655d82fa382c3d_6685) | Climate Change - Transition | Risk | | | \* | \* | \* | \* | | E4 | [59](#ia16d0659cd524c01ae655d82fa382c3d_9512) | Drivers of Biodiversity | Negative Impact | | | \* | \* | \* | \* | | Entity Specific | [63](#ia16d0659cd524c01ae655d82fa382c3d_13145) | Sustainable Products and Services\* | Positive Impact | | | \* | \* | \* | \* | | Entity Specific | [63](#ia16d0659cd524c01ae655d82fa382c3d_13145) | Sustainable Products and Services\* | Opportunities | | | \* | \* | \* | \* | | S1 | [67](#ia16d0659cd524c01ae655d82fa382c3d_9108) | Equal Opportunities for All | Positive Impact | | \* | | \* | \* | \* | | S1 | [74](#ia16d0659cd524c01ae655d82fa382c3d_9134) | Working Conditions | Positive Impact | | \* | | \* | \* | \* | | S2 | [80](#ia16d0659cd524c01ae655d82fa382c3d_7023) | Labour Rights (including Modern Slavery) | Negative Impact | | | \* | \* | \* | \* | | S3 | [86](#ia16d0659cd524c01ae655d82fa382c3d_7165) | Communities' economic, social and cultural rights - Impact of climate change | Negative Impact | | | \* | \* | \* | \* | | S3 | [86](#ia16d0659cd524c01ae655d82fa382c3d_7165) | Communities' economic, social and cultural rights - Just transition\* | Negative Impact | | | \* | \* | \* | \* | | S3 | [86](#ia16d0659cd524c01ae655d82fa382c3d_7165) | Communities' civil and political rights - Weapon and dual-use technology exports | Negative Impact | | | \* | \* | \* | \* | | S3 | [86](#ia16d0659cd524c01ae655d82fa382c3d_7165) | Communities' civil and political rights - Land rights | Negative Impact | | | \* | \* | \* | \* | | S3 | [86](#ia16d0659cd524c01ae655d82fa382c3d_7165) | Indigenous Peoples rights | Negative Impact | | | \* | \* | \* | \* | | S4 Entity Specific | [92](#ia16d0659cd524c01ae655d82fa382c3d_9467) | Cybersecurity\* | Negative Impact | | | \* | \* | \* | \* | | Entity Specific | [95](#ia16d0659cd524c01ae655d82fa382c3d_8423) | Data Privacy - Accurate records\* | Negative Impact | | \* | | \* | \* | \* | | Entity Specific | [95](#ia16d0659cd524c01ae655d82fa382c3d_8423) | Data Privacy - Right to privacy of consumers and end-users\* | Negative Impact | | | \* | \* | \* | \* | \*denotes entity specific sustainability matter. Resilience of strategy and business model Barclays Bank Group assesses the resilience of its strategy and business model regarding the capacity to identify material impacts, address related risks and take advantage of resulting material opportunities. This is the responsibility of the relevant committees and senior management, who are responsible for ensuring the risk and opportunities are considered in both strategy and business model. At this point in time, there are no material amendments required. Further specific details can be found in the Climate Change and Sustainability Product and Service sections on pages [49](#ia16d0659cd524c01ae655d82fa382c3d_6696) and [63](#ia16d0659cd524c01ae655d82fa382c3d_13170) respectively. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 49 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information #### Contents Barclays Bank Group identified material IROs in the following environmental topical standards: | | | | | --- | --- | --- | | | | | | ESRS Standard | Section | Page | | E1 | Climate Change | [49](#ia16d0659cd524c01ae655d82fa382c3d_6685) | | E4 | Biodiversity and Ecosystems | [59](#ia16d0659cd524c01ae655d82fa382c3d_6799) | E1: ### Climate Change Climate Change Impact The Double Materiality Assessment process identified impacts associated with the material sustainability matter for climate change as outlined in the table below: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Material Impact | | Value Chain | | | Time Horizon | | | | Description | Type | Upstream | Own Operations | Downstream | Short (>1year) | Medium (2 -5 years) | Long (>5 years) | | Climate Change | | | | | | | | | Barclays Bank Group could be connected to potential downstream negative impacts on people and the environment, over the short, medium and long term, in relation to providing financial services to clients in high emitting 1 sectors. | Negative Impact | | | \* | \* | \* | \* | Note: 1    For more detail on high emitting sectors, please refer to the Metrics section on page [57](#ia16d0659cd524c01ae655d82fa382c3d_6740). Strategy Strategy and Transition Plan Barclays’ ambition is to be a net zero bank by 2050, aligning our financing with the goals and timelines of the Paris Agreement, by focusing on achieving net zero operations, reducing our financed emissions and financing the transition.  Barclays’ climate strategy is underpinned by the way it assesses and manages its exposure to climate-related risks. Barclays Bank Group contributes to achieving Barclays’ climate strategy and works closely with its clients to ensure that over time the activities it finances are aligned to the goals and timelines of the Paris Agreement. Barclays is currently developing a transition plan which it intends to publish later this year. Barclays Bank Group forms part of Barclays and will contribute to achieving the objectives of the Barclays transition plan. Barclays Bank Group does not have its own transition plan for climate change mitigation nor does it plan to adopt its own transition plan. Climate Change Risk The Double Materiality Assessment process also identified a risk associated with the material sustainability matter for climate change as outlined in the table below: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Material Risk | | Value Chain | | | Time Horizon | | | | Description | Type | Upstream | Own Operations | Downstream | Short (>1year) | Medium (2 -5 years) | Long (>5 years) | | Climate Change - Transition | | | | | | | | | Barclays Bank Group may face potential material financial risk from transition risks over the short, medium and long term from its investment and financing activities particularly with clients in high-emitting industries. The transition risks caused by extensive policy, legal, technology and market changes to address mitigation and adaptation requirements related to climate change may result in significant adverse impacts to the wholesale credit corporates, especially within high-emitting industries which may not be well-prepared to transition. | Risk | | | \* | \* | \* | \* | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 50 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information Strategy Barclays is exposed to financial risks from climate change through its downstream financing and investment activities. Barclays has implemented a risk management framework for climate risk which integrates within the broader ERMF aiming to guide effective management of climate risk and support the delivery of the Group’s Climate Strategy. Climate Risk is considered as one of the principal risks within Barclays ERMF. The key principle underpinning this framework is that climate risk (including transition risk) is recognised as a driver of other existing financial (Credit, Market, Treasury and Capital) and non-financial (including Operational and Reputational) risks. The approach to identifying, measuring and managing Climate-related risk is consistent with other key risks, however there remains significant uncertainty around when these risks will materialise. The bank conducts assessment across short, medium and long-term timeframes to understand and quantify the impact of climate physical and transition risks in its financed portfolios. The climate risk management framework developed at the Group level is applicable to its entities and business lines. The approach is customised to reflect portfolio characteristics, size and exposure to specific climate risk drivers (including transition risk drivers) within various portfolios. Climate scenario analysis forms a key part of the Barclays Bank Group's approach to assessing and quantifying the impact of both physical and transition risks in the Bank's portfolios. Through climate scenario analysis, the climate related risks and uncertainties can be translated into financial impacts to the Bank, allowing Barclays to identify risks and better understand the resilience of its business strategy and the impact on the Bank's business model. Policies Policies relating to Climate Change Impacts Climate Change Statement Barclays Bank Group applies the Barclays position statement titled ‘Climate Change Statement’ to manage our potential downstream negative impact for certain high emitting sectors. The statement addresses climate change mitigation and relates to the potential negative downstream impact that Barclays Bank Group can have by continuing to finance activities and/or companies active in high emitting sectors which significantly contribute to global emissions. The statement does not address climate change adaptation, energy efficiency or renewable energy deployment. With regards to climate change adaptation, energy efficiency and renewable energy deployment, we address this by including the financing of the above activities as eligible under our Sustainable and Transition Finance Framework, to be counted towards Barclays Group's $1 trillion sustainable and transition finance target, rather than through the use of policy. The Climate Change Statement sets out Barclays position and approach to certain high emitting sectors with tightening policy criteria and increasing expectations over time as well as outlining Barclays focus on supporting its clients to transition to a low carbon economy. The statement has been developed in addition to Barclays sector-specific emission reduction targets consistent with the Barclays Purpose. The statement considers risk and market factors to energy and power sectors with higher carbon-related exposures, emissions or those which may have an impact on certain sensitive environments or communities. The key contents of the Climate Change Statement are: • Conditions or restrictions on the financing of certain activity such as project finance for expansion projects in upstream oil and gas, or financing provided to certain clients or groups active in sectors including but not limited to upstream oil and gas, thermal coal mining and thermal coal power • The applicability of stated financing restrictions and the governance approach of the statement • A brief overview of – The Client Transition Framework (CTF), which evaluates corporate clients’ current and expected future progress as they transition to a low-carbon business model. Barclays conducts these assessments annually for corporate clients that are in-scope for sectors where BlueTrackTM targets have been set for Barclays – The senior Client Transition Review Forum (CTRF) which carries out targeted reviews of groups (any entity, the relevant parent company and its consolidated subsidiaries, as a whole) subject to a CTF assessment. These reviews are informed by the CTF assessment and take into account consideration of relevant risks and other business factors • The approach to Enhanced Due Diligence (EDD) which evaluates groups that are in scope of the statement, performance on a range of environmental and social issues. The referral and escalation procedure for groups assessed as higher risk following either an EDD review or following a CTRF assessment Barclays conducts EDD on a case-by-case basis and groups in scope of this statement are assessed against the Equator Principles (if a project finance or credit transaction is deemed to be in scope) including, where appropriate, any relevant International Finance Corporation (IFC) performance standards. The Performance Standards are directed towards clients, providing guidance on how to identify risks and impacts, and are designed to help avoid, mitigate and manage risks and impacts as a way of doing business in a sustainable way, including stakeholder engagement and disclosure obligations of the client in relation to project-level activities. The Climate Change Statement is regularly reviewed, considering the rapidly changing external environment. The statement is informed by engagement with Barclays stakeholders, including shareholders, clients, subject specialists and civil society. Barclays also use these engagements to share the statement with affected stakeholders and clients. Any review of this Statement will be undertaken by the Barclays Group Sustainability Committee with escalation to the Barclays Board Sustainability Committee or Barclays Board (if appropriate). Group-wide frameworks, policies and standards will be adopted throughout Barclays and applied unless local laws or regulations require otherwise. As such, the BB PLC CEO is the most senior individual in the organisation that is accountable for the implementation of the statement. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 51 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information The scope of the statement is outlined in the table the below and covers our approach to financing certain sensitive sectors (thermal coal mining, coal-fired power generation, mountain-top coal removal, upstream oil and gas and unconventional oil and gas including oil sands, Arctic oil and gas, hydraulic fracturing ('fracking'), Amazon oil and gas, ultra-deep water and extra heavy oil) and enhanced due diligence requirements for biomass. Words in italics as captured in the table below are defined in the Key Definitions table in the 'Further Information' section starting from [105](#ia16d0659cd524c01ae655d82fa382c3d_8850). These definitions clarify the intended scope of this statement. The Climate Change Statement is available to stakeholders on the Barclays website. | | | | | --- | --- | --- | | | | | | Sector | Project Level | Entity Level | | Upstream Oil and Gas | As at the date of this statement, restrictions on business appetite are as follows: • We will not provide project finance for expansion projects or infrastructure projects primarily to be used for such expansion projects • We will not provide other direct financing to Energy Groups for expansion projects or infrastructure projects primarily to be used for such expansion projects | As at the date of this statement, • We expect all Energy Groups to be producing relevant information in relation to their transition plans or decarbonisation strategies • Any new financing or renewal of existing financing for Non-diversified Groups where more than 10% of their total planned oil and gas capital expenditure is in long-lead expansion will be by exception • We will not provide financing to new clients that are Energy Groups where more than 10% of their total planned oil and gas capital expenditure is in expansion Energy Groups meeting any of the following will be subject to mandatory annual review by the CTRF to determine whether continued financing support is appropriate in the context of their investment plans and overall decarbonisation or transition plans: • Energy Groups where more than 10% of their total planned upstream oil and gas capital expenditure is in expansion • Non-diversified Groups – We recognise that Non-diversified Group s may present greater transition risk than diversified Energy Groups, in particular those engaged in long-lead expansion – We have very limited appetite for Non-diversified Groups where they are engaged in long- lead expansion • Energy Groups with the lowest CTF assessment scores Notwithstanding the outcomes of the CTRF reviews, financing decisions are transaction specific and will continue to be subject to consideration by relevant committees, if appropriate, to consider issues such as credit risk, reputational risk and capital impact. From 1 January 2026, we will only provide financing to Energy Groups if they are able to demonstrate that they are committed to reducing their own emissions by having: • net zero-aligned near-term Scope 1 and 2 emissions reduction targets (absolute or intensity-based); and • targets to reduce methane emissions by 2030, aligned with OGCI, OGMP2.0, or similar industry guidance; and a commitment to end all routine / non-essential venting and flaring by 2030 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 52 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information | | | | | --- | --- | --- | | | | | | Sector | Project Level | Entity Level | | Unconventional Oil and Gas | As at the date of this statement restrictions on business appetite are as follows: Amazon Biome/Ultra-Deep Water/Extra Heavy Oil • We will not provide direct financing to Energy Groups for any oil and gas projects in the Amazon Biome , or any oil and gas projects involving Ultra-Deep Water and/or Extra Heavy Oil, or infrastructure projects primarily to be used for such oil and gas projects Arctic Circle • We will not directly finance oil and gas projects in the Arctic Circle Hydraulic Fracturing (Fracking) • We will not directly finance projects involving Hydraulic Fracturing (Fracking) in the UK and Europe Oil Sands • We will not provide direct financing wholly or primarily to be used for the construction of new: (i) Oil Sands exploration, production and/or Oil Sands processing assets; or (ii) Oil Sands pipelines | As at the date of this statement restrictions on business appetite are as follows: Amazon Biome • We will not provide financing to Clients engaged in exploration, appraisal, development, and production of oil and gas in the Amazon Biome Arctic Circle • We will not provide financing to Clients materially engaged i n oil and gas exploration and production or pipeline transportation operations in the Arctic Circle • We will not provide financing to Clients with ancillary oil and gas businesses in the Arctic Circle where proceeds are known to be for supporting new oil and gas exploration, production or new pipeline transportation projects in the Arctic Circle Hydraulic Fracturing (Fracking) • We will not provide financing to Clients materially engaged in Fracking activities in the UK and Europe Oil Sands • We will not provide financing to Oil Sands exploration and production companies • We will not provide general corporate purposes financing that is specified as being wholly or primarily for the construction of new: (i) Oil Sands exploration, production and/or Oil Sands processing assets; or (ii) Oil Sands pipelines We will not provide financing to Energy Groups whose aggregate share of production in Oil Sands, Extra Heavy Oil, Hydraulic Fracturing in the UK/EU, and Arctic Circle oil and gas exceeds 20% of their total oil and gas production. | | Thermal Coal Mining | As at the date of this statement, restrictions on business appetite are as follows: • No project finance for greenfield development or material expansion of thermal coal mines anywhere in the world, including captives • No project finance for development of infrastructure projects primarily to be used for thermal coal mines anywhere in the world | As at the date of this statement, restrictions on business appetite are as follows: • No financing to new clients engaged in thermal coal mining • No general corporate purpose financing that is specified as being for new or material expansion of thermal coal mining • No financing to existing clients that generate more than 30% of revenues from thermal coal mining • No general corporate purposes financing to clients with entities engaged in opening new thermal coal mines or material expansion of existing thermal coal mines, unless an undertaking is received from the borrower, or we are otherwise satisfied that the proceeds of such financing will not be made available to entities engaged in opening new thermal coal mines or material expansion of existing thermal coal mines By 1 January 2030: • For EU and OECD, we will phase out financing to all clients engaged in thermal coal mining • For the rest of the world, we will no longer provide financing to clients that generate more than 10% of revenue from thermal coal mining By 1 January 2035, we will phase out financing for all clients engaged in thermal coal mining. | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 53 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information | | | | | --- | --- | --- | | | | | | Sector | Project Level | Entity Level | | Thermal Coal Power | As at the date of this statement, restrictions on business appetite are as follows: • No project finance to enable the construction or material expansion of thermal coal-fired power plants anywhere in the world, including captives | As at the date of this statement, restrictions on business appetite are as follows: • No general corporate purpose financing that is specified as being for new or material expansion of thermal coal-fired power plants • No financing to clients that generate more than 30% of revenue from thermal coal-fired power generation • No general corporate purposes financing to clients with entities engaged in developing new thermal coal-fired power plants or material expansion of existing thermal coal-fired power plants, unless an undertaking is received from the borrower, or we are otherwise satisfied that the proceeds of such financing will not be made available to entities engaged in developing new thermal coal- fired power plants or material expansion of existing thermal coal - fired power plants By 1 January 2030: • For EU and OECD, we will phase out financing to clients engaged in thermal coal-fired power generation • For rest of the world, we will no longer provide financing to clients that generate more than 10% of revenue from thermal coal-fired power generation By 1 January 2035, we will phase out financing for all clients engaged in thermal coal-fired power generation. Exceptions to the phase out date(s) for thermal coal-fired power generation apply if: • Remaining thermal coal-fired power plants are abated to reduce GHG emissions to near zero; OR • Remaining thermal coal-fired power plants solely utilised as backup to low carbon power supply; OR • Remaining thermal coal -fired power plants are required to remain open by operation of law, regulation or contract. | | Mountain Top Removal (MTR) Coal Mining | As at the date of this statement, Barclays will not directly finance projects or developments using MT R coal mining. | | | Biomass | Barclays will conduct EDD on Groups that have >500MW installed Biomass capacity AND/OR >50% of their total installed capacity as Biomass. | | General exceptions apply to our thermal coal mining policy in the following circumstance • In relation to any transition finance provided by Barclays to clients reducing their thermal coal portfolio including retrofitting of existing facilities General exceptions apply to out thermal coal power policy in the following circumstances • In relation to any transition finance provided by Barclays to clients reducing their thermal coal portfolio including retrofitting of existing facilities and where Barclays is providing financing for decommissioning plants for those unable to transition Policies relating to Climate Risk Climate Risk is a Principal Risk with the Bank's ERMF. Barclays Bank Group has implemented a risk management framework for climate risk within the broader Enterprise Risk management framework aiming to guide effective management of climate risk and support the delivery of its Climate Strategy. The key principle underpinning this framework is that climate risk (including transition risk) is recognised as a driver of other existing financial (Credit, Market, Treasury and Capital) and non-financial (including Operational and Reputational) risks, and not treated as a standalone risk type. The approach to identifying, measuring and managing Climate-related risk is consistent with other key risks, however there remains significant uncertainty around when these risks will materialise. The Bank conducts assessment across short, medium and long-term timeframes to understand and quantify the impact of climate physical and transition risks in its financed portfolios. The climate risk management framework developed at the Group level is applicable to its entities and business lines. The approach is customised to reflect portfolio characteristics, size and exposure to specific climate risk drivers (including transition risk drivers) within various portfolios. The emissions resulting from the activities of customers and clients to whom financing is provided is measured using BlueTrack™. Barclays has developed Client Transition framework to evaluate corporate client's progress as they transition to a lower-carbon economy. The client CTF scores and emission data from BlueTrack™ are further used to inform key risk management practices, including risk monitoring, setting limits, managing concentrations, credit decisions and stress testing exercises. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 54 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information The Head of Climate Risk is the owner of Climate Principal risk, accountable for the management and oversight of the climate risk management framework and climate risk profile. The oversight and management of climate-related risks occur at number of levels including through various governance committees and forums across business lines and legal entities. Actions Actions taken in relation to Climate Change Impacts We have taken and will continue to take the following key actions, grouped under decarbonisation levers, as Barclays could be connected to potential downstream negative impacts on people and the environment, over the short, medium and long term, in relation to providing financial services to clients in high emitting sectors. Measuring and monitoring emissions Enhanced due diligence (EDD) to achieve Climate Change Statement objectives We conduct EDD on certain clients in-scope of our policy statements as defined in Barclays internal EDD approach, on an annual basis via detailed EDD questionnaires, which are used to evaluate their performance on a range of environmental and social issues in addition to adherence to restrictions detailed in our policy statements and may be supplemented by a review of client policies/procedures, further client engagement and adverse media checks as appropriate. The outcome of this action is the evaluation of a clients performance on a range of environmental and social issues and adherence to restrictions detailed in our policy statements, which in turn determines whether further review and client engagement may be required throughout the year and can be used to inform our financing decisions. Enhanced due diligence for clients in scope of our policy statements is undertaken by Barclays client coverage teams, supported by control teams, as well as the Group Sustainability team who may advise on the application of the statements. Application of enhanced due diligence in relation to other identified impacts, risks and opportunities, is detailed in the relevant pages. We continue to conduct EDD on certain clients operating in the following sensitive sectors covered by our Climate Change Statement: thermal coal mining, thermal coal-fired power generation, mountain-top coal removal, oil sands, Arctic oil and gas, hydraulic fracturing ('fracking') and have extended enhanced due diligence to cover certain upstream oil and gas and unconventional oil and gas including Amazon oil and gas, ultra-deep water and extra heavy oil and biomass. Financed emissions tracking and benchmarking Barclays measures financed emissions and tracks them at a portfolio level against the goals and timelines of the Paris Agreement – this methodology is called BlueTrack™. Currently, Barclays has set emissions reduction targets for Upstream Energy, Power, Steel, Cement, Automotive manufacturing, Aviation, UK Commercial Real Estate, UK Agriculture portfolios and convergence point for UK Housing. The BlueTrack™ methodology was developed to measure and track Barclays progress against  targets integrating 1.5°C aligned scenarios. The BlueTrackTM methodology uses an external climate scenario to construct a Paris-aligned portfolio benchmark that defines how a given financing portfolio will need to reduce emissions over time. These scenarios have been selected because they have been developed by reputable external providers, are aligned with the Paris Agreement goals, and are sufficiently granular. The financed emissions for Barclays Bank Group are reported within the metrics section of this disclosure. The expected and achieved reduction in emission from these above actions have not been calculated for Barclays Bank Group. Measuring the result of our actions on achieved and expected GHG reductions is both non-linear and complex, and therefore we have not isolated the specific impact of our actions. Further, with respect to expected GHG reductions, it is very difficult to accurately quantify the likely specific impact of our actions due to our dependence on our clients’ ability to commercially decarbonise their business models, which is influenced by a wide range of external factors, including market developments, technological progress and its financial viability, a stable and supportive policy environment, regulatory alignment, changes to societal behaviour, geopolitical developments and regional variations. Therefore, we do not report our achieved or expected GHG reductions specifically as a result of our actions. Sustainable and transition financing We continue to expand the breadth of sustainable and transition finance banking products we offer to support the transition to a low carbon economy including those aimed at mitigating climate change. For details on this please refer to actions on page [63](#ia16d0659cd524c01ae655d82fa382c3d_13165) of the Sustainable Products and Services section. Actions taken in relation to Climate Risk Barclays continues to enhance and sophisticate its risk management capabilities with  increased knowledge and ability to identify, quantify and manage climate related risks, including transition risk, in line with its Climate Risk Framework. To facilitate embedding of Climate Risk Framework, the Group has developed and enhanced processes tools, models and data platforms as applicable. The Barclays Group has established a risk appetite for climate risk which is managed through various risk limits, trigger and indicators set across different Principal Risk types. Regular monitoring, reporting, and governance provide oversight of climate risk profile and exposures and ensure they remain within the appetite. Corrective actions are taken to address any breaches or excesses. The Bank regularly performs client-level assessments and scenario analysis exercises to identify and assess portfolios that are more vulnerable to climate risks. These actions are completed on a continuous basis through the year. For further information, on actions, refer to the Climate Risk Management section of the Risk Review on page [141](#ia16d0659cd524c01ae655d82fa382c3d_154). Climate Scenario analysis The climate scenario analysis is primarily used for (1) understanding Barclays’ resilience to climate scenarios, (2) as a consideration within its financial planning process, (3) assessing the financial impacts from Barclays meeting its sectoral BlueTrackTM targets consistent with limiting the increase in global temperatures to 1.5°C, and (4) within its assessment of Expected Credit Losses reported under IFRS9. For year-end 2024, the IFRS 9 Downside 2 scenario has been updated and aligned to the 2024 Internal Stress Test scenario which is climate aware. The output of the ECL review did not provide variances in ECL deemed sufficiently certain to warrant raising an additional climate- related charge in 2024 | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 55 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information Barclays’ 2024 financial planning process included a review of our strategy, its implementation and tracking our contribution to Barclays Group climate related targets, as well as, capturing a view of climate-related risks and opportunities, which aligns with how we manage other risks. Barclays central medium term planning process also considered the impact of current government and regulatory policies into the baseline planning scenario. The planning process included an assessment of our financed emissions reductions for some of our highest emitting sectors. We also considered impairment over the horizon of the financial plan. At this point in time, there are no associated material amendments required to the financial plan. Based on the scenario analysis exercises undertaken to date, Barclays' strategy remains resilient to climate risks. This assessment includes the conclusion from the 2024 Internal Stress Test which had climate risk drivers, with further details included below. The 2024 Internal Stress Test was performed at the Barclays Group level and covers portfolios of all the Barclays Group's entities including BB PLC. A stress scenario integrating climate risk factors was produced for 2024 Internal Stress Test which covered the full balance sheet. This exercise was designed to assess Barclays' financial resiliency to both climate and traditional macroeconomic risk– and the extent to which Barclays would remain within risk appetite. The stress scenario was internally designed with consideration of Barclays' specific portfolio vulnerabilities. The scenario modelling includes sector specific assumptions, such as the extent to which sectors can pass on carbon taxation costs, and the exposure to physical risk hazards. The impacts of stress remain manageable within the Bank's existing risk profile. Results of the exercise indicate that losses are highest within the Investment Bank, driven by exposure to carbon intensive sectors that are most vulnerable from the fast transition scenario, such as the introduction of carbon pricing schemes and significant declining oil and gas demand. Scenario details The climate scenario was designed and developed with our internal specialist scenario expansion team, leveraging the tools and approaches of the existing scenario expansion processes and supplementing these with specific climate analysis. The stress scenario narrative unfolds over a five-year timeframe, aligned to a less than 2°C pathway and incorporated incremental impacts of both climate physical and transition risk factors on the macroeconomic stressed pathways. The scenario included the implications of policy announcements that trigger immediate asset repricing, while more stringent policy requirements unfold over a longer time horizon – dampening recovery in the latter years. Against this backdrop the scenario also includes considerations for physical risk. The scenario also includes the following key events occurring over the short and medium term horizon, which is a 5 year timeframe. a. Consumer preferences shift toward greener products and practices along with reduction in consumption to cope with the recessionary environment; b. Investors reallocating their capital from brown assets or those with poor transition plans to greener firms resulting in shocks across equity markets; c. Acceleration and tightening of EPC minimum standards for Buy-to-Let, Social Housing, and Commercial Real Estate buildings in the UK; d. Under continued behavioural pressure from consumers and investors, large-scale plans for transitioning to a more sustainable business model occur where possible. The return of capital on these plans and the associated delay to recovery leads to a slight prolonging of the stress, but the creation of a transition plan leads to confidence in financial markets by investors; e. New policy announcements in the UK and US alongside increase in the Government investment to support faster transition; f. Ramping up of emissions trading schemes with carbon price increasing to to $141/tCO2 within 12 months from 2027; and g. A reduction in exports, supply-side shocks and trading frictions from the introduction of Carbon Border Adjustment Mechanisms. The scenario assumes following impacts on Barclays: 1. Amplified market shocks: additional to existing macroeconomic shocks, further equity and credit shocks for carbon-intensive industries and financiers, as a result of immediate repricing; 2. Amplified credit deterioration: increase in credit risk within carbon-intensive industries as a result of lower earnings expectations and refinancing risks; and 3. Increase in frequency of physical risk events: increase in the occurrence of physical hazards such as flood, hurricanes and droughts over stress time-horizon. Based on above, scenario variables are calibrated with varying levels of granularity guided by the scenario narrative and considerations for compounding effects of economic downturn and climate stresses. Material technological development has not been assumed within the economic projections, given the immediate and short time horizon of the scenario. Results and insights The results of the exercise showed that, in the Investment Bank and UK Corporate portfolio within Barclays Bank Group, losses were driven mostly by companies operating in heavily emission intensive industries due to rising carbon prices ($349/tCO2e) over the scenario, or those within sectors where demand for products and services is rapidly falling due to consumer behaviour shifts or wider decarbonisation of the economy. For the Oil and Gas sector, whilst many companies were able to withstand the 5-year stress given strong balance sheets post high prices in 2022, over longer time frames, non-linear increases in defaults are likely to be observed as carbon costs severely cut into the | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 56 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information industry’s profits, alongside increasingly uneconomical assets due to market shifts caused by transition risk and increase frequency of physical risk. Whilst the impact is significant they remain manageable within the Banks existing risk profile. We acknowledge however that further advances in modelling capability and data availability are needed to fully understand the extent of these losses. Challenges and Limitations Barclays is continuing to develop its understanding of the interlinking relationships between climate, particularly transition, and macro variables. A lack of adequate historical data being a key limitation to progress modelling capabilities. There exists inherent challenges in climate modelling due to limitations in data quality and availability, given the short history of climate assessments within the financial services industry. There exists inherent uncertainties with scenario design largely attributed to limited history of the interactions between climate risks and the economy. There is a significant level of uncertainty with climate stress-testing projections in (i) how the scenario will manifest; (ii) how customers and clients will react; and (iii) the final loss quantification.  Over longer time horizons, it becomes increasingly difficult to capture the range of second-order effects as physical and transition risks evolve, assess the rate in which risks manifest or subside, or identify inflection points. Future Actions planned in relation to Climate Change Impacts and Risks In terms of additional future key actions, which are relevant to both our material climate IROs (Impact, Risk and Opportunities). Barclays Bank Group will continue to contribute to Barclays efforts to manage portfolios, maintain balance between commercial objectives, prudent risk management practices and other non-financial objectives in support of Barclays ambition to be net zero by 2050. As referred to above, Barclays intends to publish a transition plan later this year. Barclays periodically reviews their policies and the actions being taken to achieve their policy objectives and targets, considering the rapidly changing environment and as informed by engagement with stakeholders, shareholders, clients, subject specialists, and civil society groups. Barclays will also continue to periodically review  their risk appetite for climate risk to maintain alignment with their strategic objectives as well as their approach to managing climate risk for alignment with regulatory developments. As such, we will continue to support and contribute to these key Barclays actions, which we expect to contribute to the achievement of policy objectives and Barclays’ targets across Barclays on an ongoing basis. Targets Considering Climate Change Impacts Barclays Group views sustainability as a global issue which is best tackled from a top down approach, with targets set at the Barclays Group level. Barclays Bank Group does not have any entity specific targets relating to its financed emissions. Further, given the global footprint of many Barclays clients, who often engage with multiple Barclays entities, setting targets at the Barclays Group level ensures a more cohesive and aligned approach to achieve our sustainability objectives. Barclays Bank Group as a part of the wider reporting group contributes towards achieving the emissions targets set at Barclays to manage climate change impacts. Therefore we track the effectiveness of polices through the monitoring of the progression against the targets set at Barclays level. Barclays has now set 2030 reduction targets for eight high-emitting sectors: Upstream Energy, Power, Cement, Steel, Automotive Manufacturing (LDV), UK Commercial Real Estate, UK Agriculture and Aviation; and a convergence point for UK Housing. These targets are outlined in the below table. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 57 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Financed emissions metrics - Barclays | | | | | | | | | | Sector | | | | Setting our targets | | | | | | Sector | Sector boundaries | Emissions Scope | GHG included | Reference scenario | Target metric | Unit of measurement | Baseline year | Target vs baseline | | Energy | Upstream Energy | 1,2 & 3 | Carbon dioxide and Methane | IEA SDS IEA NZE2050 | Absolute emissions | MtCO2e | 2020 | -15% by end of 2025 -40% by end of 2030 | | Power | Power generators | 1 | Carbon dioxide | IEA SDS IEA NZE2050 | Physical Intensity | kgCO2e/MWh | 2020 | -30% by end of 2025 -50% to -69% by end of 2030 | | Cement | Cement manufacturers | 1 & 2 | All GHGs | IEA NZE2050 | Physical Intensity | tCO2e/t | 2021 | -20% to -26% by end of 2030 | | Steel | Steel manufacturers | 1 & 2 | All GHGs | IEA NZE2050 | Physical Intensity | tCO2e/t | 2021 | -20% to -40% by end of 2030 | | Automotive Manufacturing | Light Duty Vehicles manufacturers | 1,2 & 3 | All GHG for scope 1 and 2; Carbon dioxide for scope 3 | IEA NZE2050 | Physical Intensity | gCO2e/ km | 2022 | -40% to -64% by end of 2030 | | Aviation | Commercial Aviation (Air Travel) – Passenger (including belly cargo) and Dedicated cargo | 1 & 3 | Carbon dioxide for scope 1; All GHGs for scope 3 | MPP Prudent | Physical Intensity | gCO2e/RTK | 2023 | -11% to -16% by end of 2030 | | UK Commercial Real Estate | UK Corporate Bank | 1 & 2 | CO2, methane and nitrous oxide | CRREM II | Physical Intensity | kgCO2e/m2 | 2023 | -51% by end of 2030 | | Agriculture | UK Livestock & Dairy Farming | 1,2 & 3 | Carbon dioxide, methane and nitrous oxide | CCC BNZ | Absolute emissions | MtCO2e | 2023 | -21% by end of 2030 | | UK Housing1 | UK buy-to-let and owner-occupied mortgages, Social Housing and Business Banking | 1 & 2 | Carbon dioxide, methane and nitrous oxide | CCC BNZ | Physical intensity | kgCO2e/m 2 | 2023 | Portfolio convergence point vs. baseline -40% by end of 2030 | Note 1 Barclays has identified a 2030 emission intensity convergence point for UK Housing but has not set a formal target. Considering Climate Risk The BlueTrack™ emission reduction targets established at the Barclays level for high-emitting sectors also include legal entities portfolios. These emission reduction targets and CTF scores inform and support management of transition risks within alongside various exposure measures used within the principal risk types. Barclays Bank Group doesn't set specific entity level emission reduction targets. The risk appetite for climate risk is translated into a detailed series of risks limits, triggers and indicators to control and manage transition risks and is regularly reviewed by Board Risk Committee and enhanced to maintain alignment with the Barclays strategic objectives. The approach and practices for managing climate risk are reviewed on a regular basis for alignment with regulatory developments and industry leading practices. A control environment for climate risks has been established in accordance with Barclays' Control Framework, the Bank has also established a governance forum to provide oversight of climate-related risk events, policy and issue management. Additionally, the assurance teams are responsible for performing climate risk specific reviews to ensure effectiveness of the Climate Risk Framework and risk practices. Metrics Metrics relating to Climate Change Impacts Emissions: We have disclosed Scope 3 Category 15 emissions in line with the results of our DMA and obligations under the ESRS. We have determined it appropriate to report absolute emissions only from activities where Barclays have set targets due to the below reasons: 1. Within financed emissions, the activities where Barclays has set targets are those that drive the group business strategy and client action. The activities where we have set targets are aligned to the recommendations of the Net Zero Banking Alliance (NZBA) for setting targets on high-emitting sectors. 2. Upstream Energy and Power Generation are also activities which are embedded within our strategic non-financial objectives for executive compensation. 3. Barclays has taken into account stakeholder engagement, including engagement with affected stakeholders in reaching the conclusions set out above as to material impact and related risk and the relevance and materiality of the information proposed to be disclosed. The Scope 3 Category 15 emissions metrics, in the table below, have been calculated through our BlueTrackTM methodology, outlined in the Financed emissions tracking and benchmarking section above. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 58 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information For other activities where Barclays have not set targets, the Barclays Bank Group has not disclosed metrics. As disclosed in the Reducing our financed emissions section of the Barclays annual report, the activities where Barclays has set targets represent approximately 43% of Barclays Group’s financed emissions. Scope 3 categories 1-14 have been considered not significant for reporting. No baseline figures have been included because targets have not been set at the Barclays Bank Group’s level. | | | | | | --- | --- | --- | --- | | | | | | | Scope 3 financed emissions where Barclays has set targets | | | | | Activities1 | Sector boundaries | Unit of measurement | Dec 2024 | | Upstream Energy | Upstream Energy (producers of coal, oil, gas and NGLs) | MtCO2e | 41.1 | | Power | Power generators | MtCO2e | 14.0 | | Cement | Cement manufacturers | MtCO2e | 0.8 | | Steel | Steel manufacturers | MtCO2e | 0.9 | | Automotive Manufacturing | Light Duty Vehicles manufacturers | MtCO2e | 3.8 | | Aviation | Commercial Aviation (Air Travel) – Passenger (including belly cargo) & Dedicated cargo | MtCO2e | 4.9 | | UK Commercial Real Estate | UK Corporate Bank | MtCO2e | 0.1 | | UK Housing2 | UK buy-to-let and owner-occupied mortgages, Social Housing and Business Banking | MtCO2e | 0.1 | | Total | | MtCO2e | 65.7 | 1 Barclays Bank plc does not have UK agriculture activities that contribute to the Barclays plc target 2 Barclays has identified a 2030 emission intensity convergence point for UK Housing but has not set a formal target. Our methodology and assumptions in calculating financed emissions Financed emissions are calculated by applying an attribution factor to client emissions. Client emissions are calculated using a range of data quality options, ranging from reported emissions to sector-average emission factors. Based on the PCAF Standard, we use a range of external and internal data feeds to estimate client emissions. We rely on external vendors to source production activity and reported emissions data. In certain cases, the data, fall-back inputs or modelled outputs are overridden using expert judgement. To facilitate this, we run a series of validation tests on both emissions and financial data. Where there is a significant divergence identified with a supporting rationale – for example where a company has divested a material asset not yet reflected in the underlying data – we apply an override to the data. Within each sector, we have defined an appropriate value chain activity and emissions boundary on which our Group targets are defined. We identify in-scope clients based on the internal Barclays Industry Classification (BIC) codes. | | | | | --- | --- | --- | | | | | | Approach for estimating emissions mapped to PCAF DQ scores | | | | Activity | Data Quality option employed | PCAF DQ Mapping | | Upstream Energy | Estimated based on production data Estimated based on average portfolio economic intensity if production data is not available | DQ 3 if production data and company value is available. DQ 5 if production data or company value is not available | | Power generation | | Automotive manufacturing | | Aviation | Estimated based on production data | DQ 3 | | Cement | Reported emissions | DQ 2 if reported emissions and company data is available DQ 5 if production data or company value is not available | | Steel | | UK CRE | Estimated based on data available in EPC certificates Estimated based on average sub-portfolio economic intensity if EPC is not available | DQ 3 if EPC is available. DQ 5 if EPC is not available | | UK Housing | Estimated based on data available in EPC certificates Estimated based on average sub-portfolio economic intensity if EPC is not available | DQ 3 if EPC is available. DQ 5 if EPC is not available | Climate data, models and methodologies are evolving and are not yet at the same standard as more traditional financial metrics – nor are they yet subject to the same or equivalent disclosure standards, historical reference points, benchmarks or globally accepted accounting | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 59 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information principles. Most of our data is collected from external sources, and the quality and methodologies relating to the underlying data can be hard to assess. External sources then require mapping to Barclays’ internal data. While we have set a framework that facilitates a robust matching process, it is likely residual issues will remain for reasons such as mergers and acquisitions within corporate sectors. There are also issues with time lags as most of our data is not available as at the reporting date. Further details on our BlueTrackTM methodology can be found within our Financed Emissions Methodology paper (published in 2025) accessible at: [https://home.barclays/sustainability/esg-](https://home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/) [resource-hub/reporting-and-disclosures/](https://home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/) Internal Carbon Pricing Barclays Bank does not apply an internal carbon pricing scheme, however financed emission and carbon intensity are considered as part of the decision making process in our financing portfolio. ### E4: Biodiversity and Ecosystems The below table describes the impact for the material sustainability matter related to biodiversity and ecosystems, as identified during the DMA process: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Material Impacts | | Value Chain | | | Time Horizon | | | | Description | Type | Upstream | Own Operations | Downstream | Short (> 1year) | Medium (2 -5 years) | Long (>5 years) | | Drivers of Biodiversity | | | | | | | | | Barclays Bank Group could be connected to potential downstream negative environmental impacts over the short, medium and long term in relation to its provision of financial services to clients in sectors which materially contribute to the drivers of biodiversity and ecosystems loss. | Negative Impact | | | \* | \* | \* | \* | Our clients may primarily contribute to the drivers of biodiversity and ecosystems loss through: • highly water intensive operations in water sensitive areas; • converting or degrading land, including deforestation; and • generating excessive and harmful pollutants without appropriate plans to mitigate. We did not identify a material negative impact related to desertification or soil sealing or any operations that affect threatened species. Strategy Barclays is working to build an understanding of the ways our activities and those of our clients impact and depend on nature, including the potential negative impacts on biodiversity and ecosystems in our downstream value chain through the financing we provide to our clients. To better understand how these impacts may originate from our financing of different industry sectors, Barclays has developed a sector heatmap which analyses the potential materiality of nature impacts and dependencies associated with priority sectors identified in the TNFD's Guidance for Financial Institutions, and is informed by sector materiality ratings within the ENCORE1 and SBTN2 tools. Barclays has also conducted deep-dive assessments of the Barclays Mining and Europe Power portfolios, informed by TNFD's LEAP framework for assessing nature-related impacts, dependencies, risks and opportunities. Through these assessments Barclays sought to identify the location of operating sites of in scope Mining and Power clients and their overlap with the Sensitive Locations3  criteria recommended by TNFD. For a selection of prioritised impacts such as land use change, water use, air and water pollution, Barclays evaluated the potential severity and likelihood of these impacts occurring at these sites located in Sensitive Locations, and assessed the related physical and transition risks in a preliminary exercise utilising scenario analysis techniques over short and medium-term time horizons. These assessments provide Barclays and Barclays Bank Group with a detailed understanding of how clients in these selected portfolios may have potentially negative impacts on biodiversity and ecosystems. Barclays is developing a set of recommendations to enhance its approach to managing nature-related impacts and risks, informed by the LEAP assessment findings, which may in turn lead to changes to its strategy over time. Notes 1ENCORE stands for Exploring Natural Capital Opportunities, Risks, and Exposure and is a tool developed by Global Canopy, UNEP-FI, and UNEP WCMC. 2SBTN stands for the Science Based Targets Network 3For the purposes of the LEAP assessment, Barclays defined Sensitive Locations as areas meeting one or more of the following criteria recommended by TNFD: Protected Areas and Key Biodiversity Areas, areas of high ecosystem integrity, areas of rapid decline in ecosystem integrity, and areas of high physical water risk | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 60 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information Policies We apply the following Barclays policy statements in relation to addressing the potential negative impacts on biodiversity and ecosystems in our downstream value chain relating to land use change: • Forestry and Agricultural Commodities (FAC) Statement; • Protected Areas Statement; and • Climate Change Statement. FAC Statement The general objectives of the FAC Statement are to address the potential deforestation (including through direct exploitation or degradation of forests), land conversion and human rights impacts associated with our financing of the forestry and agricultural commodities sectors. The scope of the FAC Statement covers the provision of financial services to Barclays clients involved in the production or primary processing of soy, beef, palm oil or timber in High Deforestation Risk Countries1. The key contents of the FAC Statement are mandatory requirements and non-mandatory expectations for in scope clients covering their policies, zero deforestation commitments, supply chain traceability, verification and reporting. This includes the following policy provisions: • Prohibiting the production or primary processing of soy and beef on/from areas in the Amazon cleared or converted after 2008 • Requiring that palm oil, soy and beef clients commit to having fully traceable and deforestation-free / NDPE2 compliant commodity supply chains by the end of 2025 • Requiring that soy, palm oil and timber clients adhere to relevant sustainability certification schemes; for example palm oil companies are required to obtain Roundtable on Sustainable Palm Oil (RSPO) certification of their palm oil plantations and mills, and forestry and timber companies are required to obtain Forest Stewardship Council (FSC) or Programme for the Endorsement of Forest Certification (PEFC) certification of owned logging sites in High Deforestation Risk Countries. These certifications require that biodiversity in the certified areas are maintained or enhanced, including in High Conservation Value (HCV) areas The FAC Statement is regularly reviewed, considering the rapidly changing external environment. The Statement is informed by engagement with Barclays stakeholders, which may include shareholders, clients, subject specialists and civil society. Any review of this Statement will be undertaken by the Barclays Group Sustainability Committee with escalation to the Barclays Board Sustainability Committee or Barclays Board (if appropriate). The FAC Statement is available to stakeholders on the Barclays website. Barclays group-wide frameworks, policies and standards will be adopted throughout Barclays and applied unless local laws or regulations require otherwise. As such, the Barclays Bank Group CEO is the most senior individual in the organisation that is accountable for the implementation of the statement. As set out above, the FAC Statement addresses deforestation (including direct exploitation of timber), land conversion and related agricultural practices. Protected Areas Statement The objective of the Protected Areas Statement is to support the preservation of biodiversity and ecosystems in Protected Areas3 through a restriction in relation to the provision of project finance to support the development or expansion of a material project in a Protected Area and/ or its buffer zone(s), subject to the criteria set out in the Statement and EDD. It also supports this aim through EDD for other types of financing where it becomes known that a client is developing or expanding assets relating to a material project in a UNESCO World Heritage Site or Ramsar Wetland and/or within its buffer zone(s). The scope of the Protected Areas Statement covers clients developing new assets or expanding existing assets in a Protected Area and/or within its buffer zone(s). Specifically it covers project financing to support the development or expansion of a material project located in a Protected Area and/or within its buffer zone(s), or where it becomes known that a client is developing or expanding assets relating to a material project in a UNESCO World Heritage Site or Ramsar Wetland and/or within its buffer zone(s). The key contents of the Protected Areas Statement are: • A restriction in relation to the provision of project finance to support the development or expansion of a material project in a Protected Area and/or its buffer zone(s); • Reference to restrictions relating to sensitive locations, which may include Protected Areas, in Barclays FAC Statement and Climate Change Statement; and • An overview of Barclays approach to EDD for clients in scope of the Statement. Notes 1High Deforestation Risk Countries are defined in Barclays Forestry and Agricultural Commodities Statement as: • For forestry and timber and palm oil companies: Angola, Argentina, Bolivia, Brazil, Cambodia, Cameroon, Colombia, Côte d’Ivoire, Democratic Republic of Congo, Ecuador, Ethiopia, Gabon, Ghana, Guatemala,  Guinea, Honduras, India, Indonesia, Laos,  Liberia, Madagascar, Malaysia, Mexico, Mozambique, Myanmar, Nicaragua, Nigeria, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Suriname, Tanzania, Thailand, Uganda, Venezuela, Vietnam, Zambia. • For soy and beef companies: Argentina, Bolivia, Brazil, Colombia, Ecuador, Paraguay 2NDPE stands for "no deforestation, no new expansion on peat, no exploitation" – a widely used commitment made by companies in the palm oil sector. 3A Protected Area is a clearly defined geographical space, recognised, dedicated and managed, through legal or other effective means, to achieve the long term conservation of nature with associated ecosystem services and cultural values. Source: IUCN | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 61 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information The Protected Areas Statement is regularly reviewed, considering the rapidly changing external environment. The Statement is informed by engagement with Barclays stakeholders, which may include shareholders, clients, subject specialists and civil society. Any review of this Statement will be undertaken by the Barclays Group Sustainability Committee with escalation to the Barclays Board Sustainability Committee or Barclays Board (if appropriate). The Protected Areas Statement is available to stakeholders on the Barclays website. Barclays group-wide frameworks, policies and standards will be adopted throughout Barclays and applied unless local laws or regulations require otherwise. As such, the Barclays Bank Group CEO is the most senior individual in the organisation that is accountable for the implementation of the statement. The definition of Protected Areas applied in the Statement is a clearly defined geographical space, recognised, dedicated and managed, through legal or other effective means, to achieve the long term conservation of nature with associated ecosystem services and cultural values7. This includes sites designated by respected international organisations such as IUCN protected area management categories (I-VI), UNESCO World Heritage Sites, Ramsar Wetland Sites, and UNESCO Biosphere Reserves, the integrity of which Barclays aims to protect through implementation of the Statement. Climate Change Statement Barclays Climate Change Statement, as outlined in detail on page [50](#ia16d0659cd524c01ae655d82fa382c3d_6707), also includes restrictions relating to sensitive biomes such as the Amazon and Arctic, which are known to be important areas for biodiversity preservation and which may be negatively impacted by the Energy sector. The key contents of the Climate Change Statement relating to this are the following financing restrictions: • Restrictions on the provision of direct financing to Energy Groups1 for any oil and gas projects in the Amazon Biome, and restrictions on the provision of financing to Clients engaged in exploration, appraisal, development, and production of oil and gas in the Amazon Biome; and • Restriction on provision of direct financing for oil and gas projects in the Arctic Circle, and restrictions on the provision of financing to Clients materially engaged in oil and gas exploration and production or pipeline transportation operations in the Arctic Circle. The FAC, Protected Areas and Climate Change Statements do not directly cover: • freshwater-use change and sea-use change, invasive alien species, pollution and other impacts on the state of species; • biodiversity and ecosystems dependencies, physical and transition risks, and opportunities; • the social consequences of biodiversity and ecosystems-related impacts; and • sustainable oceans/seas practices or policies. We do not have policies in place that are primarily aimed at addressing the potential negative impacts of our financing from either a water consumption or pollution perspective. As a result, Barclays is engaged in ongoing work to build a deeper understanding of these potential negative impacts in our downstream value chain through assessment of prioritised sectors, applying the TNFD's LEAP framework. These assessments can provide Barclays and Barclays Bank Group with a detailed understanding of how clients in selected sector portfolios may potentially negatively impact on biodiversity and ecosystems, including as a result of water consumption or pollution, and their findings may support the enhancement of the Barclays risk management approach and policy framework. Actions We have taken the following key actions this year in relation to addressing the potential negative impact s on biodiversity and ecosystems in our downstream value chain: • Continued to conduct EDD on clients in scope of the FAC Statement. The scope of the clients and geographies covered in the assessment is outlined on page 66. Further details on the approach to EDD can be found on page 60. EDD contributes to the achievement of the objectives of the FAC Statement, as these evaluations enable us to more effectively assess the potential negative impacts, including deforestation, land conversion and human rights impacts, a client may be associated with; • Contributed to the update of Barclays Protected Areas Statement (previously World Heritage Sites and Ramsar Wetlands Statement), which has expanded in scope to include a restriction in relation to the provision of project finance to support the development or expansion of a material project in a Protected Area and/or its buffer zone(s); and • Contributed to Barclays overall assessment of the Barclays Mining and Barclays Europe Power portfolios applying the TNFD's LEAP framework. The exercise sought to identify and assess the potential nature-related impacts, dependencies and risks associated with in scope clients' operating assets in Sensitive Locations, including in relation to land use change, water use and pollution impacts. During 2025 and beyond we will continue to build our understanding of biodiversity and ecosystems related impacts in our downstream value chain, including through contributing to engagement of a selection of Barclays Mining and Barclays Europe Power clients on the results of the LEAP assessment conducted on these portfolios in 2024, and contributing to a LEAP assessment of an additional sector. Note: 1Energy Groups refers to Groups that have over 20% revenue from upstream oil and gas activities (i.e. exploration, development and production) and/or Groups that are considered to be super major or major integrated oil and gas companies. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 62 | ## Schedule to the Directors' Report: Sustainability ## Statement ## Environment ## al Information We do not currently have a formal process in place for engaging with Indigenous Peoples and their representatives and incorporating their knowledge or nature-based solutions into our actions. However, Barclays may engage with Indigenous People and their representatives on an ad hoc basis which may in turn inform our decision-making and action. We do not use biodiversity offsets to address the potential negative impacts on biodiversity and ecosystems in our downstream value chain. However, Barclays has started to support clients in accessing compliance markets for offsite biodiversity credits where this is required by legislation. Targets We do not currently have targets in place in relation to managing our potential negative impacts on biodiversity and ecosystems in our downstream value chain. As part of Barclays, we are working to enhance and further embed our approach to addressing biodiversity and ecosystems related impacts into business and risk management processes. While we do review our policy statements, we do not currently have other formal processes to track the effectiveness of the policies and actions referred to above. Once this work is further advanced, we may consider how best to track the effectiveness of our policies and actions, including the appropriateness of setting targets and/or setting relevant qualitative or quantitative indicators. Taxonomy information (disclosures pursuant to Article 8 of the Taxonomy Regulation (EU/2020/852)) Further to Article 8 of the Taxonomy Regulation, we are required to disclose certain information regarding how and to what extent our activities are associated with environmentally sustainable economic activities, as defined in that regulation. These disclosures are incorporated by reference into this section of the Sustainability Statement and can be found as follows: 1. Qualitative information to support our explanations of Taxonomy key performance indicators (‘KPIs’), especially the Green Asset Ratio (‘GAR’)– see page [98](#ia16d0659cd524c01ae655d82fa382c3d_8652) of the Sustainability Statement 2. A series of detailed prescribed templates disclosing quantitative information analysing our KPIs, including the assets included in the GAR and sectoral information– see the Schedule to the Sustainability Statement on page [380](#ia16d0659cd524c01ae655d82fa382c3d_8634) | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 63 | Schedule to the Directors' Report: Sustainability Statement Entity Specific: Sustainable Products and Services Sustainable Products and Services The table below describes the impact and opportunity in relation to the entity specific sustainability matter, Sustainable Products and Services, which we identified during our DMA process | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Material Impacts and Opportunity | | Value Chain | | | Time Horizon | | | | Description | Type | Upstream | Own Operations | Downstream | Short (> 1year) | Medium (2 -5 years) | Long (>5 years) | | Sustainable Products and Services | | | | | | | | | Barclays Bank Group could be connected to potential downstream positive impacts over the short, medium and long term on the environment and people by providing sustainable and transition finance to clients, which encompasses environmental, social, transition, nature and broader sustainability linked financing. | Positive Impact | | | \* | \* | \* | \* | | | | | | | | | | | Barclays Bank Group has a potential opportunity over the short, medium and long term by offering sustainable products and services. Barclays Bank Group has a sustainable finance strategy to operationalise its ambition to capitalize the potential addressable market for the bank by offering and supporting sustainability related products and services | Opportunity | | | \* | \* | \* | \* | Strategy Barclays Bank Group recognises the opportunities arising from the global transition to a low-carbon economy and the positive impact this can have on economies, our customers and clients. Barclays has developed reporting frameworks for the following types of financing. • Sustainable Financing consists of financing for dedicated use of proceeds, financing for clients with an eligible business mix in relevant environmental and social categories, and sustainability-linked financing which refers to general purpose funding. • Transition Financing consists of financing provided to clients for activities that support greenhouse gas emission reduction, directly or indirectly, towards a 1.5°C pathway Barclays Bank Group uses the Sustainable Financing Framework ("SFF") and Transition Financing Framework ("TFF") to enable us to track our financing which contributes to our positive impacts as we capitalise on identified opportunities. The SFF and TFF were developed by Barclays and outline the approach to the classification of our financing as sustainable financing and transition financing respectively. Both frameworks are published on the Barclays website. Actions Sustainable and Transition Products We continue to expand the breadth of sustainable and transition finance banking products we offer, including bonds/loans (including Project Finance for renewables) and securitised products. Sustainable and Transition Finance products also help us achieve our net zero ambition. In 2025, we will continue to consider and evaluate additional sustainable and transition products. Strategic Review Our sustainable finance strategy was also refreshed during 2024 across key businesses. The review built upon both new and previously identified commercial opportunities. The output was considered in the financial planning process, including incremental revenue, cost and capital. Key opportunities continue to reside within Debt Capital Markets, Equity Capital Markets, Transaction Banking and lending, and some smaller new markets. We have formed key teams and continued to hire to grow our existing talent with a focus on expanding our product capabilities as we continue to drive performance against our selected targets. In particular, the Energy Transition Group within Barclays was established, which will seek to provide holistic and cohesive strategic advice and financing solutions through the energy value chain. with a particular emphasis on decarbonization. These teams will enable further implementation of our climate strategy and increase co-ordination, with a focus on how they can help our customers and clients with their individual transitions to a low-carbon economy. We will continue to endeavour to further enhance how our sustainability strategy is embedded into the way we think about financial planning over the coming years – reflecting on the progress made during 2024. Tracking of our Sustainable and Transition Financing: Barclays Bank Group tracks the amount of sustainable and transition financing we facilitate using the methodology outlined in both the SFF and TFF. Tracking financing enables us to measure progress towards financing the transition. These volumes are reported externally semi- annually, see the Metrics section below for 2024 volume. Both the SFF and TFF were updated in February 2025 to incorporate new sustainable and transition products respectively. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 64 | ## Schedule to the Directors' Report: Sustainability Statement ## Entity Specific Sustainable Products and Services Targets Barclays Group views sustainability as a global issue, which is best tackled with a top-down approach, with targets set by Barclays covering the whole of Barclays Group considered to be the most appropriate way to meet sustainability ambitions. As we are part of Barclays, and contribute towards Barclays Group targets, we do not have our own specific targets relating our sustainable products and services. Further, given the global footprint of many of our clients, who often engage with multiple Barclays entities, setting targets at the Barclays Group level ensures a more cohesive and aligned approach to achieve sustainability objectives. Following analysis of the market opportunity for sustainable financing, together with a review of its capabilities, in 2022, Barclays announced a new target to facilitate $1trn of Sustainable and Transition Financing between 2023 and the end of 2030. Barclays Bank Group is expected to be a key contributor towards achieving this target. Metrics In 2024, Barclays Bank Group facilitated $92.9bn of Sustainable and Transition Financing1, which contributed to the overall Barclays $1trn target. This contribution was calculated using the SFF and TFF methodologies outlined above. For further details please see Barclays’ ESG Reporting Framework. It should be noted that the methodology is reliant on a range of data sources including Dealogic and Bloomberg transaction listings and league tables, as well as other third-party data and verification sources including company disclosures to aid the classification of financing into eligible green and social categories. Barclays Bank Group recognises that the quality, consistency and comparability of the data relied upon is not yet of the same standard as more traditional financial metrics and presents an inherent limitation to the performance reported. We will continue to review available data sources and enhance our methodology and processes to improve the robustness of the performance disclosed. Note: 1Key assumptions for Sustainable and Transition Financing: Accounting basis: • Financing volumes for the FY24 reported on a proportional bookrunner share basis, • Share of capital markets transactions calculated as deal size divided by total number of bookrunners or league table credit Barclays role in the deal is further confirmed by the desk where unclear from underlying documents., • Syndicated lending reflects Barclays’ share or hold of the overall transaction value, • Lending is calculated as total value of limits at issuance and any subsequent increases Reporting Process: • Financing eligible as sustainable financing, under the SFF, for the purpose of our targets, if Barclays determines that the core business of the recipient falls under the eligible green and social criteria • Wherein a pro-rated part of the transaction is counted against the target, the pro-rata calculation is based on an equally weighted allocation to each of the use of proceeds categories that Barclays identify within the issuer framework • When reviewing whether financing will be eligible as transition finance for the purpose of the TFF, Barclays will consider, amongst other factors: ◦ the transition plans or decarbonisation strategies the client produces, including any just transition elements; and ◦ the management of any identified environmental and social risks associated with the relevant purpose of the financing or, where the client is a pure play client, its activities as a whole | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 65 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information #### Contents Barclays Bank Group identified material IROs in the following social topical standards: | | | | | --- | --- | --- | | | | | | ESRS Standard | Section | Page | | S1 | Own Workforce | [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) | | S2 | Workers in the Value Chain | [80](#ia16d0659cd524c01ae655d82fa382c3d_6961) | | S3 | Affected Communities | [86](#ia16d0659cd524c01ae655d82fa382c3d_7165) | | S4 | Consumers and End users | [92](#ia16d0659cd524c01ae655d82fa382c3d_7111) | S1: ### Own ### Workforce Strategy At the heart of achieving Barclays plan to be Simpler, Better and More balanced are its colleagues. Barclays is united by a shared Purpose, Values and Mindset. Barclays’ policies, actions, targets and metrics included in Own Workforce and aligned to Equal Opportunities for All and Working Conditions inform and contribute to this strategy. Engaging with colleagues Sharing strategy and how the colleagues can contribute towards delivery has been a key part of Barclays' 2024 engagement. Regular, two-way dialogue helps identify what is working well across the organisation and where there is room for improvement. Engagement with colleagues is delivered through townhalls, skip-level meetings, site visits, leader-led sessions, focus groups and surveys. Through bi-annual all-colleague Your View surveys, colleagues have the opportunity to share their feedback on working at Barclays. 2024 saw the highest participation to date, with 73% of colleagues taking part in the survey. Barclays strives to create a respectful and inclusive environment where colleagues feel safe to speak up. Additionally, the Raising Concerns process allows colleagues to raise concerns, including whistleblowing concerns, through a range of gateways (including on an anonymous basis). Barclays' longstanding partnership with Unite in the UK offers further insight into the views of colleagues. Barclays consults with Unite on major change programmes to minimise compulsory job losses and focus on reskilling and redeployment. Characteristics and scope of employees: Barclays Bank Group has 23,788 employees at the end of FY24 (HC)1 Breakdown by employment type and by gender | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Female | Male | Other | Not Disclosed | Total | | Number of employees (HC) | 9,750 | 13,611 | 341 | 86 | 23,788 | | Number of permanent employees (HC) | 9,699 | 13,576 | 341 | 81 | 23,697 | | Number of temporary employees (HC) | 51 | 35 | 0 | 5 | 91 | | Non Guaranteed hours | 0 | 0 | 0 | 0 | 0 | For details on how gender data is collected, refer to Metrics section of Equal Opportunities for All on page [69](#ia16d0659cd524c01ae655d82fa382c3d_9191). Breakdown by employment type & by region | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Africa | CEME | APAC | Americas | UK | Total | | Number of employees (HC) | 8 | 2,717 | 1,760 | 11,617 | 7,686 | 23,788 | | Number of permanent employees (HC) | 8 | 2,681 | 1,729 | 11,617 | 7,662 | 23,697 | | Number of temporary employees (HC) | 0 | 36 | 31 | 0 | 24 | 91 | | Non Guaranteed hours | 0 | 0 | 0 | 0 | 0 | 0 | Breakdown by country (countries in which the undertaking has 50 or more employees representing at least 10% of its total number of employees) | | | | --- | --- | | | | | | HC | | United Kingdom | 7,060 | | USA | 11,460 | Rate of employee turnover and total number of employees who have left the undertaking during the reporting period: 16% (3,833) • Number and Percentage of total leavers, based on a rolling 12-month period ended 31st December 2024 • Data is captured at the end of each month, e.g. 31 December 2024 • Data is reported as a total number of leavers in the reporting period and as volume of leavers for the last 12 months divided by the average headcount for the last 12 months • Employees that leave for voluntary and involuntary reasons such as dismissal are included in this metric Note: 1Number of Permanent Employees (HC) in the table includes Permanent/Regular, Graduate and Apprentice | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 66 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information Definition of employment types: | | | | | --- | --- | --- | | | | | | Worker Type | Colleague / Non-Perm | Definition | | Colleague | Permanent/Regular | Employee, paid by Barclays payroll, engaged on Barclays contract (contract open-ended for indefinite period with pre-set working hours). | | Graduate | Employee, paid by Barclays payroll, engaged on Barclays contract (contract open-ended for indefinite period with pre-set working hours). Working in Barclays via a formal Graduate Trainee programme. | | Apprentice | Employee, paid by Barclays payroll, engaged on Barclays contract (contract open-ended for indefinite period with pre-set working hours). Working in Barclays via a formal Apprentice Trainee programme. | | Temp/Contractor Payroll (Fixed Term) | Employee, paid by Barclays payroll, engaged on Barclays contract (contract temporary for pre-defined period with pre-set working hours). | | | | | --- | --- | | | | | Operational Status | Definition | | Non-Operational | Colleagues will be considered Non-Operational when they are employed by Barclays, but are not actively working – for example, for a non-working period of 60 consecutive days or more. | | Operational | All active employees are considered Operational unless they fall under the Non-Operational category. | Scope of Policies Key employee policies are set out in the table below, together with their applicability by employee type. They are available to employees via Barclays' intranet. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Permanent/Regular | Graduate | Apprentice | Temp/Contractor Payroll (Fixed Term) | | Diversity Inclusion and Equity (DE&I) Strategy | a | a | a | a | | Global Hiring Framework | a | | | a | | Graduate, Internship and Discovery Assessment Matrix | | a | | | | Apprentice Assessment Matrix | | | a | | | Performance Management Standard | a | a | a | a | | Learning Policy and Mandatory Training Standard | a | a | a | a | | Fair Pay Agenda | a | a | a | a | | Culture Measurement | a | a | a | a | | Working at Barclays Standard | a | a | a | a | | Health Services and Wellbeing Standard | a | a | a | a | | Retirement and Benefits Standard | a | a | a | a | | Whistleblowing Standard | a | a | a | a | | Industrial Relations Standard | a | a | a | a | | Workforce Change and Restructuring Standard | a | a | a | a | Undertaking to Human Rights Policy commitments Barclays’ Statement on Human Rights expresses its commitment to respecting human rights as defined in the International Bill of Human Rights and the International Labour Organisation’s (ILO) Declaration on Fundamental Principles and Rights at Work (ILO Declaration). The approach to respecting human rights is guided by the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (OECD Guidelines). Basis of preparation for metrics in this section Unless otherwise stated, for each Own Workforce metric, no significant assumptions have been made and the methodology has no data limitations. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 67 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information The below table describes the impacts for the material sustainability matters related to Equal Opportunities for All, as identified during the DMA process: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Material Impacts | | Value Chain | | | Time Horizon | | | | Description | Type | Upstream | Own Operations | Downstream | Short (>1year) | Medium (2 -5 years) | Long (>5 years) | | Equal Opportunities for All | | | | | | | | | Barclays Bank Group has a positive impact over the short, medium and long term on employee diversity through implementing measures which promote equal opportunities for all, foster development and career opportunities and an improved working experience for employees. Barclays Bank Group does this by: Inclusion, diversity and equity • Embedding inclusion, diversity and equity through six intersectional agendas: Disability, Gender, LGBT+, Multicultural, Multigenerational and Socioeconomic. Employee diversity measures across our workforce promote social inclusion and fairness in the workplace • Committing to gender equality, including working towards the global Gender Ambition, to positively impact Barclays' culture and the working experience and inclusion of all female employees Training, development and performance management • Continuing to strive to recruit talent from diverse backgrounds and provide employees with training, development and performance management aimed at upskilling and reskilling Working at Barclays • Taking measures against bullying, violence and harassment and implementing practices and procedures to enable safe workplaces | Positive Impact | | \* | | \* | \* | \* | Strategy The strategy applies across the workforce, which is defined in the table above at (refer table on page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889).). The employees covered by each policy underpinning the strategy are defined on page 66. The IROs align with the strategy, highlighting the key impacts, risks and opportunities in relation to Barclays’ Own Workforce. Inclusion, diversity and equity Policies For the purpose of this disclosure, where 'policy' is mentioned, it refers to the Diversity, Equity and Inclusion (DE&I) strategy at Barclays. The DE&I strategy applies to all colleagues (as defined on page 66) and continues to be a business priority. The DE&I strategy is underpinned by the six-core agendas: • Disability; • Gender; • LGBT+; • Multicultural; • Multigenerational; and • Socio-economic. The gender agenda focuses on Barclays Bank Group's commitment to gender equality. The global Gender Ambition is an important element of the DE&I strategy and supports the working experience and inclusion of all female employees. The general objective of the DE&I strategy is to embed inclusion, diversity and equity across the organisation where all colleagues can thrive. Stakeholders in the business, including senior leaders, are responsible for embedding the DE&I strategy. It enables the organisation to adopt practices that foster development and career opportunities. The five strategic priorities are listed below: • Workforce Diversity; • Inclusive and Equitable Culture; • Leadership Accountability; • Data Transparency and Accountability; and • Optimising External Relationships. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 68 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information The Barclays Head of DE&I is accountable for implementation of these priorities. The Barclays DE&I team reviews the DE&I strategy on a regular basis, including engaging with the Barclays Group Executive Committee and BPLC Board, where appropriate. The current DE&I strategy was approved by the Barclays Group Executive Committee prior to launch in 2022. The Barclays DE&I team, business leaders across the organisation, the Barclays Group HR Executive Committee and Barclays Group Executive Committee are engaged when required to discuss and approve updates to the DE&I strategy. The Barclays  Diversity, Equity and Inclusion Report 2023 (Barclays 2023 DE&I Report) is available on the Barclays website. Actions The actions listed below are derived from the DE&I strategy and aligned to the approach taken across the organisation. However, additional actions are noted in respect of the gender resource group, Women Initiative Network (WIN), and the Gender Steering Committee. Barclays has taken the following key actions this year: • Delivered against the five strategic priorities (above). The Barclays DE&I team liaise with colleagues, including business leaders, to embed the strategy across the organisation • The Barclays DE&I team have monitored and reviewed progress against the Underrepresented Race and Ethnicity Ambitions and global Gender Ambition. Updates are presented to the Barclays Group Executive Committee, sharing progress against the ambitions on a bi-annual basis. To build technical industry knowledge and broaden the existing extensive experience of our most senior leaders, Barclays continued to offer a four-month rotational ex-officio position on the Barclays Group Executive Committee, which develops diversity of thought at the highest level • The Barclays DE&I team partnered with functional and subject matter experts, including Employment, Incentives and Pensions Legal, Government and Corporate Relations, and Employee Resource Group (ERG) leadership teams to build recommendations for implementation across the organisation. The team worked in partnership with the Barclays Talent team to ensure that the talent approach and practices considered DE&I requirements. Actions are reviewed by the Barclays Head of DE&I • Continued to leverage the ERG communities, which further embeds an inclusive culture, to better understand the diverse workforce • The Gender Steering Committee, comprised of multiple colleagues with varying roles and covering a range of business units, continued to share best practice and identify gaps in our approach to gender diversity. This includes the gender resource group, WIN, which all colleagues were able to join on a voluntary basis • Met the legal and regulatory obligations for reporting. Barclays continues to monitor the external regulatory and legal environment, ensuring engagement with regulatory and governmental organisations promptly These actions are expected to evolve to support further progress against the ambitions. To help inform and build a DE&I strategy, internal insights are reviewed by the Barclays DE&I team. They incorporate recommendations derived from horizon scanning across the external landscape. The need to meet the requirements and goals set by the business to drive commercial outcomes are also considered. Barclays is working towards the achievement of its three Underrepresented Race and Ethnicity Ambitions and global Gender Ambition by the end of 2025. Targets There are no targets to manage the potential positive impacts. Instead, Barclays has adopted meaningful ambitions (rather than targets), which are reviewed annually. The ambitions are aspirations rather than goals. Targets have not been set because ambitions has (in Barclays' view) a broader interpretation. The term and approach are regularly reviewed. Ambitions are included under this heading accordingly. There is no single measurement for the effectiveness of the DE&I strategy. The ambitions are: The Underrepresented Race and Ethnicity Ambitions From a 2023 baseline, Barclays is working towards two all-colleague Underrepresented Race and Ethnicity Ambitions for achievement by the end of 2025: • Increase the number of colleagues from under-represented ethnicities by 12.5% in the UK • Increase the number of colleagues from under-represented ethnicities by 5% in the US From a 2022 baseline, Barclays aims to: • Increase the number of Managing Directors from under-represented races or ethnicities by 50% in the UK and US combined by the end of 2025 Gender Ambition Barclays is also working towards achievement of one global Gender Ambition. This is a measure of representation (%). • 33% representation of women in senior leadership roles (Managing Directors and Directors) by the end of 2025 | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 69 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information There is no baseline for the global Gender Ambition. The ambitions, including their timeframe, were agreed with Barclays Group Executive Committee, taking into consideration external research, legal, and regulatory requirements. Improvements as a result of performance against the ambitions are reviewed by the Barclays Head of DE&I. Proposals are taken to the Barclays Group Executive Committee for approval, and the BB PLC Board is engaged, as appropriate. Any updates are shared with HR Business Partners to share back with stakeholders in the business for their engagement, enabling further progress through business involvement. Ambitions are only set for Barclays and top-level business areas. Metrics | | | | --- | --- | | | | | Metric | Value | | Percentage of UK (region) employees from underrepresented ethnicities | 4.6% | | Percentage of US (country) employees from underrepresented ethnicities | 18.6% | | Number of underrepresented MDs (UK (Region)) | 12 | | Number of underrepresented MDs (US (Country)) | 32 | | Percentage of females at Managing Director and Director Level | 25% | Basis of Preparation As part of the hiring and onboarding process, employees are asked to voluntarily disclose their ethnicity and gender; if this is not declared ethnicity and gender will be recorded as unknown. When gender is reported as unknown, this is considered as Not Disclosed. Ethnicity, gender and grade data is maintained in the HR system (Workday) and extracted through the People Insights reporting tool. Data is captured at the end of each month, e.g. 31 December 2024. Underrepresented (UR) ethnicities for the UK (region) are defined as Black and Multiracial (mixed). UR ethnicities for US (country) are defined as African American/Black, Hispanic/Latino and Other (includes Multiracial, Native American, Native Alaskan and Hawaiian / Pacific Islander). Unknown ethnicities are included as non-UR ethnicities. Total Managing Directors in Barclays are defined as senior leadership (male, female, other and not disclosed) and make up the most senior grade in the organisational hierarchy. Total Directors and Managing Directors in Barclays are defined as senior leadership (male, female, other and not disclosed) and make up the two most senior grades in the organisational hierarchy. All colleagues, including operational and non-operational, as at 31 December 2024 are considered in the total population of these metrics unless otherwise stated. 1. Percentage of UK and US employees from under-represented ethnicities: UK (region) and US (country) • Data is reported as a % of under-represented employees in UK (region) out of the total population for UK (region) • Data is reported as a % of under-represented employees in US (country) out of the total population for US (country) 2. Number of underrepresented MDs: UK (region) and US (country) • Only operational employees are considered 3. Percentage of females at Managing Director and Director level • Data is reported as a % of female Managing Directors and Directors out of the total population of Managing Directors and Directors. Training, development and performance management Policies We apply the following frameworks and reports in striving to recruit all talent fairly and objectively: • Global Hiring Framework (GHF); • The Graduate Internship and Discovery Assessment Matrix; • The Apprentice Assessment Matrix; and • The Barclays 2023 DE&I Report. The frameworks outlined above, support Barclays' ambitions in recruitment and efforts to attract talent from diverse backgrounds1. The framework ensures that hiring process, tools and materials provide fair, objective and unbiased hiring procedures, further supported by the ‘excellence in selection’ training. This provides further guidance for the interviewer to enable them to reduce bias by being consciously inclusive and create an inclusive candidate experience during the interview and assessment process. The effectiveness of the above frameworks is monitored through regular business assurance of the associated controls in the Controls Library. These controls include role profile content, authority to recruit, hiring restrictions (e.g. employees of the statutory auditor), | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 70 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information employee referrals, hiring decision evidence, confirmation of authorised and regulatory roles status, and checks against non-solicitation agreements. For further details in relation to the Barclays 2023 DE&I Report and DE&I Strategy, please see the DE&I sections of this disclosure on page [67](#ia16d0659cd524c01ae655d82fa382c3d_9297). The following policy and standards support training and development aimed at upskilling and reskilling: • The Learning Policy; and • The Learning Mandatory Training Standard. The objective of the Learning Policy and the Learning Mandatory Training Standard is to positively impact both Barclays and its employees (through adherence to legislation and internal policies, improved knowledge and skills in relation to their role) by ensuring colleagues are properly and proportionately trained. Mandatory training (MT) clearly outlines key regulations and responsibilities of colleagues in relation to their role. The controls and targets that are in place to ensure completion further supports positive outcomes in terms of knowledge and skills acquisition. This supports Barclays' proactive approach to risk management, using training as a mechanism to ensure employees understand what they are obliged to do, and prohibited from doing, in relation to key regulatory / legal / Barclays Group Executive Committee endorsed topics. The Learning Policy and the Learning Mandatory Training Standard are designed to manage the people risks aligned to colleague capability and performance, and include key control objectives and control requirements that outline the management of those risks linked to late or non-completion of MT. Monitoring the Learning Policy and the Learning Mandatory Training Standard is managed within the Talent function which includes an annual review. This takes into account any relevant stakeholder feedback, evolving practices and processes, the ambitions and any policy or compliance issues that may have arisen during the year. The Barclays Head of Talent is accountable for the implementation of the frameworks outlined above across Barclays Bank Group. There are however clear roles and responsibilities for multiple stakeholders who are involved in the end-to-end processes. The Barclays DE&I Team own the Barclays 2023 DE&I Report. Refer to page [67](#ia16d0659cd524c01ae655d82fa382c3d_9297) for relevant details related to this disclosure. In creating the frameworks outlined aimed at supporting the ambitions in the recruitment and attraction of talent from diverse backgrounds, stakeholders are engaged across Barclays, including Barclays Legal, People Analytics and Culture, Human Resources and our Barclays DE&I Team. In order to gather insights from the Learning Policy and Learning Mandatory Training Standard approach, core members of the Mandatory Training Decision Forum (MTDF) (which includes compliance and the Learning Policy and the Learning Mandatory Training Standard owner) are engaged. The Barclays 2023 DE&I Report is available via Barclays' public website. The Performance Management Policy and Standard also support upskilling and reskilling. The general objectives of the Performance Management Policy and Standard are to ensure that employees’ performance is managed appropriately. Performance management is a key enabler to support the delivery of Barclays' Purpose as a bank, as well as being a critical conduit to help embed the Values and Mindset into the ways of working, and to enable colleagues to deliver to a consistently excellent standard. The Performance Management Policy and Standard are available to all employees on Barclays’ intranet. The Policy and Standard include: • Expectations for colleagues in relation to their objectives for the performance year; and • Requirements for people leaders in relation to performance management for their teams, including year-end reviews. Specific guidance is included on how to consider and assess employee conduct. Barclays applies the Performance Management Policy and Standard to provide employees with performance management aimed at upskilling and reskilling, positively impacting their career prospects and workplace inclusion. The Barclays Reward and Performance Director is accountable for the Performance Management Policy and Standard across all Barclays entities, including Barclays Bank Group. Any major changes in approach are discussed and agreed with the Reward and Performance Director and Barclays HR Director, where appropriate. The Performance Management Policy is reviewed at least annually, and those reviews consider any relevant stakeholder feedback and changes in Barclays’ strategy, priorities or legal and regulatory requirements. Compliance is also monitored via regular reporting to HR Directors, Barclays Group HR Executive committee and the relevant People Control Forum in respect of agreed key indicators and control requirements. Note: 1 Colleagues who identify with one or more of our six core agendas: Disability, Gender, LGBT+, Multicultural, Multigenerational and Socioeconomic. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 71 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information Actions The Talent Team have taken the following key actions this year in continuing to strive to recruit talent from diverse backgrounds and provide employees with training, development aimed at upskilling and reskilling: • Continuing to develop external partnership within early careers recruitment; • Enhancing recruitment platforms, optimising job advert creation and ensuring use of inclusive language; • Continuing to monitor and track MT completion to the required standard and timeframe; • Continuing to provide people leaders with access to MT completion rates for their team via the learning system. This access is to enable them to monitor, prompt and track completion of MT for their team. People leaders can follow-up with individuals to prompt completion if their MT is showing as incomplete. Guidance is provided to support people leaders with this action; and • Continuing to operate controls that identify failures to complete MT, resulting in a breach of policy, and ensuring appropriate action is taken. Future actions include: • Continuing to work in partnership with the Barclays DE&I Team to help further embed DE&I strategy across the organisation to ensure that talent approach and practices consider DE&I requirements; • Continuing to leverage external insights to evaluate current approach and to align and shape priority opportunities for Barclays in 2025; • Continuing to develop external partnership within early careers recruitment and enhance recruitment platforms optimising job advert creation and ensuring use of inclusive language; • Improving the learning offering aligned to key skills through the launch of the globally consistent job architecture framework, also known as a 'Job Catalogue'. This is embedded in hiring frameworks and identifies enterprise-wide critical skills and job profiles, with learning pathways and content being mapped to these skills; and • Continuing to monitor and track of completion in line with the current action plan and targets. Outcomes are expected to remain consistent with current performance; as actions so far have contributed to consistent on-track performance to target. The timeframes for completion will remain aligned to the current policy and standard requirements of >97% completion within a 65- day period. For further details in relation to the Barclays 2023 DE&I Report and DE&I Strategy, see page [68](#ia16d0659cd524c01ae655d82fa382c3d_9166). In identifying actions, leaders across the organisation were engaged to align areas of focus to colleague and business need. A multi-year skills roadmap has been developed with input from external partners and members of the Financial Services Skills Commission. In 2024 a bank-wide Job Architecture and Skills framework was launched and, in 2025, the focus will be on education and building awareness, as well as embedding skills into talent practices. The Learning Mandatory Training Standard (which is aligned to the overall Barclays Learning Policy) outlines a clear framework, process, tracking and controls for MT completion. The controls include, but are not limited to, tracking and identification of completion (through the production of completion reports), and identification of late completion to enable where appropriate the relevant consequence management (i.e. breach process to follow if training is not completed by the due date). Material Opportunities are identified through governance and controls which are regularly reviewed in line with Barclays Control Framework (BCF) which ensures clear tracking of performance to target, review of control effectiveness, on-going residual risk assessment and reporting is in place. This is also reviewed by the MTDF. The role of the MTDF is to review and approve recommendations in terms of MT topics and assignment audience made by the policy owner. This ensures MT is properly assigned and Barclays meets their objectives related to risk, compliance and control, enabling the relevant knowledge and skills required for colleagues to perform their role. In addition to MT, resources have been developed to support colleagues through every stage of their career. This includes early career programs for apprentices, graduates and interns, programs and digital assets aimed at identifying and supporting high potential talent, along with resources to support people leaders and colleagues in their aspirations and goals. Resources include Barclays designed knowledge and skills modules, as well as modules from external specialists. These provide colleagues with the development tools needed to support them in their current and future roles. This is complemented by digital content providers, whose content has been mapped against role-specific learning pathways, making it easy for colleagues to navigate development resources suitable for their needs. In terms of ESG related learning there is MT in place along with a variety of digital assets to support colleagues and Barclays is also developing specific learning for areas of the bank on ESG related topics which link directly to their role type. Learning is also developed at a local business level to further support role competence at a technical level. Learning is presented as mandatory learning linked to key regulations and policies colleagues must adhere to, required learning supporting the achievement of performance in colleague’s current role and voluntary learning allowing colleagues to target areas of learning aligned to their own personal development goals. Impacts are measured through colleague feedback, learning consumption and MT completion. As part of the overall development and management of talent learning programs and products that are available to colleagues, regular reviews are undertaken to seek colleague feedback and analyse associated key metrics. This helps to determine if the program or product is relevant and aligned to learning needs. The results drive a cycle of change and continuous improvement. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 72 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information For MT, the MTDF is a key contributor to the on-going development and management of the MT curricula. They work closely with business leaders and policy owners to ensure MT is reviewed, confirmed as appropriate, and is timely and consistent. No further actions have been taken to enhance positive impacts relating to performance management beyond the implementation of the Performance Management Policy and Standard and monitoring of key performance-related metrics as set out above. Targets In continuing to strive to recruit talent from diverse backgrounds there are no specific targets in place. Barclays has adopted certain meaningful, long-term ambitions. In the tracking MT completion, the Learning Mandatory Training Standard (which is aligned to the overall Barclays Learning policy) outlines controls aligned to the Barclays Control Framework (BCF), which ensures tracking of performance, review of control effectiveness, on-going residual risk assessment and reporting is in place. The percentage of in-scope colleagues completing MT is tracked. This refers to colleagues in-scope of the Learning Policy and the Learning Mandatory Training Standard and also considers if they are in-scope of a particular learning module (colleagues in Hamburg, Germany do not fall into this scope). MT completion is in line with expectations and completion rates are consistently stable. The completion goal was set prior to 2019 and is reviewed annually as part of the review of the Control Environment Characteristic (CEC). The baseline value has remained the same and is set as >97%. The performance against this shows BB PLC (2024) Q124: 99.5% and Q224: 99.6%. There are quarterly review milestones, with the methodologies and assumptions reviewed. The aim is to prevent people risk linked to colleague capability and performance. The business is responsible for monitoring, tracking, and prompting employees to complete MT in a timely manner. Seeking >97% compliance takes into account that it is the colleague’s responsibility to complete MT by the specified due date but also reflects the risk that this may not be adhered to. The Learning Policy and the Learning Mandatory Training Standard owner will review the associated target for MT in conjunction with the MTDF core members, including compliance. Their input is to define and shape the MT strategy and set and monitor risk appetite. While there are no specific targets relating to performance management, the performance management approach is reviewed annually, key performance-related metrics are monitored, and people leaders are provided with support and training. Metrics The metrics below evidence the recruitment of talent from diverse backgrounds and how employees are provided with training and development aimed at upskilling and reskilling. The following metrics apply to operational and non-operational employees, unless otherwise stated. Refer to Equal Opportunities for All - Metrics for details on how gender data is collected. Gender percentage across professional and executive hiring (Female): 35% • Data is reported as a % of Female external hires for professional and executive roles out of the Total number of external hires over a 12-month period ended 31st December 2024; • Leavers are included in the reporting so long as they joined within the defined reporting time period; • This is for all Permanent/Regular and Temp/Contractor Payroll (Fixed Term) employees; and • Professional roles relate to Vice President and below corporate grades and Executive roles relates to Managing Director and Director corporate grades. Percentage of female graduate hires: 37% • Data is reported as a percentage of external female Graduate hires, out of total external graduate hires over a 12-month period ended 31st December 2024 Refer to Characteristics and scope of employees on page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) for definition of Graduates. • Leavers are included in the reporting so long as they joined within the defined reporting time period Average Mandatory Training hours per person, by gender: Female: 12.3; Male 12.8 Learning in Barclays is presented as mandatory learning as it is linked to key regulations and policies colleagues must adhere to. • Mandatory training (MT) is assigned to new employees and existing employees when they join Barclays and on an on-going basis; aligned to policy owner requirements and in line with the agreed MT calendar. Policy owners define both the content of the learning and the population/employees that are in scope to complete.  The MT curricula comprise of both all employee modules and modules set for a specific group of people. Employees have 65 days to complete their MT from the assigned date. Completion is monitored through the controls and reporting Barclays has in place aligned to the Learning Policy and the Learning Mandatory Training Standard; • Data is reported as the average number of MT hours completed per person for the period ending 31st December 2024. This is based on the expected time taken to complete a module not the actual and this must show as completed on the learning record. In the calculation of this metric, where the system shows a piece of learning as zero minutes, we apply an assumption of 25 | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 73 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information minutes expected completion time. Completion data is captured on the employees learning record and is sourced from the HR system. This metric measures learning consumption and includes all MT completions (the data will include colleagues not in scope for the modules but have completed for their development); • Employees who are showing as active headcount are included based on end of month reporting taken from our HR system. This may result in a variance each month as headcount is not static. The data used for this metric will always show completions based on end of month headcount; • This metric measures learning consumption and includes all MT completions (the data will include colleagues not in scope for the module but have completed for their development); and • Under the Learning Policy and Learning Mandatory Training Standard colleagues from Hamburg are not in scope for MT and therefore not included. The percentage of eligible employees with a submitted year-end performance review - 95.1% This measures the proportion of employees who have had a year-end performance review submitted in the performance management system by a communicated deadline, as a proportion of employees who were eligible for a year-end performance review. To be eligible an employee must: • Be employed by Barclays Bank Group, having joined before 1 October in the relevant performance year; and • Have worked for a period of 93 calendar days or more (consecutively or combined) at close of business on 31 December in the current performance year. The following employees are not required to have a year-end review in the performance management system by the communicated deadline, and are therefore excluded from reporting: • Employees who have left before the submission deadline of 31st January 2025, following the relevant performance year; • Banking Analysts as their performance reviews are conducted at mid-year rather than at year-end; • Employees in Hamburg; and • Certain exceptional cases (including some employees with live disciplinary cases). The performance review should contain end-of-year ratings for the ‘what’ and the ‘how’ from the people leader, as well as commentary about the employee’s performance over the year. Once the review is submitted by the people leader, it becomes available to the employee. In cases where the people leader is absent due to unplanned leave or an emergency in the final week of the review period, the people leader’s line manager is able to complete and submit the review. Due to the system functionality and timing, not all these reviews are registered as fully complete in the system and need to be recorded as such manually. This metric is available as a report from the performance management system, which is extracted by the Performance Management centre of expertise. Working at Barclays Policies Working at Barclays Standard The Working at Barclays Standard addresses: • Taking measures against bullying, violence and harassment and implementing practices and procedures to enable safe workplaces; • Promoting equal and fair treatment free from bias or preferential treatment through disciplinary and grievance procedures; and • Providing employee support mechanisms, such as sick leave, parental leave, and flexible / hybrid work arrangements to foster workplace inclusion for employees and support the wellbeing of individuals. The Working at Barclays Standard provides appropriate controls that help to support, shape and manage colleagues relationships with Barclays and ensure compliance with regulatory and legal requirements. • The key topics are Conduct, Disciplinary, Capability and Grievance (DC&G), Family and Carers, Time at Work and Time Away from Work; • For each topic, principles, provisions, processes and guidance are designed to achieve appropriate outcomes, documented, authorised, timely, accurate and consistently applied to the relevant population. They outline clearly for colleagues and people leaders what they are entitled to, how they apply for it and, where required, provide more detailed guidance, in particular for people leaders; • The Conduct topic covers Bullying and Harassment, Personal Appearance and Dress Code, Personal Relationships at Work, Substance Use and Work-Related Social Events; • The DC&G topic mitigates the risks connected to employee performance, employee issues and inappropriate employee conduct; | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 74 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information • The Family and Carers topic covers Maternity / Primary Caregiver Leave, Shared Parental Leave, Adoption Leave, Paternity/ Non- Primary Caregiver Leave, Parental leave, Caring and Emergency Leave and Fertility Treatment; • The Time at Work topic covers Probation, Working Time, Transitioning at Work and Working Flexibly; and • The Time Away from Work topic covers Career Break and Public Duties, and Unpaid, Military and Reservist, Bereavement and Compassionate, Annual and Country Specific Leave, and Health-Related and Unauthorised Absence. All policies and standards are monitored and refreshed at a minimum on an annual basis alongside all content. They also undergo ad-hoc changes due to any regulatory or legal changes. During these refreshes, SMEs across Barclays are consulted. The Standard applies to Barclays and its subsidiaries. It covers all employees (as per the definition in the scope of policies table on page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) of any in-scope entity). The Barclays Head of Employee Relations is accountable for approving and implementing the content of the Standard. Employee Relations assists in the prevention and resolution of issues involving colleagues that arise out of, or impact, their work, through policy development, case management, workforce change and restructuring, colleague health and wellbeing and collective representative bodies, such as trade unions, employee fora and works councils. Additionally, the Raising Concerns process allows colleagues to raise concerns, including whistleblowing concerns, through a range of gateways. This may be on an anonymous basis. In addition to the Working at Barclays Standard, The Barclays Way is the code of conduct, setting standards of behaviour colleagues should follow every day. It is designed to support all colleagues in exercising good judgement and making the right decisions each day. This is available to colleagues through Barclays’ intranet and shared with colleagues through The Barclays Way MT. Actions There are no further actions to enhance positive impacts relating to the working conditions set out above, beyond the implementation of the Working at Barclays Standard outlined in this document. Targets Barclays and its subsidiaries have a no-tolerance approach to bias, violence, bullying and harassment (including sexual harassment). There are no specific targets to track positive impacts of the conduct procedures. Similarly, there are no targets related to leave, or time at work and away from work provisions. Metrics Percentage of colleagues covered by raising concerns mechanism: 100% • The Raising Concerns process allows colleagues to raise concerns, including whistleblowing concerns; • This is accessible for all colleagues via Barclays’ intranet and allows colleagues to access a range of channels to raise concerns including a web form, email, telephone and external portal. This is in accordance with The Whistleblowing Standard (Page [79](#ia16d0659cd524c01ae655d82fa382c3d_9345)); and • This metric is a regulatory requirement and is driven by the scope of the policy. Percentage of employees entitled to sick leave, family-related leave and entitled to request flexible / hybrid working arrangement: 100% • This metric applies to all employees and is demonstrated through the Working at Barclays Standard and associated content. This is policy based (refer to page [73](#ia16d0659cd524c01ae655d82fa382c3d_10973)). Employees can access this on Barclays’ intranet; and • This metric is driven by the scope of the policy. Percentage of employees completing the Mandatory Training (MT) module: The Barclays Way 2024- 100% • Employees are defined in line with assignments (see MT metric on page [72](#ia16d0659cd524c01ae655d82fa382c3d_9230)); • Percentage completed is reported against the employees in scope to complete the module within 2024; and • Additional details on MT can be found in the MT metric on page [72](#ia16d0659cd524c01ae655d82fa382c3d_9230). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 75 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information Working Conditions The below table describes the impact and risk for the material sustainability matters related to Working Conditions, as identified during the DMA process: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Material Impacts | | Value Chain | | | Time Horizon | | | | Description | Type | Upstream | Own Operations | Downstream | Short (>1year) | Medium (2 -5 years) | Long (>5 years) | | Working Conditions | | | | | | | | | By prioritising employee working conditions Barclays Bank Group can have a positive impact in the short, medium and long term on employees’ wellbeing. Barclays Bank Group does this by: Salary / Benefits •  Ensuring the payment of a living wage to all employees in line with the Fair Pay Agenda and to promote their financial wellbeing. • Providing secure employment, through stable job positions and appropriate protection against unfair dismissal, to employees which positively impacts their financial and social security. •  Providing access to private medical cover and health support services, such as occupational health, workplace adjustments, employee assistance programmes and wellbeing tools and resources to help protect the health, safety, and wellbeing of employees. Listening •  Listening to employee feedback and maintaining a strong and effective partnership with trade unions and national works councils to foster employee wellbeing and maintain an engaged workforce. Employee Relations •  Promoting equal and fair treatment free from bias or preferential treatment through disciplinary and grievance procedures •  Providing employee support mechanisms, such as sick leave, parental leave, and flexible / hybrid work arrangements to foster workplace inclusion for employees and support the wellbeing of individuals. | Positive Impact | | \* | | \* | \* | \* | Strategy The strategy applies across the workforce, which is defined in the table on page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889). The employees covered by each policy underpinning the strategy are included in the table above (page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889)). The IROs align with the strategy, highlighting the key impacts, risks and opportunities in relation to Barclays’ Own Workforce. Salary/Benefits Policies Fair Pay Agenda (Living wages) The Barclays Fair Pay Agenda aims to ensure that fairness is a key and explicit consideration in the way pay decisions are reached, in line with the Barclays Remuneration Philosophy. The Barclays Fair Pay Agenda is in the interest of employees and reflects the interests of investors and other stakeholders. Its scope is noted in the table included on page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889), and it is based on five fair pay principles: • Fair pay for the lowest paid • Equal opportunities to progress • Engaging with colleagues • Alignment of employee and Executive Director pay • Equal pay commitment The commitment to paying at least a living wage to all employees is a central element of the Fair Pay Agenda. This commitment has a positive impact on employees, promoting their financial wellbeing. Barclays is an accredited Living Wage Employer in the UK, and Fair Wage Network living wage benchmarks are used across all other locations to ensure that a living wage is paid to all employees. The Barclays Reward and Performance Director is accountable for the Fair Pay Agenda (living wages) across all Barclays entities, including BB PLC. The Fair Pay Agenda is regularly monitored and updates on this are provided to the Board Remuneration Committee. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 76 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information Workforce Change and Restructuring Standard The Workforce Change and Restructuring Standard provides the framework for the management of the global change and restructuring portfolio across all employing entities, which supports the shaping of the workforce to meet long-term objectives, achieve optimum business performance and comply with legal and regulatory obligations. It provides the appropriate controls ensuring that restructuring is managed fairly, which positively impacts their financial and social security. The Workforce Change and Restructuring Standard outlines that HR teams must: • Complete appropriate due diligence and identify any risks, before any changes as part of a Workforce Change and Restructuring project are executed as per country specific requirements; • Ensure that there is a documented rationale for the changes and any proposed impacts; • Ensure that all formal colleague documentation is reviewed by the stakeholders, as defined by individual project governance, prior to being delivered; and • Ensure that individual consultation / communication(s) is carried out in line with all local employment law and regulation and any prior agreements with the collective representative body. All policies and standards are monitored and refreshed at a minimum on an annual basis alongside all content. They also undergo ad-hoc changes due to any regulatory or legal changes. During these refreshes, SMEs across Barclays are consulted. The Standard applies to Barclays PLC and its subsidiaries. It covers all employees (as per the definition in the scope of policies table refer to page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889)) of any in-scope entity. The Barclays Head of Employee Relations is accountable for approving and implementing the content of the Standard. Retirement and Benefits Standard The general objectives of the Barclays Retirement and Benefits Standard are to ensure that employee benefits, including retirement benefits, are managed appropriately. Employee benefits support health, long term saving, financial protection and lifestyle, reflecting diverse needs of colleagues and are an attraction and retention tool to support delivery of Barclays strategy. The Barclays Retirement and Benefits Standard is available to employees on Barclays’ intranet. The scope of the Barclays Retirement and Benefits Standard is as stated in the table refer to page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889). The Barclays Retirement and Benefits Standard sets out: • Expectations on review and benchmarking of retirement and benefits plans; • Global principles that non-retirement employee benefits plans should align to; • Guidance on ownership, governance, regulatory compliance and financial management; and • Approval requirements for new retirement or benefits plans. The Barclays Retirement and Benefits Standard governs the approach to benefits, including provision of private medical cover, which help to protect the health and wellbeing of employees. The Barclays Head of Pensions and Benefits is accountable for the Barclays Retirement and Benefits Standard across all Barclays entities, including BB PLC. Any major changes to approach are discussed and agreed with the Reward and Performance Director and the Group HR Director, where appropriate. The Barclays Retirement and Benefits Standard is reviewed at least annually, and those reviews consider any relevant stakeholder feedback and changes in Barclays’ strategy, priorities or legal and regulatory requirements. Material arrangements, covering the key benefits and locations, are regularly reviewed against the policy requirements. Health Services and Wellbeing Standard Barclays places the utmost importance on a healthy, safe and supportive working environment for all colleagues. The Health Services and Wellbeing Standard sets out the minimum controls required to effectively manage and control the Health and Wellbeing (People) risks associated with Barclays activities within the approved risk tolerance levels. It provides appropriate controls and associated content to address providing access to health support services, such as occupational health, workplace adjustments, employee assistance programmes and wellbeing tools and resources, to help protect the health, safety, and wellbeing of employees. The general objectives of the policy are to ensure that identified Health Services and Wellbeing control requirements are understood, monitored and mitigated appropriately, and are managed to ensure they are compliant with relevant legal and regulatory requirements. The Health Services and Wellbeing Standard and associated content outlines responsibilities which cover: • Providing and operating Health Services and Wellbeing processes and guidance that is authorised, timely, accurate and consistent in application to the relevant colleague population; • Providing and operating Health Services and Wellbeing processes and guidance, ensuring they are designed and operate to comply with local employment and reward law and regulation; • Providing colleagues with adequate Health Services and Wellbeing training; • Providing accurate, complete and timely management information on Health Services and Wellbeing; • Health services includes: Occupational Health, Workplace Adjustments, and Employee Assistance Programmes; • Occupational Health services provide specialist advice for colleagues where their physical or mental health is impacting their work. In some jurisdictions, additional medical services are also available to colleagues, such as company doctors or on-site health centres; | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 77 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information • The Workplace Adjustment service provides support for colleagues with disabilities, physical or mental health conditions, or neuro-divergent conditions, who may require adjustments to their working environment and/or working arrangements to deliver to their full potential or to keep them safe; and • The Employee Assistance Programmes provide colleagues with 24/7 confidential support on a range of work related and personal topics, such as coping with stress and anxiety to dealing with bereavement. All policies and standards are monitored and refreshed at a minimum on an annual basis alongside all content. They also undergo ad-hoc changes due to any regulatory or legal changes. During these refreshes, SMEs across Barclays are consulted. The Standard applies to Barclays PLC and its subsidiaries. It covers all employees (as per the definition in the scope of policies table refer to page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889)) of any in-scope entity. The Barclays Head of Employee Relations is accountable for approving and implementing the content of the Standard. Actions There are no further actions to enhance positive impacts relating to the working conditions set out above, beyond the monitoring of progress against the ambition to pay all employees a living wage, the provision of access to private medical cover, the implementation of the Workforce Change and Restructuring Standard, Barclays Fair Pay Agenda, the Health and Wellbeing Standard and the Retirement and Benefits Standard outlined in this document. Targets There are no specific targets in place to manage the potential positive impact of the Agenda and Standards above beyond the following: • The ambition set out within the Fair Pay Agenda is that all employees are paid at least a living wage, and this is monitored on an ongoing basis to ensure wages remain appropriate. • The BB PLC Remuneration Committee reviews wider workforce remuneration policies and outcomes each year, including progress against the Fair Pay Agenda. Payment of living wages to all employees in line with the ambition is included as part of that review. • Material arrangements, covering key benefits and locations, are reviewed regularly, including access to private medical cover. • Standards are reviewed at least annually, and those reviews consider any relevant stakeholder feedback and changes in Barclays’ strategy, priorities or legal and regulatory requirements. Metrics Gender pay gap – median: 32.5%, mean: 46.4% To calculate the metrics, pay data consisting of fixed pay and bonus awards for the reporting year – is taken from the HR system for all employees. This data reflects pay for the year. Fixed pay is converted into hourly figures based on the employees' working hours over the year. For bonus, the calculation is the same, but also factors in the proportion of the year for which the employee was bonus eligible. Average 'hourly pay', which is made up of fixed pay and variable pay1, is calculated separately for females and males. Median and mean pay gaps are determined as follows: Pay gap=(A-B)\*100/A Mean hourly pay gap: • A is the mean hourly pay of all employees of the male gender; and • B is the mean hourly pay of all employees of the female gender. Median hourly pay gap: • A is the median hourly pay of all employees of the male gender; and • B is the median hourly pay of all employees of the female gender. The countries and percentage of employees paid below the applicable living wage benchmarks: 0% The living wage benchmarks are obtained annually from external living wage data providers, the Living Wage Foundation for the UK and the Fair Wage Network for all other countries. Every employee’s fixed pay as at 31 December 2024 is used to calculate their hourly pay using the country’s standing working hours. Hourly pay is compared against the relevant living wage benchmark for the location in which they are based. For any employees who are paid below the local living wage benchmark, fixed pay is increased to at least meet the benchmark (or the minimum pay level for the location, if higher) during the annual pay review process. Note: 1Hourly pay does not include other pay elements such as pension and benefits. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 78 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information Percentage of employees on zero hours contracts: 0% • This is calculated by running a headcount report as at 31 December 2024 that includes the hours of all employees across Barclays to show that there are no contracts with zero hours. Employees are as per the definitions in the table on page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) • Non-Headcount employees (including managed services) are out of scope for this metric. Percentage of Barclays employees eligible for private medical cover: 93% This measures the proportion of the employee population that has access to Barclays funded medical cover to supplement cover provided locally or by the state as at 31 December 2024. Employees are usually able to opt in or out of the cover. This cover provides support towards medical expenses, usually facilitated by third-party providers. Providing employees with access to funded medical cover, where this is relevant to supplement cover provided locally or by the state, helps support their health by offering quick access to health treatment, from seeing a specialist for a diagnosis to a hospital stay, if this is required. To calculate the metric, a review of private medical coverage by geography is performed by the Pensions and Benefits team in conjunction with local teams responsible for the policies. The review was conducted in Q4, and no changes to the private medical provisions were expected for the remainder of the year. The resulting coverage grid is used alongside a headcount file by geography to determine the proportion of the total employee population that is eligible for private medical cover. Percentage of Barclays colleagues covered by EAP and wellbeing services: 100% • All colleagues are covered by the Employee Assistance Program (EAP) and Wellbeing services, delivered in accordance with the Health Services and Wellbeing Standard, and accessible via Barclays’ intranet • This metric is driven by the scope of the policy Percentage of colleagues covered by Workplace/Reasonable adjustments process: 100% • All colleagues are covered by the Workplace/ Reasonable Adjustments process via the Barclays Intranet, delivered in accordance with the Health Services and Wellbeing Standard, and accessible via Barclays’ intranet • This metric is driven by the scope of the policy Listening Policies Culture Measurement Policy and Standard The Barclays Group Culture Measurement Policy and Standard concerns employee feedback received via the ‘Your View’ employee engagement survey. This provides an effective mechanism to measure employee engagement and culture. Barclays also maintains a strong and effective partnership with Unite, national works councils and the Barclays Group European Forum to help maintain an engaged workforce. The key content of the Barclays Group Culture Measurement Policy is the approach applied to listening to colleagues and how this supports leaders to take action that further improves and drives employee engagement and culture. The process for monitoring the Barclays Group Culture Measurement Policy is to run the employee engagement survey annually. Culture measurement is reviewed at Barclays and Barclays Bank Group, supporting senior leaders to take actions to further improve and embed the desired culture. The scope of the Barclays Group Culture Measurement Policy covers Barclays and its subsidiaries and all employees (as per the definitions in the table on page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889)). The Co-Head of Colleague Experience and Head of Organisational Effectiveness is accountable for implementation of this policy in Barclays Bank Group. Industrial Relations Standard Industrial Relations manages Barclays’ relationship with the Unite trade union in the UK and the Barclays Group European Forum. It also provides oversight for other local collective representative bodies, including unions, employee fora and works councils. The Industrial Relations Standard provides appropriate controls to address listening to employee feedback and maintaining a strong and effective partnership with trade unions and national works councils to foster employee wellbeing and maintain an engaged workforce. Through the Industrial Relations Standard, Employee Relations is responsible for: • Ensuring that all formal agreements with collective representative bodies are documented; • Ensuring that all engagements and formal agreements between Barclays and collective representative bodies adhere to any formal recognition and procedural agreements; and • Managing all formal disputes between Barclays and collective representative bodies in line with agreed dispute resolution protocols. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 79 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information All policies and standards are monitored and refreshed at a minimum on an annual basis alongside all content. They also undergo ad-hoc changes due to any regulatory or legal changes. During these refreshes, SMEs across Barclays are consulted. The Standard applies to Barclays PLC and its subsidiaries. It covers all employees (as per the definition in the scope of policies table refer to page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889)) of any in-scope entity. The Barclays Head of Employee Relations is accountable for approving and implementing the content of the Standard. Actions There are no further actions to enhance positive impacts relating to the working conditions set out above, beyond the implementation of the standards outlined in this document. Targets There are no specific targets to track positive impacts. Metrics | | | | --- | --- | | | | | Metric | Value | | Your View response rate | 73% | | Engagement (%) Your View Score | 82% | | Your View score for Inclusion Index | 79% | | Wellbeing Index (%) | 85% | Basis of Preparation The Your View survey is an annual process whereby Barclays consensually collect sensitive metadata. This is only applicable to the following jurisdictions due to data privacy considerations: UK, USA, India, Canada, Mexico, Singapore, and Hong Kong. The 2024 survey covered questions including: self-determined gender, transgender identification, sexuality, ethnicity, disability, carer responsibilities, socio-economic background, and military service/veteran. The following employees as at 31 July 2024 are eligible to respond to the Your View survey: • Permanent/Regular, Graduate, Apprentice, Temp/Contractor Payroll (Fixed Term) • Operational and Non-Operational Data is held in specific Your View projects within Qualtrics. Due to the data sensitivity, line-by-line results are restricted to small number of colleagues with the People Analytics and Culture Team. The aggregated data is shared with Senior Leaders and People Leaders for their relevant businesses within the Qualtrics online dashboard. Aggregated data is only shared if it achieves 10 responses or more. Senior Leaders (and their supporting teams) are determined by business managers within the business. People Leader access is automatic if their reporting line achieves 10 or more responses. | | | | --- | --- | | | | | Metric | Description | | Your View response rate | This metric shows the total percentage of colleagues that complete the all colleague Your View survey. | | Engagement (%) Your View Score | This metric is derived from the responses to three questions in the Your View survey that measure advocacy, motivation and sense of personal accomplishment. The Engagement % Your View Score is calculated by aggregating the scores of the engagement questions. | | Your View score for Inclusion Index | This metric measures how included colleagues feel working at Barclays. The Inclusion Index % Your View score  is calculated by aggregating the scores of the Inclusions Index questions. | | Wellbeing Index (%) | This metric measures the psychological wellbeing of colleagues. The Wellbeing Index % Your View Score is calculated by aggregating the scores of the Wellbeing Index questions. | Colleagues respond using an 11-point scale, with responses between 6-10 considered favourable, 5 considered neutral and 0-4 considered unfavourable. Data is reported as a percentage of favourable responses. Employee relations Policies Whistleblowing Standard The Whistleblowing Standard provides appropriate controls to address the risk that Barclays' culture does not empower employees to raise concerns about Inappropriate Conduct. Inappropriate Conduct includes a breach of the firm's policies and procedures, conduct that could be the subject of a qualifying protected disclosure (including breaches of laws, regulations or rules), and behaviour that harms or is likely to harm the reputation or financial well-being of the firm. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 80 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information Barclays is committed to providing a transparent process that enables individuals to speak up and no one should experience any form of retaliation of any kind as a consequence of speaking up. Barclays will ensure that all concerns raised will be assessed, treated seriously and reviewed. Whistleblowing primarily addresses issues of broader public concern. For matters like an employee’s personal treatment (e.g. remuneration, performance ratings, etc.), existing channels are available (such as a people leader or a colleague in HR, Compliance or Legal). The Raising Concerns process allows colleagues to raise concerns, including whistleblowing concerns, through a range of gateways (including on an anonymous basis). The Barclays Way includes advice and guidance on speaking up and raising concerns. All colleagues are required to undertake training on The Barclays Way. The Head of Compliance Framework and Policies Team is accountable for approving and implementing the content of the Standard. All policies and standards are monitored and refreshed at a minimum on an annual basis alongside all content. They also undergo ad-hoc changes due to any regulatory or legal changes. During these refreshes, SMEs across Barclays are consulted. The Standard applies to Barclays PLC and its subsidiaries. It covers all employees (as per the definition in the scope of policies table refer page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) of any in-scope entity). Disclosure on the Board Audit Committee’s oversight of whistleblowing can be found at Raising concerns within the Corporate Governance Statement on page [25](#i29c2b780fba64e579b29661f9a58f3e6_308368). The Working at Barclays Standard See also page [73](#ia16d0659cd524c01ae655d82fa382c3d_10973) for additional disclosures related to Working Conditions: Employee Relations. Actions There are no further actions to enhance positive impacts relating to the working conditions set out above, beyond the implementation of the standards outlined in this document. Targets There are no specific targets to track positive impacts. Metrics Percentage of employees completing Mandatory Training (MT) module: Whistleblowing 2024 - 100% • Employees are defined in line with assignments (see MT metric on page [72](#ia16d0659cd524c01ae655d82fa382c3d_9230)) • Percentage completed is reported against the employees in scope to complete the module within 2024 • Additional details on MT can be found in the MT metric on page [72](#ia16d0659cd524c01ae655d82fa382c3d_9230) S2: ### Workers ### in the Value Chain The below table describes the impact for the material sustainability matter related to Workers in the Value Chain, as identified during the DMA process: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Material Impact | | Value Chain | | | Time Horizon | | | | Description | Type | Upstream | Own Operations | Downstream | Short (> 1year) | Medium (2 -5 years) | Long (>5 years) | | Labour Rights (including Modern Slavery) | | | | | | | | | Barclays Bank Group could be connected to potential downstream negative impacts over the short, medium and long term on labour rights (including Modern Slavery) of workers in our value chain by providing financial services to clients who operate across a wide range of sectors and geographies in which modern slavery has been identified as a potential concern and/or clients who may have weak health and safety protections or poor practices relating to worker’ health and safety in the operations and/or value chains of entities in our downstream value chain. | Negative Impact | | | \* | \* | \* | \* | Strategy Barclays' strategy to manage material impacts relating to workers in the value chain is led by its commitment to respect human rights. This includes its sensitive sector and area policies which require annual enhanced due diligence to be carried out on clients who are in scope of the policy statements, where potential human rights violations, including modern slavery risks, may be identified. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 81 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information As a global financial institution, Barclays Bank Group provides a range of financial services to entities operating in various sectors and geographies, including those with a higher prevalence of labour rights issues including modern slavery. Therefore, we may be connected to impacts associated with our downstream value chain. For the current reporting year, no additional steps were undertaken to develop detailed understanding of how workers in the value chain with particular characteristics or those working in particular industries or roles could be impacted. For the IROs identified as material during the DMA, the impacts are expected to be widespread and could apply to workers in our clients' value chains across multiple sectors and geographies, as opposed to specific groups. However, when considering the development of policies and actions to management of environmental and social risks, consideration is given to whether the sectors and/or geographies in scope carry elevated labour rights (incl. modern slavery) risks and, if so, relevant considerations and actions are included. Currently, we have not identified any material risks or opportunities. We also engage with workers in our value chain as part of our stakeholder engagement for further details please refer to page [42](#ia16d0659cd524c01ae655d82fa382c3d_7526). For definition of workers in the value chain, refer to page [41](#i1dfae2edc857471e910f5e465160e984_210799). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 82 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information Policies We apply the following policy in relation to managing our material impacts on value chain workers: Barclays Group Statement on Human Rights Barclays Group Statement on Human Rights expresses Barclays' commitment to respecting human rights as defined in the International Bill of Human Rights and the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work (ILO Declaration). Our approach to respecting human rights is guided by the UN Guiding Principles on Business and Human Rights (UNGPs) and the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises on Responsible Business Conduct (OECD Guidelines). Barclays Group Statement on Human Rights applies to the entirety of Barclays and covers its approach to its own operations, upstream and downstream value chain. However, this disclosure will focus only on the elements of the policy which are relevant to the IRO, and is specific to the downstream value chain. Barclays Group Statement on Human Rights sets our expectations for Barclays clients and other relevant parties, our approach to assessing and managing our relationships with these parties, and is available on the Barclays website. The general objective of the policy is: • To set out Barclays' commitment and approach to respecting human rights – including in our role as a provider of financial products and services. In these roles, Barclays can be connected to human rights impacts on affected communities and workers in its value chain. The commitments set out in Barclays Group Statement on Human Rights are supported by an evolving framework of policies and processes that seek to embed these commitments across our business The key contents of the policy include: • Barclays' approach to human rights including commitments, due diligence, and how we currently approach remedy, as well as its approach to material impacts, such as human trafficking and modern slavery • The statement outlines Barclays': – commitment to respecting human rights in line with relevant international standards – Policy scope and coverage – Approach to human rights including as a provider of financial services, which are relevant to the management of impacts on affected communities and workers in the downstream value chain – Approach to remedy – Approach to ongoing monitoring and tracking – Policy governance – Approach to communication The process for monitoring outlined in the policy is: • We seek to monitor issues and developments globally that may present new or elevated human rights risks, and work to evaluate our potential involvement and consider our responsibilities to seek to address these risks • We endeavour to monitor emerging human-rights-related laws, rules and regulations, as well as international normative standards, good practice and stakeholder expectations • Where local legislation is more stringent, local requirements will apply in addition to the expectations outlined in Barclays Group Statement on Human Rights. Where it conflicts with Barclays' commitments set out in Barclays Group Statement on Human Rights, we will comply with the law and, where relevant, will seek to raise awareness of human rights and make efforts to engage with relevant stakeholders to seek to ensure human rights are respected Barclays Group Statement on Human Rights explicitly addresses impacts such as forced labour and human trafficking, for example, the following extract from the Statement: "In Barclays Group’s role as provider of private banking discretionary management services: Barclays Private Bank’s investment due diligence, within Discretionary Portfolio Management, aims to consider material and/or relevant risks of portfolio companies – including on human rights risks, such as modern slavery, human trafficking, forced labour, workplace standards and employee relations." Although the material IRO relates only to downstream impacts and not upstream, Barclays Group Statement on Human Rights also describes Barclays’ approach to this impact in the upstream value chain. In Barclays’ role as a procurer of products and services: Barclays’ standard Third Party Service Provider (TPSP) terms include an obligation on the TPSPs to respect internationally recognised human rights, including not using forced, bonded or involuntary prison labour or engaging in any practices constituting modern slavery or human trafficking. The terms also require Barclays’ TPSPs to use reasonable efforts to procure the same of their affiliates and subcontractors. Barclays does have a Third Party Code of Conduct. Barclays group-wide frameworks, policies and standards will be adopted throughout Barclays and applied unless local laws or regulations require otherwise. As such, the Barclays Bank Group CEO is the most senior individual in the organisation who is accountable for the implementation of the statement. Barclays PLC's Board receives regular updates on Public Policy and Corporate Responsibility matters, including Sustainability and Reputation risk, which may cover human rights matters. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 83 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information Barclays PLC's Board is presented with the Group Reputation Risk Report from the Group Head of Public Policy and Corporate Responsibility twice a year in order to consider the most significant live and emerging reputation risks for Barclays, as well as a summary of items discussed by the Group Reputation Risk Committee. Both of these updates may cover human rights matters. In addition, the Barclays PLC Board may be notified of, or asked to consider, specific Reputation Risk matters from across Barclays, aligned with the escalation protocols set out in the Reputation Risk Management Framework. Barclays PLC's Board is supported by the Board Sustainability Committee, which provides oversight of climate matters and the sustainability agenda, including human rights matters, escalating items to the Barclays PLC Board as appropriate. The Board Sustainability Committee is assisted by the Group Sustainability Committee, which is chaired by the Group Head of Public Policy and Corporate Responsibility, in discharging its responsibilities. We do not currently have a defined process whereby we track reported cases of non-respect of the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work or the OECD Guidelines for Multinational Enterprises that involve value chain workers, so we are unable to accurately disclose the extent and/or nature of such cases reported in our downstream value chain this year. However, certain entities within the Private Bank and Wealth Management business already disclose some relevant information under the Sustainable Finance Disclosure Regulation (SFDR). Engagement with Workers in the Value Chain Barclays does not currently have a specific process adopted for engaging with workers in the value chain and their representatives about actual and potential impacts of our financing on them. However, engagement with representatives for value chain workers may occur on an ad hoc basis. For example, in 2023 Barclays completed a saliency assessment of human rights risks in the then Corporate and Investment Bank. Between January and August 2023, Barclays worked with Shift, a non-profit and leading centre of expertise on business and human rights, and gathered a range of perspectives through engagement with both internal and external stakeholders, to seek to understand the most salient human rights risks to people connected to the CIB financing portfolio. Barclays recognises that engagement, including with credible proxies for affected stakeholders, is essential to developing our understanding of the actual and potential human rights risks and enhancing the robustness and legitimacy of the process. In our external engagement, we engaged with ten civil society organisations (CSOs), selected by reference to their previous contact with Barclays in relation to human rights issues, and/or their recognised expertise, in particular, on the intersection between financial institutions and human rights. Engagement took place through a series of focused discussions, mostly facilitated by Shift. Guided by this work to identify salient issues, we defined our Human Rights Focus Areas for Progress, described in the Actions section starting on page [84](#ia16d0659cd524c01ae655d82fa382c3d_7001), setting out the actions we are taking to further implement the commitments in Barclays Group Statement on Human Rights. Approach to Remedy Barclays does not currently have any specific channels in place for value chain workers to raise their concerns or needs directly with the undertaking and have them addressed, nor does it currently have a specific process relating to providing and/or enabling remedy for value chain workers. However, in the absence of such a channel or process, Barclays does have a Raising Concerns channel which is available via Barclays’ external facing Raising Concerns webpage. This channel is not specific to workers in the value chain but could technically be accessed by workers in the value chain as it is available on our public facing website. The Raising Concerns process will assess all concerns raised, including whistleblowing concerns. A whistleblow relates to concerns which fall within the wider public interest and may include, for example, concerns regarding breaches of our policies and procedures and breaches of laws and regulation. Reports of behaviour that may be harmful to Barclays and the communities we serve could also be assessed as whistleblows. The external facing Raising Concerns channel remains available on an ongoing basis. Barclays does not currently have a specific processes in place to provide for, or cooperate in, the remediation of negative impacts on workers in the downstream value chain. However, Barclays plans to evolve its approach to remedy over time, as outlined in its Human Rights Focus Areas for Progress, within the Actions section starting on page [84](#ia16d0659cd524c01ae655d82fa382c3d_7001). In addition, Barclays does seek to engage clients on their approach to remedy, particularly in the context of project finance as part of implementing the Equator Principles. This includes engaging with clients around implementing grievance mechanisms aligned with UN Guiding Principles effectiveness criteria at the project level. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 84 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information Actions The following actions seek to manage Labour Rights (including Modern Slavery), relating to workers in the value chain: Human Rights Focus Areas for Progress Our Human Rights Focus Areas for Progress set out the actions we are taking to further implement the commitments in our Statement, and are guided by the salient issues identified in our assessment, which included modern slavery. These areas are not associated with specific time horizons but aim to guide our focus and actions in relation to human rights. The Focus Areas for Progress are: • Corporate culture: Strengthen a culture of respect for human rights • Saliency assessments: Identify salient issues beyond the corporate and investment banking portfolios • Policies and Enhanced Due Diligence (EDD): Enhancement of certain sustainability policies and EDD to reflect salient issues • Just transition: Supporting a transition to a low-carbon economy which accounts for the social risks as well as the opportunities • Remedy: Develop our approach to remedy Progress against these Focus Areas in 2024 includes the following actions relevant to the management of this IRO: • Corporate culture: Existing mandatory training modules for certain colleagues were refreshed to include new content on human rights. We have also integrated content on social considerations into new training modules relating to sustainable finance to be rolled out in 2025 • Policies and EDD: During 2024, Group Sustainability reviewed and updated certain sensitive sector statements and underlying enhanced due diligence processes. Where opportunities to better reflect the salient issues identified for the corporate and investment banking portfolios were identified, work was undertaken to embed considerations for these issues within our public position statements and relevant enhanced due diligence processes. For example, reference to in-scope clients' approach to human rights due diligence was built out in the updated Climate Change Statement • Just transition: Barclays Climate Venture portfolio companies were engaged to build their understanding of how they can contribute to a just transition. As a result, one portfolio company was supported to enhance social and human rights considerations in its supply chain due diligence processes, including aligning questions more closely with relevant social risks. Enhanced Due Diligence The actions described below relating to enhanced due diligence, including for clients in scope of the Forestry and Agricultural Commodities Statement and Climate Change Statement are not associated with specific timeframes. • Barclays Bank Group conducts enhanced due diligence (EDD) on certain clients in scope of our policy statements. Further details on the Barclays Bank Group approach to EDD (including the resources allocated) can be found on page [54](#ia16d0659cd524c01ae655d82fa382c3d_6718) • The social and human rights impact questions within the Sustainability Enhanced Due Diligence questionnaire relating to certain energy sub-sectors covered by Climate Change Statement, were reviewed and updated during 2024 to reflect updates to the Climate Change Statement and Barclays Group Statement on Human Rights as well as the Focus Areas for Progress and the applicable Barclays’ salient human rights issues identified during the 2023 assessment of the then Corporate and Investment Bank. Enhanced due diligence contributes to the achievement of the objectives of the Barclays Group Statement on Human Rights, as these evaluations enable us to more effectively assess the potential negative impact a client may have on value chain workers. FAC Statement The following enhanced due diligence actions taken by Barclays Bank Group relevant to the management of the Impact of Labour Rights (including Modern Slavery) pursuant to the FAC Statement. The full policy is available to stakeholders on the Barclays website. As outlined in this Statement, Barclays has no appetite for providing Financial Services to soy, beef, palm oil, forestry and timber companies that are directly involved in acts of violence against or exploitation of people and local communities, including through forced labour, modern slavery and human trafficking. Barclays' FAC Statement outlines relevant requirements and expectations of in-scope clients, these include: • Soy, beef, palm oil and forestry and timber companies are required to have a policy commitment to respect human rights across their operations and supply chains • Soy, beef, palm oil  and forestry and timber companies are expected to undertake human rights due diligence across their operations and supply chain and we will encourage clients to do this during annual client diligence This statement contains both mandatory requirements and non-mandatory expectations which are applied to clients. All clients deemed within the scope of this statement are reviewed against these on a case by case basis and subject to enhanced due diligence. In cases where clients are identified as non-compliant with the mandatory requirements, Barclays will require the client to develop and implement an action plan to remediate this within a limited timeframe. Where these clients are unable or unwilling to do so we will seek to exit the relationship taking into account existing contractual arrangements. In cases where clients are identified as not meeting the non-mandatory expectations, Barclays Bank Group will engage with these clients during annual client due diligence and encourage them to adhere to these. Where these clients are unable or unwilling to do so over time, we will review the relationship and may reduce our support. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 85 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information Referral and Escalation: Where client relationships or transactions are assessed as higher risk following an enhanced due diligence review, they are then considered for escalation to the appropriate business unit review committee where there is representation from the appropriate subject matter experts. Should the issues be assessed as presenting material reputational risk, these clients/relationships would be escalated to the Group Reputation Risk Committee, which comprises members of the Group Executive Committee. This statement covers the provision of Financial Services to Barclays clients that majority own or operate: • Soy production (for example, soybean growing) or primary processing (for example, soybean crushing) operations in High Deforestation Risk Countries in South America. These are termed “soy companies” in this statement • Beef production (for example, cattle ranching) or primary processing (for example, meatpacking) operations in High Deforestation Risk Countries in South America. These are termed “beef companies” in this statement • Palm oil production (for example, palm oil plantations) or primary processing (for example, palm oil milling) operations in High Deforestation Risk Countries. These are termed “palm oil companies” in this statement • Timber production (for example, forestry plantations, logging) or primary processing (for example, timber milling) operations in High Deforestation Risk Countries. These are termed “forestry and timber companies” in this statement Climate Change Statement The following enhanced due diligence actions are taken by Barclays Bank Group relevant to the management of the impact of Labour Rights (including Modern Slavery) pursuant to the Climate Change Statement. The full policy is available to stakeholders on the Barclays website. Barclays Bank Group conducts EDD on a case-by-case basis on Groups in scope of the Climate Change Statement. This approach is risk based and Groups are analysed against specific environmental and social risk considerations in addition to the above requirements which include, but are not limited to: • The Group’s adherence to the Equator Principles (if a project finance or credit transaction is deemed to be in scope) including, where appropriate, any relevant International Finance Corporation (IFC) performance standards; • The Group’s approach to and track record in protecting the health and safety of the workforce and local communities; • The Group’s approach to identifying and addressing its human rights impacts, including through due diligence. Barclays currently does not have any specific action to track the effectiveness of initiatives for value chain workers in the downstream value chain. While Barclays does not currently have a specific process for identifying what action is needed in response to particular impacts on value chain workers, it has undertaken ad hoc work to identify actual and potential impacts on value chain workers, which helps to inform its action planning, for example, the 2023 saliency assessment described in the Policies section starting on page [82](#ia16d0659cd524c01ae655d82fa382c3d_7012). Approach to Remedy Barclays has not taken any specific actions to provide or enable remedy in relation to an actual material impact on value chain workers in this reporting period. However, please see details on our approach to remedy in the Policies section starting on page [82](#ia16d0659cd524c01ae655d82fa382c3d_7012). Targets Barclays does not currently have specific targets in place relating to reducing managing material negative impacts on workers in the value chain. As part of Barclays, we are working to enhance and further embed our approach to addressing human rights related impacts into our business and risk management processes. While we do annually review our policies, we don’t currently have other formal processes to track the effectiveness of the policies and actions referred to above. Once this work is further advanced, we may consider how best to track the effectiveness of our policies and actions, including the appropriateness of setting targets and/or setting relevant qualitative or quantitative indicators. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 86 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information S3: ### Affected Communities The below table describes the impacts for the material sustainability matter related to Affected Communities, as identified during the DMA process: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Material Impacts | | Value Chain | | | Time Horizon | | | | Description | Type | Upstream | Own Operations | Downstream | Short (> 1year) | Medium (2 -5 years) | Long (>5 years) | | Communities' economic, social and cultural rights - Impact of climate change | | | | | | | | | Barclays Bank Group could be connected to potential downstream negative impacts over the short, medium and long term on the economic, social, and cultural rights of affected communities because Barclays provides financial services to high-emission sector clients. The  physical risks of climate change could impact rights to food, health, adequate housing, and water and sanitation. | Negative Impact | | | \* | \* | \* | \* | | Communities' economic, social and cultural rights - Just transition | | | | | | | | | Barclays Bank Group could be connected to downstream negative impacts over the short, medium and long term on people in affected communities associated with the transition to a low-carbon economy, through the provision of financial services to clients to support or incentivise their carbon transition strategies, but which may lead to negative impacts on communities, such as the loss of jobs, or to clients in relation to new low carbon energy solutions with negative impacts on land rights or which involve the use of exploitative labour practices. | Negative Impact | | | \* | \* | \* | \* | | Communities' civil and political rights - Weapon and dual-use technology exports | | | | | | | | | Barclays Bank Group could be connected to downstream negative impacts over the short, medium and long term on the civil and political rights of people in affected communities through the provision of financial services to clients whose operations include the export of weapons and dual-use technologies, which have the potential to  significantly impact the rights of affected communities. | Negative Impact | | | \* | \* | \* | \* | | Communities' civil and political rights - Land rights | | | | | | | | | Barclays Bank Group could be connected to potential downstream negative impacts over the short, medium and long term on the civil and political rights of people in affected communities through the provision of financial services to clients whose operations are linked to business or state practices or policies which infringe on communities' land rights, including physical or economic displacement. | Negative Impact | | | \* | \* | \* | \* | | Indigenous People's rights | | | | | | | | | Barclays Bank Group could be connected to  downstream negative impacts over the short, medium and long term on Indigenous Peoples rights through the provision of financial services to clients who could potentially be linked to impacts on Indigenous Peoples rights, through their own business practices and/or because there are insufficient state protections afforded to Indigenous Peoples. | Negative Impact | | | \* | \* | \* | \* | Strategy As a global financial institution, Barclays Bank Group provides a range of financial services to entities operating in various sectors and geographies. Therefore, we may be connected to impacts associated with our downstream value chain. Barclays' strategy to manage material risks relating to affected communities is led by its commitment to respect human rights. This includes its policy statements which require annual EDD on clients who are in scope of those policy statements which may identify potential human rights impacts. For example, Barclays' Statement on the Defence and Security Sector outlines various activities for which Barclays has no appetite, including but not limited to any Financial Proposition to companies known to trade in, or manufacture, landmines in violation of the Anti-Personnel Landmines Convention or any equipment designed to be used as an instrument of repression or torture, in violation of the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment. Barclays has also used insights from the 2023 saliency assessment to inform its approach to managing its most salient human rights risks connected to the corporate and investment banking portfolio, including human impacts of climate change and the energy transition, Indigenous people, land rights, modern slavery, and weapons and dual use technology exports. In 2024, Barclays published its Focus Areas for Progress which set out the actions it intends to undertake over time to enhance its approach to the management of its salient issues. For the current reporting year, no additional steps were undertaken by Barclays Bank Group to develop detailed understanding of how affected communities with particular characteristics or those living in particular geographies could be impacted. The impacts identified as material are expected to be widespread, global and across multiple sectors. However, when considering the development of policies and actions to management of environmental and social risks, consideration is given to whether the sectors and/or geographies in scope carry elevated risks to certain affected communities and, if so, relevant considerations and actions are included. Policies | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 87 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information We apply the following Barclays Group policies in relation to managing our material impacts on affected communities: Barclays Group Statement on Human Rights This statement relates to the management of the following impacts: • The impact of Climate Change on Communities’ economic, cultural and social rights; • Communities’ civil and political rights - Weapons and Dual Use Technology Exports; • Communities’ civil rights – Land rights; • Indigenous Peoples’ Rights; and • Just transition. Details of Barclays Group Statement on Human Rights can be found on page [82](#ia16d0659cd524c01ae655d82fa382c3d_7012). Barclays Statement on the Defence and Security Sector This statement relates to the management of Communities’ Civil and Political Rights – Weapons and Dual Use Technology Exports. Barclays' Statements are publicly available online where it can be accessed be all stakeholders, including affected communities. The general objective of the policy is: • To outline Barclays' approach to the provision of Financial Propositions to clients operating in the Defence and Security Sector. The key contents of the statement are: • The scope of the statement, including activities for which Barclays has no appetite; • An overview of Barclays Bank Group's approach to enhanced due diligence for clients in scope of the statement; • A description of the referral and escalation procedure; and • Policy governance. The scope of the statement covers the provision of Financial Propositions to clients operating in the Defence and Security Sector. Barclays has no appetite for certain activities, including, but not limited to, the following: • Providing any Financial Proposition to companies known to trade in, or manufacture cluster munitions and their components in violation of the International Convention on Cluster Munitions; • Providing any Financial Proposition to companies known to trade in, or manufacture, chemical and biological weapons; • Providing any Financial Proposition to companies known to trade in, or manufacture, landmines in violation of the Anti-Personnel Landmines Convention or any equipment designed to be used as an instrument of repression or torture, in violation of the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment; and • Directly financing the manufacture of, or trade in, nuclear weapons. In addition to these activities, Barclays currently has no appetite for providing new Financing to operators of US Immigration centres or operators of US Private prisons. The Defence and Security Sector Statement is regularly reviewed and our approach to risk management in providing financial propositions to clients in the Defence and Security Sector is underpinned by our adherence to applicable laws and regulations. Any review of this Statement will be undertaken by the Barclays Group Sustainability Committee with escalation to the Barclays Board Sustainability Committee or Barclays Board (if appropriate). The Defence and Security Sector Statement is available to stakeholders on the Barclays website. Barclays group-wide frameworks, policies and standards will be adopted throughout Barclays and applied unless local laws or regulations require otherwise. As such, the Barclays Bank Group CEO is the most senior individual in the organisation that is accountable for the implementation of the statement. Engagement with Affected Communities Barclays does not currently have a defined general process for engaging with affected communities and their representatives about actual and potential impacts on them. However, engagement with representatives for affected communities may occur on an ad hoc basis which goes towards informing our decisions and activities. For example, as part of the 2023 saliency assessment described on page [82](#ia16d0659cd524c01ae655d82fa382c3d_7012). Where affected communities in the downstream value chain are Indigenous Peoples, Barclays Bank Group’s EDD approach for certain sectors includes questions relating to clients’ respect of the particular rights of Indigenous Peoples in their stakeholder engagement approach. Namely: | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 88 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information • Barclays Bank Group undertakes EDD on clients in scope of its Climate Change Statement which covers matters including the client's approach to stakeholder engagement and consultation, including its commitment and adherence to the principles of Free, Prior, and Informed Consent where Indigenous Peoples may be impacted by their operations; and • Barclays Bank Group also requires palm oil companies and forestry and timber companies in scope of the Forestry and Agricultural Commodities Statement to work to obtain the consent of affected indigenous and local communities prior to acquiring new land or resources and prior to new plantation developments or expansions through a credible "free, prior and informed consent" process. Approach to Remedy Barclays does not currently have a dedicated process through which it supports the availability of a channel for affected communities by its business relationships, nor does it currently have a specific process relating to providing and/or enabling remedy for affected communities. However, in the absence of a dedicated channel for affected communities, Barclays has a channel for raising concerns, described on page [82](#ia16d0659cd524c01ae655d82fa382c3d_7012), which is open to the public and could technically be accessed and utilised by affected communities. While Barclays does not currently have specific time horizons associated with actions to provide for, or cooperate in, the remediation of negative impacts on affected communities, the Raising Concerns channel is available to the public on an ongoing basis. In addition to this, Barclays seeks to engage clients on their approach to remedy, particularly in the context of project finance as part of implementing the Equator Principles. This includes engaging with clients around implementing grievance mechanisms aligned with UN Guiding Principles effectiveness criteria at the project level. We do not currently have a defined process whereby we track reported cases of non-respect of the UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work or the OECD Guidelines for Multinational Enterprises that involve affected communities, so we are unable to accurately disclose the extent and/or nature of such cases reported in our downstream value chain this year. However, certain entities within the Private Bank and Wealth Management business already disclose some relevant information under SFDR. #### Actions We undertake the following key actions aimed at seeking to mitigate material risks relating to affected communities, as described in our position statements which are publicly available. The following actions relate to the management of the following impacts: • The impact of Climate Change on Communities’ economic, cultural and social rights; • Communities’ civil and political rights - Weapons and Dual Use Technology Exports; • Communities’ civil rights – Land rights; • Indigenous Peoples’ Rights; and • Just transition. Human Rights Focus Areas for Progress The following actions relevant to the above IROs have been taken over 2024 to advance against Barclays Human Rights Focus Areas for Progress, an outline of which can be found on page [84](#ia16d0659cd524c01ae655d82fa382c3d_7001). Corporate culture • Senior stakeholders and decision-making committees within the organisation, including the Board Sustainability Committee, received dedicated external training on human rights to support their understanding of relevant frameworks and responsibilities • A broader awareness campaign was also run internally during 2024, including materials focused on how human rights risks could materialise across Barclays' operations and value chain, and how certain colleagues may seek to identify and manage these risks • Existing mandatory training modules for certain colleagues were refreshed to include new content on human rights. We have also integrated content on social considerations into new training modules relating to sustainable finance to be rolled out in 2025 Saliency assessments • One of the key pillars of work within the remit of Barclays' Human Rights Programme focuses on the assessment of human rights risk across the broader Group, beyond the corporate and investment banking portfolios. Work has already been undertaken to upskill relevant colleagues across Barclays in human rights risk assessment with the aim of initiating further assessments in 2025 • To further support this work, a cross-functional working group was convened as part of the Human Rights Programme to collectively agree on a definition of human rights risk for Barclays. This work aimed to develop a collective internal understanding of human rights risk and leverage this definition to support the evolution of our approach to risk management Policies and EDD • During 2024, Group Sustainability reviewed and updated certain sensitive sector policy statements and underlying enhanced due diligence processes. Where opportunities to better reflect the salient issues identified for the corporate and investment banking | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 89 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information portfolios were identified, work was undertaken to embed considerations for these issues within our policy statements and relevant enhanced due diligence processes. For example, reference to in-scope clients' approach to human rights due diligence was built out in the updated Climate Change Statement Just transition • Barclays Climate Venture portfolio companies were engaged to build their understanding of how they can contribute to a just transition.  As a result, one portfolio company was supported to enhance social and human rights considerations in its supply chain due diligence processes, including aligning questions more closely with relevant social risks Remedy • During 2024, Barclays continued to actively participate in industry-wide discussions aimed at advancing collective understanding around the role of the financial sector in effective remedy. We engaged with industry groups and fora such as Equator Principles and Thun Group to understand best practice to support our evolving approach Enhanced Due Diligence • Further details on Barclays Bank Group approach to EDD (including details on resources allocated) can be found on pages [54](#ia16d0659cd524c01ae655d82fa382c3d_6718) and [84](#ia16d0659cd524c01ae655d82fa382c3d_7001). The following actions relate to the management of Communities' civil and political rights - Weapons and Dual Use Technology Exports: Barclays' Statement on the Defence and Security Sector Barclays Bank Group conducts EDD as appropriate on clients in the Defence and Security Sector. Individual transactions may also undergo additional EDD review, where deemed to present a higher risk. Our EDD process considers relevant information from a number of sources, including information from independent data providers and information regarding relevant legal requirements which have practical implications (for example, the imposition of embargoes and sanctions). The Defence and Security Sector EDD process assesses specific risk considerations which may include, but are not limited to: • In cases where clients or transactions are exporting equipment, the status of the exporter (including confirmation of the appropriate export licence when appropriate) and the importing / exporting country (for example, whether the importing country is considered a conflict zone) • The nature of the equipment and its likely use, including any potential for it to be on-sold to another end-user or to be adapted for offensive application • The potential risks associated with clients’ use of any third parties or agents in the course of its business to assist with the gaining of particular contracts • Clients’ association with controversial weapons banned by international treaty agreements • Any adverse media identified relating to the conduct of the client and / or their defence products or services • The human rights track record of the client, their counterparties, or the region(s) within which they operate • Compliance with applicable laws and regulations • Potential risks of the exports being used to support intrastate oppression or unjustified external aggression Referral and Escalation: Where client relationships or transactions are assessed as higher risk following an EDD review, they are then considered for escalation to the appropriate business unit review committee where there is representation from the appropriate subject matter experts. Should the issues be assessed as presenting material reputational risk, including risks to compliance with Barclays Group Statement on Human Rights, these clients/relationships would be escalated to the Group Reputation Risk Committee, which comprises members of the Group Executive Committee. The following actions relate specifically to the management of the following impacts • The impact of Climate Change on Communities’ economic, cultural and social rights, • Communities’ civil rights – Land rights FAC Statement Barclays Bank Group takes the following relevant EDD actions pursuant to the FAC Statement. Details of the Statement, including scope, referral and escalation process can be found within the Actions section for the impact of Labour Rights (including Modern Slavery), starting on page [84](#ia16d0659cd524c01ae655d82fa382c3d_7001). Our FAC Statement outlines requirements and expectations of in-scope clients, these include: • Soy, beef, and forestry and timber, and palm oil companies are required to have a policy commitment to respect human rights across their operations and supply chain | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 90 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information • Soy, beef, forestry and timber, and palm oil companies are expected to undertake human rights due diligence across their operations and supply chain and we will encourage clients to do this during annual client diligence • Forestry and timber, and palm oil companies are also required to obtain the consent of affected indigenous and local communities prior to acquiring new land or resources and prior to new plantation developments or expansions through a credible “free, prior and informed consent” process This statement contains both mandatory requirements and non-mandatory expectations which are applied to clients. All clients deemed within the scope of this position statement are reviewed against these on a case by case basis and subject to EDD. In cases where clients are identified as non-compliant with the mandatory requirements, Barclays Group will require the client to develop and implement an action plan to remediate this within a limited timeframe. Where these clients are unable or unwilling to do so we will seek to exit the relationship taking into account existing contractual arrangements. In cases where clients are identified as not meeting the non-mandatory expectations, Barclays Bank Group will engage with these clients during annual client due diligence and encourage them to adhere to these. Where these clients are unable or unwilling to do so over time, we will review the relationship and may reduce our support. Climate Change Statement Barclays Bank Group takes the following relevant EDD actions pursuant to the Climate Change Statement. EDD action undertaken on certain clients in scope of the Statement consider factors which include, but are not limited to: • The Group’s adherence to the Equator Principles (if a project finance or credit transaction is deemed to be in scope) including, where appropriate, any relevant International Finance Corporation (IFC) performance standards; • The Group’s approach to and track record in protecting the health and safety of the workforce and local communities; • The Group’s approach to stakeholder engagement and consultation, including its commitment and adherence to the principles of Free Prior Informed Consent (FPIC) where indigenous peoples may be impacted by their operations; • The Group’s approach to identifying and addressing its human rights impacts, including through due diligence. The following actions relate specifically to the management of the impact: Indigenous Peoples’ Rights: FAC Statement Our FAC Statement outlines requirements and expectations of in-scope clients, these include: • Forestry and timber, and palm oil companies are also required to obtain the consent of affected indigenous and local communities prior to acquiring new land or resources and prior to new plantation developments or expansions through a credible “free, prior and informed consent” process. Climate Change Statement EDD undertaken on certain clients in scope of the Statement consider factors which include, but are not limited to: • The Group’s adherence to the Equator Principles (if a project finance or credit transaction is deemed to be in scope) including, where appropriate, any relevant International Finance Corporation (IFC) performance standards; and • The Group’s approach to stakeholder engagement and consultation, including its commitment and adherence to the principles of Free Prior Informed Consent (FPIC) where Indigenous Peoples may be impacted by their operations; The following actions relate specifically to the management of the impact of just transition • We continued our work to understand the importance of place-based considerations in the just transition and are collaborating with Aberdeen City Council, bp, Shell UK, and SSE to consider ways of supporting a just energy transition for local communities and workers in Aberdeen. In 2024, with funding from participating companies, Aberdeen City Council led a procurement process to appoint a third-party partner to take the project forward in 2025 and develop potential interventions • During 2024, we integrated content on social considerations into new training modules relating to sustainable finance to be rolled out in 2025 • We are working to better understand how our clients are managing just transition topics, and strengthen our client engagement around this. This includes how they manage the impacts of the transition on people through their human rights policies and due diligence processes and their plans for workforce transition. This also considers the extent to which just transition factors may have wider commercial ramifications for the pace or cost of a client's transition in the markets in which they operate The following key actions are planned for the future: • Over 2024, Barclays has taken steps to establish a formal programme of work focused on continuing to enhance and embed Barclays' approach to respecting human rights across our business. The Human Rights Programme provides a governance structure and platform for business and functions to collaborate and make progress in key areas including human rights risk identification, further embedding and enhancing controls, and capability-building to upskill and strengthen colleagues' understanding of human rights risk and responsibilities • One of the key pillars of work within the remit of Barclays' Human Rights Programme focuses on the assessment of human rights risk across the broader Barclays Group, beyond the corporate and investment banking portfolios. Work has already been | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 91 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information undertaken to upskill relevant colleagues across Barclays in human rights risk assessment with the aim of initiating further assessments in 2025 • Barclays' Human Rights Programme also aims to consider the way in which human rights risks are managed across Barclays through our frameworks, policies, and controls. This core pillar of work focuses on continuing to evolve and, where appropriate, enhance the way Barclays' approach to human rights risk management is embedded across the organisation Barclays has not taken specific action to provide or enable remedy in the event of material negative impacts on affected communities in the downstream value chain during the reporting period. However, please see detail on our approach to remedy in the Policies section starting on page [82](#ia16d0659cd524c01ae655d82fa382c3d_7012). Barclays does not currently have an adopted process to track the effectiveness of these actions. Please see further detail in the Targets sections on page [91](#ia16d0659cd524c01ae655d82fa382c3d_7045). Barclays does not currently have a specific process for identifying what action is needed in response to particular impacts on affected communities. However, in the absence of a specific process, one of the key pillars of work within the remit of Barclays' Human Rights Programme (described above) focuses on the assessment of human rights risk across Barclays, through conducting saliency assessments. Targets Barclays does not currently have specific targets in place relating to reducing managing material negative impacts on affected communities. As part of Barclays, we are working to enhance and further embed our approach to addressing human rights related impacts into our business and risk management processes. While we do annually review our policies, we don’t currently have other formal processes to track the effectiveness of the policies and actions referred to above. Once this work is further advanced, we may consider how best to track the effectiveness of our policies and actions, including the appropriateness of setting targets and/or setting relevant qualitative or quantitative indicators. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 92 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information ### S4: Consumers and End Users ### Cybersecurity The below table describes the impact for the material entity specific sustainability matter, Cybersecurity, related to Customers and End- users, as identified during the DMA process: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Material Impacts | | Value Chain | | | Time Horizon | | | | Description | Type | Upstream | Own Operations | Downstream | Short (> 1year) | Medium (2 -5 years) | Long (>5 years) | | Cybersecurity | | | | | | | | | Barclays could be connected to a negative impact on consumers and end-users in the case of a cybersecurity incident over the short, medium and long term. Cybersecurity incidents have the potential to impact all of our consumers and end-users, such as by exposing sensitive personal information, interrupting Barclays’ online banking services, and delaying transactions which might affect their ability to pay bills or make timely purchases. It is expected that cyber threats will continue (and potentially increase) in the future. | Negative Impact | | | \* | \* | \* | \* | Frameworks, policies and standards are adopted throughout Barclays and applied unless local laws or regulations require otherwise. As such, the strategy, policies, actions and targets below apply to Barclays Bank Group. Strategy A failure in Barclays' adherence to its cybersecurity policies, procedures or controls, employee malfeasance, and human, governance or technological error could compromise Barclays' ability to successfully prevent and defend against cyberattacks. Cybercriminals could target our operations as well as those of our business partners, including our suppliers and financial market intermediaries. A successful cyberattack of any type has the potential to cause material harm to Barclays' consumers and end-users. Cybersecurity incidents have the potential to impact all of our consumers and end-users, such as by exposing sensitive personal information, interrupting Barclays’ online banking services, and delaying transactions, which might affect their ability to pay bills or make timely purchases. Since it is expected that cyber threats will continue (and potentially increase) in the future, the potential impact on consumers and end-users will continue in the short term (one year), medium term (between one and five years) and long term (more than five years). At Barclays, we recognise the importance of safeguarding our customers and end-users from potential cybersecurity incidents. While we strive to prevent cyberattacks, there is always a risk that such incidents could occur. For instance, cyberattacks like Distributed Denial-of- Service (DDoS) attacks could temporarily disrupt our Online Banking services. This might prevent personal banking clients from accessing their accounts, checking balances, transferring funds, or performing other online banking activities. Similarly, our business clients could experience interruptions, such as system lockdowns, which might temporarily halt our ability to process or receive funds. We are committed to minimising these risks and ensuring that all of our consumers and end-users receive the support they need to navigate any potential disruptions. Consumers and end-users could be affected by cyberattacks directed towards our systems or the systems of our third-party service providers and suppliers in our value chain. However, Barclays’ products are not inherently harmful. As a financial institution, it is important for our customers, some of whom could be financially vulnerable, to receive accurate and accessible product- and service- related information. Barclays strives to protect all of our consumers and end-users against cybersecurity incidents, including those who are perceived to be vulnerable. We focus our efforts on technical safeguards to protect our entire consumer and end-user base. For further discussion of these technical safeguards, see subsection ‘Data security’ in section ‘Managing data privacy, security and resilience“ page [118](#ia16d0659cd524c01ae655d82fa382c3d_79). Cybersecurity continues to inform our business model and strategy by remaining a top focus for Barclays. Cybersecurity incidents did not materially impact Barclays' business strategy, results of operations, or financial condition this year. Barclays continues to strengthen its resilience posture and is focused on ensuring that its business model and strategy remain resilient regarding our capacity to address potential cybersecurity-related impacts on consumers and end-users. For more information about how we assess our resilience, including the scenario analysis that we conduct over the short- and medium-term, refer to subsection ‘Operational resilience’ in section ‘Managing data privacy, security and resilience’ page [118](#ia16d0659cd524c01ae655d82fa382c3d_79). Policies Barclays’ Information and Cyber Security Policy provides a holistic framework for managing this potential negative impact on our consumers and end-users. As described in the 'Chief Security Office and Chief Information Security Office' in section ‘Managing data | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 93 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information privacy, security and resilience', page [119](#ice28735aa32748719cf68a1edc501765_128807), our Information and Cyber Security Policy is supported by eleven Standards which define the minimum requirements for cybersecurity matters across Barclays. The Policy helps Barclays to identify, assess and manage our potential negative impact on consumers and end-users. Amongst others, the key objective of the Policy is to manage cybersecurity risks effectively by developing an organisational understanding, implementing safeguards, detecting cybersecurity events, responding to incidents, and ensuring recovery. This comprehensive approach aims to protect systems, people, assets, data, and capabilities, thereby ensuring the delivery of critical services and maintaining resilience against cybersecurity threats. The Information and Cyber Security Policy serves as a roadmap for engaging more specific policies to address any potential impacts. For example, to safeguard against phishing attacks, we apply targeted policies and procedures including simulation exercises and integrated reporting tools. For more information about our specific policies to address different kinds of cyberattacks, refer to subsection ‘Chief Security Office and Chief Information Security Office’ in section ‘Managing data privacy, security and resilience' page [119](#ice28735aa32748719cf68a1edc501765_128807). The scope of the Policy is comprehensive, covering: (i) Barclays PLC, its subsidiaries, and all employees thereof; and (ii) all consultants and managed services workers from third parties. Barclays assesses employee, consultant, and managed services worker compliance with the Information and Cyber Security Policy through a robust monitoring framework. More specifically, Barclays reserves the right to monitor, review, audit, intercept, access, and disclose information processed or stored on Barclays' information and technology assets. This includes activities such as internet browsing, email, telephony, and the use of collaborative tools, whether conducted on Barclays-issued devices or Bring Your Own (BYO) applications. This enables Barclays to detect any unusual behaviour in real time that might contravene the Information and Cyber Security Policy, such as unauthorised access to sensitive data, installation of unapproved software, or attempts to bypass security controls. Regarding accountability, the Group Chief Information Security Officer holds ultimate responsibility for the Policy. Additionally, Barclays ensures that the Information and Cyber Security Policy is accessible on internal Barclays platforms. Successful implementation of the Policy directly increases protection for our consumers and end-users. More specifically, the Policy is designed to equip us and our third-party service providers with processes aimed at decreasing the risk of a successful cyberattack, decrease potential impact to our consumers and end-users, and require us to execute recovery plans to support any consumers and end-users who are affected. The Information and Cyber Security Policy is assessed against the NIST Cybersecurity Framework. This policy is structured around the functions specified in the NIST Cybersecurity Framework and comprises the following five sections: Identify, Protect, Detect, Respond, and Recover. Processes for engaging with consumers and end-users We take a proactive and ongoing approach to engaging with affected consumers and end-users in relation to potential impacts. We have detailed public-facing webpages dedicated to educating consumers and end-users about cybersecurity best practices and avoiding frauds and scams. This includes descriptions of common scams, such as phishing, and how to recognise them, as well as practical advice on how consumers and end-users can protect themselves from fraud (e.g., through creating strong passwords, recognising suspicious emails and messages, and safeguarding personal information). Regular surveys and direct interaction help us to assess the effectiveness of our engagement, by providing the opportunity for consumers and end-users to share any concerns with us directly. Such engagement helps us to understand the needs of our consumers and end-users, including in relation to cybersecurity. Depending on the feedback that Barclays receives, we may work to raise greater awareness of cyber threats and further strengthen our defences, if this would better protect our consumers and end-users. Cyber threats have the potential to impact all of our consumers and end-users, and it is important to Barclays to apply equal efforts to protect them all. Barclays engages across our consumer and end-user base. The function and most senior role at Barclays responsible for ensuring that this engagement happens, and that the engagement results inform our approach, is our Group Chief Information Security Officer. Remediation and channels to raise concerns If a cybersecurity incident occurs that negatively impacts our consumers and end-users, we tailor our approach to and processes for providing or contributing to a remedy to the incident at hand. Naturally, different cybersecurity incidents demand different responses to protect our consumers and end-users. If a data breach were to occur, for example, we would offer tailored support to safeguard their data and information. For more information about our recovery plans and business response plans for different kinds of disruption events, refer to subsection ‘Operational resilience’ in section ‘Managing data privacy, security and resilience’ page [118](#ice28735aa32748719cf68a1edc501765_128800). Further, our Information and Cyber Security Policy helps us to remediate any impacts on consumers and end-users. The Policy equips us and our third-party service providers to take action and contain the impacts of cybersecurity incidents, and then restore and improve the resilience of our systems, so our consumers and end-users can continue using them with confidence. Applicable across Barclays and to all our third-party service providers, the Policy provides the framework for ensuring that remedies are available to all consumers and end-users who need them. Consumers and end-users can raise any concerns or needs they might have relating to cybersecurity directly with Barclays through our general customer and client complaints procedures. This channel is established by Barclays and, as a result, we need not rely on any business relationships to support its availability. Through this mechanism, we track and monitor issues raised by consumers and end-users in relation to cybersecurity, as well as gain an understanding of whether consumers and end-users deem any cyber-security-related remedies effective. More generally, as we describe in section ‘Engaging with customers and clients’ above, we analyse their complaints to | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 94 | ## Schedule to the Directors' Report: Sustainability Statement ## Social Information gain a better understanding of their evolving needs, so that we can adapt our products and services accordingly, and, in turn, ensure that our remedies are effective. Feedback received from consumers and end-users also helps Barclays to assess whether they are aware of and trust these processes as providing effective means to raise their concerns and needs and have them addressed. Consumers and end-users are highly unlikely to experience any form of retaliation when raising concerns about cybersecurity. To the contrary, Barclays is driven to support them and address their concerns as soon as possible. Barclays has policies and standards in place that explain how we aim to act in good faith towards consumers and end-users by treating them fairly and responsibly, avoid causing foreseeable harm, and handle complaints correctly and in a manner that complies with laws and regulatory requirements. Actions Barclays takes a variety of actions to help prevent and mitigate any cybersecurity-related potential negative impact on consumers and end- users. Key actions, which were each undertaken throughout FY24, include but are not limited to: •monitoring of residual risk, identification of gaps, and oversight of remedial actions; •updating the Barclays PLC Board Risk Committee and Barclays PLC Board about cybersecurity risks facing Barclays; •engaging with external security consultants; •conducting assurance over our third and fourth parties; •performing phishing exercises; and •requiring annual cybersecurity training. For information about how Barclays identifies what actions are needed and appropriate to manage our potential impact, as well as further description of our actions, refer to 'Chief Security Office and Chief Information Security Office’ and ‘Training’ in section ‘Managing data privacy, security and resilience’ pages [119](#ice28735aa32748719cf68a1edc501765_128807) and [120](#ice28735aa32748719cf68a1edc501765_128808), respectively. Cyberattacks are a global threat. Consequently, Barclays performs these key actions throughout our global operations. Further, cyberattacks can originate from a wide variety of sources, from our third-party service providers and other suppliers to our counterparties, employees, contractors, customers and clients, presenting Barclays with a vast and complex defence perimeter. Consequently, the scope of our actions extend across our upstream and downstream value chain. Barclays’ actions are designed to protect our entire consumer and end-user base. Barclays expects these actions to help us to manage cybersecurity risks effectively and, in so doing, support the achievement of the key objectives of our Information and Cyber Security Policy described in the ‘Policies’ section above. These key actions are ongoing, and Barclays plans to continue with them in the future. As such, they do not have a fixed end date when Barclays plans to complete them. Nevertheless, regular assessments and updates will be conducted to ensure that our actions remain effective and aligned with evolving cybersecurity threats. With respect to expected outcomes, we expect our actions to reduce the likelihood of cybersecurity incidents affecting our consumers and end-users. We track and assess the effectiveness of our actions and initiatives by, among other things, routinely testing our recovery plans, conducting regular assurance on our business partners to assess their capability, and engaging external security consultants to conduct independent benchmarking assessments. For more information about how we track the effectiveness of our actions, refer to the subsection ‘Cyberattacks’ in section ‘Material existing and emerging risks’ page [134](#ia16d0659cd524c01ae655d82fa382c3d_136). Barclays takes various actions to avoid contributing to this potential negative impact through our own practices. For example, for information about how we keep our consumers and end-users’ data secure, refer to the subsection ‘Data security’ in the section ‘Managing data privacy, security and resilience’ page [118](#ia16d0659cd524c01ae655d82fa382c3d_79). Barclays also works to safeguard the networks, systems, applications and devices within our control against cyber threats. Targets The dynamic and evolving nature of cyber threats makes it difficult to establish fixed, measurable, and time-bound targets. Further, the complexity of the cybersecurity landscape requires a comprehensive approach that involves multiple layers of defence and continuous monitoring. Therefore, setting specific targets may oversimplify the multifaceted nature of cybersecurity efforts, which include prevention, detection, response, and recovery, with each of these components requiring different strategies. Barclays nevertheless tracks the effectiveness of our policies and actions in relation to cybersecurity by assessing them against the industry- recognised National Institute of Standards and Technology (NIST) security maturity framework. Rather than setting a specific, defined level of ambition, Barclays aims for its cybersecurity efforts to be as effective as possible, continuously striving to enhance its security posture and adapt to emerging threats. To achieve this, Barclays uses a combination of qualitative and quantitative measures to assess progress. These include the number of detected and mitigated threats, the time taken to resolve incidents, and the results of regular internal and external audits. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 95 | ## Schedule to the Directors' Report: Sustainability Statement ## Governance Information #### Contents | | | | | --- | --- | --- | | | | | | ESRS Standard | Sections | Page | | Entity Specific | Data Privacy | [95](#ia16d0659cd524c01ae655d82fa382c3d_7987) | ### Data Privacy The table below describes the impacts in relation to the entity specific sustainability matter, Data Privacy, which was identified during the DMA process | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Material Impact | | Value Chain | | | Time Horizon | | | | Description | Type | Upstream | Own Operations | Downstream | Short (> 1year) | Medium (2 -5 years) | Long (>5 years) | | Data Privacy- Accurate records | | | | | | | | | Barclays Bank Group as a processor of personal data could have  potential negative impacts over the short, medium and long term in relation to data privacy in our own operations if we fail to maintain accurate records of all activities conducted for Barclays' clients and inadequate safeguarding of this information results in the leakage of sensitive information/data . | Negative Impact | | \* | | \* | \* | \* | | Data Privacy- Right to privacy of consumers and end-users | | | | | | | | | Barclays Bank Group as a processor of personal data could have a potential negative impact over the short, medium and long term in relation to the data privacy of consumers and end-users if we mishandle their data  when using, collecting or storing personal data. Mishandling of this data may infringe their rights to privacy, including their protection from censorship and surveillance. | Negative Impact | | | \* | \* | \* | \* | Strategy Barclays relies on the ability to process Personal Data in order to provide and deliver products and services to customers and clients. Barclays Businesses process Personal Data in many different ways on a daily basis – whether that is speaking to an existing customer about a query they have on their account, looking at the CV of someone applying for a job with us, or deciding to whom a marketing communication will be sent, all these rely on our ability to process Personal Data. Governments and regulators globally impose strong Data Privacy regimes to balance the competing interests of ensuring individuals’ fundamental rights in respect of their Personal Data are protected, whilst also promoting broader economic and societal growth. Core components of these Data Privacy regimes include ensuring: • clear accountability is in place in organisations processing Personal Data, with roles and responsibilities defined and understood, and the necessary procedures and oversight in place for these to function; • transparency for individuals in relation to the purposes for which their Personal Data is processed, and how this will be achieved and by whom; • providing individuals with rights in relation to their Personal Data, and empowering them to make informed choices about how their Personal Data is processed; • that Personal Data is appropriately protected, including where it is transferred to other jurisdictions, and that where Personal Data Breaches occur, these are identified and managed, with Data Protection Authorities informed, where required; and • the retention and secure disposal of Personal Data, once it is no longer required. Making sure that Barclays acts fairly, ethically and carefully whenever and however it processes Personal Data is not only a matter of compliance with the law, however - it is also critical to developing and maintaining trust with the individuals to whom that Personal Data relates, including Barclays’ customers, clients and employees. The consequences of failing to comply with the requirements of applicable Data Privacy Laws, Rules or Regulations could be extremely serious - both for Barclays, and, in some circumstances, for employees personally. For Barclays, failure to comply may lead to: • Criminal, civil, or regulatory liabilities or penalties, including significant fines; | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 96 | ## Schedule to the Directors' Report: Sustainability Statement ## Governance Information • Serious reputational damage, including adverse regulatory and media comment; • Detriment to our customers, clients, and employees such as but not limited to financial losses/harm, identity theft, discrimination and psychological harm. For employees, failure to comply may lead to: • Personal liability, such as fines and/or imprisonment, under the laws of more than one jurisdiction; • Other measures imposed by regulators, including a ban from working in the financial services industry; • Disciplinary action, up to and including dismissal or termination of engagement. Policy Barclays is committed to looking after all Personal Data it processes - whether that relates to employees, clients, customers or other individuals – in line with the applicable regulatory and legal requirements. Most of the countries where Barclays operates have Data Privacy or Data Protection Laws, Rules or Regulations in place. Whilst the core requirements across these are often common, the fact that these are enacted at a jurisdictional level, and reflect the differing cultural expectations, norms and legal regimes across these jurisdictions, mean that the regulatory landscape for Data Privacy is fragmented. Given the diversity of activity across Barclays which involves the use of Personal Data, and the complexity of the regulatory environment, Barclays’ Businesses need to make complex and finely balanced judgements to ensure that they appropriately handle and protect Personal Data and meet their responsibilities in the course of achieving their business objectives. Barclays takes a global approach to meeting Data Privacy requirements, and has published a Data Privacy Standard. The scope of the current Data Privacy Standard covers: i. Barclays PLC and all its subsidiaries (including any consolidated entity where Barclays has legal or operational control) ii. All employees and workers (as per the definitions below) of any entity within paragraph i. "employees" means permanent employees and fixed term employees of all in scope entities “workers” means contingency workers (also referred to as agency workers) of all in scope entities and secondees from a third party to all in scope entities, irrespective of their location, function, grade or standing. The Data Privacy Standard • Is designed to ensure that Barclays and its employees know how to identify and manage Data Privacy risk • Supports Barclays’ broader Enterprise Risk Management and Compliance Risk Management Frameworks • Sets out what data privacy is and why it matters, how Barclays manages Data Privacy,  the overarching Control Objectives in relation to evaluating, responding to, and monitoring Data Privacy risk (the "what"), as well as providing more detailed minimum Control Requirements designed to achieve these objectives (the "how") • Is owned by the Compliance Risk Horizontal, creating an integrated and consistent framework upon which Barclays is able to monitor and measure Compliance Risk • is monitored through various roles across the businesses, namely the Business’ Senior Management, the Data Privacy Accountable Executive, the Data Privacy Compliance Team led by the Group Data Protection Officer (GDPO), and Business Oversight Compliance (BOC) • Is mandatory and applies across Barclays, to all Barclays’ business dealings globally, and to every employee • Is available to all employees on the Barclays Group Policy Portal intranet website • Is reviewed annually and based on applicable Laws, Rules and Regulations. If local Laws, Rules or Regulations are more stringent than the requirements set out in the Standard, the more stringent requirements must be applied Should be read in conjunction with applicable requirements set out in other Policies and Standards that form part of the Barclays Control Framework, as well as the Barclays Way, which sets out the Purpose and Values that govern Barclays’ way of working across Barclays business globally. Barclays’ approach to the monitoring of Compliance Risk consists of ongoing oversight, through quantitative and qualitative approaches, of key processes, activities, controls and/or associated outputs to identify Compliance risks that may result in non- adherence to relevant Barclays Policies and Standards, Laws, Rules and Regulations, or otherwise which result in poor customer outcomes. Risk Monitoring and Reporting activities are discharged through a suite of tools and processes used manage Compliance Risk across the organisation: this includes the Compliance Risk Dashboard as the tool used by Business Senior Management to manage and oversee the Compliance Risk profile for their Business, and which Business Senior Management are required to report on. Barclays maintains a robust resilience framework focusing on the end-to-end resilience of the business services we provide to customers and clients to, aiming to ensure the governance of data privacy risk  during business disruptions, crises, adverse events and other types of threats. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 97 | ## Schedule to the Directors' Report: Sustainability Statement ## Governance Information Actions In 2024, Barclays has maintained focus on new and heightened inherent Compliance Risks, including those relating to the evolving landscape as it relates to ensuring customer and client data is handled appropriately, and in accordance with applicable laws, rules and regulations. These risks continue to be monitored on an ongoing basis. The following key actions are planned for the future: • A new Data Privacy Policy and associated Standards are to be published, the Data Privacy Governance and Oversight Standard and the Data Privacy Management Standard, which will be effective from June 2025, to ensure that Barclays takes a global approach to meeting Data Privacy requirements, and help us to address the Risk that personal data could be handled in a way that might not meet Data Privacy law rules and regulations or an individual’s rights and expectations. • Enforcement of the Data Privacy Policy and its associated Standards, the Data Privacy Governance and Oversight Standard and the Data Privacy Management Standard; • An implementation phase will be effective until 31 May 2025 in order to action and complete any remediation activity needed to meet the Control Requirements detailed in the Data Privacy Governance and Oversight Standard and the Data Privacy Management Standard; and • A Groupwide readiness program against the new Data Privacy Policy and its associated Standards, Data Privacy Governance and Oversight Standard and the Data Privacy Management Standard will take place from June 2025. The expected outcomes of these actions are to have: • Clear accountability in place in entities which process Personal Data, with roles and responsibilities defined and understood, and the necessary procedures and oversight in place for these to function; • Transparency for individuals in relation to the purposes for which their Personal Data is processed, and how this will be achieved and by whom; • Provided individuals with rights in relation to their Personal Data, and empowered them to make informed  choices about how their Personal Data is processed; • Personal Data appropriately protected, including where it is transferred to other jurisdictions, and where Personal Data Breaches occur, these are identified and managed, with Data Protection Authorities informed, where required; • The retention and secure disposal of Personal Data, once it is no longer required; • Personal Data must be gathered fairly and transparently by providing individuals with appropriate information as to how their Personal Data will be Processed, including the rights they have in relation to their Personal Data; • We take appropriate measures to protect Personal Data; • Appropriate measures to protect the confidentiality, integrity and availability of Personal Data must be defined, implemented and overseen; and • Individuals must be able to exercise their rights in relation to their Personal Data. The timeframe for intended completion of this action is June 1 2025 (effective date of new Policy and Standards). Targets With the exception of the existing monitoring of data privacy breaches, targets will not be set and metrics will not be captured for this identified risk. The Compliance Risk Dashboard provides a periodic view of the control environment and risk profile using both qualitative and quantitative measures, which assists in decision making on the management of Compliance risk. Amongst other data points, the Compliance Risk Dashboard contains Compliance Key Indicators (KIs), including a number of KIs which are specific to Data Privacy risk, and which support Barclays’ Businesses in the identification and ongoing management of Data Privacy risk. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 98 | ## Schedule to the Directors' Report: Sustainability Statement EU ## Taxonom y These disclosures are incorporated by reference into the ‘Environmental information’ of our Sustainability Statement and form part of our disclosures under the Taxonomy Regulation. Overview In 2020, the EU Taxonomy Regulation1 was published with the objective of establishing a classification system for environmentally sustainable economic activities that plays a role in helping the EU scale up sustainable investment and implement the European Green Deal2. From the financial year ended 31 December 2024, the Barclays Bank Group (the Bank) is required to report under the CSRD, making the EU Taxonomy also applicable. The EU Taxonomy has six environmental objectives, namely: • climate change mitigation; • climate change adaptation; • sustainable use and protection of water and marine resources; • transition to a circular economy; • pollution prevention and control; and • protection and restoration of biodiversity and ecosystems. The EU Taxonomy Regulation defines what can be considered as an environmentally sustainable economic activity. Article 8 of the EU Taxonomy Regulation requires entities subject to the obligation to publish non-financial information pursuant to Article 19a or Article 29a of the Accounting Directive3 as amended from time to time (including by the CSRD4), such as the Bank, to disclose to the public how and to what extent their activities are associated with environmentally sustainable economic activities as defined under the EU Taxonomy Regulation. We have reported “taxonomy-eligibility” and “taxonomy-alignment” based on the reporting by our counterparties within the scope of the CSRD, which in turn is limited to counterparties falling within the scope of the EU Non-Financial Reporting Directive (NFRD) for the financial year ended 31 December 2024. Taxonomy-alignment is assessed at an activity level. The criteria for EU taxonomy-alignment requires the taxonomy-eligible activity to meet all the following requirements: • Substantially contribute to at least one of the Taxonomy’s six environmental objectives; • Do no significant harm to any of the six environmental objectives set out in the EU Taxonomy Regulation; • The company as a whole must meet minimum social safeguards; and • Compliance of the economic activity with the relevant technical screening criteria set out in the Taxonomy delegated acts. The EU Taxonomy Regulation uses the term Green Asset Ratio (‘GAR’), which is calculated as Taxonomy Aligned Assets as a % of Total Covered Assets. Total Covered Assets comprise total assets as defined under IFRS as adopted by the EU, minus trading book assets and minus exposures to central banks, central governments and supranational issuers. (Total covered assets are also referred to as total GAR assets). The GAR is calculated on two bases.  One, referred to as the “Turnover basis”, uses the % of each counterparty’s turnover that they report as  taxonomy-aligned to quantify how much of our loan exposure to that counterparty is taxonomy-aligned. The other, referred to as the “CapEx basis”, uses the % of each counterparty’s CapEx that they report as taxonomy-aligned to quantify how much of our loan exposure to that counterparty is taxonomy-aligned. On a Turnover KPI basis, 0.88% of our exposures are taxonomy-eligible and 0.12% are taxonomy-aligned for the financial year ended 31 December 2024. On a CapEx KPI basis, 1.01% of our exposures are taxonomy-eligible and 0.16% are taxonomy-aligned for the financial year ended 31 December 2024. The primary sectors that contributed to our aligned activities are "Electricity, gas, steam and air conditioning supply", "Manufacturing", "Transport and storage", and "Financial undertakings". The primary differences between our taxonomy-eligible assets and our taxonomy-aligned assets on a Turnover KPI basis comprise: • Residential mortgage exposure (£558m); and • Counterparty exposures that do not meet the all of the four criteria for EU taxonomy-alignment outlined above (£1,553m). From the financial year ended 31 December 2024, as a result of amendments made by the CSRD to Directive (EU) 2004/109/EC (‘Transparency Directive’), Barclays Bank PLC is are required to analyse climate and sustainability KPIs published by certain large EU companies, as well as large non-EU companies whose securities are listed on an EU/EEA regulated market and who have sustainability reporting obligations under national legislation implementing the Transparency Directive (‘Large Issuers'). However, as the majority of the Large Issuers have not yet published their annual reports for the financial year ended 31 December 2024 in which they will be disclosing information on their taxonomy KPIs for the first time, and as our approach is to use published information provided by counterparties to produce our EU Taxonomy disclosures, we have reported nil exposures in respect of these non-EU counterparties in our EU Taxonomy disclosures for financial year ended December 2024. The EU Taxonomy disclosures as at 31 December 2024 are subject to limited assurance as set out on page [114](#ia16d0659cd524c01ae655d82fa382c3d_8789). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 99 | ## Schedule to the Directors' Report: Sustainability Statement EU ## Taxonom y The EU Taxonomy disclosures have been prepared on a ‘best efforts’ basis using corporate disclosures and published financial reports and information from third party data providers (which primarily cover activity in FY23 and not FY24). We have not contacted individual counterparties to obtain data in relation to FY24 reporting due to the challenges of doing so. Our approach is to analyse and calculate taxonomy-eligibility and taxonomy- aligned based on the published Taxonomy KPIs of our counterparties. The EU Taxonomy related disclosures presented in this section have been made on the basis of our understanding of the terms and concepts used under the EU Taxonomy Regulation and its implementing acts (as the case may be, as clarified by the European Commission through additional guidance). As the EU Taxonomy reporting requirements and guidance evolve over the coming years, and as we continue to develop our industry data sourcing methodologies, we will continue to review our disclosure in future periods. In general, as a consumer and wholesale bank that also intermediates financing through listed and wholesale markets, we believe that the EU Taxonomy Regulation does not fully capture the Bank's impact on financing the green transition, and ratios derived from it are also subject to these limitations. We have presented the following templates in the Schedule to the Sustainability Statement on page [380](#i73e641364f5943529d93374ad2be0574_167753) and onwards of the annual report: | | | | | --- | --- | --- | | | | | | Templates | Description | Page | | Green Asset Ratio: | | | | 1. Assets for the calculation of GAR | Taxonomy-eligible loans and taxonomy-aligned loans, analysed by asset class | [380](#i73e641364f5943529d93374ad2be0574_167753) | | 2. GAR sector information | Taxonomy-eligible loans and taxonomy-aligned loans to non-financial undertakings (other than mining and quarrying), analysed by NACE sector | [390](#i73e641364f5943529d93374ad2be0574_167755) | | 3. GAR KPI stock | Taxonomy-eligible loans and taxonomy-aligned loans, analysed by asset class, as a % of CSRD eligible loans, and as a % of total assets | [396](#i73e641364f5943529d93374ad2be0574_167757) | | 4. GAR KPI flow | New taxonomy-eligible loans and new taxonomy-aligned loans as a % of new CSRD eligible loans, analysed by asset class | [403](#i73e641364f5943529d93374ad2be0574_167759) | | 5. KPI off-balance sheet exposures | Taxonomy-eligible financial guarantees and assets under management (‘AUM’) and taxonomy-aligned financial guarantees and AUM, as a % of financial guarantees and AUM that are CSRD eligible | [410](#i73e641364f5943529d93374ad2be0574_167772) | | Nuclear energy and fossil gas: | | | | Nuclear energy and fossil gas related disclosures | Description of nuclear energy and/or fossil gas related activities | [414](#i73e641364f5943529d93374ad2be0574_167776) | | Template 1- Nuclear and fossil gas- related activities | Qualitative disclosure to indicate whether we have exposure to nuclear energy and/or fossil gas related activities | | | • On-Balance Sheet stock | | [415](#ie204934ef42049a89b4b52710c9121be_42088) | | • On-Balance Sheet flow | | [424](#i6f7db0fb2eb042e193765f412a0ec307_32432) | | • Off-Balance Sheet stock | | [433](#i5267f0b130c646959c7a23e204f4c981_31619) | | • Off-Balance Sheet flow | | [442](#i28f9d75de0554b47a657f97f151f0200_31687) | | Template 2 - Taxonomy-aligned economic activities (denominator) | Analysis of ‘Taxonomy-aligned lending’ between nuclear, fossil gas and other activities as a percentage of total covered assets | | | • On-Balance Sheet stock | | [416](#ie204934ef42049a89b4b52710c9121be_42089) | | • On-Balance Sheet flow | | [425](#i6f7db0fb2eb042e193765f412a0ec307_32433) | | • Off-Balance Sheet stock | | [434](#i5267f0b130c646959c7a23e204f4c981_31620) | | • Off-Balance Sheet flow | | [443](#i28f9d75de0554b47a657f97f151f0200_31688) | | Template 3- Taxonomy-aligned economic activities (numerator) | Analysis of ‘Taxonomy-aligned lending’ between nuclear, fossil gas and other activities as a percentage of total aligned assets | | | • On-Balance Sheet stock | | [418](#ie204934ef42049a89b4b52710c9121be_42091) | | • On-Balance Sheet flow | | [427](#i6f7db0fb2eb042e193765f412a0ec307_32435) | | • Off-Balance Sheet stock | | [436](#i5267f0b130c646959c7a23e204f4c981_31622) | | • Off-Balance Sheet flow | | [445](#i28f9d75de0554b47a657f97f151f0200_32675) | | Template 4- Taxonomy-eligible but not Taxonomy-aligned economic activities | Analysis of ‘Taxonomy-eligible but not Taxonomy aligned’ lending between nuclear, fossil gas and other activities as a percentage of total covered assets | | | • On-Balance Sheet stock | | [420](#ie204934ef42049a89b4b52710c9121be_42093) | | • On-Balance Sheet flow | | [429](#i6f7db0fb2eb042e193765f412a0ec307_32437) | | • Off-Balance Sheet stock | | [438](#i5267f0b130c646959c7a23e204f4c981_31624) | | • Off-Balance Sheet flow | | [447](#i28f9d75de0554b47a657f97f151f0200_32676) | | Template 5- Taxonomy non-eligible economic activities | Analysis of ‘Taxonomy non-eligible lending’ between nuclear, fossil gas and other activities as a percentage of total covered assets | | | • On-Balance Sheet stock | | [422](#ie204934ef42049a89b4b52710c9121be_42095) | | • On-Balance Sheet flow | | [431](#i6f7db0fb2eb042e193765f412a0ec307_32439) | | • Off-Balance Sheet stock | | [440](#i5267f0b130c646959c7a23e204f4c981_31626) | | • Off-Balance Sheet flow | | [449](#i28f9d75de0554b47a657f97f151f0200_32677) | These templates present data in relation to Turnover and CapEx KPIs. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 100 | ## Schedule to the Directors' Report: Sustainability Statement EU ## Taxonom y The table below sets out our taxonomy alignment and eligibility of the economic activities in the context of all EU Taxonomy environmental objectives. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Reconciliation of EU Taxonomy KPIs to total assets | FY 2024 Turnover basis | | FY 2024 CapEx basis | | Description | | (£ m) | KPI (% of total covered assets) | (£ m) | KPI (% of total covered assets) | | Taxonomy-aligned activities | 339 | 0.12% | 456 | 0.16% | Economic activities with undertakings subject to CSRD, together with households, that are taxonomy aligned. Numerator of the Green Asset Ratio. | | Taxonomy-eligible but not aligned | 2,111 | | 2,372 | | Economic activities that are taxonomy-eligible but not taxonomy-aligned | | Taxonomy-eligible activities5 | 2,450 | 0.88% | 2,828 | 1.01% | Economic activities with undertakings subject to CSRD, together with households, that have been assessed as taxonomy-eligible. | | Less: Households classified as Taxonomy-eligible | (558) | | (558) | | Economic activities with households that have been assessed as taxonomy-eligible (retail mortgages). | | Taxonomy-eligible activities excluding Households  (1) | 1,892 | 0.68% | 2,270 | 0.81% | Economic activities with undertakings subject to CSRD that have been assessed as taxonomy- eligible, other than households. | | Taxonomy non-eligible activities (2) | 10,149 | 3.63% | 9,771 | 3.49% | Economic activities with undertakings subject to CSRD assessed as non-eligible. | | Exposures to undertakings in scope (1+2) | 12,041 | 4.31% | 12,041 | 4.31% | Covered assets that are exposures to entities subject to CSRD. | | Households classified as Taxonomy-eligible (3) | 558 | | 558 | | Economic activities with households that have been assessed as taxonomy-eligible (retail mortgages). | | GAR - Covered assets in both numerator and denominator (1+2+3) | 12,599 | 4.51% | 12,599 | 4.51% | Covered assets that are exposures to entities subject to CSRD, together with households. | | Exposures to undertakings out of scope 6(4) | 266,993 | 95.49% | 266,993 | 95.49% | Covered assets that are exposures to entities not subject to CSRD | | Total covered assets (1+2+3+4) | 279,592 | 100.00% | 279,592 | 100.00% | Total covered assets are total assets as defined under IFRS as adopted by the EU, less trading book (including trading portfolio assets) and exposures to central banks, central governments and supranational issuers. | | of which Derivatives (Banking book) | 7,583 | 2.71% | 7,583 | 2.71% | Banking Book derivatives (these are part of total covered assets). | | of which On demand interbank exposures | 5,124 | 1.83% | 5,124 | 1.83% | Exposures to on-demand interbank loans. | | | (£ m) | KPI (% of total assets) | (£ m) | KPI (% of total assets) | Description | | Exposures to central banks, central governments and supranational | 263,546 | 21.57% | 263,546 | 21.57% | Exposures to central banks, central governments and supranational issuers, not included in covered assets. | | Trading book | 678,851 | 55.55% | 678,851 | 55.55% | Trading book exposures, not included in covered assets. | | Total assets not included in GAR calculation | 942,397 | 77.12% | 942,397 | 77.12% | Assets not included in denominator for the calculation of the GAR. | | Total covered assets (as above) | 279,592 | 22.88% | 279,592 | 22.88% | | | Total assets (Gross of impairment) | 1,221,989 | 100.00% | 1,221,989 | 100.00% | IFRS total assets, together with Impairment deducted in the calculation of total assets. | | Impairment | (3,465) | | (3,465) | | Includes Impairment on Loans and Advances, Debt Securities and Cash Collateral. Excludes impairment on reverse repurchase agreements and other similar secured lending. | | Total assets | 1,218,524 | | 1,218,524 | | Total assets as per IFRS balance sheet. | | Taxonomy aligned activities (as above) | 339 | 0.03% | 456 | 0.04% | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 101 | ## Schedule to the Directors' Report: Sustainability Statement EU ## Taxonom y Notes: 1.The EU Taxonomy Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment. 2.. Please note that the information on this website does not form part of our report. 3.Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, as amended from time to time. 4.Directive 2022/2064 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/ EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting. 5.Taxonomy eligible activities comprise of certain wholesale lending, cash collateral, financial assets at fair value through other comprehensive income (‘FVOCI’)  and financial assets at fair value through profit and loss (‘FVTPL’) in banking book which are subject to the CSRD. Collateralized home loans are also included in the calculation for taxonomy-eligibility however are not included in the calculation for taxonomy-alignment. The remainder of loans and advances to customers relates to unsecured loans and other retail lending which are not taxonomy eligible, and are excluded from the calculation of taxonomy-eligible activities. 6.Exposures to undertakings out of scope for CSRD comprises of non-CSRD exposures of £265,045m and exposures for which we have not yet able to identify based on available information if the exposure is in the scope of the CSRD of £1,948m. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 102 | ## Schedule to the Directors' Report: Sustainability Statement EU ## Taxonom y In line with the Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of the EU Taxonomy Regulation on the reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets (C/2024/6691) (“Third Commission Notice”) dated 8 November 2024, the taxonomy-aligned lending is calculated as the % of taxonomy-aligned Turnover and CapEx reported by each counterparty, applied to our loan exposure to each counterparty.  Consequently, the proportion of counterparties in a bank’s banking book that are subject to the CSRD is a key determinant of the resulting GAR. Summary of KPIs to be disclosed by credit institutions under Article 8 of the EU Taxonomy Regulation | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2024 | | Total environmentally sustainable assets (£ m) 1 | Turnover KPI (%) 2 | CapEx KPI (%) 3 | % coverage (over total assets) 4 | % of assets excluded from the numerator of the GAR 5 | % of assets excluded from the denominator of the GAR 6 | | Main KPI | Green asset ratio (GAR) stock | 339 | 0.12% | 0.16% | 0.03% | 21.85% | 77.12% | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2024 | | Total environmentally sustainable activities (£ m) 1 | Turnover KPI (%) 2 | CapEx KPI (%) 3 | % coverage (over total assets) 4 | % of assets excluded from the numerator of the GAR 5 | % of assets excluded from the denominator of the GAR 6 | | Additional KPIs | GAR (flow) | 42 | 0.07% | 0.12% | 0.04% | 52.69% | 46.04% | | | Trading book 7 | N/A | N/A | N/A | | | | | | Financial guarantees | 106 | 11.98% | 27.34% | | | | | | Assets under management 8 | 269 | 7.83% | 15.25% | | | | | | Fees and commissions income 7 | N/A | N/A | N/A | | | | Notes: 1 Total environmental sustainable assets/activities representing the Taxonomy aligned activities based on the Turnover KPI. 2 Based on Turnover KPI of the counter-parties. It is calculated as the percentage of Taxonomy aligned exposures over total GAR assets. 3 Based on CapEx KPI of the counter-parties. It is calculated as the percentage of Taxonomy aligned exposures over total GAR assets. Total environmental sustainable assets based on CapEx KPI amounts to £456m for GAR stock and £70m for GAR flow. 4 Percentage of  assets covered by the taxonomy aligned exposures based on Turnover KPI over our total assets. 5 Percentage of banking book exposures that are not eligible for Taxonomy screening (i.e. exposures that only form part of the denominator for the GAR calculation) over our total assets, as described in Article 7(2) and (3) and Section 1.1.2. of Annex V of Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the content and presentation of information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EY concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation ('Disclosures Delegated Act'). 6 Percentage of assets not covered for the GAR calculation (i.e. central banks, central governments and Supranational issuers and trading book exposures) over our total assets, as described in Article 7(1) and Section 1.2.4 of Annex V of the Disclosures Delegated Act. 7 Trading book and fees and commission KPIs are applicable from 1 January 2026, therefore these cells are not applicable (N/A). 8 Assets under management for financial corporations were not assessed for taxonomy eligibility and alignment to avoid double counting, in line with the Third Commission Notice published on 8 November 2024. 9 Cells shaded in grey should not be reported, as laid down in Note 1 to the Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation in Annex VI of Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 103 | ## Schedule to the Directors' Report: Sustainability Statement EU ## Taxonom y Business Strategy Barclays Bank PLC supports the objectives of the Taxonomy Regulation. Addressing climate change is an urgent and complex challenge but also an opportunity. It requires a fundamental transformation of the global economy. The financial sector has an important role to play in supporting the transition to a low-carbon economy. Barclays Bank PLC sustainability strategy and goals are set out on page [41](#i1dfae2edc857471e910f5e465160e984_199685) of this report. As the requirements of the EU Taxonomy are still being phased in and because data from non-financial corporates on taxonomy-aligned activities is very limited at the moment, Barclays Bank PLC is not in a position to fully utilise taxonomy alignment in product design and processes, or engagement with counterparties. However, the Bank is considering how to incorporate it into its ESG frameworks, as detailed below. Within Global Markets, Barclays Group has developed an ESG framework for the governance, product construction and suitability assessment of our current and future ESG product suite. In line with the Sustainable Financing Disclosure Regulation1 and Markets in Financial Instruments Directive in Europe (‘MiFID’) ESG regulations2, we have defined a set of principles for an ESG Index utilised on our structured products, derivative and investment solutions businesses which broadly aligns with principles of the EU Taxonomy. We are also working with clients and partners to create products and services that align to the principles of the EU Taxonomy to address their sustainability preferences in structured products investments where applicable. An overview of the Barclays Group climate strategy can be found on page 60 of Barclays Group PLC Annual Report 2024, and more information, including progress against targets, is set out in the Climate and Sustainability section of the Barclays Group PLC Annual Report 2024. Notes: 1 Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector. 2 Commission Delegated Regulation (EU) 2021/1253 amending Delegated Regulation (EU) 2017/565 as regards the integration of sustainability factors, risks and preferences into certain organisational requirements and operating conditions for investment firms and Commission Delegated Directive (EU) 2021/1269 amending Delegated Directive (EU) 2017/593 as regards the integration of sustainability factors into the product governance obligations. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 104 | ## Schedule to the Directors' Report: Sustainability Statement ## Important Information/ Disclaimers Information provided in climate and sustainability disclosures What is important to our investors and stakeholders evolves over time, and we aim to anticipate and respond to these changes. Disclosure expectations in relation to climate change and sustainability matters are particularly fast moving, and differ from more traditional areas of reporting including in relation to the level of detail and forward-looking nature of the information involved and the consideration of impacts on the environment and other persons.  We have adapted our approach in relation to the disclosure of such matters. Our climate and sustainability disclosures take into account the wider context relevant to these topics, which may include evolving stakeholder views, the development of our climate strategy, longer timeframes for assessing potential risks and impacts, international long-term climate- and nature-based policy goals, evolving sustainability-related policy frameworks (and the harmonisation or interoperability of relevant regulation) and geopolitical developments and regional variations. Our climate and sustainability disclosures are subject to more uncertainty than disclosures relating to other subjects, given market challenges in relation to data reliability, consistency and timeliness – the use of estimates, judgements and assumptions which are likely to change over time, the application and development of data, models, scenarios and methodologies, the change in regulatory landscape, and variations in reporting standards. These factors mean disclosures may be amended, updated, and recalculated in future as market practice and data quality and availability develops, and could cause actual achievements, results, performance or other future events or conditions to differ, in some cases materially, from those stated, implied and/or reflected in any forward-looking statements or metrics included in our climate and sustainability disclosures. We give no assurance as to the likelihood of the achievement or reasonableness of any projections, estimates, forecasts, targets, commitments, ambitions, prospects or returns contained in our climate and sustainability disclosures and make no commitment to revise or update any such disclosures to reflect events or circumstances occurring or existing after the date of such statements. Disclaimers In preparing the climate and sustainability content within the Barclays Bank PLC Annual Report wherever it appears, we have: • Made certain key judgements, estimations and assumptions. This is, for example, the case in relation to financed emissions, portfolio alignment, classification of environmental and social financing, operational emissions and sustainability metrics, measurement of climate risk and scenario analysis • Used climate and sustainability data, models, scenarios and methodologies we consider to be appropriate and suitable for these purposes as at the date on which they were deployed. This includes data, models, scenarios and methodologies made available by third parties (over which we have no control) and which may have been prepared using a range of different methodologies, or where the basis of preparation may not be known to us. Methodologies, interpretations or assumptions may not be capable of being independently verified and may therefore be inaccurate. Climate and sustainability data, models, scenarios and methodologies are subject to future risks and uncertainties and may change over time. Climate and sustainability disclosures in this document, including climate and sustainability-related data, models and methodologies, are not of the same standard as those available in the context of other financial information and use a greater number and level of judgements, assumptions and estimates, including with respect to the classification of climate and sustainable financing activities. Climate and sustainability disclosures are also not subject to the same or equivalent disclosure standards, historical reference points, benchmarks or globally accepted accounting principles. Historical data cannot be relied on as a strong indicator of future trajectories in the case of climate change and its evolution. Outputs of models, processed data, scenario analysis and the application of methodologies will also be affected by underlying data quality, which can be hard to assess, or challenges in accessing data on a timely basis • Continued (and will continue) to review and develop our approach to data, models, scenarios and methodologies in line with market principles and standards as this subject area matures. The data, models, scenarios and methodologies used (including those made available by third parties) and the judgements, estimates and/or assumptions made in them or by us are rapidly evolving, including scientific evidence relating to climate change and scenarios outlining pathways to net zero, and this may directly or indirectly affect the metrics, data points, targets, convergence points and milestones contained in the climate and sustainability content within the Barclays Bank PLC Annual Report. Further, changes in external factors which are outside of our control such as accounting and/or reporting standards, improvements in data quality, data availability, or updates to methodologies and models and/or updates or restatements of data by third parties, could impact – potentially materially – the performance metrics, data points, targets, convergence points and milestones contained in the climate and sustainability content within the Barclays Bank PLC Annual Report. In future reports we may present some or all of the information for this reporting period (including information made available by third parties) using updated or more granular data or improved models, scenarios methodologies, market practices or standards. Equally, we may need to re-baseline, restate, revise, recalculate or recalibrate performance against targets, convergence points or milestones on the basis of such updated data. Such updated information may result in different outcomes than those included in the Barclays Bank PLC Annual Report. It is important for readers and users of the Annual Report to be aware that direct, like-for-like comparisons of each piece of information disclosed may not always be possible from one reporting period to another. • Included in the Barclays Bank PLC Annual Report are a number of graphics, infographics, text boxes and illustrative case studies and credentials which aim to give a high-level overview of certain elements of the climate and sustainability content within the Barclays Bank PLC Annual Report and improve accessibility for readers. These graphics, infographics, text boxes and illustrative case studies and credentials are designed to be read within the context of the Barclays Bank PLC Annual Report as a whole. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 105 | ## Schedule to the Directors' Report: Sustainability Statement ## Further Information List of Disclosure Requirements  complied with in our Sustainability Statement Note: \*denotes that some or all of the disclosure requirement has been incorporated by reference into the sustainability statement. Additionally, information relating to the entity specific matter, cybersecurity, has also been incorporated by reference. Please see the relevant disclosure for further details on where the information can be found. | | | | | --- | --- | --- | | | | | | Ref | Disclosure Requirements: | Page | | BP-1 | General basis for preparation of the sustainability statement | [36](#ia16d0659cd524c01ae655d82fa382c3d_7615) | | BP-2 | Disclosures in relation to specific circumstances | [36](#ia16d0659cd524c01ae655d82fa382c3d_7615) | | GOV-1 | The role of the administrative, management and supervisory bodies\* | [37](#ia16d0659cd524c01ae655d82fa382c3d_15159) | | G1.GOV-1 | The role of the administrative, management and supervisory bodies\* | [37](#ia16d0659cd524c01ae655d82fa382c3d_15159) | | GOV-2 | Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies\* | [37](#ia16d0659cd524c01ae655d82fa382c3d_15159) | | GOV-3 | Integration of sustainability-related performance in incentive schemes | [37](#ia16d0659cd524c01ae655d82fa382c3d_8805) | | E1.GOV-3 | Integration of sustainability-related performance in incentive schemes | [37](#ia16d0659cd524c01ae655d82fa382c3d_8805) | | GOV-4 | Statement on due diligence | [38](#ia16d0659cd524c01ae655d82fa382c3d_7487) | | GOV-5 | Risk management and internal controls over sustainability reporting | [39](#ia16d0659cd524c01ae655d82fa382c3d_7448) | | SBM-1 | Strategy, business model and value chain | [40](#ia16d0659cd524c01ae655d82fa382c3d_6632) | | SBM-2 | Interests and views of stakeholders | [42](#ia16d0659cd524c01ae655d82fa382c3d_7526) | | SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model(s) | [47](#ia16d0659cd524c01ae655d82fa382c3d_7537) | | E1.SBM-3 | Environmental | [49](#ia16d0659cd524c01ae655d82fa382c3d_6696) | | S1.SBM-3 | Own Workforce | [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) | | S2.SBM-3 | Workers in the Value Chain | [80](#ia16d0659cd524c01ae655d82fa382c3d_6961) | | S3.SBM-3 | Affected Communities | [86](#ia16d0659cd524c01ae655d82fa382c3d_7165) | | S4.SBM-3 | Consumers and End Users | [92](#ia16d0659cd524c01ae655d82fa382c3d_7111) | | IRO-1 | Description of the process to identify and assess material impacts, risks and opportunities | [44](#ia16d0659cd524c01ae655d82fa382c3d_7550) | | IRO-2 | Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement | [105](#ia16d0659cd524c01ae655d82fa382c3d_8850) | | E1-1 | Transition plan for climate change mitigation | [49](#ia16d0659cd524c01ae655d82fa382c3d_6696) | | E1-2 | Policies related to climate change mitigation and adaptation | [50](#ia16d0659cd524c01ae655d82fa382c3d_6707) | | E1-3 | Actions and resources in relation to climate change policies | [54](#ia16d0659cd524c01ae655d82fa382c3d_6718) | | E1-4 | Targets related to climate change mitigation and adaptation | [56](#ia16d0659cd524c01ae655d82fa382c3d_6729) | | E1-6 | Gross Scopes 1, 2, 3 and Total GHG emissions | [57](#ia16d0659cd524c01ae655d82fa382c3d_6740) | | E1-8 | Internal carbon pricing | [57](#ia16d0659cd524c01ae655d82fa382c3d_6740) | | E1.IRO-1 | Description of the process to identify and assess material impacts, risks and opportunities | [44](#ia16d0659cd524c01ae655d82fa382c3d_7550) | | E4-1 | Transition plan and consideration of biodiversity and ecosystems in strategy and business model | [59](#ia16d0659cd524c01ae655d82fa382c3d_6788) | | E4-2 | Policies related to biodiversity and ecosystems | [60](#ia16d0659cd524c01ae655d82fa382c3d_13103) | | E4-3 | Actions and resources related to biodiversity and ecosystems | [61](#ia16d0659cd524c01ae655d82fa382c3d_9015) | | E4-4 | Targets related to biodiversity and ecosystems | [62](#ia16d0659cd524c01ae655d82fa382c3d_9000) | | E4.IRO-1 | Description of the process to identify and assess material impacts, risks and opportunities | [44](#ia16d0659cd524c01ae655d82fa382c3d_7550) | | S1-1 | Policies related to own workforce | [67](#ia16d0659cd524c01ae655d82fa382c3d_9297), [69](#ia16d0659cd524c01ae655d82fa382c3d_9245) | | S1-2 | Processes for engaging with own workers and workers’ representatives about impacts | [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) | | S1-3 | Processes to remediate negative impacts and channels for own workers to raise\* | [80](#iec22503d4ac646b4bc0050303587336e_198446) | | S1-4 | Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions | [68](#ia16d0659cd524c01ae655d82fa382c3d_9166), [70](#ia16d0659cd524c01ae655d82fa382c3d_9240), [74](#ia16d0659cd524c01ae655d82fa382c3d_10992) | | S1-5 | Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | [68](#ia16d0659cd524c01ae655d82fa382c3d_9186) , [69](#ia16d0659cd524c01ae655d82fa382c3d_9191), [72](#ia16d0659cd524c01ae655d82fa382c3d_9235) , [74](#ia16d0659cd524c01ae655d82fa382c3d_10985), [77](#ia16d0659cd524c01ae655d82fa382c3d_9206), [79](#ia16d0659cd524c01ae655d82fa382c3d_9310) | | S1-6 | Characteristics of the undertaking’s employees | [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) | | S1-16 | Remuneration metrics (pay gap and total remuneration) | [77](#i5e83e604bf2a4efb94ceace0eb87d456_60907) | | S2-1 | Policies related to value chain workers | [82](#ia16d0659cd524c01ae655d82fa382c3d_7012) | | S2-2 | Processes for engaging with value chain workers about impacts | [80](#ia16d0659cd524c01ae655d82fa382c3d_6961) | | S2-3 | Processes to remediate negative impacts and channels for value chain workers to raise concerns | [80](#ia16d0659cd524c01ae655d82fa382c3d_6961) | | S2-4 | Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions | [84](#ia16d0659cd524c01ae655d82fa382c3d_7001) | | S2-5 | Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | [85](#ia16d0659cd524c01ae655d82fa382c3d_6990) | | S3-1 | Policies related to affected communities | [86](#ia16d0659cd524c01ae655d82fa382c3d_16560) | | S3-2 | Processes for engaging with affected communities about impacts | [86](#ia16d0659cd524c01ae655d82fa382c3d_16560) | | S3-3 | Processes to remediate negative impacts and channels for affected communities to raise concerns | [86](#ia16d0659cd524c01ae655d82fa382c3d_16560) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 106 | ## Schedule to the Directors' Report: Sustainability Statement ## Further Information | | | | | --- | --- | --- | | | | | | Ref | Disclosure Requirements: | Page | | S3-4 | Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions | [88](#ia16d0659cd524c01ae655d82fa382c3d_7122) | | S3-5 | Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | [91](#ia16d0659cd524c01ae655d82fa382c3d_7045) | List of datapoints in cross-cutting and topical standards that derive from other E U legislation: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR Reference | Pillar 3 Reference | Benchmark Regulation Reference | EU Climate Law Reference | Comments and location | | • ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d) | Indicator number 13 of Table #1 of Annex 1 | | Commission Delegated Regulation (EU) 2020/1816, Annex II | | See page [23](#i29c2b780fba64e579b29661f9a58f3e6_265279) | | • ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e | | | Delegated Regulation (EU) 2020/1816, Annex II | | See page [21](#i29c2b780fba64e579b29661f9a58f3e6_265277) | | • ESRS 2 GOV-4 Statement on due diligence paragraph 30 | Indicator number 10 Table #3 of Annex 1 | | | | See page [38](#ia16d0659cd524c01ae655d82fa382c3d_7487) | | • ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i | Indicators number 4 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453.Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk | Delegated Regulation (EU) 2020/1816, Annex II | | Material- Data point not applicable | | • ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii | Indicator number 9 Table #2 of Annex 1 | | Delegated Regulation (EU) 2020/1816, Annex II | | Material- Data point not applicable | | • ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii | Indicator number 14 Table #1 of Annex 1 | | Delegated Regulation (EU) 2020/181829, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II | | Material- Data point not applicable | | • ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv | | | Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II | | Material- Data point not applicable | | • ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 | | | | Regulation (EU) 2021/1119, Article 2(1) | See page [49](#ia16d0659cd524c01ae655d82fa382c3d_6696) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 107 | Schedule to the Directors' Report: Sustainability Statement Further Information | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR Reference | Pillar 3 Reference | Benchmark Regulation Reference | EU Climate Law Reference | Comments and location | | • ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) | | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book- Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2 | | No adopted Transition Plan, please see page [49](#ia16d0659cd524c01ae655d82fa382c3d_6696) for further detail | | • ESRS E1-4 GHG emission reduction targets paragraph 34 | Indicator number 4 Table #2 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 6 | | No targets set, please see page [56](#ia16d0659cd524c01ae655d82fa382c3d_6729) for further detail | | • ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 | Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 | | | | Not Material | | • ESRS E1-5 Energy consumption and mix paragraph 37 | Indicator number 5 Table #1 of Annex 1 | | | | Not Material | | • ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 | Indicator number 6 Table #1 of Annex 1 | | | | Not Material | | • ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 | Indicators number 1 and 2 Table #1 of Annex 1 | Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1:Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article 8(1) | | See page [57](#ia16d0659cd524c01ae655d82fa382c3d_6740) | | • ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 | Indicators number 3 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 8(1) | | See page [57](#ia16d0659cd524c01ae655d82fa382c3d_6740) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 108 | Schedule to the Directors' Report: Sustainability Statement Further Information | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR Reference | Pillar 3 Reference | Benchmark Regulation Reference | EU Climate Law Reference | Comments and location | | • ESRS E1-7 GHG removals and carbon credits paragraph 56 | | | | Regulation (EU) 2021/1119, Article 2(1) | Not Material | | • ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 | | | Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II | | Phase In | | • ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). | | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk. | | | Phase In | | • ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy- efficiency classes paragraph 67 (c). | | Article 449a Regulation (EU) No 575/2013;Commissi on Implementing Regulation (EU) 2022/2453 paragraph 34;Template 2:Banking book - Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral | | | Phase In | | • ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 | | | Delegated Regulation (EU) 2020/1818, Annex II | | Phase In | | • ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 | Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 | | | | Not Material | | • ESRS E3-1 Water and marine resources paragraph 9 | Indicator number 7 Table #2 of Annex 1 | | | | Not Material | | • ESRS E3-1 Dedicated policy | Indicator number 8 Table 2 of Annex 1 | | | | Not Material | | • ESRS E3-1 Sustainable oceans and seas paragraph 14 | Indicator number 12 Table #2 of Annex 1 | | | | Not Material | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 109 | Schedule to the Directors' Report: Sustainability Statement Further Information | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR Reference | Pillar 3 Reference | Benchmark Regulation Reference | EU Climate Law Reference | Comments and location | | • ESRS E3-4 Total water recycled and reused paragraph 28 (c) | Indicator number 6.2 Table #2 of Annex 1 | | | | Not Material | | • ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29 | Indicator number 6.1 Table #2 of Annex 1 | | | | Not Material | | • ESRS 2- IRO 1 - E4 paragraph 16 (a) i | Indicator number 7 Table #1 of Annex 1 | | | | See page [44](#ia16d0659cd524c01ae655d82fa382c3d_7550) | | • ESRS 2- IRO 1 - E4 paragraph 16 (b) | Indicator number 10 Table #2 of Annex 1 | | | | See page [44](#ia16d0659cd524c01ae655d82fa382c3d_7550) | | • ESRS 2- IRO 1 - E4 paragraph 16(c) | Indicator number 14 Table #2 of Annex 1 | | | | See page [44](#ia16d0659cd524c01ae655d82fa382c3d_7550) | | • ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) | Indicator number 11 Table #2 of Annex 1 | | | | See page [60](#ia16d0659cd524c01ae655d82fa382c3d_13103) | | • ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) | Indicator number 12 Table #2 of Annex 1 | | | | See page [60](#ia16d0659cd524c01ae655d82fa382c3d_13103) | | • ESRS E4-2 Policies to address deforestation paragraph 24 (d) | Indicator number 15 Table #2 of Annex 1 | | | | See page [60](#ia16d0659cd524c01ae655d82fa382c3d_13103) | | • ESRS E5-5 Non- recycled waste paragraph 37 (d) | Indicator number 13 Table #2 of Annex 1 | | | | Not Material | | • ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 | Indicator number 9 Table #1 of Annex 1 | | | | Not Material | | • ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f) | Indicator number 13 Table #3 of Annex I | | | | Not Material | | • ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g) | Indicator number 12 Table #3 of Annex I | | | | Not Material | | • ESRS S1-1 Human rights policy commitments paragraph 20 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I | | | | See page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) | | • ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 | | | Delegated Regulation (EU) 2020/1816, Annex II | | See page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) | | • ESRS S1-1 processes and measures for preventing trafficking in human beings | Indicator number 11 Table #3 of Annex I | | | | Not Material | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 110 | Schedule to the Directors' Report: Sustainability Statement Further Information | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR Reference | Pillar 3 Reference | Benchmark Regulation Reference | EU Climate Law Reference | Comments and location | | • ESRS S1-1 workplace accident prevention policy or management system paragraph 23 | Indicator number 1 Table #3 of Annex I | | | | Not Material | | • ESRS S1-3 grievance/ complaints handling mechanisms paragraph 32(c) | Indicator number 5 Table #3 of Annex I | | | | See page [65](#ia16d0659cd524c01ae655d82fa382c3d_6889) | | • ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) | Indicator number 2 Table #3 of Annex I | | Delegated Regulation (EU) 2020/1816, Annex II | | Not Material | | • ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) | Indicator number 3 Table #3 of Annex I | | | | Not Material | | • ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) | Indicator number 12 Table #1 of Annex I | | Delegated Regulation (EU) 2020/1816, Annex II | | See page [77](#i5e83e604bf2a4efb94ceace0eb87d456_60907) | | • ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) | Indicator number 8 Table #3 of Annex I | | | | Not Material | | • ESRS S1-17 Incidents of discrimination paragraph 103 (a) | Indicator number 7 Table #3 of Annex I | | | | Not Material | | • ESRS S1-17 Non- respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a) | Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I | | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) | | Not Material | | • ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) | Indicators number 12 and n. 13 Table #3 of Annex I | | | | See page [82](#ia16d0659cd524c01ae655d82fa382c3d_7012) | | • ESRS S2-1 Human rights policy commitments paragraph 17 | Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 | | | | See page [82](#ia16d0659cd524c01ae655d82fa382c3d_7012) | | • ESRS S2-1 Policies related to value chain workers paragraph 18 | Indicator number 11 and n. 4 Table #3 of Annex 1 | | | | See page [82](#ia16d0659cd524c01ae655d82fa382c3d_7012) | | • ESRS S2-1Non- respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 | Indicator number 10 Table #1 of Annex 1 | | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12(1) | | See page [82](#ia16d0659cd524c01ae655d82fa382c3d_7012) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 111 | Schedule to the Directors' Report: Sustainability Statement Further Information | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR Reference | Pillar 3 Reference | Benchmark Regulation Reference | EU Climate Law Reference | Comments and location | | • ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 | | | Delegated Regulation (EU) 2020/1816, Annex II | | See page [82](#ia16d0659cd524c01ae655d82fa382c3d_7012) | | • ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 | Indicator number 14 Table #3 of Annex 1 | | | | See page [84](#ia16d0659cd524c01ae655d82fa382c3d_7001) | | • ESRS S3-1 Human rights policy commitments paragraph 16 | Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 | | | | See page [86](#ia16d0659cd524c01ae655d82fa382c3d_7176) | | • ESRS S3-1 non- respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17 | Indicator number 10 Table #1 Annex 1 | | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) | | Not Material | | • ESRS S3-4 Human rights issues and incidents paragraph 36 | Indicator number 14 Table #3 of Annex 1 | | | | Not Material | | • ESRS S4-1 Policies related to consumers and end-users paragraph 16 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 | | | | See page [92](#ia16d0659cd524c01ae655d82fa382c3d_9489) | | • ESRS S4-1 Non- respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 | Indicator number 10 Table #1 of Annex 1 | | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) | | Not Material | | • ESRS S4-4 Human rights issues and incidents paragraph 35 | Indicator number 14 Table #3 of Annex | | | | Not Material | | • ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) | Indicator number 15 Table #3 of Annex 1 | | | | Not Material | | • ESRS G1-1 Protection of whistle- blowers paragraph 10 (d) | Indicator number 6 Table #3 of Annex 1 | | | | Not Material | | • ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) | Indicator number 17 Table #3 of Annex 1 | | Delegated Regulation (EU) 2020/1816, Annex II) | | Not Material | | • ESRS G1-4 Standards of anti- corruption and anti- bribery paragraph 24 (b) | Indicator number 16 Table #3 of Annex 1 | | | | Not Material | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 112 | Schedule to the Directors' Report: Sustainability Statement Further Information List of Key Definitions as captured in the Barclays Climate Change Statement: | | | | --- | --- | | | | | Term | Definition | | Amazon Biome | Refers to the world’s largest rainforest, covering 6.7 million km2 across nine countries (Brazil, Bolivia, Peru, Ecuador, Colombia, Venezuela, Guyana, French Guiana, Suriname). The boundary of the Amazon Biome is defined by the Amazon Network of Georeferenced Socio-Environmental Information (RAISG) as the area formed by: i. the limits of the Amazon biome in Colombia and Venezuela; ii. the limits of the Amazon basin in Ecuador, Perú and Bolivia; iii. the sum of the limits of the basins (Amazonas and Araguaia/Tocantins) and the limits of the administrative Legal Amazon in Brazil; and iv. the whole continental territories of Guyana, French Guyana and Surinam For further information visit: www3.socioambiental.org/geo/RAISGMapaOnline/ | | Arctic Circle | Refers to the area within the Arctic Circle, which is subject to sea ice, the Arctic National Wildlife Refuge (ANWR) and Coastal Plains. | | Biomass | Refers to energy production from biomass and biogas power plants, which includes the thermal combustion of organic energy sources, including energy crops and woody biomass. | | Captives | In relation to Thermal Coal Power, captives refers to thermal coal power plants used and managed with the primary purpose of providing power to an industrial or commercial energy user, for their own use. In relation to Thermal Coal Power, captives refers to thermal coal-fired power plants used and managed with the primary purpose of providing power to an industrial or commercial energy user, for their own use. In relation to Thermal Coal Mining, captives refers to thermal coal mines dedicated to providing thermal coal for captive thermal coal-fired power plants. | | Client Transition Framework (CTF) | Refers to a tool developed by Barclays designed to support our evaluation of our corporate clients' current and expected future progress as they transition to a low- carbon business model. | | Client(s) | Means in relation to any proposed transaction the client entity (or entities) entering into the transaction. Any restrictions relating to the % revenue generated by such clients from thermal coal activities applies to the consolidated revenues of the entity being financed, whether transacting with a Group parent, subsidiary or joint venture. | | Directly finance or direct financing | Refers to financing where the use of proceeds is known to be for a particular project. | | Energy Group(s) | Groups that have over 20% revenue from upstream oil and gas activities (i.e. exploration, development and production) and/or Groups that are considered to be supermajor or major integrated oil and gas companies. | | Engaged in | In relation to Thermal Coal Power, a client is defined as “engaged in” if it generates more than 5% of its revenue from thermal coal-fired power generation. In relation to Thermal Coal Mining, a client is defined as “engaged in” if it generates more than 5% of its revenue from thermal-coal mining. In relation to Amazon Oil & Gas, a client is defined as “engaged in” if more than 5% of its expenditure (CAPEX and OPEX) are on oil & gas projects in the Amazon Biome. | | Expansion | Refers to any upstream oil and gas projects with a final investment decision (or equivalent) after 31 December 2021. This includes, but is not limited to, exploration, development, and production. | | Extra Heavy Oil | Refers to Crude Oil with an API gravity of less than 15O. | | Finance or financing | Refers to all primary financing activity through lending (including reserve-based lending agreements), underwriting, arranging and/or distribution of debt or equity, as well as trade and working capital finance and excludes, without limitation, any debt or securities traded or placed through secondary market activity. Barclays may occasionally continue to be involved in primary financing activity for distressed entities such as (without limitation) debt for equity swaps and other recapitalisation activities. When undertaking such activity, Barclays has a responsibility to minimise losses and will look to deploy possible financing options to manage distressed positions and/or maximise recoveries where it is a liability holder. Such financing arrangements are not typically for the purposes of funding the ongoing operational activity of the distressed entity. Accordingly, any such activity is excluded from the definition of financing. | | Group(s) | In relation to any entity, the relevant parent company and its consolidated subsidiaries, as a whole. | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 113 | ## Schedule to the Directors' Report: Sustainability Statement ## Further Information | | | | --- | --- | | | | | Term | Definition | | Hydraulic Fracturing (Fracking) | Refers to an oil and gas well development technique, using a high-pressure injection of liquid into the rock, which creates fracturing and allows natural gas and oil to flow more freely. | | Long-lead expansion | Refers to long-lead time upstream oil and gas projects with a final investment decision (or equivalent) after 31 December 2021. The includes, but is not limited to, exploration, development, and production1. | | Material expansion | In relation to Thermal Coal Mining, refers to an increase in annual tonnage of thermal coal extracted from existing thermal coal mines, including captives, by more than 20%, measured from a baseline of maximum p.a. tonnage for preceding 3 years reported. In relation to Thermal Coal Power, production refers to an investment to (i) extend the unabated operating lifetime of existing thermal coal power plants including captives or (ii) increase net operational thermal power capacity, including captives, by more than 10% measure from a baseline of maximum capacity for preceding 3 years reported Material expansion in such cases relates to absolute global increases rather than increases for an entity or Group as a result of mergers or acquisitions. | | Materially engaged in – Arctic Circle | For Arctic Circle, Groups are defined as “materially engaged in” if they have over 20% revenue from oil and gas activities in the Arctic Circle or have approved capital investment for new exploration and production or new pipeline transportation of oil and gas within the Arctic Circle. | | Materially engaged in – Fracking | For Hydraulic Fracturing, Groups are defined as “materially engaged in” if they have over 20% revenue from Fracking activities in the UK and Europe. | | Mountain Top Removal (MTR) coal mining | Refers to surface coal mining (and the associated reclamation operations) that remove entire coal seams running through the upper fraction of a mountain, ridge, or hill, by removing all of the overburden and creating a level plateau or gently rolling contour with no high-walls remaining – as defined by the Surface Mining Control & Reclamation Act (SMCRA 1977), available at www.gpo.gov/fdsys/pkg/CFR-2012-title30-vol3/pdf/ CFR-2012-title30-vol3- sec716-3.pdf | | Near-term | 2030 or such other near-term target as approved by exception by Barclays Group Sustainability Committee. | | New client(s) | Refers to an entity in relation to whom no member of the Group is an existing client of Barclays. | | Non-diversified Groups | Refers to non-state-owned Energy Groups that generate almost all of their revenues from upstream oil and gas activities (i.e. exploration, development and production). | | Oil Sands | Refers to naturally occurring deposits of water and clay, containing a heavy, viscous oil called bitumen. | | Oil Sands exploration and production companies | Refers to Groups that majority own (>50%) or operate oil sands exploration, production and Oil Sands processing assets, excluding those that generate less than 10% of revenue from these activities. | | Oil Sands pipelines | Refers to pipelines whose primary use is for the transportation of crude oil extracted from oil sands. | | Oil Sands processing | Refers to Canadian oil sands clients that process and upgrade extracted oil sands bitumen in situ only. | | Project Finance | Refers to transactions that are a form of loan financing originated by Barclays (either as an agent or as part of a syndicate) where the repayment depends primarily on the project’s cash flow and on the collateral value of the project’s assets.  Project Finance excludes corporate level asset financing. | | Reserve-based lending agreement | Refers to a type of asset-based lending whereby a loan is secured by collateral. Reserved-based lending is commonly used in the oil and gas sector, where such loans are secured by an oil and gas field or a portfolio of undeveloped or developed and producing oil and gas assets – known as the borrowing base. These facilities are typically multi-banked, and the asset base is approved subject to majority lender consent. | | Revenue from thermal coal-fired power generation | Refers to revenues attributable directly to the generation of electricity from thermal coal and excludes any other revenues including revenues attributable to the transmission and distribution of electricity. | | Sustainable Finance or Transition Finance Transactions | Refers to transactions that qualify under Barclays’ Sustainable Finance Framework or Transition Finance Framework as amended from time to time. | | Thermal Coal | Thermal coal (also known as steam coal) are grades of coal used for power and heat generation. These typically include lignite and sub-bituminous grades of coal. | | Ultra-Deep Water | Refers to waters where the water depth is 1,500 metres or more. | Note 1      This definition is informed by the IEA Net Zero Roadmap, 2023 update which highlights that the decline in fossil fuel demand in the IEA NZE Scenario means that no new long-lead time oil and gas projects are approved for development. It also notes that investment in existing fossil fuel supply projects is still needed in the NZE Scenario to ensure that supply does not fall faster than the decline in demand. This includes the use of in-fill drilling and improved management of reservoirs as well as some enhanced oil recovery and tight oil drilling to avoid a sudden near-term drop in supply. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 114 | Schedule to the Directors' Report: Sustainability Statement Independent Practioners' Limited Assurance Report to the Directors of Barclays Bank PLC Independent Practitioner’s Limited Assurance Report to the Directors of Barclays Bank Plc Limited Assurance Report on the Sustainability Statement Our limited assurance conclusion We have performed a limited assurance engagement on the sustainability reporting set out in the consolidated Sustainability Statement (hereafter referred to as the ‘Sustainability Statement’) prepared by Barclays Bank Plc and its consolidated undertakings (“the Entity”), included in section “Schedule to the Directors' Report: Sustainability Statement” of the Directors’ Report of the Entity for the year ended 31 December 2024, prepared in accordance with Transparency (Directive 2004/109/EC) Regulations 2007 as amended (the “Regulations”). Based on the procedures performed and evidence obtained, nothing has come to our attention to cause us to believe that the Entity’s Sustainability Statement for the year ended is not prepared, in all material respects, in accordance with Regulation 5 of the Regulations, including: • the compliance of the Sustainability Statement with the European Sustainability Reporting Standards (ESRS); • the process carried out by the Entity to identify material sustainability related impacts, risks, and opportunities in accordance with ESRS; • the compliance with the reporting requirements of Article 8 of Regulation (EU) 2020/853 (the “Taxonomy Regulations”); and • the compliance with the requirement to mark up the Sustainability Statement in accordance with Delegated Regulation (EU) 2019/815 on the specification of a single electronic reporting format. Basis for our conclusion We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) (Ireland) 3000, as adopted by the Irish Auditing and Accounting Supervisory Authority (IAASA). Our responsibilities under this standard are further described in the section titled ‘Our responsibilities’ in this report. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Any internal control structure, no matter how effective, cannot eliminate the possibility that fraud, errors or irregularities may occur and remain undetected and because we use selective testing in our engagement, we cannot guarantee that all errors or irregularities, if present, will be detected. The Sustainability Statement includes prospective information such as ambitions, strategy, plans, expectations and estimates. Prospective information relates to events and actions that have not yet occurred and may never occur. We do not provide any assurance on the assumptions and achievability of this prospective information. Our responsibilities under this standard are further described in the section titled ‘Our responsibilities’ in this report. We have fulfilled our ethical responsibilities under, and we remained independent of the Entity in accordance with, ethical requirements applicable in Ireland, including the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), the independence requirements of the Companies Act 2014 and the Code of Ethics issued by Chartered Accountants Ireland that are relevant to our limited assurance engagement of the Sustainability Statement in Ireland. Our firm applies International Standard on Quality Management (ISQM) 1 (Ireland), Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, issued by the IAASA. This standard requires the firm to design, implement and operate a system of quality management, including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Other matter – Compliance with the requirement to mark-up the Sustainability Statement We note that Regulation 5 of the Transparency (Directive 2004/109/EC) Regulations  2007 as amended requires us to report on the compliance by the Entity with the requirement to mark-up the Sustainability Statement in accordance with Delegated Regulation (EU) 2019/815 on the specification of a single electronic reporting format requires that the Directors’ Report is prepared in the electronic reporting format specified in Article 3 of Delegated Regulation (EU) 2019/815 and shall mark-up the Sustainability Statement. However, at the time of issuing our limited assurance report, the electronic reporting format has not been specified nor become effective by Delegated Regulation. Consequently, the Entity is not required to mark-up the Sustainability Statement. Our conclusion is not modified in respect of this matter. Other information The directors are responsible for the other information. The other information comprises the Strategic Report, Governance (which also includes the Director’s Report), Risk review, and Supplementary Information included in the Entity’s Annual Report but does not include the Sustainability Statement, EU Taxonomy Tables and our Limited Assurance Report thereon. Our limited assurance conclusion on the Sustainability Statement does not cover the other information and we do not express any form of assurance conclusion thereon. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 115 | Schedule to the Directors' Report: Sustainability Statement Independent Practioners' Limited Assurance Report to the Directors of Barclays Bank PLC The comparative sustainability reporting in the Sustainability Statement included in the Directors’ Report for the period from 1 January 2023 to 31 December 2023 has not been part of the assurance engagement. Consequently, the comparative sustainability reporting and thereto related disclosures in the Sustainability Statement for this period are not assured. Responsibilities for the Sustainability Statement As stated in the Directors’ responsibility statement on page 34 of the Directors’ Report, the Directors confirm, to the best of their knowledge, that the Sustainability Statement referenced in the management report, which is set out on pages 35 to 118, has been prepared in accordance with the European Sustainability Reporting Standards and the specifications adopted pursuant to Article 8(4) of Regulation (EU) 2020/852. For the purposes of this Limited Assurance Report we consider that by providing that confirmation, the Directors are confirming that, to the best of their knowledge, for the purposes of that Sustainability Statement, the Company has, subject to the oversight of the Directors: • confirmed that the scope of consolidation for the Sustainability Statement is the same as for the financial statements and disclosed to what extent the Sustainability Statement covers the Company’s upstream and downstream value chain, • developed an overview of its activities and business relationships, the context in which these take place and an understanding of its affected stakeholders; • performed an assessment to identify the material impacts, risks and opportunities to be reported, using appropriate quantitative and/or qualitative thresholds and described its process in the Sustainability Statement; • where relevant, used reasonable assumptions and estimates when preparing the Sustainability Statement; • included an overview of the double materiality process in the Sustainability Statement in accordance with the ESRS; • identified the quantitative metrics and monetary amounts disclosed in the Sustainability Statement that are subject to a high level of measurement uncertainty; • included in the Sustainability Statement information required under applicable Disclosure Requirements in relation to policies, actions and targets under the ESRS; • included material value chain information in the Sustainability Statement when this is necessary in accordance with the ESRS; • included in the Sustainability Statement a mapping of the information provided about the Company's due diligence process; • maintained adequate records in relation to the preparation of the Sustainability Statement. Directors are responsible for such internal controls as they determine are necessary to enable the preparation of the Sustainability Statement so that it is free from material misstatement, whether due to fraud or error. Terms used above have the meaning given to them in the European Sustainability Reporting Standards. Inherent limitations in preparing the Sustainability Statement We obtained limited assurance over the preparation of the Sustainability Statement in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007 as amended. Inherent limitations exist in all assurance engagements. There are inherent limitations regarding the measurement or evaluation of the Sustainability Statement subject to limited assurance, which have been set out below: • Estimates, approximations and/ or forecasts used by the Entity in preparing and presenting their Sustainability Statement are subject to significant inherent uncertainty. The extent to which the Sustainability Statement contains, qualitative, quantitative, objective, subjective, historical and prospective disclosures, also represents a significant degree of uncertainty. The selection by management of different but acceptable estimation, approximation or forecasting techniques, could have resulted in materially different amounts or disclosures being reported. For the avoidance of doubt, the scope of our engagement and our responsibilities will not involve us performing work necessary for any assurance on the reliability, proper compilation, or accuracy of the prospective information. • Certain metrics reported within the Sustainability Statement may be subject to inherent limitations, for example, value chain information relating to emissions data provided by third parties. • Where estimated, approximated and/ or forecast information is provided by management in respect of value chain information, we may be unable to verify or benchmark this information in full. • When applicable, as described in your disclosures relating to ESRS E1 Climate Change, GHG emissions quantification is subject to significant inherent measurement uncertainty because of incomplete scientific knowledge used to determine emissions factors and the values to combine emissions of different gases. Greenhouse gas quantification is unavoidably subject to significant inherent uncertainty as a result of both scientific and estimation uncertainty. Estimation uncertainty can arise because of: i. The inherent uncertainty in quantifying inputs, such as activity data and emission factors, that are used in mathematical models to estimate emissions (measurement uncertainty); ii. the inability of such models to precisely and accurately characterise under all circumstances the relationships between various inputs and the resultant emissions (model uncertainty); and | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 116 | Schedule to the Directors' Report: Sustainability Statement Independent Practioners' Limited Assurance Report to the Directors of Barclays Bank PLC iii. the fact that uncertainty can increase as emission quantities with different levels of measurement and calculation uncertainty are aggregated (aggregation uncertainty). • The self-defined applicable criteria and/or Basis of Preparation, the nature of the sustainability matters, and absence of consistent external standards allow for different, but acceptable, measurement methodologies to be adopted which may result in variances between entities. The adopted measurement methodologies may also impact the comparability of sustainability matters reported by different organisations and from year to year within an organisation as methodologies develop. • The Sustainability Statement has been prepared in a context of new sustainability reporting standards requiring entity-specific and temporary interpretations and addressing inherent measurement or evaluation uncertainties. • The comparability of sustainability information between entities and over time may be affected by the lack of historical sustainability information in accordance with the ESRS and by the absence of a uniform practice on which to draw, to evaluate and measure this information. This allows for the application of different, but acceptable, measurement techniques, especially in the initial years. • The Sustainability Statement may not include every impact, risk and opportunity or additional entity-specific disclosure that each individual stakeholder (group) may consider important in its own particular assessment. Our responsibilities Our objectives are to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement in scope of our conclusion, is free from material misstatement, whether due to fraud or error, and to issue a Limited Assurance Report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users on the basis of the Sustainability Statement. As part of a limited assurance engagement in accordance with ISAE (Ireland) 3000, we exercise professional judgment and maintain professional skepticism throughout the engagement. We also: • Perform risk assessment procedures, including obtaining an understanding of internal controls relevant to the engagement, to identify disclosures where material misstatements are likely to arise, whether due to fraud or error, but not for the purpose of providing a conclusion on the effectiveness of the Entity’s internal control. • Design and perform procedures responsive to where material misstatements are likely to arise in the Sustainability Statement. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Design and perform procedures to evaluate whether the Sustainability Statement has been prepared in accordance with the ESRS, which includes the process carried out by the Entity to identify material sustainability related impacts, risks and opportunities. • Design and perform procedures to evaluate whether the Sustainability Statement has been prepared in in compliance with the Taxonomy Regulations. • With respect to our conclusion in respect to the Entity’s reporting obligations and responsibility to mark up the Sustainability Statement in accordance with Delegated Regulation (EU) 2019/815 on the specification of a single electronic reporting format, we assess whether we have become aware of anything to suggest that the Sustainability Statement has not been prepared, in all material respects in this specified format. However, as explained in the ‘Other matter- Compliance with the requirement to mark- up the Sustainability Statement’ section of our assurance report, the Entity is not currently required to mark-up the Sustainability Statement. Summary of the work performed A limited assurance engagement involves performing procedures to obtain evidence about the Sustainability Statement. The nature, timing and extent of procedures selected depend on professional judgment, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statement. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement and depend on professional judgment, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. In conducting our limited assurance engagement, the procedures we have performed included the following: • Obtaining an understanding of the Sustainability Statement reporting process performed by the Entity, including the preparation of the Sustainability Statement. • Obtaining an understanding of the Entity’s double materiality assessment process by performing inquiries to understand the sources of the information used by management and reviewing the Entity’s internal documentation of this process; and evaluating whether the evidence obtained from our procedures about the Entity’s process is consistent with the description of the process set out in the Sustainability Statement; • Performing risk assessment procedures to understand the Entity and its environment, including the Entity’s reporting boundary, its value chain information and identify risks of material misstatement; | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 117 | Schedule to the Directors' Report: Sustainability Statement Independent Practioners' Limited Assurance Report to the Directors of Barclays Bank PLC • Designing and performing further assurance procedures (which included inquiries and analytical procedures) to respond to the identified risks of material misstatement; and • Evaluating the overall presentation of the Sustainability Statement, and considered whether the Sustainability Statement as a whole, including the sustainability matters and disclosures, is disclosed in accordance with the applicable criteria. The purpose of our limited assurance work and to whom we owe our responsibilities. Our report is made solely in accordance with Transparency (Directive 2004/109/EC) Regulations 2007 as amended to the Directors of the Entity. Our assurance work has been undertaken so that we might state to the Directors those matters we are required to state to them in a limited assurance report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Entity and its Directors, as a body, for our limited assurance work, for this report, or for the conclusions we have formed. Conor Holland For and on behalf of KPMG 1 Harbourmaster Place IFSC Dublin 1 D01 F6F5 Ireland 12 February 2025 | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 118 | ## Governance ## Other governance Managing data privacy, security and resilience We have strict policies to protect privacy and keep data secure. Data privacy Most of the jurisdictions in which Barclays operates have privacy and data protection laws in effect. While these may vary in detail, generally they reflect internationally recognised privacy principles found in the UN’s Universal Declaration of Human Rights, the European Convention on Human Rights and the European Union’s Charter of Fundamental Rights. We strive to operate in accordance with these standards and recognise that respect for privacy rights is a key element of good corporate governance and social responsibility. We strive to be transparent about our use of personal information when delivering our products and services and acknowledge the responsibility we have for safeguarding privacy. As Barclays increasingly adopts digital solutions to deliver next-generation consumer financial services, we appreciate our clients, customers and others may wish to understand how this may impact the use of their personal information. A globally applicable Barclays Data Privacy Standard sets out what is expected of all Barclays businesses and functions when collecting, using and sharing personal information. To promote clear accountability, the Standard includes the requirement for each business to appoint an accountable executive who has ultimate responsibility for the processing of personal data within that business. An agreed assurance programme measures compliance with the Data Privacy Standard. Barclays colleagues must complete annual privacy training which is reviewed and refreshed each year, with additional tailored training provided as necessary. The Group Data Protection Officer (DPO) reports on data privacy issues to the highest level of management. Through client, customer and employee privacy notices, we endeavour to explain clearly and openly how and why we use personal information and the legal grounds we rely on. When we receive complaints, we seek to address them fairly. Several jurisdictions also provide individuals with specific rights, such as the right to have access to or request deletion of their personal information. Barclays provides a public mailbox and secure channels via its website to enable individuals to make their privacy requests and receive responses from a dedicated team. Barclays requires its suppliers to comply with data protection and privacy laws, regulations and standards relevant to the jurisdictions in which they operate and relevant to any transferred personal data. Our requirements are set out and principally managed through our supplier contract templates, which require that suppliers commit to ensuring personal data shared with them is safeguarded and respected throughout the supply chain. Data securityΔ As detailed below, Barclays' Chief Security Office and Chief Information Security Office operate controls aimed at mitigating cybersecurity- related risks and understanding internal and external threats. Barclays deploys controls designed to protect its sensitive information and the data that has been entrusted to us by customers and clients, in line with our Standards, taking into account findings from internal and external reviews of our controls. Barclays seeks to protect the security of data we share with third parties, including by conducting remote and on-site inspections with certain suppliers to review their controls against contractual obligations and industry standards. A Third Party Service Provider Framework is in place which sets out control requirements for business units to manage the operational, reputational, conduct and legal risks to Barclays through its supply chain. In operating under a hybrid working model, we have continued to educate colleagues on cybersecurity risks in order to help minimise risks related to remote working, such as data exploitation or leakage. Barclays works with industry bodies and cybersecurity vendors to learn from risk events in other organisations. Our teams use such intelligence to simulate plausible cybersecurity and data compromise scenarios that allow us to exercise, review and improve our response and recovery plans in preparation for evolving threats. Operational resilienceΔ Customers and clients have increased expectations for us to be ‘Always On’. The interconnectivity of the financial sector means the stability and resilience of our systems, workforce and the continued provision of third party services, all have a direct impact on the quality of our service. Resilience and security is a focus for the Board. Barclays continues to strengthen its resilience posture and is focused on its ability to recover from a range of ‘severe but plausible’ scenarios which could cause detriment to its customers and clients and the broader financial market. To enable this, we define Groupwide business services and their interdependencies across the Group, including technology, third party services and our workforce. Recovery plans and business response plans have been developed for a range of different disruption events, such as cyber or data integrity disruptions, or technology failures. These recovery plans are reviewed and validated through regular testing which supports our aim to reduce the volume and impact of operational incidents year on year. We also conduct regular assurance on third parties to assess their capability. Operational resilience is delivered through an established and robust Operational Resilience Framework underpinned by a Policy, Standards, methodologies and procedures. These are integrated with Barclays’ Enterprise Risk Management Framework (ERMF) and set the tone from the top. The Standards are embedded within the Barclays Controls Framework and provide a consistent approach across the firm. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 119 | ## Governance ## Other governance The Operational Recovery Planning Policy and Standards drive the identification of the business services that are most important to Barclays, its customers, clients and the markets in which Barclays operates. The Standards also define requirements for setting recovery targets, mapping of dependencies, planning and testing. Resilience and security is the responsibility of everyone within the Group. All permanent employees are required to complete annual mandatory training on these topics. Chief Security Office and Chief Information Security OfficeΔ Barclays' Chief Security Office and Chief Information Security Office exist to keep the bank, its customers, clients, and colleagues safe and secure, and to support the resilience of our operations. They support Barclays' ability to operate in a protected and secure environment, and actively promote a culture of security as everyone's responsibility. The Group Chief Security Officer and Group Chief Information Security Officer (CISO) head Barclays' Chief Security Office and Chief Information Security Office, respectively.  The Group Chief Security Office is responsible for physical security, threat intelligence, crisis management, and investigations and liaising with law enforcement, among other areas. Barclays' Group Chief Security Officer combines 10 years of law enforcement experience with over 20 years of experience in senior leadership roles managing security at global financial institutions, and is supported by a leadership team with expertise in threat intelligence, investigations, security transformation, and crisis management, as well as other teams of subject matter experts and analysts. In 2024, Barclays’ Group CISO was elevated to report directly to the Group Chief Information Officer (a member of the Group Executive Committee), to leverage the strategic and operational benefits of aligning cybersecurity and technology. The Group Chief Information Officer reports to the Chief Operating Officer, and also sits on the Group Executive Committee. Barclays’ Group CISO is responsible for assessing and managing Barclays’ material risks from cybersecurity threats. The Group CISO is responsible for areas that, among others, include cybersecurity operations; internal penetration testing; third party security management; cryptography; vulnerability management; governance, risk, and compliance; cyber threat intelligence; and identity access management. The Group CISO has more than 20 years of experience managing cybersecurity for global financial institutions, including responsibility for cybersecurity fusion centres, cyber intelligence, security engineering and architecture, security operations, and network services. The Group CISO is supported by a team of CISOs for individual business units and jurisdictions. Chief Information Security Office leaders manage Barclays’ cybersecurity activities and are accountable for the day-to-day monitoring of residual risk, identification of gaps, oversight of remedial actions and implementation of strategy. The Group CISO and supporting leadership team collectively have advanced degrees and senior level experience managing cybersecurity risks in a variety of sectors, including those that represent critical national infrastructure, such as telecommunications and financial institutions. They are supported by teams of subject matter experts and analysts in a variety of specialisations, such as penetration testing, cyber-forensic investigations, security engineering, and vulnerability management. Supporting the delivery of Barclays’ cyber and information security strategy are multiple management committees, forums, and councils, including Cyber Control Councils for each of the eleven Standards supporting the Group Information and Cybersecurity Policy. These Cyber Control Standards Councils feed into the Cybersecurity Horizontal Controls Forum, the Group Controls Committee, the Group Risk Committee, and ultimately the Board Risk Committee. In addition, the Group COO holds standalone business reviews that include management updates on the status of cybersecurity across the Group, and a standalone COO Controls Forum that also escalates to the Group Controls Committee. Barclays’ Operational Risk and Internal Audit functions provide independent views of cyber risk management from second and third line of defence perspectives. Barclays assesses its cybersecurity activities against the industry-recognised National Institute of Standards and Technology (NIST) Cybersecurity Framework. Under Barclays' Enterprise Risk Management Framework, there is an Information and Cyber Security Policy supported by eleven Standards which define the minimum requirements for cybersecurity matters across the Barclays Group. The Policy leverages key risk indicators defined in the Standards to integrate cybersecurity risk management into the Group’s Enterprise Risk Management Framework. The Standards cover the following topics: Cryptography, Network Security, Security Configuration, Data Loss Prevention, Vulnerability Management, Data Security, Incident Response & Threat Intelligence, Threat Management, Governance, Identity & Access Management, and Application Security.  The Group CISO approves and is accountable for the Information and Cyber Security Policy and associated Standards. As part of our programme, we periodically assess our performance against these Standards and identify areas for improvement and remediation. The Board Risk Committee, within its oversight of Operational Risk as a Principal Risk, is responsible for overseeing risks arising from cybersecurity threats. In 2024, the Group Chief Security Officer and Group CISO provided updates to the Board Risk Committee about cybersecurity risks facing the Group. Such updates addressed topics that included the cybersecurity threat environment and ransomware attack preparedness, measurement of Barclays' risk and control posture, cybersecurity incident trends and Barclays' response, plans to improve Barclays' ability to recover from a material cyberattack scenario, Barclays’ vulnerability management, privileged access to Barclays' systems, regulatory developments, and risks and opportunities related to emerging technology and artificial intelligence. Engaging external security consultants to conduct penetration tests, attack simulations and other reviews to independently benchmark Barclays’ cybersecurity capabilities is an important part of our cybersecurity programme that allows us to identify and remediate cybersecurity weaknesses. In 2024, Barclays’ Group CISO and Group Chief Information Officer briefed the Board Risk Committee on plans to address the findings of penetration testing and cybersecurity assessments and remediate identified weaknesses. Barclays also partners with third party security providers on certain activities such as cyber recovery, software vulnerability scanning, penetration testing, distributed denial of service (DDoS) attack prevention, phishing simulations, third party risk management, incident response, intelligence, fraud prevention, and industry benchmarking. An important part of Barclays’ cybersecurity environment is its Joint Operations Centres (JOCs), which operate 24x7x365 from three globally strategic locations, linking Barclays’ security professionals and incident response managers with control functions and business unit representatives. The JOCs deliver security responsiveness by uniting core security functions and providing a central information and coordination point for security incident management and escalation, based on defined severity levels. During live incidents, the Barclays Crisis Management Team monitors the response by Incident Management Teams, Resilience Leads, and others, and has discretion to invoke | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 120 | ## Governance ## Other governance one or more Barclays Crisis Leadership Teams (CLTs). CLTs are business-led teams at entity, business unit, and regional levels that provide strategic leadership in a crisis, maintain incident management oversight, and coordinate key decision making. To manage security risk from Barclays’ third party suppliers, many of which perform critical services for Barclays businesses and handle sensitive Barclays data, we have a set of contractual Information and Cyber Security Supplier Control Obligations that are based on requirements in our internal Standards. Using our dedicated Third Party Security Management team’s capabilities, as well as third party tooling, we conduct assurance over our third and fourth parties against those obligations. Activity is structured on a risk-based approach that prioritises suppliers that underpin our most important business services. Identified issues are managed formally, but we also engage proactively with third party suppliers to help them strengthen their security and resilience posture. To recognise the risk presented by third party suppliers, which are increasingly targeted by threat actors, we regularly alert third party suppliers where we anticipate that they may be more vulnerable and should take preventative action. Notwithstanding such third party risk management efforts, Barclays does not have direct control over the cybersecurity of the systems of its third and fourth parties, limiting the Group’s ability to effectively protect and defend against certain threats. Certifications Barclays holds three ISO27001 certifications (i.e. the international standard on how to manage information security), Cyber Essentials / Cyber Essentials Plus Certification, and a UK certification for Digital Banking. TrainingΔ Barclays requires colleagues to complete mandatory information security training at least annually. Topics covered include incident reporting procedures, protecting sensitive data, device security, data leakage prevention, social engineering awareness, and password management. Consequences of noncompletion may include disciplinary action and impact to compensation. Barclays performs a number of key activities related to identifying, investigating, responding to and containing phishing, including an operational process that provides education and awareness through phishing simulation exercises, and management interventions for employees who demonstrate susceptibility to phishing lures. To report suspected phishing to Barclays' JOCs for further investigation, colleagues have a reporting tool integrated into their email account and receive feedback on whether the reported email was suspect or genuine. Barclays uses metrics to continually refine its phishing education and training. Note: Δ Information subject to limited assurance in accordance with (ISAE) (Ireland) 3000. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 121 | ## Risk review ## Contents The management of risk is a critical underpinning to the execution of the Barclays Bank Group’s strategy. The material risks and uncertainties the Barclays Bank Group faces across its business and portfolios are key areas of management focus. | | | | | --- | --- | --- | | | | | | [Risk management strategy](#ia16d0659cd524c01ae655d82fa382c3d_91) | | Page | | Overview of the Barclays Bank Group’s approach to risk management. | ▪ [Enterprise Risk Management Framework (ERMF)](#ia16d0659cd524c01ae655d82fa382c3d_94) | [123](#ia16d0659cd524c01ae655d82fa382c3d_94) | | ▪ [Segregation of duties – the “Three Lines of Defence” model](#ia16d0659cd524c01ae655d82fa382c3d_97) | [123](#ia16d0659cd524c01ae655d82fa382c3d_97) | | ▪ [Principal risks](#ia16d0659cd524c01ae655d82fa382c3d_100) | [123](#ia16d0659cd524c01ae655d82fa382c3d_100) | | ▪ [Risk appetite](#ia16d0659cd524c01ae655d82fa382c3d_103) | [123](#ia16d0659cd524c01ae655d82fa382c3d_103) | | ▪ [Risk Committees](#ia16d0659cd524c01ae655d82fa382c3d_106) | [124](#ia16d0659cd524c01ae655d82fa382c3d_106) | | ▪ [Barclays’ risk culture](#ia16d0659cd524c01ae655d82fa382c3d_109) | [124](#ia16d0659cd524c01ae655d82fa382c3d_109) | | [Material existing and emerging risks](#ia16d0659cd524c01ae655d82fa382c3d_112) | | | | Insight into the level of risk across our business and portfolios, the material existing and emerging risks and uncertainties we face and the key areas of management focus. | ▪ [Material existing and emerging risks potentially impacting more](#ia16d0659cd524c01ae655d82fa382c3d_112) [than one principal risk](#ia16d0659cd524c01ae655d82fa382c3d_112) | [126](#ia16d0659cd524c01ae655d82fa382c3d_112) | | ▪ [Climate risk](#ia16d0659cd524c01ae655d82fa382c3d_157) | [131](#ia16d0659cd524c01ae655d82fa382c3d_115) | | ▪ [Credit risk](#ia16d0659cd524c01ae655d82fa382c3d_115) | [132](#ia16d0659cd524c01ae655d82fa382c3d_118) | | ▪ [Market risk](#ia16d0659cd524c01ae655d82fa382c3d_121) | [133](#ia16d0659cd524c01ae655d82fa382c3d_121) | | ▪ [Treasury and capital risk](#ia16d0659cd524c01ae655d82fa382c3d_124) | [133](#ia16d0659cd524c01ae655d82fa382c3d_124) | | ▪ [Operational risk](#ia16d0659cd524c01ae655d82fa382c3d_136) | [134](#ia16d0659cd524c01ae655d82fa382c3d_136) | | ▪ [Model risk](#ia16d0659cd524c01ae655d82fa382c3d_139) | [137](#ia16d0659cd524c01ae655d82fa382c3d_139) | | ▪ [Compliance risk](#ia16d0659cd524c01ae655d82fa382c3d_142) | [137](#ia16d0659cd524c01ae655d82fa382c3d_142) | | ▪ [Reputation risk](#ia16d0659cd524c01ae655d82fa382c3d_145) | [138](#ia16d0659cd524c01ae655d82fa382c3d_145) | | ▪ Legal risk and legal, competition and regulatory matters | [139](#ia16d0659cd524c01ae655d82fa382c3d_148) | | ▪ Financial crime risk | [139](#ia16d0659cd524c01ae655d82fa382c3d_8485) | | [Principal risk management](#ia16d0659cd524c01ae655d82fa382c3d_151) | | | | The Barclays Bank Group’s approach to risk management for each principal risk with focus on organisation and structure and roles and responsibilities. | ▪ [Climate risk management](#ia16d0659cd524c01ae655d82fa382c3d_157) | [141](#ia16d0659cd524c01ae655d82fa382c3d_154) | | ▪ [Credit risk management](#ia16d0659cd524c01ae655d82fa382c3d_157) | [145](#ia16d0659cd524c01ae655d82fa382c3d_157) | | ▪ [Market risk management](#ia16d0659cd524c01ae655d82fa382c3d_160) | [146](#ia16d0659cd524c01ae655d82fa382c3d_160) | | ▪ [Treasury and capital risk management](#ia16d0659cd524c01ae655d82fa382c3d_163) | [147](#ia16d0659cd524c01ae655d82fa382c3d_163) | | ▪ [Operational risk management](#ia16d0659cd524c01ae655d82fa382c3d_166) | [148](#ia16d0659cd524c01ae655d82fa382c3d_166) | | ▪ [Model risk management](#ia16d0659cd524c01ae655d82fa382c3d_169) | [149](#ia16d0659cd524c01ae655d82fa382c3d_169) | | ▪ [Compliance risk management](#ia16d0659cd524c01ae655d82fa382c3d_172) | [150](#ia16d0659cd524c01ae655d82fa382c3d_172) | | ▪ [Reputation risk management](#ia16d0659cd524c01ae655d82fa382c3d_175) | [150](#ia16d0659cd524c01ae655d82fa382c3d_175) | | ▪ [Legal risk management](#ia16d0659cd524c01ae655d82fa382c3d_178) | [151](#ia16d0659cd524c01ae655d82fa382c3d_178) | | ▪ [Financial crime risk management](#ia16d0659cd524c01ae655d82fa382c3d_8494) | [151](#ia16d0659cd524c01ae655d82fa382c3d_8494) | | [Risk performance](#ia16d0659cd524c01ae655d82fa382c3d_184) | | | | Climate risk: The risk of financial losses arising from climate change, through physical risks and risks associated with transitioning to a lower carbon economy. | ▪ [Climate risk performance](#ia16d0659cd524c01ae655d82fa382c3d_181) | [154](#ia16d0659cd524c01ae655d82fa382c3d_181) | | Credit risk: The risk of loss to the Barclays Bank Group from the failure of clients, customers or counterparties (including sovereigns), to fully honour their obligations to the Barclays Bank Group, including the whole and timely payment of principal, interest, collateral and other receivables. | ▪ [Credit risk overview and summary of performance](#ia16d0659cd524c01ae655d82fa382c3d_187) | [158](#ia16d0659cd524c01ae655d82fa382c3d_187) | | ▪ [Maximum exposure and effects of netting, collateral and risk](#ia16d0659cd524c01ae655d82fa382c3d_190) [transfer](#ia16d0659cd524c01ae655d82fa382c3d_190) | [159](#ia16d0659cd524c01ae655d82fa382c3d_190) | | ▪ [Expected credit losses](#ia16d0659cd524c01ae655d82fa382c3d_196) | [163](#ia16d0659cd524c01ae655d82fa382c3d_196) | | ▪ [Management adjustments to models for impairment](#ia16d0659cd524c01ae655d82fa382c3d_223) | [178](#ia16d0659cd524c01ae655d82fa382c3d_223) | | ▪ [Climate risk ECL assessment](#ia16d0659cd524c01ae655d82fa382c3d_226) | [179](#ia16d0659cd524c01ae655d82fa382c3d_226) | | ▪ [Measurement uncertainty and sensitivity analysis](#ia16d0659cd524c01ae655d82fa382c3d_229) | [180](#ia16d0659cd524c01ae655d82fa382c3d_229) | | ▪ [Analysis of the concentration of credit risk](#ia16d0659cd524c01ae655d82fa382c3d_235) | [190](#ia16d0659cd524c01ae655d82fa382c3d_235) | | ▪ [Approach to management and representation of credit quality](#ia16d0659cd524c01ae655d82fa382c3d_244) | [192](#ia16d0659cd524c01ae655d82fa382c3d_244) | | ▪ [Analysis of specific portfolios and asset types](#ia16d0659cd524c01ae655d82fa382c3d_265) | [204](#ia16d0659cd524c01ae655d82fa382c3d_265) | | ▪ [Assets held for sale](#ia16d0659cd524c01ae655d82fa382c3d_13262) | [205](#ia16d0659cd524c01ae655d82fa382c3d_13262) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 122 | ## Risk review ## Contents | | | | | --- | --- | --- | | | | | | Risk performance continued | | | | Market risk: The risk of loss arising from potential adverse changes in the value of the Barclays Bank Group’s assets and liabilities from fluctuation in market variables including, but not limited to, interest rates, foreign exchange, equity prices, commodity prices, credit spreads, implied volatilities and asset correlations. | ▪ [Market risk overview and summary of performance](#ia16d0659cd524c01ae655d82fa382c3d_283) | [210](#ia16d0659cd524c01ae655d82fa382c3d_283) | | ▪ [Review of management measures](#ia16d0659cd524c01ae655d82fa382c3d_286) | [210](#ia16d0659cd524c01ae655d82fa382c3d_286) | | Treasury and capital risk – Liquidity: The risk that the Barclays Bank Group is unable to meet its contractual or contingent obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. | • [Liquidity risk overview](#ia16d0659cd524c01ae655d82fa382c3d_295) | [213](#ia16d0659cd524c01ae655d82fa382c3d_295) | | ▪ [Liquidity risk stress testing](#ia16d0659cd524c01ae655d82fa382c3d_298) | [213](#ia16d0659cd524c01ae655d82fa382c3d_298) | | ▪ [Contractual maturity of financial assets and liabilities](#ia16d0659cd524c01ae655d82fa382c3d_301) | [215](#ia16d0659cd524c01ae655d82fa382c3d_301) | | Treasury and capital risk – Capital: The risk that the Barclays Bank Group has an insufficient level or composition of capital to support its normal business activities and to meet its regulatory capital requirements under normal operating environments and stressed conditions (both actual and as defined for internal planning or regulatory testing purposes). This also includes the risk from the Barclays Bank Group’s pension plans. | ▪ [Capital risk overview](#ia16d0659cd524c01ae655d82fa382c3d_319) | [222](#ia16d0659cd524c01ae655d82fa382c3d_319) | | • Foreign exchange risk | [223](#ia16d0659cd524c01ae655d82fa382c3d_331) | | • Pension risk review | [224](#ia16d0659cd524c01ae655d82fa382c3d_343) | | Treasury and capital risk – Interest rate risk in the banking book: The risk that the Barclays Bank Group is exposed to capital or income volatility because of a mismatch between the interest rate exposures of its (non-traded) assets and liabilities. | ▪ [Interest rate risk in the banking book overview and summary of](#ia16d0659cd524c01ae655d82fa382c3d_358) [performance](#ia16d0659cd524c01ae655d82fa382c3d_358) | [226](#ia16d0659cd524c01ae655d82fa382c3d_358) | | ▪ [Net interest income sensitivity](#ia16d0659cd524c01ae655d82fa382c3d_361) | [226](#ia16d0659cd524c01ae655d82fa382c3d_361) | | ▪ [Analysis of equity sensitivity](#ia16d0659cd524c01ae655d82fa382c3d_367) | [227](#ia16d0659cd524c01ae655d82fa382c3d_367) | | ▪ [Volatility of the fair value through other comprehensive income](#ia16d0659cd524c01ae655d82fa382c3d_373) [(FVOCI) portfolio in the liquidity pool](#ia16d0659cd524c01ae655d82fa382c3d_373) | [227](#ia16d0659cd524c01ae655d82fa382c3d_373) | | Operational risk: The risk of loss to the Barclays Bank Group from inadequate or failed processes or systems, human factors or due to external events (for example fraud) where the root cause is not due to credit or market risks. | ▪ [Operational risk overview and summary of performance](#ia16d0659cd524c01ae655d82fa382c3d_376) | [228](#ia16d0659cd524c01ae655d82fa382c3d_376) | | ▪ [Operational risk profile](#ia16d0659cd524c01ae655d82fa382c3d_379) | [229](#ia16d0659cd524c01ae655d82fa382c3d_379) | | Model risk: The potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. | ▪ [Model risk overview and summary of performance](#ia16d0659cd524c01ae655d82fa382c3d_382) | [231](#ia16d0659cd524c01ae655d82fa382c3d_382) | | Compliance risk: The risk of poor outcomes for, or harm to, customers, clients and markets, arising from the delivery of the Barclays Bank Group's products and services. | ▪ [Compliance risk](#ia16d0659cd524c01ae655d82fa382c3d_385) overview and summary of performance | [231](#ia16d0659cd524c01ae655d82fa382c3d_385) | | Reputation risk: The risk that an action, transaction, investment, event, decision, or business relationship will reduce trust in the Barclays Bank Group’s integrity and/ or competence. | ▪ [Reputation risk overview and summary of performance](#ia16d0659cd524c01ae655d82fa382c3d_388) | [231](#ia16d0659cd524c01ae655d82fa382c3d_388) | | Legal risk: The risk of loss or imposition of penalties, damages or fines from the failure of the Barclays Bank Group to meet its legal obligations including regulatory or contractual requirements. | ▪ [Legal risk overview and summary of performance](#ia16d0659cd524c01ae655d82fa382c3d_391) | [232](#ia16d0659cd524c01ae655d82fa382c3d_391) | | Supervision and regulation | | | | The Barclays Bank Group’s operations, including its overseas offices, subsidiaries and associates, are subject to a significant body of rules and regulations. | ▪ [Supervision of the Barclays Bank Group](#ia16d0659cd524c01ae655d82fa382c3d_394) | [233](#ia16d0659cd524c01ae655d82fa382c3d_394) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 123 | ## Risk review ## Risk management #### Barclays’ risk management strategy The Barclays Bank Group’s risk management strategy This section introduces the Barclays Bank Group’s approach to managing and identifying risks, and for fostering a sound risk culture. Enterprise Risk Management Framework (ERMF) The ERMF governs the way in which the Barclays Bank Group identifies and manages its risks. It outlines the highest level arrangements for risk management by setting out standards, objectives and key responsibilities of different groups of employees of the Barclays Bank Group. It is approved by the Barclays PLC Board on recommendation of the Barclays Group Board Risk Committee and the Barclays Bank Group Chief Risk Officer (CRO); it is then adopted by the Barclays Bank Group. The ERMF sets out: ▪ risk management and segregation of duties: the ERMF defines a Three Lines of Defence model ▪ principal risks faced by the Barclays Bank Group which guide the organisation of risk management processes ▪ risk appetite requirements: this helps define the level of risk we are willing to undertake in our business ▪ roles and responsibilities for key risk management and governance. The ERMF is complemented by frameworks, policies and standards which are mainly aligned to individual principal risks: ▪ frameworks cover high level principles guiding the management of principal risks, and set out details of which policies are needed, and high level governance arrangements ▪ policies set out the control objectives and high level requirements to address the key principles articulated in their associated frameworks. Policies state ‘what’ those within scope are required to do ▪ standards set out detail of the control requirements to ensure the control objectives set by the policies are met. Segregation of duties - the "Three Lines of Defence" model The ERMF sets out a clear lines of defence model. All colleagues are responsible for understanding and managing risks within the context of their individual roles and responsibilities, as set out below. ▪ The first line consists of all employees engaged in the revenue generating and client facing areas of the Barclays Bank Group and all associated support functions, including Finance, Operations, Treasury and Human Resources. The first line is responsible for identifying and managing the risks in which they are engaged, operating within applicable limits and developing a control framework, and escalating risk events or issues as appropriate. Employees in the first line have primary responsibility for their risks and their activities are subject to oversight from the relevant parts of the second and third lines. ▪ The second line comprises of the Risk and Compliance functions. The role of the second line is to establish the limits, rules and constraints, and the frameworks, policies and standards under which all activities shall be performed, consistent with the risk appetite of the Barclays Bank Group, and to oversee the performance of the Barclays Bank Group against these limits, rules and constraints. Controls for first line activities will ordinarily be established by the control officers operating within the control framework of the Barclays Bank Group. These controls will remain subject to oversight by the second line. ▪ The third line of defence is Internal Audit, and is responsible for providing independent assurance over the effectiveness of governance, risk management and controls over current, systemic and evolving risks. ▪ The legal function provides support to all areas of the Barclays Bank Group and is not formally part of any of the three lines of defence. The Legal function is responsible for proactively identifying, communicating and providing legal advice on applicable laws, rules and regulations. Except in relation to the legal advice it provides or procures, it is subject to second line oversight with respect to its own operational and compliance risks, as well as with respect to the legal risk to which the Barclays Bank Group is exposed. Principal risks The ERMF identifies ten principal risks (see managing risks in the strategic report section) namely: credit risk, market risk, treasury and capital risk, climate risk, operational risk, model risk, compliance risk, financial crime risk, reputation risk and legal risk. In 2024, financial crime risk was elevated to a principal risk, effective from 1 January 2025.  Previously, financial crime risk was managed as part of compliance risk. Recognising the increased external threat of financial crime, this change will enhance transparency and visibility of financial crime risk within the Barclays Bank Group and reinforce  independent assessment, management and oversight of financial crime risk. Each of the principal risks is overseen by an accountable executive at the Barclays Group level who is responsible for overseeing and/or assigning responsibilities for the framework, policies and standards that set out associated responsibilities and expectations, and detail the related requirements around risk management. In addition, certain risks span across more than one principal risk. Risk Appetite Risk Appetite is defined as the level of risk which the Barclays Bank Group is prepared to accept in carrying out its activities. It provides a basis for ongoing dialogue between management and Board with respect to the Barclays Bank Group’s current and evolving risk profile, allowing strategic and financial decisions to be made on an informed basis. Risk appetite is approved by the Barclays PLC Board in aggregate and disseminated across legal entities and businesses, including the Barclays Bank Group. The Barclays Bank PLC Board cannot approve a higher risk appetite than that determined by the Barclays PLC Board without the approval of the Barclays PLC Board but may choose to operate at a lower level of risk appetite than that approved by the Barclays PLC Board. The Barclays Group total risk appetite and its allocation to the Barclays Bank Group are supported by limits to enable and control specific exposures and activities that have material concentration risk implications. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 124 | ## Risk review ## Risk management #### Barclays’ risk management strategy Risk Committees The Barclays Bank Group's various risk committees consider risk matters relevant to their business, and escalate as required to the Barclays Group Risk Committee, whose Chair, in turn, escalates to the Barclays Bank PLC Board Risk Committees and the Barclays Bank PLC Board. | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | Board Committees | | Barclays Bank PLC Board | | | | | | Barclays Bank PLC ExCo | | | | | | | | | | | | | | | | | | Barclays Bank PLC Board Risk Committee | | Barclays Bank PLC Board Audit Committee | | Barclays Bank PLC Board Remuneration Committee | | | | | | | | | | | | | | | | | | Management Level Committees/ Forums | | Group Risk Committee | | | | Barclays PLC Remuneration Review Panel | | | | | | | | | | | | | | | | | | Business Level Committees/ Forums | | Risk Committees (aligned to product/risk type or business) | | | | | | | | | | | | | | | | | | | | The Barclays Bank PLC Board receives regular information on the risk profile of the Barclays Bank Group, and has ultimate responsibility for approval of risk appetite and capital plans, within the parameters set by the Barclays PLC Board. The Barclays Bank PLC Board is also responsible for the adoption of the ERMF. Further, there are two Board-level committees which oversee the application of the ERMF and review and monitor risk across the Barclays Bank Group. These are: the Barclays Bank PLC Board Risk Committee and the Barclays Bank PLC Board Audit Committee. Additionally, the Barclays Bank PLC Board Remuneration Committee oversees pay practices focusing on aligning pay to sustainable performance: ▪ The Barclays Bank PLC Board Risk Committee (BRC): The BRC monitors Barclays Bank Group’s risk profile against the agreed appetite. Where actual performance differs from expectations, the actions taken by management are reviewed to ascertain that the BRC is comfortable with them. The Barclays Bank Group CRO regularly presents a report to the BRC summarising developments in the risk environment and performance trends in the key portfolios. The BRC also reviews certain key risk methodologies, the effectiveness of risk management, and the Barclays Bank Group risk profile, including the material issues affecting each business portfolio and forward risk trends. The committee also commissions in-depth analyses of significant risk topics, which are presented by the Barclays Bank Group CRO or senior risk managers in the businesses. ▪ The Barclays Bank PLC Board Audit Committee (BAC): The BAC receives regular reports on the effectiveness of internal control systems, on material control issues of significance, and on accounting judgements, including a review of the adequacy of impairment allowances. ▪ The Barclays Bank PLC Board Remuneration Committee (RemCo): The RemCo receives proposals on ex-ante and ex-post risk adjustments to variable remuneration based on risk management performance including events, issues and the wider risk profile. These inputs are considered in the setting of performance incentives. Risk themes and horizon scanning reports, highlighting emerging and forward looking risks, are regularly presented to the BRC for discussion and analysis. The themes are derived and quantified from principal risk horizon scanning and risk registers, complemented by senior management and BRC input. Watching brief items are collated and informed along the risk themes as a list of risks which may have a more limited impact and likelihood in the near-term but have the potential to develop and meet the risk theme definition in the future. The inventory of risk themes is updated regularly with key changes presented to the BRC. Key risk themes are a subset of the risk themes considered most topical at that moment and material to the Barclays Group considering the external environment. The BRC semi-annually reviews and discusses a report entitled ‘Key Risk Themes and Management Actions’. Barclays’ risk culture Risk culture can be defined as the norms, attitudes and behaviours related to risk awareness, risk taking and risk management. This is reflected in how the Barclays Bank Group identifies, escalates and manages risk matters. The Barclays Bank Group is committed to maintaining a robust risk culture in which: ▪ management expect, model and reward the right behaviours from a risk and control perspective; and ▪ colleagues identify, manage and escalate risk and control matters, and meet their responsibilities around risk management. The Barclays Group CEO works with the Executive Management to embed a strong risk culture within the Barclays Group, with particular regard to the identification, escalation and management of risk matters, in accordance with the ERMF. This is supported by our Purpose, Values and Mindset, as well by as by setting a standard of consistent excellence. Specifically, all employees regardless of their positions, functions or locations must play their part in the Barclays Bank Group’s risk management. Employees are required to be familiar with risk management policies which are relevant to their responsibilities, know how to escalate actual or potential risk issues, and have a role- appropriate level of awareness of the risk management process as defined by the ERMF. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 125 | ## Risk review ## Risk management #### Barclays’ risk management strategy Our Code of Conduct – the Barclays Way Globally, all colleagues must attest to the “Barclays Way”, our Code of Conduct, and comply with all frameworks, policies and standards applicable to their roles. The Code of Conduct outlines the Purpose, Values and Mindset which govern our ‘Barclays Way’ of working across our business globally. It constitutes a reference point covering all aspects of colleagues’ working relationships, and provides guidance on working with other Barclays employees, customers and clients, governments and regulators, business partners, suppliers, competitors and the broader community. See home.barclays/sustainability/esg-resource-hub/statements-and-policy-positions/ for more details. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 126 | ## Risk review ## Material existing and emerging risks #### Material existing and emerging risks to the Barclays Bank Group’s future performance The Barclays Bank Group has identified a broad range of risks to which its businesses are exposed. Material risks are those to which senior management pay particular attention and which could cause the delivery of the Barclays Bank Group’s strategy, results of operations, financial condition and/or prospects to differ materially from expectations. Emerging risks are those which have unknown components, the impact of which could crystallise over a longer time period. The factors set out below should not be regarded as a complete and comprehensive statement of all the potential risks and uncertainties which the Barclays Bank Group faces. For example, certain other factors beyond the Barclays Bank Group’s control, including escalation of global conflicts, acts of terrorism, natural disasters, pandemics and similar events, although not detailed below, could have a similar impact on the Barclays Bank Group. M #### aterial existing #### and emerging risks potentially impacting more than one principal risk i) Business conditions, general economy and geopolitical issues The Barclays Bank Group’s operations are subject to changes in global and local economic and market conditions, as well as geopolitical developments, which may have a material impact on the Barclays Bank Group’s business, results of operations, financial condition and prospects. A deterioration in global or local economic and market conditions may result in (among other things): (i) deteriorating business, consumer or investor confidence and lower levels of investment and productivity, which in turn may lead to lower customer and client activity, including lower demand for borrowing; (ii) higher default rates, delinquencies, write-offs and impairment charges as borrowers struggle with their debt commitments; (iii) subdued asset prices, which may impact the value of collateral held by the Group and require the Group and its clients to post additional collateral in order to satisfy margin calls; (iv) mark-to-market losses in trading portfolios resulting from changes in factors such as creditworthiness, securities prices and solvency of counterparties; and (v) revisions to calculated expected credit losses (ECLs) leading to increases in impairment allowances. In addition, the Group’s ability to borrow from other financial institutions or raise funding from external investors may be affected by deteriorating economic conditions and market disruption. Geopolitical events can also cause financial instability and affect economic growth. During 2024, global economic growth has remained muted, mainly driven by a more uncertain geopolitical environment, a high interest rate environment, an economic slowdown in China and continued structural economic issues in the UK and EU. Without limitation, the Barclays Bank Group has observed the following macroeconomic risk themes / trends: • Limitations on economic output growth, mostly driven by: (i) tight labour markets and low productivity growth in the main western economies; (ii) large fiscal deficits; and (iii) high energy prices and strained global supply chains driven by geopolitical events such as the Ukraine war and the conflict in the Middle East have made central banks pursue a slower than expected reduction path for interest rates. In 2024, these ‘higher-for-longer’ rates have dampened economic activity, increasing fears of a hard-landing scenario across the US, Europe and the UK which could have a material adverse effect on the Barclays Bank Group's results of operations and profitability. • A significant proportion of the Barclays Bank Group’s portfolio is located in the US, including a major credit card portfolio and a range of corporate and investment banking exposures. The results of the 2024 US elections suggest a reduced risk of a debt- ceiling crisis in the near term but increased potential for significant changes in US policy by the new administration in certain sectors which could negatively impact certain portfolios or clients. The long-term impacts of the new policies announced since the new US administration took office remain uncertain although they may, depending on their implementation and the reactions they generate, create inflationary pressures, lead to diverging regulatory agendas compared to other regions where the Barclays Bank Group operates, usher in an era of deregulation in the US banking sector (which, in turn, could result in increased competitive pressures on non-US banks), fuel government indebtedness and/or provoke disorderly market corrections. The potential adverse impact of such events on business performance, unemployment, competitiveness and economic output could lead to higher levels of impairment or lower revenues, which could have a material adverse effect on the Barclays Bank Group's results of operations and profitability. • The adoption of tariffs and other protectionist measures or countermeasures, particularly by the US, would further complicate the economic outlook for the EU, China and other export-driven emerging markets given their trade surpluses. This could have a material adverse effect on the Barclays Bank Group’s business in the affected regions. • The EU faces a number of structural challenges and is vulnerable to adverse geopolitical developments. Key difficulties for the EU include heavily indebted governments, a lack of productivity growth, tight labour markets and deteriorating demographics. In addition, some of the EU's key economic sectors, including automobiles and renewables, are under pressure from competitive imports and potential tariffs on exports to the US. Uncertainty surrounding NATO's future and pressure to increase spending add to the vulnerability. A deterioration in these difficulties could adversely impact the Group's business in the EU. • In China, a property market slump, shrinking exports, and weakened currency (and resulting capital outflows) have caused an economic slowdown, with deflation a real risk. The high levels of debt, particularly in the property sector, remain a concern given the high leverage multiples. It remains uncertain whether recently announced government action will be sufficient to redress the situation. A further shift away from market-based reforms could further damage private-sector confidence and impact economic growth. Any property shock risks contaminating the financial sector and precipitating a wider banking crisis could affect the exposures of the Barclays Bank Group across global markets which are subject to contagion effects. • The UK faces a number of structural challenges. The Labour government has identified economic growth as a priority. However, the long-term impacts of the latest budget and tax increases remain uncertain with risks to the Group's retail and corporate businesses in case of economic underperformance. This could have a material adverse effect on the Barclays Bank Group's results of operations and profitability. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 127 | ## Risk review ## Material existing and emerging risks • The loss of ‘the presumption of conformity’ is widely reported to have raised costs for UK customers exporting to the EU as it results in their products no longer presumed to be in line with corresponding EU rules, which, together with the risk of regulatory divergence between the UK and the EU, could adversely impact both the Barclays Bank Group's EU and UK operations. A deterioration in the aforementioned economic and business environment could result in (among other things): • A prolonged slowdown in the markets where the Barclays Bank Group operates, with lower economic output, higher unemployment, and depressed property prices, which could lead to increased impairments in relation to a number of Barclays Bank Group’s portfolios including the unsecured lending portfolio (credit cards) and commercial real estate exposures. • Increased market volatility (in particular in currencies and interest rates), which could impact the trading book positions and affect the underlying value of assets held in the banking book, including securities held by the Barclays Bank Group for liquidity purposes. In addition, market confidence and depositor perceptions of banking fragility as seen in certain institutions in 2023 could increase the severity and velocity of deposit outflows, impacting the Barclays Bank Group’s liquidity position; • A credit rating downgrade for one or more members of Barclays Bank Group’s parent entity, B plc (either directly or indirectly as a result of a downgrade in the UK sovereign credit ratings), which could significantly increase Barclays Bank Group’s cost of funding and/or reduce its access to funding, widen credit spreads and have a material adverse impact on Barclays Bank Group’s interest margins and liquidity position; and/or • A market-wide widening of credit spreads or reduced investor appetite could negatively impact Barclays Bank 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 Barclays Bank Group operates: • Economic 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 Barclays Bank 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 Barclays Bank Group operates. • Diverging financial, conduct and prudential regulations between the jurisdictions where the Barclays Bank Group operates increase the complexity and costs of compliance. 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 Barclays Bank 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 Barclays Bank 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 Barclays Bank Group’s customers, clients, employees and suppliers. ii) The impact of interest rate changes on the Barclays Bank Group’s profitability The impact from changes to interest rates are potentially significant for the Barclays Bank Group, especially given the uncertainty as to the size and frequency of such changes, particularly in the Barclays Bank Group’s main markets of the UK, the US and the EU. Lower interest rates could put pressure on the Barclays Bank Group’s net interest margins (the difference between lending income and borrowing costs) due to either a delay in passthrough or a smaller passthrough of the interest rate cuts to client deposits. This could adversely affect the profitability and prospects of the Barclays Bank Group. Higher interest rates could result in higher funding costs either due to higher refinancing costs or due to deposit balance mix changes as counterparties prefer switching into deposits that pay a higher rate. In addition, interest rates remaining higher for longer (due to either smaller or less frequent than expected interest rate cuts, or larger or more frequent than expected interest rate increases), could lead to generally weaker than expected growth, reduced business confidence and higher unemployment. This, combined with the impact that higher interest rates may have on the affordability of loan arrangements for borrowers (especially when combined with inflationary pressures), could cause stress in the lending portfolio and underwriting activity of the Barclays Bank Group. This could result in higher credit losses, driving increased impairment charges which would most notably impact retail unsecured portfolios and wholesale non-investment grade lending. This could have a material effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects. In addition, changes in interest rates could have an adverse impact on the value of the securities held in the Barclays Bank Group’s liquid asset portfolio. Consequently, this could create more volatility than expected through the Barclays Bank Group’s fair value through other comprehensive income (FVOCI) reserve and could adversely affect the profitability and prospects of the Barclays Bank Group. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 128 | ## Risk review ## Material existing and emerging risks iii) Competition in the banking and financial services industry The Barclays Bank Group operates in a highly competitive environment in which it must evolve and adapt to significant changes as a result of regulatory reform, technological advances, increased public scrutiny and changes to market and economic conditions. The Barclays Bank Group expects that competition in the financial services industry will remain intense and may have a material adverse effect on the Barclays Bank Group’s future business, results of operations, financial condition and prospects. New competitors in the financial services industry continue to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-banks to offer products and services that traditionally were banking products such as electronic securities trading, payments processing and online automated algorithmic-based investment advice. Furthermore, payments processing and other services could be significantly disrupted by technologies, such as blockchain (used in cryptocurrency systems) and 'buy now pay later' lending, both of which are currently subject to lower levels of regulatory oversight compared to many activities undertaken by banks. Furthermore, the introduction of central bank digital currencies could have a significant impact on the banking system and the role of commercial banks by disrupting the current provision of banking products and services. This disruption could allow new competitors, some previously hindered by banking regulation (such as certain FinTechs), to provide customers with access to banking facilities and increase the disintermediation of banking services. New technologies and changing consumer behaviour have previously required, and could continue to require, the Barclays Bank Group to incur additional costs to modify or adapt its products or make additional capital investments in its businesses to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. For example, the Barclays Bank Group has begun to take steps to expand its investment in and to integrate AI technologies, including generative AI. Such AI technologies and services are rapidly evolving, and require significant investment, including development and operational costs, to meet the changing needs and expectations of the Barclays Bank Group’s customers and clients. Failure to efficiently develop or integrate such AI technologies may impact the Barclays Bank Group’s competitive position and its ability to increase the efficiency of and reduce costs associated with its operations and to offer innovative products and services to customers. Ongoing or increased competition and/or disintermediation of banking services may put pressure on the pricing of the Barclays Bank Group’s products and services, which could reduce the Barclays Bank Group's revenues and profitability, or may cause the Barclays Bank Group to lose market share, particularly with respect to traditional banking products such as deposits, bank accounts and mortgage lending. This competition may be on the basis of the quality and variety of products and services offered, transaction execution, innovation, reputation and/or price. These factors may be exacerbated by further regulatory change. The failure of any of the Barclays Bank Group’s businesses to meet the expectations of clients and customers, whether due to general market conditions, underperformance, a decision not to offer a particular product or service, branch closures, changes in client and customer expectations or other factors, could affect the Barclays Bank Group’s ability to attract or retain clients and customers. Any such impact could, in turn, reduce the Barclays Bank Group’s revenues. iv) Regulatory change agenda and impact on business model The Barclays Bank Group’s businesses are subject to ongoing regulation and associated regulatory risks, including the effects of changes in the laws, regulations, policies, voluntary codes of practice and interpretations of the foregoing in the UK, the US, the EU, and the other markets in which it operates. Many legislative and regulatory changes that are relevant to the Barclays Bank Group’s business may have an effect beyond the country in which they are enacted, either because sectoral regulators within the banking and finance industries and legislators in national and supranational governments deliberately enact laws and/or regulations with extra-territorial effect or its global operations mean that the Barclays Bank Group gives effect to local laws and regulations on a wider basis. In recent years, regulators and governments have focused on reforming both the prudential regulation of the financial services industry and the ways in which the business of financial services is conducted. Measures taken include enhanced capital, liquidity and funding requirements, the structural separation or prohibition of certain activities by banks, changes in the operation of capital markets activities, the introduction of tax levies and transaction taxes, changes in compensation practices, and more detailed requirements on how business is conducted and clients and customers are treated. Governments and regulators in the UK, the US, the EU or elsewhere may intervene further in relation to areas of industry risk and/or regulatory risk already identified, or in new areas, which could adversely affect the Barclays Bank Group. Current and anticipated areas of particular focus for the Barclays Bank Group’s regulators, where regulatory changes could have a material effect on the Barclays Bank Group’s business, financial condition, results of operations, prospects, capital, liquidity or funding position, and reputation include, but are not limited to: • the continued focus by regulators, international bodies, organisations and unions on how institutions conduct business, particularly with regard to the delivery of fair outcomes for customers, promoting effective competition in the interests of consumers and ensuring the orderly and transparent operation of global financial markets, including the Consumer Duty in the UK and review of the provision of financial advice to consumers; • the implementation of any conduct measures as a result of regulators’ focus on and review of organisational culture, employee behaviour and whistleblowing, as well as proposals for a new regulatory framework on diversity and inclusion in the UK, with a particular focus on firms’ management of non-financial misconduct matters; • the UK regulators’ strategy for and promotion of competitive markets and growth, both domestically and internationally; • the reforms to the regulatory frameworks supporting the wholesale financial markets, including recent (and expected) changes to conduct of business, listing, securities offering regimes, securitisation and derivatives related requirements, and proposed reforms to transaction reporting regimes; • the increasing regulatory expectations and requirements relating to various aspects of operational resilience, including an increasing focus on minimising the impact of operational disruptions (including digital operational disruptions) on the UK financial sector, the role of critical third-party service providers to financial institutions, and operational incident and third party reporting requirements; | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 129 | ## Risk review ## Material existing and emerging risks • the focus globally on technology adoption and digital delivery, including the use of artificial intelligence (AI), digital assets and digital money (including central bank digital currencies), payments and related infrastructure, and cybersecurity. This also includes the introduction of new and/or enhanced laws and / or regulatory standards in these areas, underpinned by customer protection principles, and actions by regulators that are designed to support the use of AI in the financial sector; • the continued evolution of the UK’s regulatory framework following the UK's withdrawal from the EU, particularly following the implementation of the Financial Services and Markets Act 2023 (FSMA 2023) which provides for the ongoing revocation and repeal of assimilated law relating to financial services and, where relevant, its replacement with rules made (or to be made) by UK regulators, as well as any areas of divergence between the UK and EU regulatory regimes; • the implementation of the reforms to the finalisation of the Basel III package, which includes changes to the RWA approaches to credit risk, market risk, counterparty risk, operational risk and credit valuation adjustments risk, the application of input and output floors and the leverage ratio, as well as potential reforms to other aspects of prudential regulation, including the large exposures framework, the UK policy framework for capital buffers, and amendments to the Bank of England’s approach to setting a minimum requirement for own funds and eligible liabilities (MREL); • greater monitoring of, and implementation of policies to address capital requirements, liquidity risk, and credit risk management; and continuing focus on review of and assurance activities in relation to reporting methodology and data quality • increasing regulatory expectations of firms around governance and risk management frameworks, particularly for the management of climate change and other ESG risks, enhanced ESG disclosure and reporting obligations corporate sustainability due diligence obligations, anti-greenwashing rules and requirements to develop and disclose a climate transition plan, as well as reactions to such initiatives, including anti-ESG legislation and rules; • the incorporation of climate change considerations, including transition risks in particular, within the global prudential framework; • the operation of, and recent reforms to, the UK ring-fencing regime. The ring-fencing regime requires, among other things, the separation of the retail and SME deposit taking activities of UK banks from wholesale and investment banking operations into a legally distinct, operationally separate and economically independent entity (i.e. a ‘ring-fenced’ bank), which is not permitted to undertake a range of activities; • regulatory expectations in the UK relating to access to payment accounts; • changes in national or supra-national requirements regarding the ability to offshore or outsource the provision of services and resources or transfer material risk or data to companies located in other countries, which could impact the Barclays Bank Group’s ability to implement globally consistent and efficient operating models; • the continued focus by regulators worldwide and industry bodies on benchmark reform and market transition to new risk-free reference rates. Given the unpredictable consequences of benchmark reform, there could be an adverse impact on market participants, including the Barclays Bank Group, in respect of financial instruments linked to, or referencing any ceasing benchmarks or their replacement rates; • financial crime, fraud and market abuse standards and increasing expectations for related control frameworks, to ensure firms are adapting to new threats and are protecting customers from cyber-enabled crime, and in the UK, reforms relating to authorised push payment fraud reimbursements and the ability of payment service providers to delay the processing of transactions in certain circumstances; • the reform of corporate criminal liability in the Economic Crime and Corporate Transparency Act 2023 in the UK, which includes a failure to prevent fraud offence; • the application and enforcement of economic sanctions, including those with extra-territorial effect and those arising from geopolitical tensions; • requirements flowing from arrangements for the resolution strategy of the Barclays Group and its individual operating entities (including the Barclays Bank Group) that may have different effects in different countries; • continuing regulatory focus on data privacy, including the collection and use of personal data, and protection against loss and unauthorised or improper access to, or disclosure of, such data; • ongoing requirements to allocate and monitor management accountability within the Barclays Bank Group (for example, the requirements of the Senior Managers and Certification Regime in the UK and similar regimes elsewhere that are either in effect, are due to come into effect in the future or are under consideration, including new rules in the EU applicable to appointing senior managers), as well as requirements relating to executive remuneration and, separately, potential reforms to the UK’s Certification Regime; • continuing regulatory focus on the effectiveness of internal controls and risk management frameworks, as evidenced in regulatory fines and other measures imposed on the Barclays Bank Group and other financial institutions; and • recent proposals in the US card market impacting consumer late fee assessments. For further details on the regulatory supervision of, and regulations applicable to, the Barclays Bank Group, refer to the Supervision and regulation section. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 130 | ## Risk review ## Material existing and emerging risks v) Change delivery and execution risks The Barclays Bank Group constantly adapts and transforms the way it conducts business in response to changing customer behaviour and needs, technological developments, regulatory expectations, increased competition and cost management initiatives. The Barclays Group announced, as part of the Investor Update in February 2024, a plan to become simpler, better and more balanced. This strategic plan is intended to enable the Barclays Group to improve its customer service, provide more support to consumers and businesses, deliver higher quality income growth and build returns. Accordingly, effective management of transformation projects is required to successfully deliver the Barclays Bank Group's strategic priorities, involving delivering both on externally driven programmes, as well as key business initiatives to deliver revenue growth, product enhancement and operational efficiency outcomes. The magnitude, complexity and, at times, concurrent demands of the projects required to meet these priorities can result in heightened execution risk. The ability to execute the Barclays Bank Group’s strategy may be limited by operational capacity and the increasing complexity of the regulatory environment in which the Barclays Bank Group operates. In addition, whilst the Barclays Bank Group continues to pursue cost management initiatives, they may not be as effective as expected and cost saving targets may not be met. The failure to successfully deliver or achieve any of the expected benefits of these strategic initiatives and/or the failure to meet customer and stakeholder expectations could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition, customer outcomes, prospects and reputation. vi) Card Partnerships The Barclays Bank Group maintains several co-branded credit cards and credit card partnership agreements in the US. Such arrangements are a means of reaching new customers and expanding brand reach, but there is significant competition among card issuers for these relationships. A deterioration in or failure to maintain these credit card relationships with co-brand partners, including non-renewal of contracts with existing partners, early termination of partnership arrangements due to a contractual breach and changes in consumer behaviour regarding spending patterns, could have a negative impact on the Barclays Bank Group’s business, results of operations, financial condition and prospects. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 131 | ## Risk review ## Material existing and emerging risks #### Material existing and emerging risks impacting individual principal risks i) Climate risk Climate risk is the risk of financial losses arising from climate change, through physical risks and risks associated with transitioning to a lower carbon economy. The effects of climate change may be highly significant in their breadth and magnitude and could affect a large number of firms operating in different sectors and geographies, leading to potential downstream effects to the financial system. There is a potential direct impact on banks and other financial institutions through their operations, as well as indirectly through customers and clients. Given this context and to support the Group’s ambition to be a net zero bank by 2050, Climate Risk is a Principal Risk under Barclays’ ERMF. It manages the financial and operational risks of climate change. Physical risks, such as acute weather events (e.g. cyclones, hurricanes and floods) and long-term climate pattern shifts (e.g. droughts, temperature and precipitation levels) can lead to damage to fixed assets, operational disruptions, changes in production outputs and increased costs. The potential impacts of physical risk events on the economy may include lower GDP growth, higher unemployment, shortage of raw materials and products, supply chain disruptions, significant fluctuations in prices of assets (such as in the real estate sector) and shifting demands for goods and service. These factors could subsequently impact the business model and profitability of Barclays Bank Group and its clients by negatively impacting, among other things: (1) the creditworthiness of clients which may result in higher defaults, delinquencies, write-offs and impairment charges in Barclays Bank Group’s portfolios; (ii) the creditworthiness of the sovereigns of countries in which they occur. The deterioration in the credit ratings of sovereign bonds could affect their access to capital and their eligibility for inclusion in banks' liquidity buffers; and (iii) the value of investments which Barclays Bank Group holds. A transition to a low-carbon economy requires policy and regulatory changes, new national and regional commitments, new technological innovations and changes to supply and demand systems within industries. The transition to a low-carbon economy may also trigger changes in consumer behaviour and market sentiment. This gives rise to transition risks from increased costs and reduced demand for the products and services of a company including early retirement and impairment of assets, or decreased revenue and profitability. Barclays Bank Group’s clients that are more susceptible and exposed to these changes may face operational and financial difficulties which in turn may impact their creditworthiness. In addition, climate-related legal actions or investigations, may have material financial impacts on the Barclays Bank Group's clients, customers and counterparties (particularly in high carbon sectors). This in turn can increase credit risk within Barclays Bank Group's portfolios (for further details on credit risk, refer to ii) Credit Risk on page [132](#ia16d0659cd524c01ae655d82fa382c3d_118)). Both physical risk and transition risk factors have the potential to trigger large, sudden and negative price adjustments where climate risk has not yet been incorporated into prices, which could increase market risk in the Barclays Bank Group’s portfolios. Fluctuations in markets and prices of assets in susceptible sectors or countries could drive losses to the value of the Barclays Bank Group’s assets and liabilities. Physical risk and transition risk factors can lead to impacts on the Barclays Bank Group’s own operations including damage or unsuitability of premises, disruption to business operations and supply chains and Barclays Bank Group's ability to recover from outages (e.g. caused by workforce, technology and third-party service providers). For example, extreme weather events can impact the operation of bank offices, branches, and support facilities such as data centres. Additionally, Barclays Bank Group has experienced and may continue to experience in the future, disruptions in its operations as a result of branch closures and security breaches due to climate-related protests against the Bank in respect of its lending activities. Transition risk can also lead to secondary impacts on operational risks, such as the risk of misreporting as a result of enhanced regulatory disclosures requirements. There is significant uncertainty surrounding the timeframes in which both physical and transition risks may manifest, driven by the interplay of environmental, political and societal factors. Physical risks, such as acute weather events and long-term climate pattern shifts, are difficult to predict due to complex interactions between climate system dynamics and human activities. Similarly, the timing of transition risks arising from factors like policy changes, technological innovations or shifts in market sentiment are equally unpredictable. This poses significant challenges to the Barclays Bank Group in assessment, quantification, and management of climate risk. Barclays Bank Group also needs to ensure that its strategy and business model adapt to changing national and international standards, industry and scientific practices, regulatory requirements and market expectations regarding climate change, which remain under continuous development. The Barclays Bank Group may face challenges from changing circumstances and external factors which are beyond the Barclays Bank Group’s control, including geopolitical issues, energy security, energy poverty and other considerations such as a just transition to a low-carbon economy. Achieving the Group's climate-related ambitions and targets (which includes Barclays Bank Group's portfolios) will also depend on a number of factors outside the Group's control, including reliable forecasts of hazards from physical climate models and availability of data / models to measure / assess climate impact on clients. The pathway to net zero is uncertain, complex and dependent on progress in various areas such as advances in low-carbon technologies, collective action by clients to meet their own net zero goals, and supportive public policies in markets where Barclays operates. If there is a lack of progress in the aforementioned areas, Barclays may fail to achieve its climate-related ambitions and targets, and this could have a material adverse effect on Barclays’ business, operations, financial condition, prospects and reputation. Barclays Bank Group is exposed to risks resulting from inconsistencies and conflicts in the manner in which climate policy is perceived in the regions where the Group operates. In particular, the divergence on climate risks standards and regulatory expectations across jurisdictions like the EU, UK and the US may lead to inconsistencies in reporting, risk assessment methodologies and compliance requirements, making it challenging for Barclays Group (including Barclays Bank Group) to adopt a unified approach to managing climate risk and meeting regulatory reporting obligations. This fragmentation increases operational complexity, and the cost of compliance and undermines the Group's ability to effectively manage climate risks, including transition risks associated with high-emitting clients. The Group's business and operations have been and may continue to be, adversely impacted by the perception that the Group’s response to climate change is ineffective, insufficient or otherwise inappropriate, For further details on the Barclays Bank Group’s approach to climate change, refer to the climate risk management section. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 132 | ## Risk review ## Material existing and emerging risks ii) Credit risk Credit risk is the risk of loss to the Barclays Bank Group from the failure of clients, customers or counterparties, including sovereigns, to fully honour their obligations to members of the Group, including the whole and timely payment of principal, interest, collateral, and other receivables. Credit risk is impacted by a number of factors outside the Group’s control, including wider economic conditions. a) Impairment Impairment is calculated in line with the requirements of IFRS9. Loss allowances, based on ECLs, are measured on a forward-looking basis using a broad range of financial metrics and application of complex judgements. Accordingly, impairment charges are potentially volatile and may not successfully predict actual credit losses, particularly under stressed conditions. Failure by the Barclays Bank Group to accurately estimate credit losses through ECLs could have a material adverse effect on the Barclays Bank Group's business, results of operations, financial condition, and prospects. For further details, refer to Note 8 of the financial statements on page [288](#ia16d0659cd524c01ae655d82fa382c3d_493). b) Specific portfolios, sectors and concentrations The Barclays Bank Group is subject to risks arising from changes in credit quality and recovery rates for loans and advances due from borrowers and counterparties. Additionally, the Barclays Bank Group is subject to a concentration of those risks where it has significant exposures to borrowers and counterparties in specific sectors, or to particular types of borrowers and counterparties. Any deterioration in the credit quality of such borrowers and counterparties could lead to lower recoverability from loans and advances, and higher impairment charges. Accordingly, any of the following areas of uncertainty could have a material adverse impact on the Barclays Bank Group's business, results of operations, financial condition, and prospects: ▪ Consumer affordability: whilst the pressures from increased cost of living eased in the latter half of 2024 as interest rates and inflation fell, this remains an area of focus. Macroeconomic factors, such as unemployment, high interest rates or broader inflationary pressures, which impact a customer’s ability to service debt payments, could lead to increased arrears in unsecured products. Additionally, there is potential US consumer credit weakness from all time high consumer debt and student loan debt which could strain consumer affordability, leading to higher arrears and ECLs. ▪ UK Retail, Hospitality and Leisure: despite holding up reasonably well during most of 2024, continuing cost of living pressures, falling consumer confidence, or other macroeconomic factors adversely affecting consumers could trigger a contraction in demand which, together with rising business costs and, for UK retail, a structural shift to online shopping, would add pressure to sectors heavily reliant on consumer discretionary spending. This represents a potential risk in the Barclays Bank Group’s UK corporate portfolio as a higher probability of default exists for retailers, hospitality providers and their landlords while these pressures remain. ▪ Leveraged Finance Underwriting: the Barclays Bank Group takes on non-investment grade underwriting exposures, including single name risk, particularly in the US and the UK. A more constructive market tone has been seen in 2024 with continued resilience on the demand side providing opportunity to distribute positions. This environment exists, however, against a backdrop of increased geopolitical risks that, were they to materialise, could adversely impact the Barclays Bank Group's ability to distribute its committed exposures without incurring losses. ▪ Oil & Gas sector: high energy market prices during 2024 have helped restore balance sheet strength to companies operating in this sector. In the short term, the sector is vulnerable to geopolitical shifts impacting supply and demand. In the longer term, costs associated with the transition towards renewable sources of energy may place greater financial demands on oil and gas companies. ▪ Air Travel: the sector has benefited from strong travel demand as it recovered from the COVID-19 pandemic. However, there remains a heightened risk to the revenue streams of the Barclays Bank Group’s clients and, consequentially, their ability to service debt obligation. These risks stem from the structural decline in higher margin business travel, consolidation within the European airline market, volatile oil prices, delays in the supply of aircraft, increasingly extreme weather patterns and concerns about the impact of air travel on climate change. ▪ Information Technology sector: companies may struggle to monetise their product offerings and face increasing reputational risk particularly as regulatory scrutiny increases. Given the nature of their activities, the Barclays Bank Group’s clients in this sector face heightened risk from data security breaches and ransomware and/or cyberattacks as well as from the malicious use of AI, all of which could negatively impact their ability to service debt obligations. • Resilient US economy with tight labour market: whilst the US labour market performed better than expected in 2024, there have been signs of weakness. The Barclays Bank Group continues to monitor closely consumer trends as it relates to personal saving rate, category spend - discretionary versus essential, high consumer debt levels, and the overall household net worth. The Barclays Bank Group also has large individual exposures to single name counterparties (such as brokers, central clearing houses, dealers, banks, mutual and hedge funds, and other institutional clients) in both its lending and trading activities, including derivative trades. The default of one such counterparty could cause contagion across clients involved in similar activities and/or adversely impact asset values should margin calls necessitate rapid asset disposals by that counterparty to raise liquidity. In addition, where such counterparty risk has been mitigated by taking collateral, credit risk may remain high if the collateral held cannot be monetised or has to be liquidated at prices which are insufficient to recover the full amount of the loan or derivative exposure. Any such defaults could have a material adverse effect on the Barclays Bank Group’s results due to, for example, increased credit losses and higher impairment charges. Impact to the creditworthiness of the Barclays Bank Group's clients, customers and counterparties (particularly in high carbon sectors), can also arise out of climate-related legal actions or investigations commenced against the Barclays Bank Group's clients, customers and counterparties (particularly in high carbon sectors), where outcomes of such actions have material financial impacts, which can in turn increase credit risk within Barclays Bank Group portfolios. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 133 | ## Risk review ## Material existing and emerging risks For further details on the Barclays Bank Group’s approach to credit risk, refer to the credit risk management and credit risk performance sections. iii) Market risk Market risk is the risk of loss arising from potential adverse changes in the value of the Barclays Bank Group’s assets and liabilities from fluctuation in market variables including, but not limited to, interest rates, foreign exchange rates, equity prices, commodity prices, credit spreads, implied volatilities and asset correlations. Economic and financial market uncertainties remain elevated, driven by geopolitical conflicts, uncertainties in future political policies and idiosyncratic market events, despite cooling inflation and easing monetary policy. A disruptive adjustment to lower interest rate levels and deteriorating trade and geopolitical tensions could heighten market risks for the Barclays Bank Group’s portfolios. In addition, the Barclays Bank Group’s trading business could be vulnerable were there to be a prolonged period of elevated asset price volatility, particularly if it adversely affects market liquidity. Such a scenario could impact the Barclays Bank Group’s ability to execute client trades and may also result in lower client flow-driven income and/or market-based losses on its existing portfolio of assets. These can include higher hedging costs from rebalancing risks that need to be managed dynamically as market levels and their associated volatilities change. Changes in market conditions could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects. For further details on the Barclays Bank Group’s approach to market risk, refer to the market risk management and market risk performance sections. iv) Treasury and capital risk There are three primary types of treasury and capital risk faced by the Barclays Bank Group: a. Liquidity risk Liquidity risk is the risk that the Barclays Bank Group is unable to meet its contractual or contingent obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. This could cause the Barclays Bank Group to fail to meet regulatory and/or internal liquidity requirements, make repayments of principal or interest as they fall due or to support day-to-day business activities. Key liquidity risks that the Barclays Bank Group faces include: ▪ Stability of the Barclays Bank Group’s deposit funding profile: deposits which are payable on demand or at short notice could be adversely affected by the Barclays Bank Group failing to preserve the current level of customer and investor confidence or as a result of competition in the banking industry. ▪ Ongoing access to wholesale funding: the Barclays Bank Group regularly accesses the money and capital markets to provide short- term and long-term unsecured and secured funding to support its operations. A loss of counterparty confidence, or adverse market conditions, could lead to a reduction in the tenor, or an increase in the costs, of the Barclays Bank Group's unsecured and secured wholesale funding or affect the Barclays Bank Group’s access to such funding. ▪ Impacts of market volatility: adverse market conditions, with increased volatility in asset prices, could: (i) negatively impact the Barclays Bank Group’s liquidity position through increased derivative margin requirements and/or wider haircuts when monetising liquidity pool securities; (ii) make it more difficult for the Barclays Bank Group to execute secured financing transactions; and (iii) expose the Barclays Bank Group to currency risk leading to increased cash flow currency mismatch. ▪ Intraday liquidity usage: increased cash and collateral requirements for payments and securities settlement systems could negatively impact the Barclays Bank Group’s liquidity position, as cash and liquid assets required for intraday purposes are unavailable to meet other outflows. ▪ Off-balance sheet commitments: deterioration in economic and market conditions could cause customers to draw on off-balance sheet commitments provided to them, for example, revolving credit facilities, negatively affecting the Barclays Bank Group's liquidity position. ▪ Credit rating changes and impact on funding costs: any reductions in a credit rating (in particular, any downgrade below investment grade) may affect the Barclays Bank Group’s access to money or capital markets and/or the terms on which the Barclays Bank Group is able to obtain market funding. For example, this could lead to increased costs of funding and wider credit spreads, the triggering of additional collateral or other requirements in derivative contracts and other secured funding arrangements, or limits on the range of counterparties who are willing to enter into transactions with the Barclays Bank Group. b. Capital risk Capital risk is the risk that the Barclays Bank Group has an insufficient level or composition of capital to support its normal business activities and to meet its regulatory capital requirements under normal operating environments and stressed conditions (both actual and as defined for internal planning or regulatory stress testing purposes). This also includes the risk from the Barclays Bank Group’s pension plans. Key capital risks that the Barclays Bank Group faces include: ▪ Failure to meet prudential capital requirements: this could lead to the Barclays Bank Group being unable to support some or all of its business activities, a failure to pass regulatory stress tests, increased cost of funding due to deterioration in investor appetite or credit ratings, restrictions on distributions and/or the need to take additional measures to strengthen the Barclays Bank Group's capital or leverage position. ▪ Adverse changes in FX rates impacting capital ratios: the Barclays Bank Group has capital resources, risk weighted assets and leverage exposures denominated in foreign currencies. Changes in foreign currency exchange rates may adversely impact the sterling equivalent | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 134 | ## Risk review ## Material existing and emerging risks value of these items. As a result, the Barclays Bank Group’s regulatory capital ratios are sensitive to foreign currency movements. Failure to appropriately manage the Barclays Bank Group’s balance sheet to take account of foreign currency movements could result in an adverse impact on the Barclays Bank Group’s regulatory capital and leverage ratios. ▪ Adverse movements in the pension fund: adverse movements in pension assets and liabilities for defined benefit pension schemes could result in deficits on a technical provision and/or IAS 19 accounting basis. This could lead to the Barclays Bank Group making substantial additional contributions to its pension plans and/or a deterioration in its capital position. The market value of pension fund assets might decline; or investment returns might reduce. Under IAS 19, the liabilities discount rate is derived from the yields of high quality corporate bonds. Therefore, the valuation of the Barclays Bank Group’s defined benefits schemes would be adversely affected by a prolonged fall in the discount rate due to a persistent low interest rate and/or credit spread environment. Inflation is another significant risk driver to the pension fund as the liabilities are adversely impacted by an increase in long-term inflation expectations. c. Interest rate risk in the banking book Interest rate risk in the banking book is the risk that the Barclays Bank Group is exposed to capital or income volatility because of a mismatch between the interest rate exposures of its (non-traded) assets and liabilities. This also includes credit spread risk in the banking book, the risk that the Barclays Bank Group is exposed to capital or income volatility because of changes in credit spreads on its (non- traded) assets and liabilities. The Barclays Bank Group’s hedging programmes for interest rate risk in the banking book rely on behavioural assumptions and, as a result, the effectiveness of the hedging strategy cannot be guaranteed. A potential mismatch in the balance or duration of the hedging assumptions could lead to earnings deterioration if there are interest rate movements which are not adequately hedged. A decline in interest rates may also compress net interest margins on retail and corporate portfolios. In addition, the Barclays Bank Group’s liquid asset portfolio is exposed to potential capital and/or income volatility due to movements in market rates and prices which may have a material adverse effect on the capital position of the Barclays Bank Group. For further details on the Barclays Bank Group’s approach to treasury and capital risk, refer to the treasury and capital risk management and treasury and capital risk performance sections. v) Operational risk Operational risk is the risk of loss to the Group from inadequate or failed processes or systems, human factors or due to external events where the root cause is not due to credit or market risks. Examples include: a) Operational resilience The Barclays Bank Group functions in a highly competitive market, with customers and clients that expect consistent and smooth business processes. The loss of or disruption to business processing is a material inherent risk within the Barclays Bank Group and across the financial services industry, which has impacted the Barclays Bank Group in the past and may continue to impact the Barclays Bank Group in the future, whether arising through failures in the Barclays Bank Group’s technology systems, cyber and/or data integrity disruptions, unavailability of a Barclays Bank Group site, or unavailability of personnel or services supplied by third parties. A challenge for the Barclays Bank Group, as for virtually all companies, is the ability to recover from and remain within impact tolerance for a pervasive cyberattack which impacts a number of applications, data and infrastructure services. Failure to build resilience and recovery capabilities into business processes, or into the services on which the Barclays Bank Group’s business processes depend, may result in significant customer harm, costs to reimburse losses incurred by the Barclays Bank Group’s customers and clients, and reputational damage. There are also risks associated with increasing regulatory focus and new developments on operational resilience, which are considered in risk factor (iv) ‘Regulatory change agenda and impact on business model’ above. b) Cyberattacks Cyberattacks continue to be a global threat inherent across all industries, with the number and severity of attacks continuing to rise. The financial sector remains a primary target for cybercriminals, hostile nation states (including nation-state-sponsored groups), opportunists and hacktivists. The Barclays Bank Group experiences numerous attempts to compromise its cybersecurity protections. In 2024, cybersecurity incidents experienced by the Barclays Bank Group included distributed denial of service (DDoS), phishing, and credential stuffing. The Barclays Bank Group cannot provide absolute security against cyberattacks. Malicious actors, who are increasingly sophisticated in their methods, tactics, techniques and procedures, seek to steal money, gain unauthorised access to, destroy or manipulate data, and disrupt operations. Further, some attacks may not be recognised or discovered until launched or after initial entry into the environment, such as novel or zero-day attacks that are launched before patches are available and defences can be readied. Other attacks may take advantage of the window during which patching or the deployment of other defences is underway, but not yet complete. Malicious actors are also increasingly developing methods to avoid detection and alerting capabilities, including by employing counter-forensic tactics making response activities more difficult. Cyberattacks can originate from a wide variety of sources and target the Barclays Bank Group in numerous ways, including via the Barclays Bank Group's networks, systems, applications, devices, or parties such as service providers and other suppliers, counterparties, employees, contractors, customers or clients, presenting the Barclays Bank Group with a vast and complex defence perimeter. Moreover, the Barclays Bank Group does not have direct control over the cybersecurity of the systems of its clients, customers, counterparties and third party service providers and suppliers, limiting the Barclays Bank Group’s ability to effectively protect and defend against certain threats. Some of the Barclays Bank Group’s third party service providers and suppliers have experienced successful attempts to compromise their cybersecurity. These have included incidents resulting in the compromise of the Barclays Bank Group's data and ransomware attacks that disrupted service providers’ or suppliers’ operations and, in some cases, have had impacts on the Barclays Bank Group's operations. Such cyberattacks are likely to continue. Many of the Barclays Bank Group’s agreements with third parties include liability or indemnification provisions, but the Barclays Bank Group may not be able to recover sufficiently, or at all, under these provisions to adequately offset any losses or other adverse impacts the Barclays Bank Group may incur from third party incidents. Inadequacies in, or failures in the adherence to, the Barclays Bank Group's cybersecurity policies, procedures or controls; failure to keep pace with evolving technology; instances of employee negligence, recklessness, malfeasance, poor password management, or susceptibility to | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 135 | ## Risk review ## Material existing and emerging risks social engineering; misconfigurations in technology and security infrastructure; authentication and access management lapses; imperfect control frameworks or operational effectiveness; and human, governance or technological error could also compromise the Barclays Bank Group’s ability to successfully prevent and defend against cyberattacks. Furthermore, certain legacy technologies that are at or approaching end-of-life may not be able to maintain acceptable levels of security. The Barclays Bank Group's assessment of its cybersecurity risk in 2024 highlighted an elevated cybersecurity risk profile, due to factors such as the onset of AI, which may be used to facilitate increasingly sophisticated attacks, including AI-enabled social engineering; ongoing work to address areas in need of enhancement identified through cybersecurity testing; bad actors’ increasing ability to elude our defences and take advantage of customer and employee behaviours in novel ways; geopolitical turmoil that could impact the Barclays Bank Group directly, or indirectly through its critical suppliers or national infrastructure, including escalating conflicts in Eastern Europe and the Middle East. Certain cybersecurity risks to the Barclays Bank Group may be unknown to management and therefore not fully accounted for in the Barclays Bank Group's cybersecurity assessments, strategy and programme priorities. For example, we continue to implement enhancements identified through cybersecurity testing and reviews in 2024. Common types of cyberattacks include deployment of malware to obtain covert access to systems and data; ransomware attacks that render systems and data unavailable through encryption and attempts to leverage business interruption or stolen data for extortion; novel or zero-day exploits; denial of service and distributed denial of service attacks; infiltration via business email compromise; social engineering, including phishing, vishing and smishing; automated attacks using botnets; third party customer, vendor, service provider and supplier account takeover; malicious activity facilitated by an insider; and credential validation or stuffing attacks using login and password pairs from unrelated breaches. A successful cyberattack of any type has the potential to cause serious harm to the Barclays Bank Group or its clients and customers, including exposure to potential contractual liability, claims, litigation, regulatory or other government action, loss of existing or potential customers, damage to the Barclays Bank Group’s brand and reputation, and other financial loss. The impact of a successful cyberattack is also likely to include operational consequences (such as unavailability of services, networks, systems, devices or data), remediation of which could come at significant cost. While the Barclays Bank Group maintains insurance coverage that may, subject to relevant retentions, cover certain types of losses related to cybersecurity incidents, such insurance coverage may be insufficient to cover all losses and may not take into account potential loss of business or other financial harm. Regulators worldwide continue to recognise cybersecurity as a systemic risk to financial markets and have highlighted the need for financial institutions to improve their monitoring and control of, and resilience to, cyberattacks. A successful cyberattack may, therefore, result in significant fines and penalties to the Barclays Bank Group. In addition, any new regulatory measures introduced to mitigate these risks are likely to result in increased technology and compliance costs for the Barclays Bank Group. c) New and emergent technology Technology is fundamental to the Barclays Bank Group’s business and the financial services industry. Technological advancements present opportunities to develop new and innovative ways of doing business across the Barclays Bank Group, with new solutions being developed both in-house and in association with third party companies. For example, the digitalisation of payment services and securities as well as futures and options trading, increasingly occurring electronically, both on the Barclays Bank Group’s own systems and through other alternative systems, and becoming automated. The rapid development in AI is another area the Barclays Bank Group is monitoring closely. This includes the identification of potential use cases for responsible adoption of AI in the Barclays Bank Group’s own operations as well as managing the salient risks and other threats third party usage of AI may pose, including with respect to intellectual property ownership and infringement, cybersecurity, antitrust and fraud. For example, while the Barclays Bank Group may use AI technologies in connection with the creation or development of various materials, including software code, the Barclays Bank Group may be unable to protect such materials with copyrights or patents given the position of courts and intellectual property offices in the United States and in some other jurisdictions that human inventorship is required for patent protection of an AI-generated invention and human authorship is required for copyright protection of an AI-generated work of authorship. This is still an evolving area of the law, which creates uncertainty that could impact the Barclays Bank Group’s ability to obtain intellectual property protection in AI-generated inventions and works of authorship. Introducing new forms of technology has the potential to increase inherent risk. Failure to evaluate, actively manage and closely monitor risk during all phases of business development and implementation could introduce new vulnerabilities and security flaws and have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects. d) Fraud The nature of fraud is wide-ranging and continues to evolve, as criminals seek opportunities to target the Barclays Bank Group’s business activities and exploit changes in customer behaviour and product and channel use (such as the increased use of digital products and enhanced online services). Fraud attacks vary, can be highly sophisticated, and can be orchestrated by organised crime groups or individuals. Fraudsters use various techniques to target customers and colleagues directly (i.e. third party fraud) or Barclays Bank Group directly (i.e. first party fraud). In the UK, APP (Authorised Push Payment) scams are a growing fraud type where customers are deceived to transfer funds from their accounts to bad actors. Fraud can also be committed by one or more employees and workers of an entity (i.e. internal fraud) or may manifest as unauthorised trading fraud. The impact from fraud can lead to customer harm, financial losses to both the Barclays Bank Group and its customers, loss of business, missed business opportunities and reputational damage, all of which could have a material adverse impact on the Barclays Bank Group’s business, results of operations, financial condition and prospects. e) Data management, information protection and AI The Barclays Bank Group holds and processes large volumes of data, including personal information, financial data and other confidential information, and the Barclays Bank Group’s businesses are subject to complex and evolving laws and regulations governing the privacy and protection of data, including Regulation (EU) 2016/679 (the General Data Protection Regulation as it applies in the EU and the UK). This data could relate to: (i) the Barclays Bank Group’s clients, customers, prospective clients and customers, and their employees; (ii) clients and customers of the Barclays Bank Group’s clients and customers, and their employees; (iii) the Barclays Bank Group’s suppliers, counterparties and other external parties, and their employees; and (iv) the Barclays Bank Group’s employees and prospective employees. This data may also be held and processed for the Barclays Bank Group by third-party vendors, partners, or suppliers which therefore exposes the Barclays Bank Group to risks from vulnerabilities and non-compliance in its supply chain. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 136 | ## Risk review ## Material existing and emerging risks The international nature of both the Barclays Bank Group’s business and its IT infrastructure also means that data and personal information may be available in countries other than those from where the information originated. Accordingly, the Barclays Bank Group must ensure that its collection, use, transfer and storage of data, including personal information complies with all applicable laws and regulations in all relevant jurisdictions, which could: (i) increase the Barclays Bank Group’s compliance and operating costs; (ii) impact the development of new products or services, or the offering of existing products or services; (iii) affect how products and services are offered to clients and customers; (iv) demand significant oversight by the Barclays Bank Group’s management; and (v) require the Barclays Bank Group to review some elements of the structure of its businesses, operations and systems in less efficient ways. Data, including personal information, is subject to external as well as internal (whether intentional or accidental) security risks. Concerns regarding the effectiveness of the Barclays Bank Group’s measures to safeguard data, including personal information, or even the perception that those measures are inadequate, could expose the Barclays Bank Group to the risk of loss or unavailability of data or data integrity issues and/or cause the Barclays Bank Group to lose existing or potential clients and customers, and thereby reduce the Barclays Bank Group’s revenues. Furthermore, any failure or perceived failure by the Barclays Bank Group to comply with applicable privacy or data protection laws and regulations may subject it to potential contractual liability, claims, litigation, regulatory or other government action (including significant regulatory fines) and require changes to certain operations or practices which could also inhibit the Barclays Bank Group’s development or marketing of certain products or services, or increase the costs of offering them to customers. Any of these events could damage the Barclays Bank Group’s reputation, subject the Barclays Bank Group to material fines or other monetary penalties, make the Barclays Bank Group liable for the payment of compensatory damages, divert management's time and attention, lead to enhanced regulatory oversight and otherwise materially adversely affect its business, results of operations, financial condition and prospects. In addition, increased adoption of AI technologies, which rely on the collection of large amounts of data, including personal information, and use of such data for training purposes, has led legislators in numerous jurisdictions to propose and adopt new laws addressing AI- related usage of personal information and data protection authorities around the world to adopt new and evolving interpretations of existing data protection laws in light of such technology, in both cases, imposing specific obligations with respect to the processing of personal information, including required notices, consents and opt-outs. These obligations may be burdensome and costly to comply with and may affect the ways in which the Barclays Bank Group can collect, process, or use personal information for AI technologies, thus negatively impacting the Barclays Bank Group’s business. Further, there is increased risk of inadvertent disclosure of confidential information or personal information in connection with the utilisation of AI technologies, whether through AI model errors, data breaches, or other vulnerabilities, which may also result in stronger regulatory scrutiny, leading to legal and regulatory investigations and enforcement actions that could negatively impact the Barclays Bank Group’s business, even if unfounded. For further details on data protection regulation applicable to the Barclays Bank Group, refer to the supervision and regulation section. f) Algorithmic trading In some areas of the investment banking business, trading algorithms are used to price and risk manage client and principal transactions. An algorithmic error or hallucination could result in erroneous or duplicated transactions, a system outage, or impact the Barclays Bank Group’s pricing abilities, which could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition, prospects and reputation. g) Processing errors The Barclays Bank Group’s businesses are highly dependent on its ability to process and monitor, on a daily basis, a very large number of transactions, many of which are highly complex and occur at high volumes and frequencies, across numerous and diverse markets in many currencies. Given Barclays Bank Group’s diverse customer base and geographical reach and the increase in volume, speed, frequency and complexity of transactions, especially electronic transactions (as well as the requirements to report such transactions on a real-time basis to clients, regulators and exchanges), developing, maintaining and upgrading operational systems and infrastructure becomes more challenging. The risk of systems or human error, including errors produced through the integration of AI technologies, in connection with such transactions increases with these developments, as well as the potential consequences of such errors due to the speed and volume of transactions involved and the potential difficulty associated with discovering errors quickly enough to limit the resulting consequences. As the Barclays Bank Group works to implement AI technologies into the Barclays Bank Group’s product and service offerings, these challenges may become more significant, as AI technologies give rise to risk of bias, errors and hallucinations which may impact the Barclays Bank Group’s ability to accurately execute, track or report transactions. There can be no assurances that AI usage will enhance the Barclays Bank Group’s product or services offerings, and any such errors or inaccuracies resulting from AI usage could result in competitive or reputational harm or increased legal liability. Furthermore, events that are wholly or partially beyond the Barclays Bank Group’s control, such as a spike in transaction volume, could adversely affect the Barclays Bank Group’s ability to process transactions or provide banking and payment services. Processing errors could result in the Barclays Bank Group, among other things: (i) failing to provide information, services and liquidity to clients and counterparties in a timely manner; (ii) failing to settle and/or confirm transactions; (iii) causing funds transfers, capital markets trades and/or other transactions to be executed erroneously, illegally or with unintended consequences; and (iv) adversely affecting financial, trading or currency markets. Any of these events could materially disadvantage the Barclays Bank Group’s customers, clients and counterparties (including them suffering financial loss) and/or result in a loss of confidence in the Barclays Bank Group which, in turn, could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects. Any of these events could also lead to breaches of laws, rules or regulations and, hence, regulatory enforcement actions, which could result in significant financial loss, imposition of additional capital requirements, enhanced regulatory supervision and reputational damage. h) Supplier exposure The Barclays Bank Group depends on suppliers for the provision of many of its services and the development of technology, including AI technology. Whilst the Barclays Bank Group depends on suppliers, it remains fully accountable to its customers and clients for risks arising from the actions of suppliers and may not be able to recover from its suppliers any amounts paid to customers and clients for losses suffered by them. The dependency on suppliers and sub-contracting of outsourced services introduces concentration risk where the failure of specific suppliers could have an impact on the Barclays Bank Group’s ability to continue to provide material services to its customers. In addition, the use of third party AI technologies may also expose the Barclays Bank Group to third party infringement or misappropriation claims, as well as privacy and data protection related claims, as it can be very difficult, if not impossible, to validate the processes used by | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 137 | ## Risk review ## Material existing and emerging risks third-party AI technology providers in their collection and use of data in developing and training AI technologies or the conversion of inputs to outputs. Failure to adequately manage supplier risk could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects. i) Estimates and judgements relating to critical accounting policies and regulatory disclosures The preparation of financial statements requires the application of accounting policies and judgements to be made in accordance with IFRS. Regulatory returns and capital disclosures are prepared in accordance with the relevant capital reporting and liquidity requirements and also require assumptions and estimates to be made. The key areas involving a higher degree of judgement or complexity, or areas where assumptions are significant to the consolidated and individual financial statements and regulatory returns and disclosures, include credit impairment provisions, taxes, fair value of financial instruments, pensions and post-retirement benefits, the calculation of RWAs, capital and liquidity metrics, and provisions including conduct and legal, competition and regulatory matters (please refer to the notes to the audited financial statements for further details). There is a risk that if the judgement exercised, or the estimates or assumptions used, subsequently turn out to be incorrect or are altered as a result of assurance work or subsequent feedback from the Barclays Bank Group's regulators, this could result in material losses to the Barclays Bank Group, beyond what was anticipated or provided for, including as a result of changes to treatments or stated capital or liquidity in regulatory returns and capital and liquidity disclosures. If capital and liquidity requirements are not met as a result of changes in interpretation, compliance with the Barclays Bank Group's distribution policy could be impacted and/or additional measures may be required to strengthen the Barclays Bank Group's capital or leverage position, which may also lead to the Barclays Bank Group's inability to achieve stated targets. Further development of accounting standards and regulatory interpretations could also materially impact the Barclays Bank Group’s results of operations, financial condition and prospects. j) Tax risk The Barclays Bank Group is required to comply with the domestic and international tax laws and practice of all countries in which it has business operations. There is a risk that the Barclays Bank Group could suffer losses due to additional tax charges, other financial costs or reputational damage as a result of failing to comply with such laws and practice (including where the Barclays Bank Group’s interpretation of such laws differs from the interpretation of tax authorities), or by failing to manage its tax affairs in an appropriate manner, with much of this risk attributable to the international structure of the Barclays Bank Group. In addition, the introduction of new international tax regimes, increasing tax authority focus on reporting and disclosure requirements around the world as well as the digitalisation of the administration of tax have the potential to increase the Barclays Bank Group’s tax compliance obligations further. In 2023, the UK Government enacted legislation on the OECD Inclusive Framework on Base Erosion and Profit Shifting Pillar Two Framework introducing a global minimum tax rate of 15%. The UK’s Pillar Two rules applied from 1 January 2024 and increased the Barclays Bank Group's tax compliance obligations. In the US, the corporate alternative minimum tax on adjusted financial statements income introduced by the Inflation Reduction Act became effective on 1 January 2023. These tax regimes require systems and process changes that introduce potential additional operational risks. k) Ability to hire and retain appropriately qualified employees As a regulated financial institution, the Barclays Bank Group requires diversified and specialist skilled colleagues. The Barclays Bank Group’s ability to attract, develop and retain a diverse mix of talent is key to the delivery of its core business activity and strategy. This is impacted by a range of external and internal factors, such as macroeconomic factors, labour, immigration and related policies in the jurisdictions in which the Barclays Bank Group operates, and regulatory limits on compensation for senior executives. Failure to attract or prevent the departure of appropriately qualified and skilled employees could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects. Additionally, this may result in disruption to service which could in turn lead to customer harm and reputational damage. For further details on the Barclays Bank Group’s approach to operational risk, refer to the operational risk management and operational risk performance sections. vi) Model risk Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. The Barclays Bank Group relies on models to support a broad range of business and risk management activities, including informing business decisions and strategies, measuring and limiting risk, valuing exposures (including the calculation of impairment), conducting stress testing, calculating RWAs and assessing capital adequacy, supporting new business acceptance, risk and reward evaluation, managing client assets, and meeting reporting requirements. Models are imperfect representations of reality as they rely on simplifying assumptions; as such they are subject to intrinsic uncertainty as well as errors and inappropriate use. This may be exacerbated when dealing with unprecedented scenarios, as was the case during the COVID-19 pandemic, when simplifying assumptions were required due to the lack of reliable historical reference points and data. Model uncertainty, errors and inappropriate use may result in (among other things) the Barclays Bank Group making inappropriate business decisions and/or inaccuracies or errors in the Barclays Bank Group's risk management and regulatory reporting processes. This could result in a significant financial loss, imposition of additional capital requirements, enhanced regulatory supervision and reputational damage, all of which could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects. For further details on the Barclays Bank Group’s approach to model risk, refer to the model risk management and model risk performance sections. vii) Compliance risk Compliance Risk is the risk of poor outcomes for, or harm to, customers, clients and markets, arising from the delivery of the Barclays Bank Group's products and services (Compliance Risk) and the risk to the Barclays Bank Group, its clients, customers or markets from a failure to comply with the laws, rules and regulations (LRR) applicable to the firm (LRR risk). This risk could manifest itself in a variety of ways, including: a) Market conduct The Barclays Bank Group’s businesses are exposed to risk from potential non-compliance with its policies and standards (which incorporates regulatory requirements set by law and the Barclays Bank Group's regulators) and instances of wilful and negligent misconduct | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 138 | ## Risk review ## Material existing and emerging risks by employees, all of which could result in potential customer and client harm, enforcement action (including regulatory fines and/or sanctions), increased operation and compliance costs, redress or remediation or reputational damage which in turn could have a material adverse effect on the Barclays Bank Group’s business, financial condition and prospects. Examples of employee misconduct which could have a material adverse effect on the Barclays Bank Group’s business include: (i) improperly selling or marketing the Barclays Bank Group’s products and services; (ii) engaging in insider trading, market manipulation or unauthorised trading; or (iii) misappropriating confidential or proprietary information belonging to the Barclays Bank Group, its customers or third parties. These risks may be exacerbated in circumstances where the Barclays Bank Group is unable to rely on physical oversight and supervision of employees, noting the move to a hybrid working model for many colleagues. b) Customer protection The Barclays Bank Group must ensure that its customers, particularly those that are vulnerable, are able to make well-informed decisions on how best to use the Barclays Bank Group’s financial services and understand the protection available to them if something goes wrong. Poor customer outcomes can result from the failure to: (i) communicate fairly and clearly with customers; (ii) provide services in a timely and fair manner ; (iii) handle and protect customer data appropriately; and (iv) undertake appropriate activity to address customer harm, including the adherence to regulatory and legal requirements on complaint handling. The Barclays Bank Group is at risk of financial loss and reputational damage as a result, as well as the risk of regulatory censure or enforcement action. c) Product design and review risk Products and services must meet the needs of clients, customers, markets and the Barclays Bank Group throughout their life cycle. However, there is a risk that the design and review of the Barclays Bank Group products and services fail to reasonably consider and address potential or actual negative outcomes for customers, which may result in customer harm, enforcement action (including regulatory fines and/or sanctions), redress and remediation and reputational damage. Both the design and review of products and services are a key area of focus for regulators and the Barclays Bank Group. d) Conflicts of interest Identifying and managing conflicts of interest is fundamental to the conduct of the Barclays Bank Group's business, relationships with customers and clients, and the markets in which the Barclays Bank Group operates. Understanding the conflicts of interest that impact or potentially impact the Barclays Bank Group enables them to be handled appropriately. Even if there is no evidence of improper actions, a conflict of interest can create an appearance of impropriety that undermines confidence in the Barclays Bank Group and its Employees. If the Barclays Bank Group does not identify and manage conflicts of interest (business or personal) appropriately, it could have an adverse effect on the Barclays Bank Group’s business, customers and the markets within which it operates. e) Regulatory focus on culture and accountability Regulators around the world continue to emphasise the importance of culture and personal accountability and enforce the adoption of adequate internal reporting and whistleblowing procedures to help to promote appropriate conduct and drive positive outcomes for customers, colleagues, clients and markets. The requirements and expectations of the UK Senior Managers Regime, Certification Regime and Conduct Rules reinforce additional accountabilities for individuals across the Barclays Bank Group with an increased focus on governance and rigour, with similar requirements also introduced in other jurisdictions globally. Failure to meet these requirements and expectations may lead to regulatory sanctions, both for the individuals and the Barclays Bank Group. f)  Laws, rules and regulations Barclays is subject to a range of laws, rules and regulations across the world. A failure to comply with these may have an adverse effect on the Barclays Bank Group’s business, customers and the markets within which it operates and could result in reputational damage, penalties, damages or fines. For further details on the Barclays Bank Group’s approach to Compliance Risk, refer to the Compliance risk management and Compliance risk performance sections. viii)   Reputation risk Reputation risk is the risk that an action, transaction, investment, event, decision, or business relationship will reduce trust in the Barclays Bank Group’s integrity and/or competence. Any material lapse in standards of integrity, compliance, customer service or operating efficiency may represent a potential reputation risk. Stakeholder expectations constantly evolve, and so reputation risk is dynamic and varies between geographical regions, groups and individuals. A risk arising in one business area can have an adverse effect upon the Barclays Bank Group’s overall reputation and any one transaction, investment or event (in the perception of key stakeholders) can reduce trust in the Barclays Bank Group’s integrity and competence. The Barclays Bank Group’s association with sensitive topics and sectors has been, and in some instances continues to be, an area of concern for stakeholders, including: (i) the financing of, and investments in, businesses which operate in sectors that are sensitive because of their relative carbon intensity or local environmental impact; (ii) potential association with human rights violations (including combating modern slavery) in the Barclays Bank Group’s operations or supply chain and by clients and customers; and (iii) the financing of businesses which manufacture and export military and riot control goods and services. Reputation risk could also arise from negative public opinion about the actual, or perceived, manner in which the Barclays Bank Group (including its employees, clients and other associations) conducts its business activities, or the Barclays Bank Group’s financial performance, as well as actual or perceived practices in banking and the financial services industry generally. Modern technologies, in particular online social media channels and other broadcast tools that facilitate communication with large audiences in short time frames and with minimal costs, may significantly enhance and accelerate the distribution and effect of damaging information and allegations. Negative public opinion may adversely affect the Barclays Bank Group’s ability to retain and attract customers, in particular, corporate and retail depositors, and to retain and motivate staff. It could also have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects. Claims of potential greenwashing arising from sustainability-related statements made by the Barclays Group may also give rise to reputation risk. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 139 | ## Risk review ## Material existing and emerging risks In addition to the above, reputation risk has the potential to arise from operational issues or conduct matters which cause harm to customers, clients, market integrity, effective competition or the Barclays Bank Group (refer to ' v) Operational risk' above). For further details on the Barclays Bank Group’s approach to reputation risk, refer to the reputation risk management and reputation risk performance sections. ix) Legal risk and legal, competition and regulatory matters The Barclays Bank Group conducts diverse activities in a highly regulated global market which exposes it and its employees to legal risk arising from: (i) the multitude of laws, rules and regulations that apply to the activities it undertakes, which are highly dynamic, may vary between jurisdictions and/or conflict, and may be unclear in their application to particular circumstances especially in new and emerging areas; and (ii) the diversified and evolving nature of the Barclays Bank Group’s businesses and business practices. In each case, this exposes the Barclays Bank Group and its employees to the risk of loss or the imposition of penalties, damages or fines from the failure of members of the Barclays Bank Group to meet applicable laws, rules, regulations or contractual requirements or to assert or defend their intellectual property rights. Legal risk may arise in relation to any number of the material existing and emerging risks identified above. A breach of applicable laws, rules and/or regulations by the Barclays Bank Group or its employees could result in criminal prosecution, regulatory censure, potentially significant fines, remedial orders and other sanctions in the jurisdictions in which the Barclays Bank Group operates. Where clients, customers or other third parties are harmed by the Barclays Bank Group’s conduct, this may also give rise to civil legal proceedings, including class actions. Other legal disputes may also arise between the Barclays Bank Group and third parties relating to matters such as breaches or enforcement of legal rights or obligations arising under contracts, statutes or common law. Adverse findings in any such matters may result in the Barclays Bank Group being liable to third parties or may result in the Barclays Bank Group’s rights not being enforced or not being enforced in the manner intended or desired by the Barclays Bank Group. In the UK, the wider financial industry may be impacted by the October 2024 Court of Appeal judgments on commission arrangements in the motor finance industry, subject to the result of the appeals of those judgments to the Supreme Court, and to the FCA’s ongoing review of the motor finance market. In December 2024, the FCA announced an extension to the time motor finance firms have to handle complaints on lender commissions until after 4 December 2025, following on from the Court of Appeal’s judgments in Johnson v FirstRand Bank, Wrench v FirstRand Bank and Hopcroft v Close Brothers Ltd [2024] EWCA Civ 1282. The decisions in these cases could, subject to these appeals, impact the availability and terms of financing, risk of future claims, and likelihood of a FCA consumer redress scheme. There could also be wider market and industry implications of the judgments and/or the appeals, which could adversely affect the Barclays Bank Group’s business, results of operations, financial condition and prospects. Further details of legal, competition and regulatory matters to which the Barclays Bank Group is currently exposed are set out in Note 24. In addition to matters specifically described in Note 24, the Barclays Bank Group is engaged in various other legal proceedings which arise in the ordinary course of business. The Barclays Bank Group is also subject to requests for information, investigations and other reviews (including skilled person reviews) by regulators, governmental and other public bodies. These may be in connection with business activities in which the Barclays Bank Group is, or has been, engaged, or areas of particular regulatory focus, such as financial crime, money laundering or terrorist financing. The Barclays Bank Group may also (from time to time) be subject to claims and/or legal proceedings and other investigations relating to financial and non-financial disclosures made by members of the Barclays Bank Group (including, but not limited to, regulatory capital and liquidity reporting and ESG disclosures). Additionally, due to the increasing number of new climate and sustainability- related laws and regulations, growing demand from investors and customers for sustainable products and services, and regulatory and NGO scrutiny, financial institutions, including the Barclays Bank Group, may through their business activities face increasing litigation, conduct, enforcement and contract liability risks related to climate change, environmental degradation and other social, governance and sustainability-related issues. In particular, there has been an increasing focus on greenwashing risk this year. Certain stakeholders have taken legal action (including under "soft law" mechanisms) against the Barclays Bank Group, and others (including regulators, campaign groups and customers) may decide to do so in the future for allegedly financing or contributing to climate change and environmental degradation and other social, governance and sustainability-related issues, or because the Barclays Bank Group's response to climate change or other ESG factors is perceived to be ineffective, insufficient or inappropriate, including relative to the Barclays Bank Group's stated ambitions. Furthermore, there are laws and regulatory processes and policies seeking to restrict or prohibit doing certain business with entities identified as "boycotting" or "discriminating" against particular industries or considering ESG factors in their investment processes, including to protect the energy and other high carbon sectors from any risks of divestment or challenges in accessing finance. The outcome of legal, competition and regulatory matters, both those to which the Barclays Bank Group is currently exposed and any others which may arise in the future, is difficult to predict (and any provision made in the Group’s financial statements relating to those matters may not be sufficient to cover actual losses). In connection with such matters, the Barclays Bank Group may incur significant expense, regardless of the ultimate outcome, and any such matters could expose the Barclays Bank Group to any of the following outcomes: substantial monetary damages, settlements and/or fines; remediation of affected customers and clients; other penalties and injunctive relief; additional litigation; criminal prosecution; the loss of any existing agreed protection from prosecution; regulatory restrictions on the Barclays Bank Group’s business operations including the withdrawal of authorisations; increased regulatory compliance requirements or changes to laws or regulations; suspension of operations; public reprimands or censure; loss of significant assets or business; a negative effect on the Barclays Bank Group’s reputation; loss of confidence by investors, counterparties, clients and/or customers; risk of credit rating agency downgrades; potential negative impact on the availability and/or cost of funding and liquidity; and/ or dismissal or resignation of key individuals. In light of the uncertainties involved in legal, competition and regulatory matters, there can be no assurance that the outcome of a particular matter or matters (including formerly active matters or those arising after the date of this Annual Report) will not have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects. x) Financial crime risk Financial crime risk is the risk that the Barclays Bank Group and its associated persons (employees or third parties) commit or facilitate financial crime, and/or the Barclays Bank Group’s products and services are used to facilitate financial crime. Financial crime is categorised into four areas of risk, relating to, bribery & corruption, money laundering & terrorist financing, tax evasion facilitation and sanctions, including proliferation financing. The Barclays Bank Group is subject to numerous laws and regulations governing | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 140 | ## Risk review ## Material existing and emerging risks these areas, including certain “failure to prevent” offences whereby the the Barclays Bank Group may be liable for failure to prevent crimes carried out by persons associated with it. Bribery and corruption occur where a person improperly obtains or retains business, improperly secures a business or personal advantage and induces another person to perform their role in breach of an expectation of good faith, impartiality, or trust. Risks related to bribery and corruption may arise for the Barclays Bank Group in connection with (i) employees/prospective employees who have connections to external stakeholders, Politically Exposed Persons, or public officials; (ii) different types of payments and expenses such as facilitation payment requests, gifts and entertainment, charitable donations, commercial sponsorships and political donations; (iii) certain types of funding provided to customers with increased exposure to public officials; (iv) third parties who are engaged by the Barclays Bank Group to win or retain business; (v) the Barclays Bank Group's proprietary investments, joint ventures and mergers and acquisition or (vi) suppliers who act for and on behalf of the Barclays Bank Group. Money laundering and terrorist financing have been identified as major threats to the international financial services community and therefore to the Barclays Bank Group. The Barclays Bank Group must comply globally with UK legislation designed to prevent, detect and disrupt money laundering and to combat terrorism. As a transatlantic bank, the Barclays Bank Group also takes into account European Union (EU) and United States (US) Anti-Money Laundering and Counter Terrorist Financing requirements, as well as guidance issued by bodies such as the Wolfsberg Group and the European Banking Authority. Similarly, as a global financial institution, the Barclays Bank Group must comply with applicable sanctions laws and regulations in every jurisdiction in which it operates, or which apply to it because of its place of incorporation. Sanctions restrict activities with targeted countries, governments, entities, individuals, and industries. Tax evasion is a financial crime and a predicate offence to money laundering in the UK and in many other countries in which we operate. The Barclays Bank Group may be exposed to risks associated with tax evasion by virtue of its interactions with customers and clients or in connection with employees or third parties acting on our behalf. The laws and regulations associated with financial crime risks can have broad application and, in certain circumstances, may have extraterritorial application. Failure to appropriately manage the risks associated with these four areas undermines market integrity and may result in harm to the Barclays Bank Group’s clients, customers, counterparties or employees, diminished confidence in financial products and services, damage to the Barclays Bank Group's reputation, regulatory breaches and/or financial penalties. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 141 | ## Risk review ## Principal risk management | | | --- | | | | Climate risk management In Barclays' Climate Risk Framework (which applies to the Bank), Climate Risk is defined as the risk of financial losses arising from climate change, through physical risks and risks associated with transitioning to a lower carbon economy. Physical risk is defined as the risk of financial losses related to physical impacts of a changing climate. Physical risks can be event driven (acute risks), including increased frequency and/or severity of extreme weather events such as cyclones, hurricanes and flood. Longer term shifts in climate patterns (chronic risks) arise from sustained higher temperatures that may cause rises in sea levels, rising mean temperatures and more severe weather events such as increased occurrence of floods or fires. Transition risk is defined as the risk of financial losses caused by extensive policy, legal, technology and market changes to address mitigation and adaptation requirements related to climate change. | Overview The Barclays Group has developed a Climate Risk Framework (CRF) for financial and operational risks stemming from climate change. This enables Barclays to foster a consistent approach for managing climate risk across the firm. The key principle underpinning this framework is that climate risk is recognised as a driver of other existing financial (Credit, Market, Treasury and Capital) and non-financial (including Operational) risks, and not treated as a standalone risk type. The CRF is supported by policies, standards and other relevant guidelines which contain control objectives that must be met. The Climate Risk Framework: • Includes definitions and descriptions for climate risk • Includes key principles for the identification, measurement, monitoring and reporting of climate risk • Outlines the approach to setting risk appetite for climate risk • Outlines roles and responsibilities applicable to the Climate Risk Framework The Climate Risk Policy sets out high level requirements and control objectives to address key principles articulated in the CRF. The Climate Risk Standard sets out control requirements for implementing control objectives defined within the Climate Risk Policy. Climate risk considerations have also been incorporated as applicable to the frameworks of other principal risks. The Climate Risk Framework, Climate Risk Policy and Climate Risk Standard are applicable for Barclays Bank Group's business activities, with a focus on lending, capital markets and investments. Barclays Bank Group's approach to managing climate risk focuses on the effective, identification, prioritisation and mitigation of the material climate risks within it's portfolios. The approach is further customised to reflect portfolio characteristics, size and exposure to specific climate risk drivers within various portfolios. Climate risk may also drive non-financial risks such as reputational risk, which continue to be managed under their respective risk frameworks. To implement its Climate Risk Framework, Barclays Bank Group continually implements new processes, tools, models and data repository as applicable whilst also enhancing its existing tools and processes. The Barclays Bank Group regularly reviews its approach and practices for alignment with regulatory developments and leading practices for climate risk. Organisation, roles and responsibilities The Group Head of Climate Risk is the Principal Risk owner accountable for the management and oversight of the climate risk profile. The Group Head of Climate Risk reports directly to Group CRO. On behalf of the Board, the Group Board Risk Committee reviews and approves the Group's approach to managing climate risk. The Group Risk Committee (GRC) is the most senior executive body responsible for reviewing and challenging risk practices for climate. To support the oversight of climate risk profile, a Group Climate Risk Committee (CRC) has been established as a sub-committee of the GRC. The Group Head of Climate Risk is the Chair of the Group CRC. Any material issues are escalated by the Group CRC to the Group GRC, and the Group GRC subsequently escalates to the Group BRC as appropriate. A control environment for Climate Risk has been established in alignment with Barclays' Control Framework. The Climate Risk Control Forum (CRCF) oversees the implementation and operation of the Barclays Control Framework, including reviewing risk events, policy and issues management. Additionally, Climate Risk assurance groups  are responsible for performing climate risk specific reviews to support the embedding of the Climate Risk Framework. Reputation risk driven by climate change is managed by the reputation risk principal risk. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 142 | ## Risk review ## Principal risk management | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | Governance | Board Risk Committee (BRC) | | Board Sustainability Committee (BSC) | | | | | | | | | | Group Risk Committee (GRC) | | Group Sustainability Committee (GSC) | | | | | | | | | | | | | | | | | | | | | | | | | Risk | Credit, market, treasury & capital and operational risks | | Sustainability matters and reputation risk associated with climate change | | | | | | | | | Risk appetite The Groups (including the Bank) approach  to setting risk appetite for climate risk is aligned with its ambition to be a net zero bank by 2050 and reducing financed emissions in line with 2030 financed emissions targets. The climate risk considerations have been included in the qualitative statements and quantitative constraints. This is reviewed and revised (where applicable) annually and formally approved by the Group Board. Climate risk appetite established at a Group level is cascaded to the legal entities and managed through risk limits, triggers and indicators set across different Principal Risks (including, Credit Risk, Market Risk and Treasury & Capital Risk), portfolios, sectors, assets classes and products. The Group has progressively enhanced its approach for the quantification of climate risk appetite by implementing additional risk limits and triggers. Regular monitoring, reporting and governance provide oversight so that exposures remain within the appetite and corrective actions are taken to address any breaches or excesses. The Group (including the bank) continues to regularly review its risk appetite and makes enhancements to maintain alignment with the Group's strategic objectives as part of its business planning process. Risk identification Physical and transition risk drivers can lead to adverse financial impacts through various transmission channels. Transmission channels are causal chains that explain how climate risk drivers impact firms such as the Barclays Bank Group either directly through their own operations and infrastructure or indirectly through their financing and investment activities. Through these transmission channels, risks for Barclays Bank Group may materialise in its traditional risk categories such as credit risk, market risk, treasury and capital risk, and operational risk. The impact of climate risk drivers may be significant and widespread, affecting companies, households and the general economy leading to potential financial system contagion. Barclays Bank Group's work on assessing climate-related risks has been focused on the short (0-1 year) and medium term (1-5 years) horizons, in line with our financial planning cycle. However, longer-term climate (>5 years) risks have been considered using both quantitative approaches, such as reverse stress testing, and qualitative analysis. The  effects of climate risk drivers through macro and micro transmissions channels are observed in Barclays Bank Group's portfolio through traditional risk categories such as credit risk, market risk, treasury and capital risk, and operational risk (including legal risk). The below table provides examples of how Barclays' Climate Risk framework considers potential key effects  of climate risk drivers on Barclays' Principal Risk types. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 143 | ## Risk review ## Principal risk management | | | | --- | --- | | | | | Principal Risk | Example effects of climate risk drivers | | Credit risk | A changing climate (i.e. more frequent and more intense physical hazards) and society’s response (i.e. increased transition factors such as new policies or technologies to reduce carbon emissions) impacts Credit Risk. The impact on Credit Risk relates to the failure of clients, customers or counterparties to meet their obligations as a result of physical and transition risks, which may lead to potential losses and/or exposures outside the bank risk appetite in retail and wholesale credit portfolios. Climate change can drive direct impacts such as damage to fixed assets from physical hazards, leading to changes in output and increased costs. Indirect impacts may include material disruptions to supply chains and shifting demand for goods and services. Transition risk factors such as low-carbon policies or technologies could also change the value and creditworthiness of counterparties clients and customers. | | Market risk | The impact on Market Risk relates to potential adverse changes in the value of the firm's assets and liabilities from fluctuations in market variables as a result of physical and transition risks, which may lead to potential losses due to changes in equity and commodity prices and credit spreads. Either physical hazards or transition risk factors have the potential to trigger large, sudden and negative price adjustments where climate risk has not yet been incorporated into prices, driving additional Market Risk. Fluctuations in markets and prices in susceptible sectors or countries could drive losses to the value of the Bank’s assets and liabilities. | | Treasury & capital risk | The impact on Treasury & Capital Risk relates to the impact on the capital requirements and liquidity funding requirements as a result of physical and transition risks, which may lead to changes in capital plans, funding plan requirements, asset and liabilities management (ALM) and exposures to changes in interest rates. Climate events can drive Treasury & Capital Risk as counterparties draw down deposits and credit lines. Physical hazards, or transition factors could lead to increased volatility, which could in turn change the value of investments and drive changes to funding requirements and accessibility, capital planning, capital requirements, or hedging methodologies. | | Operational risk | Physical hazards and transition risk factors can lead to impacts on the firm’s own operations including damage or unsuitability of premises, disruption to business operations and supply chain and ability to recover from outages (e.g. caused by workforce, technology and third-party service providers). For example, extreme weather events can impact the operation of bank offices, branches, and support facilities such as data centres. The transition to a low- carbon economy can lead to changes in operational processes, for example to mitigate climate impacts we need to decarbonise our buildings or requirements to achieve more carbon efficient buildings. Transition risks  can also drive secondary impacts on operational risks such as the risk of misreporting as a result of enhanced regulatory disclosures requirements, or physical security breaches and branch closures as a result of protests related to Barclays' lending activities. | Barclays Bank Groups' climate risk identification includes monitoring of the external environment including regulatory developments, climate-related litigations and market developments for identifying climate risk drivers that could affect Barclays Bank Group's portfolios. In addition to horizon scanning, Barclays Bank Group has also developed processes to identify sectors, sovereigns and US States which other Principal Risks must prioritise for further analysis and risk management activities. Following this assessment, the industry sectors and geographies that are highly exposed to climate risks are deemed to be of elevated risk. These assessments are regularly reviewed and benchmarked against external studies and research and incorporate inputs from the subject matter experts. Horizon scanning and elevated climate risk sector and geography assessments form the basis of the Barclays Bank Groups' approach and priorities for further granular assessment.  Details on exposures to elevated sectors are on pages [154](#ia16d0659cd524c01ae655d82fa382c3d_181) to [157](#i94590d2b47574a3982d05e009eb86e7b_4476). Additionally, through individual client assessments and scenario analysis exercises, Barclays Bank Group identifies portfolios that are more vulnerable to climate risks. The risk identification processes have been broadened to encompass nature-related risks for Barclays Europe portfolios. Risk assessment The Bank uses its Risk Register process to assess the potential effects of climate risk drivers on its portfolios. The Risk Register contains key risks and vulnerabilities that may impact forward-looking business plans of the Barclays Bank Group and its business units. The materiality of climate risks is derived either quantitatively (typically based on stress testing) or through qualitative estimations. The potential impact is evaluated based on adverse but plausible scenario. The Risk Register is refreshed on at least an annual basis and is subsequently used to support strategic planning, risk management, scenario design, sensitivity analysis and capital adequacy assessments. For Credit Risk, Barclays Bank Group has integrated climate risk considerations into key processes of credit lifecycle  including  credit assessment, annual review and transaction approval processes. A questionnaire called the Climate & Environmental Lens has been developed for assessing corporate clients' vulnerability to climate and environmental risks in a structured way. The Climate and Environmental Lens questionnaire is used to evaluate climate physical risks, climate transition risks and environmental risks (as relevant) for corporate clients operating in elevated risk sectors. During 2024, the Lens was redeveloped to support decision-making by including a range of data points across both transition and physical risks and to improve its integration into credit processes. For Market Risk, the impact of climate change is measured by applying stress scenarios designed to examine the sensitivity of core risk factors to climate risk. This process is conducted every quarter. The pattern of stress losses arising from the stress scenario is used to estimate and set ongoing limits. For Treasury and Capital Risk (TCR), climate risk considerations have also been incorporated into the Internal Capital Adequacy Assessment Process (ICAAP) and Liquidity Adequacy assessment Process (ILAAP). Barclays Bank Group has integrated climate risk variables and climate stress scenarios in the  Group-wide internal stress testing framework to understand and quantify potential impact on Barclays Bank Group's capital position. For liquidity risk, the assessment is informed by the application of  industry and country classifications and evaluated using internal stress testing and portfolio specific analysis to determine material areas of risk (e.g. by asset class or product type) that could | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 144 | ## Risk review ## Principal risk management impact funding and liquidity ratios.  For Pension Risk, key risk indicators based on the impact of physical and transition risk drivers on the pension fund have been defined. These are reviewed and monitored on a quarterly basis. For operational risk, climate risks continue to be assessed as part of existing business-as-usual operational risk processes. This includes working with Premises and Operational Recovery Planning teams to evaluate and respond to climate-related impacts and regulatory requirements. Climate risk factors have been integrated into Structured Scenario Assessments, which capture extreme but plausible operational tail risks. For reputational risk, the primary responsibility for identifying and managing reputation risk and adherence sits with the front line business and support functions where the risk arises. The Enhanced Due Diligence process and other relevant processes in these business units facilitate the assessment of climate-related reputational risk. The emissions resulting from the activities of customers and clients to whom financing is provided is measured using Barclays Bank Groups' bespoke tool BlueTrack™. Currently, BlueTrack™ covers nine segments comprising of Upstream Energy, Power, Cement, Steel, Automotive Manufacturing, UK Housing, UK Commercial Real Estate, UK Agriculture and Aviation. Furthermore, Barclays Bank Group has developed the Client Transition Framework (CTF) to evaluate certain corporate clients' progress toward business models aligned with a transition to a low-carbon economy. Using BlueTrack™ data and public disclosures, the framework evaluates both qualitative and quantitative components to assess transition trajectories against the Group’s targets and benchmarks. This allows the Barclays Bank Group to prioritise engagement with clients based on their CTF scores. The client CTF scores and emissions data from BlueTrack™ are further used to inform key risk management practices, including risk monitoring, setting limits, managing concentrations, credit decisions and  stress testing exercises. Across Barclays Bank Group's portfolios, scenario analysis continues to form a key part of the Barclays Bank Group’s approach to assessing and quantifying the impact of climate change. Barclays Bank Group's risk assessment tools have also been extended to cover environmental / nature  risks for Barclays Europe portfolios. The  nature risk considerations have also been incorporated into Stress testing exercises including  Nature Exploratory Stress Test exercise. Risk monitoring and reporting The monitoring approach for climate risk is designed to track climate-related exposures across portfolios, leveraging risk metrics, latest insights and periodic assessments for alignment with risk appetite and climate goals. Risk appetite is translated into a detailed series of risk limits, triggers and indicators to control risk-taking. Barclays Bank Group has implemented climate-aware limits and triggers as applicable for priority sectors and portfolios with elevated climate risk. The performance against these metrics is tracked and reported to various committees and governance processes. Barclays Bank Group has integrated climate risk considerations into policies, standards and lending guidelines. Enhanced oversight and additional scrutiny have been introduced for new deals in elevated climate risk sectors  particularly those with sector targets and policy restrictions. These policies are reviewed regularly and updated with respect to external developments. Climate risk related management information packs, including climate risk dashboards, are produced and reported to various committees and governance forums, including the Group CRC. They primarily consist of insights on climate-related exposures, key performance indicators, concentration metrics, climate risk trends, external developments  and progress against climate targets. The Group BRC also receives regular updates, including climate risk dashboards. Legal entity specific climate risk dashboards for monitoring and reviewing climate-sensitive exposures are presented to appropriate committees. Where climate risk limits are subject to ongoing monitoring, they will be reported at the appropriate Principal Risk Committees, including the Group CRC. Barclays Bank Group continually monitors regulatory developments, including emerging disclosure standards on climate and wider sustainability areas, and builds internal capabilities to meet these new requirements. Barclays Bank Group continues to focus on integration of climate risk into its business operations and risk management practices. In 2024, notable enhancements and improvements were made in the following key areas: -The Framework, Policy and Standard for Climate Risk (as a Principal Risk) were enhanced to facilitate further integration and provide clearer guidance on control objectives and requirements, including specific roles and responsibilities of different teams across the first and second lines of defence. - The risk appetite framework for climate risk was strengthened by introduction of additional quantitative metrics such as stress loss triggers, to actively monitor the impact of climate risk on the Barclays Bank Group's capital position. The risk limits and triggers on notional exposures have been expanded to manage concentration and high risk exposures to climate risk across other Principal Risk types. -The internal stress testing framework has been enhanced to integrate stress scenarios and risk variables for climate risk. The climate risk models used within stress testing framework have also been enhanced to generate more accurate outputs. Additionally, the methodology for assessing climate risk in different economic sectors has been enhanced. -The Climate and Environmental Lens was redeveloped to support decision-making by including a range of data points across both transition and physical risks. Additionally, process improvements have been made for improving integration into credit processes. -Barclays Bank Group continues to develop its environmental / nature-related risk capabilities. In 2024, we piloted nature-related questions within our Client Transition Framework (CTF) assessment for Power portfolio clients. We plan to expand nature-related questions across CTF evaluations in 2025. This area is also a key priority and focus for Barclays Europe. Notable progress by Barclays Europe in 2024 includes an upgrade of the "LEAP" assessment, execution of a nature exploratory stress test and integration of environmental risk factors in its industry sector and geography assessments. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 145 | ## Risk review ## Principal risk management | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Credit risk management (audited) The risk of loss to the Barclays Bank Group from the failure of clients, customers or counterparties, including sovereigns, to fully honour their obligations to the Barclays Bank Group, including the whole and timely payment of principal, interest, collateral and other receivables. | | | | | Overview The credit risk that the Barclays Bank Group faces arises from wholesale and retail loans and advances together with the counterparty credit risk arising from derivative contracts with clients' trading activities, including: debt securities, settlement balances with market counterparties, FVOCI (fair value through other comprehensive income) assets and reverse repurchase loans. Credit risk management objectives are to: ▪ maintain a framework of controls to oversee credit risk ▪ identify, assess and measure credit risk clearly and accurately across the Barclays Bank Group and within each separate business, from the level of individual facilities up to the total portfolio ▪ control and plan credit risk taking in line with external stakeholder expectations, including risk return objectives, and avoiding undesirable concentrations ▪ monitor credit risk and adherence to agreed controls. Organisation, roles and responsibilities The first line of defence has primary responsibility for managing credit risk within the risk appetite and limits set by the Risk function, supported by a defined set of policies, standards and controls. In the Barclays Bank Group, business risk committees (attended by the first line) monitor and review the credit risk profile of each business unit where the most material issues are escalated to the Retail Credit Risk Management Committee, Wholesale Credit Risk Management Committee and the Barclays Group Risk Committee. Wholesale and retail portfolios are managed separately to reflect the differing nature of the assets; wholesale balances tend to be larger and are managed on an individual basis, while retail balances are greater in number but lesser in value and are, therefore, managed in aggregated segments. The responsibilities of the credit risk management teams in the businesses, the sanctioning team and other shared services include: sanctioning new credit agreements (principally wholesale); setting strategies for approval of transactions (principally retail); setting risk appetite; monitoring risk against limits and other parameters; setting recession readiness frameworks to protect portfolios in the event of economic stress, maintaining robust processes, data gathering, quality, storage and reporting methods for effective credit risk management; performing effective turnaround and workout scenarios for wholesale portfolios via dedicated restructuring and recoveries teams; maintaining robust collections and recovery processes/units for retail portfolios. The credit risk management teams in the Barclays Bank Group are accountable to the Barclays Bank PLC CRO, who reports to the Barclays Group CRO. For wholesale portfolios, credit risk managers are organised in sanctioning teams by geography, industry and/or product. In wholesale portfolios, credit risk approval is undertaken by experienced credit risk professionals operating within a clearly defined delegated authority framework, with only the most senior credit officers assigned the higher levels of delegated authority. The largest credit exposures, which are outside the Risk Sanctioning Unit or Risk Distribution Committee authority, require the support of the Barclays Bank PLC Senior Credit Officers. For exposures in excess of the Barclays Bank PLC Senior Credit Officers’ authority, approval by the Barclays Group Senior Credit Officer/Barclays PLC Board Risk Committee is also required. The Barclays Group Credit Risk Committee, attended by the Barclays Bank PLC Senior Credit Officers, provides a formal mechanism for the Barclays Group Senior Credit Officer to exercise the highest level of credit authority over the most material Barclays Group single name exposures. Credit risk mitigation The Barclays Bank Group employs a range of techniques and strategies to actively mitigate credit risks. These can broadly be divided into three types: ▪ netting and set-off ▪ collateral ▪ risk transfer. Netting and set-off Credit risk exposures can be reduced by applying netting and set-off. For derivative transactions, the Barclays Bank Group’s normal practice is to enter into standard master agreements with counterparties (e.g. ISDAs). These master agreements typically allow for netting of credit risk exposure to a counterparty resulting from derivative transactions against the obligations to the counterparty in the event of default, and so produce a lower net credit exposure. These agreements may also reduce settlement exposure (e.g. for foreign exchange transactions) by allowing payments on the same day in the same currency to be set-off against one another. Collateral The Barclays Bank Group has the ability to call on collateral in the event of default of the counterparty, comprising: ▪ home loans: a fixed charge over residential property in the form of houses, flats and other dwellings. ▪ wholesale lending: a fixed charge over commercial property and other physical assets, in various forms. ▪ other retail lending: includes charges over other physical assets; second lien charges over residential property and finance lease receivables. ▪ derivatives: the Barclays Bank Group also often seeks to enter into a margin agreement (e.g. Credit Support Annex) with counterparties with which the Barclays Bank Group has master netting agreements in place. These annexes to master agreements provide a mechanism for further reducing credit risk, whereby collateral (margin) is posted on a regular basis (typically daily) to collateralise the mark to market exposure of a derivative portfolio measured on a net basis. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 146 | ## Risk review ## Principal risk management ▪ reverse repurchase agreements: collateral typically comprises highly liquid securities which have been legally transferred to the Barclays Bank Group subject to an agreement to return them for a fixed price. ▪ financial guarantees and similar off-balance sheet commitments: cash collateral may be held against these arrangements. Risk transfer A range of instruments including guarantees, credit insurance, credit derivatives and securitisation can be used to transfer credit risk from one counterparty to another. These mitigate credit risk in three main ways: ▪ if the risk is transferred to a counterparty which is more creditworthy than the original counterparty, then overall credit risk is reduced. ▪ where recourse to the first counterparty remains, both counterparties must default before a loss materialises. This is less likely than the default of either counterparty individually, so credit risk is reduced. ▪ first loss exposures across pools of credit risk can be hedged via synthetic securitisation structures, typically via CLN issuance. As these are fully funded upfront, they provide for a direct reduction in credit risk exposure on referenced pools. | | | --- | | | | Market risk management (audited) The risk of loss arising from potential adverse changes in the value of the Barclays Bank Group’s assets and liabilities from fluctuation in market variables including, but not limited to, interest rates, foreign exchange, equity prices, commodity prices, credit spreads, implied volatilities and asset correlations. | Overview Market risk arises primarily as a result of client facilitation in wholesale markets, involving market making activities, risk management solutions and execution of syndications. Upon execution of a trade with a client, the Barclays Bank Group will look to hedge against the risk of the trade moving in an adverse direction. Mismatches between client transactions and hedges result in market risk due to changes in asset prices, volatility or correlations. Organisation, roles and responsibilities Market risk in the businesses resides primarily in IB and Treasury. These businesses have the mandate to assume market risk. The front office and Treasury trading desks are responsible for managing market risk on a day-to-day basis, where they are required to understand and adhere to all limits applicable to their businesses. The Market Risk team supports the trading desks with the day-to-day limit management of market risk exposures through governance processes which are outlined in supporting market risk policies and standards. Market risk oversight and challenge is provided by business committees and Barclays Group committees, including the Market Risk Committee (MRC). The objectives of market risk management are to: ▪ identify, understand and control market risk by robust measurement, limit setting, reporting and oversight ▪ facilitate business growth within a controlled and transparent risk management framework ▪ control market risk in the businesses according to the allocated appetite. To meet the above objectives, a governance structure is in place to manage these risks consistent with the ERMF. The Barclays Bank PLC Board Risk Committee recommends market risk appetite to the Barclays Bank PLC Board for their approval, within the parameters set by the Barclays PLC Board. The Market Risk Committee (MRC) reviews and makes recommendations concerning the Barclays Group-wide market risk profile. This includes overseeing the operation of the Market Risk Framework and associated policies and standards, monitoring market and regulatory changes, and reviewing limit utilisation levels. The committee is chaired by the Market Risk Principal Risk Lead and attendees include the business heads of market risk and business aligned market risk managers. In addition to MRC, the Investment Bank Risk Committee (IBRC) is the main forum in which market risk exposures are discussed and reviewed with senior business heads. The Committee is chaired by the CRO of the Investment Bank and meets weekly, covering current market events, notable market risk exposures, and key risk topics. New business initiatives are generally socialised at IBRC before any changes to risk appetite or associated limits are considered in other governance committees. Management value at risk (VaR) VaR is an estimate of the potential loss arising from unfavourable market movements if the current positions were to be held unchanged for one business day. For internal market risk management purposes, a historical simulation methodology with a one-year equally weighted historical period, at the 95% confidence level is used for all trading books and some banking books. Limits are applied at the total level as well as by risk factor type, which are then cascaded down to particular trading desks and businesses by the market risk management function. See pages [210](#ia5ca4de0cd1f4f9792aa0e7851149beb_609) to [211](#i6b3b12fd3f6c4df79305d80843a92c56_727) for a review of management VaR. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 147 | ## Risk review ## Principal risk management | | | --- | | | | Treasury and capital risk management This comprises: Liquidity risk: The risk that the Barclays Bank Group is unable to meet its contractual or contingent obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. Capital risk: The risk that the Barclays Bank Group has an insufficient level or composition of capital to support its normal business activities and to meet its regulatory capital requirements under normal operating environments and stressed conditions (both actual and as defined for internal planning or regulatory testing purposes). This also includes the risk from the Barclays Bank Group’s pension plans. Interest rate risk in the banking book: The risk that the Barclays Bank Group is exposed to capital or income volatility because of a mismatch between the interest rate exposures of its (non-traded) assets and liabilities. This also includes credit spread risk in the banking book, the risk that the Barclays Bank Group is exposed to capital or income volatility because of changes in credit spreads on its (non- traded) assets and liabilities | The Barclays Bank PLC Treasury function manages treasury and capital risk exposure on a day-to-day basis, with the Barclays Bank PLC Treasury Committee together with the Barclays Group Treasury Committee acting as the principal management bodies for the Barclays Bank Group. The Treasury and Capital Risk function is responsible for oversight and provides insight into key capital, liquidity, interest rate risk in the banking book (IRRBB) and pension risk management activities. The assessment and management of the Barclays Bank Group's capital and liquidity position and IRRBB and pension risk requires the use of judgement, assumptions and estimates. Please see the description of material existing and emerging risks beginning on page [126](#ia16d0659cd524c01ae655d82fa382c3d_112) of this Annual Report for further details on such judgements, assumptions and estimates, including the potential risks involved. Liquidity risk management (audited) Overview The efficient management of liquidity is essential to Barclays Bank PLC in order to retain the confidence of the financial markets and maintain the sustainability of the business. Treasury and Capital Risk have created a framework to manage all liquidity risk exposures under both normal and stressed conditions. The framework is designed to maintain liquidity resources that are sufficient in amount, quality and funding tenor profile to remain within the liquidity limits set by the Barclays Bank PLC Board. The Board sets liquidity limits on both internal and regulatory liquidity metrics. Organisation, roles and responsibilities Treasury has the primary responsibility for managing liquidity risk within the set risk appetite. Both Risk and Treasury contribute to the production of the Internal Liquidity Adequacy Assessment Process (ILAAP). The Treasury and Capital Risk function is responsible for the management and governance of the liquidity risk mandate, as defined by the Barclays Bank PLC Board. The framework established by Treasury and Capital Risk is designed to deliver the appropriate term and structure of funding, consistent with the risk appetite set by the Barclays Bank PLC Board. The control framework incorporates a range of ongoing business management tools to monitor and stress test Barclays Bank PLC's balance sheet and recovery plan, including limit setting. Limit setting and transfer pricing are tools that are designed to control the level of liquidity risk taken and drive the appropriate mix of funds. Adherence to limits reduces the likelihood that a liquidity stress event could lead to an inability to meet the Barclays Bank Group’s obligations as they fall due. The Barclays Bank PLC Board approves the Barclays Bank PLC funding plan, internal stress tests, regulatory stress tests, recovery plan and liquidity risk qualitative statement that supports risk appetite. Barclays Bank PLC’s Treasury Committee is responsible for monitoring and managing liquidity risk in line with Barclays Bank PLC’s funding management objectives, funding plan and risk appetite. The Barclays Group Treasury and Capital Risk Committee monitors and reviews the liquidity risk profile and control environment, providing second line oversight of the management of liquidity risk. The Barclays Bank PLC Board Risk Committee reviews the risk profile, liquidity risk qualitative statement, and Board-approved liquidity limits at least annually and the impact of stress scenarios on Barclays Bank PLC’s funding plan/ forecast in order to agree risk appetite in line with Barclays Bank PLC’s projected funding abilities. Capital risk management (audited) Overview Capital risk is managed through ongoing monitoring and management of the capital and leverage position, regular stress testing and a robust capital governance framework. The objectives of the framework are to maintain adequate capital for the Barclays Bank Group and its legal entities to withstand the impact of the risks that may arise under normal and stressed conditions, and maintain adequate capital to cover current and forecast business needs and associated risks to provide a viable and sustainable business offering. The Barclays Bank Group aims to prudently manage its overall leverage position (including risk of excessive leverage) by utilising plausible stress scenarios, reviewing and deploying management actions in response to deteriorating economic and commercial positions. In order to manage contingent leverage risk, the Barclays Bank Group considers the context from which the business consumption arises, the impact of client utilisation on leverage and the available actions to manage. Organisation, roles and responsibilities Treasury has the primary responsibility for managing and monitoring capital adequacy. The Barclays Bank Group Treasury and Capital Risk function provides oversight of capital risk. Production of the Barclays Bank PLC Internal Capital Adequacy Assessment Process (ICAAP) is the responsibility of Treasury. Capital risk management is underpinned by a control framework and policy. The capital management strategy, outlined in the relevant legal entity capital plans, is developed in alignment with the control framework and policy for capital risk, and is implemented consistently in order to deliver on the Barclays Bank Group’s objectives, which are aligned to those of the Barclays Group. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 148 | ## Risk review ## Principal risk management The Barclays Bank PLC Board approves the Barclays Bank PLC capital plan, internal stress tests and results of regulatory stress tests and those of the relevant Barclays Bank Group entities. The Barclays PLC Board also approves the Barclays Group recovery plan which takes into account management actions identified at the Barclays Bank Group level. The Barclays Bank PLC Treasury Committee and the Barclays Group Treasury Committee are responsible for monitoring and managing capital risk in line with Barclays Bank Group’s capital management objectives, capital plan and risk frameworks. The Treasury and Capital Risk Committee (TCRC) monitors and reviews the capital risk profile and control environment, providing second line oversight of the management of capital risk. For the relevant Barclays Bank Group subsidiaries, local management assures compliance with an entity’s minimum regulatory capital requirements by reporting to local Asset and Liability Committees (or equivalents) with oversight by the Barclays Bank PLC Treasury Committee and the Barclays Group Treasury Committee, as required. In 2024, Barclays complied with all regulatory minimum capital requirements. Contingent leverage risk is managed by; i) setting comprehensive leverage (and RWA) targets for each business as part of the Treasury capital management process, taking into account adherence to early warning indicators and maintain a healthy leverage ratio, and; ii) Monitoring execution of actions taken to course-correct as necessary. The Barclays Bank Group maintains a number of defined benefit pension schemes for past and current employees. The ability of schemes to meet pension payments is achieved with investments and contributions. Pension risk arises because the market value of pension fund assets might decline; investment returns might reduce; or the estimated value of pension liabilities might increase. The Barclays Bank Group monitors the pension risks arising from its defined benefit pension schemes and works with the relevant pension fund’s trustees to address shortfalls. In these circumstances the Barclays Bank Group could be required or might choose to make extra contributions to the pension fund. The Barclays Bank Group’s main defined benefit scheme was closed to new entrants in 2012. Interest rate risk in the banking book management (IRRBB) Overview Interest rate risk in the banking book is driven by counterparties deposit taking and lending activities, investments in the liquid asset portfolio and funding activities. As per the Barclays Bank Group’s policy to remain within the defined risk appetite, hedging strategies are executed to mitigate the various IRRBB risks that result from these activities. However, the Barclays Bank Group remains susceptible to interest rate risk and other non-traded market risks from the following key sources: ▪ Interest rate and repricing risk: the risk that net interest income could be adversely impacted by a change in interest rates, differences in the timing of interest rate changes between assets and liabilities, and other constraints on interest rate changes as per product terms and conditions. ▪ Counterparty behavioural risk: the risk that net interest income could be adversely impacted by the discretion that counterparties may have in respect of being able to vary from their contractual obligations with the Barclays Bank Group. This risk is often referred to by industry regulators as ‘embedded option risk’. ▪ Investment risks in the liquid asset portfolio: the risk that the fair value of assets held in the liquid asset portfolio and associated risk management portfolios could be adversely impacted by market volatility, creating volatility in capital directly. Organisation, roles and responsibilities The Barclays Bank PLC Treasury Committee and the Barclays Group Treasury Committee are responsible for monitoring and managing IRRBB risk in line with the Barclays Bank Group’s management objectives and risk frameworks. The BRC and Treasury and Capital Risk Committee monitors and reviews the IRRBB risk profile and control environment, providing second line oversight of the management of IRRBB. The BRC reviews the interest rate risk profile, including review of the risk appetite at least annually and the impact of stress scenarios on the interest rate risk of the Barclays Bank PLC’s banking books. In addition, the Barclays Bank Group’s IRRBB policy sets out the processes and key controls required to identify all IRRBB risks arising from banking book operations, to monitor the risk exposures via a set of metrics with a frequency in line with the risk management horizon, and to manage these risks within agreed risk appetite and limits. | | | --- | | | | Operational risk management The risk of loss to the Barclays Bank Group from inadequate or failed processes or systems, human factors or due to external events (for example fraud) where the root cause is not due to credit or market risks. | Overview The management of operational risk has three key objectives: • deliver and oversee an operational risk capability owned and used by business leaders to enable sound risk decisions over the long term. • provide the frameworks, policies and standards to enable management to meet their risk management responsibilities while the second line of defence provides robust, independent, and effective oversight and challenge. • deliver a consistent and aggregated measurement of operational risk that will provide clear and relevant insights, so that the right management actions can be taken to keep the operational risk profile consistent with the Barclays Bank Group’s strategy, the stated risk appetite and stakeholder needs. The Barclays Bank Group operates within a system of internal controls that enables business to be transacted and risk taken without exposing it to unacceptable potential losses or reputational damages. Organisation, roles and responsibilities The prime responsibility for the management of operational risk and the compliance with control requirements rests within the business and functional units where the risk arises. The operational risk profile and control environment is reviewed by management through | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 149 | ## Risk review ## Principal risk management business risk committees and control committees. Operational risk issues escalated from these meetings are considered through the second line of defence review meetings. Depending on their nature, the outputs of these meetings are presented to the Operational Risk Profile Forum, the Operational Risk Committee, the Barclays Bank Risk Forum, the Barclays Bank PLC Board Risk Committee or the Barclays Bank PLC Board Audit Committee. In addition, specific reports are prepared by Operational Risk on a regular basis for the Barclays Bank Risk Forum, GRC and the BRC. Businesses and functions are required to report their operational risks on both a regular and an event-driven basis. The reports include a profile of the material risks that may threaten the achievement of their objectives and the effectiveness of key controls, operational risk events and a review of scenarios. The Barclays Group Head of Operational Risk is responsible for establishing, owning and maintaining an appropriate Barclays Group-wide Operational Risk Management Framework, meanwhile the Barclays Bank PLC Head of Operational Risk is responsible for overseeing the portfolio of operational risk across all Barclays Bank Group businesses. The Operational Risk function acts in a second line of defence capacity and is responsible for defining and overseeing the implementation of the framework and monitoring Barclays Bank Group’s operational risk profile, including risk-based review and challenge. The Operational Risk function alerts management when risk levels exceed acceptable tolerance in order to drive timely decision-making and actions by the first line of defence. Operational risk categories Operational risks are grouped into risk categories to support effective risk management, measurement and reporting. These comprise: Change Delivery Management Risk; Data & Records Management Risk; Financial Reporting Risk; Fraud Risk; Information Security Risk; Operational Recovery Planning Risk; Payments Process Risk; People Risk; Premises Risk; Physical Security Risk; Risk Reporting; Supplier Risk; Tax Risk; Technology Risk; and Transaction Operations Risk. In addition to the above, operational risk encompasses the risk associated with compliance with Group Resolution Planning Prudential regulatory requirements. For definitions of the Barclays Bank Group’s Operational Risk Categories and Connected Risks, refer to the Barclays PLC Pillar 3 Report 2024. | | | --- | | | | Model risk management The potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. | Overview The Barclays Bank Group uses models to support a broad range of activities, including informing business decisions and strategies, measuring and limiting risk, valuing exposures, conducting stress testing, assessing capital adequacy, managing client assets, and meeting reporting requirements. Since models are imperfect and incomplete representations of reality, they may be subject to uncertainty, errors and inappropriate use affecting the accuracy of their output. This can result in inappropriate business decisions being made, financial loss, regulatory risk, reputational risk and/or inadequate capital reporting. Models may also be misused, for instance applied to products that they were not intended for, or not adjusted, where fundamental changes to their environment would justify re-evaluating their core assumptions. Robust model risk management is crucial in assessing and managing model risk. Strong model risk culture, appropriate technological environment, and adequate focus on understanding and resolving model limitations are crucial components. Organisation, roles and responsibilities Model Risk is a principal risk within the ERMF and is centrally governed by the Model Risk Management ("MRM") function. MRM is an independent function responsible for establishing and maintaining the framework and the model inventory needed to assess, manage, and report model risk. The Global Head of MRM reports directly to the Group Chief Risk Officer. MRM establishes model risk policy and standards, sets out and monitors model risk appetite, validates and approves models, reports on model risk, operates the controls that govern models and maintains the inventory of all models used by the Group globally. MRM operates the Group Model Risk Committee (GMRC), the purpose of which is to review and monitor the Model Risk profile and control environment across the Model Risk portfolio and assess the exposure against the approved appetite and associated tolerances. The GMRC escalates to the Group Risk Committee (GRC). MRM also operates the Model Risk Horizontal Control Forum (MR HCF) that oversees the consistent and effective implementation of the Barclays control framework within Model Risk. The MR HCF escalates to the Group Controls Committee. MRM reports on the model risk profile to the Group Board Risk Committee, the Group Risk Committee, key Barclays Legal Entity risk and control committees and forums and Model Ownership Area (MOA) committees; the latter may be established by the business or functions. These committees consider Model Risk matters relevant to them and escalate as required in compliance with internal applicable governance policies. In addition, an independent Model Strategy and Oversight (MSO) Team provides oversight of strategic modelling decisions of material models, in particular ensuring compliance with regulations and relevant technical standards, following a risk-based approach focusing on material modelling issues, including: • Ensures a comprehensive / consistent approach taken across the bank to deliver material models requirements. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 150 | ## Risk review ## Principal risk management • Provides challenge to modelling decisions taken by Model Owners and Developers. • Establishes, maintains, and runs the requisite forum (i.e. Group Model Management Steering Committee) to facilitate Senior Management oversight of the strategic approach taken for the development/re-development of material models and of key model aspects of associated rating systems within Barclays. As per the ERMF, the first line of defence (1LOD) is comprised of all employees engaged in the revenue generating and client facing areas of the firm as well as all associated support functions, including Finance, Treasury, Technology and Operations, Human Resources, and Administration. Employees of risk and compliance are the second line of defence (2LOD). The 1LOD for Model Risk is represented by 1LOD areas developing, using and owning models. 2LOD areas develop, use or employ models as well. In such cases, these 2LOD areas will be subject to independent oversight from MRM and within the MRM framework are considered as 1LOD. MRM is the 2LOD for Model Risk. | | | --- | | | | Compliance risk management The risk of poor outcomes for, or harm to, customers, clients and markets, arising from the delivery of the Barclays Bank Group's products and services, (Compliance Risk), and the risk to Barclays, its clients, customers or markets from a failure to comply with the Laws, Rules and Regulations (LRR) applicable to the firm. | Overview Compliance Risk incorporates market integrity, customer protection, financial crime, product design and review and the newly created LRR risk. Barclays acts at all times to operate its business in full accordance with all applicable laws, rules and regulations, and to deliver good outcomes for/avoid harm to customers, clients and markets. Barclays will act in good faith; avoid causing foreseeable harm and enable and support customers to pursue their financial objectives. Organisation, roles and responsibilities The Compliance Risk Management Framework (CRMF) outlines how the Barclays Bank Group manages and measures its Compliance Risk profile. The Barclays Group Chief Compliance Officer is accountable for developing, maintaining and overseeing the CRMF. The Barclays Bank Group Chief Compliance Officer is responsible for providing effective oversight, management and escalation of Compliance Risk in line with the CRMF. This includes overseeing the development and maintenance of the relevant Compliance Risk policies and standards and monitoring and reporting on the consistent application and effectiveness of the implementation of controls to manage Compliance Risk. It is the responsibility of the first line of defence to establish Compliance controls to manage its performance and assess conformance to these policies and controls. The responsibility for LRR Risk Management sits across various functions and business units, including Legal, Chief Controls Office, Risk and Compliance. Senior managers are accountable within their areas of responsibility for owning and managing Compliance Risk in accordance with the CRMF, as defined within their regulatory Statement of Responsibilities, and a dedicated team has been established in Compliance to oversee LRR Risk Management. Compliance as an independent second line function oversees that Compliance Risks are effectively identified, managed, monitored and escalated, and has a key role in helping Barclays Bank Group achieve the right conduct outcomes and evolve a compliance-focused culture. The governance of Compliance risk within the Barclays Bank Group is fulfilled through management committees and forums operated by the first and second lines of defence with clear escalation and reporting lines to the Board. The Barclays Group and Barclays Bank Group Risk Committees are the primary second line governance committees for the oversight of the Compliance Risk Profile. The risk committees' responsibilities include the identification and discussion of any emerging Compliance risks exposures in the Barclays Group and Barclays Bank Group. A new sub-committee of the BPLC Group Risk Committee was established in August 2023 to provide oversight on LRR Risk. This committee is chaired by the BPLC Group Chief Compliance Officer. | | | --- | | | | Reputation risk management The risk that an action, transaction, investment, event, decision, or business relationship will reduce trust in the Barclays Bank Group’s integrity and/or competence. | Overview A reduction of trust in the Barclays Bank Group’s integrity and competence may reduce the attractiveness of Barclays Bank Group to stakeholders and could lead to negative publicity, loss of revenue, regulatory or legislative action, loss of existing and potential client business, reduced workforce morale and difficulties in recruiting talent. Ultimately it may destroy shareholder value. Organisation, roles and responsibilities The governance of reputation risk within the Barclays Bank Group is fulfilled through management committees and forums operated by the First and Second Lines of Defence, with clear escalation and reporting lines to the relevant Barclays Bank Group Board committees. The Barclays PLC Board is responsible for reviewing and monitoring the effectiveness of the Barclays Bank Group's management of reputation risk. The Reputation Risk Management Framework (RRMF) comprises a number of elements that allow the Barclays Bank Group to manage and measure its reputation risk profile. The RRMF sets out what is required to manage reputation risk across the Barclays Bank Group, including escalations to the Group Reputation Risk Committee, as required. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 151 | ## Risk review ## Principal risk management The Barclays Bank PLC Chief Compliance Officer is responsible for providing independent second line oversight of Businesses' adherence to the RRMF. | | | --- | | | | Legal risk management The risk of loss or imposition of penalties, damages or fines from the failure of the Barclays Bank Group to meet applicable laws, rules, regulations or contractual requirements or to assert or defend its intellectual property rights. | Overview In conjunction with the Barclays Control Framework, the Group wide Legal Risk Management Framework (LRMF), which applies to Barclays Bank PLC, comprises a number of integrated components that details how the Group identifies, manages and measures its legal risk profile. The multitude of laws and regulations across the globe are highly dynamic and their application to particular circumstances is often unclear resulting in a high level of inherent legal risk. The LRMF seeks to mitigate legal risk through the implementation of Group wide legal risk policies requiring the engagement of legal professionals to provide legal advice in situations that have the potential for legal risk, identification and management of legal risks by those legal professionals, and escalation of legal risk as necessary. Legal risk is also mitigated by the requirements of the Compliance Risk Management Framework, including the responsibility of legal professionals to proactively identify, communicate and provide legal advice on applicable laws, rules and regulations. Notwithstanding these mitigating actions, Barclays Bank Group operates with a level of residual legal risk, for which the Barclays Bank Group has limited tolerance. Organisation, roles and responsibilities The Barclays Bank Group’s businesses and functions have responsibility for identifying and escalating legal risk to the Legal Function, as well as responsibility for adherence to control requirements. The Legal Function organisation and coverage model aligns legal expertise to businesses, functions, products, activities and geographic locations so that the Barclays Bank Group receives legal advice and support from appropriate legal professionals, working in partnership proactively to identify, manage and escalate legal risks as necessary. The senior management of the Legal Function oversees, challenges and monitors the legal risk profile and effectiveness of the legal risk control environment across the Barclays Group. The Legal Function provides support to all areas of the bank and is not formally part of any of the three lines of defence. Except in relation to the legal advice it provides or procures, the Legal Function is subject to oversight from the second line of defence with respect to its own operational and compliance risks, as well as with respect to the legal risk to which the bank is exposed. The Barclays Group General Counsel is responsible for developing and maintaining the Barclays Group wide LRMF. This includes defining the relevant legal risk policies, and producing the Barclays Group wide qualitative statement for legal risk as part of the Barclays' risk appetite statement. The legal entity General Counsels are responsible for the adoption and implementation of the legal risk policies in the respective legal entity. The legal risk profile and control environment is reviewed by management through business risk committees and control committees. The Barclays Bank Group Risk Committee is incorporated in the Barclays Group Risk Committee and is the most senior executive body responsible for reviewing and monitoring the effectiveness of risk management across the Barclays Bank Group. Escalation paths from this committee exist to the Barclays Bank PLC Board Risk Committee. | | | --- | | | | Financial crime risk management The risk that the Barclays Bank Group and its associated persons (employees or third parties) commit or facilitate financial crime, and/or Barclays products and services are used to facilitate financial crime. Financial Crime undermines market integrity and may result in: Harm to clients, customers, counterparties or employees; diminished confidence in financial products and services; damage to Barclays reputation; regulatory breaches; and/or financial penalties. | Overview Financial Crime risk incorporates anti-bribery and corruption, anti-money laundering, anti-tax evasion facilitation and sanctions risks. The Barclays Bank Group has no appetite to operate its business other than in full accordance with all applicable laws, rules and regulations, in order to deliver good outcomes for / avoid harm to customers, clients and markets. The Barclays Bank Group will enable and support clients and customers to safely pursue their financial objectives and avoid causing negative impacts to the same through regulatory or legislative breaches, including potential or foreseeable harm, caused by financial crime. The Barclays Bank Group strives to prevent exposure to, detect and/or disrupt financial crime through the execution of its end to end control framework. Organisation, roles and responsibilities The Financial Crime Risk Management Framework (FCRMF) outlines how the Barclays Bank Group manages and measures its Financial Crime risk profile. The Group Chief Compliance Officer is accountable for developing, maintaining and overseeing the FCRMF. The Legal Entity Money Laundering Reporting Officers are responsible for providing effective oversight, management and escalation of financial crime risk in line with the FCRMF at the Entity and Subsidiary level. This includes defining and owning the relevant financial crime risk policies which detail the control objectives, principles and other core requirements for the activities of the Group. It is the responsibility of the first | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 152 | ## Risk review ## Principal risk management line of defence to establish financial crime related controls to manage its performance and assess conformance to these policies and controls. The responsibility for LRR risk management sits across various functions and business units, including Legal, Chief Controls Office, Risk and Compliance. Senior managers are accountable within their areas of responsibility for owning and managing financial crime risk in accordance with the FCRMF, as defined within their regulatory Statement of Responsibilities. Financial Crime Compliance as an independent second line function oversees that financial crime risks are effectively identified, managed, monitored and escalated, and has a key role in helping Barclays achieve the right conduct outcomes and evolve a compliance-focused culture. The governance of financial crime risk within the Barclays Bank Group is fulfilled through management committees and forums operated by the first and second lines of defence with clear escalation and reporting lines to the Board. The Barclays Group and Barclays Bank PLC Risk Committee provides oversight of the Financial Crime Risk Profile. The risk committees’ responsibilities include the identification and discussion of any emerging financial crime risk exposures in the Barclays Group and Barclays Bank Group. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 153 | ## Risk review ## Risk performance #### Credit Risk | | | | | --- | --- | --- | | | | | | Summary of Contents | | Page | | This section provides an analysis of carbon related assets to assess climate risk performance. | • [C](#ia16d0659cd524c01ae655d82fa382c3d_187)arbon-related assets | [154](#ia16d0659cd524c01ae655d82fa382c3d_181) | | • Elevated risk factors | [154](#ia16d0659cd524c01ae655d82fa382c3d_181) | | | • Carbon-related assets (Incl. sub-sector breakdown) | [155](#i94590d2b47574a3982d05e009eb86e7b_10528) | | | • Carbon-related sectors in wholesale credit (Dealogic Industry Classification) | [157](#i94590d2b47574a3982d05e009eb86e7b_4476) | | Credit risk represents a significant risk to the Barclays Bank Group and mainly arises from exposure to loans and advances together with the counterparty credit risk arising from derivative contracts entered into with clients. | • [Credit risk overview and summary of performance](#ia16d0659cd524c01ae655d82fa382c3d_187) | [158](#ia16d0659cd524c01ae655d82fa382c3d_187) | | • [Maximum exposure and effects of netting, collateral and risk](#ia16d0659cd524c01ae655d82fa382c3d_190) [transfer](#ia16d0659cd524c01ae655d82fa382c3d_190) | [159](#ia16d0659cd524c01ae655d82fa382c3d_190) | | | | | This section outlines the expected credit loss allowances, the movements in allowances during the period, material management adjustments to model output and measurement uncertainty and sensitivity analysis. | • [Expected credit losses](#ia16d0659cd524c01ae655d82fa382c3d_196) | [163](#ia16d0659cd524c01ae655d82fa382c3d_196) | | – [Loans and advances at amortised cost by product](#ia16d0659cd524c01ae655d82fa382c3d_199) | [163](#ia16d0659cd524c01ae655d82fa382c3d_199) | | – [Movement in gross exposures and impairment](#ia16d0659cd524c01ae655d82fa382c3d_205) [allowance including provisions for loan commitments](#ia16d0659cd524c01ae655d82fa382c3d_205) [and financial guarantees](#ia16d0659cd524c01ae655d82fa382c3d_205) | [166](#ia16d0659cd524c01ae655d82fa382c3d_205) | | – [Stage 2 decomposition](#ia16d0659cd524c01ae655d82fa382c3d_217) | [177](#ia16d0659cd524c01ae655d82fa382c3d_217) | | – [Stage 3 decomposition](#ia16d0659cd524c01ae655d82fa382c3d_220) | [178](#ia16d0659cd524c01ae655d82fa382c3d_220) | | • [Management adjustments to models for impairment](#ia16d0659cd524c01ae655d82fa382c3d_223) | [178](#ia16d0659cd524c01ae655d82fa382c3d_223) | | • [Climate risk ECL assessment](#ia16d0659cd524c01ae655d82fa382c3d_226) | [179](#ia16d0659cd524c01ae655d82fa382c3d_226) | | • [Measurement uncertainty and sensitivity analysis](#ia16d0659cd524c01ae655d82fa382c3d_229) | [180](#ia16d0659cd524c01ae655d82fa382c3d_229) | | The Barclays Bank Group reviews and monitors risk concentrations in a variety of ways. This section outlines performance against key concentration risks. | • [Analysis of the concentration of credit risk](#ia16d0659cd524c01ae655d82fa382c3d_235) | [190](#ia16d0659cd524c01ae655d82fa382c3d_235) | | – [Credit risk concentration by Industry and Geography](#ia16d0659cd524c01ae655d82fa382c3d_238) | [190](#ia16d0659cd524c01ae655d82fa382c3d_238) | | • [Approach to management and representation of credit quality](#ia16d0659cd524c01ae655d82fa382c3d_244) | [192](#ia16d0659cd524c01ae655d82fa382c3d_244) | | – [Asset credit quality](#ia16d0659cd524c01ae655d82fa382c3d_247) | [192](#ia16d0659cd524c01ae655d82fa382c3d_247) | | – [Debt securities](#ia16d0659cd524c01ae655d82fa382c3d_250) | [192](#ia16d0659cd524c01ae655d82fa382c3d_250) | | – [Balance sheet credit quality](#ia16d0659cd524c01ae655d82fa382c3d_253) | [192](#ia16d0659cd524c01ae655d82fa382c3d_253) | | • [Credit exposures by internal PD (probability of default) grade](#ia16d0659cd524c01ae655d82fa382c3d_259) | [195](#ia16d0659cd524c01ae655d82fa382c3d_259) | | Credit risk monitors exposure performance across a range of significant portfolios. | • [Analysis of specific portfolios and asset types](#ia16d0659cd524c01ae655d82fa382c3d_265) | [204](#ia16d0659cd524c01ae655d82fa382c3d_265) | | – Retail Credit Cards and Retail Other | [204](#ia16d0659cd524c01ae655d82fa382c3d_268) | | This section provides an analysis of credit risk on assets held for sale | • [Assets held for sale](#ia16d0659cd524c01ae655d82fa382c3d_13262) | [205](#ia16d0659cd524c01ae655d82fa382c3d_13262) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 154 | ## Risk review ## Risk performance #### Climate risk performance Carbon-related assets According to TCFD, certain industry segments are more likely to be financially impacted than others due to their exposure to certain transition and physical risk factors for example, greenhouse gas (GHG) emissions, weather events like storms and hurricanes and dependencies on stable weather conditions for their operations and products. These non-financial industries are grouped into four key areas: Energy; Transportation; Materials and Buildings; and Agriculture, Food, and Forest Products. Barclays’ exposures to the industries within these groups are reported as carbon-related assets and can be found in the table on the following page. Elevated risk sectors Barclays has assessed the physical and transition risks associated with Corporate and Financials sectors to identify and categorise industry segments/activities with heightened climate risks as elevated sectors. In each sector there are a range of vulnerabilities; whilst Barclays distinguish elevated activities within high-level sectors, not all our clients in sectors classified as elevated will have high carbon intensity or physical risk vulnerability. Residential Real Estate exposures are also included in this table. Barclays recognizes the BUK Mortgages book as an elevated climate risk portfolio, although it is not an economic sector. On that basis they have been included in the table. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 155 | ## Risk review ## Risk performance #### Climate risk performance | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Carbon-related assets (Incl. sub-sector breakdown)1,2 | | | | | | | | | 2024 | | | | | | | £m | | | | | | | Physical risk3 | Transition risk3 | Loans & advances 4 | Loan commitments 5 | Total | of which: Elevated | | Agriculture, Food and Forest Products (including logging) | | | 112 | 113 | 225 | 191 | | Agriculture | ü | ü | 112 | 113 | 225 | 191 | | Energy & Waters | | | 2,821 | 17,006 | 19,827 | 19,661 | | Power Utilities | ü | ü | 2,264 | 15,399 | 17,663 | 17,663 | | Metals (waste & recycling) | | | 62 | 104 | 166 | — | | Water Utilities | ü | | 495 | 1,503 | 1,998 | 1,998 | | Manufacturing | | | 5,119 | 30,398 | 35,517 | 12,198 | | Automotive | | ü | 660 | 4,456 | 5,116 | 4,772 | | Cements | | ü | 29 | 302 | 331 | 332 | | Chemicals | | ü | 364 | 3,724 | 4,088 | 3,730 | | Food, Bev and Tobacco | | ü | 881 | 5,897 | 6,778 | 800 | | Manufacturing - Others | | ü | 2,488 | 13,284 | 15,772 | 637 | | Metals | | ü | 266 | 381 | 647 | 262 | | Oil and Gas (refining) | ü | ü | 79 | 1,447 | 1,526 | 1,525 | | Packaging Manufacturers: Metal, Glass and Plastics | | | 133 | 242 | 375 | — | | Paper and Forest Products (excluding logging) | | | 205 | 539 | 744 | — | | Steel | | ü | 14 | 126 | 140 | 140 | | Materials and Building | | | 15,733 | 12,117 | 27,850 | 937 | | Construction and Materials | ü | | 1,313 | 1,130 | 2,443 | 937 | | Real Estate Management and Development | | | 14,420 | 10,987 | 25,407 | — | | Mining and Quarrying | | | 1,436 | 7,543 | 8,979 | 8,918 | | Mining (incl diversified miners)6 | ü | ü | 259 | 1,610 | 1,869 | 1,809 | | Oil and Gas (extraction) | ü | ü | 1,138 | 5,926 | 7,064 | 7,064 | | Transport & storage | | | 1,493 | 7,451 | 8,944 | 6,584 | | Aviation | ü | ü | 230 | 2,345 | 2,575 | 2,472 | | Oil and Gas (midstream) | ü | ü | 163 | 2,566 | 2,729 | 2,729 | | Other Transport Services | | | 575 | 1,301 | 1,876 | — | | Ports | ü | | 87 | 87 | 174 | 174 | | Road Haulage | | ü | 312 | 451 | 763 | 382 | | Shipping | | ü | 126 | 701 | 827 | 827 | | Wholesale and retail distribution and leisure | | | 2,134 | 5,473 | 7,607 | 4,123 | | Oil and Gas (wholesale) | | ü | 882 | 1,337 | 2,219 | 1,880 | | Others | | ü | 1,252 | 4,136 | 5,388 | 2,243 | | Other Financial Institutions | | | 380 | 469 | 849 | — | | Real Estate Management and Development (REITs) | | | 380 | 469 | 849 | — | | Home Loans | | | 4,956 | 18 | 4,974 | — | | Residential Real Estate | | | 4,956 | 18 | 4,974 | — | | Carbon-related Assets/ Elevated Risk Sector Grand Total | | | 34,184 | 80,588 | 114,772 | 52,612 | | Total Loans & advances and Loan commitments | | | 195,054 | 338,427 | 533,481 | 533,481 | | Carbon-related assets / Total Loans & advances and Loan commitments (%) | | | 18 | 24 | 22 | 10 | | Sub-total of sectors spanning in multiple industries | | | | | | | | Oil & Gas | | | 2,262 | 11,276 | 13,538 | 13,198 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 156 | ## Risk review ## Risk performance #### Climate risk performance | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 2023 | | | | | | | | £m | | | | | | | | Physical risk 3 | Transition risk3 | Loans & advances 4 | Loan commitments 5 | Total | Of which: Elevated | % Change | | Agriculture, Food and Forest Products (including logging) | | | 79 | 114 | 193 | 169 | 17 | | Agriculture | ü | ü | 79 | 114 | 193 | 169 | | | Energy & Waters | | | 3,475 | 16,297 | 19,772 | 19,618 | — | | Power Utilities | ü | ü | 2,767 | 14,722 | 17,489 | 17,489 | | | Metals (waste & recycling) | | | 65 | 89 | 154 | — | | | Water Utilities | ü | | 643 | 1,486 | 2,129 | 2,129 | | | Manufacturing | | | 5,583 | 31,401 | 36,984 | 13,860 | (4) | | Automotive | | ü | 848 | 5,688 | 6,536 | 6,106 | | | Cements | | ü | 154 | 380 | 534 | 534 | | | Chemicals | | ü | 352 | 3,941 | 4,293 | 3,914 | | | Food, Bev and Tobacco | | ü | 906 | 5,694 | 6,600 | 782 | | | Manufacturing - Others | | ü | 2,800 | 12,696 | 15,496 | 711 | | | Metals | | ü | 142 | 403 | 545 | 158 | | | Oil and Gas (refining) | ü | ü | 59 | 1,411 | 1,470 | 1,470 | | | Packaging Manufacturers: Metal, Glass and Plastics | | | 110 | 302 | 412 | — | | | Paper and Forest Products (excluding logging) | | | 171 | 742 | 913 | — | | | Steel | | ü | 41 | 144 | 185 | 185 | | | Materials and Building | | | 15,367 | 10,345 | 25,712 | 1,067 | 8 | | Construction and Materials | ü | | 1,569 | 1,128 | 2,697 | 1,067 | | | Real Estate Management and Development | | | 13,798 | 9,217 | 23,015 | — | | | Mining and Quarrying | | | 1,708 | 8,369 | 10,077 | 10,075 | (11) | | Mining (incl diversified miners)6 | ü | ü | 217 | 1,704 | 1,921 | 1,919 | | | Oil and Gas (extraction) | ü | ü | 1,491 | 6,665 | 8,156 | 8,156 | | | Transport & storage | | | 1,524 | 7,080 | 8,604 | 6,382 | 4 | | Aviation | ü | ü | 259 | 2,348 | 2,607 | 2,499 | | | Oil and Gas (midstream) | ü | ü | 328 | 2,187 | 2,515 | 2,515 | | | Other Transport Services | | | 533 | 1,246 | 1,779 | — | | | Ports | ü | | 75 | 123 | 198 | 198 | | | Road Haulage | | ü | 228 | 382 | 610 | 274 | | | Shipping | | ü | 101 | 794 | 895 | 896 | | | Wholesale and retail distribution and leisure | | | 1,735 | 7,004 | 8,739 | 4,360 | (13) | | Oil and Gas (wholesale) | | ü | 365 | 2,137 | 2,502 | 2,097 | | | Others | | ü | 1,370 | 4,867 | 6,237 | 2,263 | | | Other Financial Institutions | | | 515 | 1,726 | 2,241 | — | | | Real Estate Management and Development (REITs) | | | 515 | 1,726 | 2,241 | — | | | Home Loans | | | 8,002 | 42 | 8,044 | — | (38) | | Residential Real Estate | | | 8,002 | 42 | 8,044 | — | | | Carbon-related Assets/ Elevated Risk Sector Grand Total | | | 37,988 | 82,378 | 120,366 | 55,531 | (5) | | Total Loans & advances and Loan commitments | | | 185,247 | 322,732 | 507,979 | 507,979 | 5 | | Carbon-related assets / Total Loans & advances and Loan commitments (%) | | | 21 | 26 | 24 | 11 | | | Sub-total of sectors spanning in multiple industries | | | | | | | | | Oil & Gas | | | 2,243 | 12,400 | 14,643 | 14,238 | (8) | Notes 1 The scope of elevated risk sector mapping has been revised based on our periodic assessment of climate risk sectors, resulting in activities such as renewable energy within Power Utilities, Water Utilities, Construction and Material, Food and fashion related activities (Others) now classified as elevated risk sectors/carbon related assets. The prior year comparatives have been re-presented to align with the updated sector mapping. 2 As industries decarbonise, sectors will increasingly include both carbon and non-carbon related activities e.g. Power Utilities will also include, in part, their generation capacity from renewable energy sources. 3 Physical risk and Transition risk indicators are added for elevated risk sectors to indicate the drivers of risk. See page 131 for further details. 4 Loans and advances includes debt securities at amortised cost amounting to £50,227m (2023: £39,046m) of which carbon related assets are £1,929m (2023: £2,950m). These carbon related assets comprises £1,388m (2023: £2,643m) in Material & Buildings, £241m (2023: £nil) in Other Financial Corporations, £228m (2023: £238m) in Transport and storage, £63m (2023: £69m) in Energy and water and £9m (2023: £nil) in Wholesale and retail distribution and leisure. 5 Loan commitments excludes the fair value exposures of £15,350m (£15,203m)  in 2023. 6 Diversified miners with minority interests in thermal coal mining are included in this category. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 157 | ## Risk review ## Risk performance #### Climate risk performance Financing To facilitate greater understanding and transparency of our capital markets financing, we disclose the total capital raised for clients across all sectors using data sourced from Dealogic. We have provided the breakdown of our 2024 and 2023 financing below. We have constructed this table based on the mapping of issuers’ industry assignment in Dealogic data and Barclays’ internal industry taxonomy called Barclays Industry Classification (BIC). Financing volumes are reported on a manager-proceeds basis including bonds, equities, loans and securitised bonds and no modifications have been made by Barclays. This data represents a third party view of our financing and is subject to Dealogic’s league table methodology, which pro-rates volume across lead-managers. We are presenting the data in this format to support transparency and comparability but it should be noted that this data is subject to further analysis and methodological enhancements, before it is included in BlueTrack™. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Carbon-related sectors in wholesale credit (Dealogic Industry Classification) 1,2,3 | | | | | | | | 2024 | Of which: Elevated | 2023 | Of which: Elevated | | | | £m | £m | % Change | | Agriculture, Food and Forest Products | 95 | 95 | — | — | —% | | Agriculture | 95 | 95 | — | — | | | Energy & Waters | 28,979 | 28,979 | 22,920 | 22,920 | 26% | | Power Utilities | 27,868 | 27,868 | 21,967 | 21,967 | | | Water Utilities | 1,111 | 1,111 | 953 | 953 | | | Manufacturing | 31,901 | 10,973 | 29,702 | 12,398 | 7% | | Automotive | 5,347 | 5,347 | 6,948 | 6,861 | | | Cements | 344 | 344 | 278 | 278 | | | Chemicals | 4,146 | 3,894 | 2,903 | 2,685 | | | Food, Bev and Tobacco | 7,591 | 115 | 6,845 | 460 | | | Manufacturing - Others | 10,618 | 49 | 10,277 | 198 | | | Metals | 1,280 | 623 | 298 | 55 | | | Oil and Gas (refining) | 601 | 601 | 1,225 | 1,225 | | | Packaging Manufacturers: Metal, Glass and Plastics | 1,056 | — | 223 | — | | | Paper and Forest Products (excluding logging) | 918 | — | 69 | — | | | Steel | — | — | 636 | 636 | | | Materials and Building | 6,190 | 731 | 3,853 | 686 | 61% | | Construction and Materials | 810 | 731 | 770 | 686 | | | Real Estate Management and Development | 5,380 | — | 3,083 | — | | | Mining and Quarrying | 6,290 | 6,244 | 3,080 | 3,080 | | | Mining (Incl. diversified miners)3 | 585 | 539 | 783 | 783 | | | Oil and Gas (extraction) | 5,705 | 5,705 | 2,297 | 2,297 | | | Transport & storage | 17,190 | 15,182 | 8,082 | 6,774 | | | Aviation | 4,292 | 4,292 | 1,821 | 1,653 | | | Oil and Gas (midstream) | 10,076 | 10,076 | 4,255 | 4,255 | | | Other Transport Services | 1,620 | — | 957 | — | | | Ports | 64 | 64 | — | — | | | Road Haulage | 633 | 245 | 207 | 24 | | | Shipping | 505 | 505 | 842 | 842 | | | Wholesale and retail distribution and leisure | 4,160 | 1,066 | 3,605 | 1,063 | 15% | | Oil and Gas (wholesale) | 235 | 100 | 539 | 466 | | | Others | 3,925 | 966 | 3,066 | 597 | | | Other Financial Institutions | 1,774 | — | 760 | — | | | Real Estate Management and Development (REITs) | 1,774 | — | 760 | — | | | Carbon-related Assets Grand Total | 96,579 | 63,270 | 72,002 | 46,921 | 34% | | Capital Market Financing Total | 415,433 | | 308,034 | | 35% | | Financing to Carbon-related Sector over Total Capital Market Financing (%) | 23% | | 23% | | | | Sub-total of sectors spanning in multiple industries | | | | | | | Oil and Gas | 16,617 | 16,482 | 8,316 | 8,243 | | Notes 1The scope of elevated risk sector mapping has been revised based on our periodic assessment of climate risk sectors, resulting in activities such as renewable energy within Power Utilities, Water Utilities, Construction and Material, Food and fashion related activities (Others) now classified as elevated risk sectors/carbon related assets. The prior year comparatives have been re-presented to align with the updated sector mapping. 2As industries decarbonise, sectors will increasingly include both carbon and non-carbon related activities e.g. the clients present within the sector exposure reported under Power Utilities will also have part of their generation capacity from renewable energy sources, which represents a non-carbon related activity. 3Diversified miners with minority interests in thermal coal mining are included in this category. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 158 | ## Risk review ## Risk performance #### Credit risk performance All disclosures in this section pages [158](#ia16d0659cd524c01ae655d82fa382c3d_187) to [208](#i8bf186c389d74dbc9db6fed0bc55660b_0-0-1-13-3489961), are unaudited unless otherwise stated. #### Overview Credit risk represents a significant risk to the Barclays Bank Group and mainly arises from exposure to loans and advances together with the counterparty credit risk arising from derivative contracts entered with clients. Credit risk disclosures exclude other financial assets not subject to credit risk, mainly equity securities. For off-balance sheet exposures certain contingent liabilities not subject to credit risk such as performance guarantees are excluded. Credit risk disclosures are materially aligned to the recommendations of the Taskforce on Disclosures about Expected Credit Losses (DECL). Assets held for sale: A separate section has been included within credit risk disclosures to reflect portfolios which were classified as assets held for sale. These include a co-branded card portfolio and the German consumer finance business. Summary of performance in the year Gross exposure: Gross loans and advances at amortised cost to customers and banks have increased to £198bn (2023: £189bn), driven by £11bn increase in debt securities on account of Treasury investments and £5.8bn net increased lending in corporate loans, partially offset by £(6.3)bn reclassification of a co-branded card portfolio to assets held for sale and £(3.2)bn sale of Italian mortgages business. Maximum exposure: The Barclays Bank Group’s net exposure to credit risk has increased to £909bn (2023: £894bn), primarily driven by £11bn increase in debt securities issued by governments, £10bn cash collateral and settlement balances, £2bn derivative financial instruments partially offset by decrease of £(9)bn in cash held at central banks. Overall, the extent to which the mitigation is held against total exposure has increased to 40% (2023: 38%). Credit quality: Delinquencies have remained broadly stable with an anticipated increase in US cards. A range of activities are in place to protect our existing defensive positioning against macroeconomic headwinds. The Corporate loans portfolio benefited from high-quality exposure and credit protection. Further analysis on the credit quality of assets is presented in the approach to management and representation of credit quality section. Stage decomposition: A net decrease of £1.5bn is observed in Stage 2 gross exposure driven by the reclassification of a co-branded card portfolio to assets held for sale and stage migration in corporate loans. Stage 3 balances increased to £3.9bn (2023: £3.8bn) driven by stage migration in corporate loans and US cards partially offset by sale of Italian mortgage business. Refer pages [177](#ia16d0659cd524c01ae655d82fa382c3d_217) to [178](#ia16d0659cd524c01ae655d82fa382c3d_220) for further details. Scenario: The economy is gradually recovering and is further stimulated as restrictive monetary policy continues loosening. For Q424, macroeconomic scenarios have been refreshed and are designed around a broad range of economic outcomes. The Downside 2 (DS2) scenario has been broadly aligned to Barclays 2024 Internal Stress Test (IST24) which includes climate drivers. Refer to the Barclays resilience to climate scenarios on page [54](#if64098d479e14b299dc563cca94b059e_118065) for further details. ECL: Impairment allowances on loans and advances at amortised cost including off-balance sheet have decreased to £3,860m (2023: £4,514m) primarily driven by  sale of Italian mortgage business and the reclassification of a co-branded card portfolio to assets held for sale. As a result, on balance sheet coverage has decreased 40 bps to 1.7% (2023: 2.1%). Charge: Credit impairment charges were £1,617m (2023: £1,578m), driven by the anticipated higher delinquencies in US cards partially offset by the impact of credit risk management actions and methodology enhancements. Management adjustments: Economic uncertainty adjustments have decreased to £nil (2023: £16m). The reduction is informed by the retirement of the adjustment linked to expected downside uncertainties on European Corporates. Refer to the Management adjustment to models for impairment section on pages [178](#ia16d0659cd524c01ae655d82fa382c3d_223) to [179](#i9049829b2f7a461cb384df01661be7ff_2683) for further details. Climate: Barclays Bank Group has performed a credit risk assessment of physical and transition risk due to climate change through a combination of a scenario approach and targeted reviews on specific portfolios identified as more susceptible to climate risk. As further enhancements during the year,  the  DS2 scenario has been aligned to the IST24 which is climate aware and for specific portfolios new climate modelling techniques were utilised to assess physical and transition risk due to climate change at customer level. Further detail can be found in the Financial statements section in Note 8 Credit impairment charges. Description of terminology can be found in the glossary, available at home.barclays/annualreport. Refer to the credit risk management section for details of governance, policies and procedures. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 159 | ## Risk review ## Risk performance #### Credit risk performance #### Maximum exposure and effects of netting, collateral and risk transfer The following tables present a reconciliation between the Barclays Bank Group’s maximum exposure and its net exposure to credit risk, reflecting the financial effects of risk mitigation reducing the Barclays Bank Group’s exposure. The Barclays Bank Group mitigates the credit risk to which it is exposed through netting and set-off, collateral and risk transfer. Further detail on the Barclays Bank Group's policies to each of these forms of credit enhancement is presented on pages [145](#i42ccfa2716954faaaca95f14f090c573_6720) to [146](#i42ccfa2716954faaaca95f14f090c573_6718) of the credit risk management section. Collateral obtained Where collateral has been obtained in the event of default, the Barclays Bank Group does not, ordinarily, use such assets for its own operations and they are usually sold on a timely basis. The carrying value of assets held by the Barclays Bank Group as at 31 December 2024, as a result of the enforcement of collateral, was £12m ( 2023: £6m). | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Maximum exposure and effect of netting, collateral and risk transfer (audited) | | | | | | | | | Maximum exposure | Netting and set-off | Cash collateral | Non-cash collateral | Risk transfer | Exposure net of risk mitigation | | Barclays Bank Group | | As at 31 December 2024 | £m | £m | £m | £m | £m | £m | | On-balance sheet: | | | | | | | | Cash and balances at central banks | 180,365 | — | — | — | — | 180,365 | | Cash collateral and settlement balances | 113,987 | — | — | — | — | 113,987 | | Loans and advances at amortised cost: | | | | | | | | Retail mortgages | 4,956 | — | (22) | (4,922) | — | 12 | | Retail credit cards | 19,749 | — | — | — | — | 19,749 | | Retail other | 3,918 | — | (1,106) | (2,441) | (33) | 338 | | Corporate loans | 116,204 | (3,006) | (1,104) | (57,458) | (4,536) | 50,100 | | Total loans and advances at amortised cost | 144,827 | (3,006) | (2,232) | (64,821) | (4,569) | 70,199 | | Of which credit-impaired (Stage 3): | | | | | | | | Retail mortgages | 278 | — | — | (277) | — | 1 | | Retail credit cards | 308 | — | — | — | — | 308 | | Retail other | 191 | — | (21) | (162) | — | 8 | | Corporate loans | 1,261 | — | (32) | (383) | (87) | 759 | | Total credit-impaired loans and advances at amortised cost | 2,038 | — | (53) | (822) | (87) | 1,076 | | Debt securities at amortised cost | 50,227 | — | — | (583) | (40) | 49,604 | | Reverse repurchase agreements and other similar secured lending | 3,393 | — | — | (3,393) | — | — | | Trading portfolio assets: | | | | | | | | Debt securities | 77,805 | — | — | (657) | — | 77,148 | | Traded loans | 13,470 | — | — | (878) | — | 12,592 | | Total trading portfolio assets | 91,275 | — | — | (1,535) | — | 89,740 | | Financial assets at fair value through the income statement: | | | | | | | | Loans and advances | 44,182 | — | (17) | (40,401) | — | 3,764 | | Debt securities | 2,931 | — | — | (182) | — | 2,749 | | Reverse repurchase agreements | 141,791 | — | (2,429) | (138,924) | — | 438 | | Other financial assets | 85 | — | — | — | — | 85 | | Total financial assets at fair value through the income statement | 188,989 | — | (2,446) | (179,507) | — | 7,036 | | Derivative financial instruments | 292,356 | (230,260) | (28,953) | (12,633) | (5,284) | 15,226 | | Financial assets at fair value through other comprehensive income | 51,010 | — | — | (1,104) | (102) | 49,804 | | Other assets | 665 | — | (1) | — | — | 664 | | Assets held for sale | 9,544 | — | — | — | — | 9,544 | | Total on-balance sheet | 1,126,638 | (233,266) | (33,632) | (263,576) | (9,995) | 586,169 | | | | | | | | | | Off-balance sheet: | | | | | | | | Contingent liabilities | 26,565 | — | (2,664) | (441) | (248) | 23,212 | | Loan commitments | 353,777 | — | (550) | (51,812) | (1,840) | 299,575 | | Total off-balance sheet | 380,342 | — | (3,214) | (52,253) | (2,088) | 322,787 | | | | | | | | | | Total | 1,506,980 | (233,266) | (36,846) | (315,829) | (12,083) | 908,956 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 160 | ## Risk review ## Risk performance #### Credit risk performance Off-balance sheet exposures are shown gross of provisions of £420m (2023: £473m). See Note 23 for further details. In addition to the above, Barclays Bank Group holds forward starting reverse repos amounting to £108.6bn (2023: £54.3bn). These balances are fully collateralised. Corporate loans at amortised cost include £0.2bn ( 2023 : £0.3bn) of CBILs and CLBILs supported by UK government guarantees of £0.1bn (2023: £0.2bn) which are included within the Risk transfer column in the table. Reported off-balance sheet loan commitments also include exposures relating to financial assets classified as assets held for sale. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Maximum exposure and effects of netting, collateral and risk transfer (audited) | | | | | | | | | Maximum exposure | Netting and set-off | Cash collateral | Non-cash collateral | Risk transfer | Exposure net of risk mitigation | | Barclays Bank Group | | As at 31 December 2023 | £m | £m | £m | £m | £m | £m | | On-balance sheet: | | | | | | | | Cash and balances at central banks | 189,686 | — | — | — | — | 189,686 | | Cash collateral and settlement balances | 103,708 | — | — | — | — | 103,708 | | Loans and advances at amortised cost: | | | | | | | | Retail mortgages | 8,002 | — | (13) | (7,976) | — | 13 | | Retail credit cards | 24,511 | — | — | — | — | 24,511 | | Retail other | 3,366 | — | (1,007) | (2,024) | (39) | 296 | | Corporate loans | 110,322 | (3,876) | (1,111) | (51,105) | (5,222) | 49,008 | | Total loans and advances at amortised cost | 146,201 | (3,876) | (2,131) | (61,105) | (5,261) | 73,828 | | Of which credit-impaired (Stage 3): | | | | | | | | Retail mortgages | 395 | — | — | (393) | — | 2 | | Retail credit cards | 296 | — | — | — | — | 296 | | Retail other | 273 | — | (23) | (245) | — | 5 | | Corporate loans | 887 | — | (4) | (601) | (128) | 154 | | Total credit-impaired loans and advances at amortised cost | 1,851 | — | (27) | (1,239) | (128) | 457 | | Debt securities at amortised cost | 39,046 | — | — | (956) | (79) | 38,011 | | Reverse repurchase agreements and other similar secured lending | 1,103 | — | — | (1,103) | — | — | | Trading portfolio assets: | | | | | | | | Debt securities | 75,459 | — | — | (521) | — | 74,938 | | Traded loans | 12,653 | — | — | (189) | — | 12,464 | | Total trading portfolio assets | 88,112 | — | — | (710) | — | 87,402 | | Financial assets at fair value through the income statement: | | | | | | | | Loans and advances | 46,541 | — | (47) | (39,998) | (4) | 6,492 | | Debt securities | 2,545 | — | — | (221) | — | 2,324 | | Reverse repurchase agreements | 149,131 | — | (3,416) | (145,292) | — | 423 | | Other financial assets | 81 | — | — | — | — | 81 | | Total financial assets at fair value through the income statement | 198,298 | — | (3,463) | (185,511) | (4) | 9,320 | | Derivative financial instruments | 256,111 | (198,633) | (29,944) | (9,983) | (3,791) | 13,760 | | Financial assets at fair value through other comprehensive income | 51,421 | — | — | (362) | (134) | 50,925 | | Other assets | 2,068 | — | (1) | — | — | 2,067 | | Assets held for sale | 3,855 | — | — | — | — | 3,855 | | Total on-balance sheet | 1,079,609 | (202,509) | (35,539) | (259,730) | (9,269) | 572,562 | | | | | | | | | | Off-balance sheet: | | | | | | | | Contingent liabilities | 26,829 | — | (2,225) | (358) | (283) | 23,963 | | Loan commitments | 337,935 | — | (1,486) | (37,596) | (1,709) | 297,144 | | Total off-balance sheet | 364,764 | — | (3,711) | (37,954) | (1,992) | 321,107 | | | | | | | | | | Total | 1,444,373 | (202,509) | (39,250) | (297,684) | (11,261) | 893,669 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 161 | ## Risk review ## Risk performance #### Credit risk performance | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Maximum exposure and effects of netting, collateral and risk transfer (audited) | | | | | | | | | Maximum exposure | Netting and set-off | Cash collateral | Non-cash collateral | Risk transfer | Exposure net of risk mitigation | | Barclays Bank PLC | | As at 31 December 2024 | £m | £m | £m | £m | £m | £m | | On-balance sheet: | | | | | | | | Cash and balances at central banks | 151,288 | — | — | — | — | 151,288 | | Cash collateral and settlement balances | 75,284 | — | — | — | — | 75,284 | | Loans and advances at amortised cost: | — | — | — | — | — | — | | Retail mortgages | 4,481 | — | (20) | (4,453) | — | 8 | | Retail credit cards | — | — | — | — | — | — | | Retail other | 2,900 | — | (949) | (1,747) | (2) | 202 | | Corporate loans | 217,671 | (3,006) | (1,407) | (44,962) | (7,462) | 160,834 | | Total loans and advances at amortised cost | 225,052 | (3,006) | (2,376) | (51,162) | (7,464) | 161,044 | | Of which credit-impaired (Stage 3): | — | — | — | — | — | — | | Retail mortgages | 224 | — | — | (224) | — | — | | Retail credit cards | — | — | — | — | — | — | | Retail other | 162 | — | (21) | (133) | — | 8 | | Corporate loans | 1,019 | — | (32) | (331) | (53) | 603 | | Total credit-impaired loans and advances at amortised cost | 1,405 | — | (53) | (688) | (53) | 611 | | Debt securities at amortised cost | 35,519 | — | — | (583) | (40) | 34,896 | | Reverse repurchase agreements and other similar secured lending | 5,546 | — | — | (5,546) | — | — | | Trading portfolio assets: | — | — | — | — | — | — | | Debt securities | 38,658 | — | — | (657) | — | 38,001 | | Traded loans | 12,880 | — | — | (878) | — | 12,002 | | Total trading portfolio assets | 51,538 | — | — | (1,535) | — | 50,003 | | Financial assets at fair value through the income statement: | — | — | — | — | — | — | | Loans and advances | 54,711 | — | (17) | (21,988) | — | 32,706 | | Debt securities | 4,165 | — | — | — | — | 4,165 | | Reverse repurchase agreements | 194,770 | — | (2,238) | (192,531) | — | 1 | | Other financial assets | 21 | — | — | — | — | 21 | | Total financial assets at fair value through the income statement | 253,667 | — | (2,255) | (214,519) | — | 36,893 | | Derivative financial instruments | 260,487 | (207,100) | (20,218) | (10,981) | (4,572) | 17,616 | | Financial assets at fair value through other comprehensive income | 49,499 | — | — | (1,104) | (102) | 48,293 | | Other assets | 723 | — | — | — | — | 723 | | Total on-balance sheet | 1,108,603 | (210,106) | (24,849) | (285,430) | (12,178) | 576,040 | | | | | | | | | | Off-balance sheet: | | | | | | | | Contingent liabilities | 48,506 | — | (2,342) | (436) | (248) | 45,480 | | Loan commitments | 222,182 | — | (369) | (57,440) | (1,816) | 162,557 | | Total off-balance sheet | 270,688 | — | (2,711) | (57,876) | (2,064) | 208,037 | | | | | | | | | | Total | 1,379,291 | (210,106) | (27,560) | (343,306) | (14,242) | 784,077 | Off-balance sheet exposures are shown gross of provisions of £331m (2023: £352m). See Note 23 for further details. In addition to the above, Barclays Bank PLC holds forward starting reverse repos amounting to £62.3bn (2023: £43.3bn). These balances are fully collateralised. Corporate loans at amortised cost include £0.2bn (2023: £0.3bn ) of CBILs and CLBILs supported by UK government guarantees of £0.1bn (2023 : £0.2bn) which are included within the Risk transfer column in the table. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 162 | ## Risk review ## Risk performance #### Credit risk performance | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Maximum exposure and effects of netting, collateral and risk transfer (audited) | | | | | | | | | Maximum exposure | Netting and set-off | Cash collateral | Non-cash collateral | Risk transfer | Exposure net of risk mitigation | | Barclays Bank PLC | | As at 31 December 2023 | £m | £m | £m | £m | £m | £m | | On-balance sheet: | | | | | | | | Cash and balances at central banks | 153,701 | — | — | — | — | 153,701 | | Cash collateral and settlement balances | 75,271 | — | — | — | — | 75,271 | | Loans and advances at amortised cost: | | | | | | | | Retail mortgages | 4,475 | — | (12) | (4,454) | — | 9 | | Retail credit cards | — | — | — | — | — | — | | Retail other | 2,420 | — | (825) | (1,365) | — | 230 | | Corporate loans | 235,544 | (3,876) | (1,215) | (47,899) | (8,678) | 173,876 | | Total loans and advances at amortised cost | 242,439 | (3,876) | (2,052) | (53,718) | (8,678) | 174,115 | | Of which credit-impaired (Stage 3): | | | | | | | | Retail mortgages | 278 | — | — | (277) | — | 1 | | Retail credit cards | — | — | — | — | — | — | | Retail others | 231 | — | (20) | (207) | — | 4 | | Corporate loans | 703 | — | (4) | (519) | (62) | 118 | | Total credit-impaired loans and advances at amortised cost | 1,212 | — | (24) | (1,003) | (62) | 123 | | Debt securities at amortised cost | 33,576 | — | — | (829) | (79) | 32,668 | | Reverse repurchase agreements and other similar secured lending | 6,876 | — | — | (6,876) | — | — | | Trading portfolio assets: | | | | | | | | Debt securities | 37,492 | — | — | (521) | — | 36,971 | | Traded loans | 12,599 | — | — | (189) | — | 12,410 | | Total trading portfolio assets | 50,091 | — | — | (710) | — | 49,381 | | Financial assets at fair value through the income statement: | | | | | | | | Loans and advances | 51,936 | — | (47) | (22,208) | (4) | 29,677 | | Debt securities | 3,604 | — | — | (91) | — | 3,513 | | Reverse repurchase agreements | 208,284 | — | (2,672) | (205,612) | — | — | | Other financial assets | 17 | — | — | — | — | 17 | | Total financial assets at fair value through the income statement | 263,841 | — | (2,719) | (227,911) | (4) | 33,207 | | Derivative financial instruments | 225,301 | (179,930) | (20,465) | (8,389) | (3,714) | 12,803 | | Financial assets at fair value through other comprehensive income | 50,381 | — | — | (362) | (134) | 49,885 | | Other assets | 2,202 | — | — | — | — | 2,202 | | Total on-balance sheet | 1,103,679 | (183,806) | (25,236) | (298,795) | (12,609) | 583,233 | | | | | | | | | | Off-balance sheet: | | | | | | | | Contingent liabilities | 68,953 | — | (1,890) | (353) | (283) | 66,427 | | Loan commitments | 206,727 | — | (1,250) | (44,319) | (1,684) | 159,474 | | Total off-balance sheet | 275,680 | — | (3,140) | (44,672) | (1,967) | 225,901 | | | | | | | | | | Total | 1,379,359 | (183,806) | (28,376) | (343,467) | (14,576) | 809,134 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 163 | ## Risk review ## Risk performance #### Credit risk performance #### Expected credit losses Loans and advances at amortised cost by product Total loans and advances at amortised cost in the credit risk performance section includes loans and advances at amortised cost to banks and loans and advances at amortised cost to customers. The table below presents a product breakdown by stages of loans and advances at amortised cost and the impairment allowance. Also included are stage allocation of debt securities by gross exposure, impairment allowance and coverage ratio. Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment allowance is allocated to gross loans and advances to the extent allowance does not exceed the drawn exposure and any excess is reported on the liabilities side of the balance sheet as a provision. For corporate portfolios, impairment allowance on undrawn exposure is reported on the liability side of the balance sheet as a provision. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Barclays Bank Group (audited) | | Stage 2 | | | | | | | As at 31 December 2024 | Stage 1 | Not past due | <=30 days past due | >30 days past due | Total | Stage 3 | Total1 | | Gross exposure | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | 4,537 | 9 | — | 141 | 150 | 310 | 4,997 | | Retail credit cards | 17,629 | 2,449 | 256 | 248 | 2,953 | 1,724 | 22,306 | | Retail other | 3,329 | 177 | 157 | 70 | 404 | 216 | 3,949 | | Corporate loans | 107,194 | 7,944 | 137 | 66 | 8,147 | 1,654 | 116,995 | | Total loans and advances at amortised cost | 132,689 | 10,579 | 550 | 525 | 11,654 | 3,904 | 148,247 | | Debt securities at amortised cost | 47,077 | 3,170 | — | — | 3,170 | — | 50,247 | | Total loans and advances at amortised cost including debt securities | 179,766 | 13,749 | 550 | 525 | 14,824 | 3,904 | 198,494 | | | | | | | | | | | Impairment allowance | | | | | | | | | Retail mortgages | 8 | 1 | — | — | 1 | 32 | 41 | | Retail credit cards | 334 | 552 | 105 | 150 | 807 | 1,416 | 2,557 | | Retail other | 5 | 1 | — | — | 1 | 25 | 31 | | Corporate loans | 144 | 240 | 6 | 8 | 254 | 393 | 791 | | Total loans and advances at amortised cost | 491 | 794 | 111 | 158 | 1,063 | 1,866 | 3,420 | | Debt securities at amortised cost | 9 | 11 | — | — | 11 | — | 20 | | Total loans and advances at amortised cost including debt securities | 500 | 805 | 111 | 158 | 1,074 | 1,866 | 3,440 | | | | | | | | | | | Net exposure | | | | | | | | | Retail mortgages | 4,529 | 8 | — | 141 | 149 | 278 | 4,956 | | Retail credit cards | 17,295 | 1,897 | 151 | 98 | 2,146 | 308 | 19,749 | | Retail other | 3,324 | 176 | 157 | 70 | 403 | 191 | 3,918 | | Corporate loans | 107,050 | 7,704 | 131 | 58 | 7,893 | 1,261 | 116,204 | | Total loans and advances at amortised cost | 132,198 | 9,785 | 439 | 367 | 10,591 | 2,038 | 144,827 | | Debt securities at amortised cost | 47,068 | 3,159 | — | — | 3,159 | — | 50,227 | | Total loans and advances at amortised cost including debt securities | 179,266 | 12,944 | 439 | 367 | 13,750 | 2,038 | 195,054 | | | | | | | | | | | Coverage ratio | % | % | % | % | % | % | % | | Retail mortgages | 0.2 | 11.1 | — | — | 0.7 | 10.3 | 0.8 | | Retail credit cards | 1.9 | 22.5 | 41.0 | 60.5 | 27.3 | 82.1 | 11.5 | | Retail other | 0.2 | 0.6 | — | — | 0.2 | 11.6 | 0.8 | | Corporate loans | 0.1 | 3.0 | 4.4 | 12.1 | 3.1 | 23.8 | 0.7 | | Total loans and advances at amortised cost | 0.4 | 7.5 | 20.2 | 30.1 | 9.1 | 47.8 | 2.3 | | Debt securities at amortised cost | — | 0.3 | — | — | 0.3 | — | — | | Total loans and advances at amortised cost including debt securities | 0.3 | 5.9 | 20.2 | 30.1 | 7.2 | 47.8 | 1.7 | Note 1Other financial assets subject to impairment excluded in the table above include cash collateral and settlement balances, reverse repurchase agreements and other similar secured lending, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £169.6bn and an impairment allowance of £150m. This comprises £17m impairment allowance on £168.3bn Stage 1 exposure, £7m on £1.1bn Stage 2 exposure and £126m on £130m Stage 3 exposure. Loan commitments and financial guarantee contracts have total impairment allowance of £420m. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 164 | ## Risk review ## Risk performance #### Credit risk performance | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Barclays Bank Group (audited) | | Stage 2 | | | | | | | As at 31 December 2023 | Stage 1 | Not past due | <=30 days past due | >30 days past due | Total | Stage 3 | Total1 | | Gross exposure | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | 7,257 | 342 | 14 | 33 | 389 | 716 | 8,362 | | Retail credit cards | 22,315 | 2,818 | 339 | 293 | 3,450 | 1,522 | 27,287 | | Retail other | 2,734 | 210 | 71 | 88 | 369 | 308 | 3,411 | | Corporate loans | 100,956 | 8,642 | 166 | 159 | 8,967 | 1,235 | 111,158 | | Total loans and advances at amortised cost | 133,262 | 12,012 | 590 | 573 | 13,175 | 3,781 | 150,218 | | Debt securities at amortised cost | 35,321 | 3,749 | — | — | 3,749 | — | 39,070 | | Total loans and advances at amortised cost including debt securities | 168,583 | 15,761 | 590 | 573 | 16,924 | 3,781 | 189,288 | | | | | | | | | | | Impairment allowance | | | | | | | | | Retail mortgages | 11 | 23 | 3 | 2 | 28 | 321 | 360 | | Retail credit cards | 412 | 805 | 145 | 188 | 1,138 | 1,226 | 2,776 | | Retail other | 8 | 2 | 0 | 0 | 2 | 35 | 45 | | Corporate loans | 179 | 295 | 7 | 7 | 309 | 348 | 836 | | Total loans and advances at amortised cost | 610 | 1,125 | 155 | 197 | 1,477 | 1,930 | 4,017 | | Debt securities at amortised cost | 7 | 17 | — | — | 17 | — | 24 | | Total loans and advances at amortised cost including debt securities | 617 | 1,142 | 155 | 197 | 1,494 | 1,930 | 4,041 | | | | | | | | | | | Net exposure | | | | | | | | | Retail mortgages | 7,246 | 319 | 11 | 31 | 361 | 395 | 8,002 | | Retail credit cards | 21,903 | 2,013 | 194 | 105 | 2,312 | 296 | 24,511 | | Retail other | 2,726 | 208 | 71 | 88 | 367 | 273 | 3,366 | | Corporate loans | 100,777 | 8,347 | 159 | 152 | 8,658 | 887 | 110,322 | | Total loans and advances at amortised cost | 132,652 | 10,887 | 435 | 376 | 11,698 | 1,851 | 146,201 | | Debt securities at amortised cost | 35,314 | 3,732 | — | — | 3,732 | — | 39,046 | | Total loans and advances at amortised cost including debt securities | 167,966 | 14,619 | 435 | 376 | 15,430 | 1,851 | 185,247 | | | | | | | | | | | Coverage ratio | % | % | % | % | % | % | % | | Retail mortgages | 0.2 | 6.7 | 21.4 | 6.1 | 7.2 | 44.8 | 4.3 | | Retail credit cards | 1.8 | 28.6 | 42.8 | 64.2 | 33.0 | 80.6 | 10.2 | | Retail other | 0.3 | 1.0 | 0.0 | 0.0 | 0.5 | 11.4 | 1.3 | | Corporate loans | 0.2 | 3.4 | 4.2 | 4.4 | 3.4 | 28.2 | 0.8 | | Total loans and advances at amortised cost | 0.5 | 9.4 | 26.3 | 34.4 | 11.2 | 51.0 | 2.7 | | Debt securities at amortised cost | — | 0.5 | — | — | 0.5 | — | 0.1 | | Total loans and advances at amortised cost including debt securities | 0.4 | 7.2 | 26.3 | 34.4 | 8.8 | 51.0 | 2.1 | Note 1Other financial assets subject to impairment excluded in the table above include cash collateral and settlement balances, reverse repurchase agreements and other similar secured lending, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £158.8bn and an impairment allowance of £145m. This comprises £14m impairment allowance on £158.5bn Stage 1 exposure, £1m on £0.2bn Stage 2 exposure and £130m on £136m Stage 3 exposure. Loan commitments and financial guarantee contracts have total impairment allowance of £473m. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 165 | ## Risk review ## Risk performance #### Credit risk performance | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Barclays Bank PLC | | Stage 2 | | | | | | | As at 31 December 2024 | Stage 1 | Not past due | <=30 days past due | >30 days past due | Total | Stage 3 | Total1 | | Gross exposure | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | 4,129 | 4 | — | 132 | 136 | 249 | 4,514 | | Retail credit cards | — | — | — | — | — | — | — | | Retail other | 2,387 | 158 | 156 | 40 | 354 | 175 | 2,916 | | Corporate loans | 209,362 | 7,457 | 136 | 45 | 7,638 | 1,371 | 218,371 | | Total loans and advances at amortised cost | 215,878 | 7,619 | 292 | 217 | 8,128 | 1,795 | 225,801 | | Debt securities at amortised cost | 34,156 | 1,371 | — | — | 1,371 | — | 35,527 | | Total loans and advances at amortised cost including debt securities | 250,034 | 8,990 | 292 | 217 | 9,499 | 1,795 | 261,328 | | | | | | | | | | | Impairment allowance | | | | | | | | | Retail mortgages | 8 | — | — | — | — | 25 | 33 | | Retail credit cards | — | — | — | — | — | — | — | | Retail other | 3 | — | — | — | — | 13 | 16 | | Corporate loans | 129 | 206 | 6 | 7 | 219 | 352 | 700 | | Total loans and advances at amortised cost | 140 | 206 | 6 | 7 | 219 | 390 | 749 | | Debt securities at amortised cost | 5 | 3 | — | — | 3 | — | 8 | | Total loans and advances at amortised cost including debt securities | 145 | 209 | 6 | 7 | 222 | 390 | 757 | | | | | | | | | | | Net exposure | | | | | | | | | Retail mortgages | 4,121 | 4 | — | 132 | 136 | 224 | 4,481 | | Retail credit cards | — | — | — | — | — | — | — | | Retail other | 2,384 | 158 | 156 | 40 | 354 | 162 | 2,900 | | Corporate loans | 209,233 | 7,251 | 130 | 38 | 7,419 | 1,019 | 217,671 | | Total loans and advances at amortised cost | 215,738 | 7,413 | 286 | 210 | 7,909 | 1,405 | 225,052 | | Debt securities at amortised cost | 34,151 | 1,368 | — | — | 1,368 | — | 35,519 | | Total loans and advances at amortised cost including debt securities | 249,889 | 8,781 | 286 | 210 | 9,277 | 1,405 | 260,571 | | | | | | | | | | | Coverage ratio | % | % | % | % | % | % | % | | Retail mortgages | 0.2 | — | — | — | — | 10.0 | 0.7 | | Retail credit cards | — | — | — | — | — | — | — | | Retail other | 0.1 | — | — | — | — | 7.4 | 0.5 | | Corporate loans | 0.1 | 2.8 | 4.4 | 15.6 | 2.9 | 25.7 | 0.3 | | Total loans and advances at amortised cost | 0.1 | 2.7 | 2.1 | 3.2 | 2.7 | 21.7 | 0.3 | | Debt securities at amortised cost | — | 0.2 | — | — | 0.2 | — | — | | Total loans and advances at amortised cost including debt securities | 0.1 | 2.3 | 2.1 | 3.2 | 2.3 | 21.7 | 0.3 | | | | | | | | | | Note 1Other financial assets subject to impairment excluded in the table above include cash collateral and settlement balances, reverse repurchase agreements and other similar secured lending, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £131.4bn and an impairment allowance of £146m. This comprises £17m impairment allowance on £130.2bn Stage 1 exposure, £6m on £1.1bn Stage 2 exposure and £123m on £127m Stage 3 exposure. Loan commitments and financial guarantee contracts have total impairment allowance of £331m. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 166 | ## Risk review ## Risk performance #### Credit risk performance | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Barclays Bank PLC | | Stage 2 | | | | | | | As at 31 December 2023 | Stage 1 | Not past due | <=30 days past due | >30 days past due | Total | Stage 3 | Total1 | | Gross exposure | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | 4,150 | 32 | — | 20 | 52 | 572 | 4,774 | | Retail credit cards | — | — | — | — | — | — | — | | Retail other | 1,913 | 198 | 70 | 15 | 283 | 249 | 2,445 | | Corporate loans | 227,177 | 7,823 | 164 | 108 | 8,095 | 1,001 | 236,273 | | Total loans and advances at amortised cost | 233,240 | 8,053 | 234 | 143 | 8,430 | 1,822 | 243,492 | | Debt securities at amortised cost | 31,004 | 2,587 | — | — | 2,587 | — | 33,591 | | Total loans and advances at amortised cost including debt securities | 264,244 | 10,640 | 234 | 143 | 11,017 | 1,822 | 277,083 | | | | | | | | | | | Impairment allowance | | | | | | | | | Retail mortgages | 5 | — | — | — | — | 294 | 299 | | Retail credit cards | — | — | — | — | — | — | — | | Retail other | 6 | 1 | — | — | 1 | 18 | 25 | | Corporate loans | 167 | 252 | 6 | 6 | 264 | 298 | 729 | | Total loans and advances at amortised cost | 178 | 253 | 6 | 6 | 265 | 610 | 1,053 | | Debt securities at amortised cost | 4 | 11 | — | — | 11 | — | 15 | | Total loans and advances at amortised cost including debt securities | 182 | 264 | 6 | 6 | 276 | 610 | 1,068 | | | | | | | | | | | Net exposure | | | | | | | | | Retail mortgages | 4,145 | 32 | — | 20 | 52 | 278 | 4,475 | | Retail credit cards | — | — | — | — | — | — | — | | Retail other | 1,907 | 197 | 70 | 15 | 282 | 231 | 2,420 | | Corporate loans | 227,010 | 7,571 | 158 | 102 | 7,831 | 703 | 235,544 | | Total loans and advances at amortised cost | 233,062 | 7,800 | 228 | 137 | 8,165 | 1,212 | 242,439 | | Debt securities at amortised cost | 31,000 | 2,576 | — | — | 2,576 | — | 33,576 | | Total loans and advances at amortised cost including debt securities | 264,062 | 10,376 | 228 | 137 | 10,741 | 1,212 | 276,015 | | | | | | | | | | | Coverage ratio | % | % | % | % | % | % | % | | Retail mortgages | 0.1 | — | — | — | — | 51.4 | 6.3 | | Retail credit cards | — | — | — | — | — | — | — | | Retail other | 0.3 | 0.5 | — | — | 0.4 | 7.2 | 1.0 | | Corporate loans | 0.1 | 3.2 | 3.7 | 5.6 | 3.3 | 29.8 | 0.3 | | Total loans and advances at amortised cost | 0.1 | 3.1 | 2.6 | 4.2 | 3.1 | 33.5 | 0.4 | | Debt securities at amortised cost | — | 0.4 | — | — | 0.4 | — | — | | Total loans and advances at amortised cost including debt securities | 0.1 | 2.5 | 2.6 | 4.2 | 2.5 | 33.5 | 0.4 | Note 1Other financial assets subject to impairment excluded in the table above include cash collateral and settlement balances, reverse repurchase agreements and other similar secured lending, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £135.1bn and an impairment allowance of £140m. This comprises £14m impairment allowance on £134.8bn Stage 1 exposure, £0m on £0.2bn Stage 2 exposure and £126m on £133m Stage 3 exposure. Loan commitments and financial guarantee contracts have total impairment allowance of £352m. Movement in gross exposures and impairment allowance including provisions for loan commitments and financial guarantees (audited) The following tables present a reconciliation of the opening to the closing balance of the exposure and impairment allowance. Transfers between stages in the tables have been reflected as if they had taken place at the beginning of the year. 'Net drawdowns, repayments, net-remeasurement and movements due to exposure and risk parameter changes' includes additional drawdowns and partial repayments from existing facilities. Additionally, the below tables do not include other financial assets subject to impairment such as debt securities at amortised cost, reverse repurchase agreements and other similar secured lending, cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets . The movements are measured over a 12-month period. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 167 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Loans and advances at amortised cost (audited) | Stage 1 | | Stage 2 | | Stage 3 | | Total | | | Barclays Bank Group | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL | | | £m | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | | | | | | | | | | As at 1 January 2024 | 7,257 | 11 | 389 | 28 | 716 | 321 | 8,362 | 360 | | Transfers from Stage 1 to Stage 2 | (231) | — | 231 | — | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 91 | 3 | (91) | (3) | — | — | — | — | | Transfers to Stage 3 | (82) | — | (30) | (3) | 112 | 3 | — | — | | Transfers from Stage 3 | 19 | 1 | 11 | — | (30) | (1) | — | — | | Business activity in the year | 632 | 1 | — | — | 2 | — | 634 | 1 | | Refinements to models used for calculation | — | — | — | — | — | — | — | — | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 197 | (2) | (2) | 9 | 69 | 40 | 264 | 47 | | Final repayments | (893) | (1) | (45) | (1) | (86) | (3) | (1,024) | (5) | | Disposals1 | (2,453) | (5) | (313) | (29) | (461) | (316) | (3,227) | (350) | | Write-offs | — | — | — | — | (12) | (12) | (12) | (12) | | As at 31 December 2024 | 4,537 | 8 | 150 | 1 | 310 | 32 | 4,997 | 41 | | | | | | | | | | | | Retail credit cards | | | | | | | | | | As at 1 January 2024 | 22,315 | 412 | 3,450 | 1,138 | 1,522 | 1,226 | 27,287 | 2,776 | | Transfers from Stage 1 to Stage 2 | (1,503) | (51) | 1,503 | 51 | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 1,170 | 321 | (1,170) | (321) | — | — | — | — | | Transfers to Stage 3 | (616) | (24) | (876) | (390) | 1,492 | 414 | — | — | | Transfers from Stage 3 | 10 | 9 | 8 | 5 | (18) | (14) | — | — | | Business activity in the year | 1,508 | 33 | 206 | 59 | 20 | 18 | 1,734 | 110 | | Refinements to models used for calculation2 | — | 5 | — | 2 | — | 4 | — | 11 | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 1,039 | (280) | 728 | 506 | (45) | 973 | 1,722 | 1,199 | | Final repayments | (108) | (7) | (32) | (13) | (1) | — | (141) | (20) | | Transfers to assets held for sale3 | (5,495) | (64) | (689) | (161) | (57) | (46) | (6,241) | (271) | | Disposals1 | (691) | (20) | (175) | (69) | (249) | (219) | (1,115) | (308) | | Write-offs | — | — | — | — | (940) | (940) | (940) | (940) | | As at 31 December 2024 | 17,629 | 334 | 2,953 | 807 | 1,724 | 1,416 | 22,306 | 2,557 | | | | | | | | | | | | Retail other | | | | | | | | | | As at 1 January 2024 | 2,734 | 8 | 369 | 2 | 308 | 35 | 3,411 | 45 | | Transfers from Stage 1 to Stage 2 | (221) | — | 221 | — | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 86 | — | (86) | — | — | — | — | — | | Transfers to Stage 3 | (148) | — | (53) | — | 201 | — | — | — | | Transfers from Stage 3 | 82 | — | 47 | — | (129) | — | — | — | | Business activity in the year | 1,159 | 1 | — | — | — | — | 1,159 | 1 | | Refinements to models used for calculation | — | — | — | — | — | — | — | — | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 1,640 | — | 36 | — | 74 | 13 | 1,750 | 13 | | Final repayments | (2,003) | (4) | (130) | (1) | (224) | (9) | (2,357) | (14) | | Disposals | — | — | — | — | — | — | — | — | | Write-offs | — | — | — | — | (14) | (14) | (14) | (14) | | As at 31 December 2024 | 3,329 | 5 | 404 | 1 | 216 | 25 | 3,949 | 31 | Notes 1The £3.2bn of gross disposals reported within Retail mortgages relate to sale of the Italian mortgage portfolio. The £1.1bn of  gross disposals reported within Retail credit cards include £0.9bn sale of outstanding US Cards receivables to Blackstone and £0.2bn of other debt sale undertaken during the year. 2Refinements to models used for calculation reported within Retail credit cards include a £11m movement in the calculated ECL for the US Cards portfolio. These reflect model enhancements made during the year. Barclays Bank Group continually reviews the output of models to determine accuracy of the ECL calculation including review of model monitoring, external benchmarking and experience of model operation over an extended period of time. This helps to ensure that the models used continue to reflect the risks inherent across the businesses. 3    Transfers to assets held for sale reported within Retail credit cards relate to a co-branded card portfolio within USCB. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 168 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Loans and advances at amortised cost (audited) | Stage 1 | | Stage 2 | | Stage 3 | | Total | | | Barclays Bank Group | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL | | | £m | £m | £m | £m | £m | £m | £m | £m | | Corporate loans | | | | | | | | | | As at 1 January 2024 | 100,956 | 179 | 8,967 | 309 | 1,235 | 348 | 111,158 | 836 | | Transfers from Stage 1 to Stage 2 | (2,586) | (15) | 2,586 | 15 | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 2,098 | 42 | (2,098) | (42) | — | — | — | — | | Transfers to Stage 3 | (404) | (2) | (392) | (21) | 796 | 23 | — | — | | Transfers from Stage 3 | 143 | 1 | 23 | 5 | (166) | (6) | — | — | | Business activity in the year | 28,497 | 39 | 811 | 34 | 183 | 19 | 29,491 | 92 | | Refinements to models used for calculation1 | — | 18 | — | 51 | — | — | — | 69 | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 3,957 | (76) | 198 | — | 6 | 270 | 4,161 | 194 | | Final repayments | (25,406) | (40) | (1,937) | (92) | (142) | (3) | (27,485) | (135) | | Transfers to assets held for sale2 | (49) | (1) | (9) | (3) | (1) | (1) | (59) | (5) | | Disposals3 | (12) | (1) | (2) | (2) | (2) | (2) | (16) | (5) | | Write-offs | — | — | — | — | (255) | (255) | (255) | (255) | | As at 31 December 2024 | 107,194 | 144 | 8,147 | 254 | 1,654 | 393 | 116,995 | 791 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Reconciliation of ECL movement to credit impairment charge/(release) for the period | Stage 1 | Stage 2 | Stage 3 | Total | | | £m | £m | £m | £m | | Retail mortgages | 2 | 2 | 39 | 43 | | Retail credit cards | 6 | (101) | 1,395 | 1,300 | | Retail other | (3) | (1) | 4 | — | | Corporate loans | (33) | (50) | 303 | 220 | | ECL movement excluding assets held for sale, disposals and write-offs4 | (28) | (150) | 1,741 | 1,563 | | ECL movement on loan commitments and financial guarantees | (12) | (23) | (18) | (53) | | ECL movement on other financial assets | 3 | 6 | (4) | 5 | | ECL movement on debt securities at amortised cost | 2 | (6) | — | (4) | | Recoveries and reimbursements5 | (20) | 23 | (42) | (39) | | ECL charge on assets held for sale6 | | | | 74 | | Total exchange and other adjustments | | | | 71 | | Total credit impairment charge for the year | | | | 1,617 | Notes 1 Refinements to models used for calculation reported within Corporate loans include a £69m movement in the calculated ECL for the IB portfolio. These reflect model enhancements made during the period. Barclays Bank Group continually reviews the output of models to determine accuracy of the ECL calculation including review of model monitoring,external benchmarking and experience of model operation over an extended period of time. This helps to ensure that the models used continue to reflect the risks inherent across the businesses. 2 Transfers to assets held for sale reported within Corporate loans relate to a co-branded card portfolio within USCB. 3 The £16m of gross disposals reported within Corporate loans relate to debt sales undertaken during the year. 4 In 2024, gross write-offs amounted to £1,221m and post write-off recoveries amounted to £28m. Net write-offs represent gross write-offs less post write-off recoveries and amounted to £1,193m. 5 Recoveries and reimbursements include £11m of reimbursements expected to be received under the arrangement where Barclays Bank Group has entered into financial guarantee contracts which provide credit protection over certain assets with third parties and cash recoveries of previously written off amounts of £28m. 6 ECL charge on assets held for sale relate to the German consumer finance business. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 169 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Loan commitments and financial guarantees (audited)1 | Stage 1 | | Stage 2 | | Stage 3 | | Total | | | Barclays Bank Group | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL | | | £m | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | | | | | | | | | | As at 1 January 2024 | 41 | — | — | — | 1 | — | 42 | — | | Net transfers between stages | — | — | — | — | — | — | — | — | | Business activity in the year | — | — | — | — | — | — | — | — | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | (16) | — | — | — | — | — | (16) | — | | Limit management and final repayments | (7) | — | — | — | — | — | (7) | — | | As at 31 December 2024 | 18 | — | — | — | 1 | — | 19 | — | | | | | | | | | | | | Retail credit cards | | | | | | | | | | As at 1 January 2024 | 109,634 | 48 | 1,767 | 36 | 10 | 1 | 111,411 | 85 | | Net transfers between stages | (1,682) | 20 | 1,675 | (20) | 7 | — | — | — | | Business activity in the year | 15,489 | 11 | 160 | 3 | 1 | — | 15,650 | 14 | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 2,467 | (34) | (1,576) | 11 | (8) | — | 883 | (23) | | Limit management and final repayments | (13,263) | (11) | (378) | (15) | — | — | (13,641) | (26) | | As at 31 December 2024 | 112,645 | 34 | 1,648 | 15 | 10 | 1 | 114,303 | 50 | | | | | | | | | | | | Retail other | | | | | | | | | | As at 1 January 2024 | 3,446 | 5 | 116 | 2 | 29 | — | 3,591 | 7 | | Net transfers between stages | (35) | — | 23 | — | 12 | — | — | — | | Business activity in the year | 741 | 2 | 1 | — | — | — | 742 | 2 | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 621 | (2) | (26) | (2) | (7) | — | 588 | (4) | | Limit management and final repayments | (803) | — | (11) | — | (23) | — | (837) | — | | As at 31 December 2024 | 3,970 | 5 | 103 | — | 11 | — | 4,084 | 5 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Corporate loans | | | | | | | | | | As at 1 January 2024 | 212,414 | 114 | 20,035 | 225 | 802 | 42 | 233,251 | 381 | | Net transfers between stages | 1,240 | 29 | (1,519) | (32) | 279 | 3 | — | — | | Business activity in the year | 50,350 | 33 | 1,650 | 30 | 192 | — | 52,192 | 63 | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 10,133 | (34) | (1,391) | 65 | (31) | (13) | 8,711 | 18 | | Limit management and final repayments | (44,572) | (26) | (3,696) | (63) | (288) | (8) | (48,556) | (97) | | As at 31 December 2024 | 229,565 | 116 | 15,079 | 225 | 954 | 24 | 245,598 | 365 | Note 1 Loan commitments reported also include financial assets classified as held for sale. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 170 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Loans and advances at amortised cost (audited) | Stage 1 | | Stage 2 | | Stage 3 | | Total | | | Barclays Bank PLC1 | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL | | | £m | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | | | | | | | | | | As at 1 January 2024 | 4,150 | 5 | 52 | — | 572 | 294 | 4,774 | 299 | | Transfers from Stage 1 to Stage 2 | (137) | — | 137 | — | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 37 | — | (37) | — | — | — | — | — | | Transfers to Stage 3 | (68) | — | (11) | — | 79 | — | — | — | | Transfers from Stage 3 | 18 | 1 | 5 | — | (23) | (1) | — | — | | Business activity in the year | 580 | 1 | — | — | — | — | 580 | 1 | | Refinements to models used for calculation | — | — | — | — | — | — | — | — | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | (82) | 1 | 1 | — | 7 | 30 | (74) | 31 | | Final repayments | (369) | — | (11) | — | (41) | (3) | (421) | (3) | | Disposals2 | — | — | — | — | (334) | (284) | (334) | (284) | | Write-offs | — | — | — | — | (11) | (11) | (11) | (11) | | As at 31 December 2024 | 4,129 | 8 | 136 | — | 249 | 25 | 4,514 | 33 | | | | | | | | | | | | | | | | | | | | | | Retail other | | | | | | | | | | As at 1 January 2024 | 1,913 | 6 | 283 | 1 | 249 | 18 | 2,445 | 25 | | Transfers from Stage 1 to Stage 2 | (196) | — | 196 | — | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 63 | — | (63) | — | — | — | — | — | | Transfers to Stage 3 | (124) | — | (13) | — | 137 | — | — | — | | Transfers from Stage 3 | 58 | — | 46 | — | (104) | — | — | — | | Business activity in the year | 567 | 1 | — | — | — | — | 567 | 1 | | Refinements to models used for calculation | — | — | — | — | — | — | — | — | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 927 | (2) | (12) | — | (34) | 7 | 881 | 5 | | Final repayments | (821) | (2) | (83) | (1) | (67) | (6) | (971) | (9) | | Disposals | — | — | — | — | — | — | — | — | | Write-offs | — | — | — | — | (6) | (6) | (6) | (6) | | As at 31 December 2024 | 2,387 | 3 | 354 | — | 175 | 13 | 2,916 | 16 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Corporate loans | | | | | | | | | | As at 1 January 2024 | 227,177 | 167 | 8,095 | 264 | 1,001 | 298 | 236,273 | 729 | | Transfers from Stage 1 to Stage 2 | (2,475) | (12) | 2,475 | 12 | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 1,913 | 35 | (1,913) | (35) | — | — | — | — | | Transfers to Stage 3 | (400) | (1) | (262) | (20) | 662 | 21 | — | — | | Transfers from Stage 3 | 143 | 1 | 23 | 5 | (166) | (6) | — | — | | Business activity in the year | 73,933 | 32 | 763 | 28 | 183 | 19 | 74,879 | 79 | | Refinements to models used for calculation3 | — | 16 | — | 45 | — | — | — | 61 | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | (35,837) | (73) | 225 | 9 | 1 | 254 | (35,611) | 190 | | Final repayments | (55,090) | (35) | (1,766) | (87) | (79) | (3) | (56,935) | (125) | | Disposals2 | (2) | (1) | (2) | (2) | (2) | (2) | (6) | (5) | | Write-offs | — | — | — | — | (229) | (229) | (229) | (229) | | As at 31 December 2024 | 209,362 | 129 | 7,638 | 219 | 1,371 | 352 | 218,371 | 700 | Notes 1 Barclays Bank PLC does not have retail credit card lending. 2 The £334m of gross disposals reported within Retail mortgages relate to sale of the Italian mortgage portfolio. The £6m of gross disposals reported within Corporate loans relate to debt sales undertaken during the year. 3 Refinements to models used for calculation reported within Corporate loans include a £61m movement in the calculated ECL for the IB portfolio. These reflect model enhancements made during the period. Barclays Bank PLC continually reviews the output of models to determine accuracy of the ECL calculation including review of model monitoring,external benchmarking and experience of model operation over an extended period of time. This helps to ensure that the models used continue to reflect the risks inherent across the businesses. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 171 | ## Risk review ## Risk performance #### Credit risk | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Reconciliation of ECL movement to credit impairment charge/(release) for the period | Stage 1 | Stage 2 | Stage 3 | Total | | | £m | £m | £m | £m | | Retail mortgages | 3 | — | 26 | 29 | | Retail other | (3) | (1) | 1 | (3) | | Corporate loans | (37) | (43) | 285 | 205 | | ECL movement excluding disposals and write-offs1 | (37) | (44) | 312 | 231 | | ECL movement on loan commitments and financial guarantees | (2) | 2 | (21) | (21) | | ECL movement on other financial assets | 3 | 6 | (3) | 6 | | ECL movement on debt securities at amortised cost | 1 | (8) | — | (7) | | Recoveries and reimbursements2 | (24) | 28 | (22) | (18) | | Total exchange and other adjustments | | | | 27 | | Total credit impairment charge for the year | | | | 218 | Notes 1In 2024, gross write-offs amounted to £246m and post write-off recoveries amounted to £9m. Net write-offs represent gross write-offs less post write-off recoveries and amounted to £237m. 2Recoveries and reimbursements include £9m of reimbursements expected to be received under the arrangement where Barclays Bank PLC has entered into financial guarantee contracts which provide credit protection over certain assets with third parties and cash recoveries of previously written off amounts of £9m. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Loan commitments and financial guarantees (audited) | Stage 1 | | Stage 2 | | Stage 3 | | Total | | | Barclays Bank PLC | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL | | | £m | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | | | | | | | | | | As at 1 January 2024 | 32 | — | — | — | — | — | 32 | — | | Net transfers between stages | — | — | — | — | — | — | — | — | | Business activity in the year | — | — | — | — | — | — | — | — | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | (15) | — | — | — | — | — | (15) | — | | Limit management and final repayments | (4) | — | — | — | — | — | (4) | — | | As at 31 December 2024 | 13 | — | — | — | — | — | 13 | — | | | | | | | | | | | | Retail other | | | | | | | | | | As at 1 January 2024 | 1,720 | 4 | 66 | 4 | 11 | — | 1,797 | 8 | | Net transfers between stages | (34) | — | 34 | — | — | — | — | — | | Business activity in the year | 533 | 2 | — | — | — | — | 533 | 2 | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 239 | (2) | (20) | (2) | 7 | — | 226 | (4) | | Limit management and final repayments | (309) | — | (9) | — | (10) | — | (328) | — | | As at 31 December 2024 | 2,149 | 4 | 71 | 2 | 8 | — | 2,228 | 6 | | | | | | | | | | | | Corporate loans | | | | | | | | | | As at 1 January 2024 | 240,749 | 103 | 17,865 | 197 | 748 | 44 | 259,362 | 344 | | Net transfers between stages | 1,468 | 27 | (1,742) | (29) | 274 | 2 | — | — | | Business activity in the year | 44,113 | 29 | 1,442 | 26 | 192 | — | 45,747 | 55 | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 12,697 | (36) | (1,658) | 62 | (85) | (15) | 10,954 | 11 | | Limit management and final repayments | (60,265) | (22) | (3,002) | (55) | (266) | (8) | (63,533) | (85) | | As at 31 December 2024 | 238,762 | 101 | 12,905 | 201 | 863 | 23 | 252,530 | 325 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 172 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Loans and advances at amortised cost (audited) | Stage 1 | | Stage 2 | | Stage 3 | | Total | | | Barclays Bank Group | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL | | | £m | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | | | | | | | | | | As at 1 January 2023 | 10,458 | 12 | 362 | 25 | 978 | 356 | 11,798 | 393 | | Transfers from Stage 1 to Stage 2 | (274) | — | 274 | — | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 93 | 6 | (93) | (6) | — | — | — | — | | Transfers to Stage 3 | (84) | — | (57) | (5) | 141 | 5 | — | — | | Transfers from Stage 3 | 9 | — | 28 | 1 | (37) | (1) | — | — | | Business activity in the year | 339 | 1 | — | — | — | — | 339 | 1 | | Refinements to models used for calculation | — | — | — | — | — | — | — | — | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | (2,518) | (8) | (101) | 14 | (262) | (21) | (2,881) | (15) | | Final repayments | (766) | — | (24) | (1) | (88) | (2) | (878) | (3) | | Disposals | — | — | — | — | — | — | — | — | | Write-offs | — | — | — | — | (16) | (16) | (16) | (16) | | As at 31 December 2023 | 7,257 | 11 | 389 | 28 | 716 | 321 | 8,362 | 360 | | | | | | | | | | | | Retail credit cards | | | | | | | | | | As at 1 January 2023 | 22,669 | 331 | 3,880 | 1,127 | 1,129 | 818 | 27,678 | 2,276 | | Transfers from Stage 1 to Stage 2 | (1,515) | (42) | 1,515 | 42 | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 1,556 | 374 | (1,556) | (374) | — | — | — | — | | Transfers to Stage 3 | (557) | (23) | (630) | (292) | 1,187 | 315 | — | — | | Transfers from Stage 3 | 9 | 5 | 6 | 4 | (15) | (9) | — | — | | Business activity in the year | 1,928 | 45 | 231 | 80 | 24 | 20 | 2,183 | 145 | | Refinements to models used for calculation1 | — | (27) | — | (15) | — | (26) | — | (68) | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | (38) | (228) | 479 | 620 | (24) | 850 | 417 | 1,242 | | Final repayments | (116) | (8) | (30) | (13) | (2) | (1) | (148) | (22) | | Transfers to assets held for Sale2 | (1,621) | (15) | (445) | (41) | (92) | (68) | (2,158) | (124) | | Disposals3 | — | — | — | — | (27) | (15) | (27) | (15) | | Write-offs | — | — | — | — | (658) | (658) | (658) | (658) | | As at 31 December 2023 | 22,315 | 412 | 3,450 | 1,138 | 1,522 | 1,226 | 27,287 | 2,776 | | | | | | | | | | | | Retail other | | | | | | | | | | As at 1 January 2023 | 6,915 | 38 | 524 | 29 | 523 | 171 | 7,962 | 238 | | Transfers from Stage 1 to Stage 2 | (693) | (3) | 693 | 3 | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 165 | 5 | (165) | (5) | — | — | — | — | | Transfers to Stage 3 | (467) | (1) | (53) | (8) | 520 | 9 | — | — | | Transfers from Stage 3 | 22 | 1 | 4 | — | (26) | (1) | — | — | | Business activity in the year | 4,914 | 7 | 24 | 3 | 6 | 4 | 4,944 | 14 | | Refinements to models used for calculation | — | — | — | — | — | — | — | — | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | (2,046) | (11) | (70) | 13 | (136) | 1 | (2,252) | 3 | | Final repayments | (4,515) | (8) | (300) | (1) | (372) | (11) | (5,187) | (20) | | Transfers to assets held for Sale2 | (1,561) | (20) | (288) | (32) | (84) | (60) | (1,933) | (112) | | Disposals3 | — | — | — | — | (85) | (40) | (85) | (40) | | Write-offs | — | — | — | — | (38) | (38) | (38) | (38) | | As at 31 December 2023 | 2,734 | 8 | 369 | 2 | 308 | 35 | 3,411 | 45 | Notes 1Refinements to models used for calculation reported within Retail credit cards include a £43m movement in the calculated ECL for the US Cards portfolio and £(111)m movement in the German consumer finance business. These reflect model enhancements made during the year. Barclays Bank Group continually reviews the output of models to determine accuracy of the ECL calculation including review of model monitoring, external benchmarking and experience of model operation over an extended period of time. This ensures that the models used continue to reflect the risks inherent across the businesses. 2Transfers to assets held for sale reported within Retail credit cards and Retail other relate to the German Consumer Finance business. 3The £27m of gross disposals reported within Retail credit cards relate to debt sales undertaken during the year. The £85m of gross disposals reported within Retail other include £64m part sale of Wealth portfolio in Italy and £21m relate to debt sales undertaken during the year. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 173 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Loans and advances at amortised cost (audited) | Stage 1 | | Stage 2 | | Stage 3 | | Total | | | Barclays Bank Group | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL | | | £m | £m | £m | £m | £m | £m | £m | £m | | Corporate loans | | | | | | | | | | As at 1 January 2023 | 100,121 | 304 | 10,484 | 275 | 940 | 293 | 111,545 | 872 | | Transfers from Stage 1 to Stage 2 | (4,546) | (29) | 4,546 | 29 | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 3,488 | 53 | (3,488) | (53) | — | — | — | — | | Transfers to Stage 3 | (329) | (7) | (374) | (16) | 703 | 23 | — | — | | Transfers from Stage 3 | 69 | 1 | 196 | 3 | (265) | (4) | — | — | | Business activity in the year | 23,136 | 36 | 846 | 27 | 39 | 14 | 24,021 | 77 | | Refinements to models used for calculation1 | — | (61) | — | 174 | — | — | — | 113 | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 2,704 | (79) | (753) | (65) | 351 | 316 | 2,302 | 172 | | Final repayments | (23,301) | (36) | (2,376) | (39) | (282) | (52) | (25,959) | (127) | | Disposals2 | (386) | (3) | (114) | (26) | (108) | (99) | (608) | (128) | | Write-offs | — | — | — | — | (143) | (143) | (143) | (143) | | As at 31 December 2023 | 100,956 | 179 | 8,967 | 309 | 1,235 | 348 | 111,158 | 836 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Reconciliation of ECL movement to credit impairment (release)/charge for the period | Stage 1 | Stage 2 | Stage 3 | Total | | | £m | £m | £m | £m | | Retail mortgages | (1) | 3 | (19) | (17) | | Retail credit cards | 96 | 52 | 1,149 | 1,297 | | Retail other | (10) | 5 | 2 | (3) | | Corporate loans | (122) | 60 | 297 | 235 | | ECL movement excluding assets held for sale, disposals and write-offs3 | (37) | 120 | 1,429 | 1,512 | | ECL movement on loan commitments and financial guarantees | (67) | (12) | 20 | (59) | | ECL movement on other financial assets | 7 | (7) | (7) | (7) | | ECL movement on debt securities at amortised cost | (1) | (16) | — | (17) | | Recoveries and reimbursements4 | 6 | (1) | (46) | (41) | | Total exchange and other adjustments | | | | 190 | | Total credit impairment charge for the year | | | | 1,578 | Notes 1Refinements to models used for calculation reported within Corporate loans include a £93m movement in the calculated ECL for the UKCB and IB portfolios and £20m movement in Barclaycard Payments portfolio. These reflect model enhancements made during the period. Barclays Bank Group continually reviews the output of models to determine accuracy of the ECL calculation including review of model monitoring,external benchmarking and experience of model operation over an extended period of time. This helps to ensure that the models used continue to reflect the risks inherent across the businesses. 2The £608m of gross disposals reported within Corporate loans relate to debt sales undertaken during the year. 3In 2023, gross write-offs amounted to £855m and post write-off recoveries amounted to £17m. Net write-offs represent gross write-offs less post write-off recoveries and amounted to £838m. 4Recoveries and reimbursements include £24m of reimbursements expected to be received under the arrangement where Barclays Bank Group has entered into financial guarantee contracts which provide credit protection over certain assets with third parties and cash recoveries of previously written off amounts of £17m. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 174 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Loan commitments and financial guarantees (audited)1 | Stage 1 | | Stage 2 | | Stage 3 | | Total | | | Barclays Bank Group | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL | | | £m | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | | | | | | | | | | As at 1 January 2023 | 61 | — | 1 | — | 5 | — | 67 | — | | Net transfers between stages | — | — | — | — | — | — | — | — | | Business activity in the year | 24 | — | — | — | — | — | 24 | — | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 3 | — | — | — | (4) | — | (1) | — | | Limit management and final repayments | (47) | — | (1) | — | — | — | (48) | — | | As at 31 December 2023 | 41 | — | — | — | 1 | — | 42 | — | | | | | | | | | | | | Retail credit cards | | | | | | | | | | As at 1 January 2023 | 109,291 | 41 | 1,973 | 45 | 7 | 1 | 111,271 | 87 | | Net transfers between stages | (1,432) | 31 | 1,423 | (31) | 9 | — | — | — | | Business activity in the year | 17,403 | 12 | 183 | 10 | 1 | — | 17,587 | 22 | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | (4,260) | (29) | (1,365) | 37 | (7) | — | (5,632) | 8 | | Limit management and final repayments | (11,368) | (7) | (447) | (25) | — | — | (11,815) | (32) | | As at 31 December 2023 | 109,634 | 48 | 1,767 | 36 | 10 | 1 | 111,411 | 85 | | | | | | | | | | | | Retail other | | | | | | | | | | As at 1 January 2023 | 4,497 | — | 79 | — | 64 | — | 4,640 | — | | Net transfers between stages | (125) | — | 98 | — | 27 | — | — | — | | Business activity in the year | 1,260 | — | 1 | — | — | — | 1,261 | — | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | (828) | 5 | (29) | 2 | (50) | — | (907) | 7 | | Limit management and final repayments | (1,358) | — | (33) | — | (12) | — | (1,403) | — | | As at 31 December 2023 | 3,446 | 5 | 116 | 2 | 29 | — | 3,591 | 7 | | | | | | | | | | | | Corporate loans | | | | | | | | | | As at 1 January 2023 | 205,220 | 193 | 23,873 | 230 | 812 | 22 | 229,905 | 445 | | Net transfers between stages | 2,371 | 22 | (2,366) | (22) | (5) | — | — | — | | Business activity in the year | 54,918 | 27 | 2,270 | 43 | 39 | 2 | 57,227 | 72 | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 3,567 | (102) | 67 | 20 | 227 | 23 | 3,861 | (59) | | Limit management and final repayments | (53,662) | (26) | (3,809) | (46) | (271) | (5) | (57,742) | (77) | | As at 31 December 2023 | 212,414 | 114 | 20,035 | 225 | 802 | 42 | 233,251 | 381 | Note 1Loan commitments reported also include financial assets classified as held for sale. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 175 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Loans and advances at amortised cost (audited) | Stage 1 | | Stage 2 | | Stage 3 | | Total | | | Barclays Bank PLC1 | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL | | | £m | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | | | | | | | | | | As at 1 January 2023 | 6,014 | 8 | 93 | 2 | 757 | 312 | 6,864 | 322 | | Transfers from Stage 1 to Stage 2 | (40) | — | 40 | — | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 11 | — | (11) | — | — | — | — | — | | Transfers to Stage 3 | (51) | — | (22) | — | 73 | — | — | — | | Transfers from Stage 3 | 10 | — | 7 | — | (17) | — | — | — | | Business activity in the year | 338 | 1 | — | — | — | — | 338 | 1 | | Refinements to models used for calculation | — | — | — | — | — | — | — | — | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | (1,865) | (4) | (50) | (2) | (151) | (2) | (2,066) | (8) | | Final repayments | (267) | — | (5) | — | (76) | (2) | (348) | (2) | | Disposals | — | — | — | — | — | — | — | — | | Write-offs | — | — | — | — | (14) | (14) | (14) | (14) | | As at 31 December 2023 | 4,150 | 5 | 52 | — | 572 | 294 | 4,774 | 299 | | | | | | | | | | | | Retail other | | | | | | | | | | As at 1 January 2023 | 3,172 | 13 | 321 | 2 | 254 | 53 | 3,747 | 68 | | Transfers from Stage 1 to Stage 2 | (274) | (1) | 274 | 1 | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 112 | 1 | (112) | (1) | — | — | — | — | | Transfers to Stage 3 | (251) | — | (20) | — | 271 | — | — | — | | Transfers from Stage 3 | 15 | — | 1 | — | (16) | — | — | — | | Business activity in the year | 1,755 | 2 | — | — | — | — | 1,755 | 2 | | Refinements to models used for calculation | — | — | — | — | — | — | — | — | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | (849) | (4) | (17) | (1) | (29) | (18) | (895) | (23) | | Final repayments | (1,767) | (5) | (164) | — | (221) | (7) | (2,152) | (12) | | Disposals | — | — | — | — | — | — | — | — | | Write-offs | — | — | — | — | (10) | (10) | (10) | (10) | | As at 31 December 2023 | 1,913 | 6 | 283 | 1 | 249 | 18 | 2,445 | 25 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Corporate loans | | | | | | | | | | As at 1 January 2023 | 181,440 | 297 | 10,255 | 252 | 791 | 252 | 192,486 | 801 | | Transfers from Stage 1 to Stage 2 | (3,601) | (22) | 3,601 | 22 | — | — | — | — | | Transfers from Stage 2 to Stage 1 | 3,131 | 49 | (3,131) | (49) | — | — | — | — | | Transfers to Stage 3 | (289) | (7) | (301) | (15) | 590 | 22 | — | — | | Transfers from Stage 3 | 66 | 1 | 128 | 3 | (194) | (4) | — | — | | Business activity in the year | 68,919 | 30 | 750 | 21 | 39 | 14 | 69,708 | 65 | | Refinements to models used for calculation2 | — | (56) | — | 169 | — | — | — | 113 | | Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 34,023 | (88) | (888) | (75) | 211 | 294 | 33,346 | 131 | | Final repayments | (56,126) | (34) | (2,205) | (38) | (198) | (52) | (58,529) | (124) | | Disposals3 | (386) | (3) | (114) | (26) | (108) | (98) | (608) | (127) | | Write-offs | — | — | — | — | (130) | (130) | (130) | (130) | | As at 31 December 2023 | 227,177 | 167 | 8,095 | 264 | 1,001 | 298 | 236,273 | 729 | Notes 1Barclays Bank PLC does not have retail credit card lending. 2Refinements to models used for calculation reported within Corporate loans include a £93m movement in the calculated ECL for the UKCB and IB portfolios and £20m movement in Barclaycard Payments portfolio. These reflect model changes made during the year. Barclays Bank PLC continually reviews the output of models to determine accuracy of the ECL calculation including review of model monitoring, external benchmarking and experience of model operation over an extended period of time. This ensures that the models used continue to reflect the risks inherent across the businesses. 3The £608m of gross disposals reported within Corporate loans relate to debt sales undertaken during the year. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 176 | ## Risk review ## Risk performance #### Credit risk | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Reconciliation of ECL movement to credit impairment (release)/charge for the period | Stage 1 | Stage 2 | Stage 3 | Total | | | £m | £m | £m | £m | | Retail mortgages | (3) | (2) | (4) | (9) | | Retail other | (7) | (1) | (25) | (33) | | Corporate loans | (127) | 38 | 274 | 185 | | ECL movement excluding disposals and write-offs1 | (137) | 35 | 245 | 143 | | Credit impairment release on loan commitments and financial guarantees | (66) | (5) | 20 | (51) | | Credit impairment release on other financial assets | 6 | (8) | (7) | (9) | | ECL movement on debt securities at amortised cost | 1 | (9) | — | (8) | | Recoveries and reimbursements2 | 14 | — | (34) | (20) | | Total exchange and other adjustments | | | | 43 | | Total credit impairment release for the year | | | | 98 | Notes 1In 2023, gross write-offs amounted to £154m and post write-off recoveries amounted to £4m. Net write-offs represent gross write-offs less post write-off recoveries and amounted to £150m. 2Recoveries and reimbursements include £16m of reimbursements expected to be received under the arrangement where Barclays Bank PLC has entered into financial guarantee contracts which provide credit protection over certain assets with third parties and cash recoveries of previously written off amounts of £4m. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Loan commitments and financial guarantees (audited) | Stage 1 | | Stage 2 | | Stage 3 | | Total | | | Barclays Bank PLC | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL | | | £m | £m | £m | £m | £m | £m | £m | £m | | Retail mortgages | | | | | | | | | | As at 1 January 2023 | 27 | — | 1 | — | 4 | — | 32 | — | | Net transfers between stages | — | — | — | — | — | — | — | — | | Business activity in the year | 21 | — | — | — | — | — | 21 | — | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | (7) | — | — | — | (4) | — | (11) | — | | Limit management and final repayments | (9) | — | (1) | — | — | — | (10) | — | | As at 31 December 2023 | 32 | — | — | — | — | — | 32 | — | | | | | | | | | | | | Retail other | | | | | | | | | | As at 1 January 2023 | 1,780 | — | 33 | 2 | 34 | — | 1,847 | 2 | | Net transfers between stages | (70) | — | 60 | — | 10 | — | — | — | | Business activity in the year | 410 | — | — | — | — | — | 410 | — | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 119 | 4 | (4) | 2 | (28) | — | 87 | 6 | | Limit management and final repayments | (519) | — | (23) | — | (5) | — | (547) | — | | As at 31 December 2023 | 1,720 | 4 | 66 | 4 | 11 | — | 1,797 | 8 | | | | | | | | | | | | Corporate loans | | | | | | | | | | As at 1 January 2023 | 234,658 | 173 | 18,869 | 204 | 770 | 24 | 254,297 | 401 | | Net transfers between stages | 490 | 23 | (488) | (23) | (2) | — | — | — | | Business activity in the year | 67,319 | 23 | 2,125 | 38 | 39 | 2 | 69,483 | 63 | | Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 790 | (94) | 721 | 19 | 199 | 23 | 1,710 | (52) | | Limit management and final repayments | (62,508) | (22) | (3,362) | (41) | (258) | (5) | (66,128) | (68) | | As at 31 December 2023 | 240,749 | 103 | 17,865 | 197 | 748 | 44 | 259,362 | 344 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 177 | ## Risk review ## Risk performance #### Credit risk #### Stage 2 decomposition Stage 2 exposures are predominantly identified using quantitative tests where the lifetime probability of default (PD) has deteriorated more than a pre-determined amount since origination during the year. This is augmented by inclusion of accounts meeting the designated high risk criteria (including watchlist) for the portfolio under the qualitative test. A small number of other accounts (0.5% of impairment allowance and 1.9% of gross exposure) are included in Stage 2. These accounts are not otherwise identified by the quantitative or qualitative tests but are more than 30 days past due. The percentage triggered by these backstop criteria is a measure of the effectiveness of the Stage 2 criteria in identifying deterioration prior to delinquency. These balances include items in the UK Corporate Bank and Investment Bank for reasons such as outstanding interest and fees rather than principal balances. | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Loans and advances at amortised cost1 | | | | | | | | | | | | Gross Exposure | | | | | Impairment Allowance | | | | | Barclays Bank Group | Quantitative test | Qualitative test | 30 days past due backstop | Total Stage 2 | | Quantitative test | Qualitative test | 30 days past due backstop | Total Stage 2 | | As at 31 December 20242 | £m | £m | £m | £m | | £m | £m | £m | £m | | Retail mortgages | 3 | 22 | 125 | 150 | | 1 | — | — | 1 | | Retail credit cards | 2,200 | 744 | 9 | 2,953 | | 620 | 183 | 4 | 807 | | Retail other | 14 | 321 | 69 | 404 | | — | 1 | — | 1 | | Corporate loans | 6,194 | 1,931 | 22 | 8,147 | | 185 | 68 | 1 | 254 | | Total Stage 2 | 8,411 | 3,018 | 225 | 11,654 | | 806 | 252 | 5 | 1,063 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Loans and advances at amortised cost1 | | | | | | | | | | | | Gross Exposure | | | | | Impairment Allowance | | | | | Barclays Bank Group | Quantitative test | Qualitative test | 30 days past due backstop | Total Stage 2 | | Quantitative test | Qualitative test | 30 days past due backstop | Total Stage 2 | | As at 31 December 2023 | £m | £m | £m | £m | | £m | £m | £m | £m | | Retail mortgages | 303 | 53 | 33 | 389 | | 24 | 2 | 2 | 28 | | Retail credit cards | 2,399 | 1,020 | 31 | 3,450 | | 750 | 367 | 21 | 1,138 | | Retail other | 8 | 308 | 53 | 369 | | 1 | 1 | — | 2 | | Corporate loans | 6,765 | 2,051 | 151 | 8,967 | | 240 | 65 | 4 | 309 | | Total Stage 2 | 9,475 | 3,432 | 268 | 13,175 | | 1,015 | 435 | 27 | 1,477 | Notes 1 Where balances satisfy more than one of the above three criteria for determining a significant increase in credit risk, the corresponding gross exposure and impairment allowance have been assigned in order of categories presented. 2 Exposures exclude the portfolios which have been classified as assets held for sale. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 178 | ## Risk review ## Risk performance #### Credit risk #### Stage 3 decomposition Stage 3 is comprised of exposures that are considered to be credit impaired. An asset is considered credit impaired when one or more events occur that have a detrimental impact on the estimated future cash flows of the financial asset. This comprises assets defined as defaulted and other individually assessed exposures where imminent default or actual loss is identified. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Loans and advances at amortised cost | | | | | | | | | | Gross Exposure | | | | Impairment Allowance | | | | Barclays Bank Group | Exposures not charged-off | Exposures individually assessed or in recovery book | Total Stage 3 | | Exposures not charged-off | Exposures individually assessed or in recovery book | Total Stage 3 | | As at 31 December 20241 | £m | £m | £m | | £m | £m | £m | | Retail mortgages | 118 | 192 | 310 | | 10 | 22 | 32 | | Retail credit cards | 707 | 1,017 | 1,724 | | 428 | 988 | 1,416 | | Retail other | 88 | 128 | 216 | | 4 | 21 | 25 | | Corporate loans | 119 | 1,535 | 1,654 | | 23 | 370 | 393 | | Total Stage 3 | 1,032 | 2,872 | 3,904 | | 465 | 1,401 | 1,866 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Loans and advances at amortised cost | | | | | | | | | | Gross Exposure | | | | Impairment Allowance | | | | Barclays Bank Group | Exposures not charged-off | Exposures individually assessed or in recovery book | Total Stage 3 | | Exposures not charged-off | Exposures individually assessed or in recovery book | Total Stage 3 | | As at 31 December 2023 | £m | £m | £m | | £m | £m | £m | | Retail mortgages | 221 | 495 | 716 | | 28 | 293 | 321 | | Retail credit cards | 617 | 905 | 1,522 | | 413 | 813 | 1,226 | | Retail other | 125 | 183 | 308 | | 2 | 33 | 35 | | Corporate loans | 150 | 1,085 | 1,235 | | 25 | 323 | 348 | | Total Stage 3 | 1,113 | 2,668 | 3,781 | | 468 | 1,462 | 1,930 | Note 1 Exposures exclude the portfolios which have been classified as assets held for sale. #### Management #### adjustments to models for impairment (audited) Management adjustments to impairment models are applied in order to factor in certain conditions or changes in policy that are not fully incorporated into the impairment models, or to reflect additional facts and circumstances at the period end. Management adjustments are reviewed and incorporated into future model development where applicable. Management adjustments are captured through “Economic uncertainty” and “Other” adjustments, and are presented by product below: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Management adjustments to models for impairment allowance presented by product (audited)1 | | | | | | | | Barclays Bank Group | Impairment allowance pre management adjustments2 | Economic uncertainty adjustments (a) | Other adjustments3 (b) | Management adjustments (a+b) | Total impairment allowance4 | Proportion of management adjustments to total impairment allowance | | | | | | | | | | As at 31 December 2024 | £m | £m | £m | £m | £m | % | | Retail mortgages | 38 | — | 3 | 3 | 41 | 7.3 | | Retail credit cards | 2,630 | — | (23) | (23) | 2,607 | (0.9) | | Retail other | 32 | — | 4 | 4 | 36 | 11.1 | | Corporate loans | 1,162 | — | (6) | (6) | 1,156 | (0.5) | | Total | 3,862 | — | (22) | (22) | 3,840 | (0.6) | | Debt securities at amortised cost | 27 | — | (7) | (7) | 20 | (35.0) | | Total including debt securities at amortised cost | 3,889 | — | (29) | (29) | 3,860 | (0.8) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 179 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | As at 31 December 2023 | £m | £m | £m | £m | £m | % | | Retail mortgages | 363 | — | (3) | (3) | 360 | (0.8) | | Retail credit cards | 2,852 | — | 9 | 9 | 2,861 | 0.3 | | Retail other | 62 | — | (10) | (10) | 52 | (19.2) | | Corporate loans | 1,231 | 16 | (30) | (14) | 1,217 | (1.2) | | Total | 4,508 | 16 | (34) | (18) | 4,490 | (0.4) | | Debt securities at amortised cost | 24 | — | — | — | 24 | — | | Total including debt securities at amortised cost | 4,532 | 16 | (34) | (18) | 4,514 | (0.4) | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Economic uncertainty adjustments presented by stage (audited) | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | As at 31 December 2023 | £m | £m | £m | £m | | Retail mortgages | — | — | — | — | | Retail credit cards | — | — | — | — | | Retail other | — | — | — | — | | Corporate loans | 4 | 12 | — | 16 | | Total | 4 | 12 | — | 16 | Notes 1Positive values reflect an increase in impairment allowance and negative values reflect a reduction in the impairment allowance. 2Includes £3.7bn (2023 : £4.0bn) of modelled ECL, £0.3bn (2023: £0.3bn) of individually assessed impairments, £0.1bn (2023: £0.2bn) of ECL from non- modelled exposures and debt securities and excludes £(0.3)bn (2023: £nil) of ECL from assets held for sale (co-branded card portfolio). 3 Management adjustments related to other financial assets subject to impairment not included in the table above include financial assets at fair value through other comprehensive income £(2)m, reverse repurchase agreements £(2)m and cash collateral and settlement balances £(1)m within the IB portfolio. 4Total impairment allowance consists of ECL stock on drawn and undrawn exposures. Economic uncertainty adjustments Economic uncertainty adjustments continue to be captured in two ways. Firstly, customer uncertainty: the identification of customers and clients who may be more vulnerable to 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 previously held customer and client uncertainty provision to provide for expected downside uncertainties on European Corporates has been retired following a resilient credit performance and updated macroeconomic outlook. 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. Other adjustments of £(29)m (2023: £(34)m includes: • Retail credit cards, £(23)m (2023: £9m):The movement is driven by an adjustment introduced in the US to enhance the qualitative measures used to identify high-risk account management (HRAM) accounts. • Corporate loans, £(6)m (2023: £(30)m): The partial reduction reflects a release of underlying adjustments in the IB and PBWM portfolio following model remediation. • Debt securities, £(7)m: This reflects an adjustment applied to Exposure at Default (EAD) within the IB portfolio to remediate an overly conservative modelled amortisation expectation. #### Climate Risk ECL assessment Barclays Bank Group performed a credit risk assessment of physical and transition risk due to climate change. This was delivered through a combination of a scenario approach and targeted reviews on specific portfolios identified as more susceptible to climate risk. Scenario Approach: The IFRS 9 Downside 2 scenario has been updated and aligned to the 2024 Internal Stress Test scenario which is climate aware, ensuring that climate is being considered within the modelled ECL output via existing macroeconomic variables. Specific Approach: The approach reviewed portfolios previously identified from both internal and external stress tests as more susceptible to climate risks. In particular, new climate modelling techniques were utilised to inform customer level PD spreads of physical and transition risk due to climate change for certain elevated risk sectors (predominantly Oil & Gas, Aviation, Automotive and Power sectors) within the Wholesale portfolio. The output of this review did not provide variances in ECL deemed sufficiently certain to warrant raising an additional climate-related charge in 2024. Barclays acknowledges that impairment could increase over time as risks become more tangible and impact consumers and clients through physical risks or via impacts from the transition to a low carbon economy. Therefore, Barclays continues to review credit risk outputs to determine if any additional physical or transition climate risks are identified that are not sufficiently captured via model output. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 180 | ## Risk review ## Risk performance #### Credit risk #### Measurement uncertainty and sensitivity analysis The measurement of modelled ECL involves complexity and judgement, including estimation of probabilities of default (PD), loss given default (LGD), a range of unbiased future economic scenarios, estimation of expected lives, estimation of exposures at default (EAD) and assessing significant increases in credit risk. The Barclays Bank Group uses a five-scenario model to calculate ECL. An external consensus forecast is assembled from key sources, including HM Treasury (short and medium term forecasts), and Bloomberg (based on median of economic forecasts) which forms the Baseline scenario. In addition, two adverse scenarios (Downside 1 and Downside 2) and two favourable scenarios (Upside 1 and Upside 2) are derived, with associated probability weightings. The adverse scenarios are calibrated to a broadly similar severity to the Barclays Bank Group's internal stress tests and stress scenarios provided by regulators whilst also considering IFRS 9 specific sensitivities and non-linearity. The favourable scenarios are designed to reflect plausible upside risks to the Baseline scenario which are broadly consistent with the economic narrative approved by the Senior Scenario Review Committee. All scenarios are regenerated at a minimum semi-annually. The scenarios include key economic variables (including GDP, unemployment, House Price Index (HPI) and base rates in both the UK and US markets), and expanded variables using statistical models based on historical correlations. The upside and downside shocks are designed to evolve over a five-year stress horizon, with all five scenarios converging to a steady state after approximately seven years. The same scenarios used in the estimation of expected credit losses are also used to inform the Barclays Bank Group's internal planning. Scenarios used to calculate the Barclays Bank Group’s ECL charge were refreshed in Q424 with the Baseline scenario reflecting the latest consensus macroeconomic forecasts available at the time of the scenario refresh. In the Baseline scenario, following an encouraging first half of 2024, UK economic growth slowed in H224. However, it is further stimulated as restrictive monetary policy continues to loosen. UK and US GDP growth in 2025 is expected to be 1.4% and 2.0% respectively. Labour markets in major economies remain broadly resilient with unemployment rates relatively close to historic lows and are only expected to increase moderately.The UK unemployment rate peaks at 4.5% in 2026 before returning to 4.4% for the reminder of the 5-year projection period. US unemployment peaks at 4.3%, falling to 4.2% from 2026. The Bank of England cuts rates three times by 25bp in 2025. Similarly, the Fed finishes 2025 with rates at 4.0%. As lower rates feed into new mortgages, UK house prices stabilise and resume the upward trend from 2025. US house prices continue to grow at a decent pace. The Downside 2 scenario has been broadly aligned to the Barclays Bank Group’s 2024 internal stress test which includes climate drivers. Under this scenario, long-standing structural issues, restrictive monetary policy and persistent household affordability loss leads to a sharp demand-driven economic contraction that precipitates into a severe global recession and disinflation process. The economic slowdown leads to rising unemployment rates as lay-offs intensify. UK and US unemployment peak at 8.4% and 7.5% respectively, during 2026. The combination of high interest rates and subdued growth leads to inflation declines which in turn causes central banks to reduce rates. In the Upside 2 scenario, a rise in labour force participation and higher productivity contribute to accelerated economic growth, without creating new inflationary pressures. Central banks lower interest rates stimulating private consumption and investment growth. Demand for labour increases. and unemployment rates stabilise and start falling again. As geopolitical tensions ease, low inflation supports consumer purchasing power and contributes further to a healthy GDP growth. The strong economic outlook and lower interest rates provide a boost to house prices growth and support bullish financial markets. The methodology for estimating scenario probability weights involves simulating a range of future paths for UK and US GDP using historical data with the five scenarios mapped against the distribution of these future paths. The median is centred around the Baseline with scenarios further from the Baseline attracting a lower weighting before the five weights are normalised to total 100%. The increases in the Upside scenario weightings were driven by the improvement in GDP in the Baseline scenario, bringing the Baseline scenario closer to the Upside scenarios. For further details see page [182](#i107f3c296ccb4656b3f7afcf50aaf4d0_7806). The tables below show the key macroeconomic variables used in the five scenarios (five year annual paths), the probability weights applied to each scenario and the macroeconomic variables by scenario using ‘specific bases’ i.e. the most extreme position of each variable in the context of the scenario, for example, the highest unemployment for downside scenarios and the lowest unemployment for upside scenarios. Five year average tables and movement over time graphs provide additional transparency. Annual paths show quarterly averages for the year (unemployment and base rate) or change in the year (GDP and HPI). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 181 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Baseline | 2024 | 2025 | 2026 | 2027 | 2028 | | As at 31 December 2024 | % | % | % | % | % | | UK GDP1 | 1.0 | 1.4 | 1.5 | 1.6 | 1.5 | | UK unemployment2 | 4.3 | 4.4 | 4.5 | 4.4 | 4.4 | | UK HPI3 | 2.8 | 3.3 | 1.6 | 4.5 | 3.0 | | UK bank rate | 5.1 | 4.3 | 4.0 | 4.0 | 3.8 | | US GDP1 | 2.7 | 2.0 | 2.0 | 2.0 | 2.0 | | US unemployment4 | 4.1 | 4.3 | 4.2 | 4.2 | 4.2 | | US HPI5 | 6.5 | 2.6 | 2.7 | 3.0 | 3.0 | | US federal funds rate | 5.1 | 4.1 | 4.0 | 3.8 | 3.8 | | | | | | | | | Downside 2 | | | | | | | UK GDP1 | 1.0 | (2.3) | (1.3) | 2.6 | 2.3 | | UK unemployment2 | 4.3 | 6.2 | 8.1 | 6.6 | 5.5 | | UK HPI3 | 2.8 | (24.8) | (5.2) | 10.0 | 14.6 | | UK bank rate | 5.1 | 3.5 | 1.7 | 0.6 | 1.1 | | US GDP1 | 2.7 | (1.3) | (1.3) | 3.3 | 2.9 | | US unemployment4 | 4.1 | 5.8 | 7.2 | 6.2 | 5.5 | | US HPI5 | 6.5 | (8.0) | (0.7) | 5.2 | 4.0 | | US federal funds rate | 5.1 | 2.5 | 0.6 | 0.8 | 1.5 | | | | | | | | | Downside 1 | | | | | | | UK GDP1 | 1.0 | (0.5) | 0.1 | 2.1 | 1.9 | | UK unemployment2 | 4.3 | 5.3 | 6.3 | 5.5 | 5.0 | | UK HPI3 | 2.8 | (11.6) | (1.8) | 7.2 | 8.7 | | UK bank rate | 5.1 | 3.9 | 2.9 | 2.3 | 2.4 | | US GDP1 | 2.7 | 0.3 | 0.4 | 2.7 | 2.4 | | US unemployment4 | 4.1 | 5.1 | 5.7 | 5.2 | 4.9 | | US HPI5 | 6.5 | (2.7) | 1.0 | 4.1 | 3.5 | | US federal funds rate | 5.1 | 3.4 | 2.3 | 2.3 | 2.7 | | | | | | | | | Upside 2 | | | | | | | UK GDP1 | 1.0 | 3.0 | 3.7 | 2.9 | 2.4 | | UK unemployment2 | 4.3 | 3.8 | 3.4 | 3.5 | 3.5 | | UK HPI3 | 2.8 | 11.9 | 8.4 | 5.1 | 4.1 | | UK bank rate | 5.1 | 3.9 | 2.9 | 2.8 | 2.8 | | US GDP1 | 2.7 | 2.8 | 3.1 | 2.8 | 2.8 | | US unemployment4 | 4.1 | 3.8 | 3.5 | 3.5 | 3.5 | | US HPI5 | 6.5 | 6.2 | 4.7 | 4.8 | 4.9 | | US federal funds rate | 5.1 | 3.7 | 3.3 | 3.1 | 2.8 | | | | | | | | | Upside 1 | | | | | | | UK GDP1 | 1.0 | 2.2 | 2.6 | 2.2 | 2.0 | | UK unemployment2 | 4.3 | 4.1 | 4.0 | 4.0 | 4.0 | | UK HPI3 | 2.8 | 7.6 | 4.9 | 4.8 | 3.5 | | UK bank rate | 5.1 | 4.1 | 3.5 | 3.4 | 3.3 | | US GDP1 | 2.7 | 2.4 | 2.6 | 2.4 | 2.4 | | US unemployment4 | 4.1 | 4.0 | 3.9 | 3.9 | 3.9 | | US HPI5 | 6.5 | 4.4 | 3.7 | 3.9 | 3.9 | | US federal funds rate | 5.1 | 4.0 | 3.8 | 3.6 | 3.3 | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 182 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Baseline | 2023 | 2024 | 2025 | 2026 | 2027 | | As at 31 December 2023 | % | % | % | % | % | | UK GDP1 | 0.5 | 0.3 | 1.2 | 1.6 | 1.6 | | UK unemployment2 | 4.2 | 4.7 | 4.7 | 4.8 | 5.0 | | UK HPI3 | (3.3) | (5.1) | 0.7 | 3.1 | 5.3 | | UK bank rate | 4.7 | 4.9 | 4.1 | 3.8 | 3.5 | | US GDP1 | 2.4 | 1.3 | 1.7 | 1.9 | 1.9 | | US unemployment4 | 3.7 | 4.3 | 4.3 | 4.3 | 4.3 | | US HPI5 | 5.4 | 3.4 | 3.0 | 3.3 | 3.3 | | US federal funds rate | 5.1 | 5.0 | 3.9 | 3.8 | 3.8 | | | | | | | | | | | | | | | | | 2023 | 2024 | 2025 | 2026 | 2027 | | Downside 2 | % | % | % | % | % | | UK GDP1 | 0.5 | (1.5) | (2.6) | 2.4 | 1.6 | | UK unemployment2 | 4.2 | 5.2 | 7.9 | 6.3 | 5.5 | | UK HPI3 | (3.3) | (19.3) | (16.8) | 14.5 | 12.4 | | UK bank rate | 4.7 | 6.6 | 1.3 | 1.0 | 1.0 | | US GDP1 | 2.4 | (0.6) | (2.0) | 3.1 | 2.0 | | US unemployment4 | 3.7 | 5.2 | 7.2 | 5.9 | 5.2 | | US HPI5 | 5.4 | (6.5) | (5.7) | 7.2 | 6.4 | | US federal funds rate | 5.1 | 6.3 | 1.8 | 1.5 | 1.5 | | | | | | | | | | 2023 | 2024 | 2025 | 2026 | 2027 | | Downside 1 | % | % | % | % | % | | UK GDP1 | 0.5 | (0.6) | (0.7) | 2.0 | 1.6 | | UK unemployment2 | 4.2 | 4.9 | 6.3 | 5.6 | 5.2 | | UK HPI3 | (3.3) | (12.4) | (8.3) | 8.7 | 8.8 | | UK bank rate | 4.7 | 5.8 | 2.7 | 2.5 | 2.3 | | US GDP1 | 2.4 | 0.3 | (0.2) | 2.5 | 1.9 | | US unemployment4 | 3.7 | 4.7 | 5.8 | 5.1 | 4.8 | | US HPI5 | 5.4 | (1.7) | (1.4) | 5.2 | 4.8 | | US federal funds rate | 5.1 | 5.7 | 2.9 | 2.8 | 2.8 | | | | | | | | | | 2023 | 2024 | 2025 | 2026 | 2027 | | Upside 2 | % | % | % | % | % | | UK GDP1 | 0.5 | 2.4 | 3.7 | 2.9 | 2.4 | | UK unemployment2 | 4.2 | 3.9 | 3.5 | 3.6 | 3.6 | | UK HPI3 | (3.3) | 7.8 | 7.6 | 4.5 | 5.6 | | UK bank rate | 4.7 | 4.3 | 2.7 | 2.5 | 2.5 | | US GDP1 | 2.4 | 2.8 | 3.1 | 2.8 | 2.8 | | US unemployment4 | 3.7 | 3.5 | 3.6 | 3.6 | 3.6 | | US HPI5 | 5.4 | 6.1 | 4.3 | 4.5 | 4.6 | | US federal funds rate | 5.1 | 4.3 | 2.9 | 2.8 | 2.8 | | | | | | | | | | 2023 | 2024 | 2025 | 2026 | 2027 | | Upside 1 | % | % | % | % | % | | UK GDP1 | 0.5 | 1.4 | 2.5 | 2.3 | 2.0 | | UK unemployment2 | 4.2 | 4.3 | 4.1 | 4.2 | 4.3 | | UK HPI3 | (3.3) | 1.2 | 4.1 | 3.8 | 5.4 | | UK bank rate | 4.7 | 4.6 | 3.4 | 3.3 | 3.0 | | US GDP1 | 2.4 | 2.0 | 2.4 | 2.4 | 2.4 | | US unemployment4 | 3.7 | 3.9 | 3.9 | 4.0 | 4.0 | | US HPI5 | 5.4 | 4.7 | 3.7 | 3.9 | 3.9 | | US federal funds rate | 5.1 | 4.7 | 3.5 | 3.3 | 3.3 | Notes 1Average Real GDP seasonally adjusted change in year. 2Average UK unemployment rate 16-year+. 3Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end. 4Average US civilian unemployment rate 16-year+. 5Change in year end US HPI = FHFA house price index, relative to prior year end. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 183 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Scenario probability weighting (audited)1 | | | | | | | | Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2 | | | % | % | % | % | % | | As at 31 December 2024 | | | | | | | Scenario probability weighting | 17.4 | 26.8 | 32.5 | 14.7 | 8.6 | | As at 31 December 2023 | | | | | | | Scenario probability weighting | 13.8 | 24.7 | 32.4 | 18.3 | 10.8 | Note 1For further details on changes to scenario weights see page [180](#ia16d0659cd524c01ae655d82fa382c3d_229) . Specific bases show the most extreme position of each variable in the context of the downside/upside scenarios, for example, the highest unemployment for downside scenarios, average unemployment for baseline scenarios and lowest unemployment for upside scenarios. GDP and HPI downside and upside scenario data represents the lowest and highest points relative to the start point in the 20 quarter period. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Macroeconomic variables used in the calculation of ECL (specific bases) (audited)1 | | | | | | | | Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2 | | | % | % | % | % | % | | As at 31 December 2024 | | | | | | | UK GDP2 | 15.0 | 11.6 | 1.4 | 0.2 | (2.9) | | UK unemployment3 | 3.4 | 3.9 | 4.4 | 6.5 | 8.4 | | UK HPI4 | 36.3 | 25.9 | 3.0 | (11.3) | (26.8) | | UK bank rate3 | 2.8 | 3.3 | 4.2 | 5.3 | 5.3 | | US GDP2 | 14.9 | 12.8 | 2.2 | 0.4 | (2.1) | | US unemployment3 | 3.5 | 3.8 | 4.2 | 5.9 | 7.5 | | US HPI4 | 30.1 | 24.4 | 3.5 | 1.1 | (4.0) | | US federal funds rate3 | 2.8 | 3.3 | 4.2 | 5.3 | 5.3 | | As at 31 December 2023 | | | | | | | UK GDP2 | 13.4 | 9.6 | 1.1 | (1.3) | (4.1) | | UK unemployment3 | 3.5 | 3.9 | 4.7 | 6.5 | 8.3 | | UK HPI4 | 23.8 | 11.5 | 0.1 | (22.5) | (35.0) | | UK bank rate3 | 2.5 | 3.0 | 4.2 | 6.8 | 8.5 | | US GDP2 | 15.1 | 12.3 | 1.8 | 0.6 | (1.7) | | US unemployment3 | 3.4 | 3.5 | 4.2 | 5.9 | 7.5 | | US HPI4 | 27.4 | 23.5 | 3.7 | 0.4 | (7.6) | | US federal funds rate3 | 2.8 | 3.3 | 4.3 | 6.8 | 8.5 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 184 | ## Risk review ## Risk performance #### Credit risk Average basis represents the average quarterly value of variables in the 20 quarter period with GDP and HPI based on yearly average and quarterly CAGRs respectively. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Macroeconomic variables used in the calculation of ECL (5 year averages) (audited)1 | | | | | | | | Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2 | | | % | % | % | % | % | | As at 31 December 2024 | | | | | | | UK GDP5 | 2.6 | 2.0 | 1.4 | 0.9 | 0.5 | | UK unemployment6 | 3.7 | 4.0 | 4.4 | 5.3 | 6.1 | | UK HPI7 | 6.4 | 4.7 | 3.0 | 0.8 | (1.6) | | UK bank rate6 | 3.5 | 3.9 | 4.2 | 3.3 | 2.4 | | US GDP5 | 2.9 | 2.5 | 2.2 | 1.7 | 1.2 | | US unemployment6 | 3.7 | 3.9 | 4.2 | 5.0 | 5.8 | | US HPI7 | 5.4 | 4.5 | 3.5 | 2.4 | 1.2 | | US federal funds rate6 | 3.6 | 4.0 | 4.2 | 3.2 | 2.1 | | As at 31 December 2023 | | | | | | | UK GDP5 | 2.4 | 1.7 | 1.1 | 0.6 | 0.1 | | UK unemployment6 | 3.7 | 4.2 | 4.7 | 5.2 | 5.8 | | UK HPI7 | 4.4 | 2.2 | 0.1 | (1.7) | (3.5) | | UK bank rate6 | 3.3 | 3.8 | 4.2 | 3.6 | 2.9 | | US GDP5 | 2.8 | 2.3 | 1.8 | 1.4 | 0.9 | | US unemployment6 | 3.6 | 3.9 | 4.2 | 4.8 | 5.4 | | US HPI7 | 5.0 | 4.3 | 3.7 | 2.4 | 1.2 | | US federal funds rate6 | 3.6 | 4.0 | 4.3 | 3.9 | 3.2 | Notes 1    UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK unemployment rate 16-year+; UK HPI = Halifax All Houses, All Buyers Index; US GDP = Real GDP growth seasonally adjusted; US unemployment = US civilian unemployment rate 16-year+; US HPI = FHFA house price index. 20 quarter period starts from Q124 (2023: Q123). 2    Maximum growth relative to Q423 (2023: Q422), based on 20 quarter period in Upside scenarios; 5-year yearly average CAGR in Baseline; minimum growth relative to Q423 (2023 : Q422), based on 20 quarter period in Downside scenarios. 3    Lowest quarter in Upside scenarios; 5-year average in Baseline; highest quarter in Downside scenarios. Period based on 20 quarters from Q124 (2023: Q123). 4    Maximum growth relative to Q423 (2023: Q422), based on 20 quarter period in Upside scenarios; 5-year quarter end CAGR in Baseline; minimum growth relative to Q423 (2023: Q422), based on 20 quarter period in Downside scenarios. 5    5-year yearly average CAGR, starting 2023 (2023: 2022). 6    5-year average. Period based on 20 quarters from Q124 (2023: Q123). 7    5-year quarter end CAGR, starting Q423 (2023: Q422). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 185 | ## Risk review ## Risk performance #### Credit risk The graphs below plot the historical data for the quarterly, year on year GDP growth rate (Q v Q-4) and the quarterly unemployment rate in the UK and US as well as the forecasted data under each of the five scenarios. | | | --- | | | | UK GDP (%) | ![7728]() | | | --- | | | | US GDP (%) | ![7732]() | | | --- | | | | UK unemployment (%) | ![7736]() | | | --- | | | | US unemployment (%) | ![7740]() GDP growth based on year on year growth each quarter (Q/ (Q-4 )) | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 186 | ## Risk review ## Risk performance #### Credit risk #### ECL sensitivity analysis (audited) The table below shows the Expected Credit Loss (ECL) assuming scenarios have been 100% weighted with the dispersion of results around the Baseline, highlighting the impact on exposure and ECL across the scenarios. Model exposure uses exposure at default (EAD) values and is not directly comparable to gross exposure used in prior disclosures. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Barclays Bank Group (audited) | Scenarios1 | | | | | | | As at 31 December 2024 | Weighted2 | Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2 | | Stage 1 Model exposure (£m) | | | | | | | | Retail mortgages | 9 | 9 | 9 | 9 | 9 | 9 | | Retail credit cards | 45,377 | 45,328 | 45,352 | 45,377 | 45,429 | 45,462 | | Retail other | — | — | — | — | — | — | | Corporate loans | 193,873 | 194,752 | 194,413 | 194,151 | 193,208 | 189,985 | | Stage 1 Model ECL (£m) | | | | | | | | Retail mortgages | — | — | — | — | — | — | | Retail credit cards | 422 | 410 | 417 | 423 | 431 | 438 | | Retail other | — | — | — | — | — | — | | Corporate loans | 237 | 206 | 215 | 226 | 272 | 318 | | Stage 1 Coverage (%) | | | | | | | | Retail mortgages | — | — | — | — | — | — | | Retail credit cards | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 1.0 | | Retail other | — | — | — | — | — | — | | Corporate loans | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 | | Stage 2 Model exposure (£m) | | | | | | | | Retail mortgages | 3 | 3 | 3 | 3 | 3 | 3 | | Retail credit cards | 4,591 | 4,516 | 4,554 | 4,590 | 4,660 | 4,752 | | Retail other | — | — | — | — | — | — | | Corporate loans | 17,769 | 16,740 | 17,134 | 17,508 | 18,576 | 21,956 | | Stage 2 Model ECL (£m) | | | | | | | | Retail mortgages | — | — | — | — | — | — | | Retail credit cards | 1,024 | 976 | 999 | 1,023 | 1,070 | 1,127 | | Retail other | — | — | — | — | — | — | | Corporate loans | 464 | 373 | 404 | 439 | 569 | 813 | | Stage 2 Coverage (%) | | | | | | | | Retail mortgages | — | — | — | — | — | — | | Retail credit cards | 22.3 | 21.6 | 21.9 | 22.3 | 23.0 | 23.7 | | Retail other | — | — | — | — | — | — | | Corporate loans | 2.6 | 2.2 | 2.4 | 2.5 | 3.1 | 3.7 | | Stage 3 Model exposure (£m)3 | | | | | | | | Retail mortgages | 25 | 25 | 25 | 25 | 25 | 25 | | Retail credit cards | 2,005 | 2,005 | 2,005 | 2,005 | 2,005 | 2,005 | | Retail other | — | — | — | — | — | — | | Corporate loans | 34 | 34 | 34 | 34 | 34 | 34 | | Stage 3 Model ECL (£m) | | | | | | | | Retail mortgages | 5 | 4 | 5 | 5 | 5 | 5 | | Retail credit cards | 1,535 | 1,496 | 1,517 | 1,537 | 1,570 | 1,598 | | Retail other | — | — | — | — | — | — | | Corporate loans4 | 25 | 25 | 25 | 25 | 25 | 25 | | Stage 3 Coverage (%) | | | | | | | | Retail mortgages | 20.0 | 16.0 | 20.0 | 20.0 | 20.0 | 20.0 | | Retail credit cards | 76.6 | 74.6 | 75.7 | 76.7 | 78.3 | 79.7 | | Retail other | — | — | — | — | — | — | | Corporate loans4 | 73.5 | 73.5 | 73.5 | 73.5 | 73.5 | 73.5 | | Total Model ECL (£m) | | | | | | | | Retail mortgages | 5 | 4 | 5 | 5 | 5 | 5 | | Retail credit cards | 2,981 | 2,882 | 2,933 | 2,983 | 3,071 | 3,163 | | Retail other | — | — | — | — | — | — | | Corporate loans4 | 726 | 604 | 644 | 690 | 866 | 1,156 | | Total Model ECL | 3,712 | 3,490 | 3,582 | 3,678 | 3,942 | 4,324 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 187 | ## Risk review ## Risk performance #### Credit risk | | | | --- | --- | | | | | Reconciliation to total ECL | £m | | Total weighted model ECL | 3,712 | | ECL from individually assessed exposures4 | 329 | | ECL from non-modelled exposures and others | 103 | | ECL from debt securities at amortised cost | 20 | | ECL from held for sale assets (co-branded card portfolio) | (282) | | ECL from post model management adjustments5 | (22) | | Of which: ECL from economic uncertainty adjustments | — | | Total ECL | 3,860 | Notes 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 the 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 allowance. 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 31st December 2024 and not on macroeconomic scenario. 4. Material corporate loan defaults are individually assessed across different recovery strategies. As a result, ECL of £329m is reported as an individually assessed impairment in the reconciliation table. 5. Includes negative operational management adjustments. The use of five scenarios with associated weightings results in a total weighted ECL uplift from the Baseline ECL of 0.9%. Retail mortgages: Total weighted ECL of £5m is aligned to the Baseline ECL (£5m). Retail credit cards: Total weighted ECL of £2,981m is broadly aligned to the Baseline ECL ( £2,983m). Total ECL increases to £3,163m under the Downside 2 scenario, driven by an increase in US unemployment rate. Corporate loans: Total weighted ECL of £726m represents a 5.2% increase over the Baseline ECL (£690m) reflecting the range of economic scenarios used, with exposures in the Investment Bank being particularly sensitive to the Downside 2 scenario. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 188 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Barclays Bank Group (audited) | Scenarios1 | | | | | | | As at 31 December 2023 | Weighted2 | Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2 | | Stage 1 Model exposure (£m) | | | | | | | | Retail mortgages | 2,858 | 2,891 | 2,877 | 2,856 | 2,828 | 2,785 | | Retail credit cards | 49,088 | 49,021 | 49,041 | 49,059 | 49,161 | 49,241 | | Retail other | — | — | — | — | — | — | | Corporate loans | 157,168 | 159,242 | 158,560 | 157,681 | 155,431 | 152,198 | | Stage 1 Model ECL (£m) | | | | | | | | Retail mortgages | 4 | 4 | 4 | 4 | 5 | 5 | | Retail credit cards | 446 | 423 | 435 | 447 | 460 | 474 | | Retail other | — | — | — | — | — | — | | Corporate loans | 241 | 211 | 223 | 238 | 260 | 276 | | Stage 1 Coverage (%) | | | | | | | | Retail mortgages | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 | 0.2 | | Retail credit cards | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 1.0 | | Retail other | — | — | — | — | — | — | | Corporate loans | 0.2 | 0.1 | 0.1 | 0.2 | 0.2 | 0.2 | | Stage 2 Model exposure (£m) | | | | | | | | Retail mortgages | 357 | 324 | 338 | 359 | 387 | 430 | | Retail credit cards | 4,624 | 4,535 | 4,577 | 4,621 | 4,679 | 4,758 | | Retail other | — | — | — | — | — | — | | Corporate loans | 19,630 | 17,386 | 18,125 | 19,126 | 21,485 | 24,859 | | Stage 2 Model ECL (£m) | | | | | | | | Retail mortgages | 30 | 22 | 25 | 29 | 36 | 42 | | Retail credit cards | 1,191 | 1,113 | 1,150 | 1,189 | 1,243 | 1,307 | | Retail other | — | — | — | — | — | — | | Corporate loans | 516 | 390 | 435 | 488 | 617 | 833 | | Stage 2 Coverage (%) | | | | | | | | Retail mortgages | 8.4 | 6.8 | 7.4 | 8.1 | 9.3 | 9.8 | | Retail credit cards | 25.8 | 24.5 | 25.1 | 25.7 | 26.6 | 27.5 | | Retail other | — | — | — | — | — | — | | Corporate loans | 2.6 | 2.2 | 2.4 | 2.6 | 2.9 | 3.4 | | Stage 3 Model exposure (£m)3 | | | | | | | | Retail mortgages | 558 | 558 | 558 | 558 | 558 | 558 | | Retail credit cards | 1,596 | 1,596 | 1,596 | 1,596 | 1,596 | 1,596 | | Retail other | — | — | — | — | — | — | | Corporate loans | 45 | 45 | 45 | 45 | 45 | 45 | | Stage 3 Model ECL (£m) | | | | | | | | Retail mortgages | 312 | 302 | 306 | 311 | 319 | 327 | | Retail credit cards | 1,229 | 1,194 | 1,211 | 1,227 | 1,254 | 1,276 | | Retail other | — | — | — | — | — | — | | Corporate loans4 | 29 | 29 | 29 | 29 | 29 | 29 | | Stage 3 Coverage (%) | | | | | | | | Retail mortgages | 55.9 | 54.1 | 54.8 | 55.7 | 57.2 | 58.6 | | Retail credit cards | 77.0 | 74.8 | 75.9 | 76.9 | 78.6 | 79.9 | | Retail other | — | — | — | — | — | — | | Corporate loans4 | 64.4 | 64.4 | 64.4 | 64.4 | 64.4 | 64.4 | | Total Model ECL (£m) | | | | | | | | Retail mortgages | 346 | 328 | 335 | 344 | 360 | 374 | | Retail credit cards | 2,866 | 2,730 | 2,796 | 2,863 | 2,957 | 3,057 | | Retail other | — | — | — | — | — | — | | Corporate loans4 | 786 | 630 | 687 | 755 | 906 | 1,138 | | Total Model ECL | 3,998 | 3,688 | 3,818 | 3,962 | 4,223 | 4,569 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 189 | ## Risk review ## Risk performance #### Credit risk | | | | --- | --- | | | | | Reconciliation to total ECL | £m | | Total weighted model ECL | 3,998 | | ECL from individually assessed exposures4 | 289 | | ECL from non-modelled exposures and others | 221 | | ECL from debt securities at amortised cost | 24 | | ECL from post model management adjustments5 | (18) | | Of which: ECL from economic uncertainty adjustments | 16 | | Total ECL | 4,514 | Notes 1. Model exposure and ECL reported within Retail credit cards and Retail other excludes the German consumer finance business portfolio which has now been classified as assets held for sale. 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 do not change in any of the scenarios as the transition criteria relies only on an observable evidence of default as at 31st December 2023 and not on macroeconomic scenario. 4. Material corporate loan defaults are individually assessed across different recovery strategies. As a result, ECL of £289m is reported as an individually assessed impairment in the reconciliation table. 5. Includes negative operational management adjustments. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 190 | ## Risk review ## Risk performance #### Credit risk #### Analysis of the concentration of credit risk A concentration of credit risk exists when a number of counterparties are located in a common geographical region or are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The Barclays Bank Group implements limits on concentrations in order to mitigate the risk. The table below presents an industry credit risk concentration analysis of loans and advances at amortised cost net of impairment allowance including breakdown by geographical location of the counterparty or customers. Further includes debt securities at amortised cost, off-balance sheet commitments and financial guarantees and contingent liabilities at amortised cost by geography. Further detail on the Barclays Bank Group's policies with regard to managing concentration risk is presented in the Barclays Bank PLC Pillar 3 Report 2024 (unaudited). #### Credit risk concentration by Industry and Geography (audited) | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Loans and advances at amortised cost net of impairment allowance | | | | | | | Industry | Geography | | | | | | United Kingdom | Americas | Europe | Others | Total | | Barclays Bank Group | | | | | | | As at 31 December 2024 | £m | £m | £m | £m | £m | | Agriculture, Food and Forest Products | 112 | — | — | — | 112 | | Mining and Quarrying | 506 | 709 | 189 | — | 1,404 | | Manufacturing | 3,168 | 1,418 | 828 | 349 | 5,763 | | Government and central bank | 220 | — | 2 | 342 | 564 | | Banks | 1,212 | 3,573 | 1,286 | 2,707 | 8,778 | | Energy and water | 2,067 | 401 | 203 | 287 | 2,958 | | Materials and Building | 11,255 | 2,815 | 399 | 218 | 14,687 | | Wholesale and retail distribution and leisure | 5,931 | 831 | 294 | 616 | 7,672 | | Transport and storage | 519 | 421 | 300 | 96 | 1,336 | | Home Loans | 3,079 | 110 | 899 | 868 | 4,956 | | Business and other services | 11,846 | 5,196 | 3,646 | 1,031 | 21,719 | | Other Financial Institutions | 10,655 | 30,788 | 7,226 | 2,542 | 51,211 | | Cards, unsecured loans and other personal lending | 1,826 | 20,081 | 993 | 767 | 23,667 | | Total loans and advances at amortised cost | 52,396 | 66,343 | 16,265 | 9,823 | 144,827 | | Debt securities at amortised cost | 15,822 | 18,062 | 15,123 | 1,220 | 50,227 | | Total loans and advances at amortised cost including debt | 68,218 | 84,405 | 31,388 | 11,043 | 195,054 | | Contingent liabilities | 6,442 | 10,742 | 5,514 | 2,879 | 25,577 | | Loan commitments | 46,590 | 243,612 | 39,864 | 8,361 | 338,427 | | Total off-balance sheet1 | 53,032 | 254,354 | 45,378 | 11,240 | 364,004 | | | | | | | | | As at 31 December 2023 | | | | | | | Agriculture, Food and Forest Products | 79 | — | — | 5 | 84 | | Mining and Quarrying | 484 | 843 | 260 | 121 | 1,708 | | Manufacturing | 3,693 | 1,279 | 826 | 416 | 6,214 | | Government and central bank | 1,265 | — | 5 | 30 | 1,300 | | Banks | 955 | 3,605 | 1,496 | 1,889 | 7,945 | | Energy and water | 2,123 | 487 | 879 | 180 | 3,669 | | Materials and Building | 10,111 | 2,620 | 446 | 113 | 13,290 | | Wholesale and retail distribution and leisure | 5,097 | 1,061 | 481 | 452 | 7,091 | | Transport and storage | 522 | 536 | 182 | 118 | 1,358 | | Home Loans | 3,208 | 96 | 3,869 | 829 | 8,002 | | Business and other services | 12,059 | 5,491 | 3,164 | 1,022 | 21,736 | | Other Financial Institutions | 11,326 | 25,588 | 6,481 | 2,532 | 45,927 | | Cards, unsecured loans and other personal lending | 911 | 24,855 | 1,382 | 729 | 27,877 | | Total loans and advances at amortised cost | 51,833 | 66,461 | 19,471 | 8,436 | 146,201 | | Debt securities at amortised cost | 17,599 | 9,910 | 9,980 | 1,557 | 39,046 | | Total loans and advances at amortised cost including debt | 69,432 | 76,371 | 29,451 | 9,993 | 185,247 | | Contingent liabilities | 7,156 | 10,263 | 5,919 | 2,225 | 25,563 | | Loan commitments | 45,475 | 227,606 | 41,571 | 8,080 | 322,732 | | Total off-balance sheet1 | 52,631 | 237,869 | 47,490 | 10,305 | 348,295 | Note 1The Off-balance sheet contingent liabilities and loan commitments excludes the fair value balance of £16,338m in 2024 (2023: £16,469 m) and includes exposures relating to financial assets classified as assets held for sale. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 191 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Loans and advances at amortised cost net of impairment allowance | | | | | | | Industry | Geography | | | | | | United Kingdom | Americas | Europe | Others | Total | | Barclays Bank PLC | | | | | | | As at 31 December 2024 | £m | £m | £m | £m | £m | | Agriculture, Food and Forest Products | 112 | — | — | — | 112 | | Mining and Quarrying | 495 | 708 | 53 | — | 1,256 | | Manufacturing | 3,050 | 1,353 | 242 | 267 | 4,912 | | Government and central bank | 220 | — | 2 | 342 | 564 | | Banks | 910 | 3,775 | 6,968 | 3,179 | 14,832 | | Energy and water | 2,024 | 377 | 135 | 287 | 2,823 | | Materials and Building | 11,255 | 2,816 | 112 | 149 | 14,332 | | Wholesale and retail distribution and leisure | 5,926 | 826 | 80 | 577 | 7,409 | | Transport and storage | 519 | 350 | 62 | 89 | 1,020 | | Home Loans | 2,975 | 98 | 633 | 775 | 4,481 | | Business and other services | 11,593 | 4,013 | 1,970 | 900 | 18,476 | | Other Financial Institutions | 92,842 | 30,512 | 25,780 | 2,801 | 151,935 | | Cards, unsecured loans and other personal lending | 1,698 | 141 | 713 | 348 | 2,900 | | Total loans and advances at amortised cost | 133,619 | 44,969 | 36,750 | 9,714 | 225,052 | | Debt securities at amortised cost | 15,477 | 8,438 | 10,385 | 1,219 | 35,519 | | Total loans and advances at amortised cost including debt securities | 149,096 | 53,407 | 47,135 | 10,933 | 260,571 | | Contingent liabilities | 22,756 | 12,573 | 9,531 | 2,753 | 47,613 | | Loan commitments | 45,477 | 139,587 | 14,804 | 7,290 | 207,158 | | Total off-balance sheet1 | 68,233 | 152,160 | 24,335 | 10,043 | 254,771 | | | | | | | | | As at 31 December 2023 | | | | | | | Agriculture, Food and Forest Products | 79 | — | — | 5 | 84 | | Mining and Quarrying | 481 | 838 | 1 | 121 | 1,441 | | Manufacturing | 3,608 | 1,217 | 311 | 397 | 5,533 | | Government and central bank | 1,264 | — | — | 30 | 1,294 | | Banks | 631 | 3,145 | 7,306 | 3,148 | 14,230 | | Energy and water | 2,113 | 451 | 722 | 180 | 3,466 | | Materials and Building | 10,106 | 2,560 | 258 | 70 | 12,994 | | Wholesale and retail distribution and leisure | 5,094 | 1,057 | 160 | 429 | 6,740 | | Transport and storage | 522 | 434 | 66 | 111 | 1,133 | | Home Loans | 3,089 | 88 | 572 | 726 | 4,475 | | Business and other services | 11,519 | 4,255 | 2,150 | 968 | 18,892 | | Other Financial Institutions | 136,123 | 26,040 | 4,376 | 3,198 | 169,737 | | Cards, unsecured loans and other personal lending | 1,121 | 269 | 739 | 291 | 2,420 | | Total loans and advances at amortised cost | 175,750 | 40,354 | 16,661 | 9,674 | 242,439 | | Debt securities at amortised cost | 17,529 | 5,827 | 8,664 | 1,556 | 33,576 | | Total loans and advances at amortised cost including debt | 193,279 | 46,181 | 25,325 | 11,230 | 276,015 | | Contingent liabilities | 43,051 | 12,159 | 10,370 | 2,109 | 67,689 | | Loan commitments | 43,227 | 127,210 | 15,773 | 7,292 | 193,502 | | Total off-balance sheet1 | 86,278 | 139,369 | 26,143 | 9,401 | 261,191 | Note 1The off-balance sheet contingent liabilities and loan commitments excludes the fair value balance of £15,917m in 2024 (2023: £14,489m) | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 192 | ## Risk review ## Risk performance #### Credit risk #### Approach to management and representation of credit quality Asset credit quality The credit quality distribution is based on the IFRS 9 12 month probability of default (PD) at the reporting date to ensure comparability with other ECL disclosures in Expected Credit Losses section on pages [163](#ia16d0659cd524c01ae655d82fa382c3d_196) to [189](#i8c2e3035e3cb4e969fdf2426eaa41314_3039). The Barclays Bank Group uses the following internal measures to determine credit quality for loans: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | PD Range % | Internal DG Band | Default Probability | | | Credit Quality description | Moody’s | Standard and Poor’s | | >Min | Mid | <=Max | | 0.00 to < 0.15 | 1 | 0.00% | 0.01% | 0.02% | Strong | Aaa, Aa1, Aa2 | AAA, AA+, AA, AA- | | 2 | 0.02% | 0.03% | 0.03% | Aa3 | AA- | | 3 | 0.03% | 0.04% | 0.05% | A1, A2, A3 | A+, A | | 4 | 0.05% | 0.08% | 0.10% | A1, A2, A3 | A- | | 5 | 0.10% | 0.13% | 0.15% | Baa1 | BBB+ | | 0.15 to < 0.25 | 6 | 0.15% | 0.18% | 0.20% | Strong | Baa2 | BBB | | 7 | 0.20% | 0.23% | 0.25% | Baa2 | BBB- | | 0.25 to < 0.50 | 8 | 0.25% | 0.28% | 0.30% | Strong | Baa3 | BBB- | | 9 | 0.30% | 0.35% | 0.40% | Baa3 | BB+ | | 10 | 0.40% | 0.45% | 0.50% | Ba1 | BB+ | | 0.50 to < 0.75 | 11 | 0.50% | 0.55% | 0.60% | Strong | Ba1 | BB | | 12 | 0.60% | 0.68% | 0.75% | Satisfactory | Ba2 | BB, BB- | | 0.75 to < 2.50 | 12 | 0.75% | 0.98% | 1.20% | Satisfactory | Ba2 | BB, BB- | | 13 | 1.20% | 1.38% | 1.55% | Ba3 | BB- | | 14 | 1.55% | 1.85% | 2.15% | Ba3 | B+ | | 15 | 2.15% | 2.33% | 2.50% | B1 | B+ | | 2.50 to < 10.00 | 15 | 2.50% | 2.78% | 3.05% | Satisfactory | B1 | B+ | | 16 | 3.05% | 3.75% | 4.45% | B2 | B | | 17 | 4.45% | 5.40% | 6.35% | B3, Caa1 | B | | 18 | 6.35% | 7.50% | 8.65% | B3, Caa1 | B- | | 19 | 8.65% | 9.32% | 10.00% | Caa2 | B- | | 10.00 to < 100.00 | 19 | 10.00% | 10.67% | 11.35% | Satisfactory | Caa2 | B- | | 20 | 11.35% | 15.00% | 18.65% | Higher Risk | Caa2 | CCC+ | | 21 | 18.65% | 30.00% | 99.99% | Higher Risk | Caa3, Ca, C | CCC, CCC-, CC+, CC, C | | 100.00 (Default) | 22 | 100% | 100% | 100% | Credit Impaired | D | D | | | | | | | | | | For retail clients, a range of analytical tools are used to derive the probability of default of clients at inception and on an ongoing basis. These credit quality descriptions can be summarised as follows: Strong: there is a very high likelihood of the asset being recovered in full. Satisfactory: while there is a high likelihood that the asset will be recovered and therefore, of no cause for concern to the Barclays Bank Group, the asset may not be collateralised, or may relate to unsecured retail facilities. At the lower end of this grade there are customers that are being more carefully monitored, for example, corporate customers which are indicating some evidence of deterioration, mortgages with a high loan to value, and unsecured retail loans operating outside normal product guidelines. Higher risk: there is concern over the obligor’s ability to make payments when due. However, these have not yet converted to actual delinquency. There may also be doubts over the value of collateral or security provided. However, the borrower or counterparty is continuing to make payments when due and is expected to settle all outstanding amounts of principal and interest. Loans that are past due are monitored closely, with impairment allowances raised as appropriate and in line with the Barclays Bank Group’s impairment policies. These loans are all considered higher risk for the purpose of this analysis of credit quality. Debt securities For assets held at fair value, the carrying value on the balance sheet will include, among other things, the credit risk of the issuer. Most listed and some unlisted securities are rated by external rating agencies. The Barclays Bank Group mainly uses external credit ratings provided by Standard & Poor’s, Fitch or Moody’s. Where such ratings are not available or are not current, the Barclays Bank Group will use its own internal ratings for the securities. Balance sheet credit quality The following tables present the credit quality of Barclays Bank Group assets exposed to credit risk. Overview As at 31 December 2024, the ratio of the Barclays Bank Group’s on-balance sheet assets classified as strong (0.0 < 0.60%) at 85% (2023: 87%) of total assets exposed to credit risk. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 193 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Balance sheet credit quality (audited) | | | | | | | | | | | Barclays Bank Group | PD Range | 0.0 to <0.60% | 0.60 to <11.35% | 11.35% to 100% | Total | 0.0 to <0.60% | 0.60 to <11.35% | 11.35% to 100% | Total | | As at 31 December 2024 | | £m | £m | £m | £m | % | % | % | % | | Cash and balances at central banks | | 180,365 | — | — | 180,365 | 100 | — | — | 100 | | Cash collateral and settlement balances | | 98,590 | 15,371 | 26 | 113,987 | 87 | 13 | — | 100 | | Loans and advances at amortised cost | | | | | | | | | | | Retail mortgages | | 4,524 | 153 | 279 | 4,956 | 91 | 3 | 6 | 100 | | Retail credit cards | | 7,488 | 11,063 | 1,198 | 19,749 | 38 | 56 | 6 | 100 | | Retail other | | 3,217 | 503 | 198 | 3,918 | 82 | 13 | 5 | 100 | | Corporate loans | | 93,324 | 19,893 | 2,987 | 116,204 | 80 | 17 | 3 | 100 | | Total loans and advances at amortised cost | | 108,553 | 31,612 | 4,662 | 144,827 | 75 | 22 | 3 | 100 | | Debt securities at amortised cost | | 49,888 | 339 | — | 50,227 | 99 | 1 | — | 100 | | Reverse repurchase agreements and other similar secured lending | | 1,625 | 1,768 | — | 3,393 | 48 | 52 | — | 100 | | Trading portfolio assets: | | | | | | | | | | | Debt securities | | 65,785 | 11,478 | 542 | 77,805 | 84 | 15 | 1 | 100 | | Traded loans | | 2,543 | 7,442 | 3,485 | 13,470 | 19 | 55 | 26 | 100 | | Total trading portfolio assets | | 68,328 | 18,920 | 4,027 | 91,275 | 75 | 21 | 4 | 100 | | Financial assets at fair value through the income statement: | | | | | | | | | | | Loans and advances | | 24,252 | 19,357 | 573 | 44,182 | 55 | 44 | 1 | 100 | | Debt securities | | 1,722 | 1,156 | 53 | 2,931 | 59 | 39 | 2 | 100 | | Reverse repurchase agreements | | 103,589 | 37,565 | 637 | 141,791 | 73 | 27 | — | 100 | | Other financial assets | | 63 | 22 | — | 85 | 74 | 26 | — | 100 | | Total financial assets at fair value through the income statement | | 129,626 | 58,100 | 1,263 | 188,989 | 68 | 31 | 1 | 100 | | Derivative financial instruments | | 274,058 | 18,104 | 194 | 292,356 | 94 | 6 | — | 100 | | Financial assets at fair value through other comprehensive income | | 50,960 | 50 | — | 51,010 | 100 | — | — | 100 | | Other assets | | 594 | 68 | 3 | 665 | 90 | 10 | — | 100 | | Assets held for sale | | 1,178 | 8,235 | 131 | 9,544 | 12 | 87 | 1 | 100 | | Total on-balance sheet | | 963,765 | 152,567 | 10,306 | 1,126,638 | 85 | 14 | 1 | 100 | | | | | | | | | | | | | As at 31 December 2023 | | | | | | | | | | | Cash and balances at central banks | | 189,686 | — | — | 189,686 | 100 | — | — | 100 | | Cash collateral and settlement balances | | 93,911 | 9,789 | 8 | 103,708 | 91 | 9 | — | 100 | | Loans and advances at amortised cost | | | | | | | | | | | Retail mortgages | | 5,444 | 2,115 | 443 | 8,002 | 68 | 26 | 6 | 100 | | Retail credit cards | | 7,077 | 16,355 | 1,079 | 24,511 | 29 | 67 | 4 | 100 | | Retail other | | 2,687 | 403 | 276 | 3,366 | 80 | 12 | 8 | 100 | | Corporate loans | | 86,530 | 21,338 | 2,454 | 110,322 | 79 | 19 | 2 | 100 | | Total loans and advances at amortised cost | | 101,738 | 40,211 | 4,252 | 146,201 | 69 | 28 | 3 | 100 | | Debt securities at amortised cost | | 38,892 | 153 | 1 | 39,046 | 100 | — | — | 100 | | Reverse repurchase agreements and other similar secured lending | | 933 | 170 | — | 1,103 | 85 | 15 | — | 100 | | Trading portfolio assets: | | | | | | | | | | | Debt securities | | 65,430 | 9,642 | 387 | 75,459 | 86 | 13 | 1 | 100 | | Traded loans | | 4,006 | 5,893 | 2,754 | 12,653 | 32 | 46 | 22 | 100 | | Total trading portfolio assets | | 69,436 | 15,535 | 3,141 | 88,112 | 78 | 18 | 4 | 100 | | Financial assets at fair value through the income statement: | | | | | | | | | | | Loans and advances | | 29,436 | 16,830 | 275 | 46,541 | 63 | 36 | 1 | 100 | | Debt securities | | 1,412 | 1,091 | 42 | 2,545 | 55 | 43 | 2 | 100 | | Reverse repurchase agreements | | 112,799 | 35,988 | 344 | 149,131 | 76 | 24 | — | 100 | | Other financial assets | | 59 | 22 | — | 81 | 73 | 27 | — | 100 | | Total financial assets at fair value through the income statement | | 143,706 | 53,931 | 661 | 198,298 | 73 | 27 | — | 100 | | Derivative financial instruments | | 244,361 | 11,616 | 134 | 256,111 | 95 | 5 | — | 100 | | Financial assets at fair value through other comprehensive income | | 50,966 | 455 | — | 51,421 | 99 | 1 | — | 100 | | Other assets | | 2,011 | 54 | 3 | 2,068 | 97 | 3 | — | 100 | | Assets held for sale | | 1,110 | 2,618 | 127 | 3,855 | 29 | 68 | 3 | 100 | | Total on-balance sheet | | 936,750 | 134,532 | 8,327 | 1,079,609 | 87 | 12 | 1 | 100 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 194 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Balance sheet credit quality (audited) | | | | | | | | | | | Barclays Bank PLC | PD Range | 0.0 to <0.60% | 0.60 to <11.35% | 11.35% to 100% | Total | 0.0 to <0.60% | 0.60 to <11.35% | 11.35% to 100% | Total | | As at 31 December 2024 | | £m | £m | £m | £m | % | % | % | % | | Cash and balances at central banks | | 151,288 | — | — | 151,288 | 100 | — | — | 100 | | Cash collateral and settlement balances | | 68,656 | 6,602 | 26 | 75,284 | 91 | 9 | — | 100 | | Loans and advances at amortised cost | | | | | | | | | | | Retail mortgages | | 4,121 | 136 | 224 | 4,481 | 92 | 3 | 5 | 100 | | Retail credit cards | | — | — | — | — | — | — | — | — | | Retail other | | 2,378 | 360 | 162 | 2,900 | 82 | 12 | 6 | 100 | | Corporate loans | | 196,673 | 18,424 | 2,574 | 217,671 | 91 | 8 | 1 | 100 | | Total loans and advances at amortised cost | | 203,172 | 18,920 | 2,960 | 225,052 | 91 | 8 | 1 | 100 | | Debt securities at amortised cost | | 35,183 | 336 | — | 35,519 | 99 | 1 | — | 100 | | Reverse repurchase agreements and other similar secured lending | | 3,778 | 1,768 | — | 5,546 | 68 | 32 | — | 100 | | Trading portfolio assets: | | | | | | | | | | | Debt securities | | 29,401 | 8,721 | 536 | 38,658 | 76 | 23 | 1 | 100 | | Traded loans | | 2,509 | 6,888 | 3,483 | 12,880 | 19 | 54 | 27 | 100 | | Total trading portfolio assets | | 31,910 | 15,609 | 4,019 | 51,538 | 62 | 30 | 8 | 100 | | Financial assets at fair value through the income statement: | | | | | | | | | | | Loans and advances | | 44,796 | 9,368 | 547 | 54,711 | 82 | 17 | 1 | 100 | | Debt securities | | 3,136 | 994 | 35 | 4,165 | 75 | 24 | 1 | 100 | | Reverse repurchase agreements | | 159,227 | 34,906 | 637 | 194,770 | 82 | 18 | — | 100 | | Other financial assets | | 20 | 1 | — | 21 | 95 | 5 | — | 100 | | Total financial assets at fair value through the income statement | | 207,179 | 45,269 | 1,219 | 253,667 | 82 | 18 | — | 100 | | Derivative financial instruments | | 244,663 | 15,637 | 187 | 260,487 | 94 | 6 | — | 100 | | Financial assets at fair value through other comprehensive income | | 49,449 | 50 | — | 49,499 | 100 | — | — | 100 | | Other assets | | 720 | — | 3 | 723 | 100 | — | — | 100 | | Total on-balance sheet | | 995,998 | 104,191 | 8,414 | 1,108,603 | 90 | 9 | 1 | 100 | | | | | | | | | | | | | As at 31 December 2023 | | | | | | | | | | | Cash and balances at central banks | | 153,701 | — | — | 153,701 | 100 | — | — | 100 | | Cash collateral and settlement balances | | 70,188 | 5,079 | 4 | 75,271 | 93 | 7 | — | 100 | | Loans and advances at amortised cost | | | | | | | | | | | Retail mortgages | | 4,145 | 52 | 278 | 4,475 | 93 | 1 | 6 | 100 | | Retail credit cards | | — | — | — | — | — | — | — | — | | Retail other | | 1,902 | 287 | 231 | 2,420 | 78 | 12 | 10 | 100 | | Corporate loans | | 213,839 | 19,520 | 2,185 | 235,544 | 91 | 8 | 1 | 100 | | Total loans and advances at amortised cost | | 219,886 | 19,859 | 2,694 | 242,439 | 91 | 8 | 1 | 100 | | Debt securities at amortised cost | | 33,424 | 151 | 1 | 33,576 | 100 | — | — | 100 | | Reverse repurchase agreements and other similar secured lending | | 6,706 | 170 | — | 6,876 | 98 | 2 | — | 100 | | Trading portfolio assets: | | | | | | | | | | | Debt securities | | 30,021 | 7,108 | 363 | 37,492 | 80 | 19 | 1 | 100 | | Traded loans | | 4,006 | 5,839 | 2,754 | 12,599 | 32 | 46 | 22 | 100 | | Total trading portfolio assets | | 34,027 | 12,947 | 3,117 | 50,091 | 68 | 26 | 6 | 100 | | Financial assets at fair value through the income statement: | | | | | | | | | | | Loans and advances | | 44,565 | 7,154 | 217 | 51,936 | 86 | 14 | — | 100 | | Debt securities | | 2,617 | 945 | 42 | 3,604 | 73 | 26 | 1 | 100 | | Reverse repurchase agreements | | 176,548 | 31,393 | 343 | 208,284 | 85 | 15 | — | 100 | | Other financial assets | | 17 | — | — | 17 | 100 | — | — | 100 | | Total financial assets at fair value through the income statement | | 223,747 | 39,492 | 602 | 263,841 | 85 | 15 | — | 100 | | Derivative financial instruments | | 215,659 | 9,539 | 103 | 225,301 | 96 | 4 | — | 100 | | Financial assets at fair value through other comprehensive income | | 49,926 | 455 | — | 50,381 | 99 | 1 | — | 100 | | Other assets | | 2,199 | — | 3 | 2,202 | 100 | — | — | 100 | | Total on-balance sheet | | 1,009,463 | 87,692 | 6,524 | 1,103,679 | 91 | 8 | 1 | 100 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 195 | ## Risk review ## Risk performance #### Credit risk #### Credit exposures by internal PD grade The below tables represent credit risk profiles by PD grade for loans and advances at amortised cost, contingent liabilities and loan commitments. Stage 1 higher risk assets, presented gross of associated collateral held, are of weaker credit quality but have not significantly deteriorated since origination. IFRS 9 Stage 1 and Stage 2 classification is not dependent solely on the absolute probability of default but on elements that determine a Significant Increase in Credit Risk, including relative movement in probability of default since initial recognition. There is therefore no direct relationship between credit quality and IFRS 9 stage classification. | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for retail mortgages (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | — | — | — | — | — | — | — | — | — | — | | 4-5 | 0.05 to <0.15% | Strong | 4 | — | — | 4 | — | — | — | — | 4 | — | | 6-8 | 0.15 to <0.30% | Strong | 2 | — | — | 2 | — | — | — | — | 2 | — | | 9-11 | 0.30 to <0.60% | Strong | 4,526 | — | — | 4,526 | 8 | — | — | 8 | 4,518 | 0.2 | | 12-14 | 0.60 to <2.15% | Satisfactory | 4 | 1 | — | 5 | — | — | — | — | 5 | — | | 15-19 | 2.15 to <11.35% | Satisfactory | 1 | 148 | — | 149 | — | 1 | — | 1 | 148 | 0.7 | | 20-21 | 11.35 to <100% | Higher Risk | — | 1 | — | 1 | — | — | — | — | 1 | — | | 22 | 100% | Credit Impaired | — | — | 310 | 310 | — | — | 32 | 32 | 278 | 10.3 | | Total | | | 4,537 | 150 | 310 | 4,997 | 8 | 1 | 32 | 41 | 4,956 | 0.8 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for retail credit cards3 (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 1 | — | — | 1 | — | — | — | — | 1 | — | | 4-5 | 0.05 to <0.15% | Strong | 565 | — | — | 565 | 1 | — | — | 1 | 564 | 0.2 | | 6-8 | 0.15 to <0.30% | Strong | 2,562 | 2 | — | 2,564 | 7 | — | — | 7 | 2,557 | 0.3 | | 9-11 | 0.30 to <0.60% | Strong | 4,384 | 4 | — | 4,388 | 22 | — | — | 22 | 4,366 | 0.5 | | 12-14 | 0.60 to <2.15% | Satisfactory | 2,905 | 117 | — | 3,022 | 37 | 9 | — | 46 | 2,976 | 1.5 | | 15-19 | 2.15 to <11.35% | Satisfactory | 7,018 | 1,578 | — | 8,596 | 242 | 267 | — | 509 | 8,087 | 5.9 | | 20-21 | 11.35 to <100% | Higher Risk | 194 | 1,252 | — | 1,446 | 25 | 531 | — | 556 | 890 | 38.5 | | 22 | 100% | Credit Impaired | — | — | 1,724 | 1,724 | — | — | 1,416 | 1,416 | 308 | 82.1 | | Total | | | 17,629 | 2,953 | 1,724 | 22,306 | 334 | 807 | 1,416 | 2,557 | 19,749 | 11.5 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for retail other3 (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | — | — | — | — | — | — | — | — | — | — | | 4-5 | 0.05 to <0.15% | Strong | 6 | — | — | 6 | — | — | — | — | 6 | — | | 6-8 | 0.15 to <0.30% | Strong | 17 | — | — | 17 | — | — | — | — | 17 | — | | 9-11 | 0.30 to <0.60% | Strong | 3,199 | — | — | 3,199 | 5 | — | — | 5 | 3,194 | 0.2 | | 12-14 | 0.60 to <2.15% | Satisfactory | 65 | 1 | — | 66 | — | — | — | — | 66 | — | | 15-19 | 2.15 to <11.35% | Satisfactory | 41 | 396 | — | 437 | — | — | — | — | 437 | — | | 20-21 | 11.35 to <100% | Higher Risk | 1 | 7 | — | 8 | — | 1 | — | 1 | 7 | 12.5 | | 22 | 100% | Credit Impaired | — | — | 216 | 216 | — | — | 25 | 25 | 191 | 11.6 | | Total | | | 3,329 | 404 | 216 | 3,949 | 5 | 1 | 25 | 31 | 3,918 | 0.8 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 196 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for corporate loans3 (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 43,318 | 122 | 3 | 43,443 | 4 | — | 2 | 6 | 43,437 | — | | 4-5 | 0.05 to <0.15% | Strong | 21,947 | 145 | — | 22,092 | 8 | — | — | 8 | 22,084 | — | | 6-8 | 0.15 to <0.30% | Strong | 11,392 | 566 | — | 11,958 | 8 | 2 | — | 10 | 11,948 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 15,549 | 326 | — | 15,875 | 18 | 2 | — | 20 | 15,855 | 0.1 | | 12-14 | 0.60 to <2.15% | Satisfactory | 12,017 | 2,988 | — | 15,005 | 49 | 20 | — | 69 | 14,936 | 0.5 | | 15-19 | 2.15 to <11.35% | Satisfactory | 2,854 | 2,243 | — | 5,097 | 50 | 90 | — | 140 | 4,957 | 2.7 | | 20-21 | 11.35 to <100% | Higher Risk | 117 | 1,757 | — | 1,874 | 7 | 140 | — | 147 | 1,727 | 7.8 | | 22 | 100% | Credit Impaired | — | — | 1,651 | 1,651 | — | — | 391 | 391 | 1,260 | 23.7 | | Total | | | 107,194 | 8,147 | 1,654 | 116,995 | 144 | 254 | 393 | 791 | 116,204 | 0.7 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for loans and advances at amortised cost3 (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 43,319 | 122 | 3 | 43,444 | 4 | — | 2 | 6 | 43,438 | — | | 4-5 | 0.05 to <0.15% | Strong | 22,522 | 145 | — | 22,667 | 9 | — | — | 9 | 22,658 | — | | 6-8 | 0.15 to <0.30% | Strong | 13,973 | 568 | — | 14,541 | 15 | 2 | — | 17 | 14,524 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 27,658 | 330 | — | 27,988 | 53 | 2 | — | 55 | 27,933 | 0.2 | | 12-14 | 0.60 to <2.15% | Satisfactory | 14,991 | 3,107 | — | 18,098 | 86 | 29 | — | 115 | 17,983 | 0.6 | | 15-19 | 2.15 to <11.35% | Satisfactory | 9,914 | 4,365 | — | 14,279 | 292 | 358 | — | 650 | 13,629 | 4.6 | | 20-21 | 11.35 to <100% | Higher Risk | 312 | 3,017 | — | 3,329 | 32 | 672 | — | 704 | 2,625 | 21.1 | | 22 | 100% | Credit Impaired | — | — | 3,901 | 3,901 | — | — | 1,864 | 1,864 | 2,037 | 47.8 | | Total | | | 132,689 | 11,654 | 3,904 | 148,247 | 491 | 1,063 | 1,866 | 3,420 | 144,827 | 2.3 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for retail mortgages (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 1 | — | — | 1 | — | — | — | — | 1 | — | | 4-5 | 0.05 to <0.15% | Strong | 3 | — | — | 3 | — | — | — | — | 3 | — | | 6-8 | 0.15 to <0.30% | Strong | 55 | — | — | 55 | — | — | — | — | 55 | — | | 9-11 | 0.30 to <0.60% | Strong | 5,392 | — | — | 5,392 | 7 | — | — | 7 | 5,385 | 0.1 | | 12-14 | 0.60 to <2.15% | Satisfactory | 1,803 | 78 | — | 1,881 | 4 | — | — | 4 | 1,877 | 0.2 | | 15-19 | 2.15 to <11.35% | Satisfactory | 3 | 252 | — | 255 | — | 17 | — | 17 | 238 | 6.7 | | 20-21 | 11.35 to <100% | Higher Risk | — | 59 | — | 59 | — | 11 | — | 11 | 48 | 18.6 | | 22 | 100% | Credit Impaired | — | — | 716 | 716 | — | — | 321 | 321 | 395 | 44.8 | | Total | | | 7,257 | 389 | 716 | 8,362 | 11 | 28 | 321 | 360 | 8,002 | 4.3 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 197 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for retail credit cards3 (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 10 | — | — | 10 | — | — | — | — | 10 | — | | 4-5 | 0.05 to <0.15% | Strong | 488 | — | — | 488 | 1 | — | — | 1 | 487 | 0.2 | | 6-8 | 0.15 to <0.30% | Strong | 2,394 | 2 | — | 2,396 | 7 | — | — | 7 | 2,389 | 0.3 | | 9-11 | 0.30 to <0.60% | Strong | 4,210 | 3 | — | 4,213 | 22 | — | — | 22 | 4,191 | 0.5 | | 12-14 | 0.60 to <2.15% | Satisfactory | 8,360 | 125 | — | 8,485 | 109 | 12 | — | 121 | 8,364 | 1.4 | | 15-19 | 2.15 to <11.35% | Satisfactory | 6,699 | 2,051 | — | 8,750 | 254 | 505 | — | 759 | 7,991 | 8.7 | | 20-21 | 11.35 to <100% | Higher Risk | 154 | 1,269 | — | 1,423 | 19 | 621 | — | 640 | 783 | 45.0 | | 22 | 100% | Credit Impaired | — | — | 1,522 | 1,522 | — | — | 1,226 | 1,226 | 296 | 80.6 | | Total | | | 22,315 | 3,450 | 1,522 | 27,287 | 412 | 1,138 | 1,226 | 2,776 | 24,511 | 10.2 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for retail other3 (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | — | — | — | — | — | — | — | — | — | — | | 4-5 | 0.05 to <0.15% | Strong | 3 | — | — | 3 | — | — | — | — | 3 | — | | 6-8 | 0.15 to <0.30% | Strong | 8 | — | — | 8 | — | — | — | — | 8 | — | | 9-11 | 0.30 to <0.60% | Strong | 2,684 | — | — | 2,684 | 8 | — | — | 8 | 2,676 | 0.3 | | 12-14 | 0.60 to <2.15% | Satisfactory | 25 | 1 | — | 26 | — | — | — | — | 26 | — | | 15-19 | 2.15 to <11.35% | Satisfactory | 14 | 364 | — | 378 | — | 1 | — | 1 | 377 | 0.3 | | 20-21 | 11.35 to <100% | Higher Risk | — | 4 | — | 4 | — | 1 | — | 1 | 3 | 25.0 | | 22 | 100% | Credit Impaired | — | — | 308 | 308 | — | — | 35 | 35 | 273 | 11.4 | | Total | | | 2,734 | 369 | 308 | 3,411 | 8 | 2 | 35 | 45 | 3,366 | 1.3 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for corporate loans (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverag e ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 37,180 | 143 | 4 | 37,327 | — | — | 2 | 2 | 37,325 | — | | 4-5 | 0.05 to <0.15% | Strong | 21,498 | 92 | — | 21,590 | 12 | — | — | 12 | 21,578 | 0.1 | | 6-8 | 0.15 to <0.30% | Strong | 10,447 | 318 | — | 10,765 | 8 | 2 | — | 10 | 10,755 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 16,579 | 327 | — | 16,906 | 31 | 3 | — | 34 | 16,872 | 0.2 | | 12-14 | 0.60 to <2.15% | Satisfactory | 12,129 | 3,412 | — | 15,541 | 55 | 28 | — | 83 | 15,458 | 0.5 | | 15-19 | 2.15 to <11.35% | Satisfactory | 3,029 | 3,034 | — | 6,063 | 64 | 119 | — | 183 | 5,880 | 3.0 | | 20-21 | 11.35 to <100% | Higher Risk | 94 | 1,641 | — | 1,735 | 9 | 157 | — | 166 | 1,569 | 9.6 | | 22 | 100% | Credit Impaired | — | — | 1,231 | 1,231 | — | — | 346 | 346 | 885 | 28.1 | | Total | | | 100,956 | 8,967 | 1,235 | 111,158 | 179 | 309 | 348 | 836 | 110,322 | 0.8 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 198 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for loans and advances at amortised cost3 (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 37,191 | 143 | 4 | 37,338 | — | — | 2 | 2 | 37,336 | — | | 4-5 | 0.05 to <0.15% | Strong | 21,992 | 92 | — | 22,084 | 13 | — | — | 13 | 22,071 | 0.1 | | 6-8 | 0.15 to <0.30% | Strong | 12,904 | 320 | — | 13,224 | 15 | 2 | — | 17 | 13,207 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 28,865 | 330 | — | 29,195 | 68 | 3 | — | 71 | 29,124 | 0.2 | | 12-14 | 0.60 to <2.15% | Satisfactory | 22,317 | 3,616 | — | 25,933 | 168 | 40 | — | 208 | 25,725 | 0.8 | | 15-19 | 2.15 to <11.35% | Satisfactory | 9,745 | 5,701 | — | 15,446 | 318 | 642 | — | 960 | 14,486 | 6.2 | | 20-21 | 11.35 to <100% | Higher Risk | 248 | 2,973 | — | 3,221 | 28 | 790 | — | 818 | 2,403 | 25.4 | | 22 | 100% | Credit Impaired | — | — | 3,777 | 3,777 | — | — | 1,928 | 1,928 | 1,849 | 51.0 | | Total | | | 133,262 | 13,175 | 3,781 | 150,218 | 610 | 1,477 | 1,930 | 4,017 | 146,201 | 2.7 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for contingent liabilities1 (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 9,351 | 310 | — | 9,661 | 1 | 1 | — | 2 | 9,659 | — | | 4-5 | 0.05 to <0.15% | Strong | 4,934 | — | — | 4,934 | 2 | — | — | 2 | 4,932 | — | | 6-8 | 0.15 to <0.30% | Strong | 2,717 | 391 | — | 3,108 | 2 | — | — | 2 | 3,106 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 2,177 | 119 | — | 2,296 | 4 | — | — | 4 | 2,292 | 0.2 | | 12-14 | 0.60 to <2.15% | Satisfactory | 2,309 | 563 | — | 2,872 | 12 | 7 | — | 19 | 2,853 | 0.7 | | 15-19 | 2.15 to <11.35% | Satisfactory | 730 | 937 | — | 1,667 | 21 | 36 | — | 57 | 1,610 | 3.4 | | 20-21 | 11.35 to <100% | Higher Risk | 29 | 515 | — | 544 | — | 82 | — | 82 | 462 | 15.1 | | 22 | 100% | Credit Impaired | — | — | 495 | 495 | — | — | 16 | 16 | 479 | 3.2 | | Total | | | 22,247 | 2,835 | 495 | 25,577 | 42 | 126 | 16 | 184 | 25,393 | 0.7 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for contingent liabilities1 (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 9,071 | 79 | — | 9,150 | 1 | — | — | 1 | 9,149 | — | | 4-5 | 0.05 to <0.15% | Strong | 3,337 | 3 | — | 3,340 | 2 | — | — | 2 | 3,338 | 0.1 | | 6-8 | 0.15 to <0.30% | Strong | 3,211 | 157 | — | 3,368 | 3 | 1 | — | 4 | 3,364 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 2,848 | 285 | — | 3,133 | 3 | 4 | — | 7 | 3,126 | 0.2 | | 12-14 | 0.60 to <2.15% | Satisfactory | 2,388 | 701 | — | 3,089 | 8 | 6 | — | 14 | 3,075 | 0.5 | | 15-19 | 2.15 to <11.35% | Satisfactory | 1,501 | 1,027 | — | 2,528 | 27 | 41 | — | 68 | 2,460 | 2.7 | | 20-21 | 11.35 to <100% | Higher Risk | 17 | 355 | — | 372 | 1 | 61 | — | 62 | 310 | 16.7 | | 22 | 100% | Credit Impaired | — | — | 583 | 583 | — | — | 22 | 22 | 561 | 3.8 | | Total | | | 22,373 | 2,607 | 583 | 25,563 | 45 | 113 | 22 | 180 | 25,383 | 0.7 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 199 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for loan commitments1,2 (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to < 0.05% | Strong | 86,137 | 320 | — | 86,457 | 3 | — | — | 3 | 86,454 | — | | 4-5 | 0.05 to < 0.15% | Strong | 68,407 | 93 | — | 68,500 | 8 | — | — | 8 | 68,492 | — | | 6-8 | 0.15 to < 0.30% | Strong | 56,893 | 951 | — | 57,844 | 12 | 1 | — | 13 | 57,831 | — | | 9-11 | 0.30 to < 0.60% | Strong | 54,576 | 736 | — | 55,312 | 19 | 1 | — | 20 | 55,292 | — | | 12-14 | 0.60 to < 2.15% | Satisfactory | 45,417 | 2,710 | — | 48,127 | 31 | 11 | — | 42 | 48,085 | 0.1 | | 15-19 | 2.15 to < 11.35% | Satisfactory | 11,878 | 5,779 | — | 17,657 | 39 | 45 | — | 84 | 17,573 | 0.5 | | 20-21 | 11.35 to < 100% | Higher Risk | 643 | 3,406 | — | 4,049 | 1 | 56 | — | 57 | 3,992 | 1.4 | | 22 | 100% | Credit Impaired | — | — | 481 | 481 | — | — | 9 | 9 | 472 | 1.9 | | Total | | | 323,951 | 13,995 | 481 | 338,427 | 113 | 114 | 9 | 236 | 338,191 | 0.1 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for loan commitments1,2 (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to < 0.05% | Strong | 70,899 | 692 | — | 71,591 | 2 | — | — | 2 | 71,589 | — | | 4-5 | 0.05 to < 0.15% | Strong | 63,058 | 277 | — | 63,335 | 6 | 1 | — | 7 | 63,328 | — | | 6-8 | 0.15 to < 0.30% | Strong | 55,992 | 2,524 | — | 58,516 | 12 | 1 | — | 13 | 58,503 | — | | 9-11 | 0.30 to < 0.60% | Strong | 54,685 | 1,242 | — | 55,927 | 21 | 1 | — | 22 | 55,905 | — | | 12-14 | 0.60 to < 2.15% | Satisfactory | 45,196 | 3,647 | — | 48,843 | 36 | 14 | — | 50 | 48,793 | 0.1 | | 15-19 | 2.15 to < 11.35% | Satisfactory | 12,758 | 7,334 | — | 20,092 | 43 | 61 | — | 104 | 19,988 | 0.5 | | 20-21 | 11.35 to < 100% | Higher Risk | 574 | 3,595 | — | 4,169 | 2 | 72 | — | 74 | 4,095 | 1.8 | | 22 | 100% | Credit Impaired | — | — | 259 | 259 | — | — | 21 | 21 | 238 | 8.1 | | Total | | | 303,162 | 19,311 | 259 | 322,732 | 122 | 150 | 21 | 293 | 322,439 | 0.1 | Notes 1Excludes loan commitments and financial guarantees carried at fair value of £16.3bn (2023 : 16.5bn) for Barclays Bank Group. 2Reported loan commitments also include exposures relating to financial assets classified as assets held for sale. 3Exposures reported within Retail credit cards, Retail other and Corporate loans does not include the German Consumer Finance business and a co-branded card portfolio (2024) which is classified as assets held for sale. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 200 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for retail mortgages (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | — | — | — | — | — | — | — | — | — | — | | 4-5 | 0.05 to <0.15% | Strong | — | — | — | — | — | — | — | — | — | — | | 6-8 | 0.15 to <0.30% | Strong | — | — | — | — | — | — | — | — | — | — | | 9-11 | 0.30 to <0.60% | Strong | 4,129 | — | — | 4,129 | 8 | — | — | 8 | 4,121 | 0.2 | | 12-14 | 0.60 to <2.15% | Satisfactory | — | — | — | — | — | — | — | — | — | — | | 15-19 | 2.15 to <11.35% | Satisfactory | — | 136 | — | 136 | — | — | — | — | 136 | — | | 20-21 | 11.35 to <100% | Higher Risk | — | — | — | — | — | — | — | — | — | — | | 22 | 100% | Credit Impaired | — | — | 249 | 249 | — | — | 25 | 25 | 224 | 10.0 | | Total | | | 4,129 | 136 | 249 | 4,514 | 8 | — | 25 | 33 | 4,481 | 0.7 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for retail other (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | — | — | — | — | — | — | — | — | — | — | | 4-5 | 0.05 to <0.15% | Strong | — | — | — | — | — | — | — | — | — | — | | 6-8 | 0.15 to <0.30% | Strong | — | — | — | — | — | — | — | — | — | — | | 9-11 | 0.30 to <0.60% | Strong | 2,381 | — | — | 2,381 | 3 | — | — | 3 | 2,378 | 0.1 | | 12-14 | 0.60 to <2.15% | Satisfactory | 6 | — | — | 6 | — | — | — | — | 6 | — | | 15-19 | 2.15 to <11.35% | Satisfactory | — | 354 | — | 354 | — | — | — | — | 354 | — | | 20-21 | 11.35 to <100% | Higher Risk | — | — | — | — | — | — | — | — | — | — | | 22 | 100% | Credit Impaired | — | — | 175 | 175 | — | — | 13 | 13 | 162 | 7.4 | | Total | | | 2,387 | 354 | 175 | 2,916 | 3 | — | 13 | 16 | 2,900 | 0.5 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for corporate loans (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 152,705 | 122 | 2 | 152,829 | 11 | — | 2 | 13 | 152,816 | — | | 4-5 | 0.05 to <0.15% | Strong | 19,462 | 145 | — | 19,607 | 7 | — | — | 7 | 19,600 | — | | 6-8 | 0.15 to <0.30% | Strong | 10,236 | 543 | — | 10,779 | 7 | 1 | — | 8 | 10,771 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 13,206 | 298 | — | 13,504 | 16 | 2 | — | 18 | 13,486 | 0.1 | | 12-14 | 0.60 to <2.15% | Satisfactory | 11,257 | 2,912 | — | 14,169 | 41 | 20 | — | 61 | 14,108 | 0.4 | | 15-19 | 2.15 to <11.35% | Satisfactory | 2,383 | 2,053 | — | 4,436 | 42 | 78 | — | 120 | 4,316 | 2.7 | | 20-21 | 11.35 to <100% | Higher Risk | 113 | 1,565 | — | 1,678 | 5 | 118 | — | 123 | 1,555 | 7.3 | | 22 | 100% | Credit Impaired | — | — | 1,369 | 1,369 | — | — | 350 | 350 | 1,019 | 25.6 | | Total | | | 209,362 | 7,638 | 1,371 | 218,371 | 129 | 219 | 352 | 700 | 217,671 | 0.3 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 201 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for loans and advances at amortised cost (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 152,705 | 122 | 2 | 152,829 | 11 | — | 2 | 13 | 152,816 | — | | 4-5 | 0.05 to <0.15% | Strong | 19,462 | 145 | — | 19,607 | 7 | — | — | 7 | 19,600 | — | | 6-8 | 0.15 to <0.30% | Strong | 10,236 | 543 | — | 10,779 | 7 | 1 | — | 8 | 10,771 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 19,716 | 298 | — | 20,014 | 27 | 2 | — | 29 | 19,985 | 0.1 | | 12-14 | 0.60 to <2.15% | Satisfactory | 11,263 | 2,912 | — | 14,175 | 41 | 20 | — | 61 | 14,114 | 0.4 | | 15-19 | 2.15 to <11.35% | Satisfactory | 2,383 | 2,543 | — | 4,926 | 42 | 78 | — | 120 | 4,806 | 2.4 | | 20-21 | 11.35 to <100% | Higher Risk | 113 | 1,565 | — | 1,678 | 5 | 118 | — | 123 | 1,555 | 7.3 | | 22 | 100% | Credit Impaired | — | — | 1,793 | 1,793 | — | — | 388 | 388 | 1,405 | 21.6 | | Total | | | 215,878 | 8,128 | 1,795 | 225,801 | 140 | 219 | 390 | 749 | 225,052 | 0.3 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for retail mortgages (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | — | — | — | — | — | — | — | — | — | — | | 4-5 | 0.05 to <0.15% | Strong | — | — | — | — | — | — | — | — | — | — | | 6-8 | 0.15 to <0.30% | Strong | — | — | — | — | — | — | — | — | — | — | | 9-11 | 0.30 to <0.60% | Strong | 4,150 | — | — | 4,150 | 5 | — | — | 5 | 4,145 | 0.1 | | 12-14 | 0.60 to <2.15% | Satisfactory | — | — | — | — | — | — | — | — | — | — | | 15-19 | 2.15 to <11.35% | Satisfactory | — | 52 | — | 52 | — | — | — | — | 52 | — | | 20-21 | 11.35 to <100% | Higher Risk | — | — | — | — | — | — | — | — | — | — | | 22 | 100% | Credit Impaired | — | — | 572 | 572 | — | — | 294 | 294 | 278 | 51.4 | | Total | | | 4,150 | 52 | 572 | 4,774 | 5 | — | 294 | 299 | 4,475 | 6.3 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for retail other (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | — | — | — | — | — | — | — | — | — | — | | 4-5 | 0.05 to <0.15% | Strong | — | — | — | — | — | — | — | — | — | — | | 6-8 | 0.15 to <0.30% | Strong | — | — | — | — | — | — | — | — | — | — | | 9-11 | 0.30 to <0.60% | Strong | 1,908 | — | — | 1,908 | 6 | — | — | 6 | 1,902 | 0.3 | | 12-14 | 0.60 to <2.15% | Satisfactory | 5 | — | — | 5 | — | — | — | — | 5 | — | | 15-19 | 2.15 to <11.35% | Satisfactory | — | 283 | — | 283 | — | 1 | — | 1 | 282 | 0.4 | | 20-21 | 11.35 to <100% | Higher Risk | — | — | — | — | — | — | — | — | — | — | | 22 | 100% | Credit Impaired | — | — | 249 | 249 | — | — | 18 | 18 | 231 | 7.2 | | Total | | | 1,913 | 283 | 249 | 2,445 | 6 | 1 | 18 | 25 | 2,420 | 1.0 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 202 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for corporate loans (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 170,498 | 142 | 2 | 170,642 | 7 | — | 2 | 9 | 170,633 | — | | 4-5 | 0.05 to <0.15% | Strong | 19,035 | 26 | — | 19,061 | 12 | — | — | 12 | 19,049 | 0.1 | | 6-8 | 0.15 to <0.30% | Strong | 9,458 | 298 | — | 9,756 | 6 | 1 | — | 7 | 9,749 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 14,127 | 313 | — | 14,440 | 29 | 3 | — | 32 | 14,408 | 0.2 | | 12-14 | 0.60 to <2.15% | Satisfactory | 11,248 | 3,072 | — | 14,320 | 46 | 23 | — | 69 | 14,251 | 0.5 | | 15-19 | 2.15 to <11.35% | Satisfactory | 2,725 | 2,698 | — | 5,423 | 58 | 96 | — | 154 | 5,269 | 2.8 | | 20-21 | 11.35 to <100% | Higher Risk | 86 | 1,546 | — | 1,632 | 9 | 141 | — | 150 | 1,482 | 9.2 | | 22 | 100% | Credit Impaired | — | — | 999 | 999 | — | — | 296 | 296 | 703 | 29.6 | | Total | | | 227,177 | 8,095 | 1,001 | 236,273 | 167 | 264 | 298 | 729 | 235,544 | 0.3 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for loans and advances at amortised cost (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 170,498 | 142 | 2 | 170,642 | 7 | — | 2 | 9 | 170,633 | — | | 4-5 | 0.05 to <0.15% | Strong | 19,035 | 26 | — | 19,061 | 12 | — | — | 12 | 19,049 | 0.1 | | 6-8 | 0.15 to <0.30% | Strong | 9,458 | 298 | — | 9,756 | 6 | 1 | — | 7 | 9,749 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 20,185 | 313 | — | 20,498 | 40 | 3 | — | 43 | 20,455 | 0.2 | | 12-14 | 0.60 to <2.15% | Satisfactory | 11,253 | 3,072 | — | 14,325 | 46 | 23 | — | 69 | 14,256 | 0.5 | | 15-19 | 2.15 to <11.35% | Satisfactory | 2,725 | 3,033 | — | 5,758 | 58 | 97 | — | 155 | 5,603 | 2.7 | | 20-21 | 11.35 to <100% | Higher Risk | 86 | 1,546 | — | 1,632 | 9 | 141 | — | 150 | 1,482 | 9.2 | | 22 | 100% | Credit Impaired | — | — | 1,820 | 1,820 | — | — | 608 | 608 | 1,212 | 33.4 | | Total | | | 233,240 | 8,430 | 1,822 | 243,492 | 178 | 265 | 610 | 1,053 | 242,439 | 0.4 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for contingent liabilities1 (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 34,924 | 308 | — | 35,232 | 1 | 1 | — | 2 | 35,230 | — | | 4-5 | 0.05 to <0.15% | Strong | 4,034 | — | — | 4,034 | 2 | — | — | 2 | 4,032 | — | | 6-8 | 0.15 to <0.30% | Strong | 1,822 | 14 | — | 1,836 | 2 | — | — | 2 | 1,834 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 1,785 | 112 | — | 1,897 | 2 | 1 | — | 3 | 1,894 | 0.2 | | 12-14 | 0.60 to <2.15% | Satisfactory | 2,015 | 262 | — | 2,277 | 11 | 6 | — | 17 | 2,260 | 0.7 | | 15-19 | 2.15 to <11.35% | Satisfactory | 648 | 761 | — | 1,409 | 20 | 30 | — | 50 | 1,359 | 3.5 | | 20-21 | 11.35 to <100% | Higher Risk | 29 | 481 | — | 510 | — | 76 | — | 76 | 434 | 14.9 | | 22 | 100% | Credit Impaired | — | — | 418 | 418 | — | — | 14 | 14 | 404 | 3.3 | | Total | | | 45,257 | 1,938 | 418 | 47,613 | 38 | 114 | 14 | 166 | 47,447 | 0.3 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 203 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for contingent liabilities1 (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 55,024 | 79 | — | 55,103 | 3 | — | — | 3 | 55,100 | — | | 4-5 | 0.05 to <0.15% | Strong | 2,419 | 1 | — | 2,420 | 1 | — | — | 1 | 2,419 | — | | 6-8 | 0.15 to <0.30% | Strong | 2,271 | 139 | — | 2,410 | 2 | 1 | — | 3 | 2,407 | 0.1 | | 9-11 | 0.30 to <0.60% | Strong | 2,549 | 164 | — | 2,713 | 3 | 4 | — | 7 | 2,706 | 0.3 | | 12-14 | 0.60 to <2.15% | Satisfactory | 1,910 | 370 | — | 2,280 | 8 | 5 | — | 13 | 2,267 | 0.6 | | 15-19 | 2.15 to <11.35% | Satisfactory | 1,213 | 676 | — | 1,889 | 26 | 33 | — | 59 | 1,830 | 3.1 | | 20-21 | 11.35 to <100% | Higher Risk | 14 | 314 | — | 328 | 1 | 58 | — | 59 | 269 | 18.0 | | 22 | 100% | Credit Impaired | — | — | 546 | 546 | — | — | 22 | 22 | 524 | 4.0 | | Total | | | 65,400 | 1,743 | 546 | 67,689 | 44 | 101 | 22 | 167 | 67,522 | 0.2 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for loan commitments1 (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 87,533 | 319 | — | 87,852 | 2 | — | — | 2 | 87,850 | — | | 4-5 | 0.05 to <0.15% | Strong | 46,983 | 82 | — | 47,065 | 5 | — | — | 5 | 47,060 | — | | 6-8 | 0.15 to <0.30% | Strong | 20,828 | 899 | — | 21,727 | 5 | 1 | — | 6 | 21,721 | — | | 9-11 | 0.30 to <0.60% | Strong | 14,417 | 631 | — | 15,048 | 9 | 1 | — | 10 | 15,038 | 0.1 | | 12-14 | 0.60 to <2.15% | Satisfactory | 19,082 | 2,230 | — | 21,312 | 18 | 7 | — | 25 | 21,287 | 0.1 | | 15-19 | 2.15 to <11.35% | Satisfactory | 6,303 | 4,073 | — | 10,376 | 27 | 31 | — | 58 | 10,318 | 0.6 | | 20-21 | 11.35 to <100% | Higher Risk | 521 | 2,804 | — | 3,325 | 1 | 49 | — | 50 | 3,275 | 1.5 | | 22 | 100% | Credit Impaired | — | — | 453 | 453 | — | — | 9 | 9 | 444 | 2.0 | | Total | | | 195,667 | 11,038 | 453 | 207,158 | 67 | 89 | 9 | 165 | 206,993 | 0.1 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade for loan commitments1 (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank PLC | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 70,355 | 690 | — | 71,045 | 2 | — | — | 2 | 71,043 | — | | 4-5 | 0.05 to <0.15% | Strong | 42,697 | 241 | — | 42,938 | 3 | — | — | 3 | 42,935 | — | | 6-8 | 0.15 to <0.30% | Strong | 20,070 | 2,438 | — | 22,508 | 4 | 1 | — | 5 | 22,503 | — | | 9-11 | 0.30 to <0.60% | Strong | 16,558 | 1,020 | — | 17,578 | 10 | 1 | — | 11 | 17,567 | 0.1 | | 12-14 | 0.60 to <2.15% | Satisfactory | 19,334 | 2,965 | — | 22,299 | 18 | 7 | — | 25 | 22,274 | 0.1 | | 15-19 | 2.15 to <11.35% | Satisfactory | 7,605 | 5,598 | — | 13,203 | 25 | 46 | — | 71 | 13,132 | 0.5 | | 20-21 | 11.35 to <100% | Higher Risk | 482 | 3,236 | — | 3,718 | 1 | 45 | — | 46 | 3,672 | 1.2 | | 22 | 100% | Credit Impaired | — | — | 213 | 213 | — | — | 22 | 22 | 191 | 10.3 | | Total | | | 177,101 | 16,188 | 213 | 193,502 | 63 | 100 | 22 | 185 | 193,317 | 0.1 | Note 1Excludes loan commitments and financial guarantees carried at fair value of £15.9 bn (2023: £ 14.5bn) for Barclays Bank PLC. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 204 | ## Risk review ## Risk performance #### Credit risk #### Analysis of specific portfolios and asset types Retail Credit Cards and Retail Other The principal portfolios listed below accounted for 85% (2023: 89%) of Barclays Bank Group’s total retail credit cards and retail other. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Principal portfolios | | | | | | | | Gross Exposure | 30 Day Arrears, excluding recoveries book | 90 Day Arrears, excluding recoveries book | Annualised Gross Write-off Rates | Annualised Net Write-off Rates | | | £m | % | % | % | % | | As at 31 December 2024 | | | | | | | US cards1 | 28,548 | 3.0 | 1.6 | 3.8 | 3.7 | | As at 31 December 2023 | | | | | | | US cards | 27,286 | 2.9 | 1.5 | 2.3 | 2.3 | Note: 1  Includes assets classified as held for sale (see table below) | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Portfolios - held for sale | | | | | | | | Gross Exposure | 30 Day Arrears, excluding recoveries book | 90 Day Arrears, excluding recoveries book | Annualised Gross Write-off Rates | Annualised Net Write-off Rates | | | £m | % | % | % | % | | As at 31 December 2024 | | | | | | | Barclays US Consumer Bank | 6,241 | 1.3 | 0.5 | 2.0 | 2.0 | | Head Office - German consumer finance business | 3,733 | 1.8 | 0.9 | 1.3 | 1.2 | | As at 31 December 2023 | | | | | | | Head Office - German consumer finance business | 4,094 | 1.7 | 0.8 | 1.0 | 1.0 | US cards: 30 and 90 day arrears rates increased to 3.0% (2023: 2.9%) and 1.6% (2023: 1.5%) respectively due to higher flow into and through delinquency. The increase in both gross and net write-off rates reflected the overall delinquency trends through to charge-off lagged by the charge off to write-off period of 12 months as well as a sale in the year. German consumer finance business: Gross exposure decreased 8.8% as loan originations were limited to existing customers following the discontinuation of Open Market loan originations in 2023. Cards origination strategy moved to a more profitable revolver customer segment in 2024 resulting in expected increases in 30 and 90 day arrears and write-offs rates. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 205 | ## Risk review ## Risk performance #### Credit risk #### Assets held for sale This section presents portfolios classified as assets held for sale. These include a co-branded card portfolio and the German consumer finance business. For further details on assets held for sale, see Note 39 to the financial statements. Loans and advances by product | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Loans and advances to customers classified as assets held for sale (audited) | | | | | | | | | | | | | | | Stage 1 | | | Stage 2 | | | Stage 3 | | | Total | | | | | Gross | ECL | Coverage | Gross | ECL | Coverage | Gross | ECL | Coverage | Gross | ECL | Coverage | | As at 31 December 2024 | £m | £m | % | £m | £m | % | £m | £m | % | £m | £m | % | | Retail credit cards - US | 5,495 | 64 | 1.2 | 689 | 161 | 23.4 | 57 | 46 | 80.7 | 6,241 | 271 | 4.3 | | Retail credit cards - Germany | 1,908 | 18 | 0.9 | 307 | 29 | 9.4 | 93 | 69 | 74.2 | 2,308 | 116 | 5.0 | | Retail other - Germany | 1,134 | 16 | 1.4 | 220 | 33 | 15.0 | 71 | 48 | 67.6 | 1,425 | 97 | 6.8 | | Corporate loans - US | 49 | 1 | 2.0 | 9 | 3 | 33.3 | 1 | 1 | 100.0 | 59 | 5 | 8.5 | | Total | 8,586 | 99 | 1.2 | 1,225 | 226 | 18.4 | 222 | 164 | 73.9 | 10,033 | 489 | 4.9 | | | | | | | | | | | | | | | | As at 31 December 2023 | | | | | | | | | | | | | | Retail credit cards - US | — | — | — | — | — | — | — | — | — | — | — | — | | Retail credit cards - Germany | 1,621 | 15 | 0.9 | 445 | 41 | 9.2 | 92 | 68 | 73.9 | 2,158 | 124 | 5.7 | | Retail other - Germany | 1,561 | 20 | 1.3 | 288 | 32 | 11.1 | 84 | 60 | 71.4 | 1,933 | 112 | 5.8 | | Corporate loans - US | — | — | — | — | — | — | — | — | — | — | — | — | | Total | 3,182 | 35 | 1.1 | 733 | 73 | 10.0 | 176 | 128 | 72.7 | 4,091 | 236 | 5.8 | #### Stage 2 decomposition | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Loans and advances at amortised cost classified as held for sale | | | | | | | | | | | | Gross Exposure | | | | | Impairment Allowance | | | | | Barclays Bank Group | Quantitative test | Qualitative test | 30 days past due backstop | Total Stage 2 | | Quantitative test | Qualitative test | 30 days past due backstop | Total Stage 2 | | As at 31 December 2024 | £m | £m | £m | £m | | £m | £m | £m | £m | | Retail credit cards - US | 564 | 123 | 2 | 689 | | 130 | 30 | 1 | 161 | | Retail credit cards - Germany | 209 | 96 | 2 | 307 | | 19 | 9 | 1 | 29 | | Retail other - Germany | 207 | 11 | 2 | 220 | | 31 | 1 | 1 | 33 | | Corporate loans - US | 7 | 2 | — | 9 | | 2 | 1 | — | 3 | | Total Stage 2 | 987 | 232 | 6 | 1,225 | | 182 | 41 | 3 | 226 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | As at 31 December 2023 | £m | £m | £m | £m | | £m | £m | £m | £m | | Retail credit cards - US | — | — | — | — | | — | — | — | — | | Retail credit cards - Germany | 387 | 56 | 2 | 445 | | 34 | 6 | 1 | 41 | | Retail other - Germany | 265 | 20 | 3 | 288 | | 29 | 2 | 1 | 32 | | Corporate loans - US | — | — | — | — | | — | — | — | — | | Total Stage 2 | 652 | 76 | 5 | 733 | | 63 | 8 | 2 | 73 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 206 | ## Risk review ## Risk performance #### Credit risk #### Stage 3 decomposition | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Loans and advances at amortised cost | | | | | | | | | | Gross Exposure | | | | Impairment Allowance | | | | Barclays Bank Group | Exposures not charged-off | Exposures individually assessed or in recovery book | Total Stage 3 | | Exposures not charged-off | Exposures individually assessed or in recovery book | Total Stage 3 | | As at 31 December 2024 | £m | £m | £m | | £m | £m | £m | | Retail credit cards - US | 57 | — | 57 | | 46 | — | 46 | | Retail credit cards - Germany | 68 | 25 | 93 | | 49 | 20 | 69 | | Retail other - Germany | 51 | 20 | 71 | | 32 | 16 | 48 | | Corporate loans - US | 1 | — | 1 | | 1 | — | 1 | | Total Stage 3 | 177 | 45 | 222 | | 128 | 36 | 164 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | As at 31 December 2023 | £m | £m | £m | | £m | £m | £m | | Retail credit cards - US | — | — | — | | — | — | — | | Retail credit cards - Germany | 65 | 27 | 92 | | 45 | 23 | 68 | | Retail other - Germany | 61 | 23 | 84 | | 38 | 22 | 60 | | Corporate loans - US | — | — | — | | — | — | — | | Total Stage 3 | 126 | 50 | 176 | | 83 | 45 | 128 | Management adjustments to models for impairment (audited) | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Management adjustments to models for impairment allowance presented by product (audited) | | | | | | | | Barclays Bank Group | Impairment allowance pre management adjustments | Economic uncertainty adjustments (a) | Other adjustments (b) | Management adjustments (a+b) | Total impairment allowance | Proportion of management adjustments to total impairment allowance | | | | | | | | | | As at 31 December 2024 | £m | £m | £m | £m | £m | % | | Retail credit cards - US | 277 | — | — | — | 277 | — | | Retail credit cards - Germany1 | 101 | — | 16 | 16 | 117 | 13.7 | | Retail other - Germany1 | 80 | — | 17 | 17 | 97 | 17.5 | | Corporate loans - US | 5 | — | — | — | 5 | — | | Total | 463 | — | 33 | 33 | 496 | 6.7 | | As at 31 December 2023 | £m | £m | £m | £m | £m | % | | Retail credit cards - US | — | — | — | — | — | — | | Retail credit cards - Germany1 | 111 | — | 14 | 14 | 125 | 11.2 | | Retail other - Germany1 | 96 | — | 17 | 17 | 113 | 15.0 | | Corporate loans - US | — | — | — | — | — | — | | Total | 207 | — | 31 | 31 | 238 | 13.0 | Note: 1. Management adjustments of £33m (2023: £31m) include an adjustment for definition of default under the Capital Requirements Regulation (CRR) and an adjustment for recalibration of LGD to reflect revised recovery expectations partially offset by adjustments for model monitoring. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 207 | ## Risk review ## Risk performance #### Credit risk #### Credit exposures by internal PD grade | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade classified as assets held for sale for Retail credit cards - US (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | — | — | — | — | — | — | — | — | — | — | | 4-5 | 0.05 to <0.15% | Strong | — | — | — | — | — | — | — | — | — | — | | 6-8 | 0.15 to <0.30% | Strong | — | — | — | — | — | — | — | — | — | — | | 9-11 | 0.30 to <0.60% | Strong | — | — | — | — | — | — | — | — | — | — | | 12-14 | 0.60 to <2.15% | Satisfactory | 5,495 | — | — | 5,495 | 64 | — | — | 64 | 5,431 | 1.2 | | 15-19 | 2.15 to <11.35% | Satisfactory | — | 689 | — | 689 | — | 161 | — | 161 | 528 | 23.4 | | 20-21 | 11.35 to <100% | Higher Risk | — | — | — | — | — | — | — | — | — | — | | 22 | 100% | Credit Impaired | — | — | 57 | 57 | — | — | 46 | 46 | 11 | 80.7 | | Total | | | 5,495 | 689 | 57 | 6,241 | 64 | 161 | 46 | 271 | 5,970 | 4.3 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade classified as assets held for sale for Retail credit cards - Germany (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 62 | — | — | 62 | — | — | — | — | 62 | — | | 4-5 | 0.05 to <0.15% | Strong | 289 | — | — | 289 | 1 | — | — | 1 | 288 | 0.3 | | 6-8 | 0.15 to <0.30% | Strong | 152 | — | — | 152 | 1 | — | — | 1 | 151 | 0.7 | | 9-11 | 0.30 to <0.60% | Strong | 250 | — | — | 250 | 1 | — | — | 1 | 249 | 0.4 | | 12-14 | 0.60 to <2.15% | Satisfactory | 928 | 5 | — | 933 | 9 | — | — | 9 | 924 | 1.0 | | 15-19 | 2.15 to <11.35% | Satisfactory | 227 | 229 | — | 456 | 6 | 15 | — | 21 | 435 | 4.6 | | 20-21 | 11.35 to <100% | Higher Risk | — | 73 | — | 73 | — | 14 | — | 14 | 59 | 19.2 | | 22 | 100% | Credit Impaired | — | — | 93 | 93 | — | — | 69 | 69 | 24 | 74.2 | | Total | | | 1,908 | 307 | 93 | 2,308 | 18 | 29 | 69 | 116 | 2,192 | 5.0 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade classified as assets held for sale for Retail other - Germany (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 1 | — | — | 1 | — | — | — | — | 1 | — | | 4-5 | 0.05 to <0.15% | Strong | 25 | — | — | 25 | — | — | — | — | 25 | — | | 6-8 | 0.15 to <0.30% | Strong | 110 | — | — | 110 | — | — | — | — | 110 | — | | 9-11 | 0.30 to <0.60% | Strong | 294 | — | — | 294 | 1 | — | — | 1 | 293 | 0.3 | | 12-14 | 0.60 to <2.15% | Satisfactory | 534 | 17 | — | 551 | 6 | 4 | — | 10 | 541 | 1.8 | | 15-19 | 2.15 to <11.35% | Satisfactory | 170 | 182 | — | 352 | 9 | 22 | — | 31 | 321 | 8.8 | | 20-21 | 11.35 to <100% | Higher Risk | — | 21 | — | 21 | — | 7 | — | 7 | 14 | 33.3 | | 22 | 100% | Credit Impaired | — | — | 71 | 71 | — | — | 48 | 48 | 23 | 67.6 | | Total | | | 1,134 | 220 | 71 | 1,425 | 16 | 33 | 48 | 97 | 1,328 | 6.8 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 208 | ## Risk review ## Risk performance #### Credit risk | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade classified as assets held for sale for Corporate loans - US (audited) | | | | | | | | | | | | | | As at 31 December 2024 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | — | — | — | — | — | — | — | — | — | — | | 4-5 | 0.05 to <0.15% | Strong | — | — | — | — | — | — | — | — | — | — | | 6-8 | 0.15 to <0.30% | Strong | — | — | — | — | — | — | — | — | — | — | | 9-11 | 0.30 to <0.60% | Strong | — | — | — | — | — | — | — | — | — | — | | 12-14 | 0.60 to <2.15% | Satisfactory | 49 | — | — | 49 | 1 | — | — | 1 | 48 | 2.0 | | 15-19 | 2.15 to <11.35% | Satisfactory | — | 9 | — | 9 | — | 3 | — | 3 | 6 | 33.3 | | 20-21 | 11.35 to <100% | Higher Risk | — | — | — | — | — | — | — | — | — | — | | 22 | 100% | Credit Impaired | — | — | 1 | 1 | — | — | 1 | 1 | — | 100.0 | | Total | | | 49 | 9 | 1 | 59 | 1 | 3 | 1 | 5 | 54 | 8.5 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade classified as assets held for sale for Retail credit cards - Germany (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | 52 | — | — | 52 | — | — | — | — | 52 | — | | 4-5 | 0.05 to <0.15% | Strong | 232 | — | — | 232 | — | — | — | — | 232 | — | | 6-8 | 0.15 to <0.30% | Strong | 148 | — | — | 148 | — | — | — | — | 148 | — | | 9-11 | 0.30 to <0.60% | Strong | 226 | — | — | 226 | 1 | — | — | 1 | 225 | 0.4 | | 12-14 | 0.60 to <2.15% | Satisfactory | 755 | 74 | — | 829 | 8 | 5 | — | 13 | 816 | 1.6 | | 15-19 | 2.15 to <11.35% | Satisfactory | 208 | 302 | — | 510 | 6 | 22 | — | 28 | 482 | 5.5 | | 20-21 | 11.35 to <100% | Higher Risk | — | 69 | — | 69 | — | 14 | — | 14 | 55 | 20.3 | | 22 | 100% | Credit Impaired | — | — | 92 | 92 | — | — | 68 | 68 | 24 | 73.9 | | Total | | | 1,621 | 445 | 92 | 2,158 | 15 | 41 | 68 | 124 | 2,034 | 5.7 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Credit risk profile by internal PD grade classified as assets held for sale for Retail other - Germany (audited) | | | | | | | | | | | | | | As at 31 December 2023 | | | Gross carrying amount | | | | Allowance for ECL | | | | Net exposure | Coverage ratio | | Grading | PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | | | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | | Barclays Bank Group | | | | | | | | | | | | | | 1-3 | 0.0 to <0.05% | Strong | — | — | — | — | — | — | — | — | — | — | | 4-5 | 0.05 to <0.15% | Strong | 16 | — | — | 16 | — | — | — | — | 16 | — | | 6-8 | 0.15 to <0.30% | Strong | 90 | — | — | 90 | — | — | — | — | 90 | — | | 9-11 | 0.30 to <0.60% | Strong | 348 | — | — | 348 | 1 | — | — | 1 | 347 | 0.3 | | 12-14 | 0.60 to <2.15% | Satisfactory | 791 | 18 | — | 809 | 8 | 2 | — | 10 | 799 | 1.2 | | 15-19 | 2.15 to <11.35% | Satisfactory | 316 | 240 | — | 556 | 11 | 24 | — | 35 | 521 | 6.3 | | 20-21 | 11.35 to <100% | Higher Risk | — | 30 | — | 30 | — | 6 | — | 6 | 24 | 20.0 | | 22 | 100% | Credit Impaired | — | — | 84 | 84 | — | — | 60 | 60 | 24 | 71.4 | | Total | | | 1,561 | 288 | 84 | 1,933 | 20 | 32 | 60 | 112 | 1,821 | 5.8 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 209 | ## Risk review ## Risk performance #### Market risk | | | | | --- | --- | --- | | | | | | | Summary of Contents | Page | | Outlines key measures used to summarise the market risk profile of the Barclays Bank Group such as VaR. | • [Market risk overview](#ia16d0659cd524c01ae655d82fa382c3d_274) | [210](#ia16d0659cd524c01ae655d82fa382c3d_274) | | • [Measures of market risk in the Barclays Bank Group and](#ia16d0659cd524c01ae655d82fa382c3d_277) [accounting measures](#ia16d0659cd524c01ae655d82fa382c3d_277) | [210](#ia16d0659cd524c01ae655d82fa382c3d_277) | | • [Summary of performance in the period](#ia16d0659cd524c01ae655d82fa382c3d_280) | [210](#ia16d0659cd524c01ae655d82fa382c3d_280) | | The Barclays Bank Group discloses details on management measures of market risk. Total management VaR includes all trading positions and is presented on a diversified basis by risk factor. | • [Traded market risk](#ia16d0659cd524c01ae655d82fa382c3d_283) review | [210](#ia16d0659cd524c01ae655d82fa382c3d_283) | | • [Review of management measures](#ia16d0659cd524c01ae655d82fa382c3d_286) | [210](#ia16d0659cd524c01ae655d82fa382c3d_286) | | – The daily average, maximum and minimum values of management VaR | [210](#ia16d0659cd524c01ae655d82fa382c3d_289) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 210 | ## Risk review ## Risk performance #### Market risk All disclosures in this section, pages [210](#ia16d0659cd524c01ae655d82fa382c3d_274) to [211](#i6b3b12fd3f6c4df79305d80843a92c56_727) are unaudited unless otherwise stated. #### Overview This section contains key statistics describing the market risk profile of the Barclays Bank Group: • The market risk management section on page [146](#ia16d0659cd524c01ae655d82fa382c3d_160) provides a description of management VaR. Management measures are shown below. #### Measures of market risk in the Barclays Bank Group and accounting measures Traded market risk measures such as VaR and balance sheet exposure measures have fundamental differences: • Balance sheet measures show accruals-based balances or marked to market values as at the reporting date • VaR measures also take account of current marked to market values but, in addition, hedging effects between positions are considered • Market risk measures are expressed in terms of changes in value or volatilities as opposed to static values. For these reasons, it is not possible to present direct reconciliations of traded market risk and accounting measures. #### Summary #### of performance in the period Average Management VaR decreased 38% to £26m (2023: £42m). The decrease was mainly driven by lower market volatility and credit spread levels in 2024, as inflation continued to decline and central banks continued to cut rates. #### Traded market risk review Review of management measures The following disclosures provide details of management measures of market risk. The table below shows the total management VaR on a diversified basis by risk factor. Total management VaR includes all trading positions in UKCB and ICB and the supporting Barclays Bank Group Treasury desks, measured to a confidence level of 95%. Limits are applied against each risk factor VaR as well as total management VaR, which are then cascaded further by risk managers to each business. The daily average, high and low values of management VaR | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Management VaR (95%, one day) (audited) | | | | | | | | | 2024 | | | 2023 | | | | For the year ended 31 December 2024 | Average | High | Low | Average | High | Low | | £m | £m | £m | £m | £m | £m | | Credit risk | 21 | 27 | 17 | 40 | 57 | 22 | | Interest rate risk | 15 | 25 | 6 | 15 | 25 | 9 | | Equity risk | 6 | 12 | 2 | 6 | 10 | 3 | | Basis risk | 5 | 8 | 4 | 13 | 24 | 8 | | Spread risk | 5 | 7 | 3 | 9 | 14 | 6 | | Foreign exchange risk | 4 | 9 | 2 | 4 | 9 | 1 | | Commodity risk | — | 1 | — | — | 1 | — | | Inflation risk | 4 | 5 | 2 | 7 | 11 | 2 | | Diversification effect1 | (34) | n/a | n/a | (52) | n/a | n/a | | Total management VaR | 26 | 36 | 15 | 42 | 60 | 24 | Note 1Diversification effects recognise that forecast losses from different assets or businesses are unlikely to occur concurrently, hence the expected aggregate loss is lower than the sum of the expected losses from each area. Historical correlations between losses are taken into account in making these assessments. The high and low VaR figures reported for each category did not necessarily occur on the same day as the high and low VaR reported as a whole. Consequently, a diversification effect balance for the high and low VaR figures would not be meaningful and is therefore omitted from the above table. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 211 | ## Risk review ## Risk performance #### Market risk Barclays Bank Group Management VaR (£m) | | | --- | | | | | | | | | | | | | ![722]() | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 212 | ## Risk review ## Risk performance #### Treasury and Capital risk | | | | | --- | --- | --- | | | | | | Summary of Contents | | Page | | Liquidity risk performance | | | | The risk that the firm is unable to meet its contractual or contingent obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. This section provides an overview of the Barclays Bank Group’s liquidity risk. | • [Liquidity risk overview](#ia16d0659cd524c01ae655d82fa382c3d_295) | [213](#ia16d0659cd524c01ae655d82fa382c3d_295) | | • [Liquidity regulation](#ia16d0659cd524c01ae655d82fa382c3d_295) | [213](#ia16d0659cd524c01ae655d82fa382c3d_295) | | • [Liquidity risk stress testing](#ia16d0659cd524c01ae655d82fa382c3d_298) | [213](#ia16d0659cd524c01ae655d82fa382c3d_298) | | • [Net stable funding ratio (NSFR)](#ia16d0659cd524c01ae655d82fa382c3d_298) | [213](#ia16d0659cd524c01ae655d82fa382c3d_298) | | | | | | Provides details on the contractual maturity of all financial instruments and other assets and liabilities. | • [Contractual maturity of financial assets and liabilities](#ia16d0659cd524c01ae655d82fa382c3d_301) | [215](#ia16d0659cd524c01ae655d82fa382c3d_301) | | | | | | Capital risk performance | | | | Capital risk is the risk that the firm has an insufficient level or composition of capital to support its normal business activities and to meet its regulatory capital requirements under normal operating environments or stressed conditions (both actual and as defined for internal planning or regulatory testing purposes). This also includes the risk from the firm’s pension plans. This section details Barclays Bank Group’s capital and leverage position. | • [Capital risk overview](#ia16d0659cd524c01ae655d82fa382c3d_319) | [222](#ia16d0659cd524c01ae655d82fa382c3d_319) | | – [Capital ratios](#ia16d0659cd524c01ae655d82fa382c3d_322) | [222](#ia16d0659cd524c01ae655d82fa382c3d_322) | | – [Capital resources](#ia16d0659cd524c01ae655d82fa382c3d_325) | [222](#ia16d0659cd524c01ae655d82fa382c3d_325) | | – L[everage ratio](#ia16d0659cd524c01ae655d82fa382c3d_328) | [222](#ia16d0659cd524c01ae655d82fa382c3d_328) | | | | | | | | | Barclays Bank Group discloses the two sources of foreign exchange risk that it is exposed to. | • Foreign Exchange Risk | [223](#ia16d0659cd524c01ae655d82fa382c3d_331) | | – [Transactional foreign currency exposure](#ia16d0659cd524c01ae655d82fa382c3d_334) | [223](#ia16d0659cd524c01ae655d82fa382c3d_334) | | – [Translational foreign exchange exposure](#ia16d0659cd524c01ae655d82fa382c3d_337) | [223](#ia16d0659cd524c01ae655d82fa382c3d_337) | | – [Functional currency of operations](#ia16d0659cd524c01ae655d82fa382c3d_340) | [223](#ia16d0659cd524c01ae655d82fa382c3d_340) | | | | | | A review focusing on the UK retirement fund, which represents the majority of Barclays Bank Group’s total retirement benefit obligation. | • [Pension risk review](#ia16d0659cd524c01ae655d82fa382c3d_343) | [224](#ia16d0659cd524c01ae655d82fa382c3d_343) | | – [Assets](#ia16d0659cd524c01ae655d82fa382c3d_346) | [224](#ia16d0659cd524c01ae655d82fa382c3d_346) | | – [Liabilities](#ia16d0659cd524c01ae655d82fa382c3d_349) | [224](#ia16d0659cd524c01ae655d82fa382c3d_349) | | – [Proportion of liquidity cash flows](#ia16d0659cd524c01ae655d82fa382c3d_349) | [224](#ia16d0659cd524c01ae655d82fa382c3d_349) | | – [IAS 19 position](#ia16d0659cd524c01ae655d82fa382c3d_352) | [224](#ia16d0659cd524c01ae655d82fa382c3d_352) | | – [Risk measurement](#ia16d0659cd524c01ae655d82fa382c3d_355) | [225](#ia16d0659cd524c01ae655d82fa382c3d_355) | | | | | | Interest rate risk in the banking book performance | | | | A description of the non-traded market risk framework is provided. Barclays Bank Group discloses a sensitivity analysis on pre-tax net interest income for non-trading financial assets and liabilities. The analysis is carried out by currency. Barclays Bank Group discloses the overall impact of a parallel shift in interest rates on other comprehensive income and cash flow hedges. Barclays Bank Group measures the volatility of the value of the FVOCI instruments in the liquidity pool through non-traded market risk VaR. | • [Interest rate risk in the banking book overview and](#ia16d0659cd524c01ae655d82fa382c3d_358) [summary of performance](#ia16d0659cd524c01ae655d82fa382c3d_358) | [226](#ia16d0659cd524c01ae655d82fa382c3d_358) | | • [Net interest income sensitivity](#ia16d0659cd524c01ae655d82fa382c3d_361) | [226](#ia16d0659cd524c01ae655d82fa382c3d_361) | | • [Analysis of equity sensitivity](#ia16d0659cd524c01ae655d82fa382c3d_367) | [227](#ia16d0659cd524c01ae655d82fa382c3d_367) | | • [Volatility of the FVOCI portfolio in the liquidity pool](#ia16d0659cd524c01ae655d82fa382c3d_373) | [227](#ia16d0659cd524c01ae655d82fa382c3d_373) | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 213 | ## Risk review ## Risk performance #### Treasury and Capital risk #### Liquidity risk All disclosures in this section, page s [213](#ia16d0659cd524c01ae655d82fa382c3d_295) to [221](#ie24a008f462643b3bff3c49cf3e6c4a8_14-0-1-1-2922537), are unaudited unless otherwise stated. #### Overview The efficient management of liquidity is essential to the Barclays Bank Group in order to retain the confidence of markets and maintain the sustainability of the business. The liquidity risk control framework is used to manage all liquidity risk exposures under both business-as- usual and stressed conditions. The liquidity risk framework is designed to maintain liquidity resources that are sufficient in amount, quality and funding tenor profile to support the liquidity risk appetite as expressed by the Barclays Bank PLC Board. The liquidity risk appetite is monitored against both internal and regulatory liquidity metrics. For the purpose of liquidity management, Barclays Bank PLC and its subsidiary Barclays Capital Securities Limited, a UK broker dealer entity, are monitored on a combined basis by the PRA under a Domestic Liquidity Sub-Group (Barclays Bank PLC DoLSub) arrangement. #### Liquidity regulation The bank monitors its position against both the LCR (Liquidity Coverage Ratio) and NSFR (Net Stable Funding Ratio) according to the PRA regulatory requirements which include certain Basel III standards that were retained in the UK regulatory framework from 1 January 2022 as part of the UK's withdrawal from the EU. The LCR requirement takes into account the relative stability of different sources of funding and potential incremental funding requirements in a stress. The LCR is designed to promote short-term resilience of a bank’s liquidity risk profile by holding sufficient High Quality Liquid Assets (HQLA) to survive an acute stress scenario lasting for 30 days. The NSFR has been developed to promote a sustainable and stable structure of assets and liabilities. #### Liquidity risk stress testing The Internal Liquidity Stress Test (ILST) measures the potential contractual and contingent stress outflows under a range of stress scenarios, which are then used to determine the size of the liquidity pool that is immediately available to meet anticipated outflows if a stress occurs. The scenarios include a 30 day Barclays-specific stress event, a 90 day market-wide stress event and a 30 day combined scenario consisting of both a Barclays specific and market-wide stress event. Barclays Bank PLC DolSub also runs a liquidity stress test which measures the anticipated outflows over a 12 month market-wide scenario. As at 31 December 2024 , Barclays Bank PLC DoLSub held eligible liquid assets well above 100% of net stressed outflows as measured according to its internal and regulatory requirements. The split of the liquidity pool between cash and deposits with central banks, government bonds and other eligible securities is broadly similar to the Barclays Group. The liquidity pool increased to £179bn (December 2023: £176bn), while the Average LCR increased to 157% (December 2023:151%). The liquidity pool movement was driven by changes in business funding consumption and a reduction in wholesale funding led by short-term Money Market balances . The increase in LCR is driven by a decrease in net stress outflows led by an increase in the proportion of corporate deposits treated as operational and an increase in inflows from securities lending. | | | | | --- | --- | --- | | | | | | | 2024 | 2023 | | As at 31 December | £bn | £bn | | Barclays Bank PLC DoLSub Liquidity Pool | 179 | 176 | | | % | % | | Barclays Bank PLC DoLSub Liquidity Coverage Ratio1 | 157 | 151 | Note 1Liquidity Coverage Ratio is now shown on an average basis, based on the average of the last 12 spot month end ratios. The Barclays Bank Group has direct access to US, European and Asian capital markets through its global investment banking operations and to long-term investors through its clients worldwide. Key sources of wholesale funding include money markets, certificates of deposit, commercial paper, medium term issuances (including structured notes) and securitisations. This funding capacity enables the Barclays Bank Group to maintain a stable and diversified funding base. The Barclays Bank Group also supports various central bank monetary initiatives, such as the Bank of England’s Term Funding Scheme with additional incentives for SMEs (TFSME), and the European Central Bank’s Targeted Long-Term Refinancing Operations (TLTRO). These are reported under ‘repurchase agreements and other similar secured borrowing’ on the balance sheet. In 2024, Barclays Bank Group fully repaid its entire outstanding TLTRO balance of £0.5bn. Barclays Bank Group repaid £3.6bn of its TFSME drawings reducing its outstanding balance to £3.4bn at year end. #### Net Stable Funding Ratio (NSFR) The external NSFR metric requires banks to maintain a stable funding profile taking into account both on and certain off balance sheet exposures over a medium to long term period. The ratio is defined as the Available Stable Funding (capital and certain liabilities which are defined as stable sources of funding) relative to the Required Stable Funding (a measure of assets on balance sheet and certain off balance sheet exposures which may require longer term funding). The NSFR (average of last four quarter end ratios) was 112% at December 2024, equivalent to a surplus of £39bn above the regulatory requirement and demonstrates Barclays Bank PLC’s stable balance sheet funding profile. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 214 | ## Risk review ## Risk performance #### Treasury and Capital risk | | | | | --- | --- | --- | | | | | | | 2024 | 2023 | | Net Stable Funding Ratio1 | £bn | £bn | | Total Available Stable Funding | 372 | 339 | | Total Required Stable Funding | 333 | 308 | | Surplus | 39 | 31 | | | | | | Net Stable Funding Ratio | 112% | 110% | Note 1Average represents the last four spot quarter end ratios. As part of the liquidity risk appetite, Barclays Bank PLC DoLSub establishes minimum LCR, NSFR and internal liquidity stress test limits. Barclays Bank PLC DoLSub plans to maintain its surplus to the internal and regulatory requirements at an efficient level. Risks to market funding conditions, the Barclays Bank Group’s liquidity position and funding profile are assessed continually, and actions are taken to manage the size of the liquidity pool and the funding profile as appropriate. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 215 | ## Risk review ## Risk performance #### Treasury and Capital risk #### Contractual maturity of financial assets and liabilities The table below provides detail on the contractual maturity of all financial instruments and other assets and liabilities. Derivatives (other than those designated in a hedging relationship) and trading portfolio assets and liabilities are included in the ‘not more than one month’ column at their fair value. Liquidity risk on these items is not managed on the basis of contractual maturity since these items are not held for settlement according to such maturity and will frequently be settled before contractual maturity at fair value. Derivatives designated in a hedging relationship are included according to their contractual maturity. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Contractual maturity of financial assets and liabilities (audited) | | | | | | | | | | Barclays Bank Group | Not more than one month | Over one month but not more than three months | Over three months but not more than six months | Over six months but not more than one year | Over one year but not more than three years | Over three years but not more than five years | Over five years | Total | | As at 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | £m | | Assets | | | | | | | | | | Cash and balances at central banks | 180,365 | — | — | — | — | — | — | 180,365 | | Cash collateral and settlement balances | 76,805 | 37,182 | — | — | — | — | — | 113,987 | | Debt Securities at amortised cost | 233 | 352 | 1,710 | 1,194 | 15,393 | 11,921 | 19,424 | 50,227 | | Loans and advances at amortised cost to banks and customers | 22,523 | 5,207 | 7,067 | 16,544 | 45,701 | 22,641 | 25,144 | 144,827 | | Reverse repurchase agreements and other similar secured lending | 299 | 37 | 292 | 110 | 1,675 | 980 | — | 3,393 | | Trading portfolio assets | 166,244 | — | — | — | — | — | — | 166,244 | | Financial assets at fair value through the income statement | 152,022 | 11,628 | 4,467 | 4,471 | 10,082 | 6,099 | 3,076 | 191,845 | | Derivative financial instruments | 291,580 | 19 | 333 | — | 268 | 23 | 133 | 292,356 | | Financial assets at fair value through other comprehensive income | 1,421 | 1,002 | 110 | 233 | 5,747 | 12,147 | 30,350 | 51,010 | | Assets included in disposal groups classified as held for sale | — | 3,710 | — | — | 6,144 | — | — | 9,854 | | Other financial assets | 499 | 22 | 126 | 17 | 1 | — | — | 665 | | Total financial assets | 891,991 | 59,159 | 14,105 | 22,569 | 85,011 | 53,811 | 78,127 | 1,204,773 | | Other assets | | | | | | | | 13,751 | | Total assets | | | | | | | | 1,218,524 | | Liabilities | | | | | | | | | | Deposits at amortised cost from bank and customers | 240,546 | 33,576 | 27,124 | 12,752 | 3,481 | 1,296 | 601 | 319,376 | | Cash collateral and settlement balances | 75,019 | 29,608 | — | — | — | — | — | 104,627 | | Repurchase agreements and other similar secured borrowing | 18,522 | 1,823 | 84 | 3,931 | 3,702 | 1,335 | — | 29,397 | | Debt securities in issue | 2,912 | 15,264 | 5,859 | 3,469 | 713 | 2,164 | 5,422 | 35,803 | | Subordinated liabilities | — | 818 | 75 | 80 | 11,431 | 6,444 | 23,027 | 41,875 | | Trading portfolio liabilities | 56,182 | — | — | — | — | — | — | 56,182 | | Financial liabilities designated at fair value | 156,917 | 23,502 | 16,742 | 15,331 | 28,332 | 19,087 | 19,866 | 279,777 | | Derivative financial instruments | 278,657 | 27 | 18 | — | 185 | 255 | 189 | 279,331 | | Liabilities included in disposal groups classified as held for sale | — | 3,726 | — | — | — | — | — | 3,726 | | Other financial liabilities | 4,333 | 4 | 9 | 19 | 71 | 40 | 392 | 4,868 | | Total financial liabilities | 833,088 | 108,348 | 49,911 | 35,582 | 47,915 | 30,621 | 49,497 | 1,154,962 | | Other liabilities | | | | | | | | 4,342 | | Total liabilities | | | | | | | | 1,159,304 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 216 | ## Risk review ## Risk performance #### Treasury and Capital risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Contractual maturity of financial assets and liabilities (audited) | | | | | | | | | | | | | | | | | | | | Barclays Bank Group | Not more than one month | Over one month but not more than three months | Over three months but not more than six months | Over six months but not more than one year | Over one year but not more than three years | Over three years but not more than five years | Over five years | Total | | As at 31 December 2023 | £m | £m | £m | £m | £m | £m | £m | £m | | Assets | | | | | | | | | | Cash and balances at central banks | 189,686 | — | — | — | — | — | — | 189,686 | | Cash collateral and settlement balances | 56,656 | 47,052 | — | — | — | — | — | 103,708 | | Debt securities at amortised cost | 3 | 4,781 | 300 | 3,910 | 11,033 | 8,527 | 10,492 | 39,046 | | Loans and advances at amortised cost to banks and customers | 21,083 | 5,462 | 8,269 | 15,124 | 42,178 | 26,186 | 27,899 | 146,201 | | Reverse repurchase agreements and other similar secured lending | 204 | 1 | — | 34 | 862 | — | 2 | 1,103 | | Trading portfolio assets | 174,566 | — | — | — | — | — | — | 174,566 | | Financial assets at fair value through the income statement | 156,958 | 17,758 | 6,213 | 5,900 | 11,000 | 3,456 | 2,951 | 204,236 | | Derivative financial instruments | 255,229 | 100 | — | — | 275 | 280 | 227 | 256,111 | | Financial assets at fair value through other comprehensive income | 1,278 | 1,675 | 283 | 4,419 | 7,578 | 10,765 | 25,425 | 51,423 | | Assets included in disposal groups classified as held for sale | — | — | — | 3,916 | — | — | — | 3,916 | | Other financial assets | 1,878 | 18 | 152 | 8 | 11 | — | — | 2,067 | | Total financial assets | 857,541 | 76,847 | 15,217 | 33,311 | 72,937 | 49,214 | 66,996 | 1,172,063 | | Other assets | | | | | | | | 13,103 | | Total assets | | | | | | | | 1,185,166 | | Liabilities | | | | | | | | | | Deposits at amortised cost from banks and customers | 224,720 | 31,711 | 20,530 | 20,106 | 2,546 | 1,337 | 848 | 301,798 | | Cash collateral and settlement balances | 64,130 | 28,858 | — | — | — | — | — | 92,988 | | Repurchase agreements and other similar secured borrowing | 13,430 | 12,433 | 1,307 | 696 | 609 | — | 79 | 28,554 | | Debt securities in issue | 2,563 | 17,004 | 9,683 | 7,286 | 2,405 | 800 | 5,912 | 45,653 | | Subordinated liabilities | 257 | 121 | 266 | 204 | 11,232 | 7,151 | 16,672 | 35,903 | | Trading portfolio liabilities | 57,761 | — | — | — | — | — | — | 57,761 | | Financial liabilities designated at fair value | 181,214 | 31,970 | 13,867 | 14,579 | 23,460 | 13,994 | 19,489 | 298,573 | | Derivative financial instruments | 249,404 | 21 | — | — | 28 | 55 | 372 | 249,880 | | Liabilities included in disposal groups classified as held for sale | — | — | — | 3,164 | — | — | — | 3,164 | | Other financial liabilities | 6,014 | 5 | 12 | 24 | 87 | 66 | 80 | 6,288 | | Total financial liabilities | 799,493 | 122,123 | 45,665 | 46,059 | 40,367 | 23,403 | 43,452 | 1,120,562 | | Other liabilities | | | | | | | | 4,100 | | Total liabilities | | | | | | | | 1,124,662 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 217 | ## Risk review ## Risk performance #### Treasury and Capital risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Contractual maturity of financial assets and liabilities (audited) | | | | | | | | | | Barclays Bank PLC | Not more than one month | Over one month but not more than three months | Over three months but not more than six months | Over six months but not more than one year | Over one year but not more than three years | Over three years but not more than five years | Over five years | Total | | As at 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | £m | | Assets | | | | | | | | | | Cash and balances at central banks | 151,288 | — | — | — | — | — | — | 151,288 | | Cash collateral and settlement balances | 50,647 | 24,637 | — | — | — | — | — | 75,284 | | Debt securities at amortised cost | 34 | 271 | 1,508 | 1,130 | 10,800 | 6,962 | 14,814 | 35,519 | | Loans and advances at amortised cost to banks and customers | 53,051 | 27,488 | 14,611 | 27,255 | 54,829 | 25,392 | 22,426 | 225,052 | | Reverse repurchase agreements and other similar secured lending | 2,452 | 37 | 292 | 110 | 1,675 | 980 | — | 5,546 | | Trading portfolio assets | 102,030 | — | — | — | — | — | — | 102,030 | | Financial assets at fair value through the income statement | 195,289 | 20,282 | 10,035 | 7,092 | 12,394 | 6,840 | 1,880 | 253,812 | | Derivative financial instruments | 259,740 | 19 | 333 | — | 244 | 20 | 131 | 260,487 | | Financial assets at fair value through other comprehensive | 868 | 872 | 110 | 233 | 5,743 | 12,035 | 29,638 | 49,499 | | Other financial assets | 397 | — | 308 | 18 | — | — | — | 723 | | Total financial assets | 815,796 | 73,606 | 27,197 | 35,838 | 85,685 | 52,229 | 68,889 | 1,159,240 | | Other assets | | | | | | | | 28,777 | | Total assets | | | | | | | | 1,188,017 | | Liabilities | | | | | | | | | | Deposits at amortised cost from banks and customers | 234,006 | 32,852 | 23,115 | 12,898 | 16,559 | 825 | 27,838 | 348,093 | | Cash collateral and settlement balances | 43,675 | 18,711 | — | — | — | — | — | 62,386 | | Repurchase agreements and other similar secured borrowing | 25,450 | 2,879 | 1,089 | 8,518 | 5,851 | 2,409 | — | 46,196 | | Debt securities in issue | 51 | 5,551 | 1,871 | 1,037 | — | 1,411 | 3,070 | 12,991 | | Subordinated liabilities | — | 722 | — | — | 11,221 | 6,444 | 22,853 | 41,240 | | Trading portfolio liabilities | 41,015 | — | — | — | — | — | — | 41,015 | | Financial liabilities designated at fair value | 201,068 | 27,052 | 20,114 | 14,346 | 30,431 | 18,402 | 18,109 | 329,522 | | Derivative financial instruments | 247,753 | 44 | 18 | — | 173 | 240 | 189 | 248,417 | | Other financial liabilities | 3,186 | 1 | 3 | 6 | 20 | 9 | 21 | 3,246 | | Total financial liabilities | 796,204 | 87,812 | 46,210 | 36,805 | 64,255 | 29,740 | 72,080 | 1,133,106 | | Other liabilities | | | | | | | | 2,011 | | Total liabilities | | | | | | | | 1,135,117 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 218 | ## Risk review ## Risk performance #### Treasury and Capital risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Contractual maturity of financial assets and liabilities (audited) | | | | | | | | | | Barclays Bank PLC | Not more than one month | Over one month but not more than three months | Over three months but not more than six months | Over six months but not more than one year | Over one year but not more than three years | Over three years but not more than five years | Over five years | Total | | As at 31 December 2023 | £m | £m | £m | £m | £m | £m | £m | £m | | Assets | | | | | | | | | | Cash and balances at central banks | 153,701 | — | — | — | — | — | — | 153,701 | | Cash collateral and settlement balances | 41,541 | 33,730 | — | — | — | — | — | 75,271 | | Debt securities at amortised cost | 2 | 4,779 | — | 3,159 | 9,461 | 6,974 | 9,201 | 33,576 | | Loans and advances at amortised cost to banks and customers | 62,161 | 48,834 | 17,106 | 17,062 | 46,061 | 25,462 | 25,753 | 242,439 | | Reverse repurchase agreements and other similar secured lending | 3,832 | 2,144 | — | 34 | 864 | — | 2 | 6,876 | | Trading portfolio assets | 112,654 | — | — | — | — | — | — | 112,654 | | Financial assets at fair value through the income statement | 200,290 | 25,176 | 10,763 | 8,003 | 11,989 | 5,518 | 2,221 | 263,960 | | Derivative financial instruments | 224,495 | 57 | — | — | 273 | 252 | 224 | 225,301 | | Financial assets at fair value through other comprehensive income | 439 | 1,475 | 283 | 4,419 | 7,574 | 10,765 | 25,426 | 50,381 | | Other financial assets | 1,796 | — | 406 | — | — | — | — | 2,202 | | Total financial assets | 800,911 | 116,195 | 28,558 | 32,677 | 76,222 | 48,971 | 62,827 | 1,166,361 | | Other assets | | | | | | | | 27,377 | | Total assets | | | | | | | | 1,193,738 | | Liabilities | | | | | | | | | | Deposits at amortised cost from banks and customers | 240,560 | 29,971 | 17,185 | 17,810 | 7,928 | 6,011 | 27,838 | 347,303 | | Cash collateral and settlement balances | 40,183 | 18,109 | — | — | — | — | — | 58,292 | | Repurchase agreements and other similar secured borrowing | 21,302 | 12,483 | 1,882 | 1,359 | 6,444 | 402 | 79 | 43,951 | | Debt securities in issue | 120 | 8,094 | 7,381 | 4,729 | 473 | 646 | 3,390 | 24,833 | | Subordinated liabilities | 257 | — | 266 | — | 11,070 | 7,150 | 16,494 | 35,237 | | Trading portfolio liabilities | 50,995 | — | — | — | — | — | — | 50,995 | | Financial liabilities designated at fair value | 233,392 | 33,679 | 15,818 | 13,427 | 21,426 | 16,349 | 17,854 | 351,945 | | Derivative financial instruments | 220,897 | 20 | — | — | 26 | 53 | 369 | 221,365 | | Other financial liabilities | 4,560 | 1 | 2 | 5 | 20 | 9 | 14 | 4,611 | | Total financial liabilities | 812,266 | 102,357 | 42,534 | 37,330 | 47,387 | 30,620 | 66,038 | 1,138,532 | | Other liabilities | | | | | | | | 1,978 | | Total liabilities | | | | | | | | 1,140,510 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 219 | ## Risk review ## Risk performance #### Treasury and Capital risk Expected maturity date may differ from the contractual date, to account for: ▪ Trading portfolio assets and liabilities and derivative financial instruments which may not be held to maturity as part of the Barclays Bank Group’s trading strategies. ▪ Corporate and retail deposits, reported under deposits at amortised cost, are repayable on demand or at short notice on a contractual basis. In practice, their behavioural maturity is typically longer than their contractual maturity, and therefore provide stable funding for the Barclays Bank Group’s operations and liquidity needs. ▪ Loans to corporate and retail customers, which are included within loans and advances at amortised cost and financial assets at fair value, may be repaid earlier in line with terms and conditions of the contract. ▪ Debt securities in issue, subordinated liabilities, and financial liabilities designated at fair value may include early redemption features. Contractual maturity of financial liabilities on an undiscounted basis The following table presents the cash flows payable by the Barclays Bank Group under financial liabilities by remaining contractual maturities at the balance sheet date. The amounts disclosed in the table are the contractual undiscounted cash flows of all financial liabilities (i.e. nominal values). The balances in the below table do not agree directly to the balances in the consolidated balance sheet as the table incorporates all cash flows, on an undiscounted basis, related to both principal as well as those associated with all future coupon payments. Derivative financial instruments held for trading and trading portfolio liabilities are included in the 'not more than one month' column at their fair value. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Contractual maturity of financial liabilities - undiscounted (audited) | | | | | | | | | | | | | | | | | | | | | Not  more than one month | Over one month but not more than three months | Over three months but not more than six months | Over six months but not more than one year | Over one year but not more than three years | Over three years but not more than five years | Over five years | Total | | Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | | | | Deposits at amortised cost from banks and customers | 240,695 | 33,769 | 27,410 | 13,059 | 3,687 | 1,531 | 762 | 320,913 | | Cash collateral and settlement balances | 75,021 | 29,780 | — | — | — | — | — | 104,801 | | Repurchase agreements and other similar secured borrowing | 18,542 | 1,832 | 84 | 4,065 | 3,892 | 1,508 | — | 29,923 | | Debt securities in issue | 2,920 | 15,360 | 5,930 | 3,579 | 745 | 2,558 | 8,714 | 39,806 | | Subordinated liabilities | — | 824 | 75 | 80 | 11,955 | 7,036 | 34,922 | 54,892 | | Trading portfolio liabilities | 56,182 | — | — | — | — | — | — | 56,182 | | Financial liabilities designated at fair value | 157,090 | 23,676 | 16,971 | 15,713 | 30,014 | 21,471 | 34,087 | 299,022 | | Derivative financial instruments | 278,662 | 27 | 18 | — | 197 | 298 | 402 | 279,604 | | Liabilities included in disposal groups classified as held for sale | — | 3,726 | — | — | — | — | — | 3,726 | | Other financial liabilities | 4,335 | 10 | 18 | 35 | 127 | 86 | 3,680 | 8,291 | | Total financial liabilities | 833,447 | 109,004 | 50,506 | 36,531 | 50,617 | 34,488 | 82,567 | 1,197,160 | | | | | | | | | | | | As at 31 December 2023 | | | | | | | | | | Deposits at amortised cost from banks and customers | 224,753 | 31,931 | 20,850 | 20,720 | 2,738 | 1,556 | 1,017 | 303,565 | | Cash collateral and settlement balances | 64,132 | 29,098 | — | — | — | — | — | 93,230 | | Repurchase agreements and other similar secured borrowing | 13,463 | 12,516 | 1,326 | 719 | 632 | — | 213 | 28,869 | | Debt securities in issue | 2,571 | 17,142 | 9,849 | 7,481 | 2,571 | 908 | 8,464 | 48,986 | | Subordinated liabilities | 257 | 121 | 272 | 205 | 11,911 | 8,426 | 24,613 | 45,805 | | Trading portfolio liabilities | 57,761 | — | — | — | — | — | — | 57,761 | | Financial liabilities designated at fair value | 181,348 | 32,178 | 14,174 | 15,013 | 24,882 | 15,309 | 32,541 | 315,445 | | Derivative financial instruments | 249,405 | 21 | — | — | 31 | 64 | 705 | 250,226 | | Liabilities included in disposal groups classified as held for sale | — | — | — | 3,164 | — | — | — | 3,164 | | Other financial liabilities | 6,014 | 7 | 14 | 28 | 101 | 73 | 92 | 6,329 | | Total financial liabilities | 799,704 | 123,014 | 46,485 | 47,330 | 42,866 | 26,336 | 67,645 | 1,153,380 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 220 | ## Risk review ## Risk performance #### Treasury and Capital risk | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Contractual maturity of financial liabilities - undiscounted (audited) | | | | | | | | | | | | | | | | | | | | | Not more than one month | Over one month but not more than three months | Over three months but not more than six months | Over six months but not more than one year | Over one year but not more than three years | Over three years but not more than five years | Over five years | Total | | Barclays Bank PLC | £m | £m | £m | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | | | | Deposits at amortised cost from banks and customers | 234,154 | 33,059 | 23,356 | 13,251 | 17,925 | 952 | 64,543 | 387,240 | | Cash collateral and settlement balances | 43,675 | 18,888 | — | — | — | — | — | 62,563 | | Repurchase agreements and other similar secured borrowing | 25,475 | 2,894 | 1,113 | 8,800 | 6,142 | 2,707 | — | 47,131 | | Debt securities in issue | 51 | 5,579 | 1,888 | 1,076 | — | 1,684 | 4,031 | 14,309 | | Subordinated liabilities | — | 727 | — | — | 11,746 | 7,036 | 34,748 | 54,257 | | Trading portfolio liabilities | 41,015 | — | — | — | — | — | — | 41,015 | | Financial liabilities designated at fair value | 201,181 | 27,254 | 20,349 | 14,700 | 32,392 | 20,352 | 30,723 | 346,951 | | Derivative financial instruments | 247,781 | 44 | 18 | — | 184 | 280 | 402 | 248,709 | | Other financial liabilities | 3,187 | 2 | 3 | 8 | 24 | 11 | 25 | 3,260 | | Total financial liabilities | 796,519 | 88,447 | 46,727 | 37,835 | 68,413 | 33,022 | 134,472 | 1,205,435 | | | | | | | | | | | | As at 31 December 2023 | | | | | | | | | | Deposits at amortised cost from banks and customers | 240,624 | 30,171 | 17,451 | 18,348 | 8,548 | 7,170 | 58,751 | 381,063 | | Cash collateral and settlement balances | 40,188 | 18,305 | — | — | — | — | — | 58,493 | | Repurchase agreements and other similar secured borrowing | 21,335 | 12,570 | 1,917 | 1,416 | 6,840 | 467 | 213 | 44,758 | | Debt securities in issue | 120 | 8,158 | 7,510 | 4,865 | 522 | 733 | 4,244 | 26,152 | | Subordinated liabilities | 257 | — | 272 | — | 11,749 | 8,425 | 24,435 | 45,138 | | Trading portfolio liabilities | 50,995 | — | — | — | — | — | — | 50,995 | | Financial liabilities designated at fair value | 233,540 | 33,882 | 16,078 | 13,824 | 22,773 | 17,877 | 29,181 | 367,155 | | Derivative financial instruments | 220,898 | 20 | — | — | 29 | 62 | 702 | 221,711 | | Other financial liabilities | 4,560 | 1 | 3 | 6 | 22 | 10 | 16 | 4,618 | | Total financial liabilities | 812,517 | 103,107 | 43,231 | 38,459 | 50,483 | 34,744 | 117,542 | 1,200,083 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 221 | ## Risk review ## Risk performance #### Treasury and Capital risk Maturity of off-balance sheet commitments given The table below presents the maturity split of the Barclays Bank Group’s off-balance sheet commitments given at the balance sheet date. The amounts disclosed in the table are the undiscounted cash flows (i.e. nominal values) on the basis of earliest opportunity at which they are available. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Maturity analysis of off-balance sheet commitments given (audited) | | | | | | | | | | | | | | | | | | | | | Not more than one month | Over one month but not more than three months | Over three months but not more than six months | Over six months but not more than one year | Over one year but not more than three years | Over three years but not more than five years | Over five years | Total | | Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | | | | Contingent liabilities and financial guarantees | 26,541 | 22 | 1 | 1 | — | — | — | 26,565 | | Documentary credits and other short- term trade related transactions | 1,432 | 1 | — | — | — | — | — | 1,433 | | Standby facilities, credit lines and other commitments1 | 352,276 | — | — | — | 68 | — | — | 352,344 | | Total off-balance sheet commitments given | 380,249 | 23 | 1 | 1 | 68 | — | — | 380,342 | | | | | | | | | | | | As at 31 December 2023 | | | | | | | | | | Contingent liabilities and financial guarantees | 26,706 | 119 | 2 | 1 | 1 | — | — | 26,829 | | Documentary credits and other short- term trade related transactions | 2,348 | 3 | 1 | — | — | — | — | 2,352 | | Standby facilities, credit lines and other commitments1 | 335,528 | — | — | — | 55 | — | — | 335,583 | | Total off-balance sheet commitments given | 364,582 | 122 | 3 | 1 | 56 | — | — | 364,764 | Note 1. Includes exposures relating to financial assets classified as assets held for sale. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Maturity analysis of off-balance sheet commitments given (audited) | | | | | | | | | | | | | | | | | | | | | Not more than one month | Over one month but not more than three months | Over three months but not more than six months | Over six months but not more than one year | Over one year but not more than three years | Over three years but not more than five years | Over five years | Total | | Barclays Bank PLC | £m | £m | £m | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | | | | Contingent liabilities and financial guarantees | 48,482 | 22 | 1 | 1 | — | — | — | 48,506 | | Documentary credits and other short- term trade related transactions | 1,348 | 1 | — | — | — | — | — | 1,349 | | Standby facilities, credit lines and other commitments | 220,765 | — | — | — | 68 | — | — | 220,833 | | Total off-balance sheet commitments given | 270,595 | 23 | 1 | 1 | 68 | — | — | 270,688 | | | | | | | | | | | | As at 31 December 2023 | | | | | | | | | | Contingent liabilities and financial guarantees | 68,830 | 119 | 2 | 1 | 1 | — | — | 68,953 | | Documentary credits and other short- term trade related transactions | 2,294 | 3 | 1 | — | — | — | — | 2,298 | | Standby facilities, credit lines and other commitments | 204,374 | — | — | — | 55 | — | — | 204,429 | | Total off-balance sheet commitments given | 275,498 | 122 | 3 | 1 | 56 | — | — | 275,680 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 222 | ## Risk review ## Risk performance #### Treasury and Capital risk #### Capital risk All disclosures in this section, page [222](#ia16d0659cd524c01ae655d82fa382c3d_319) are unaudited unless otherwise stated. #### Overview Barclays Bank PLC capital requirements are set by the PRA at a solo-consolidated level. Barclays Bank PLC solo-consolidated comprises Barclays Bank PLC plus certain additional subsidiaries, whose inclusion within the consolidation is subject to PRA approval. Further information on the risk profile will be included in the Barclays Bank PLC 2024 Pillar 3 Report, expected to be published on 13 February 2025, and which will be available at home.barclays/investor-relations/reports-and-events/annual-reports. As at 31 December 2024 Barclays Bank PLC solo-consolidated CET1 ratio was 12.1% which is above its minimum regulatory requirement of 10.6%. | | | | | --- | --- | --- | | | | | | Capital ratios1,2,4 | | | | As at 31 December | 2024 | 2023 | | CET1 | 12.1% | 12.1% | | Tier 1 (T1) | 15.1% | 16.0% | | Total regulatory capital | 18.1% | 19.2% | | | | | | --- | --- | --- | | | | | | Capital resources (audited) | | | | | 2024 | 2023 | | As at 31 December | £m | £m | | CET1 capital | 26,995 | 25,470 | | T1 capital | 33,787 | 33,864 | | Total regulatory capital | 40,444 | 40,530 | | | | | | Total risk weighted assets (RWAs) (unaudited) | 223,648 | 211,193 | Leverage minimum requirements are set at the sub-consolidated level for Barclays Bank PLC. The sub-consolidated group represents the Barclays Bank Group on a regulatory scope of consolidation, as approved by the PRA. As a result, the Barclays Bank PLC leverage disclosures contained within this document are presented at Barclays Bank PLC sub-consolidated level, based on capital and exposure on the last day of the quarter. Additionally, it is also required to disclose an average UK leverage ratio based on capital on the last day of each month in the quarter and an exposure measure for each day in the quarter. As at 31 December 2024, the Barclays Bank PLC sub-consolidated leverage ratio was 5.8% which is above the minimum leverage ratio requirement of 3.5%. | | | | | --- | --- | --- | | | | | | Leverage ratio BBPLC sub-consolidated1,3,4 | | | | | 2024 | 2023 | | As at 31 December | £m | £m | | UK leverage ratio5 | 5.8% | 6.0% | | T1 capital | 54,713 | 55,560 | | UK leverage exposure | 946,809 | 924,826 | | | | | | Average UK leverage ratio | 5.2% | 5.4% | | Average T1 capital | 54,645 | 55,681 | | Average UK leverage exposure | 1,050,090 | 1,022,824 | Notes 1CET1, T1 and T2 capital, RWAs and leverage are calculated applying the transitional arrangements in accordance with UK CRR. This included IFRS 9 transitional arrangements and the grandfathering of certain capital instruments until 28 June 2025. Effective from 1 January 2025, the IFRS9 transitional arrangements no longer applied. 2The fully loaded CET1 ratio was 12.1%, with £27.0bn of CET1 capital and £223.6bn of RWAs calculated without applying the transitional arrangements in accordance with UK CRR. 3Fully loaded UK leverage ratio was 5.8%, with £54.6bn of T1 capital and £946.7bn of leverage exposure. Fully loaded average UK leverage ratio was 5.2% with £54.5bn of T1 capital and £1,050bn of leverage exposure. Fully loaded UK leverage ratios are calculated without applying the transitional arrangements under UK CRR. 4The fully loaded Barclays Bank PLC Solo-consolidated and Barclays Bank PLC sub-consolidated CET1 ratios, as are relevant for assessing against the conversion triggers in Barclays Bank PLC AT1 securities (all of which are held by Barclays PLC), were 12.1% and 16.4% respectively calculated without applying the transitional arrangements under UK CRR. 5Although the leverage ratio is expressed in terms of T1 capital, the countercyclical leverage ratio buffer (CCLB) and 75% of the minimum requirement must be covered solely with CET1 capital. The CET1 capital held against the 0.2% countercyclical leverage ratio buffer was £1.9bn. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 223 | ## Risk review ## Risk performance #### Treasury and Capital risk #### Foreign exchange risk (audited) The Barclays Bank Group is exposed to two sources of foreign exchange risk. a) Transactional foreign currency exposure Transactional foreign currency exposures represent exposures on banking assets and liabilities, denominated in currencies other than the functional currency of the transacting entity. The Barclays Bank Group’s risk management policies are designed to prevent the holding of significant open positions in foreign currencies outside the trading portfolio which is monitored through VaR. Banking book transactional foreign exchange risk is monitored on a daily basis by the market risk function and minimised by the businesses. b) Translational foreign exchange exposure The Barclays Bank Group's investments in overseas subsidiaries and branches create capital resources denominated in foreign currencies, principally USD and EUR. Changes in the GBP value of the net investments due to foreign currency movements are captured in the currency translation reserve, resulting in a movement in shareholders’ equity. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Functional currency of operations (audited) | | | | | | | | | | | | | | | | | Foreign currency net investments | Borrowings which hedge the net investments | Derivatives which hedge the net investments | Structural currency exposures pre- economic hedges | Other Equity instruments | Remaining structural currency exposures | | | £m | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | | USD | 27,742 | (4,644) | (2,229) | 20,868 | (5,846) | 15,023 | | EUR | 9,559 | (2,729) | — | 6,830 | (265) | 6,565 | | INR | 1,400 | — | (992) | 408 | — | 408 | | JPY | 628 | (215) | — | 413 | — | 413 | | Other | 2,037 | — | (792) | 1,245 | (849) | 396 | | Total | 41,366 | (7,588) | (4,013) | 29,764 | (6,960) | 22,805 | | | | | | | | | | As at 31 December 2023 | | | | | | | | USD | 26,199 | (5,733) | (2,168) | 18,298 | (7,326) | 10,972 | | EUR | 9,521 | (2,600) | — | 6,921 | (277) | 6,644 | | INR | 1,167 | — | (891) | 276 | — | 276 | | JPY | 701 | (174) | — | 527 | — | 527 | | Other | 1,793 | — | (674) | 1,119 | (505) | 614 | | Total | 39,381 | (8,507) | (3,733) | 27,141 | (8,108) | 19,033 | Other equity instruments relate to exposures arising on foreign currency denominated preference share and AT1 instruments. These instruments are accounted for at historical cost under IFRS and do not qualify as hedges for accounting purposes. The gain or loss arising from changes in the GBP value of these instruments is recognised on redemption in retained earnings. During 2024, total structural currency exposure net of hedging instruments increased by £3.8bn to £22.8b n (2023 : £19b n). Foreign currency net investments increased by £2bn to £41.4bn (2023: £39.4bn) driven predominantly by a £1.6bn increase in US dollars, £0.2bn increase in INR & £0.3bn increase in other currencies offset by £0.1bn decrease in Euro. The hedges associated with these foreign currency investments decreased by £0.6bn to £11.6bn (2023: £12.2b n). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 224 | ## Risk review ## Risk performance #### Treasury and Capital risk #### Pension risk review The UK Retirement Fund (UKRF) represents approximately 96% (2023: 96%) of the Group’s total retirement benefit obligations globally. As such this risk review section focuses exclusively on the UKRF. The UKRF is closed to new entrants and there is no new final salary benefit being accrued. Existing active members accrue a combination of a cash balance benefit and a defined contribution element. Pension risk arises as the market value of the pension fund assets may decline, investment returns may reduce or the estimated value of the pension liabilities may increase. Assets The Trustee Board of the UKRF defines its overall long-term investment strategy with investments across a broad range of asset classes. This results in a diversified mix of return seeking assets as well as liability matching assets to better match future pension obligations. The two largest  risks within the asset portfolio are credit spread and growth assets. The split of scheme assets is shown within Note 30 to the financial statements. The fair value of the UKRF assets was £21.9bn as at 31 December 2024 (2023: £24.2bn). Liabilities The UKRF retirement benefit obligations are a series of future cash flows with relatively long duration. On an IAS 19 basis these cash flows are sensitive to changes in the expected long-term price inflation rate (RPI) and the discount rate (GBP AA corporate bond yield): • An increase in long-term expected inflation corresponds to an increase in liabilities; • A decrease in the discount rate corresponds to an increase in liabilities. Pension risk is generated through the Group’s defined benefit schemes and this risk is set to reduce over time as the main defined benefit scheme is closed to new entrants. The chart below outlines the shape of the UKRF’s liability cash flow profile as at 31 December 2024 that takes account of the future inflation indexing of payments to beneficiaries. The majority of the cash flows (approximately 97%) fall between 0 and 40 years, peaking between 11 and 20 years and reducing thereafter. The shape may vary depending on changes to inflation and longevity expectations and any members who elect to transfer out. Transfers out will bring forward the liability cash flows. For more detail on the UKRF’s financial and demographic valuation assumptions see Note 30 to the financial statements. | | | --- | | | | Proportion of liability cash flows (%) | ![1584]() | | | | | --- | --- | --- | | | | | | n | 0-10 years | 32.7 | | n | 11-20 years | 33.3 | | n | 21-30 years | 21.1 | | n | 31-40 years | 10 | | n | 41-50 years | 2.7 | | n | 51+ years | 0.2 | | | | | | | | | | | | | | | | --- | | | | IAS 19 pension position from 2021 to 2024 (£bn) | | | | --- | | | | 6 | | 5 | | 4 | | 3 | | 2 | | 1 | | 0 | | | ![1592]() The graph above shows the evolution of the UKRF’s net IAS 19 position over the last four years. During 2024 the decrease in the UKRF surplus was driven by changes in market conditions, primarily due to the high rates environment. Refer to Note 30 to the financial statements for the sensitivity of the UKRF to changes in key assumptions. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 225 | ## Risk review ## Risk performance #### Treasury and Capital risk Risk measurement In line with the Barclays Bank Group's risk management framework the assets and liabilities of the UKRF are modelled within a VaR framework to show the volatility of the pension position at a total portfolio level. This enables the risks, diversification and liability matching characteristics of the UKRF obligations and investments to be adequately captured. VaR is measured and monitored on a quarterly basis. Risks are reviewed and reported regularly at the Pensions Executive Board. The VaR model takes into account the valuation of the liabilities on an IAS 19 basis (see Note 30 to the financial statements). The Trustee receives quarterly VaR measures on a funding basis. The pension liability is also sensitive to post-retirement mortality assumptions which are reviewed regularly (See Note 30 to the financial statements). To mitigate part of this risk the UKRF has entered into a longevity swap hedging approximately 70% of current pensioner liabilities. In addition, the impact of pension risk to the Barclays Bank Group is taken into account as part of the stress testing process. Stress testing is performed internally at least on an annual basis. The UKRF exposure is also included as part of regulatory stress tests. The Barclays Bank Group's defined benefit pension schemes affect capital in two ways: • An IAS 19 deficit is treated as a liability on the Barclays Bank Group’s balance sheet. Movement in a deficit due to remeasurements, including actuarial losses, are recognised immediately through Other Comprehensive Income and as such reduce shareholders’ equity and CET1 capital. An IAS 19 surplus is treated as an asset on the balance sheet and increases shareholders’ equity; however, it is deducted for the purposes of determining CET1 capital. • In the Barclays Bank Group’s statutory balance sheet an IAS 19 surplus or deficit is partially offset by a deferred tax liability or asset respectively. These may or may not be recognised for calculating CET1 capital depending on the overall deferred tax position of the Barclays Bank Group at the particular time. Pension risk is taken into account in the Pillar 2A capital assessment undertaken by the PRA at least annually. The Pillar 2A requirement forms part of the overall capital requirement for Barclays Bank PLC. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 226 | ## Risk review ## Risk performance #### Treasury and Capital risk #### Interest rate risk in the banking book All disclosures in this section, pages [226](#ia16d0659cd524c01ae655d82fa382c3d_358) to [227](#ia16d0659cd524c01ae655d82fa382c3d_373) , are unaudited unless otherwise stated. #### Overview The treasury and capital risk framework covers interest rate sensitive exposures held in the banking book, mostly relating to accrual accounted and fair value through other comprehensive income (FVOCI) instruments. The potential volatility of net interest income (NII) is measured by an Annual Earnings at Risk (AEaR) metric which is monitored regularly and reported to senior management and the Barclays Bank PLC Board Risk Committee as part of the limit monitoring framework. #### Summary of performance in the period NII sensitivity to interest rate shocks has remained broadly unchanged year on year with a change in the Bank's currency composition. Barclays Bank PLC's strategy remains to stabilise income across various interest rate environments, this has led to a broadly neutral outcome of sensitivities to both a +25bps and -25bps shock. #### Key metrics | | | --- | | | | -£11m AEaR across the Barclays Bank Group from a +25bps shock to forward interest rate curves. | #### Net interest income sensitivity The table below shows a sensitivity analysis on pre-tax net interest income for non-traded financial assets and liabilities, including the effect of any hedging. This analysis is not a forward guidance on NII and is intended as a quantification of risk exposure utilising the Net Interest Income (NII) metric as described on page 178 of the Barclays PLC Pillar 3 Report 2024 (unaudited), which includes documentation of the main model assumptions. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Net Interest Income sensitivity (AEaR) by currency (audited) | 2024 | | 2023 | | | | | | | | | | +25 basis points | -25 basis points | +25 basis points | -25 basis points | | | | | | | | Barclays Bank Group | £m | £m | £m | £m | | GBP | 27 | (28) | (27) | 25 | | USD | (29) | 29 | 18 | (18) | | EUR | (6) | 6 | 20 | (21) | | Other currencies | (3) | 3 | (19) | 19 | | Total | (11) | 10 | (8) | 5 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Net Interest Income sensitivity (AEaR) by currency (audited) | 2024 | | 2023 | | | | | | | | | | +25 basis points | -25 basis points | +25 basis points | -25 basis points | | | | | | | | Barclays Bank PLC | £m | £m | £m | £m | | GBP | 21 | (23) | (26) | 26 | | USD | (29) | 28 | 4 | (6) | | EUR | (7) | 7 | 15 | (16) | | Other currencies | (4) | 5 | (22) | 22 | | Total | (19) | 17 | (29) | 26 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 227 | ## Risk review ## Risk performance #### Treasury and Capital risk #### Analysis of equity sensitivity The analysis of equity sensitivity table measures the overall impact of a +/- 25bps movement in interest rates on retained earnings, FVOCI, cash flow hedge reserves and pensions. For non-NII items a DV01 metric is used, which is an indicator of the shift in value for a 1bp movement in the yield curve. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Analysis of equity sensitivity (audited) | 31 December 2024 | | 31 December 2023 | | | | | | | | | | | | | | | | +25 basis points | -25 basis points | +25 basis points | -25 basis points | | | | | | | | Barclays Bank Group | £m | £m | £m | £m | | Net interest income | (11) | 10 | (8) | 5 | | Taxation effects on the above | 2 | (2) | 1 | (1) | | Effect on profit for the year | (9) | 8 | (7) | 4 | | As percentage of net profit after tax | (0.2%) | 0.2% | (0.2%) | 0.1% | | | | | | | | Effect on profit for the year (per above) | (9) | 8 | (7) | 4 | | Fair value through other comprehensive income reserve | (193) | 200 | (234) | 242 | | Cash flow hedge reserve | (588) | 588 | (585) | 585 | | Taxation effects on the above1 | 219 | (221) | 131 | (132) | | Effect on equity | (571) | 575 | (695) | 699 | | As percentage of equity | (1.0%) | 1.0% | (1.1%) | 1.2% | Note: 1  The 2024 methodology has been updated to reflect the expected tax rates of each component impacting equity. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Analysis of equity sensitivity (audited) | 31 December 2024 | | 31 December 2023 | | | | | | | | | | +25 basis points | -25 basis points | +25 basis points | -25 basis points | | | | | | | | Barclays Bank PLC | £m | £m | £m | £m | | Net interest income | (19) | 17 | (29) | 26 | | Taxation effects on the above | 3 | (3) | 5 | (4) | | Effect on profit for the year | (16) | 14 | (24) | 22 | | As percentage of net profit after tax | (0.3%) | 0.3% | (0.8%) | 0.8% | | | | | | | | Effect on profit for the year (per above) | (16) | 14 | (24) | 22 | | Fair value through other comprehensive income reserve | (196) | 203 | (235) | 243 | | Cash flow hedge reserve | (489) | 489 | (531) | 531 | | Taxation effects on the above1 | 192 | (194) | 122 | (124) | | Effect on equity | (509) | 512 | (668) | 672 | | As percentage of equity | (1.0%) | 1.0% | (1.3%) | 1.3% | Note: 1  The 2024 methodology has been updated to reflect the expected tax rates of each component impacting equity. Movements in the FVOCI reserve impact CET1 capital. However, movements in the cash flow hedge reserve and pensions remeasurement reserve recognised in FVOCI do not affect CET1 capital. #### Volatility of the FVOCI portfolio in the liquidity pool Changes in value of FVOCI exposures flow directly through capital via the FVOCI reserve. The volatility in the value of the FVOCI investments in the liquidity pool is captured and managed through a value measure rather than an earning measure, i.e. non-traded market risk VaR. Although the underlying methodology to calculate the non-traded VaR is identical to the one used in traded management VaR, the two measures are not directly comparable. The non-traded VaR represents the volatility to capital driven by the FVOCI exposures. These exposures are in the banking book and do not meet the criteria for trading book treatment. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Analysis of volatility of the FVOCI portfolio in the liquidity pool | | | | | | | | | 2024 | | | 2023 | | | | | Average | High | Low | Average | High | Low | | For the year ended 31 December | £m | £m | £m | £m | £m | £m | | Non-traded market value at risk (daily, 95%) | 56 | 66 | 45 | 67 | 78 | 51 | Daily Value at Risk has been lower on an average in 2024 relative to 2023 driven by a combination of position changes and market volatility reduction. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 228 | ## Risk review ## Risk performance #### Operational risk All disclosures in this section, pages [228](#ia16d0659cd524c01ae655d82fa382c3d_376) to [230](#idc01f3440d7742809038295d40a06a1b_3903), are unaudited unless otherwise stated. #### Overview Operational risks are inherent in the Barclays Bank Group’s business activities and it is not cost effective or possible to attempt to eliminate all operational risks. The Operational Risk Framework is therefore focused on identifying operational risks, assessing them and managing them within the Barclays Bank Group’s approved risk appetite. The Operational Risk principal risk comprises the following risks: Change Delivery Management Risk; Data Management Risk; Financial Reporting Risk; Fraud Risk; Information Security Risk; Operational Recovery Planning Risk; Payments Process Risk; People Risk; Physical Security Risk; Premises Risk; Risk Reporting; Supplier Risk; Tax Risk; Technology Risk and Transaction Operations Risk. The operational risk profile is also informed by a number of Connected Risks: Data, Resilience, Third Party Service Provider and Model Connected Risk. These Connected Risks represent threats to the Barclays Bank Group that extend across multiple risk types, and therefore require an integrated risk approach to reporting and monitoring the risk exposure. For definitions of these risks refer to the Management of operational risk section of the Barclays PLC Pillar 3 Report 2024. To provide complete coverage of the potential adverse impacts on the Barclays Bank Group arising from operational risk, the operational risk taxonomy extends beyond the risks listed above to cover operational risks associated with other principal risks too. This section provides an analysis of the Barclays Bank Group’s operational risk profile, including events above the Barclays Bank Group’s reportable threshold, which have had a financial impact in 2024. The Barclays Bank Group’s operational risk profile is informed by bottom- up risk assessments undertaken by each business unit and top-down qualitative review for each risk type. Fraud, Transaction Operations, Information Security and Technology continue to be highlighted as key operational risk exposures. For information on compliance risk events, see the compliance risk section. #### Summary of performance in the period During 2024, total operational risk losses1 reduced to £47m (2023: £54m) and the number of recorded events for 2024 increased to 924 from 839 events recorded during the prior year. The total operational risk losses for the year were mainly driven by events falling within the Execution, Delivery & Process Management and External Fraud categories, which tend to be high volume but low impact events. #### Key metrics | | | --- | | | | 83% | | of the Barclays Bank Group’s net reportable operational risk events had a loss value of £50,000 or less | | | | --- | | | | 30% | | of events by number are due to Execution, Delivery and Process Management | | | | --- | | | | 70% | | of events by number are due to External Fraud | | | | --- | | | | 72% | | of losses are from events aligned to Execution, Delivery and Process Management | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 229 | ## Risk review ## Risk performance #### Operational risk #### Operational risk profile Within operational risk, there are a large number of small value risk events. In 2024 , 83% (2023: 79%) of the Barclays Bank Group’s reportable operational risk events by volume had a value of less than £50,000 each. Cumulatively, events under this £50,000 threshold accounted for only 27% ( 2023: 20%) of the Barclays Bank Group’s total net operational risk losses. A small proportion of operational risk events have a material impact on the financial results of the Barclays Bank Group. The analysis below presents the Barclays Bank Group’s operational risk events by Basel event category: ## Operational risk events by BASEL event category | | | --- | | | | % of total risk events by count | | Internal Fraud | | | | --- | | | | 2024 | | 2023 | | | | --- | | | | External Fraud | | | | --- | | | | 2024 | | 2023 | ![669]() | | | --- | | | | Execution Delivery and Process Management | | | | --- | | | | 2024 | | 2023 | ![674]() | | | --- | | | | Employment Practices and Workplace Safety | | | | --- | | | | 2024 | | 2023 | | | | --- | | | | Damage to Physical Assets | | | | --- | | | | 2024 | | 2023 | | | | --- | | | | Clients Products and Business Practices | | | | --- | | | | 2024 | | 2023 | ![689]() | | | --- | | | | Business Disruption and System Failures | | | | --- | | | | 2024 | | 2023 | ![694]() | | | --- | | | | % of total risk events by value | | Internal Fraud | | | | --- | | | | 2024 | | 2023 | | | | --- | | | | External Fraud | | | | --- | | | | 2024 | | 2023 | ![704]() | | | --- | | | | Execution Delivery and Process Management | | | | --- | | | | 2024 | | 2023 | ![709]() | | | --- | | | | Employment Practices and Workplace Safety | | | | --- | | | | 2024 | | 2023 | | | | --- | | | | Damage to Physical Assets | | | | --- | | | | 2024 | | 2023 | ![719]() | | | --- | | | | Clients Products and Business Practices | | | | --- | | | | 2024 | | 2023 | ![724]() | | | --- | | | | Business Disruption and System Failures | | | | --- | | | | 2024 | | 2023 | Note 1The data disclosed includes operational risk losses for reportable events impacting the Barclays Bank Group business areas, having impact of > £10,000 and excludes Gain or Insurance Recovery impacts, events that are compliance or legal risk, aggregate and boundary events. A boundary event is an operational risk event that results in a credit risk impact. Due to the nature of risk events that keep evolving, data for prior year losses are updated. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 230 | ## Risk review ## Risk performance #### Operational risk ▪ Execution, Delivery and Process Management impacts during 2024 reduced to £34m (2023: £41m) and accounted for 72% of total operational risk losses (2023 : 75%). The events in this category are typical of the banking industry as a whole where high volumes of transactions are processed on a daily basis, mapping mainly to Barclays Transaction Operations risk type. The overall frequency of events in this category in 2024 decreased to 30% of total events by volume (2023: 36%). ▪ External Fraud impacts during 2024 remain stable at £13m (2023: £13m) and accounted for 28% of total events by value (2023: 24%). Volume of events increased to 648 accounting for 70% of total event volume ( 2023: 529 / 63%). In this category, high volume, low value events are driven by transactional fraud often related to debit and credit card usage. Note: Total External Fraud losses in 2024 including those from events with impact <£10,000 amounted to £63m (2023: £69m). Investment continues to be made in improving the control environment across the Barclays Bank Group. Specific areas of focus include new and enhanced fraud prevention systems and tools to combat the increasing level of fraud attempts being made whilst minimising disruption to genuine transactions. Fraud remains an industry wide threat and the Barclays Bank Group continues to work closely with external partners on various prevention initiatives. Fraudsters use various techniques to target customers and colleagues directly (i.e. Third Party Fraud ), or the Bank directly (i.e. First Party Fraud). In the UK and Europe, Authorised Push Payment (APP) Scams is a growing fraud type where customers are deceived to transfer funds from their account to a bad actor. Fraud can also be committed by one or more employees and workers of any entity (i.e. Internal Fraud) or any unauthorized trading fraud. Additionally, the Barclays Bank Group continues to invest in its processing infrastructure to manage the risk of processing errors as well as ensuring scalability of operations. Operational Resilience remains a key area of focus for the Barclays Bank Group, having been reinforced in recent years due to potential operational disruption from the COVID-19 pandemic. The Barclays Bank Group continues to strengthen its resilience approach across its most important business services to improve recoverability and assurance thereof by reviewing scenarios based on current global climates. Operational risk associated with cybersecurity remains a top focus for the Barclays Bank Group. The sophistication of threat actors continues to grow as noted by multiple external risk events observed throughout the year. Cybersecurity incidents across the global Barclays supplier base and financial market intermediaries were observed, and we worked closely with the affected parties to manage potential impacts to the Barclays Bank Group and its clients and customers. The Barclays Bank Group’s cybersecurity incidents did not materially impact the Barclays Bank Group's business strategy, results of operations, or financial condition. For further information, refer to the operational risk management section. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 231 | ## Risk review ## Risk performance #### Model risk, Compliance risk, Reputation risk and Legal risk All disclosures in these model risk, compliance risk, reputation risk and legal risk sections on pages [231](#ia16d0659cd524c01ae655d82fa382c3d_382) to [232](#ifbb87716ba3e4c57a485e022cf5c2e78_1289) are unaudited unless otherwise stated. #### Model risk The Barclays Bank Group is committed to continually improving model risk management and made a number of enhancements in 2024, including: • Continued focus on improving model risk control framework. • Established a programme to meet PRA’s Supervisory Statement 1/23 Model risk management principles for banks. • Development of a governance framework for approaches which rely on subject matter expert judgement and establishing initial inventory. • Enhanced quantitative model risk assessment to cover most significant model suites. • Introduced Artificial Intelligence (AI) Policy, Development of approach to AI validation, and design of associated governance framework. • Expanded model risk framework to provide transparency around risk themes (Data and Technology) outside the Model Risk Framework that may impact model outputs. #### Compliance risk The Barclays Bank Group is committed to continuing to drive the right culture throughout all levels of the organisation. The Barclays Bank Group will continue to enhance effective management of Compliance Risk and appropriately consider the relevant tools, governance and management information in decision-making processes. Focus on management of Compliance Risk is ongoing and, alongside other relevant business and control management information, the Trading Entity Conduct Risk Dashboard is a key component of this. The Barclays Bank Group continues to review the role and impact of Compliance Risk events and issues in remuneration decisions at both the individual and business level. In 2024, the Barclays Bank Group maintained focus on new and heightened inherent Compliance Risks, including those relating to the evolving threat landscape as related to financial crime, and challenges in ensuring customer and client data is handled appropriately. These risks continue to be monitored on an ongoing basis. A key area of focus has been the ongoing embedment of the FCA’s Consumer Duty, Rules for closed products and services took effect at the end July 2024. Businesses have continued to assess the potential customer, client and market impacts of strategic change. As part of the 2024 medium- term planning process, material Compliance Risks associated with strategic and financial plans were assessed. Throughout 2024, Compliance Risks were raised by each business area for consideration by relevant Board level committees. These committees reviewed the risks raised and whether management’s proposed actions were appropriate to mitigate the risks effectively. During 2024, laws, rules and regulation risk (LRR risk) was embedded as a risk under the Compliance Principal Risk. LRR is intended to mitigate the risk of failing to identify applicable LRRs, and ensure appropriate steps are in place to monitor and oversee LRRs. Work continues to implement processes to support the management and oversight of LRR Risk. The Barclays Bank Group continued to incur costs in relation to litigation and conduct matters, refer to Note 24 Legal, competition and regulatory matters and Note 22 Provisions for further details. Costs include customer redress and remediation, as well as fines and settlements. Resolution of these matters remains a necessary and important part of delivering the Barclays Bank Group’s strategy and an ongoing commitment to improve oversight of culture and conduct. Trading Entity Compliance Risk Dashboards, setting out key indicators in relation to conduct and financial crime risk, are provided to the respective Board Risk Committees and senior management. These continue to be evolved and enhanced to allow effective oversight and decision-making. Work is ongoing to enhance the Compliance Risk Control Environment in a timely and effective manner to ensure the Barclays Bank Group operates within Risk Appetite. The tolerance adherence is assessed by the business areas through key indicators and reported to the relevant Trading Entity Board Committees as part of the Compliance Risk Dashboard governance process. The Barclays Bank Group remains focused on the continuous improvements being made to manage risk effectively with an emphasis on enhancing governance and management information to identify risk at earlier stages. #### Reputation risk The Barclays Bank Group is committed to continuing to drive the right culture throughout all levels of the organisation. The Barclays Bank Group will continue to enhance effective management of reputation risk and appropriately consider the relevant tools, governance and management information in decision-making processes. The Barclays Bank PLC Board considers reputation risks raised by businesses. The Board has also considered whether management’s proposed actions have been appropriate to mitigate the risks effectively. The Barclays Bank Group continued to incur costs in relation to litigation and conduct matters, please refer to Note 24 to the financial statements (Legal, competition and regulatory matters) and Note 22 to the financial statements (Provisions), for further details. Related | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 232 | ## Risk review ## Risk performance #### Model risk, Compliance risk, Reputation risk and Legal risk costs include customer redress and remediation, as well as fines and settlements. Resolution of these matters remain an ongoing commitment to improve oversight of culture and conduct and management of reputation risks. The Barclays Bank Group remains focused on the continuous improvements being made to manage risk effectively, with an emphasis on enhancing governance and management information to help identify risks at earlier stages. #### Legal risk The Barclays Bank Group remains committed to continuous improvements in managing legal risk effectively. During 2024, an annual review and update was conducted of the Barclays Group wide LRMF to complement and accommodate the introduction of changes to the CRMF (and described in more detail on page [150](#ia16d0659cd524c01ae655d82fa382c3d_172)), which includes a requirement for the Legal Function to proactively identify, communicate and provide legal advice on applicable laws, rules and regulations. Other improvements during 2024 included a review and update of the established supporting legal risk policies, standards and mandatory training, reinforced by ongoing engagement with and education of the Barclays Group’s businesses and functions by Legal Function colleagues. Legal risk tolerances and legal risk appetite have also been reviewed. Tolerances adherence is assessed through key indicators, which are also used to evaluate the legal risk profile and are reviewed, at least annually, through the relevant risk and control committees. Mandatory controls to manage legal risks are set out in the legal risk standards and are subject to ongoing monitoring. The implementation of changes to the CRMF referred to above (and described in more detail on page 151) also mitigate legal risk. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 233 | ## Risk review Supervision and ## regulation Supervision of the Barclays Bank Group The Barclays Bank Group’s operations, including its overseas branches, subsidiaries and associates, are subject to a large number of rules and regulations applicable to the conduct of banking and other financial services business in each of the jurisdictions in which the Barclays Bank Group operates. These apply to business operations, impact financial returns and include capital, leverage and liquidity requirements, authorisation, registration and reporting requirements, restrictions on certain activities, and conduct of business regulations, amongst other applicable regulatory requirements. Regulatory developments in one or more jurisdictions may impact the Barclays Bank Group globally. We focus particularly on UK, US and EU regulation in this Report due to the location of the Barclays Bank Group’s principal areas of business. Regulations elsewhere may also have a significant impact on the Barclays Bank Group due to the location of its branches, subsidiaries and, in some cases, clients. For more information on the risks related to the supervision and regulation of the Barclays Bank Group, including regulatory change, see the material existing and emerging risk entitled ‘Regulatory Change agenda and impact on Business Model’ in the Material existing and emerging risks section. Supervision in the UK In the UK, day-to-day regulation and supervision of the Barclays Bank Group is divided between the Prudential Regulation Authority (PRA) (a division of the Bank of England (BoE)) and the Financial Conduct Authority (FCA). In addition, the Financial Policy Committee (FPC) of the BoE has influence on the prudential requirements that may be imposed on the banking system through its powers of direction and recommendation. Certain members of the Barclays Bank Group are also subject to regulatory initiatives undertaken by the UK Payment Systems Regulator (PSR), as a participant in payment systems regulated by the PSR. Barclays Bank PLC is an authorised person, with permission to accept deposits, amongst other things, and is subject to prudential supervision by the PRA and to conduct regulation and supervision by the FCA. Barclays Bank PLC is subject to prudential supervision on a solo-consolidated basis. The Barclays Group as a whole is also subject to prudential supervision by the PRA on a group consolidated basis. Barclays PLC has been approved by the PRA as a financial holding company. Barclays Capital Securities Limited (BCSL) is authorised and subject to prudential supervision by the PRA as a PRA-designated investment firm and subject to conduct regulation and supervision by the FCA. Barclays Execution Services Limited and Barclays Global Service Centre Private Limited are both appointed representatives of Barclays Bank PLC. These are arrangements under which the appointed representative is permitted to carry on certain regulated activities in the UK which its principal takes responsibility for and oversees. Appointed representative arrangements must comply with certain statutory and FCA rules, including on prescribed contractual terms and ongoing monitoring and supervision of the appointed representative by the principal. The PRA’s supervision of the Barclays Bank Group is conducted through a variety of regulatory tools, including the collection of information by way of prudential returns or cross-firm reviews, reports obtained from skilled persons, information gathering, regular supervisory visits and regular continuous assessment meetings with the management and relevant stakeholders to discuss matters such as strategy, governance, financial resilience, operational resilience, risk management, and recovery and resolution. Further, the BoE, as the UK resolution authority, informs prudential requirements and sets requirements for the Barclays Group relating to resolution preparedness. The FCA’s supervision of the UK firms in the Barclays Bank Group is carried out through a combination of proactive engagement meetings, regular supervisory visits, information gathering and regular meetings with the Barclays Bank Group’s management and relevant stakeholders to discuss matters such as customer strategy, fair treatment of customers, and financial crime controls, as well as cross- sectoral reviews which analyse the different areas of the market and the risks that may lie ahead. The FCA and the PRA also apply the Senior Managers and Certification Regime (the SMCR) which imposes a regulatory approval, individual accountability and fitness and propriety framework in respect of senior individuals within relevant firms. FCA supervision has focused on strategic transformation, financial crime controls, conduct risk and customer/client outcomes under the Consumer Duty (which now applies to both open and closed products), firm culture and non-financial misconduct, fraud controls and reimbursement, access to cash, the fair treatment of vulnerable customers and payment account access and closures. PRA supervision has focused on strategic transformation, financial and operational resilience (including cyber risk), governance, credit risk management, model risk management, data risk management, systems and controls, climate risk and resolvability, where resolvability is reviewed in conjunction with the Resolution Directorate (a division of the BoE). Both the PRA and the FCA apply standards that generally either anticipate or go beyond requirements established by global or EU standards, whether in relation to capital, leverage and liquidity, resolvability and resolution or matters of conduct. The UK is in the process of reviewing, repealing and, where relevant, replacing the EU legislation that was onshored into English law following the UK's departure from the EU (assimilated law). The Financial Services and Markets Act 2023 (FSMA 2023) established a framework for the revocation of assimilated law relating to financial services, with HM Treasury now repealing certain requirements set out in assimilated law. However, the Government is not expected to revoke assimilated law relating to financial services unless the FCA and/or PRA have drafted and consulted on rules in the relevant areas, where it is appropriate that the provisions are replaced. HM Treasury may specify parts of assimilated law where the regulators are exempt from requirements to consult on new replacement rules, for example where they are restating assimilated law revoked through FSMA 2023 in their rulebooks without material changes or where they are replacing revoked assimilated law with material changes but the only material effect is to reduce a regulatory burden. Where changes also have other material effects, which may include impacts on the regulators’ objectives, for example, the Government has indicated that it is appropriate to require the regulators to consult. There is a significant volume of assimilated law for the UK Government to repeal and replace, so this process remains ongoing and the regulatory landscape continues to develop. There is potential for an increase in regulatory implementation costs in the near term to adapt systems and controls, although areas of divergence from assimilated law have been limited to date. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 234 | ## Risk review Supervision and ## regulation FSMA 2023 also introduced the framework for the ‘designated activities regime’ (DAR). The DAR framework allows HM Treasury to designate certain activities which do not require regulatory authorisation to carry them out, but which are currently subject to FCA and PRA supervision under assimilated law.  The DAR will provide a mechanism for the UK regulators to make rules, supervise these activities and exercise enforcement powers in these areas as the relevant provisions in assimilated law are repealed and replaced. The DAR will apply to both authorised and unauthorised persons carrying on designated activities. Implementation costs may be incurred to adapt existing processes as the DAR develops. In January 2025, the Financial Services and Markets Act 2000 (Designated Activities) (Supervision and Enforcement) Regulations 2025 came into effect. These Regulations give the FCA supervisory and enforcement powers in respect of short selling and consumer composite investment activities. Supervision in the EU The Barclays Bank Group’s operations in the European Union are authorised and regulated by a combination of its home regulators and host regulators in the EU countries where the Barclays Bank Group operates. Barclays Bank Ireland PLC is licensed as a credit institution by the Central Bank of Ireland (CBI) and is therefore subject to supervision by the CBI as home state or competent authority under various EU financial services directives and regulations. It is further designated as a significant institution falling under direct supervision on a solo basis by the European Central Bank (ECB) for prudential purposes. Barclays Bank Ireland PLC’s EU branches are supervised by the ECB and are also subject to direct supervision for local conduct purposes by national supervisory authorities in the EU jurisdictions where they are established. Barclays Bank Ireland PLC is subject to the requirements set by the Single Resolution Board (SRB) as its resolution authority. Barclays Bank Ireland PLC is also subject to supervision by the CBI as home state or competent authority under various EU financial services directives and regulations. The Barclays Group provides the majority of its cross-border banking and investment services to EEA clients via Barclays Bank Ireland PLC (a subsidiary of Barclays Bank PLC). Additionally, Barclays Bank PLC and BCSL are authorised in certain EEA Member States to enable them to continue to conduct a limited range of activities without a physical presence, including accessing EEA trading venues and interdealer trading. The newly adopted Directive (EU) 2024/1619 (CRD VI) contains a prohibition on providing core banking services, such as lending and deposit-taking into the EU from a third country entity, subject to certain exemptions. Subject to additional guidance from the EU, and pending Member State implementation, Barclays Bank PLC and BCSL may be limited in their ability to provide certain core banking services into the EU. Barclays Bank PLC also has a branch in Paris (to facilitate access to TARGET 2), which is regulated by the ACPR. Supervision in the US Barclays PLC, Barclays Bank PLC and its New York branch, and Barclays Bank PLC’s US subsidiaries are subject to a comprehensive regulatory framework involving numerous statutes, rules and regulations in the US. For example, the Barclays Bank Group’s US activities and operations are subject to supervision and regulation by the Board of Governors of the Federal Reserve System (FRB), as well as additional supervision, requirements and restrictions imposed by other federal and state regulators and self-regulatory organisations (SROs). In some cases, US requirements may impose restrictions on the Barclays Bank Group’s global activities, in addition to its activities in the US. Barclays PLC, Barclays Bank PLC, Barclays US Holdings Limited (BUSHL), Barclays US LLC (BUSL), and Barclays Group US Inc. (BGUS) are regulated as bank holding companies (BHCs) by the FRB. BUSL is the Barclays Bank Group’s ultimate US holding company that holds substantially all of the Barclays Bank Group’s US subsidiaries (including Barclays Capital Inc. (BCI) and Barclays Bank Delaware). BUSL is subject to requirements in respect of capital adequacy, capital planning and stress testing, risk management and governance, liquidity, leverage limits, large exposure limits, restrictions on activities and financial regulatory reporting. Barclays Bank PLC’s New York branch is also subject to enhanced prudential standards relating to, among other things, liquidity and risk management. Barclays PLC, Barclays Bank PLC, BUSHL and BUSL have financial holding company (FHC) status under the Bank Holding Company Act of 1956. FHC status allows these entities to engage in a variety of financial and related activities, directly or through subsidiaries, including underwriting, dealing and market making in securities. Failure to maintain FHC status could result in increasingly stringent penalties and, ultimately, in the closure or cessation of certain operations in the US. In addition to oversight by the FRB, Barclays Bank PLC’s New York branch and many of the Barclays Bank Group’s subsidiaries are regulated by additional US authorities based on the location or activities of those entities. The New York branch of Barclays Bank PLC is subject to supervision and regulation by the New York State Department of Financial Services (NYSDFS). Barclays Bank Delaware, a Delaware chartered bank, is subject to supervision and regulation by the Delaware Office of the State Bank Commissioner, the Federal Deposit Insurance Corporation (FDIC), the FRB and the Consumer Financial Protection Bureau (CFPB). The deposits of Barclays Bank Delaware are insured by the FDIC, up to applicable limits. Barclays PLC, Barclays Bank PLC, BUSHL, BUSL, and BGUS are required to act as a source of strength for Barclays Bank Delaware. This could, among other things, require these entities to provide capital support to Barclays Bank Delaware if it fails to meet applicable regulatory capital requirements. The Barclays Bank Group’s US securities broker/dealer and investment banking operations are conducted primarily through BCI, and are also subject to ongoing supervision and regulation by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and other government agencies and SROs under US federal and state securities laws. BCI is also registered as a Futures Commission Merchant with the Commodity Futures Trading Commission (CFTC), through which the Barclays Group conducts its US futures and options on futures business, including client clearing operations, which are subject to ongoing supervision and regulation by the CFTC, the National Futures Association and other SROs. Under the US framework for regulating swaps and security-based swaps established under Title VII of the Dodd-Frank Act, the CFTC has regulatory authority over swaps, the SEC has regulatory authority over security-based swaps, and the CFTC and SEC jointly regulate mixed swaps (as such terms are defined in the relevant legislation). Accordingly, the Barclays Group’s activities related to US swaps and security- based swaps are principally conducted by Barclays Bank PLC and are subject to ongoing supervision and regulation by the CFTC and the SEC, respectively. Barclays Bank PLC is registered as a swap dealer with the CFTC and conditionally registered as a security-based swap | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 235 | ## Risk review Supervision and ## regulation dealer with the SEC. Barclays Bank PLC is also subject to the FRB swaps rules with respect to margin and capital requirements. In addition, Barclays Bank Ireland PLC is registered as a swap dealer with the CFTC and is subject to the FRB swaps rules with respect to margin and capital. Supervision in Asia Pacific The Barclays Bank Group’s operations in Asia Pacific are supervised and regulated by a broad range of national banking and financial services regulators. Prudential regulation Prudential regulation in the UK Certain Basel III standards were originally implemented in EU and UK law through the Capital Requirements Regulation (CRR) and the Capital Requirements Directive IV (CRD IV), as amended by CRR II and CRD V. These standards were retained in the UK regulatory framework via a series of onshoring instruments when the UK withdrew from the European Union. Under the assimilated law version of the CRR (the UK CRR), the Barclays Group is subject to a binding Pillar 1 minimum capital requirement to satisfy a Common Equity Tier 1 (CET1) ratio of 4.5% of risk-weighted assets (RWAs) . However, in practice the Barclays Group is required to and does hold capital significantly in excess of this requirement. Additional capital requirements apply to the Barclays Group including Pillar 2A minimum requirements and capital buffers, including the capital conservation buffer, the countercyclical capital buffer, the O-SII buffer and the G-SIB buffer, as well as PRA buffer requirements (the Pillar 2B), as explained further below. Global systemically important banks (G-SIBs), such as the Barclays Group, are subject to a number of additional prudential requirements, including the requirement to hold additional loss-absorbing capacity and additional capital buffers above the level required by Basel III standards. The level of the G-SIB buffer is set by the Financial Stability Board (FSB) according to a bank’s systemic importance and can range from 1% to 3.5% of RWAs. The G-SIB buffer must be met with CET1 capital. In November 2024, the FSB published an update to its list of G-SIBs, maintaining the 1.5% G-SIB buffer that applies to the Barclays Group. The Barclays Group is subject to a ‘combined buffer requirement’ consisting of (i) a capital conservation buffer of 2.5% of RWAs, and (ii) a countercyclical capital buffer (CCyB). The CCyB is based on rates determined by the regulatory authorities in each jurisdiction in which the Barclays Group maintains exposures. In the UK, the CCyB rate is set by the FPC and is currently 2%. Like the capital conservation buffer, the CCyB must be met entirely with CET1 capital. The PRA requires UK firms to hold additional capital to cover risks which the PRA assesses are not fully captured by the Pillar 1 capital requirement. The PRA sets this additional capital requirement (Pillar 2A) at least annually, derived from each firm's individual capital guidance. Under current PRA rules, the Pillar 2A requirement must be met with at least 56.25% CET1 capital, no more than 43.75% additional Tier 1 (AT1) capital and no more than 25% tier 2 capital. In addition, the capital that firms use to meet their minimum requirements (Pillar 1 and Pillar 2A) cannot be counted towards meeting the combined buffer requirement. In September 2024, the BoE and PRA issued a consultation paper (CP9/24) on changes to the Pillar 2A capital framework, including retiring the refined methodology for calculating Pillar 2A requirements in light of incoming proposals to implement Basel III standards (discussed further below) and streamlining firm-specific capital communications. The PRA may also impose a confidential 'PRA buffer' to cover risks over a forward looking planning horizon, including with regard to firm- specific stresses or management and governance weaknesses. The PRA buffer must be met separately to the combined buffer requirement, and must be met fully with CET1 capital. Barclays Bank PLC is subject to prudential regulation by the PRA on a solo-consolidated basis and is required to meet a minimum Common Equity Tier 1 (CET1) ratio of 10.6% comprising a 4.5% Pillar 1 requirement, a 2.5% capital conservation buffer, a 0.8% countercyclical buffer and a 2.9% Pillar 2A add on. In December 2023, the PRA published its first collection of near-final policy proposals for implementing certain remaining Basel III standards (Basel 3.1), including revised frameworks for market risk, operational risk and Credit Valuation Adjustment (CVA) risk. A second policy statement was published by the PRA in September 2024, including near-final rules on credit risk and credit risk mitigation, the implementation of an output floor (requiring reported RWAs calculated under standardised and modelled approaches to be a minimum of 72.5% of fully standardised calculations), and disclosure and reporting. The implementation date for these standards has been extended to 1 January 2027, with a transitional period to ensure full implementation by 1 January 2030. In October 2021, the FPC and PRA published a policy statement setting out changes to the leverage ratio framework, including applying the leverage ratio requirement on an individual basis and making sub-consolidation available as an alternative to individual application where a firm has subsidiaries that can be consolidated. Barclays Bank PLC applied for this sub-consolidated permission which was approved by the PRA and took effect from 1 January 2023. The PRA is consulting on proposed amendments (CP14/24) to the large exposures (LE) framework to implement the remaining Basel large exposure standards (removing the option for firms to use internal models to calculate exposure values to securities financing transactions and introducing a mandatory substitution approach to calculate the effect of the use of credit risk mitigation techniques), as well as other amendments including in respect of the LE limits to intragroup entities and removing the option for firms to exceed LE limits for trading book exposures to third parties. Additional minimum prudential requirements that apply to the Barclays Group to ensure that sufficient resources are maintained to provide loss absorption in a resolution context are discussed in the sub-section titled ‘TLAC and MREL’ below. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 236 | ## Risk review Supervision and ## regulation Prudential regulation in the EU In the EU, Barclays Bank Ireland PLC is subject to CRR and CRD, each as amended, which implement the Basel III framework. Under this framework, Barclays Bank Ireland PLC is identified as an O-SII by the CBI, which has imposed an O-SII buffer on Barclays Bank Ireland PLC of 1%. The implementation of the final part of Basel III (Basel 3.1) is effected through CRR III which has applied since January 2025, save for those provisions relating to the Fundamental Review of the Trading Book (or FRTB), which have been deferred until January 2026 by the European Commission through Delegated Regulation. The European Banking Authority (EBA) has also issued a no-action letter recommending that competent authorities not prioritise enforcement of the new boundaries of the trading book. Given the most recent revision to the timetable for the implementation of Basel 3.1 in the UK to January 2027 (which was triggered by uncertainties in relation to the US implementation), a further delay in the EU cannot be ruled out. The EU implementation otherwise largely follows Basel 3.1 and has significant overlap with the UK rules, save for important divergences, for example on certain exposure classes, risk weights and application of models. Prudential regulation in the US In the US, the Barclays Bank Group (including BUSL) is subject to prudential requirements for large domestic US banking organisations, foreign banking organisations and their intermediate holding companies (IHCs) set by the FRB and other US regulatory agencies. BUSL is a “Category III” IHC. BUSL (and Barclays Bank Delaware) is subject to reduced (calibrated at 85%) standardised liquidity requirements, including the liquidity coverage ratio and the net stable funding ratio (NSFR). BUSL is also subject to the FRB’s rules regarding single counterparty credit limits (SCCL). The SCCL apply to the largest US BHCs and foreign banks’ (including the Barclays Bank Group’s) US operations. The SCCL creates two separate limits for foreign banks, the first on combined US operations (CUSO) and the second on the US IHC (BUSL). The SCCL for BUSL, as a US BHC, requires that exposure to an unaffiliated counterparty of BUSL not exceed 25% of BUSL’s tier 1 capital. With respect to the CUSO, the SCCL rule allows certification to the FRB that a foreign bank complies with comparable home country regulation. Barclays Bank PLC has complied with the CUSO requirement since 1 January 2022. To date, Barclays Bank PLC has not relied on home country certification. In 2023, the FRB and other US regulatory agencies proposed changes to the regulatory capital rules applicable to certain US banks, BHCs and IHCs that were intended to be broadly consistent with revisions to Basel III finalised by the Basel Committee on Banking Supervision in 2017.  The FRB has also suggested in public statements that the FRB is considering changes to liquidity regulations after the banking stress of 2023 but has not yet issued a proposal.  The future of these proposals, if any, is highly uncertain. Stress testing The Barclays Group and certain of its members, including Barclays Bank PLC, are subject to supervisory stress testing exercises in a number of jurisdictions, designed to assess the resilience of banks to adverse economic or financial developments and ensure that they have robust, forward-looking capital planning processes that account for the risks associated with their business profile. Assessment by regulators is on both a quantitative and qualitative basis, the latter focusing on such elements as data provision and stress testing capability, including model risk management and internal management processes and controls. Recovery and Resolution Stabilisation and resolution framework The current UK framework for recovery and resolution was established by the Banking Act 2009, as amended. The EU framework was established by the 2014 Bank Recovery and Resolution Directive (BRRD), as amended by BRRD II. The BoE, as the UK resolution authority, has the power to resolve a UK financial institution that is failing or likely to fail by exercising certain stabilisation tools, including (i) bail-in: the cancellation, transfer or dilution of a relevant entity’s equity and write-down or conversion of the claims of a relevant entity's unsecured creditors (including holders of capital instruments) and conversion of those claims into equity as necessary to restore solvency; (ii) the transfer of all or part of a relevant entity's business to a private sector purchaser; and (iii) the transfer of all or part of a relevant entity's business to a “bridge bank” controlled by the BoE. When exercising any of its stabilisation powers, the BoE must generally provide that shareholders bear first losses, followed by creditors in accordance with the priority of their claims in insolvency. In order to enable the exercise of its stabilisation powers, the BoE may impose a temporary stay on the rights of creditors to terminate, accelerate or close out contracts, or override events of default or termination rights that might otherwise be invoked as a result of a resolution action and modify contractual arrangements in certain circumstances (including a variation of the terms of any securities). HM Treasury may also amend the law for the purpose of enabling it to use its powers under this regime effectively, potentially with retrospective effect. In addition and distinct from bail-in, the BoE has the power to permanently write-down, or convert into equity, tier 1 capital instruments, tier 2 capital instruments and internal eligible liabilities at the point of non-viability of an institution pursuant to broader resolution powers under the Banking Act. The BoE’s preferred approach for the resolution of the Barclays Group is a bail-in strategy with a single point of entry at Barclays PLC. Under such a strategy, Barclays PLC’s subsidiaries (including entities within Barclays Bank Group) would remain operational while Barclays PLC’s capital instruments and eligible liabilities would be written down or converted to equity in order to recapitalise the Barclays Group and allow for the continued provision of services and operations throughout the resolution. The order in which the bail-in tool is applied reflects the | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 237 | ## Risk review Supervision and ## regulation hierarchy of capital instruments under applicable UK legislation and rules and otherwise respecting the hierarchy of claims in an ordinary insolvency. Accordingly, the more subordinated the claim, the more likely losses will be suffered by owners of the claim. The PRA has made rules that require authorised firms to draw up recovery plans and resolution packs. Recovery plans are designed to outline credible actions that authorised firms could implement in the event of severe stress in order to restore their business to a stable and sustainable condition. The submission of resolution packs was suspended by the PRA in 2018 until further notice and replaced by annual resolution reporting. It continues to be suspended pending PRA assessment of areas of potential duplication between different reporting expectations. The Barclays Group, however, is required to provide the PRA with a recovery plan biennially, although the Barclays Group maintains and refreshes this on an annual basis. Removal of potential impediments to an orderly resolution of a banking group or one or more of its subsidiaries is considered as part of the BoE’s resolution planning for each firm, and the BoE can require firms to make significant changes in order to enhance their resolvability. Under the BoE’s Resolvability Assessment Framework (RAF), firms are required to have in place capabilities covering three resolvability outcomes: (i) adequate financial resources; (ii) being able to continue to do business through resolution and restructuring; and (iii) being able to communicate and co-ordinate within the firm and with authorities. Barclays Group’s second self-assessment report on resolvability under the RAF was submitted to the PRA/BoE in 2023 and the BoE’s assessment on the report was published in August 2024. The BoE’s 2024 assessment was more detailed than in previous years. The BoE identified that there are no shortcomings, deficiencies or substantive impediments in the Barclays Group’s capabilities that could impede Barclays’ ability to execute the preferred resolution strategy. The BoE did note that there were three areas for further enhancement relating to the provision of timely valuations, in respect of operational continuity in resolution relating to the inclusion of resolution-resilient language in service contracts, and restructuring planning. The Barclays Group continues to develop its capabilities in these areas and is engaging with the BoE on these areas identified for enhancements. In future, the PRA/BoE could exercise its various powers to direct the Barclays Group to address any relevant issues. In January 2025, amendments to the PRA rules were introduced which now require firms to make submissions under the relevant resolution rules on a ‘periodic’ basis rather than the previous fixed two-year cycles (PS1/25). The BoE and PRA will require firms to submit their next resolution reports in 2026, with a public disclosure to be made in 2027. While regulators in many jurisdictions have indicated a preference for single point of entry resolution for the Barclays Group, additional resolution or bankruptcy provisions may apply to certain non-UK Barclays Bank Group entities or branches. In the EU, Barclays Bank Ireland PLC is required by the ECB to submit a standalone BRRD compliant recovery plan on an annual basis. As a Significant Institution under direct ECB supervision, Barclays Bank Ireland PLC falls within the remit of the Single Resolution Board (SRB). Under the provisions of the BRRD and EU Single Resolution Mechanism Regulation (SRMR), the SRB is required to determine the optimal resolution strategy for Barclays Bank Ireland PLC and, also, to prepare a resolution plan for the bank. The SRB undertakes this work within the context of the BoE’s preferred resolution strategy of single point of entry with bail in at Barclays PLC. In order to carry out its mandate, the SRB collects detailed structural and other information from Barclays Bank Ireland PLC on a regular basis, as well as engaging with the bank to identify and address impediments to resolution. This work is done in coordination with the BoE, as the Barclays Group resolution authority. Barclays Bank Ireland PLC meets the SRB’s requirements for resolution as set out in the SRB’s ‘Expectations for Banks’. In April 2023, the EU Commission also proposed certain reforms to strengthen the EU’s bank crisis management and deposit insurance (CMDI) framework, including extending depositor protection to public entities and client money deposited in certain types of client funds. The EU legislative process remains ongoing and the future of this proposal is not yet clear in the new legislative cycle 2024-2029. The EU is also reviewing its approach to securitisation from a prudential perspective with a view to stimulating the market in securitised products. In the US, Title I of the Dodd-Frank Act (DFA), as amended, and the implementing regulations issued by the FRB and the FDIC require each foreign-based bank holding company with assets of $250bn or more, including those within the Barclays Group, to prepare and submit a plan for the orderly resolution of subsidiaries and operations that are domiciled in the US or conducted in whole or material part in the US in the event of future material financial distress or failure. The Barclays Group submitted a “targeted plan” in December 2021. The agencies did not identify any shortcomings or deficiencies with the Barclays Group’s 2021 US Resolution Plan. In August 2024, the FRB and FDIC finalised new guidance for foreign triennial full filers (such as the Barclays Group) that would affect the content required to be included in the US Resolution Plan. The final guidance generally represents an expansion of the current 165(d) resolution planning guidance applicable to the Barclays Group. The Barclays Group’s next submission of the US Resolution Plan in respect of its US operations will be a “full plan” due by 1 October 2025. BUSL may also be resolved under the Orderly Liquidation Authority established by Title II of the DFA, a regime for the orderly liquidation of systemically important financial institutions by the FDIC, as an alternative to proceedings under the US Bankruptcy Code. In addition, the licensing authorities of Barclays Bank PLC New York branch and of Barclays Bank Delaware have the authority to take possession of the business and property of the applicable branch or entity they license and/or to revoke or suspend such license. TLAC and MREL The Barclays Group is under the supervision of the BoE, as the UK resolution authority, and is subject to a Minimum Requirement for Own Funds and Eligible Liabilities (MREL), which includes a component reflecting the FSB’s standards on total loss absorbency capacity (TLAC). Since 1 January 2022, G-SIBs with resolution entities incorporated in the UK have been required to meet an MREL equivalent to the higher of: (i) two times the sum of their Pillar 1 and Pillar 2A requirements; or (ii) the higher of two times their leverage ratio requirement or 6.75% of leverage exposures. The Barclays Group is also required to meet binding external MRELs in 2024 on the basis of a bail-in resolution strategy comprising a binding minimum capital requirement of 12.6% of RWAs, MREL of 25.2% of RWAs, and a loss-absorbing capacity (MREL plus buffers) of 30.0% of RWAs. Internal MREL for material subsidiaries is subject to a scalar in the 75-90% range of the external requirement that would apply to the subsidiary if it were a resolution entity. The starting point for the scalar is 90% for ring-fenced bank sub-groups. In October 2024, the BoE launched a consultation on proposals to amend its statement of policy on its approach to setting MREL (the MREL SoP). This forms part of the repeal and restatement (with modifications) process of assimilated law and the BoE does not consider that its proposals would result in fundamental changes to the overall impact of its MREL policy. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 238 | ## Risk review Supervision and ## regulation Barclays Bank Ireland PLC is subject to the SRB’s MREL policy, as issued in May 2024, in respect of the internal MREL that it will be required to issue to the Barclays Group. The SRB’s current calibration of internal MREL for non-resolution entities is expressed as two ratios that have to be met in parallel: (a) two times the sum of: (i) the firm’s Pillar 1 requirement; and (ii) its Pillar 2 requirement; and (b) two times the leverage ratio requirement. The SRB’s policy does not apply any scalar in respect of the internal MREL requirement. Under the SRB MREL policy, a bank specific adjustment and a market confidence charge can be applied by the SRB to MREL requirements. Since 1 January 2024, a revised deduction regime applies for the indirect subscription of instruments eligible for internal MREL to avoid the double-counting of MREL elements at the level of intermediate entities within a resolution group. In the US, the FRB’s TLAC rule includes provisions that require BUSL to have: (i) a specified outstanding amount of eligible long-term debt; (ii) a specified outstanding amount of TLAC (consisting of common and preferred equity regulatory capital plus eligible long-term debt); and (iii) a specified common equity buffer. In addition, the FRB’s TLAC rule prohibits BUSL, for so long as the Barclays Group’s overall resolution plan treats BUSL as a non-resolution entity, from issuing TLAC to entities other than those within the Barclays Group. Bank Levy and FSCS The BRRD established a requirement for EU Member States to set up a pre-funded resolution financing arrangement with funding equal to 1% of covered deposits by 31 December 2024 to cover the costs of bank resolutions. The UK implemented this requirement by way of a tax on the balance sheets of banks known as the ‘Bank Levy’, which remains in place. In addition, the UK has a statutory compensation fund called the Financial Services Compensation Scheme (FSCS), which is funded by way of annual levies on most authorised financial services firms. Structural reform In the UK, the Financial Services (Banking Reform) Act 2013 put in place a framework for ring-fencing certain operations of large banks. Ring-fencing requires, among other things, the separation of the retail and SME deposit-taking activities of UK banks from wholesale and investment banking operations into a legally distinct, operationally separate and economically independent entity (i.e. a ‘ring-fenced bank’), which is not permitted to undertake a range of activities. Under FSMA, the PRA is required to review its ring-fencing rules every five years following the rules coming into force, with the first report having been published in January 2024. The PRA intends to consult in due course on targeted reforms to its ring-fencing rules as a result of its review, although the overall conclusion was that most of those rules are performing satisfactorily.  Separately, HM Treasury has introduced legislative amendments to implement near-term reforms to the ring- fencing regime which took effect in February 2025. These reforms have, amongst other measures, increased the core deposit threshold (which determines whether a UK bank is subject to the ring-fencing regime) from £25bn to £35bn, exempted predominantly retail-focussed banks from the ring-fencing regime by introducing a secondary threshold (referred to as the trading assets exemption), permitted ring- fenced banks to establish branches and subsidiaries outside of the UK or the EEA (subject to PRA rules) and introduced a new four-year transition period for UK non-ring-fenced banks to comply with the ring-fencing regime following mergers or acquisitions. In the EU, structural reform is taking the form of further integration of the banking union and on the financial markets side the proposed Savings and Investment Union and the Retail Investment Strategy. This will entail further consolidation of the market in the EU and an increasing focus on legislation by way of directly applicable regulations. Structural reform might, over time, also come through further strengthening the powers of the European Supervisory Authorities (ESAs). US regulation places further substantive limits on the activities that may be conducted by banks and holding companies, including foreign banking organisations such as the Barclays Group. The ‘Volcker Rule’, which was part of the DFA and which came into effect in the US in 2015, prohibits banking entities from undertaking certain proprietary trading activities and limits such entities’ ability to sponsor or invest in certain private equity funds and hedge funds (in each case broadly defined). As required by the rule, the Barclays Group has developed and implemented an extensive compliance and monitoring programme addressing proprietary trading and covered fund activities (both inside and outside of the US). Market infrastructure regulation In recent years, regulators as well as global-standard setting bodies such as the International Organization of Securities Commissions (IOSCO) have focused on improving transparency and reducing risk in markets, particularly risks related to over-the-counter (OTC) derivative transactions. This focus has resulted in a variety of new regulations across the G20 countries and beyond that require or encourage on-venue trading, clearing, posting of margin and disclosure of pre-trade and post-trade information. The wholesale financial markets in the EU are facing reform to apply the lessons learned from the introduction of the Markets in Financial Instruments Directive and Markets in Financial Instruments Regulation (collectively referred to as MiFID II) and various other pieces of legislation, which will affect how the Barclays Bank Group transacts with counterparties and customers in the EU and how it packages its investment services. Various aspects of MiFID II and related legislation have been subject to change as a result of the EU’s ongoing focus on the development of a stronger Savings and Investment Union. In the UK, FSMA 2023 introduced reforms to remove certain requirements which were previously applicable to trading in wholesale markets and to promote investment in line with the Wholesale Markets Review. Other changes, for example on trade transparency requirements have been progressed by way of amendments to regulatory rules and guidance and an FCA review of the UK transaction reporting regime is underway. Regulation of benchmarks As a regulatory response to the LIBOR scandal, the EU and UK Benchmarks Regulations apply to the administration, contribution and use of benchmarks within the EU and the UK, respectively. Financial institutions within the EU or the UK, as applicable, are prohibited from using benchmarks unless their administrators are authorised, registered or otherwise recognised in the EU or the UK, respectively. This prohibition will apply in respect of third country benchmark administrators from the end of 2025 (EU) and 2030 (UK). The European Commission has published a proposal to amend the EU Benchmark Regulation to reduce the scope of benchmark administrators subject to its requirements. This proposal needs to go through the European legislative process, with potential new rules applying from the beginning of 2026.  The | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 239 | ## Risk review Supervision and ## regulation phase out of LIBOR has now been completed, with the remaining synthetic LIBOR settings for holders of legacy contracts published for the last time on 30 September 2024.  Other global benchmarks are now being phased out through 2025. Global regulators in conjunction with the industry have developed alternative benchmarks and risk-free rate fallback arrangements, including updates to existing, as well as new, applicable legislation. Regulation of the derivatives market The European Market Infrastructure Regulation (EMIR) imposes requirements in the EU and the UK which are designed to improve transparency and reduce the risks associated with the derivatives market. EMIR has operational and financial impacts on the Barclays Bank Group, including by imposing collateral requirements on the Barclays Bank Group, as well as a requirement to centrally clear certain OTC derivatives contracts with certain market participants. Following the UK’s departure from the EU, EMIR rules were onshored into English law and now form part of UK assimilated law (UK EMIR). Access to the clearing services of certain Central Counterparties (CCPs) used by Barclays Bank Group entities is currently permitted under temporary equivalence and recognition regimes in the UK and EU. In the UK, the temporary recognition regime for non-UK CCPs has now been extended until the end of December 2026. Targeted amendments to the UK EMIR reporting framework were implemented in September 2024, which aimed to align the regime with international guidance (where appropriate). In the EU, access to the clearing services of certain non-EU CCPs used by Barclays Bank Group entities is permitted through recognised third country CCPs. For UK CCPs, this recognition is currently envisaged to end on 30 June 2025. In April 2024, amendments to the EU EMIR reporting requirements (relating to the details and formats of reports, for example) introduced by regulatory and implementing technical standards under the EMIR REFIT Regulation took effect. Further proposals to amend the EU EMIR framework (Regulation (EU) 2024/2987 and Directive (EU) 2024/2994, referred to collectively as EMIR 3) came into force on 24 December 2024. The changes introduced by EMIR 3 seek to reduce the reliance and exposure to third-country CCPs and enhance the competitiveness of CCPs in the EU. EMIR 3 will require EU entities to clear a representative amount of their trades through EU authorised CCPs, as part of the new “active account” regime which requires certain financial and non-financial counterparties exceeding the clearing threshold in defined categories of derivative contracts to hold at least one clearing account at CCPs authorised in the EU. These changes aim to reduce the concentration of exposures to systemically important UK CCPs in particular, but other EMIR 3 changes will also apply. For example, EMIR 3 will amend the intragroup transactions definition, removing the need for equivalence decisions to have been issued, which may make it easier to rely on the relevant intragroup exemptions in respect of clearing and margin requirements. US regulators have imposed similar rules as in the EU with respect to the mandatory on-venue trading and clearing of certain derivatives, and post-trade transparency, as well as in relation to the margining of OTC derivatives. In December 2017, the CFTC and the European Commission recognised the trading venues of each other’s jurisdiction to allow market participants to comply with mandatory on-venue trading requirements while trading on certain venues recognised by the other jurisdiction. In August 2024, the CFTC extended temporary relief that would permit trading venues and market participants located in the UK to continue to rely on this mutual recognition framework following the withdrawal of the UK from the EU. Certain participants in US swap markets are required to register with the CFTC as ‘swap dealers’ or ‘major swap participants’ and/or, with the SEC as ‘security-based swap dealers’ or ‘major security-based swap participants’. Such registrants are subject to CFTC and/or SEC regulation and oversight. Barclays Bank PLC is registered with the CFTC as a swap dealer and conditionally registered with the SEC as a security-based swap dealer. In addition, Barclays Bank Ireland PLC is registered as a Swap Dealer with the CFTC. Accordingly, Barclays Bank PLC and Barclays Bank Ireland PLC are both subject to CFTC rules on business conduct, record-keeping and reporting, and Barclays Bank PLC is subject to SEC rules on business conduct, record-keeping and reporting. However, since Barclays Bank PLC and Barclays Bank Ireland PLC are non-US swap dealers, they are only subject to certain of the CFTC’s requirements in respect of swap transactions.  Whether and the extent to which such CFTC requirements apply to any particular swap transaction may depend on whether the counterparty to such swap transaction is a US person or guaranteed by or affiliated with a US person. In addition, since Barclays Bank PLC is a non-US security-based swap dealer, it is only subject to certain of the SEC’s requirements in respect of security-based swap transactions.  Whether and the extent to which such SEC requirements apply to any particular security-based swap transaction may depend on whether the counterparty to any security-based swap transaction is a US person or guaranteed by a US person, or whether the transaction is arranged, negotiated, or executed by US-based Barclays personnel. Additionally, Barclays Bank PLC and Barclays Bank Ireland PLC have elected to comply with certain CFTC/SEC requirements, as applicable, through ‘substituted compliance’ with EU/UK requirements pursuant to relevant determinations and related relief issued by the SEC and the CFTC, as applicable. Barclays Bank PLC and Barclays Bank Ireland PLC are subject to FRB rules on capital and margin. In 2024, the CFTC adopted amendments to its capital and financial reporting requirements for swap dealers. The new rules codify certain no-action relief and add specificity as to existing reporting requirements. Other significant regulatory developments in the US In 2023, the SEC finalised amendments to shorten the standard settlement cycle for most broker-dealer transactions in securities from two business days after the trade (T+2) to one business day after the trade (T+1), which requires significant changes to BCI’s settlement procedures and practices, and introduced new rules requiring market-wide improvements in the rate of same-day affirmations and on central matching service providers. This reduced settlement cycle will have knock-on effects for both the UK and EU markets as they seek to introduce similarly shortened settlement cycles. On 13 October 2023, the SEC adopted new rules to establish broad reporting requirements of the terms of securities loans to FINRA for public dissemination, and requiring FINRA to make publicly available certain information it receives regarding those lending transactions. Although the rule has been challenged in court, there has been no stay of the rule’s implementation. The FINRA rules associated with the rulemaking are required to be effective in January 2025, and the reporting requirements to FINRA begin in January 2026. On 13 October 2023, the SEC adopted new rules requiring a wide range of firms to file monthly reports with the SEC for large short positions in equity securities on a new Form SHO and amendments to the National Market System plan governing the Consolidated Audit Trail, which | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 240 | ## Risk review Supervision and ## regulation adds an additional reporting requirement for CAT-reporting firms relying on the bona fide market maker exception to Reg SHO’s locate requirement. Although the rule has been challenged in court, there has been no stay of the requirement to begin filing Form SHO reports, and that requirement begins in January 2025. On 30 October 2023, the SEC issued exemptive relief, which exempts broker-dealers from their information review obligations concerning the issuer of an over-the-counter security prior to publication or submission of a quotation in that security with respect to a fixed-income security to be sold in compliance with the safe harbor in Rule 144A under the Securities Act of 1933. On 13 December 2023, the SEC adopted rule amendments under the Exchange Act that, among other things, will mandate central clearing of certain US Treasury securities transactions and amend the broker-dealer customer protection rule as it applies to margin posted for transactions in US Treasury securities. These rule amendments could impose additional costs on the Barclays Bank Group’s Treasury securities trading activity. Although there is some discussion as to whether deadlines for implementation might be extended, the amended rule’s compliance date remains 31 December 2025. On 18 September 2024, the SEC unanimously amended certain rules under Regulation NMS (National Market System) to adopt variable minimum pricing increments, reduce access fee caps for protected quotations, and require that the amount of exchange fees and rebates be determinable at the time of execution, among other changes. The compliance date for the amended rule has been set as the first business day in November 2025. The rule is currently under challenge and the SEC has ordered a partial stay of the rule’s effectiveness pending the outcome of that petition for review. Other regulation Consumer protection, digital access, culture and diversity and inclusion The FCA’s Consumer Duty is now in force for new and existing products or services that are open to sale or renewal, as well as closed products and services. The duty sets higher expectations for the standard of care that firms provide to retail customers and impacts all aspects of Barclays’ retail businesses, including every retail customer journey, product and service as well as Barclays Bank Group's relationships with partners, suppliers and third parties. This has resulted in significant implementation costs and there are also continued higher ongoing costs for the industry as a result of extensive monitoring and evidential requirements. In setting out its strategy for supervision of the retail banking industry in 2025, the FCA has reiterated the importance of the Consumer Duty as a continued priority for the FCA and its expectations for firms to embed the Consumer Duty into their culture and purpose. Other areas of strategic priority for the FCA’s supervision include the fair treatment of customers in financial difficulty, access for customers to payment accounts and banking services (discussed further below), compliance with operational resilience rules, the continued management of financial crime and fraud risks, and the role of banks in developing sustainable finance offerings and the importance of ensuring that sustainability-related claims associated with products are clear, fair and not misleading. In the UK, the wider financial industry may be impacted by the October 2024 Court of Appeal judgments on commission arrangements in the motor finance industry, subject to the result of the appeals of those judgments to the Supreme Court, and to the FCA’s ongoing review of the motor finance market. In December 2024, the FCA announced an extension to the time motor finance firms have to handle complaints on lender commissions until after 4 December 2025, following on from the Court of Appeal’s judgments in Johnson v FirstRand Bank, Wrench v FirstRand Bank and Hopcroft v Close Brothers Ltd [2024] EWCA Civ 1282. The decisions in these cases could, subject to these appeals, impact the availability and terms of financing, risk of future claims, and the likelihood of a FCA consumer redress scheme. There could also be wider market and industry implications of the judgments and/or the appeals, which could adversely affect the Barclays Bank Group’s business, results of operations, financial condition and prospects. Barclays Bank Group's regulators have enhanced their focus on the promotion of cultural values as a key area for banks. The UK regulators have also begun focusing on diversity and inclusion in financial services firms, with the PRA and FCA having published a consultation on the introduction of a new regulatory framework on diversity and inclusion in September 2023. The FCA has stated that it expects to publish a policy statement on non-financial misconduct early in 2025, with the FCA and PRA intending to publish policy statements on the remaining diversity and inclusion proposals in Q2 2025. The UK Government is expected to consult on abolishing the Certification Regime that applies under the SMCR and replace this with a more proportionate approach, although details of these proposals are yet to be published. Following increasing regulatory focus in 2023, the FCA published its findings on the reasons for payment account closures, in light of concerns that customer accounts were being closed on the basis of customers’ political views. In September 2024, the FCA published a follow-up report outlining further findings and expectations for firms, particularly in respect of the Consumer Duty. HM Treasury previously announced plans to require banks to provide clear and tailored reasons for the closure of payment accounts as well as extending the notice period of such closure to 90 days, although these reforms have not yet been implemented. FSMA 2023 contains provisions mandating that the Payment Systems Regulator (PSR) require the reimbursement of authorised push payment scams by payment service providers, including Barclays. This new reimbursement requirement took effect in October 2024. It has imposed a maximum reimbursement limit of £85,000 with costs split 50:50 between the sending and receiving firms. Similar but less stringent rules will apply in the EU with the expected adoption in 2025 of the proposed amendment to the Payment Services Directive and the new Payment Services Regulation (together known as PSD). In the EU, new initiatives such as the proposed Regulation on Financial Data Access (FIDA) establish a framework on data sharing between financial institutions at the initiative of customers, allowing financial institutions to better tailor products and services. Data protection Most jurisdictions where the Barclays Bank Group operates have adopted or are considering comprehensive laws concerning data protection and privacy. Regulations regarding data protection are increasing in number, as well as levels of enforcement, as manifested in | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 241 | ## Risk review Supervision and ## regulation increased amounts of fines and the severity of other penalties. We expect that personal privacy and data protection will continue to receive attention and focus from regulators, as well as public scrutiny and attention. The EU’s General Data Protection Regulation (GDPR) and the UK’s General Data Protection Regulation (UK GDPR) provide a framework of rights and duties designed to safeguard personal data and apply to the activities conducted from an establishment in the EU or the UK, respectively. The extraterritorial effect of the GDPR and the UK GDPR means entities established outside the EU or the UK may fall respectively within the GDPR or the UK GDPR’s ambit when offering goods or services to EU/UK based customers or clients or conducting behavioural monitoring of individuals in the EU/UK. The Data (Use and Access) Bill was introduced to the UK Parliament in October 2024, which if enacted will bring some divergence between the EU GDPR and UK GDPR. The data regime in China is likely to continue to evolve, governing the collection, processing and cross-border transfers of China-based individuals' personal data and restricted data (e.g., macro/derived characteristics data which, if tampered with, divulged or destroyed, may endanger China's economic operation, social stability, national security - among other things - having regard to the volume and granularity of the data). In India, in preparation for the implementation of the Digital Personal Data Protection Act, which passed in 2023, the Government has yet to issue finalised implementation rules for a robust mechanism of privacy protection and rights. Except under certain exemptions, its scope would include the processing of personal data in India and would extend to the profiling of, and offering goods and services to, India-based individuals outside of India. As the global data protection regulatory landscape develops, non-compliance with any such requirements and rules could lead to regulatory fines and other penalties. In the US, Barclays Bank Delaware is subject to the US Gramm-Leach-Bliley Act (GLBA) and the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act of 2020 (CPRA). The GLBA limits the use and disclosure of non-public personal information to non-affiliated third parties, and requires financial institutions to provide written notice of their privacy policies and practices and implement certain information security policies and practices. Any violations of the GLBA could subject Barclays Bank Delaware to additional reporting requirements or regulatory investigation or audits by the financial regulators. More broadly, the Barclays Bank Group's US operations are subject to the CPRA which applies to personal information that is not collected, processed, sold or disclosed subject to the GLBA. The CPRA requires applicable members of the Barclays Bank Group to both provide California residents with additional disclosures regarding the collection, use and sharing of personal information and grant California residents access, deletion, correction and other rights, including the right to opt-out of certain sales or transfers of personal information and the right to limit the processing of sensitive personal information to certain purposes. Any violations of the CPRA may be subject to enforcement by the California Privacy Protection Agency and the California Attorney General and the imposition of monetary penalties, as well as potential lawsuits arising from the private right of action provided to California residents in the case of certain data breaches. Bills proposed in the United States Congress and in the legislatures of various US states from time to time, if enacted, may have further impact on the data privacy practices of Barclays’ US operations. In addition, all 50 states have laws including obligations to provide notification of security breaches of computer databases that contain personal information to affected individuals, state officers and others. In May 2024, the SEC adopted amendments to expand the scope of and introduce new requirements under Regulation S-P, a set of privacy rules adopted pursuant to the GLBA and the Fair and Accurate Credit Transactions Act of 2003 that govern the treatment of non-public personal information about consumers by certain financial institutions, including BCI. In addition to expanding the scope of customer information protected under Regulation S-P’s safeguards and disposal rules, the amendments will require covered financial institutions to (i) develop, implement and maintain written policies and procedures for an incident response program reasonably designed to detect, respond to and recover from unauthorised access to or use of customer information, (ii) notify individuals whose sensitive customer information was, or is reasonably likely to have been, accessed or used without authorisation as soon as practicable, but not later than 30 days, after becoming aware that an incident has or is reasonably likely to have occurred and (iii) establish, maintain and enforce written policies and procedures reasonably designed to require oversight and monitoring of service providers, including by requiring relevant service providers to provide notification to the covered institution as soon as possible, but no later than 72 hours, after becoming aware of a breach in security has occurred resulting in unauthorised access to a customer information system maintained by the service provider. In October 2024, the CFPB released its final rule titled “Required Rulemaking on Personal Financial Data Rights” as required to implement Section 1033 of the Consumer Financial Protection Act of 2010. The final rule requires banks, credit unions and other financial service providers that meet the definition of covered data providers to make covered data regarding covered products and services available in an electronic form to consumers and authorised third parties, subject to a number of requirements. The final rule also sets out  criteria a third party must satisfy in order to be an authorised third party and therefore access consumers’ data, including certifying to the relevant consumer it will satisfy certain obligations regarding the collection, use and retention of covered data and obtaining express and informed consumer consent.  Compliance with this rule will be phased in over several years, with the first set of requirements taking effect from 1 April 2026, and with Barclays Bank Delaware becoming subject to the rule on 1 April 2027. Cybersecurity and operational resilience Regulators globally continue to focus on cybersecurity risk management, organisational operational resilience and overall soundness across all financial services firms, with customer and market expectations of uninterrupted access to financial services remaining at an all-time high. The regulatory focus has been further heightened by the increasing number of high-profile ransomware and other supply chain attacks seen across the industry in recent years and the growing reliance of financial services on Cloud and other third party service providers. This is evidenced by the continuing introduction of new laws and regulatory frameworks directed at enhancing resilience of both firms and their critical third party providers. The UK operational resilience framework introduced in March 2021 requires firms to be able to remain within impact tolerances set for their important business services, in severe but plausible disruption scenarios such as a cyberattack, by no later than 31 March 2025. In December 2024, the FCA and the PRA each published a consultation paper (CP24/28 and CP17/24 respectively) on proposals for firms to report operational incidents and their material third party arrangements to enhance the operational resilience framework. The FCA has stated that it expects to publish finalised rules in a policy statement in the second half of 2025, whilst the PRA has stated that the proposed implementation date for its proposals is no earlier than the second half of 2026. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 242 | ## Risk review Supervision and ## regulation FSMA 2023 introduced a new regime for designated critical third party providers (CTPs). In November 2024, the FCA, PRA, and BoE jointly released the final rules and expectations for designated CTPs with the final rules having taken effect from 1 January 2025. Whilst the new rules apply to designated CTPs themselves, there may be additional impact and costs for the Barclays Bank Group incurred in connection with updating existing supplier arrangements to reflect the new CTP requirements where suppliers are designated as critical CTPs. The EU’s Digital Operational Resilience Act (DORA) entered into force in January 2023 and has applied from 17 January 2025, introducing comprehensive and sector specific regulation on Information Communication Technologies (ICT) incident reporting, testing and third party risk management, and providing for direct oversight of critical third party providers servicing the EU financial services sector. Firms which do not meet the regulations under DORA can face significant fines and other regulatory measures. The EU’s Network and Information Security (NIS) Directive, which aimed to improve the resilience of network and information systems in the EU against cybersecurity risks, has been updated. The revised version, NIS2, applies from 18 October 2024 and imposes stricter security, governance and incident reporting requirements. Failure to comply can lead to significant fines and senior manager liability among other things. The extraterritorial effect of NIS2 means entities established outside the EU may fall within its ambit if providing certain services in the EU. In the UK, the original NIS Directive was transposed into UK law and still applies but a new Cyber Security and Resilience Bill is planned to be introduced to Parliament in 2025. In 2023, the SEC finalised disclosure rules regarding cybersecurity risk management, governance and incident reporting by US-listed companies, including foreign private issuers such as Barclays PLC and Barclays Bank PLC. The rules require foreign private issuers to annually disclose the policies and procedures relied upon to identify and manage cybersecurity risks, including risk management strategy and whether any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect the issuer, its business strategy, results of operations or financial condition. In addition, Barclays PLC and Barclays Bank PLC must annually describe Barclays’ board of directors’ oversight of risks from cybersecurity threats, the board committee responsible for the oversight of such risks, and the processes by which the board or such committee is informed of these risks; and details of management’s expertise and role in assessing and managing material risks from cybersecurity threats. If Barclays PLC or Barclays Bank PLC are required or determine to disclose material cybersecurity incidents under home country or stock exchange rules, they are required to also furnish this information with the SEC on the SEC's website, in accordance with their obligations as foreign private issuers. In late 2023, NYDFS amended its cybersecurity regulation applying to the New York Branch of Barclays Bank PLC, with various implementation deadlines through November 2025. The NYDFS's amended cybersecurity regulation contains significant updates, including enhanced notification requirements, cybersecurity governance obligations, and requirements applicable to cybersecurity policies and procedures (e.g., encryption and multi-factor authentication, business continuity and incident response plans, and vulnerability management). The existing and anticipated requirements specified in the UK, EU, and US for increased controls will serve to improve industry standardisation and resilience capabilities, enhancing Barclays Bank Group's ability to deliver services during periods of potential disruption. Such measures are resulting in increased technology and compliance costs for the Barclays Bank Group. Artificial intelligence A number of jurisdictions where the Barclays Bank Group operates have adopted or are considering adopting laws regulating artificial intelligence (AI). The EU’s Artificial Intelligence Act (EU AI Act), which entered into force on 1 August 2024, provides rights and duties designed to ensure the safe and ethical deployment of AI. The EU AI Act requires organisations to ensure suitable levels of AI literacy within their workforce and categorises AI systems based on their level of risk. It has a phased approach to compliance, with the first set of requirements prohibiting certain uses of AI applying from 2 February 2025. It also establishes a rigorous compliance regime for high-risk AI applications (which provisions apply from 2 August 2027). The extraterritorial effect of the of EU AI Act means entities established outside the EU fall with the EU AI Act’s ambit if they provide or deploy AI in the EU or the output of their AI is used in the EU. Similarly, several U.S. states are considering enacting or have already enacted regulations concerning the use of AI technologies, including Colorado’s An Act Concerning Consumer Protections In Interactions with AI Systems and the Utah AI Policy Act.  Moreover, U.S. federal  and state agencies and regulators are considering how existing laws and regulations may apply to the use of AI technologies.  For example, in October of 2024, NYDFS issued guidance addressed to executives and information security personnel of regulated entities to assist them in understanding and assessing cybersecurity risks associated with the use of AI, and implementing appropriate controls to mitigate such risks using the cybersecurity regulation as a relevant framework (e.g., undertaking AI-specific risk assessments, accounting for AI-related risks in contracts with third party service providers, implementing access controls to combat deepfakes and other AI-enhanced social engineering attacks). Regulatory initiatives on ESG Regulatory initiatives on ESG in the UK In the UK, the FCA published final rules on the UK Sustainability Disclosure Requirements regime in November 2023 which set out new requirements to prepare sustainability-related product and entity level disclosures for certain firms, as well as a new sustainable investment labelling regime and anti-greenwashing rule applicable to all authorised firms. The new anti-greenwashing rule (and associated guidance) came into force on 31 May 2024 and the labelling regime was made available from 31 July 2024, whilst the disclosure regime continues to be implemented on a phased basis from late 2024 until the end of 2026. The FCA also published a consultation in April 2024 on extending the SDR and investment labels regime to portfolio management and expects to publish a Policy Statement and further information about implementation in Q2 2025. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 243 | ## Risk review Supervision and ## regulation The Digital Markets, Competition and Consumers Act 2024 (DMCCA) received Royal Assent in May 2024, introducing major updates to UK competition and consumer protection laws. These reforms included the expansion of the powers held by the Competition and Markets Authority (the ‘CMA’), in relation to digital markets, merger control and antitrust rules, as well as consumer law. Expected to commence in spring 2025, the CMA will be able to directly impose significant fines of up to 10% of global turnover for breaches of consumer protection law. As one of the regulators entrusted with consumer protection in the UK, the CMA has already been actively focusing on misleading environmental claims, with recent investigations and regulatory action taken in relation to the UK fashion industry for example. The CMA has the ability to investigate potential breaches of consumer protection laws by financial services firms also, and the FCA will be able to make recommendations to the CMA to exercise its powers under the DMCCA. The DMCCA also simplifies and enhances the process by which the regulators may obtain enforcement orders and undertakings for breaches of consumer law. The Advertising Standards Authority is responsible for regulating the content of advertisements, sales promotions and direct marketing in the UK, and has also been focusing on greenwashing, including investigating and making rulings against advertisements from financial services firms due to greenwashing In its election manifesto, the Government stated that it would mandate UK regulated financial institutions and FTSE 100 companies to develop and implement credible transition plans that align with the 1.5°C goal of the Paris Agreement. Consequently, it intends to consult in H1 2025 on how best to take that commitment forward. The UK’s Transition Plan Taskforce (TPT) concluded its work on a disclosure framework for transition plans in October 2024, with the International Financial Reporting Standards (IFRS) Foundation now assuming responsibility for the TPT’s disclosure materials. It is widely expected that the work of the TPT will likely form the basis of transition plan disclosure requirements mandated by the Government and UK regulators. In September 2024, the Government published information on its framework to create UK Sustainability Reporting Standards (UK SRS). Subject to an affirmative endorsement decision, and following a consultation process, the Government would create the first two UK Sustainability Reporting Standards, based on those of the International Sustainability Standards Board (ISSB) (IFRS S1 on general requirements for disclosure of sustainability related financial information  and IFRS S2 on climate-related disclosures) and these standards will form part of a wider Sustainability Disclosure Reporting (SDR) framework led by HM Treasury. The Government aims to make its endorsement decisions on the first two UK Sustainability Reporting Standards (SRS) in Q1 2025. As there is some overlap between IFRS S2 and the TPT Disclosure Framework, the FCA plans, through its consultation on implementing UK-endorsed ISSB standards, to consult on strengthening its expectations for transition plan disclosures with reference to the TPT Disclosure Framework, as noted above. In addition, TCFD-aligned reporting requirements apply to UK publicly quoted companies, large private companies and LLPs (in addition to existing TCFD-related reporting requirements under the UK Listing Rules). The UK Government published a consultation in November 2024 seeking views on whether a UK Green Taxonomy would be a useful tool to support investment activities aligned with sustainability ambitions and as a mitigant to greenwashing activity. Regulatory initiatives on ESG in the EU The EU Regulation on Sustainable Finance Disclosures Regulation (SFDR) and related Delegated Regulations require financial market participants (FMPs) to disclose how they integrate environmental, social and governance factors in their investment decisions for certain financial products and to publish principal adverse impact statements. The SFDR applies to entities established in the EU and in-scope products marketed in the EU, regardless of the location of the entity. The SFDR is currently under review by the Commission. The European Securities and Markets Authority has also published guidelines for funds in-scope of SFDR regarding the use of ESG- or sustainability- related terms in their names. In addition, the EU Taxonomy Regulation provides for a general framework for the development of an EU-wide classification system for environmentally sustainable economic activities. It sets mandatory entity-level disclosure requirements for companies which fall under the scope of the EU Accounting Directive, in relation to eligibility and alignment of their business activities with the EU Taxonomy Regulation. The EU Taxonomy Regulation also imposes product level disclosure obligations for FMPs on the extent to which their financial products are Taxonomy aligned or not. The EU Corporate Sustainability Reporting Directive (CSRD) introduces significant sustainability related reporting obligations covering a wide range of topics beyond climate change for various entities, including EU banks and certain non-EU companies and banks (by virtue of having EU listings or significant business in the EU), with reporting to commence on a phased basis from the financial year 2024. Related technical sustainability reporting standards (i.e. the European Sustainability Reporting Standards, or the ‘ESRS’) have been published and are expected to require significant amounts of data collection. Disclosure requirements may apply to companies in respect of their global operations, and not just their operations within the EU. The breadth of the ESRS is significant for financial institutions, as companies to which finance has been provided are considered to be within scope of their value chain, and thus their reporting. The European Commission is currently developing sector-specific reporting standards which are expected to clarify its expectations for reporting by financial institutions, but these are not expected to be released before mid-2026.  The CSRD has also introduced assurance requirements in respect of sustainability reporting, intended to put this reporting on a similar footing to financial reporting audit requirements. Assurance standards are currently being developed by the European Commission and expected in mid-2026, with Member States free to apply national standards for assurance in the meantime. The CRR II established, for certain large financial institutions, a Pillar 3 disclosure framework for information on environmental, social and governance risks, including physical risks and transition risks. Amendments included in the CRR III and CRD VI banking package will extend the scope of these disclosures and the emphasis on ESG, with a number of new ESG-related requirements, including the development of mandatory prudential transition plans and new supervisory powers for competent authorities specifically relating to ESG risk, including assessment of prudential transition plans and ESG risk governance and risk management processes now being part of the Supervisory Review and Evaluation Process.. The ECB has made, and continues to regard, the supervision of the approach of institutions to ESG risk a priority. In July 2024, the Directive on Corporate Sustainability Due Diligence (CSDDD) entered into force, and will require certain EU and non-EU entities to carry out due diligence in relation to their own operations and ‘chain of activities’, in order to identify and prevent, bring to an end or mitigate the actual and potential adverse impact of their own operations, the operations of their subsidiaries or of their business partners on human rights and the environment. For regulated financial undertakings, the Directive covers own operations and the upstream value chain but not the activities of their downstream business partners that receive their financial services and products. However, the Directive foresees that the EU Commission should submit a report to the EU Parliament and the Council on the necessity to lay down additional sustainability due diligence requirements tailored to regulated financial undertakings by July 2026. Moreover, entities in scope of the Directive will also be required to adopt and put into effect a climate change mitigation transition plan with specific requirements. The Commission will publish guidance on the transition plan requirements. The CSDDD is a particularly significant measure, with failure to | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 244 | ## Risk review Supervision and ## regulation comply with obligations under the Directive potentially giving rise to the imposition of administrative fines based on net worldwide turnover and civil liability.  These obligations will apply after transposition into national laws in each EU Member State on a phased basis from July 2027.  The EU is currently considering proposals to review some parts of CSDDD and other sustainability related legislation, but any proposed amendments remain to be seen. Regulatory initiatives on ESG in the US The Barclays Bank Group may be impacted by various ESG regulatory and legislative developments in the US at both the federal and state level. In March 2024, the SEC adopted rules requiring U.S.-listed companies (including foreign private issuers such as Barclays PLC and Barclays Bank PLC) to disclose extensive climate-related information. In April 2024, the SEC issued an order voluntarily staying these new climate-related disclosure rules pending judicial review following a number of legal challenges to the new rules in U.S. courts. The outcome of these legal challenges remains uncertain and the fate of these rules may be impacted by the change in presidential administrations . In addition, bills proposed or adopted by the legislatures of certain US states may impose different climate related-disclosure (such as the California climate disclosure laws) or other ESG-related requirements, including anti-ESG provisions, on businesses operating in such US states. Examples of recent climate related-disclosure legislation include the Climate Corporate Data Accountability Act (SB-253) and the Greenhouse Gases: Climate-Related Financial Risk bill (SB-261) adopted in California in 2023 (expected to apply commencing in 2026), and the Climate Corporate Data Accountability Act (S.B. 897) proposed in the state of New York in 2023. As an example of anti-ESG bills, in 2021, Texas adopted anti-boycott legislation prohibiting Texas state entities from entering into contracts with companies that boycott energy companies. Barclays is monitoring such legislative developments and their impact on Barclays’ US operations and reporting obligations. Sanctions and financial crime The UK Bribery Act 2010 introduced a new form of corporate criminal liability focused broadly on a company’s failure to prevent bribery on its behalf. The Criminal Finances Act 2017 introduced new corporate criminal offences of failing to prevent the facilitation of UK and overseas tax evasion. In 2023, the Economic Crime and Corporate Transparency Act 2023 became law. This creates a new offence, in force from 1 September 2025, of failing to prevent a person associated with the Barclays Bank Group from committing fraud for the benefit of the Barclays Bank Group. In addition, this legislation also extends the concept of corporate criminal liability. These pieces of legislation have broad application and in certain circumstances may have extraterritorial impact on entities, persons or activities located outside the UK, including Barclays Bank PLC’s subsidiaries outside the UK. The UK Bribery Act requires the Barclays Bank Group to have adequate procedures to prevent bribery which, due to the extraterritorial nature of the Act, makes this both complex and costly. Additionally, the Criminal Finances Act requires the Barclays Bank Group to have reasonable procedures in place to prevent the criminal facilitation of tax evasion by persons acting for, or on behalf of, the Barclays Bank Group. The Economic Crime and Corporate Transparency Act similarly requires the Barclays Bank Group to have reasonable procedures in place to prevent a person associated with the Barclays Bank Group from committing fraud. The Sanctions and Anti-Money Laundering Act 2018 (the Sanctions Act) became law in the UK in 2018. Following the UK’s withdrawal from the EU, the Sanctions Act allowed for the adoption of an autonomous UK sanctions regime which came into force in 2021, as well as a more flexible licensing regime post-Brexit. This regime applies within the UK and in relation to the conduct of all UK persons wherever they are in the world; it also applies to overseas branches of UK companies (including the Barclays Bank PLC New York branch). Within the EU, there is a system of autonomous sanctions by which the European Council adopts a decision made by the EU’s Common Foreign and Security Policy. The measures stated in the Council decision are either implemented at the EU level, by way of Regulation, or at a national level in Member States. Regulations are binding and directly effective throughout the EU. Each measure will specify the territorial scope of the relevant sanctions but these can apply broadly within the territory of any EU Member States and to EU nationals wherever they are located as well as to third country branches of EU companies. The EU’s anti-money laundering regime has been implemented through a series of the Fourth to Sixth Anti-Money Laundering Directives, which Member States are then required to transpose into their local law – the Fourth and Fifth Money Laundering Directives (2015/849 and 2018/843) set out the current requirements for Member States to transpose in respect of AML. The EU has introduced a new Sixth Anti-Money Laundering Directive 2024/1640, which will repeal and replace the previous Directives and which Member States will be required to implement by 2027. In addition the EU has passed the Anti-Money Laundering Regulation (EU) 2024/1624 which will have direct effect in Member States, with most provisions in force from 2027. Furthermore, the 2015/849 and the Fifth Anti-Money Laundering Agency Regulation (EU) 2024/1620 establishes the Authority for Anti- Money Laundering and Countering the Financing of Terrorism (AMLA) which will have direct supervisory powers over the 40 most systemic financial institutions in the EU and will indirectly impact other market parties. Further changes to Directive (EU) 2018/849 are being proposed through the Sixth Anti-Money Laundering Directive, and a package of further reforms are currently under discussion. In the US, the Bank Secrecy Act, the USA PATRIOT Act 2001, the Anti-Money Laundering Act of 2020 and regulations thereunder contain numerous anti-money laundering and anti-terrorist financing requirements for financial institutions. In addition, the Barclays Bank Group is subject to the US Foreign Corrupt Practices Act, which prohibits, among other things, corrupt payments to foreign government officials. It is also subject to various economic sanctions laws, regulations and executive orders administered by the US government, which prohibit or restrict some or all business activities and other dealings with or involving certain individuals, entities, groups, countries and territories. In some cases, US state and federal regulations addressing sanctions, money laundering and other financial crimes may impact entities, persons or activities located or undertaken outside the US, including Barclays Bank PLC and its subsidiaries. US government authorities have aggressively enforced these laws, and expanded authorities threatening the imposition of sanctions, against financial institutions in recent years. As a result of the conflict in Ukraine, there has been an increased regulatory focus on sanctions compliance in various jurisdictions, including the US, UK and EU. Failure of a financial institution to ensure adherence to such laws could have serious legal, financial and reputational consequences for the institution. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 245 | ## Financial statements ## Contents Detailed analysis of our financial statements, independently audited and providing in-depth disclosure of the financial performance of the Barclays Bank PLC. | | | | | | --- | --- | --- | --- | | | | | | | [Consolidated financial statements](#ia16d0659cd524c01ae655d82fa382c3d_409) | | Page | Note | | | | | | | | ▪ [Independent Auditor’s Report](#ia16d0659cd524c01ae655d82fa382c3d_412) | [246](#ia16d0659cd524c01ae655d82fa382c3d_412) | | | | ▪ [Consolidated income statement](#ia16d0659cd524c01ae655d82fa382c3d_418) | [268](#ia16d0659cd524c01ae655d82fa382c3d_418) | | | | ▪ [Consolidated statement of comprehensive income](#ia16d0659cd524c01ae655d82fa382c3d_424) | [269](#ia16d0659cd524c01ae655d82fa382c3d_424) | | | | ▪ [Consolidated balance sheet](#ia16d0659cd524c01ae655d82fa382c3d_427) | [270](#ia16d0659cd524c01ae655d82fa382c3d_427) | | | | ▪ [Consolidated statement of changes in equity](#ia16d0659cd524c01ae655d82fa382c3d_430) | [271](#ia16d0659cd524c01ae655d82fa382c3d_430) | | | | ▪ [Consolidated cash flow statement](#ia16d0659cd524c01ae655d82fa382c3d_436) | [273](#ia16d0659cd524c01ae655d82fa382c3d_436) | | | [Parent company accounts](#ia16d0659cd524c01ae655d82fa382c3d_442) | ▪ [Parent company accounts](#ia16d0659cd524c01ae655d82fa382c3d_442) | [274](#ia16d0659cd524c01ae655d82fa382c3d_442) | | | [Notes to the financial statements](#ia16d0659cd524c01ae655d82fa382c3d_439) | | | | | | | | | | | ▪ Material [accounting policies](#ia16d0659cd524c01ae655d82fa382c3d_463) | [278](#ia16d0659cd524c01ae655d82fa382c3d_463) | 1 | | | | | | | [Financial performance and returns](#ia16d0659cd524c01ae655d82fa382c3d_466) | ▪ [Segmental reporting](#ia16d0659cd524c01ae655d82fa382c3d_466) | [282](#ia16d0659cd524c01ae655d82fa382c3d_466) | 2 | | | ▪ [Net interest income](#ia16d0659cd524c01ae655d82fa382c3d_478) | [284](#ia16d0659cd524c01ae655d82fa382c3d_478) | 3 | | | ▪ [Net fee and commission income](#ia16d0659cd524c01ae655d82fa382c3d_481) | [284](#ia16d0659cd524c01ae655d82fa382c3d_481) | 4 | | | ▪ [Net trading income](#ia16d0659cd524c01ae655d82fa382c3d_484) | [287](#ia16d0659cd524c01ae655d82fa382c3d_484) | 5 | | | ▪ [Net investment income/(expense](#ia16d0659cd524c01ae655d82fa382c3d_487)) | [287](#ia16d0659cd524c01ae655d82fa382c3d_487) | 6 | | | ▪ [Operating expenses](#ia16d0659cd524c01ae655d82fa382c3d_490) | [287](#ia16d0659cd524c01ae655d82fa382c3d_490) | 7 | | | ▪ [Credit impairment charges](#ia16d0659cd524c01ae655d82fa382c3d_493)/(releases) | [288](#ia16d0659cd524c01ae655d82fa382c3d_493) | 8 | | | ▪ [Tax](#ia16d0659cd524c01ae655d82fa382c3d_496) | [292](#ia16d0659cd524c01ae655d82fa382c3d_496) | 9 | | | ▪ [Dividends on ordinary shares and preference shares](#ia16d0659cd524c01ae655d82fa382c3d_526) | [296](#ia16d0659cd524c01ae655d82fa382c3d_526) | 10 | | | | | | | [Assets and liabilities held at fair value](#ia16d0659cd524c01ae655d82fa382c3d_529) | ▪ [Trading portfolio](#ia16d0659cd524c01ae655d82fa382c3d_529) | [297](#ia16d0659cd524c01ae655d82fa382c3d_529) | 11 | | | ▪ [Financial assets at fair value through the income statement](#ia16d0659cd524c01ae655d82fa382c3d_535) | [297](#ia16d0659cd524c01ae655d82fa382c3d_535) | 12 | | | ▪ [Derivative financial instruments](#ia16d0659cd524c01ae655d82fa382c3d_547) | [299](#ia16d0659cd524c01ae655d82fa382c3d_547) | 13 | | | ▪ [Financial assets at fair value through other comprehensive income](#ia16d0659cd524c01ae655d82fa382c3d_610) | [312](#ia16d0659cd524c01ae655d82fa382c3d_610) | 14 | | | ▪ [Financial liabilities designated at fair value](#ia16d0659cd524c01ae655d82fa382c3d_616) | [312](#ia16d0659cd524c01ae655d82fa382c3d_616) | 15 | | | ▪ [Fair value of financial instruments](#ia16d0659cd524c01ae655d82fa382c3d_628) | [313](#ia16d0659cd524c01ae655d82fa382c3d_628) | 16 | | | ▪ [Offsetting financial assets and financial liabilities](#ia16d0659cd524c01ae655d82fa382c3d_655) | [326](#ia16d0659cd524c01ae655d82fa382c3d_655) | 17 | | [Assets at amortised cost and other](#ia16d0659cd524c01ae655d82fa382c3d_661) [investments](#ia16d0659cd524c01ae655d82fa382c3d_661) | ▪ [Property, plant and equipment](#ia16d0659cd524c01ae655d82fa382c3d_661) | [328](#ia16d0659cd524c01ae655d82fa382c3d_661) | 18 | | ▪ [Leases](#ia16d0659cd524c01ae655d82fa382c3d_670) | [329](#ia16d0659cd524c01ae655d82fa382c3d_670) | 19 | | | ▪ [Goodwill and intangible assets](#ia16d0659cd524c01ae655d82fa382c3d_691) | [331](#ia16d0659cd524c01ae655d82fa382c3d_691) | 20 | | | | | | | [Accruals, provisions, contingent](#ia16d0659cd524c01ae655d82fa382c3d_706) [liabilities and legal proceedings](#ia16d0659cd524c01ae655d82fa382c3d_706) | ▪ [Other liabilities](#ia16d0659cd524c01ae655d82fa382c3d_706) | [336](#ia16d0659cd524c01ae655d82fa382c3d_706) | 21 | | ▪ [Provisions](#ia16d0659cd524c01ae655d82fa382c3d_712) | [336](#ia16d0659cd524c01ae655d82fa382c3d_712) | 22 | | | ▪ [Contingent liabilities and commitments](#ia16d0659cd524c01ae655d82fa382c3d_724) | [338](#ia16d0659cd524c01ae655d82fa382c3d_724) | 23 | | | ▪ [Legal, competition and regulatory matters](#ia16d0659cd524c01ae655d82fa382c3d_736) | [338](#ia16d0659cd524c01ae655d82fa382c3d_736) | 24 | | | | | | | [Capital instruments, equity and reserves](#ia16d0659cd524c01ae655d82fa382c3d_739) | ▪ [Subordinated liabilities](#ia16d0659cd524c01ae655d82fa382c3d_739) | [343](#ia16d0659cd524c01ae655d82fa382c3d_739) | 25 | | | ▪ [Ordinary shares, preference shares and other equity](#ia16d0659cd524c01ae655d82fa382c3d_772) | [347](#ia16d0659cd524c01ae655d82fa382c3d_772) | 26 | | | ▪ [Reserves](#ia16d0659cd524c01ae655d82fa382c3d_778) | [349](#ia16d0659cd524c01ae655d82fa382c3d_778) | 27 | | | | | | | [Employee benefits](#ia16d0659cd524c01ae655d82fa382c3d_784) | ▪ [Staff costs](#ia16d0659cd524c01ae655d82fa382c3d_784) | [350](#ia16d0659cd524c01ae655d82fa382c3d_784) | 28 | | | ▪ [Share-based payments](#ia16d0659cd524c01ae655d82fa382c3d_787) | [350](#ia16d0659cd524c01ae655d82fa382c3d_787) | 29 | | | ▪ [Pensions and post-retirement benefits](#ia16d0659cd524c01ae655d82fa382c3d_790) | [352](#ia16d0659cd524c01ae655d82fa382c3d_790) | 30 | | | | | | | [Scope of consolidation](#ia16d0659cd524c01ae655d82fa382c3d_805) | ▪ [Principal subsidiaries](#ia16d0659cd524c01ae655d82fa382c3d_805) | [360](#ia16d0659cd524c01ae655d82fa382c3d_805) | 31 | | | ▪ [Structured entities](#ia16d0659cd524c01ae655d82fa382c3d_811) | [361](#ia16d0659cd524c01ae655d82fa382c3d_811) | 32 | | | ▪ [Investments in associates and joint ventures](#ia16d0659cd524c01ae655d82fa382c3d_814) | [364](#ia16d0659cd524c01ae655d82fa382c3d_814) | 33 | | | ▪ [Securitisations](#ia16d0659cd524c01ae655d82fa382c3d_817) | [365](#ia16d0659cd524c01ae655d82fa382c3d_817) | 34 | | | ▪ [Assets pledged, collateral received and assets transferred](#ia16d0659cd524c01ae655d82fa382c3d_820) | [366](#ia16d0659cd524c01ae655d82fa382c3d_820) | 35 | | | | | | | [Other disclosure matters](#ia16d0659cd524c01ae655d82fa382c3d_841) | ▪ [Related party transactions and Directors’ remuneration](#ia16d0659cd524c01ae655d82fa382c3d_841) | [369](#ia16d0659cd524c01ae655d82fa382c3d_841) | 36 | | | ▪ Disposal of subsidiaries | [372](#ia16d0659cd524c01ae655d82fa382c3d_850) | 37 | | | ▪ [Auditor’s remuneration](#ia16d0659cd524c01ae655d82fa382c3d_856) | [372](#ia16d0659cd524c01ae655d82fa382c3d_856) | 38 | | | ▪ [Assets and liabilities included in disposal group classified as held for sale](#ia16d0659cd524c01ae655d82fa382c3d_862) | [372](#ia16d0659cd524c01ae655d82fa382c3d_862) | 39 | | | ▪ Post balance sheet | [373](#ia16d0659cd524c01ae655d82fa382c3d_549755829035) | 40 | | | ▪ [Related undertakings](#ia16d0659cd524c01ae655d82fa382c3d_880) | [374](#ia16d0659cd524c01ae655d82fa382c3d_880) | 41 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 246 | ## Independent Auditor’s report ## Independent Auditor’s report to the members of Barclays Bank PLC | | | --- | | | | 1. OUR OPINION IS UNMODIFIED In our opinion: • the financial statements of Barclays Bank PLC give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2024, and of the Group’s and the Parent Company's profit for the year then ended; • the Group financial statements have been properly prepared in accordance with UK-adopted international accounting standards; • the Parent Company financial statements have been properly prepared in accordance with UK-adopted international accounting standards as applied in accordance with the provisions of the Companies Act 2006; and • the Group and Parent Company financial statements have been prepared in accordance with the requirements of the Companies Act 2006. | W #### HAT OUR OPINION COVERS We have audited the Group and Parent Company financial statements of Barclays Bank PLC ("the Company") for the year ended 31 December 2024 (FY24) included in the Annual Report and accounts, which comprise: | | | | --- | --- | | | | | Group (Barclays Bank PLC and its subsidiaries) | Parent Company (Barclays Bank PLC) | | Consolidated income statement | Balance sheet | | Consolidated statement of comprehensive income | Statement of changes in equity | | Consolidated balance sheet | Cash flow statement | | Consolidated statement of changes in equity | | | Consolidated cash flow statement | | | Notes 1 to 41 of the Consolidated Financial Statements, including the summary of material accounting policies | | #### ADDITIONAL OPINION IN RELATION TO IFRS AS ADOPTED BY THE EUROPEAN UNION As explained in note 1 to the Group financial statements, the Group and the Parent Company, in addition to complying with its legal obligation to apply UK-adopted international accounting standards, has also applied International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union (“IFRSs as adopted by the EU”). In our opinion the group and the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the EU. #### BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion and matters included in this report are consistent with those discussed and included in our reporting to the Board Audit Committee (“BAC”). We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 247 | ## Independent Auditor’s report ## Independent Auditor’s report to the members of Barclays Bank PLC 2. #### OVERVIEW OF OUR AUDIT | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Key Audit Matters | | | | | | FACTORS DRIVING OUR VIEW OF RISKS | Following our FY 23 audit and considering developments affecting the Barclays Bank PLC Group since then, we have updated our risk assessment. The macroeconomic environment continues to drive our risk assessment. Although the macroeconomic environment has stabilised, with the interest rate across most major economies having seen small reductions in FY24, the relatively higher interest rate environment is expected to remain for longer. This, combined with the continued geopolitical uncertainties as well as the expected inflationary pressure, continue to contribute to sustained affordability challenges. This economic uncertainty has brought both pressures and opportunities. The prolonged higher interest rate environment continues to contribute positively to net interest income and has driven increased competition for deposits. FY24 is the first year of the three year strategic plan that Barclays PLC (of which Barclays Bank PLC is a subsidiary) announced to the market in their February 2024 Investor Update. We have considered the impact of the pressure to meet targets set out in the Investor Update, as part of our risk assessment. The more stable macroeconomic environment, along with fewer model re-developments, have lowered the risks associated with estimating impairment charges for credit losses. As part of our risk assessment, we have maintained our focus on future economic assumptions used by the Group in its key estimates both at the year end and, where relevant, on a forward-looking basis. Our risk assessment also considered instances of non-compliance with laws and regulations (including open enforcement actions against the Group) and specifically those that could reasonably be expected to have a material effect on the financial statements. We considered management’s assessment of how these occurred and their risk assessment of whether the risk could be more pervasive. | | | | FY24 | Item | | | | Impairment allowance on loans and advances at amortised cost, including off- balance sheet elements of the allowance | | | | 4.1 | | | | Valuation of financial instruments held at fair value | | | | 4.2 | | | | Valuation of the gross defined benefit pension obligation in respect of the UK retirement fund ('UKRF') | | | | 4.3 | | | | User access management | | | | 4.4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 248 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | OUR USE OF SPECIALISTS AND INNOVATION | Using the work of specialists and specific team members with expertise in a specialised area of accounting or auditing: We used our specialists and specific team members with expertise in a specialised area of accounting or auditing to assist us in various aspects of our audit. This includes, for example: – Credit risk modellers to evaluate the accuracy of the ECL models – Economics specialists to evaluate the reasonableness of macro-economic variables and scenarios used in the determination of the ECL provisions – Valuation specialist to Independently re-price a selection of fair value financial instruments and challenge management on the valuations where they were outside of our acceptable range, as well as challenging the appropriateness of significant models and methodologies used in calculating fair values, risk exposures and in calculating FVAs and XVAs – Corporate finance valuation specialists to challenge the methodology underpinning, and certain of the assumptions used, in the impairment assessment of goodwill and intangible assets and the carrying value of subsidiaries – Actuarial pensions specialists to challenge the key assumptions used in the valuation of the defined benefit obligation – Tax specialists to evaluate the completeness and accuracy of the tax charge, effective tax rate and uncertain tax positions – IT auditors to evaluate the  general IT controls and automated business controls – Data analytics specialists to assist with the audit procedures to evaluate the completeness of the general ledger and to identify high-risk journals. Innovation in the audit: We are committed to driving innovation and the increased use of technology in the audit procedures. For the  FY24 audit, we continued to deploy a large number of data and analytics tools across our audit. We have begun to introduce Artificial Intelligence based solutions into our audit procedures. We have also continued to innovate our audit of the estimation of expected credit losses through independently recalculating a selection of model assumptions using more recent data for certain portfolios. This is used to develop a range for ECL which we then compare to management’s own point estimate. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | BOARD AUDIT COMMITTEE (“BAC”) INTERACTION | During the year, the BAC met 16 times. KPMG are invited to attend all BAC meetings and are provided with an opportunity to meet with the BAC in private sessions without the Executive Directors being present. For each Key Audit Matter, we have set out communications with the BAC in section 4, including matters that required particular judgement. The matters included in the BAC report on pages 24 to 25 are materially consistent with our observations of those meetings. In addition, KPMG are invited to attend the Board Risk Committee meetings. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | OUR INDEPENDENCE | We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements including the FRC Ethical Standard as applied to public interest entities. We have not performed any non-audit services during FY24 or subsequently which are prohibited by the FRC Ethical Standard. We were first appointed as auditor by the shareholders for the year ended 31 December 2017. The period of total uninterrupted engagement is for the eight financial years ended 31 December 2024. The Group lead engagement partner is required to rotate after five years. This is the third set of Group Financial Statements signed by Stuart Crisp. He will be required to rotate off after the FY26 audit. The average tenure of component engagement partners,  is three years, with the shortest being their first year of involvement and longest being four years. | | | | Total audit fee | | £42m | | | | | | Audit related fees (including interim review) | | £10m | | | | | | Other services | | £6m | | | | | | Non-audit fee as a % of total audit and audit related fee % | | 12% | | | | | | Date first appointed | | 31 March 2017 | | | | | | Uninterrupted audit tenure | | 8 years | | | | | | Next financial period which require a tender | | 31 December 2027 | | | | | | Tenure of Group lead engagement partner | | 3 years | | | | | | Average tenure of component engagement partners | | 3 years | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 249 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | MATERIALITY (ITEM 6 BELOW) | The scope of our work is influenced by our view of materiality and our assessed risk of material misstatement. We have determined overall materiality for the Barclays Bank PLC Group Financial Statements as a whole to be £240m (FY23: £230m), and for the Parent Company financial statements as a whole at £150m (FY23: £140m). We determined that profit before tax (PBT) remains the key benchmark for the Barclays Bank PLC Group. We have considered the impact of the Investor Update in February 2024 and while this reset of expectations and targets will add incremental pressure on the Bank to successfully execute over time, we have concluded that this does not impact our materiality assessment for the audit of Barclays Bank PLC at this point. For FY24, we based our materiality on normalised profit before tax of £5,002m, of which it represents 4.8% (FY23: 4.9%). We adjusted PBT in both FY24 and FY23 for items which did not represent the normal, continuing operations of the Group. Materiality for the Parent Company financial statements was set at £150m (2023: £140m), which is the component materiality for the Parent Company determined by the group audit engagement team. This is lower than the materiality we would otherwise have determined with reference to a benchmark of net assets of which it represents 0.3% (FY23: 0.3%). | | | Audit materiality.jpg | | | | | | | | | | | | | | | | | | | | | | | | | | | | GPMGroup Performance Materiality HCMHighest Component Materiality HCMHighest Component Materiality PLC            Parent Company Materiality AMPTAudit Misstatement Posting Threshold | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 250 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | GROUP SCOPE (ITEM 7 BELOW) | We have performed risk assessment and planning procedures to determine which of the Group’s components are likely to include risks of material misstatement to the Group financial statements, the type of audit procedures to be performed at these components and the extent of involvement required from component auditors around the world for the purpose of our opinion on the Group Financial Statements. We have also considered the extent to which the Group has established a Global Capability Centre ("GCC") in India. The outputs from the GCC are included in the financial information of the reporting components and so the India operations are not considered to be a separate component. The five components within the scope of our work accounted for the percentages illustrated opposite. We have performed certain audit procedures centrally across the Group, set out in more detail in Section 7. In addition, we have performed Group level analysis on the remaining components to determine whether further risks of material misstatement exist in those components. We consider the scope of our audit, as communicated to the Board Audit Committee, to be an appropriate basis for our audit opinion. | | | Coverage of Group financial statements We performed audit procedures in relation to all components identified. Components that we deemed quantitatively significant accounted for 92% of the total income and expenses that made up Group total income: Group Total income.jpg We performed audit procedures in relation to all components identified. Components that we deemed quantitatively significant accounted for 92% of Group Total assets: Group Total assets.jpg | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 251 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | THE IMPACT OF CLIMATE CHANGE ON OUR AUDIT | In planning our audit, we have considered the potential impact of risks arising from climate change on the Group’s business and its financial statements. The Group has set out its ambition to be a net zero bank by 2050. Further information is provided in the Group’s Climate and Sustainability report which has been incorporated into the 2024 Annual Report on pages [141](#ia16d0659cd524c01ae655d82fa382c3d_154) to 144. Climate change risks, opportunities and the Group’s own commitments and changing regulations could have a significant impact on the Group’s business and operations. There is the possibility that climate change risks, both physical and transitional, could affect financial statement balances, through estimates such as credit risk and market risk. There is enhanced narrative in the Annual Report on climate matters. As part of our audit, we performed a risk assessment of the impact of climate change risk and the commitments made by the Group in respect of climate change on the financial statements and our audit approach. As a part of this we held discussions with our own climate change professionals to challenge our risk assessment. In doing this we performed the following: – Understanding management’s processes: we made enquiries to understand management’s assessment of the potential impact of climate change risk on the Group’s Annual Report and Accounts and the Group’s preparedness for this. As a part of this process we made enquiries to understand management’s risk assessment process as it relates to possible effects of climate change on the Annual Report and Accounts including the way in which the accounting policies of the Group (including those relating to products with specific climate features) are updated to reflect climate change risks. We also read and discussed with management the quantitative analysis prepared by the Group to support its assessment of the impact of climate risk on credit risk. – Corporate credit risk: we assessed how the Group considers the impact of climate risk on corporate counterparties through our individual loan assessments where, for performing counterparties, we assessed how climate change risk impacts certain counterparties within the commercial bank, including the impact on their credit rating as applicable. The focus of our procedures was on certain counterparties who operate in industries with greater exposure to climate risk - the energy, transportation, materials and buildings, agriculture, food and forest product sectors. – Market risk: as part of our risk assessment, we incorporated a consideration of the climate change impact on unobservable inputs used in the valuation of certain financial instruments in elevated risk sectors including energy, metals and mining. – Annual report narrative: we made enquiries of management to understand the process by which climate related narrative is developed including the primary sources of data used and the governance process in place over the narrative. As a part of our risk assessment, we read the climate related information in the front half of the Annual Report and considered consistency with the financial statements and our audit knowledge. On the basis of the procedures performed above, we concluded that, while climate change posed a risk to the determination of asset values in the current year, the risk was not significant when we considered the nature of the assets and the relevant contractual terms. As a result, there was no material impact from climate change on our key audit matters. | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 252 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC 3. #### GOING CONCERN The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Group or the Parent Company or to cease their operations, and as they have concluded that the Group's and the Parent Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”). | | | | --- | --- | | | | | | | | GOING CONCERN | | | We used our knowledge of the Group and Parent Company, the financial services industry, and the general economic environment to identify the inherent risks to the business model and analysed how those risks might affect the Group’s and Parent Company’s financial resources or ability to continue operations over the going concern period. The risks that we considered most likely to adversely affect the Group’s and Parent Company’s available financial resources over this period were: – the availability of funding and liquidity in the event of a market wide stress scenario; and – the impact on regulatory capital requirements in the event of an economic slowdown. We considered whether these risks could plausibly affect the availability of financial resources in the going concern period by comparing severe, but plausible downside scenarios that could arise from these risks individually and collectively against the level of available financial resources indicated by the Group’s financial forecasts. Our procedures also included an assessment of whether the going concern disclosure in note 1 to the financial statements gives a complete and accurate description of the Directors’ assessment of going concern. Accordingly, based on those procedures, we found the directors' use of the going concern basis of accounting without any material uncertainty for the Group and Parent Company to be acceptable. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Group or the Parent Company will continue in operation. | Our conclusions ▪ We consider that the directors’ use of the going concern basis of accounting in the preparation of the Group’s and Parent Company’s financial statements is appropriate; ▪ We have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Group’s or Parent Company's ability to continue as a going concern for the going concern period; and ▪ We have nothing material to add or draw attention to in relation to the directors’ statement in note 1 to the financial statements on the use of the going concern basis of accounting with no material uncertainties that may cast significant doubt over the Group and Parent Company’s use of that basis for the going concern period, and we found the going concern disclosure in note 1 to be adequate. | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 253 | ## Independent Auditor’s report ## Independent Auditor’s report to the members of Barclays Bank PLC 4. #### KEY AUDIT MATTERS | | | --- | | | | What we mean | Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on: ▪ the overall audit strategy; ▪ the allocation of resources in the audit; and ▪ directing the efforts of the engagement team. | | | --- | | | | | We include below the Key Audit Matters in decreasing order of audit significance together with our key audit procedures to address those matters and our results from those procedures. These matters were addressed, and our results are based on procedures undertaken for the purpose of our audit of the financial statements as a whole. We do not provide a separate opinion on these matters. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | 4.1. IMPAIRMENT ALLOWANCES ON LOANS AND ADVANCES AT AMORTISED COST, INCLUDING OFF-BALANCE SHEET ELEMENTS OF THE ALLOWANCE | | | | | | | | | | | | | | Financial Statement Elements | | | Our assessment of risk vs FY23 | | Our results | | | | | | | | | | FY24 | FY23 | | | | | Impairment allowances on loans and advances at amortised cost, including off- balance sheet elements of the allowance – Group (see page 158) | £3.9bn | £4.5bn | | Our assessment is that the risk has decreased since FY23. This is primarily due to fewer model re- developments by management and the moderation of macroeconomic uncertainty. | FY24: Acceptable FY23: Acceptable | | Impairment allowances on loans and advances at amortised cost – Parent (see page 165) | £0.8bn | £1.1bn | | | | | Impairment allowances on loan commitments and financial guarantee contracts – Parent (see page 171) | £0.3bn | £0.4bn | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 254 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Description of the Key Audit Matter | | | Our response to the risk | | | | Subjective estimate The estimation of expected credit losses (“ECL”) on financial instruments involves significant judgement and estimates. The key areas where we identified greater levels of management judgement and therefore increased levels of audit focus in the Group’s estimation of ECL are: • Model estimations – Inherently judgemental modelling techniques and assumptions are used to estimate ECL which involves either determining Probability of Default (“PD”), Loss Given Default (“LGD”), and Exposure at Default (“EAD”) or an appropriate proxy. ECL may be inappropriate if certain models or underlying assumptions do not accurately predict defaults or recoveries over time, become out of line with wider industry experience, or fail to reflect the credit risk of financial assets. As a result, certain IFRS 9 models and model assumptions are the key drivers of complexity and uncertainty in the Group’s calculation of the ECL estimate. • Economic scenarios – IFRS 9 requires the Group to measure ECL on an unbiased forward-looking basis reflecting a range of future economic conditions. Significant management judgement is applied in determining the forward-looking economic scenarios used as an input to calculate ECL, the associated scenario probability weightings, and the key economic variables that drive the scenarios. There is also a high level of complexity of models used to derive the probability weightings. • Qualitative adjustments – Adjustments to the model-driven ECL results are raised by management to address known impairment model limitations, emerging trends, or risks not captured by models. They represent approximately 0.6% of the ECL. These adjustments are inherently uncertain, significant and subjective management judgement is involved in identifying and estimating certain post model adjustments (“PMA’s”) and management overlays. As such, the identification and estimation of certain qualitative adjustments represent a significant risk of error and fraud. The effect of these matters is that, as part of our risk assessment, we determined that the impairment of loans and advances to customers including off-balance sheet elements of the allowance has a high degree of estimation uncertainty, with a potential range of reasonable outcomes greater than our materiality for the financial statements as a whole, and possibly many times that amount. The credit risk sections of the financial statements (pages [158](#ia16d0659cd524c01ae655d82fa382c3d_187) to 208) disclose the sensitivities estimated by the Group. | | | Our procedures to address the risk included: Risk assessment: We performed granular and detailed risk assessment procedures over the entirety of the loan and advances at amortised cost including off-balance sheet elements of the allowance within the Group’s financial statements. As part of these risk assessment procedures, we identified the portfolios associated with a risk of material misstatement including those arising from significant judgements over the estimation of ECL either due to inputs, methods or assumptions. Control testing: We performed end to end process walkthroughs to identify the key systems, applications and controls used in the ECL processes. We tested the relevant manual, general IT and application controls over key systems used in the ECL process. Key aspects of our controls testing involved evaluating the design and implementation and testing the operating effectiveness of the key controls over the: • completeness and accuracy of the key inputs into the IFRS 9 impairment models; • application of the staging criteria; • model validation, implementation and monitoring; • completeness, authorisation and calculation of post model adjustments and management overlays; • selection and implementation of economic variables and the controls over the economic scenario selection and probabilities; and • credit reviews that determine customer risk ratings for a population of wholesale customers, including a risk-based selection. Our credit risk modelling expertise: We involved our own credit risk modellers who assisted in the following: • evaluating the Group’s impairment methodologies for compliance with IFRS 9; • assessing the appropriateness of certain assumptions by inspecting management’s documented methodology for how the assumption is estimated and reperforming management's workings in accordance with the documented methodology; • inspecting model code for the calculation of certain components of the ECL model to assess its consistency with the Group’s model methodology; • evaluating whether model changes (including updated model code), for a selection of models which were changed or updated during the year, were appropriate by assessing the updated model methodology against the applicable accounting standard; • reperforming the calculation of certain adjustments to assess consistency with the qualitative adjustment methodologies; • assessing and reperforming, for a selection of models, the reasonableness of the model predictions by comparing them against actual results and evaluating the resulting differences; • evaluating the model output for a selection of models by inspecting the corresponding model functionality and independently implementing the model by rebuilding the model code and comparing our independent output with management’s output; and • independently recalculating a selection of model assumptions using more recent data for certain portfolios. This is used to develop a range for ECL which is compared to management’s point estimate. Our economics expertise: We involved our own economic specialists who assisted us in: • assessing the reasonableness of the Group’s methodology and models for determining the economic scenarios used and the probability weightings applied to them; • assessing key economic variables which included comparing samples of economic variables to external sources; and • assessing the overall reasonableness of the economic forecasts by comparing the Group’s forecasts to our own modelled forecasts. Other test of details: Key aspects of our audit procedures in addition to those set out above involved: • agreeing the key inputs in the ECL calculations to underlying source documentation; | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 255 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure quality The disclosures regarding the Group’s application of IFRS 9, including the sensitivity disclosures, are key to explaining the key judgements and material inputs to the IFRS 9 ECL results | | | • selecting a sample of post model adjustments, considering the size and complexity of management overlays, to assess the reasonableness of the adjustments by challenging key assumptions, inspecting and reperforming the calculation methodology and tracing a sample of the data used back to source data; • assessing the completeness of post model adjustments identified based on our knowledge gained from other risk-assessment and substantive audit procedures; and • selecting a sample of credit reviews to assess the reasonableness of customer risk ratings by challenging key judgements and considering disconfirming or contradictory evidence. Assessing transparency: We assessed whether the appropriateness of the disclosures in relation to the uncertainty which exists when determining the ECL, including the sensitivity disclosure. In addition, we assessed whether the disclosures of the key judgements and assumptions was appropriate, in the context of the relevant | | | | | | | | | | | Communications with the Barclays Bank PLC Board Audit Committee Our discussions with and reporting to the Board Audit Committee included: • The effectiveness of the control environment operating over the calculation of the ECL provisions; • The determination and utilisation of judgemental post model adjustments recognised; • Model monitoring results and post model adjustments made; • Management’s economic forecast and associated scenario probability weights; and • The disclosures made to explain ECL, including explaining the resulting estimation uncertainty. Areas of particular auditor judgement We identified the following as the areas of particular auditor judgement: • The appropriateness of the model estimations and qualitative adjustments, including completeness of these adjustments, recorded to the model driven ECL calculations to reflect the current economic environment. Our results Based on the risk identified and our procedures performed we considered the impairment allowances on loans and advances at amortised cost, including off-balance sheet elements and the related disclosures to be acceptable (2023 result: acceptable). | | | | | | | | | | | | | Further information in the Annual Report and Accounts: See the Board Audit Committee Report on pages 24 to 25 for details on how the Committee considered impairment as an area of significant attention, pages [288](#ia16d0659cd524c01ae655d82fa382c3d_493) to 291 for the accounting policy for the Impairment of financial instruments under IFRS 9, pages [158](#ia16d0659cd524c01ae655d82fa382c3d_187) to 208  for the credit risk disclosures, and page 288 for the financial disclosure note 8; Credit Impairment charges. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 256 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | 4.2 VALUATION OF FINANCIAL INSTRUMENTS HELD AT FAIR VALUE | | | | | | | | | | | | | | Financial Statement Elements | | | Our assessment of risk vs FY23 | | Our results | | | | | | | | | | FY24 | FY23 | | | | | Group: | | | | | | | Level 2 assets at fair value\* (note 16) | £579bn | £549bn | | | | | | | | | | | | Level 2 liabilities at fair value\* (note 16) | £581bn | £571bn | | | | | | | | | | | | Level 3 assets at fair value (note 16) | £21.9bn | £16.2bn | | Our assessment is that the risk is similar to FY23. | FY24: Acceptable FY23: Acceptable | | | | | | Level 3 liabilities at fair value (note 16) | £6.9bn | £6.2bn | | Parent: | | | | | | | Level 2 assets at fair value\* (note 16) | £576bn | £554bn | | | | | | | | | | | | Level 2 liabilities at fair value\* (note 16) | £586bn | £583bn | | | | | | | | | | | | Level 3 assets at fair value (note 16) | £19bn | £14.0bn | | | | | | | | | | | | Level 3 liabilities at fair value (note 16) | £6.6bn | £5.7bn | | | | | \*The key audit matter identified relates to one L2 derivatives portfolio within these balances, and certain XVA adjustments made to derivative valuations, both of which we considered to be harder-to-value. | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 257 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Description of the Key Audit Matter | | | Our response to the risk | | | | | | | | | | | Subjective valuation The fair value of certain Group’s and Parent Company's financial instruments is determined through the application of valuation techniques which requires the exercise of significant judgement by the Group in relation to the choice of the valuation models, pricing inputs and post-model pricing adjustments, including fair value adjustments (FVAs) and other credit, collateral and funding adjustments (together referred to as XVAs). Where significant pricing inputs are unobservable, management has limited reliable and relevant market data available in determining the fair value. Therefore, estimation uncertainty and inherent subjectivity can be high. These financial instruments are classified as Level 3, with management having controls in place over the boundary between Level 2 and 3 positions. The valuations of Level 3 financial instruments are considered to have a significant risk due to error and fraud as they are driven by significant unobservable pricing inputs, which present an opportunity for erroneous and/or fraudulent misstatement of financial statements due to significant management judgement and related estimation uncertainty. In addition, for certain Level 2 financial instruments and fair value adjustments, there may also be valuation complexity, specifically where valuation modelling techniques result in significant limitations or where there is greater estimation uncertainty around the choice of an appropriate pricing methodology, and consequently more than one valuation methodology could be used for that product across the market. We have identified two areas of such complexity: • A derivatives portfolio that we considered to be a harder-to-value Level 2 financial instrument due to an element of modelling complexity associated with the product; and • Certain XVA adjustments made to uncollateralised and partially collateralised derivative valuations. The effect of these matters is that, as part of our risk assessment, we determined that the subjective estimates in the fair value measurement of Level 3, harder-to-value Level 2 financial instruments, and certain XVAs have a high degree of estimation uncertainty, with a potential range of reasonable outcomes greater than our materiality for the financial statements as a whole, and possibly many times that amount. The financial statements (note 16) disclose the sensitivity in Level 3 portfolios estimated by the Group. Disclosure quality For the Level 3 portfolios, the disclosures, including the sensitivity disclosures, are key to explaining the valuation techniques, key judgements, assumptions and material inputs. | | | Our procedures to address the risk included: Risk assessment: We performed granular and detailed risk assessment procedures throughout the audit period over the entirety of the balances within the Group's financial statements (i.e. all of the fair value financial instruments held by the Group). As part of these risk assessment procedures, we identified the portfolios and the associated valuation inputs with a risk of material misstatement including those arising from significant judgements over valuation either due to unobservable inputs or complex models. We involved valuation specialists in our risk assessment process. Control testing: We attended management’s Valuation Committee throughout the year and observed discussion and challenge over valuation themes including items related to the valuation of certain harder-to-value financial instruments recorded at fair value. We performed end to end process walkthroughs to identify the key systems, applications and controls used in the valuations processes. We tested the design and operating effectiveness of key controls relating specifically to these portfolios. Key aspects of our controls testing involved evaluating the design and implementation and testing the operating effectiveness of the key controls over: ▪ independent price verification (IPV), performed by a control function, of key market pricing inputs, including completeness of positions and valuation inputs subject to the IPV control; ▪ FVAs, including exit adjustments (to mark the portfolio to bid or offer prices), model shortcoming reserves to address model limitations, assumptions and XVAs; and ▪ the validation, completeness, implementation and usage of valuation models. This included controls over assessment of model limitations and assumptions. Our valuations expertise: We involved our own valuation specialists with specialised skills and knowledge, who assisted in the following: ▪ independently re-pricing a selection of fair value financial instruments and challenging management on the valuations where they were outside our pre-defined acceptable range; and ▪ challenging the appropriateness of significant models and methodologies used in calculating fair values, risk exposures and in calculating FVAs and XVAs, including comparison to industry practice. Seeking contradictory evidence: For a selection of collateral disputes identified through management’s control where significant fair value differences were observable with the market participant on the other side of the trade, we challenged management’s valuation by inspecting evidence of the investigation and resolution of the disputes. We also utilised collateral dispute data to identify fair value financial instruments with significant fair value differences against market counterparties and selected these to independently reprice. Inspection of movements: We inspected trading revenue arising on level 3 positions to assess whether material day one  gains or losses generated were in line with the accounting standards. Historical comparison: We performed a retrospective review by inspecting significant gains and losses on a selection of new fair value financial instruments, position exits and restructurings throughout the audit period and evaluated whether these data points indicated elements of fair value not incorporated in the current valuation methodologies. We also inspected movements in unobservable inputs throughout the period to challenge whether any gain or loss generated was appropriate. Assessing transparency: For the Level 3 financial instruments, we assessed the appropriateness of the disclosures in relation to the related estimation uncertainty, including sensitivity disclosures and in the context of the relevant accounting standards. | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 258 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Communications with the Barclays Bank PLC Board Audit Committee Our discussions with and reporting to the Board Audit Committee included: • Our approach to the audit of the fair value of Level 3 and certain Level 2 financial instrument assets and liabilities. This included details of our risk assessment, controls and substantive procedures. • Our conclusions on the appropriateness of the Group’s fair value methodology, models, pricing inputs and fair value adjustments. Areas of particular auditor judgement We identified the following as the areas of particular auditor judgement: • The  valuation of Level 3, harder-to-value level 2 financial instruments and certain XVAs, specifically with regards to the selection of market data inputs, valuation models and related assumptions. Our results Based on the risk identified and our procedures performed we consider the fair value of Level 3 and harder-to-value Level 2 financial instrument assets and liabilities recognised and the related disclosures for Level 3 financial instrument assets and liabilities to be acceptable (2023 result: acceptable). | | | | | | | | | | | | | Further information in the Annual Report and Accounts: See the Board Audit Committee Report on pages 24 to 25 for details on how the Board Audit Committee considered Valuations as an area of focus, page [313](#ia16d0659cd524c01ae655d82fa382c3d_628) for the accounting policy on financial assets and liabilities, and pages [313](#ia16d0659cd524c01ae655d82fa382c3d_628) to 325 for the financial disclosure note 16; Fair value of financial instruments. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | 4.3. VALUATION OF THE GROSS DEFINED BENEFIT PENSION OBLIGATION IN RESPECT OF THE UK RETIREMENT FUND (‘UKRF’) | | | | | | | | | | | | | | Financial Statement Elements | | | Our assessment of risk vs FY23 | | Our results | | | | | | | | | | FY24 | FY23 | | | | | Defined benefit obligation related to UKRF - (note 30) | £18.7bn | £20.6bn | | Our assessment is that the risk is similar to FY23. | FY24: Acceptable FY23: Acceptable | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 259 | ## Independent Auditor’s report ## Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Description of the Key Audit Matter | | | Our response to the risk | | | | | | | | | | | | | | | | | | Subjective valuation The valuation of the defined benefit obligation in respect of the UKRF is dependent on key actuarial assumptions, including the discount rates, retail price index (‘RPI’) and mortality assumptions. Small changes to these assumptions could have a significant impact on the valuation of the defined benefit pension obligation. As part of our risk assessment, we determined that the defined benefit pension obligation has a high degree of estimation uncertainty, with a potential range of reasonable outcomes greater than our materiality for the financial statements, and possibly many times that amount. Disclosure quality The disclosures regarding the Group’s application of IAS 19 (including risks, assumptions, sensitivities and sources of estimation uncertainty) are key to explaining the key judgements applied in the IAS 19 Defined Benefit Obligation calculation. | | | Our procedures to address the risk included: Risk assessment: We performed granular and detailed risk assessment procedures throughout the audit period over the UKRF. As part of these procedures, we inquired with management and the Bank’s actuaries to understand any changes to the process in the computation of the DBO along with the methodology, assumptions and source data used. We also perform end to end process walkthroughs and considered the impact of any new developments during the year on our risk assessment and our audit approach. Control testing: We performed end to end process walkthroughs to identify the key systems, applications and controls used in the defined benefit obligation process. We tested the design and operating effectiveness of key controls relating to the process. Key aspects of our controls testing involved evaluating the design and implementation and testing the operating effectiveness of the key controls over management’s review of IAS19 assumptions including the discount rate, RPI and mortality assumptions; Evaluation of management’s expert: We evaluated the objectivity and competence of management’s actuarial expert involved in the valuation of the defined benefit pension obligation. Our actuarial expertise : We involved our own actuarial specialists in the following: ▪ evaluating the judgements made and the appropriateness of methodologies used by management and management’s actuarial expert in determining the key actuarial assumptions; and ▪ comparing the assumptions used by Barclays Bank PLC to our independently compiled expected ranges based on market observable data and our market experience. Assessing transparency: We assessed the appropriateness of the Group’s financial statements disclosures in relation to the estimation uncertainty involved in determining the valuation of defined benefit obligations and in the context of the relevant accounting standards. | | | | | | | | | | | | | | | | | | Communications with the Barclays Bank PLC Board Audit Committee Our discussions with and reporting to the Board Audit Committee included; ▪ Our audit risk assessment for the valuation of the defined benefit pension obligation. ▪ We also discussed our audit response to the key audit matter which included the use of specialists to challenge key aspects of management’s actuarial valuation. Areas of particular auditor judgement ▪ Subjective and complex auditor judgement was required in evaluating the key actuarial assumptions used by the Group (including the discount rate, retail price index and mortality assumptions). Our results Based on the risk identified and our procedures performed we consider the valuation of the defined benefit pension obligation in respect of UKRF and the related disclosures to be acceptable (2023 result: acceptable). | | | | | | | | | | | | | Further information in the Annual Report and Accounts: See page [352](#ia16d0659cd524c01ae655d82fa382c3d_790) for the accounting policy on defined benefit schemes, and pages [352](#ia16d0659cd524c01ae655d82fa382c3d_790) to 361 for the financial disclosure note 30; Pensions and post-retirement benefits. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 260 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | --- | --- | --- | --- | | | | | | | 4.4. USER ACCESS MANAGEMENT | | | | | | | | | | Financial Statement Elements | Our assessment of risk vs FY23 | | Our results | | | | | | | User access management has a potential impact throughout the financial statements. | | Our assessment is that the risk is similar to FY23. | FY24 and FY23 Our testing did not identify unauthorised user activities in the systems relevant to financial reporting which would have required us to significantly expand the extent of our planned detailed testing | | | | | | | | | | | | | | Description of the Key Audit Matter | Our response to the risk | | | | | | | | | | | | | | Control Performance Operations across several countries support a wide range of products and services resulting in a large and complex IT infrastructure relevant to the financial reporting processes and related internal controls. User access management controls are an integral part of the IT environment to ensure both system access and changes made to systems and data are authorised and appropriate. Our audit approach relies on the effectiveness of IT access and change management controls. Our audit procedures identified deficiencies in certain IT access controls for systems relevant to financial reporting, similar to those identified in the prior year. More specifically, previously identified control deficiencies remain open around monitoring of activities performed by privileged users on infrastructure components. Management has an ongoing programme to remediate the deficiencies. Since these deficiencies were open during the year, we performed additional procedures to respond to the risk of unauthorised changes to automated controls over financial reporting, such as an assessment of compensating controls implemented and operated by management during the period. | Our procedures to address the risk included: Control testing: We tested the design, implementation and operating effectiveness of automated controls that support material balances in the financial statements. We also tested the design and operating effectiveness of the relevant preventative and detective general IT controls over user access management including: ▪ authorising access rights for new joiners; ▪ timely removal of user access rights; ▪ logging and monitoring of user activities; ▪ privileged user access management and monitoring; ▪ developer access to transaction and balance information; ▪ segregation of duties; ▪ re-certification of user access rights; and ▪ restricting access to make changes to systems and data. We performed procedures to assess whether additional detective compensating controls operate at the required level of precision to support our assessed risk of unauthorised activities and we tested management’s detective controls. | | | | | | | | | | | | | | Communications with the Barclays Bank PLC Board Audit Committee Our discussions with and reporting to the Board Audit Committee included: ▪ Our procedures to address the identified risk, as well as the results of the procedures performed. Areas of particular auditor judgement We identified the following as the areas of particular auditor judgement: ▪ The Key Audit Matter relates to determining whether user access management controls were designed and implemented and operated effectively. Limited auditor judgement was required relative to the other Key Audit Matters which have been identified. Our results Based on the risk identified and our procedures performed, our testing did not identify weaknesses in the design and operation of user access management controls that would have required us to significantly expand the extent of our planned detailed testing. | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 261 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC 5. #### OUR ABILITY TO DETECT IRREGULARITIES, AND OUR RESPONSE | | | | --- | --- | | | | | FRAUD - IDENTIFYING AND RESPONDING TO RISKS OF MATERIAL MISSTATEMENT DUE TO FRAUD | | | | | | FRAUD RISK ASSESSMENT | To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. In this risk assessment we considered the following: ▪ Our meetings throughout the year with the Group Head of Risk, Group Head of Compliance and Group Head of Legal and inspection of Barclays Bank PLC’s internal ethics and compliance reporting summaries, including those concerning investigations and regulatory correspondence. ▪ Enquiries of operational managers, internal audit, and the Board Audit Committee and inspection of policy documentation as to the Group’s high-level policies and procedures relating to: ◦ detecting and responding to the risks of fraud as well as whether they have knowledge of any actual, suspected or alleged fraud; and ◦ the internal controls established to mitigate risks related to fraud, including the appropriateness and impact of changes made to these controls to facilitate remote/hybrid working; ▪ The Group’s remuneration policies and key drivers for remuneration and bonus levels; ▪ The full population of all journal entries to analyse using KPMG automated data analytics routines to identify any journals with high risk of fraud using predefined high risk criteria. ▪ Considered the impact of the pressure to meet the targets set out in the strategic plan. FY24 marked the first year of execution against the three-year strategic plan announced by Barclays PLC (of which Barclays Bank PLC is a subsidiary) in their February 2024 Investor Update; and ▪ Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. The engagement team includes audit partners and staff who have extensive experience of working with banks, and this experience was relevant to the discussion about where fraud risks may arise. The discussions also involved our forensic specialists to assist us in identifying fraud risks based on discussions of the circumstances of the Group and Company, including consideration of fraudulent schemes that had arisen in similar sectors and industries.  The forensic specialists participated in the initial fraud risk assessment discussions and were consulted as required where further guidance was necessary. | | | | | FRAUD RISK COMMUNICATIONS | We communicated identified fraud risks throughout the audit team and we remained alert to any indications of fraud throughout the audit. This included communication from the Group to component audit teams of relevant fraud risks identified at the Group and requesting component auditors to report to the Group auditor any identified fraud risks or identified or suspected instances of fraud. | | | | | FRAUD RISKS AND OUR PROCEDURES TO ADDRESS THEM | We identified four fraud risks which were communicated to component audit teams. The nature of these fraud risks is substantially unchanged from the prior year. The fraud risks we identified are set out below: 1) IFRS 9 ECL: Judgemental qualitative adjustments made to the ECL provision 2) Valuations- risk relating to unobservable pricing inputs used to price level 3 fair value instruments 3) Existence and accuracy of unconfirmed over-the-counter bilateral derivatives 4) The risk of management override of controls, common with all audits under ISAs (UK). As required by auditing standards and taking into account our overall knowledge of the control environment, we performed procedures to address the above risks, the risk that Group and component management may be in a position to make inappropriate accounting entries and the risk of bias in accounting estimates and judgements. In this audit, we have not identified a significant risk of fraud related to revenue recognition for the Group as a whole. This conclusion is based on the nature of the revenue streams, which suggests limited opportunities for management to manipulate revenue, considering the characteristics, volume, and judgments involved in each revenue stream. Our audit procedures included evaluating the design and implementation and operating effectiveness of relevant internal controls, assessing significant accounting estimates for bias, as well as substantive procedures to address the fraud risks These procedures also included identifying journal entries using KPMG’s data analytics specialists to test based on high risk criteria and comparing the identified entries to supporting documentation. Incorporating unpredictability into our audit: A requirement of the auditing standards is that we undertake procedures which are deliberately unexpected and could not have reasonably been predicted by Barclays Bank PLC’s management. As an example, we update our criteria for selecting journals with a higher risk of management override for testing each year so that the selection criteria do not become predictable. | | | | | LINK TO KEY AUDIT MATTERS | Further details of the testing we perform over the identified fraud risks for ECL and fair value of financial instruments are included in the respective key audit matters sections 4.1 and 4.2 of this report, as the procedures relating to those estimates also address the risk of fraud. | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 262 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | --- | --- | | | | | LAWS AND REGULATIONS - IDENTIFYING AND RESPONDING TO RISKS OF MATERIAL MISSTATEMENT DUE TO NON- COMPLIANCE WITH LAWS AND REGULATIONS | | | | | | RISK ASSESSMENT | We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements. For this risk assessment, matters considered include the following: ▪ our general commercial and sector experience; ▪ inquiries with the directors and other management (as required by auditing standards); ▪ inspection of the Group’s key regulatory and legal correspondence; ▪ inspection of the policies and procedures regarding compliance with laws and regulations; ▪ relevant discussions with the Group’s external legal counsel; ▪ relevant discussions with the Group’s key regulatory supervisors including the Prudential Regulation Authority, Financial Conduct Authority, and Federal Reserve Board; and ▪ the Group’s own assessment of the risks of non-compliance with laws and regulations, and the internal controls established to mitigate these. This assessment was considered and approved by the Board. Our risk assessment also considered instances of non-compliance with laws and regulations and enforcement actions against the Group during the year and specifically those that could reasonably be expected to have a material effect on the financial statements. As the Group operates in a highly regulated environment, our assessment of risks of material misstatement also considered the control environment, including the Group’s higher-level procedures for complying with regulatory requirements. Our assessment included inspection of key frameworks, policies and standards in place, understanding and evaluating the role of the compliance function in establishing these and monitoring compliance and testing of related controls around whistleblowing and complaints. | | | | | RISK COMMUNICATION | Our identified laws and regulations risks were communicated throughout our team and we remained alert to any indications of non-compliance throughout the audit. This included communication from the Group to component audit teams of relevant laws and regulations identified at Group level. | | | | | DIRECT LAWS CONTEXT AND LINK TO AUDIT | The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Group is subject to laws and regulations that directly impact the financial statements including: ▪ financial reporting legislation (including related companies’ legislation); ▪ distributable profits legislation; and ▪ taxation legislation (direct and indirect). We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. | | | | | MOST SIGNIFICANT INDIRECT LAW/ REGULATION AREAS | Secondly, the Group is subject to many other laws and regulations where the consequences of non- compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines, remediation payments or litigation, or the loss of the Group’s permission to operate in countries where the non-adherence to laws could prevent trading in such countries. We identified the following areas as those most likely to have such an effect: ▪ Specific aspects of regulatory capital and liquidity requirements ▪ Other banking laws and regulations including securities issuance law ▪ Customer conduct rules ▪ Money laundering ▪ Sanctions list and financial crime ▪ Market abuse regulations ▪ Certain aspects of companies legislation recognising the financial and regulated nature of the Group’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. If a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 263 | Independent Auditor’s report Independent Auditor’s report to the members of Barclays Bank PLC | | | | --- | --- | | | | | AUDIT RESPONSE | In relation to the legal, competition and regulatory matters disclosed in note 24 we performed audit procedures which included making inquiries of Barclays Bank PLC’s internal counsel and inspection of minutes of meetings and of regulatory correspondence. For a subset of these matters which we deemed to be more significant we also made enquiries of external counsel and obtained legal confirmations from Barclays Bank PLC’s external counsel. In respect of regulatory matters relating to conduct risk as disclosed in note 24 our procedures included inspection of regulatory correspondence, independent inquiry of the Group’s main regulators and performing audit procedures to respond to risks of material misstatement identified in recognised conduct provisions. | | | | | CONTEXT OF THE ABILITY OF THE AUDIT TO DETECT FRAUD OR BREACHES OF LAW OR REGULATION | Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non- compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. | 6. #### OUR DETERMINATION OF MATERIALITY The scope of our audit was influenced by our application of materiality. We set quantitative thresholds and overlay qualitative considerations to help us determine the scope of our audit and the nature, timing and extent of our procedures, and in evaluating the effect of misstatements, both individually and in the aggregate, on the financial statements as a whole. | | | | --- | --- | | | | | | | | MATERIALITY FOR THE GROUP FINANCIAL STATEMENTS AS A WHOLE 2024: £240m 2023: £230m | What we mean A quantitative reference for the purpose of planning and performing our audit | | | | Basis for determining materiality and judgements applied Materiality for the Group financial statements as a whole was set at £240 m (FY23: £230m). This was determined with reference to a benchmark of profit before tax (PBT). Consistent with FY23, we determined that PBT remains the main benchmark for the Group as it is the metric in the primary statements which best reflects the focus of the users of the financial statements.We adjusted PBT for items which did not represent the normal and continuing operations of the Group. In FY23 we adjusted for the impact of one-off actions taken by Barclays to drive future returns that resulted in significant additional costs of £458m. In FY24 we adjusted for the impact of inorganic activities, which comprised losses on portfolio sales during the year, that resulted in additional losses of £255m. Our Group materiality of £240m was determined with reference to the normalised PBT. When using a benchmark of PBT to determine overall materiality, KPMG’s approach for public interest entities considers a guideline range 3% - 5% of the measure. Overall Group materiality represents 4.8%% (FY23: 4.7%) to the benchmark. Materiality for the Parent Company financial statements as a whole was set at £150m (FY23: £140m), which is the component materiality for the parent company determined by the group audit engagement team. This is lower than the materiality we would otherwise have determined with reference to a benchmark of net assets of which it represents 0.3% (FY23 0.3%). | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 264 | ## Independent Auditor’s report ## Independent Auditor’s report to the members of Barclays Bank PLC | | | | --- | --- | | | | | | | | PERFORMANCE MATERIALITY 2024: £149m 2023: £149m | What we mean Our procedures on individual account balances and disclosures were performed to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that individually immaterial misstatements in individual account balances add up to a material amount across the financial statements as a whole. | | | | | | Basis for determining performance materiality and judgements applied We have considered performance materiality at a level of 65% (2023: 65%) of materiality for Barclays Bank PLC Group’s financial statements as a whole to be appropriate. The Parent Company performance materiality was set at £97m (2023: £110m) which equates to 65% (2023: 65%) of materiality for the Parent Company financial statements as a whole. We applied this percentage in our determination of performance materiality based on the level of control deficiencies during the prior period. | | | | | | | | | | AUDIT MISSTATEMENT POSTING THRESHOLD 2024: £12m 2023: £11m | | | What we mean Our procedures on individual account balances and disclosures were performed to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that individually immaterial misstatements in individual account balances add up to a material amount across the financial statements as a whole. | | | | | | Basis for determining the audit misstatement reporting threshold and judgements applied We set our audit misstatement posting threshold at 5% (FY23: 5%) of our materiality for the Group financial statements. We also report to the BAC any other identified misstatements that warrant reporting on qualitative grounds. We also report to the Audit Committee any other identified misstatements that warrant reporting on qualitative grounds. | | | The overall materiality for the Group financial statements of £240m (2023: £230m) compares as follows to the other main financial statement elements amounts. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | Total Revenue | | Total Assets | | Net Assets | | | | | | | | | | | | | | | | | | | | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | | | | | | | | | | | | | | | | | | | £19,037m | £18,268m | £1,218,524m | £1,185,166m | £59,220m | £60,504m | | | | | | | | | | | | | | | | | | Group Materiality as % of caption | 1.26% | 1.26% | 0.02% | 0.02% | 0.41% | 0.38% | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 265 | ## Independent Auditor’s report ## Independent Auditor’s report to the members of Barclays Bank PLC 7. #### THE SCOPE OF OUR AUDIT | | | | | | | --- | --- | --- | --- | --- | | | | | | | | GROUP SCOPE | | | | | | | What we mean How the Group audit team determined the procedures to be performed across the Group. | | | | | | | | | | | | | | | This year, we applied the revised group auditing standard in our audit of the Group financial statements. The revised standard changes how an auditor approaches the identification of components, and how the audit procedures are planned and executed across components. In particular, the definition of a component has changed, shifting the focus from how the entity prepares financial information to how we, as the group auditor, plan to perform audit procedures to address group risks of material misstatement (“RMMs”). Similarly, the group auditor has an increased role in designing the audit procedures as well as making decisions on where these procedures are performed (centrally and/or at component level) and how these procedures are executed and supervised. As a result, we assess scoping and coverage in a different way and comparisons to prior period coverage figures are not meaningful. In this report we provide an indication of scope coverage on the new basis. We performed risk assessment procedures to determine which of the Group’s components are likely to include risks of material misstatement to the Group financial statements and which procedures to perform at these components to address those risks. In total, we identified five components. Having considered our evaluation of the Group's operational structure; the Group's legal structure; the existence of common information systems; the existence of common risk profile across entities/ business units/functions/business activity; geographical locations; and other audit specific factors and our ability to perform audit procedures centrally. Of those, we identified four quantitatively significant components which contained the largest percentages of either total revenue or total assets  of the Group, for which we performed audit procedures. We also identified one component as requiring special audit consideration, owing to significant risks related to the valuation of financial instruments held at fair value and impairment allowances on loans and advances at amortised cost residing in that component. Accordingly, we performed audit procedures on five components, of which we involved component auditors in performing the audit work on three components. We performed audit procedures on the items excluded from the normalised Group profit before tax used as the benchmark for our materiality where we assessed there to be a risk of material misstatement. We also performed an audit of the parent Company  which is both a component of the Group and has separately disclosed financial statements. We instructed component auditors on the scope of their work, including the relevant risks of material misstatement and the information to be reported back. We set the component materialities, ranging from £40m to £240m, having regard to the mix of size and risk profile of the Group across the components. We performed audit procedures in relation to all components. Quantitatively significant components accounted for 92% of the total income and expenses that made up Group total income and 92% of Group total assets. Components requiring special audit consideration accounted for the remaining 8% of the total income and expenses that made up Group total income and 8% of Group total assets. Impact of controls on our Group audit Barclays relies on the effectiveness of internal controls over financial reporting at the Group level, both in the Global Capability Centre (GCC) in India and at country level, and operates both automated and manual controls. We have tested the design and operations of controls in all areas of our audit where we identified a risk of material misstatement. We identified 611 applications to be the main IT applications relevant to the audit. This included the ledger and the consolidation application. We used IT specialists to assist us in assessing the design and operating effectiveness of the general IT controls and business automated controls of these applications, with this testing managed from the UK. Following our testing, we relied on general IT controls and business automated controls in determining the work to be performed in the audit. The Group audit team evaluated the design and operating effectiveness of key manual process level controls operating centrally at the Group level (including those operated at the GCC). Component auditors further evaluated the design and operating effectiveness of key manual controls that operate at country level (including those operated at the GCC) to address specific local financial reporting risks that could impact the group audit opinion. Results from all testing were communicated to the group audit team. Based on the outcome of our testing of controls, including compensating controls where relevant, we were able to rely upon the Group’s internal control over financial reporting in all areas of our audit and, where our controls testing supported this approach, we were able to reduce the scope of our substantive audit work. | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 266 | ## Independent Auditor’s report ## Independent Auditor’s report to the members of Barclays Bank PLC | | | | | | | --- | --- | --- | --- | --- | | | | | | | | GROUP AUDIT TEAM OVERSIGHT | | | | | | | What we mean The extent of the Group auditor’s involvement in work performed by component auditors. | | | | | | | | | | | | | | | As part of establishing the overall Group audit strategy and plan, we conducted the risk assessment and planning discussion meetings with component auditors to discuss Group audit risks relevant to the components. We visited all components and other key participating auditors in overseas locations including the US, Ireland and India to assess the audit risks and strategy. Video and telephone conference meetings were also held with all component auditors on a regular basis. At these visits and meetings, the results of the planning procedures and further audit procedures communicated by us were discussed in more detail, and any further work required by us was then performed by the component auditors. We inspected the work performed by the component auditors for the purpose of the Group audit and evaluated the appropriateness of conclusions drawn from the audit evidence obtained and consistencies between communicated findings and work performed, with a particular focus on impairment allowance on loans and advances at amortised costs and valuation of financial instruments held at fair value.. Stuart Crisp, the Group Lead Engagement Partner (and Senior Statutory Auditor), attended each Board Audit Committee and Board Risk Committee for Barclays Bank PLC and at least one Board Audit Committee for Barclays Bank Europe, and the Intermediate Holding Company (IHC) covering Barclays Capital Inc. and Barclays Bank Delaware. | | | | | | | | 8. #### OTHER INFORMATION IN THE ANNUAL REPORT The directors are responsible for the other information presented in the Annual Report together with the financial statements. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. | | | --- | | | | | #### ALL OTHER INFORMATION | | | | --- | --- | | | | | | | | Our responsibility Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. | Our reporting Based solely on that work we have not identified material misstatements or inconsistencies in the other information. | | | | | STRATEGIC REPORT AND THE DIRECTORS' REPORT | | | | | | Our responsibility and reporting Based solely on our work on the other information described above we report to you as follows: • we have not identified material misstatements in the strategic report and the directors’ report; • in our opinion the information given in those reports for the financial year is consistent with the financial statements; and • in our opinion those reports have been prepared in accordance with the Companies Act 2006. | | | | | #### OTHER MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION | | | | --- | --- | | | | | | | | Our responsibility Under the Companies Act 2006, we are required to report to you if, in our opinion: ▪ adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ▪ the Parent Company financial statements are not in agreement with the accounting records and returns; or ▪ certain disclosures of directors’ remuneration specified by law are not made; or ▪ we have not received all the information and explanations we require for our audit. | Our reporting We have nothing to report in these respects. | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 267 | ## Independent Auditor’s report ## Independent Auditor’s report to the members of Barclays Bank PLC 9. #### EUROPEAN SINGLE ELECTRONIC FORMAT (ESEF) Barclays Bank PLC has prepared its consolidated financial statements, which comprise the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated balance sheet, and consolidated cash flow statement and the related notes, in ESEF. The requirements for this format are set out in the Commission Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic reporting format (“the ESEF Regulation”). The Directors are responsible for preparing the financial statements in accordance with the ESEF regulation. We were engaged by Barclays Bank PLC to report on whether the consolidated financial statements are prepared, in all material respects, in accordance with the ESEF regulation. We have examined the consolidated financial statements in order to determine whether the consolidated financial statements of the Group as at 31 December 2024 have been prepared in compliance with the relevant requirements in the ESEF Regulation that are applicable to financial statements.  This relates to financial statements prepared in a valid xHTML format, and the XBRL markup of the consolidated financial statements using the core taxonomy and the common rules on markups specified in the ESEF Regulation. In our opinion the consolidated financial statements of Barclays Bank PLC as at 31 December 2024, identified as bbplc-2024-12-31 have been prepared, in all material respects, in compliance with the requirements of the ESEF Regulation. 10. #### RESPECTIVE RESPONSIBILITIES Directors’ responsibilities As explained more fully in their statement set out on page 33 the directors are responsible for: the preparation of the financial statements including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Group and Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities. The Company is required to include these financial statements in an annual financial report prepared under Disclosure Guidance and Transparency Rule 4.1.17R and 4.1.18R. This auditor's report provides no assurance over whether the annual financial report has been prepared in accordance with those requirements 11. #### THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed. Stuart Crisp (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 15 Canada Square London E14 5GL 12 February 2025 | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 268 | ## Consolidated financial statements ## Consolidated income statement | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | 2024 | 2023 | 2022 | | For the year ended 31 December | Notes | £m | £m | £m | | Continuing operations | | | | | | Interest and similar income | 3 | 25,780 | 24,261 | 11,779 | | Interest and similar expense | 3 | (19,035) | (17,608) | (6,381) | | Net interest income | | 6,745 | 6,653 | 5,398 | | Fee and commission income | 4 | 9,486 | 8,708 | 8,171 | | Fee and commission expense | 4 | (3,215) | (3,247) | (2,745) | | Net fee and commission income | | 6,271 | 5,461 | 5,426 | | Net trading income | 5 | 5,900 | 5,980 | 7,624 | | Net investment income/(expense) | 6 | 69 | 112 | (323) | | Other income | | 52 | 62 | 69 | | Total income | | 19,037 | 18,268 | 18,194 | | Staff costs | 28 | (5,556) | (5,591) | (5,192) | | Infrastructure costs | 7 | (795) | (1,073) | (900) | | Administration and general expenses | 7 | (5,894) | (5,606) | (4,729) | | UK regulatory levies | 7 | (242) | (149) | (150) | | Litigation and conduct | 7 | (186) | (44) | (1,427) | | Operating expenses | 7 | (12,673) | (12,463) | (12,398) | | Share of post-tax results of associates and joint ventures | | — | (4) | 3 | | Profit on disposal of subsidiaries, associates and joint ventures | | — | — | 1 | | Profit before Impairment | | 6,364 | 5,801 | 5,800 | | Credit impairment charges | 8 | (1,617) | (1,578) | (933) | | Profit before tax | | 4,747 | 4,223 | 4,867 | | Taxation | 9 | (999) | (662) | (485) | | Profit after tax | | 3,748 | 3,561 | 4,382 | | | | | | | | Attributable to: | | | | | | Equity holders of the parent | | 2,956 | 2,753 | 3,650 | | Other equity instrument holders | | 792 | 808 | 732 | | Total equity holders of the parent | | 3,748 | 3,561 | 4,382 | | Profit after tax | | 3,748 | 3,561 | 4,382 | As permitted by section 408 of the Companies Act 2006 an income statement for the parent company has not been presented. Included in shareholders’ equity for Barclays Bank PLC is a profit after tax for the year ended 31 December 2024 of £4,965m (2023: £2,866m; 2022: £2,784m). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 269 | ## Consolidated financial statements ## Consolidated statement of comprehensive income | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | 2024 | 2023 | 2022 | | For the year ended 31 December | £m | £m | £m | | Profit after tax | 3,748 | 3,561 | 4,382 | | Other comprehensive income/(loss) that may be recycled to profit or loss: | | | | | Currency translation reserve | | | | | Currency translation differences1 | (143) | (1,242) | 2,411 | | Tax | 50 | 33 | — | | Fair value through other comprehensive income reserve movement relating to debt securities | | | | | Net (losses)/gains from changes in fair value | (840) | 1,142 | (6,376) | | Net (gains)/losses transferred to net profit on disposal | (134) | (102) | 68 | | Net losses/(gains) related to (releases of) impairment | 1 | (2) | 8 | | Net gains/(losses) due to fair value hedging | 318 | (849) | 4,627 | | Tax | 181 | (54) | 449 | | Cash flow hedging reserve | | | | | Net (losses)/gains from changes in fair value | (1,349) | 2,506 | (7,290) | | Net losses transferred to net profit | 1,950 | 1,158 | 543 | | Tax | (154) | (1,002) | 1,808 | | Other comprehensive (loss)/income that may be recycled to profit or loss | (120) | 1,588 | (3,752) | | | | | | | Other comprehensive (loss)/income not recycled to profit or loss: | | | | | Retirement benefit remeasurements | (419) | (1,182) | (755) | | Own credit | (1,131) | (983) | 2,092 | | Tax | 430 | 609 | (156) | | Other comprehensive (loss)/income not recycled to profit or loss | (1,120) | (1,556) | 1,181 | | | | | | | Other comprehensive (loss)/income for the year | (1,240) | 32 | (2,571) | | | | | | | Total comprehensive income for the year | 2,508 | 3,593 | 1,811 | | | | | | | Attributable to: | | | | | Equity holders of the parent | 2,508 | 3,593 | 1,811 | | Total comprehensive income for the year | 2,508 | 3,593 | 1,811 | Note 1Includes £1m gain (2023: £0m gain; 2022: £1m gain) on recycling of currency translation differences. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 270 | ## Consolidated financial statements ## Consolidated balance sheet | | | | | | --- | --- | --- | --- | | | | | | | | | 2024 | 2023 | | As at 31 December | Notes | £m | £m | | Assets | | | | | Cash and balances at central banks | | 180,365 | 189,686 | | Cash collateral and settlement balances | | 113,987 | 103,708 | | Debt securities at amortised cost | | 50,227 | 39,046 | | Loans and advances at amortised cost to banks | | 8,780 | 9,024 | | Loans and advances at amortised cost to customers | | 136,047 | 137,177 | | Reverse repurchase agreements and other similar secured lending at amortised cost | | 3,393 | 1,103 | | Trading portfolio assets | 11 | 166,244 | 174,566 | | Financial assets at fair value through the income statement | 12 | 191,845 | 204,236 | | Derivative financial instruments | 13 | 292,356 | 256,111 | | Financial assets at fair value through other comprehensive income | 14 | 51,010 | 51,423 | | Investments in associates and joint ventures | 33 | 14 | 22 | | Goodwill and intangible assets | 20 | 1,425 | 1,084 | | Property, plant and equipment | 18 | 1,546 | 1,262 | | Current tax assets | | 785 | 546 | | Deferred tax assets | 9 | 4,133 | 3,888 | | Retirement benefit assets | 30 | 3,263 | 3,667 | | Assets included in disposal group classified as held for sale | 39 | 9,854 | 3,916 | | Other assets | | 3,250 | 4,701 | | Total assets | | 1,218,524 | 1,185,166 | | Liabilities | | | | | Deposits at amortised cost from banks | | 13,252 | 14,598 | | Deposits at amortised cost from customers | | 306,124 | 287,200 | | Cash collateral and settlement balances | | 104,627 | 92,988 | | Repurchase agreements and other similar secured borrowing at amortised cost | | 29,397 | 28,554 | | Debt securities in issue | | 35,803 | 45,653 | | Subordinated liabilities | 25 | 41,875 | 35,903 | | Trading portfolio liabilities | 11 | 56,182 | 57,761 | | Financial liabilities designated at fair value | 15 | 279,777 | 298,573 | | Derivative financial instruments | 13 | 279,331 | 249,880 | | Current tax liabilities | | 404 | 411 | | Deferred tax liabilities | 9 | 2 | 3 | | Retirement benefit liabilities | 30 | 164 | 173 | | Liabilities included in disposal group classified as held for sale | 39 | 3,726 | 3,164 | | Other liabilities | 21 | 7,904 | 8,984 | | Provisions | 22 | 736 | 817 | | Total liabilities | | 1,159,304 | 1,124,662 | | Equity | | | | | Called up share capital and share premium | 26 | 2,348 | 2,348 | | Other equity instruments | 26 | 9,604 | 10,765 | | Other reserves | 27 | (1,302) | (363) | | Retained earnings | | 48,570 | 47,754 | | Total equity | | 59,220 | 60,504 | | Total liabilities and equity | | 1,218,524 | 1,185,166 | The Board of Directors approved the financial statements on pages [268](#ia16d0659cd524c01ae655d82fa382c3d_418) to [378](#i57f4a7df661845b9a9f5a269b0d3884e_54-0-1-1-2963268) on 12 February 2025. CS Venkatakrishnan Barclays Bank Group – Chief Executive Officer Aunoy Banerjee Barclays Bank Group – Chief Financial Officer | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 271 | ## Consolidated financial statements ## Consolidated statement of changes in equity | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Statement of changes in equity | | | | | | | | Called up share capital and share premium1 | Other equity instruments1 | Other reserves 2 | Retained earnings | Total equity | | | £m | £m | £m | £m | £m | | Balance as at 1 January 2024 | 2,348 | 10,765 | (363) | 47,754 | 60,504 | | Profit after tax | — | 792 | — | 2,956 | 3,748 | | Currency translation movements | — | — | (93) | — | (93) | | Fair value through other comprehensive income reserve | — | — | (474) | — | (474) | | Cash flow hedges | — | — | 447 | — | 447 | | Retirement benefit remeasurement | — | — | — | (298) | (298) | | Own credit reserve | — | — | (822) | — | (822) | | Total comprehensive income for the year | — | 792 | (942) | 2,658 | 2,508 | | Issue and redemption of other equity instruments | — | (1,161) | — | (92) | (1,253) | | Other equity instruments coupons paid | — | (792) | — | — | (792) | | Employee settled Barclays PLC share schemes | — | — | — | 531 | 531 | | Vesting of Barclays PLC shares under share-based payment schemes | — | — | — | (448) | (448) | | Dividends on ordinary shares | — | — | — | (1,782) | (1,782) | | Dividends on preference shares and other shareholders equity | — | — | — | (41) | (41) | | Other reserve movements | — | — | 3 | (10) | (7) | | Balance as at 31 December 2024 | 2,348 | 9,604 | (1,302) | 48,570 | 59,220 | Notes 1For further details refer to Note 26. 2For further details refer to Note 27. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Statement of changes in equity | | | | | | | | Called up share capital and share premium1 | Other equity instruments1 | Other reserves 2 | Retained earnings | Total equity | | | £m | £m | £m | £m | £m | | Balance as at 1 January 2023 | 2,348 | 10,691 | (1,464) | 47,378 | 58,953 | | Profit after tax | — | 808 | — | 2,753 | 3,561 | | Currency translation movements | — | — | (1,209) | — | (1,209) | | Fair value through other comprehensive income reserve | — | — | 135 | — | 135 | | Cash flow hedges | — | — | 2,662 | — | 2,662 | | Retirement benefit remeasurement | — | — | — | (846) | (846) | | Own credit reserve | — | — | (710) | — | (710) | | Total comprehensive income for the year | — | 808 | 878 | 1,907 | 3,593 | | Issue and redemption of other equity instruments | — | 74 | — | (12) | 62 | | Other equity instruments coupons paid | — | (808) | — | — | (808) | | Employee settled Barclays PLC share schemes | — | — | — | 409 | 409 | | Vesting of Barclays PLC shares under share-based payment schemes | — | — | — | (442) | (442) | | Dividends on ordinary shares | — | — | — | (1,348) | (1,348) | | Dividends on preference shares and other shareholders equity | — | — | — | (40) | (40) | | Net equity impact on inter Barclays PLC Group transfers | — | — | 220 | (96) | 124 | | Other reserve movements | — | — | 3 | (2) | 1 | | Balance as at 31 December 2023 | 2,348 | 10,765 | (363) | 47,754 | 60,504 | Notes 1For further details refer to Note 26. 2For further details refer to Note 27. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 272 | ## Consolidated financial statements ## Consolidated statement of changes in equity | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | Called up share capital and share premium | Other equity instruments | Other reserves | Retained earnings | Total equity | | | £m | £m | £m | £m | £m | | Balance as at 1 January 2022 | 2,348 | 9,693 | 861 | 43,415 | 56,317 | | Profit after tax | — | 732 | — | 3,650 | 4,382 | | Currency translation movements | — | — | 2,411 | — | 2,411 | | Fair value through other comprehensive income reserve | — | — | (1,224) | — | (1,224) | | Cash flow hedges | — | — | (4,939) | — | (4,939) | | Retirement benefit remeasurement | — | — | — | (282) | (282) | | Own credit reserve | — | — | 1,463 | — | 1,463 | | Total comprehensive income for the year | — | 732 | (2,289) | 3,368 | 1,811 | | Issue and redemption of other equity instruments | — | 998 | — | 38 | 1,036 | | Other equity instruments coupons paid | — | (732) | — | — | (732) | | Employee settled Barclays PLC share schemes | — | — | — | 419 | 419 | | Vesting of Barclays PLC shares under share-based payment schemes | — | — | — | (413) | (413) | | Dividends on ordinary shares | — | — | — | (200) | (200) | | Dividends on preference shares and other shareholders equity | — | — | — | (31) | (31) | | Own credit realisation | — | — | (36) | 36 | — | | Capital contribution from Barclays Plc | — | — | — | 750 | 750 | | Other reserve movements | — | — | — | (4) | (4) | | Balance as at 31 December 2022 | 2,348 | 10,691 | (1,464) | 47,378 | 58,953 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 273 | ## Consolidated financial statements ## Consolidated cash flow statement | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | 2024 | 2023 | 2022 | | For the year ended 31 December | Notes | £m | £m | £m | | Reconciliation of profit before tax to net cash flows from operating activities: | | | | | | Profit before tax | | 4,747 | 4,223 | 4,867 | | Adjustment for non-cash items: | | | | | | Credit impairment charges | | 1,617 | 1,578 | 933 | | Depreciation, amortisation and impairment of property, plant, equipment and intangibles | | 356 | 489 | 483 | | Provisions and pension charges | | 195 | 63 | 1,188 | | Net loss on disposal of investments and property, plant and equipment | | 9 | 7 | 8 | | Other non-cash movements including exchange rate movements | | 1,835 | 7,567 | (13,491) | | Changes in operating assets and liabilities | | | | | | Net decrease/ (increase) in cash collateral and settlement balances | | 2,060 | 31 | (1,078) | | Net (increase)/decrease in loans and advances at amortised cost | | (2,556) | 8,313 | (30,617) | | Net (increase)/decrease in reverse repurchase agreements and other similar secured lending | | (2,290) | (378) | 2,452 | | Net increase in deposits at amortised cost | | 17,578 | 10,219 | 28,751 | | Net (decrease)/increase in debt securities in issue | | (9,850) | (14,359) | 11,624 | | Net increase/(decrease) in repurchase agreements and other similar secured borrowing | | 843 | 16,589 | (804) | | Net (increase)/decrease in derivative financial instruments | | (6,794) | 7,539 | (8,002) | | Net decrease/(increase) in trading portfolio assets | | 8,322 | (40,795) | 13,100 | | Net (decrease)/increase in trading portfolio liabilities | | (1,579) | (14,699) | 19,169 | | Net (increase)/decrease in financial assets and liabilities at fair value through the income statement | | (6,415) | 33,410 | (1,978) | | Net decrease/(increase) in other assets | | (3,962) | (1,301) | (3,311) | | Net (decrease)/increase in other liabilities | | (1,440) | (1,864) | 1,834 | | Corporate income tax paid | | (685) | (265) | (144) | | Net cash from operating activities | | 1,991 | 16,367 | 24,984 | | Purchase of debt securities at amortised cost | | (27,617) | (14,901) | (20,014) | | Proceeds from redemption or sale of debt securities at amortised cost | | 16,922 | 2,681 | 12,925 | | Purchase of financial assets at fair value through other comprehensive income | | (52,347) | (50,254) | (43,139) | | Proceeds from sale or redemption of financial assets at fair value through other comprehensive income | | 51,803 | 44,126 | 42,157 | | Purchase of property, plant and equipment and intangibles | | (512) | (439) | (540) | | Acquisition of business | | (232) | — | — | | Other cash flows associated with investing activities1 | | 2,749 | — | — | | Net cash from investing activities | | (9,234) | (18,787) | (8,611) | | Dividends paid and other coupon payments on equity instruments | | (2,615) | (2,196) | (963) | | Issuance of subordinated liabilities | 25 | 11,222 | 5,986 | 15,381 | | Redemption of subordinated liabilities | 25 | (5,067) | (7,431) | (8,367) | | Issue of shares and other equity instruments | 26 | 970 | 2,499 | 3,134 | | Repurchase of shares and other equity instruments | 26 | (2,131) | (2,425) | (2,136) | | Capital contribution | | — | — | 750 | | Vesting of employee share schemes | | (448) | (442) | (413) | | Net cash from financing activities | | 1,931 | (4,009) | 7,386 | | Effect of exchange rates on cash and cash equivalents | | (2,405) | (5,013) | 10,235 | | Net (decrease)/increase in cash and cash equivalents | | (7,717) | (11,442) | 33,994 | | Cash and cash equivalents at beginning of year | | 208,412 | 219,854 | 185,860 | | Cash and cash equivalents at end of year | | 200,695 | 208,412 | 219,854 | | Cash and cash equivalents comprise: | | | | | | Cash and balances at central banks | | 180,365 | 189,686 | 202,142 | | Loans and advances to banks with original maturity of three months or less | | 7,758 | 7,117 | 6,229 | | Cash collateral balances with central banks with original maturity of three months or less | | 11,025 | 10,325 | 10,625 | | Treasury and other eligible bills with original maturity of three months or less | | 1,547 | 1,284 | 858 | | Cash and cash equivalents at end of year | | 200,695 | 208,412 | 219,854 | Note 1  This relates to the net proceeds from the sale of the Italian retail mortgage portfolio. Interest received was £25,695m (2023: £24,347m; 2022: £10,939m) and interest paid was £18,952m (2023: £15,944m; 2022: £6,664m). 2023 and 2022 comparative figures have been amended to make the cash flow statement more relevant following a review of the disclosure and the basis of preparation applied. Following that review, the basis of preparation of interest received and paid has been amended to reflect interest received and interest paid on activity where interest is recognised on an effective interest rate basis to make the cash flow statement information more relevant with reference to net interest income recognised in the income statement and enhancing comparability with industry peers. Previously, amounts related to trading activities were also included. The Barclays Bank Group is required to maintain balances with central banks and other regulatory authorities and these amounted to £2,317m (2023: £2,973m; 2022 : £3,038m). For the purposes of the cash flow statement, cash comprises cash on hand and demand deposits and cash equivalents comprise highly liquid investments that are convertible into cash with an insignificant risk of changes in value with original maturities of three months or less. Repurchase and reverse repurchase agreements are not considered to be part of cash equivalents. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 274 | ## Financial statements of Barclays Bank PLC ## Parent company accounts | | | | | | --- | --- | --- | --- | | | | | | | Balance sheet | | | | | | | | | | | | 2024 | 2023 | | As at 31 December | Notes | £m | £m | | Assets | | | | | Cash and balances at central banks | | 151,288 | 153,701 | | Cash collateral and settlement balances | | 75,284 | 75,271 | | Debt securities at amortised cost | | 35,519 | 33,576 | | Loans and advances at amortised cost to banks | | 14,834 | 15,308 | | Loans and advances at amortised cost to customers | | 210,218 | 227,131 | | Reverse repurchase agreements and other similar secured lending at amortised cost | | 5,546 | 6,876 | | Trading portfolio assets | 11 | 102,030 | 112,654 | | Financial assets at fair value through the income statement | 12 | 253,812 | 263,960 | | Derivative financial instruments | 13 | 260,487 | 225,301 | | Financial assets at fair value through other comprehensive income | 14 | 49,499 | 50,381 | | Investments in associates and joint ventures | 33 | 12 | 12 | | Investment in subsidiaries | 31 | 20,747 | 19,105 | | Goodwill and intangible assets | 20 | 104 | 104 | | Property, plant and equipment | 18 | 125 | 117 | | Current tax assets | | 757 | 719 | | Deferred tax assets | 9 | 2,638 | 2,509 | | Retirement benefit assets | 30 | 3,202 | 3,621 | | Other assets | | 1,915 | 3,392 | | Total assets | | 1,188,017 | 1,193,738 | | Liabilities | | | | | Deposits at amortised cost from banks | | 12,039 | 13,616 | | Deposits at amortised cost from customers | | 336,054 | 333,687 | | Cash collateral and settlement balances | | 62,386 | 58,292 | | Repurchase agreements and other similar secured borrowing at amortised cost | | 46,196 | 43,951 | | Debt securities in issue | | 12,991 | 24,833 | | Subordinated liabilities | 25 | 41,240 | 35,237 | | Trading portfolio liabilities | 11 | 41,015 | 50,995 | | Financial liabilities designated at fair value | 15 | 329,522 | 351,945 | | Derivative financial instruments | 13 | 248,417 | 221,365 | | Current tax liabilities | | 298 | 331 | | Deferred tax liabilities | 9 | 2 | 2 | | Retirement benefit liabilities | 30 | 66 | 71 | | Provisions | 22 | 435 | 477 | | Other liabilities | 21 | 4,456 | 5,708 | | Total liabilities | | 1,135,117 | 1,140,510 | | Equity | | | | | Called up share capital and share premium | 26 | 2,348 | 2,348 | | Other equity instruments | 26 | 14,311 | 15,472 | | Other reserves | 27 | (3,928) | (3,209) | | Retained earnings | | 40,169 | 38,617 | | Total equity | | 52,900 | 53,228 | | Total liabilities and equity | | 1,188,017 | 1,193,738 | Note 1As permitted by section 408 of the Companies Act 2006 an income statement for the parent company has not been presented. Included in shareholders’ equity for Barclays Bank plc is a profit after tax for the year ended 2024 of £4,965m (2023: £2,866m, 2022: £2,784m ). The Board of Directors approved the financial statements on pages [274](#ia16d0659cd524c01ae655d82fa382c3d_445) to [277](#ia16d0659cd524c01ae655d82fa382c3d_460) on 12 February 2025. CS Venkatakrishnan Barclays Bank Group – Chief Executive Officer Aunoy Banerjee Barclays Bank Group – Chief Financial Officer | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 275 | ## Financial statements of Barclays Bank PLC ## Parent company accounts | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Statement of changes in equity | | | | | | | | Called up share capital and share premium1 | Other equity instruments1,2 | Other reserves3 | Retained earnings | Total equity | | | £m | £m | £m | £m | £m | | Balance as at 1 January 2024 | 2,348 | 15,472 | (3,209) | 38,617 | 53,228 | | Profit after tax | — | 1,225 | — | 3,740 | 4,965 | | Currency translation movements | — | — | 148 | — | 148 | | Fair value through other comprehensive income reserve | — | | (463) | — | (463) | | Cash flow hedges | — | | 376 | — | 376 | | Retirement benefit remeasurement | — | | — | (295) | (295) | | Own credit reserve | — | | (781) | — | (781) | | Total comprehensive income for the year | | 1,225 | (720) | 3,445 | 3,950 | | Issue and redemption of other equity instruments | — | (1,161) | — | (92) | (1,253) | | Other equity instruments coupons paid | — | (1,225) | — | — | (1,225) | | Employee settled Barclays PLC share schemes | — | — | — | 475 | 475 | | Vesting of Barclays PLC shares under share-based payment schemes | — | — | — | (448) | (448) | | Dividends paid on ordinary shares | — | — | — | (1,782) | (1,782) | | Dividends paid on preference shares and other shareholders' equity | — | — | — | (41) | (41) | | Other reserve movements | — | — | 1 | (5) | (4) | | Balance as at 31 December 2024 | 2,348 | 14,311 | (3,928) | 40,169 | 52,900 | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Statement of changes in equity | | | | | | | | Called up share capital and share premium1 | Other equity instruments1,2 | Other reserves3 | Retained earnings | Total equity | | | £m | £m | £m | £m | £m | | Balance as at 1 January 2023 | 2,348 | 15,398 | (4,552) | 39,273 | 52,467 | | Profit after tax | — | 1,247 | — | 1,619 | 2,866 | | Currency translation movements | — | — | (572) | — | (572) | | Fair value through other comprehensive income reserve | — | — | 132 | — | 132 | | Cash flow hedges | — | — | 2,483 | — | 2,483 | | Retirement benefit remeasurement | — | — | — | (839) | (839) | | Own credit reserve | — | — | (703) | — | (703) | | Total comprehensive income for the year | — | 1,247 | 1,340 | 780 | 3,367 | | Issue and redemption of other equity instruments | — | 74 | — | (12) | 62 | | Other equity instruments coupons paid | — | (1,247) | — | — | (1,247) | | Employee settled Barclays PLC share schemes | — | — | — | 406 | 406 | | Vesting of Barclays PLC shares under share-based payment schemes | — | — | — | (442) | (442) | | Dividends paid on ordinary shares | — | — | — | (1,348) | (1,348) | | Dividends paid on preference shares and other shareholders' equity | — | — | — | (40) | (40) | | Other reserve movements | — | — | 3 | — | 3 | | Balance as at 31 December 2023 | 2,348 | 15,472 | (3,209) | 38,617 | 53,228 | Notes 1For further details refer to Note 26. 2Other equity instruments includes AT1 securities issued by Barclays Bank PLC and borrowings of $6bn (2023: $6bn) from a wholly-owned, indirect subsidiary of Barclays Bank PLC. The borrowings have been recorded as equity since, under their terms, interest payments are non cumulative and discretionary whilst repayment of principal is perpetually deferrable by Barclays Bank PLC. Should Barclays Bank PLC make a discretionary dividend payment on its ordinary shares in the six months preceding the date of an interest payment, it will be obliged to make that interest payment. In 2024, interest paid on these borrowings was £433m (2023: £439m). 3For further details refer to Note 27. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 276 | ## Financial statements of Barclays Bank PLC ## Parent company accounts | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Statement of changes in equity | | | | | | | | Called up share capital and share premium | Other equity instruments1 | Other reserves | Retained earnings | Total equity | | | £m | £m | £m | £m | £m | | Balance as at 1 January 2022 | 2,348 | 14,400 | (1,236) | 37,180 | 52,692 | | Profit after tax | — | 982 | — | 1,802 | 2,784 | | Currency translation movements | — | — | 1,149 | — | 1,149 | | Fair value through other comprehensive income reserve | — | — | (1,232) | — | (1,232) | | Cash flow hedges | — | — | (4,556) | — | (4,556) | | Retirement benefit remeasurement | — | — | — | (315) | (315) | | Own credit reserve | — | — | 1,359 | — | 1,359 | | Total comprehensive income for the year | — | 982 | (3,280) | 1,487 | (811) | | Issue and redemption of other equity instruments | — | 998 | — | 38 | 1,036 | | Other equity instruments coupons paid | — | (982) | — | — | (982) | | Employee settled Barclays PLC share schemes | — | — | — | 425 | 425 | | Vesting of Barclays PLC shares under share-based payment schemes | — | — | — | (413) | (413) | | Dividends paid on ordinary shares | — | — | — | (200) | (200) | | Dividends paid on preference shares and other shareholders' equity | — | — | — | (31) | (31) | | Own credit realisation | — | — | (36) | 36 | — | | Net equity impact on intra group transfers | — | — | — | 750 | 750 | | Other reserve movements | — | — | — | 1 | 1 | | Balance as at 31 December 2022 | 2,348 | 15,398 | (4,552) | 39,273 | 52,467 | Note 1  Other equity instruments includes AT1 securities issued by Barclays Bank PLC and borrowings of $6b n from a wholly-owned, indirect subsidiary of Barclays Bank PLC. The borrowings have been recorded as equity since, under their terms, interest payments are non cumulative and discretionary whilst repayment of principal is perpetually deferrable by Barclays Bank PLC. Should Barclays Bank PLC make a discretionary dividend payment on its ordinary shares in the six months preceding the date of an interest payment, it will be obliged to make that interest payment. In 2022, interest paid on these borrowings was £250m. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 277 | ## Financial statements of Barclays Bank PLC ## Parent company accounts | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Cash flow statement | | | | | | | | 2024 | 2023 | 2022 | | For the year ended 31 December | Notes | £m | £m | £m | | Reconciliation of profit before tax to net cash flows from operating activities: | | | | | | Profit before tax | | 5,165 | 2,977 | 2,744 | | Adjustment for non-cash items: | | | | | | Credit impairment charges | | 216 | 98 | 165 | | Impairment of Investments in subsidiaries | | (811) | 166 | 2,533 | | Depreciation, amortisation and impairment of property, plant, equipment and intangibles | | 30 | 33 | 72 | | Provisions and pensions charges/(credits) | | 95 | (95) | 996 | | Net loss/(profit) on disposal of investments and property, plant and equipment | | (48) | 2 | (115) | | Other non-cash movements including exchange rate movements | | 1,721 | 5,991 | (11,858) | | Changes in operating assets and liabilities | | | | | | Net decrease in cash collateral and settlement balances | | 4,781 | 137 | 2,671 | | Net decrease/(increase) in loans and advances at amortised cost | | 14,178 | (40,968) | (19,764) | | Net decrease/(increase) in reverse repurchase agreements and other similar secured lending | | 1,330 | (968) | (926) | | Net increase in deposits at amortised cost | | 790 | 33,408 | 27,134 | | Net (decrease)/increase in debt securities in issue | | (11,842) | (15,333) | 7,581 | | Net increase/(decrease) in repurchase agreements and other similar secured borrowing | | 2,245 | 17,644 | (2,895) | | Net (increase)/decrease in derivative financial instruments | | (8,134) | 4,205 | (1,723) | | Net decrease/(increase) in trading portfolio assets | | 10,624 | (29,611) | 13,681 | | Net (decrease)/increase in trading portfolio liabilities | | (9,980) | (1,098) | 1,977 | | Net (increase)/decrease in financial assets and liabilities at fair value through the income statement | | (12,275) | 34,459 | (959) | | Net decrease/(increase) in other assets | | 1,451 | (244) | (3,035) | | Net (decrease)/increase in other liabilities | | (1,406) | (2,378) | 2,196 | | Corporate income tax | | 135 | 249 | 422 | | Net cash from operating activities | | (1,735) | 8,674 | 20,897 | | Purchase of debt securities at amortised cost | | (17,113) | (11,984) | (18,519) | | Proceeds from redemption or sale of debt securities at amortised cost | | 15,120 | 2,023 | 12,107 | | Purchase of financial assets at fair value through other comprehensive income | | (49,318) | (46,808) | (36,084) | | Proceeds from sale or redemption of financial assets at fair value through other comprehensive income | | 49,258 | 39,852 | 35,066 | | Purchase of property, plant and equipment and intangibles | | (21) | (22) | (28) | | Disposal of subsidiaries and associates, net of cash disposed | | 48 | (1) | 125 | | Increase in investment in subsidiaries | | (824) | (7) | (2,667) | | Other cash flows associated with investing activities | | — | — | (1) | | Net cash from investing activities | | (2,850) | (16,947) | (10,001) | | Dividends paid and other coupon payments on equity instruments | | (3,048) | (2,635) | (1,213) | | Issuance of subordinated liabilities | 25 | 11,143 | 5,643 | 14,904 | | Redemption of subordinated liabilities | 25 | (4,963) | (7,209) | (8,104) | | Issue of shares and other equity instruments | 26 | 970 | 2,499 | 3,134 | | Repurchase of shares and other equity instruments | 26 | (2,131) | (2,425) | (2,136) | | Capital contribution | | — | — | 750 | | Vesting of shares under employee share schemes | | (448) | (442) | (413) | | Net cash from financing activities | | 1,523 | (4,569) | 6,922 | | Effect of exchange rates on cash and cash equivalents | | (1,380) | (3,938) | 8,166 | | Net (decrease)/increase in cash and cash equivalents | | (4,442) | (16,780) | 25,984 | | Cash and cash equivalents at beginning of year | | 168,263 | 185,043 | 159,059 | | Cash and cash equivalents at end of year | | 163,821 | 168,263 | 185,043 | | Cash and cash equivalents comprise: | | | | | | Cash and balances at central banks | | 151,288 | 153,701 | 170,307 | | Loans and advances to banks with original maturity of three months or less | | 136 | 3,130 | 3,466 | | Cash collateral balances with central banks with original maturity of three months or less | | 11,025 | 10,325 | 10,625 | | Treasury and other eligible bills with original maturity of three months or less | | 1,372 | 1,107 | 645 | | Cash and cash equivalents at end of year | | 163,821 | 168,263 | 185,043 | Interest received was £25,935m (2023: £24,134m; 2022: £9,638m) and interest paid was £23,199m (2023: £20,609m ; 2022: £8,567m). 2023 and 2022 comparative figures have been amended to make the cash flow statement more relevant following a review of the disclosure and the basis of preparation applied. Following that review, the basis of preparation of interest received and paid has been amended to reflect interest received and interest paid on activity where interest is recognised on an effective interest rate basis to make the cash flow statement information more relevant with reference to net interest income recognised in the income statement and enhancing comparability with industry peers. Previously, amounts related to trading activities were also included. Dividends received were £1,803m ( 2023: £529m; 2022: £1,862m). Barclays Bank PLC was required to maintain balances with central banks and other regulatory authorities of £589m (2023 : £767m; 2022: £1,070m). For the purposes of the cash flow statement, cash comprises cash on hand and demand deposits and cash equivalents comprise highly liquid investments that are convertible into cash with an insignificant risk of changes in value with original maturities of three months or less. Repurchase and reverse repurchase agreements are not considered to be part of cash equivalents. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 278 | ## Notes to the financial statements ## For the year ended 31 December 2024 | | | --- | | | | This section describes the Barclays Bank Group’s material accounting policies and critical accounting judgements and estimates that relate to the financial statements and notes as a whole. If an accounting policy or a critical accounting judgement or estimate relates to a particular note, disclosure is contained within the relevant note. | 1 Material accounting policies 1. Reporting entity Barclays Bank PLC is a public company limited by shares registered in England under company number 1026167, having its registered office at 1 Churchill Place, London, E14 5HP. These financial statements are prepared for Barclays Bank PLC and its subsidiaries (the Barclays Bank Group) under Section 399 of the Companies Act 2006. The Barclays Bank Group is a major global financial services provider engaged in credit cards, wholesale banking, investment banking, wealth management and investment management services. In addition, separate financial statements have been presented for the holding company. 2. Compliance with International Financial Reporting Standards The consolidated financial statements of the Barclays Bank Group, and the separate financial statements of Barclays Bank PLC, have been prepared in accordance with UK-adopted international accounting standards. The consolidated financial statements of the Barclays Bank Group, and the separate financial statements of Barclays Bank PLC, have also been prepared in accordance with (1) International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), including interpretations issued by the IFRS Interpretations Committee, as there are no applicable differences from IFRS as issued by the IASB for the periods presented; and (2) IFRS adopted pursuant to Regulation (EC) No. 1606/2002 as it applies in the European Union (“IFRS as adopted by the EU”). There are currently no differences between UK-adopted international accounting standards and IFRS as adopted by the EU and therefore no reconciliation of variances is provided. The principal accounting policies applied in the preparation of the consolidated and separate financial statements are set out below, and in the relevant notes to the financial statements. These policies have been consistently applied, with the exception of Classification of Liabilities as Current or Non-current (Amendments to IAS 1), which was effective from 1 January 2024 and applies retrospectively. 3. Basis of preparation The consolidated and separate financial statements have been prepared under the historical cost convention modified to include the fair valuation of investment property, and particular financial instruments, to the extent required or permitted under IFRS as set out in the relevant accounting policies. The financial statements are stated in millions of Pounds Sterling (£m), the functional currency of Barclays Bank PLC. The financial statements have been prepared on a going concern basis, in accordance with the Companies Act 2006 as applicable to companies using IFRS. The financial statements are prepared on a going concern basis as the Board is satisfied that the Barclays Bank Group and parent company have the resources to continue in business for a period of at least 12 months from approval of the financial statements. In making this assessment, the Board has considered a wide range of information relating to present and future conditions and has reviewed a working capital report (WCR). The WCR is used by the Board to assess the future performance of the Barclays Bank Group and whether it has the resources in place that are required to meet its ongoing regulatory requirements. The WCR assessment is based upon business plans which contain future forecasts of profitability taken from the Barclays Bank Group’s medium term plan as well as projections of regulatory capital requirements and business funding needs. The WCR also includes an assessment of the impact of internally generated stress testing scenarios on the liquidity and capital requirement forecasts. The stress tests used were based upon an assessment of reasonably possible downside economic scenarios that the Barclays Bank Group could experience. The WCR showed that the Barclays Bank Group had sufficient capital and liquidity in place to support its future business requirements and remained above its regulatory minimum requirements in the stress scenarios. Accordingly, the Board concluded that there was a reasonable expectation that the Barclays Bank Group has adequate resources to continue as a going concern for a period of at least 12 months from the date of approval of the financial statements. 4. Accounting policies The Barclays Bank Group prepares financial statements in accordance with IFRS. The Barclays Bank Group’s material accounting policies relating to specific financial statement items, together with a description of the accounting estimates and judgements that were critical to preparing those items, are set out under the relevant notes. Accounting policies that affect the financial statements as a whole are set out below. (i) Consolidation The consolidated financial statements combine the financial statements of Barclays Bank PLC and all its subsidiaries. Subsidiaries are entities over which Barclays Bank PLC has control. The Barclays Bank Group has control over another entity when the Barclays Bank Group has all of the following: 1) power over the relevant activities of the investee, for example through voting or other rights; 2) exposure to, or rights to, variable returns from its involvement with the investee; and 3) the ability to affect those returns through its power over the investee. As the consolidated financial statements include partnerships where the Barclays Bank Group member is a partner, advantage has been taken of the exemption under Regulation 7 of the Partnership (Accounts) Regulations 2008 with regard to preparing and filing of individual partnership financial statements. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 279 | Notes to the financial statements For the year ended 31 December 2024 Details of the principal subsidiaries are given in Note 31. ![]() (ii) Foreign currency translation Transactions in foreign currencies are translated into Sterling at the rate ruling on the date of the transaction. Foreign currency monetary balances are translated into Sterling at the period end exchange rates. Exchange gains and losses on such balances are taken to the income statement. The Barclays Bank Group’s foreign operations (including subsidiaries, joint ventures, associates and branches) based mainly outside the UK may have different functional currencies. The functional currency of an operation is the currency of the main economy to which it is exposed. Prior to consolidation (or equity accounting) the assets and liabilities of non-Sterling operations are translated at the period end exchange rate and items of income, expense and other comprehensive income are translated into Sterling at the rate on the date of the transactions. Exchange differences arising on the translation of foreign operations are included in currency translation reserves within equity. These are transferred to the income statement when the Barclays Bank Group disposes of the entire interest in a foreign operation, when partial disposal results in the loss of control of an interest in a subsidiary, when an investment previously accounted for using the equity method is accounted for as a financial asset, or on the disposal of a foreign operation within a branch. (iii) Financial assets and liabilities Recognition The Barclays Bank Group recognises financial assets and liabilities when it becomes a party to the terms of the contract. Trade date or settlement date accounting is applied depending on the classification of the financial asset. Classification and measurement Financial assets are classified on the basis of two criteria: i) the business model within which financial assets are managed; and ii) their contractual cash flow characteristics (whether the cash flows represent ‘solely payments of principal and interest’ (SPPI)). The Barclays Bank Group assesses the business model criteria at a portfolio level. Information that is considered in determining the applicable business model includes (i) policies and objectives for the relevant portfolio, (ii) how the performance and risks of the portfolio are managed, evaluated and reported to management, and (iii) the frequency, volume and timing of sales in prior periods, sales expectation for future periods, and the reasons for such sales. The contractual cash flow characteristics of financial assets are assessed with reference to whether the cash flows represent SPPI. Terms that could change the contractual cash flows so that it would not meet the condition for SPPI are considered, including: (i) contingent and leverage features, (ii) non-recourse arrangements, (iii) features that could modify the time value of money, and (iv) Social, Environmental and Sustainability-linked features. Terms with de-minimis impact do not preclude cash flows from representing SPPI. The accounting policy for each type of financial asset or liability is included within the relevant note for the item. The Barclays Bank Group’s policies for determining the fair values of the assets and liabilities are set out in Note 16. Derecognition The Barclays Bank Group derecognises a financial asset, or a portion of a financial asset, from its balance sheet where (i) the contractual rights to cash flows from the asset have expired, or (ii) the contractual rights to the cash flows from the asset have been transferred (usually by sale) and with them either (a) substantially all the risks and rewards of the asset have been transferred, or (b) where neither substantially all the risks and rewards have been transferred or retained, where control over the asset has been lost. Financial liabilities are de-recognised when the liability has been settled, has expired or has been extinguished. An exchange of an existing financial liability for a new liability with the same lender on substantially different terms – generally a difference of 10% or more in the present value of the cash flows or a substantive qualitative amendment – is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. It may not be obvious whether substantially all of the risks and rewards of a transferred asset, or portion of an asset, have been transferred. It is often necessary to perform a quantitative analysis that compares the Barclays Bank Group's exposure to variability in asset cash flows before the transfer with its retained exposure after the transfer. A cash flow analysis of this nature may require judgement. In particular, it is necessary to estimate the asset’s expected future cash flows as well as potential variability around this expectation. The method of estimating expected future cash flows depends on the nature of the asset, with market and market-implied data used to the greatest extent possible. The potential variability around this expectation is typically determined by stressing underlying parameters to create reasonable alternative upside and downside scenarios. Probabilities are then assigned to each scenario. Stressed parameters may include default rates, loss severity, or prepayment rates. Accounting for reverse repurchase and repurchase agreements including other similar lending and borrowing Reverse repurchase agreements (and stock borrowing or similar transactions) are a form of secured lending whereby the Barclays Bank Group provides a loan or cash collateral in exchange for the transfer of collateral, generally in the form of marketable securities subject to an agreement to transfer the securities back at a fixed price in the future. Repurchase agreements are where the Barclays Bank Group obtains such loans or cash collateral, in exchange for the transfer of collateral. The Barclays Bank Group purchases (a reverse repurchase agreement) or borrows securities subject to a commitment to resell or return them. The securities are not included in the balance sheet as the Barclays Bank Group does not acquire the risks and rewards of ownership. Consideration paid (or cash collateral provided) is accounted for as a loan asset at amortised cost, unless it is designated or mandatorily at fair value through profit and loss. The Barclays Bank Group may also sell (a repurchase agreement) or lend securities subject to a commitment to repurchase or redeem them. The securities are retained on the balance sheet as the Barclays Bank Group retains substantially all the risks and rewards of ownership. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 280 | Notes to the financial statements For the year ended 31 December 2024 Consideration received (or cash collateral provided) is accounted for as a financial liability at amortised cost, unless it is designated at fair value through profit and loss. (iv) Issued debt and equity instruments Issued financial instruments or their components are classified as liabilities if the contractual arrangement results in the Barclays Bank Group having an obligation to either deliver cash or another financial asset, or a variable number of equity shares, to the holder of the instrument. If this is not the case, the instrument is generally an equity instrument and the proceeds included in equity, net of transaction costs. Dividends and other returns to equity holders are recognised when paid or declared by the members at the Annual General Meeting and treated as a deduction from equity. Where issued financial instruments contain both liability and equity components, these are accounted for separately. The fair value of the debt is estimated first and the balance of the proceeds is included within equity. (v) Cash flow statement Cash comprises cash on hand and balances at central banks. Cash equivalents comprise loans and advances to banks, cash collateral balances with central banks related to payment schemes and treasury and other eligible bills, all with original maturities of three months or less. Investments in debt securities at amortised cost are deemed to be investing activities for the purposes of the cash flow statement, except those instruments considered to be cash equivalents. 5. New and amended standards and interpretations The accounting policies adopted have been consistently applied, with the exception of the following: Classification of Liabilities as Current or Non-current (Amendments to IAS 1) In January 2020 the IASB issued amendments to IAS 1 to clarify the presentation of liabilities in the balance sheet, with an effective date that was subsequently deferred to 1 January 2024. The amendments clarify that a liability should be classified as non-current only if the entity has the right to defer settlement of the liability for at least 12 months after the reporting period, and that (i) the right to defer settlement must exist at the end of the reporting period and (ii) management’s intentions or expectations about whether it will exercise its right to defer settlement does not affect the classification. Further clarifications include how lending conditions affect classification and classification of liabilities the entity will or may settle by issuing its own equity instruments. In October 2022, the IASB also issued further amendments to IAS 1 to improve the information an entity provides when its right to defer settlement of a liability for at least 12 months is subject to compliance with covenants, and to respond to stakeholders’ concerns about the classification of such a liability as current or non-current. The impact to the Barclays Bank Group from these amendments is not considered to be material. Future accounting developments The following accounting standards have been issued by the IASB but are not yet effective: Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments In May 2024, the IASB issued targeted amendments to IFRS 9 to address feedback received from stakeholders following a post- implementation review.  The amendments include: • additional guidance to clarify when certain financial assets may be compliant with SPPI requirements, including instruments with contingent features (e.g. ESG-linked financing), as well as contractually-linked instruments and non-recourse financing. • clarifying the derecognition requirements for financial assets and financial liabilities, including establishing a new accounting policy choice for derecognition of a financial liability when a payment is initiated by the reporting entity using an electronic payment system provided specified criteria is met. The amendments are effective from 1 January 2026, but are not yet endorsed for use in the UK. The Barclays Bank Group is currently assessing the impact of these amendments. IFRS 18 Presentation and Disclosure in Financial Statements In August 2024, the IASB issued a new IFRS Accounting Standard to replace IAS 1 Presentation of Financial Statements.  The new standard creates detailed requirements for the classification and aggregation of income and expenses in the income statement, and disclosure requirements for management-defined performance measures. The new standard is effective from 1 January 2027, but has not yet been endorsed for use in the UK.  The Barclays Bank Group is currently assessing the impact of these amendments. Amendments to IAS 21 - Lack of Exchangeability In August 2023, the IASB issued amendments to IAS 21 to define when a currency is exchangeable into another currency and, when it is not, to determine the exchange rate to use. The amendments are effective from 1 January 2025, however the impact to the Barclays Bank Group is not expected to be material. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 281 | ## Notes to the financial statements ## For the year ended 31 December 2024 6. Critical accounting estimates and judgements The preparation of financial statements in accordance with IFRS requires the use of estimates. It also requires management to exercise judgement in applying the accounting policies. The key areas involving a higher degree of judgement or complexity or areas where assumptions are significant to the consolidated and individual financial statements are highlighted under the relevant note. | | | | | | --- | --- | --- | --- | | | | | | | | Judgements | Estimates | Further information | | Credit impairment charges | Identification and application of management adjustments in response to circumstances outside the scope of the model. | Estimates include modelling assumptions such as estimating forward-looking modelled parameters (PD, EAD  & LGD), and a range of unbiased future economic scenarios and scenario weightings. | on page [290](#ie02619c2f52348d083353fdb7a76647a_46254) | | Tax | Recognition of deferred tax assets and determination of provisions for uncertain tax positions. | Measurement of deferred tax balances and the level of provisioning for uncertain tax positions include forward- looking assumptions and estimates. | on page [292](#i4313960898c24055ba4b78f834ff1787_33222) | | Fair value of financial instruments | Classification of financial instruments with significant unobservable inputs as Level 3. | Valuation of Level 3 assets and liabilities are typically determined by referencing observable inputs, historical data, or employing other analytical techniques. | on page [313](#ibf22ba0762fa409d876740d82a93ea35_7279) | | Pensions and post-retirement benefit obligations | - | Valuation of defined benefit scheme obligations includes assumptions on post-retirement mortality, discount rates and inflation. | on page [355](#id9ed1190facb4e2fb9979377d6df9ba1_9433) | | Provisions including conduct and legal, competition and regulatory matters | Determination as to whether a present obligation exists. | Estimation uncertainty in the probability, timing, nature and quantum of outflows. | on page [336](#if4df17c443fb40c5aad9701893b65883_1606) | 7. Other disclosures To improve transparency and ease of reference, by concentrating related information in one place, certain disclosures required under IFRS have been included within the Risk review section as follows: ▪ Credit risk on pages [145](#ia16d0659cd524c01ae655d82fa382c3d_157) to [146](#i42ccfa2716954faaaca95f14f090c573_6721) and on pages [158](#ia16d0659cd524c01ae655d82fa382c3d_187) to [208](#i8bf186c389d74dbc9db6fed0bc55660b_0-0-1-13-3489961) ▪ Market risk on page [146](#ia16d0659cd524c01ae655d82fa382c3d_160) and on pages [210](#ia16d0659cd524c01ae655d82fa382c3d_277) to [211](#i6b3b12fd3f6c4df79305d80843a92c56_727) ▪ Treasury and capital risk – capital on page [147](#ia16d0659cd524c01ae655d82fa382c3d_163) to [148](#i471f993b59a845c68b482224569eaef7_9650) and on page [222](#ia16d0659cd524c01ae655d82fa382c3d_319) ▪ Treasury and capital risk – liquidity on pages [147](#ia16d0659cd524c01ae655d82fa382c3d_163) to [148](#i471f993b59a845c68b482224569eaef7_9650) and on pages [213](#ia16d0659cd524c01ae655d82fa382c3d_295) to [221](#ie24a008f462643b3bff3c49cf3e6c4a8_14-0-1-1-2922537) These disclosures are covered by the Audit opinion (included on pages [246](#ia16d0659cd524c01ae655d82fa382c3d_412) to [267](#i3db6fc5ba1d149f9befee11be42b484f_9165)) where referenced as audited. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 282 | ## Notes to the financial statements ## Financial ## performance ## and returns The notes included in this section focus on the results and performance of the Barclays Bank Group. Information on the segmental ![]() performance, income generated, expenditure incurred, tax, and dividends are included here. 2 Segmental reporting From 2024, the Barclays Bank Group presents its reporting segments through the following operating divisions, in addition to Head Office: a. Barclays UK Corporate Bank b. Barclays Private Bank and Wealth Management c. Barclays Investment Bank d. Barclays US Consumer Bank The previously reported Head Office will additionally include the held for sale German consumer finance business, the Merchant Acquiring component of the Payments business which were both previously reported within Consumer, Cards and Payments. For more information about each reporting segment, refer to page [1](#ia16d0659cd524c01ae655d82fa382c3d_19). | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Analysis of results by business | | | | | | | | | | | | | | | | For the year ended 31 December 2024 | Barclays UK Corporate Bank | Barclays Private Bank and  Wealth Management | Barclays Investment Bank | Barclays US Consumer Bank | Head Office | Barclays Bank Group | | | £m | £m | £m | £m | £m | £m | | Net interest income | 1,266 | 796 | 1,413 | 2,687 | 583 | 6,745 | | Non-interest income | 590 | 545 | 10,779 | 664 | (286) | 12,292 | | Total income | 1,856 | 1,341 | 12,192 | 3,351 | 297 | 19,037 | | Operating costs | (1,008) | (953) | (7,889) | (1,637) | (758) | (12,245) | | UK regulatory levies1 | (37) | (9) | (187) | — | (9) | (242) | | Litigation and conduct | (1) | — | (55) | (13) | (117) | (186) | | Total operating expenses | (1,046) | (962) | (8,131) | (1,650) | (884) | (12,673) | | Other net  income2 | — | — | — | — | — | — | | Profit/(loss) before impairment | 810 | 379 | 4,061 | 1,701 | (587) | 6,364 | | Credit impairment (charges)/releases | (76) | (6) | (123) | (1,293) | (119) | (1,617) | | Profit/(loss) before tax | 734 | 373 | 3,938 | 408 | (706) | 4,747 | | Total assets (£bn) | 61.3 | 34.1 | 1,061.8 | 34.9 | 26.4 | 1,218.5 | | Total liabilities (£bn) | 94.7 | 75.0 | 955.6 | 24.5 | 9.5 | 1,159.3 | | Number of employees (full time equivalent) | | | | | | 23,000 | | Average number of employees (full time equivalent) | | | | | | 23,400 | | Average number of employees (headcount) | | | | | | 23,500 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | For the year ended 31 December 2023 | Barclays UK Corporate Bank | Barclays Private Bank and  Wealth Management | Barclays Investment Bank | Barclays US Consumer Bank | Head Office | Barclays Bank Group | | £m | £m | £m | £m | £m | £m | | Net interest income | 1,241 | 792 | 1,705 | 2,616 | 299 | 6,653 | | Non-interest income | 620 | 443 | 9,717 | 665 | 170 | 11,615 | | Total income | 1,861 | 1,235 | 11,422 | 3,281 | 469 | 18,268 | | Operating costs | (977) | (830) | (7,847) | (1,669) | (947) | (12,270) | | UK regulatory levies1 | (8) | (4) | (123) | — | (14) | (149) | | Litigation and conduct | 1 | 2 | 5 | (6) | (46) | (44) | | Total operating expenses | (984) | (832) | (7,965) | (1,675) | (1,007) | (12,463) | | Other net  (expenses)/income2 | (3) | — | 1 | (1) | (1) | (4) | | Profit/(loss) before impairment | 874 | 403 | 3,458 | 1,605 | (539) | 5,801 | | Credit impairment (charges)/releases | 27 | (4) | (102) | (1,438) | (61) | (1,578) | | Profit/(loss) before tax | 901 | 399 | 3,356 | 167 | (600) | 4,223 | | Total assets (£bn) | 61.6 | 32.1 | 1,027.6 | 33.4 | 30.5 | 1,185.2 | | Total liabilities (£bn) | 86.8 | 61.0 | 948.9 | 21.2 | 6.8 | 1,124.7 | | Number of employees (full time equivalent) | | | | | | 23,900 | | Average number of employees (full time equivalent) | | | | | | 23,800 | | Average number of employees (headcount) | | | | | | 24,000 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 283 | ## Notes to the financial statements ## Financial ## performance ## and returns | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | For the year ended 31 December 2022 | Barclays UK Corporate Bank | Barclays Private Bank and  Wealth Management | Barclays Investment Bank | Barclays US Consumer Bank | Head Office | Barclays Bank Group | | £m | £m | £m | £m | £m | £m | | Net interest income | 1,184 | 733 | 1,142 | 1,986 | 353 | 5,398 | | Non-interest income | 534 | 300 | 11,078 | 673 | 211 | 12,796 | | Total income | 1,718 | 1,033 | 12,220 | 2,659 | 564 | 18,194 | | Operating costs | (878) | (565) | (7,153) | (1,549) | (676) | (10,821) | | UK regulatory levies1 | (7) | (4) | (119) | — | (20) | (150) | | Litigation and conduct | — | — | (1,189) | (3) | (235) | (1,427) | | Total operating expenses | (885) | (569) | (8,461) | (1,552) | (931) | (12,398) | | Other net  income2 | 1 | — | 1 | — | 2 | 4 | | Profit/(loss) before impairment | 834 | 464 | 3,760 | 1,107 | (365) | 5,800 | | Credit impairment (charges)/release | — | (5) | (181) | (624) | (123) | (933) | | Profit/(loss) before tax | 834 | 459 | 3,579 | 483 | (488) | 4,867 | | Total assets (£bn) | 88.4 | 42.7 | 1,023.8 | 30.2 | 18.4 | 1,203.5 | | Total liabilities (£bn) | 86.8 | 62.5 | 967.1 | 19.5 | 8.7 | 1,144.6 | | Number of employees (full time equivalent) | | | | | | 21,900 | | Average number of employees (full time equivalent) | | | | | | 21,100 | | Average number of employees (headcount) | | | | | | 21,300 | Note 1Comprises the impact of the BoE levy scheme and the UK bank levy 2Other net income represents the share of post-tax results of associates and joint ventures, and profit (or loss) on disposal of subsidiaries, associates and joint ventures. | | | | | | --- | --- | --- | --- | | | | | | | Income by geographic region1 | | | | | | 2024 | 2023 | 2022 | | For the year ended 31 December | £m | £m | £m | | United Kingdom | 6,075 | 6,095 | 7,962 | | Europe | 2,749 | 2,513 | 2,320 | | Americas | 8,864 | 8,200 | 6,516 | | Africa and Middle East | 82 | 87 | 63 | | Asia | 1,267 | 1,373 | 1,333 | | Total | 19,037 | 18,268 | 18,194 | | | | | | | Income from individual countries which represent more than 5% of total income | | | | | | 2024 | 2023 | 2022 | | For the year ended 31 December | £m | £m | £m | | United Kingdom | 6,075 | 6,095 | 7,962 | | United States | 8,702 | 8,013 | 6,340 | Note 1 The geographical analysis is based on the location of the office where the transactions are recorded . | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 284 | ## Notes to the financial statements ## Financial ## performance ## and returns 3 Net interest income | | | --- | | | | Accounting for interest income and expenses Interest income on loans and advances at amortised cost, financial assets at fair value through other comprehensive income, interest expense on financial liabilities held at amortised cost are calculated using the effective interest method which allocates interest, and direct and incremental fees and costs, over the expected lives of the assets and liabilities. The effective interest method requires the Barclays Bank Group to estimate future cash flows, in some cases based on its experience of customers’ behaviour, considering all contractual terms of the financial instrument, as well as the expected lives of the assets and liabilities. The Barclays Bank Group incurs certain costs to originate credit card balances with the most significant being co-brand partner fees. To the extent these costs are attributed to customers that continuously carry an outstanding balance (revolvers) and incremental to the origination of credit card balances, they are capitalised and subsequently included within the calculation of the effective interest rate. They are amortised to interest income over the period of expected repayment of the originated balance. Costs attributed to customers that settle their outstanding balances each period (transactors) are deferred on the balance sheet as a cost of obtaining a contract and amortised to fee and commission expense over the life of the customer relationship (refer to Note 4). There are no other individual estimates involved in the calculation of effective interest rates that are material to the results or financial position. | | | | | | | --- | --- | --- | --- | | | | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Cash and balances at central banks | 9,567 | 8,384 | 2,097 | | Debt securities at amortised cost | 1,737 | 1,819 | 1,035 | | Loans and advances at amortised cost | 9,508 | 7,854 | 6,419 | | Fair value through other comprehensive income | 2,335 | 3,808 | 1,493 | | Cash collateral | 2,026 | 1,987 | 405 | | Other1 | 607 | 409 | 330 | | Interest and similar income | 25,780 | 24,261 | 11,779 | | Deposits at amortised cost | (10,513) | (8,741) | (3,104) | | Debt securities in issue | (2,847) | (3,030) | (1,473) | | Subordinated liabilities | (2,990) | (2,697) | (966) | | Cash collateral | (2,185) | (2,206) | (396) | | Other2 | (500) | (934) | (442) | | Interest and similar expense | (19,035) | (17,608) | (6,381) | | Net interest income | 6,745 | 6,653 | 5,398 | Notes 1    Includes interest income from reverse repurchase agreements and other similar secured lending at amortised cost and negative interest on liabilities 2    Includes interest expense from repurchase agreement and other similar secured lending at amortised cost and negative expense on assets Interest and similar income presented above represents interest revenue calculated using the effective interest method. Costs to originate credit card balances of £963m (2023: £885m; 2022: £747m) have been amortised to interest and similar income during the year. 4 Net fee and commission income | | | --- | | | | Accounting for net fee and commission income The Barclays Bank Group recognises fee and commission income charged for services provided by the Barclays Bank Group as and when performance obligations are satisfied, for example, on completion of the underlying transaction. Incremental costs are reported within fee and commission expense if they are directly attributable to generating identifiable fee and commission income. Where the contractual arrangements also result in the Barclays Bank Group recognising financial instruments in scope of IFRS 9, such financial instruments are initially recognised at fair value in accordance with IFRS 9 before applying the provisions of IFRS 15. | Fee and commission income is disaggregated below by fee types that reflect the nature of the services offered across the Barclays Bank Group and operating segments, in accordance with IFRS 15 . The below table includes a total for fees in scope of IFRS 15 . Refer to Note 2 for more detailed information about operating segments. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 285 | ## Notes to the financial statements ## Financial ## performance ## and returns | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 2024 | | | | | | | | | | | | | | | | Barclays UK Corporate Bank | Barclays Private Bank and Wealth Management | Barclays Investment Bank | Barclays US Consumer Bank | Head Office | Barclays Bank Group | | | £m | £m | £m | £m | £m | £m | | Fee type | | | | | | | | Transactional | 448 | 33 | 336 | 2,661 | 322 | 3,800 | | Advisory | — | 319 | 739 | — | — | 1,058 | | Brokerage and execution | — | 129 | 1,580 | — | — | 1,709 | | Underwriting and syndication | 92 | — | 2,596 | — | — | 2,688 | | Other | 11 | 3 | 51 | — | 29 | 94 | | Total revenue from contracts with customers | 551 | 484 | 5,302 | 2,661 | 351 | 9,349 | | Other non-contract fee income | 25 | — | 112 | — | — | 137 | | Fee and commission income | 576 | 484 | 5,414 | 2,661 | 351 | 9,486 | | Fee and commission expense | (95) | (38) | (1,127) | (1,855) | (100) | (3,215) | | Net fee and commission income | 481 | 446 | 4,287 | 806 | 251 | 6,271 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 2023 | | | | | | | | | | | | | | | | Barclays UK Corporate Bank | Barclays Private Bank and Wealth Management | Barclays Investment Bank | Barclays US Consumer Bank | Head Office | Barclays Bank Group | | | £m | £m | £m | £m | £m | £m | | Fee type | | | | | | | | Transactional | 433 | 32 | 327 | 2,603 | 297 | 3,692 | | Advisory | — | 251 | 652 | — | — | 903 | | Brokerage and execution | — | 89 | 1,674 | — | — | 1,763 | | Underwriting and syndication | 82 | — | 1,997 | — | — | 2,079 | | Other | 12 | 3 | 57 | — | 60 | 132 | | Total revenue from contracts with customers | 527 | 375 | 4,707 | 2,603 | 357 | 8,569 | | Other non-contract fee income | 28 | 1 | 110 | — | — | 139 | | Fee and commission income | 555 | 376 | 4,817 | 2,603 | 357 | 8,708 | | Fee and commission expense | (102) | (34) | (1,253) | (1,765) | (93) | (3,247) | | Net fee and commission income | 453 | 342 | 3,564 | 838 | 264 | 5,461 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 2022 | | | | | | | | | | | | | | | | Barclays UK Corporate Bank | Barclays Private Bank and Wealth Management | Barclays Investment Bank | Barclays US Consumer Bank | Head Office | Barclays Bank Group | | | £m | £m | £m | £m | £m | £m | | Fee type | | | | | | | | Transactional | 378 | 31 | 296 | 2,294 | 253 | 3,252 | | Advisory | — | 144 | 820 | — | — | 964 | | Brokerage and execution | — | 56 | 1,465 | — | — | 1,521 | | Underwriting and syndication | 75 | 1 | 1,961 | — | — | 2,037 | | Other | 12 | 4 | 86 | 6 | 147 | 255 | | Total revenue from contracts with customers | 465 | 236 | 4,628 | 2,300 | 400 | 8,029 | | Other non-contract fee income | 28 | 4 | 110 | — | — | 142 | | Fee and commission income | 493 | 240 | 4,738 | 2,300 | 400 | 8,171 | | Fee and commission expense | (71) | (15) | (952) | (1,618) | (89) | (2,745) | | Net fee and commission income | 422 | 225 | 3,786 | 682 | 311 | 5,426 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 286 | ## Notes to the financial statements ## Financial ## performance ## and returns Fee types Transactional Transactional fees are service charges on deposit accounts, cash management services fees and transactional processing fees. These include interchange and merchant fee income generated from credit and bank card usage. Transaction and processing fees are recognised at the point in time the transaction occurs or service is performed. Interchange and merchant fees are recognised upon settlement of the card transaction payment. The Barclays Bank Group incurs certain card related costs including those related to cardholder reward programmes and payments to co- brand partners. Cardholder reward programme costs related to customers that settle their outstanding balance each period (transactors) are expensed when incurred and presented in fee and commission expense, while costs related to customers that continuously carry an outstanding balance (revolvers) are included in the effective interest rate of the receivable (refer to Note 3). Payments to partners for new cardholder account originations related to transactor accounts are deferred as costs to obtain a contract under IFRS 15, while costs related to revolver accounts are included in the effective interest rate of the receivable (refer to Note 3). Those costs deferred under IFRS 15 are capitalised and amortised over the estimated life of the customer relationship. Payments to co-brand partners based on revenue sharing to the extent the revenue share relates to "revolvers" are included in the effective interest rate of the receivable and to the extent revenue share relates to “transactors” it must be presented in fee and commission expense. Payments based on profitability are presented in fee and commission expense. Advisory Advisory fees are generated from wealth management services and investment banking advisory services related to mergers, acquisitions and financial restructurings. Wealth management advisory fees are earned over the period the services are provided and are generally recognised quarterly when the market value of client assets is determined. Investment banking advisory fees are recognised at the point in time when the services related to the transaction have been completed under the terms of the engagement. Investment banking advisory costs are recognised as incurred in fee and commission expense if direct and incremental to the advisory services or are otherwise recognised in operating expenses. Brokerage and execution Brokerage and execution fees are earned for executing client transactions with various exchanges and over-the-counter markets and assisting clients in clearing transactions and facilitating foreign exchange transactions for spot/forward contracts. Brokerage and execution fees are recognised at the point in time the associated service has been completed which is generally the trade date of the transaction. Underwriting and syndication Underwriting and syndication fees are earned for the distribution of client equity or debt securities and the arrangement and administration of a loan syndication. This includes commitment fees to provide loan financing. Underwriting fees are generally recognised on trade date if there is no remaining contingency, such as the transaction being conditional on the closing of an acquisition or another transaction. Underwriting costs are deferred and recognised in fee and commission expense when the associated underwriting fees are recorded. Syndication fees are earned for arranging and administering a loan syndication; however, the associated fee may be subject to variability until the loan has been syndicated to other syndicate members or until other contingencies have been resolved and therefore the fee revenue is deferred until the uncertainty is resolved. Included in underwriting and syndication fees are loan commitment fees, when the draw down is not probable. Such commitment fees are recognised over time through to the contractual maturity of the commitment. Contract assets and contract liabilities The Barclays Bank Group had no material contract assets or contract liabilities as at 31 December 2024 (2023: £nil; 2022: £nil). Impairment of fee receivables and contract assets During 2024, there have been no material impairments recognised in relation to fees receivable and contract assets (2023: £nil; 2022: £nil). Fees in relation to transactional business can be added to outstanding customer balances. These amounts may be subsequently impaired as part of the overall loans and advances balance. Remaining performance obligations The Barclays Bank Group applies the practical expedient of IFRS 15 and does not disclose information about remaining performance obligations that have original expected durations of one year or less or because the Barclays Bank Group has a right to consideration that corresponds directly with the value of the service provided to the client or customer. Costs incurred in obtaining or fulfilling a contract The Barclays Bank Group expects that incremental costs of obtaining a contract such as success fee and commission fees paid are recoverable and therefore capitalises such contract costs. Capitalised contract costs net of amortisation as at 31 December 2024 are £103m (2023 : £203m; 2022: £190m). Capitalised contract costs are amortised over the customer relationship period depending on the transfer of services to which the asset pertains. In 2024, the amount of amortisation was £58m (2023: £52m; 2022: £45m) and there was no impairment loss recognised in connection with the capitalised contract costs (2023: £nil; 2022: £nil). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 287 | ## Notes to the financial statements ## Financial ## performance ## and returns 5 Net trading income | | | --- | | | | Accounting for net trading income Trading positions are held at fair value, and the resulting gains and losses are included in net trading income, together with interest and dividends arising from long and short positions and funding costs relating to trading activities. Incremental costs are reported within net trading income if they are directly attributable to generating identifiable trading income. Income arises from both the sale and purchase of trading positions, margins which are achieved through market making and customer business and from changes in fair value caused by movements in interest and exchange rates, equity prices and other market variables. Gains or losses on non-trading financial instruments designated or mandatorily at fair value with changes in fair value recognised in the income statement are included in net trading income. | | | | | | | --- | --- | --- | --- | | | | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Net gains on financial instruments held for trading | 4,201 | 4,310 | 5,603 | | Net gains on financial instruments designated at fair value | 500 | 362 | 501 | | Net gains on financial instruments mandatorily at fair value | 1,199 | 1,308 | 1,520 | | Net trading income | 5,900 | 5,980 | 7,624 | 6 Net investment income/(expense) | | | --- | | | | Accounting for net investment income/(expense) Dividends are recognised when the right to receive the dividend has been established. Incremental costs are reported within net investment income if they are directly attributable to generating identifiable investment income. Other accounting policies relating to net investment income are set out in Note 12 and Note 14. | | | | | | | --- | --- | --- | --- | | | | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Net gains from financial assets mandatorily at fair value | 219 | 133 | 19 | | Net gains/(losses) from disposal of debt instruments at fair value through other comprehensive income | 134 | 102 | (68) | | Net losses from disposal of financial assets and liabilities measured at amortised cost1 | (225) | (9) | (66) | | Dividend Income | 3 | — | — | | Net losses on other investments | (62) | (114) | (208) | | Net investment income/(expense) | 69 | 112 | (323) | 1    Included within the 2024 balance are losses of £220m on sale of the performing Italian retail mortgage portfolio. 7 Operating expenses | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Infrastructure costs | | | | | Property and equipment | 440 | 591 | 417 | | Depreciation and amortisation | 353 | 438 | 470 | | Impairment of property, equipment and intangible assets | 2 | 44 | 13 | | Total infrastructure costs | 795 | 1,073 | 900 | | Administration and general expenses | | | | | Consultancy, legal and professional fees | 458 | 422 | 403 | | Marketing and advertising | 407 | 391 | 312 | | Other administration and general expenses | 5,029 | 4,793 | 4,014 | | Total administration and general expenses | 5,894 | 5,606 | 4,729 | | Staff costs1 | 5,556 | 5,591 | 5,192 | | UK regulatory levies2 | 242 | 149 | 150 | | Litigation and conduct3 | 186 | 44 | 1,427 | | Operating expenses | 12,673 | 12,463 | 12,398 | Notes 1For further details on staff costs including accounting policies, refer to Note 28. 2Comprises the impact of the Bank of England (BoE) levy scheme and the UK bank levy. 3Included within the 2022 balance are costs of £966m related to the Over-issuance of Securities. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 288 | ## Notes to the financial statements ## Financial ## performance ## and returns 8 Credit impairment charges/(releases) Accounting for the impairment of financial assets Impairment In accordance with IFRS 9, the Barclays Bank Group is required to recognise expected credit losses (ECLs) based on unbiased forward- looking information for all financial assets at amortised cost, lease receivables, debt financial assets at fair value through other comprehensive income, loan commitments and financial guarantee contracts. Intercompany exposures in the individual financial statements, including loan commitments and financial guarantee contracts, are also in scope of IFRS 9 for ECL purposes. At the reporting date, an allowance (or provision for loan commitments and financial guarantees) is required for the 12 month (Stage 1) ECLs. If the credit risk has significantly increased since initial recognition (Stage 2), or if the financial instrument is credit impaired (Stage 3), an allowance (or provision) should be recognised for the lifetime ECLs. The measurement of ECL is calculated using three main components: (i) probability of default (PD) (ii) loss given default (LGD) and (iii) the exposure at default (EAD). The 12 month and lifetime ECLs are calculated by multiplying the respective PD, LGD and the EAD. The 12 month and lifetime PDs represent the PD occurring over the next 12 months and the remaining maturity of the instrument respectively. The EAD represents the expected balance at default, taking into account the repayment of principal and interest from the balance sheet date to the default event together with any expected drawdowns of committed facilities. The LGD represents expected losses on the EAD given the event of default, taking into account, among other attributes, the mitigating effect of collateral value at the time it is expected to be realised and the time value of money. Expected credit loss measurement is based on the ability of borrowers to make payments as they fall due. The Barclays Bank Group also considers sector specific risks and whether additional adjustments are required in the measurement of ECL. Credit risk may be impacted by climate considerations for certain sectors, such as oil and gas. Determining a significant increase in credit risk since initial recognition: The Barclays Bank Group assesses when a significant increase in credit risk has occurred based on quantitative and qualitative assessments. The credit risk of an exposure is considered to have significantly increased when: i) Quantitative test The annualised lifetime PD has increased by more than an agreed threshold relative to the equivalent at origination. PD deterioration thresholds are defined as percentage increases, and are set at an origination score band and segment level to ensure the test appropriately captures significant increases in credit risk at all risk levels. Generally, thresholds are inversely correlated to the origination PD, i.e. as the origination PD increases, the threshold value reduces. The assessment of the point at which a PD increase is deemed ‘significant’ is based upon analysis of the portfolio’s risk profile against a common set of principles and performance metrics (consistent across both retail and wholesale businesses), incorporating expert credit judgement where appropriate. Application of quantitative PD floors does not represent the use of the low credit risk exemption as exposures can separately move into stage 2 via the qualitative route described below. Wholesale assets apply a 100% increase in PD and 0.2% PD floor to determine a significant increase in credit risk. Retail assets apply bespoke relative increase and absolute PD thresholds based on product type and origination PD. Thresholds are subject to maximums defined by Barclays Bank Group policy and typically apply minimum relative thresholds of 50%-100% and a maximum relative threshold of 400% For existing/historical exposures where origination point scores or data are no longer available or do not represent a comparable estimate of lifetime PD, a proxy origination score is defined, based upon: ▪ back-population of the approved lifetime PD score either to origination date or, where this is not feasible, as far back as possible (subject to a data start point no later than 1 January 2015); or ▪ use of available historical account performance data and other customer information, to derive a comparable ‘proxy’ estimation of origination PD. ii) Qualitative test This is relevant for accounts that meet the portfolio’s ‘high risk’ criteria and are subject to closer credit monitoring. High risk customers may not be in arrears but either through an event or an observed behaviour exhibit credit distress. The definition and assessment of high risk includes as wide a range of information as reasonably available, such as industry and Barclays Bank Group-wide customer level data, including but not limited to bureau scores and high consumer indebtedness index, wherever possible or relevant. Whilst the high risk populations applied for IFRS 9 impairment purposes are aligned with risk management processes, they are also regularly reviewed and validated to ensure that they capture any incremental segments where there is evidence of credit deterioration. iii) Backstop criteria This is relevant for accounts that are more than 30 calendar days past due. The 30 days past due criteria is a backstop rather than a primary driver of moving exposures into Stage 2. The criteria for determining a significant increase in credit risk for assets with bullet repayments follows the same principle as all other assets, i.e. quantitative, qualitative and backstop tests are all applied. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 289 | ## Notes to the financial statements ## Financial ## performance ## and returns Exposures will move back to Stage 1 once they no longer meet the criteria for a significant increase in credit risk. This means that, at a ![]() minimum all payments must be up-to-date, the PD deterioration test is no longer met, the account is no longer classified as high risk, and the customer has evidenced an ability to maintain future payments. Exposures are only removed from Stage 3 and re-assigned to Stage 2 once the original default trigger event no longer applies. Exposures being removed from Stage 3 must no longer qualify as credit impaired, and: a) the obligor will also have demonstrated consistently good payment behaviour over a 12-month period, by making all consecutive contractual payments due and, for forborne exposures, the relevant EBA defined probationary period has also been successfully completed; or b) (for non-forborne exposures) the performance conditions are defined and approved within an appropriately sanctioned restructure plan, including 12 months’ payment history have been met. Management overlays and other exceptions to model outputs are applied only if consistent with the objective of identifying significant increases in credit risk. Forward-looking information The measurement of ECL involves complexity and judgement, including estimation of PD, LGD, a range of unbiased future economic scenarios, estimation of expected lives (where contractual life is not appropriate), and estimation of EAD and assessing significant increases in credit risk. Credit losses are the expected cash shortfalls from what is contractually due over the expected life of the financial instrument, discounted at the original effective interest rate (EIR). ECLs are the unbiased probability-weighted credit losses determined by evaluating a range of possible outcomes and considering future economic conditions. Refer to the Measurement uncertainty and sensitivity analysis section on page [180](#ia16d0659cd524c01ae655d82fa382c3d_229) for further details. Definition of default, credit impaired assets, write-offs, and interest income recognition The definition of default for the purpose of determining ECLs, and for internal credit risk management purposes, has been aligned to the Regulatory Capital CRR Article 178 definition of default, to maintain a consistent approach with IFRS 9 and associated regulatory guidance. The Regulatory Capital CRR Article 178 definition of default considers indicators that the debtor is unlikely to pay, includes exposures in forbearance and is no later than when the exposure is more than 90 days past due. When exposures are identified as credit impaired at the time when they are purchased or originated, interest income is calculated on the carrying value net of the impairment allowance. An asset is considered credit impaired when one or more events occur that have a detrimental impact on the estimated future cash flows of the financial asset. This comprises assets defined as defaulted and other individually assessed exposures where imminent default or actual loss is identified. Uncollectible loans are written off against the related allowance for loan impairment on completion of the Barclays Bank Group’s internal processes and when all reasonably expected recoverable amounts have been collected. Subsequent recoveries of amounts previously written off are credited to the income statement. The timing and extent of write-offs may involve some element of subjective judgement. Nevertheless, a write-off will often be prompted by a specific event, such as the inception of insolvency proceedings or other formal recovery action, which makes it possible to establish that some or the entire advance is beyond realistic prospect of recovery. Accounting for purchased financial guarantee contracts The Barclays Bank Group may enter into a financial guarantee contract which requires the issuer of such contract to reimburse the Barclays Bank Group for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. For these separate financial guarantee contracts, the Barclays Bank Group recognises a reimbursement asset aligned with the recognition of the underlying ECLs, if it is considered virtually certain that a reimbursement would be received if the specified debtor fails to make payment when due in accordance with the terms of the debt instrument. Loan modifications and renegotiations that are not credit-impaired When modification of a loan agreement occurs as a result of commercial restructuring activity rather than due to the credit risk of the borrower, an assessment must be performed to determine whether the terms of the new agreement are substantially different from the terms of the existing agreement. This assessment considers both the change in cash flows arising from the modified terms as well as the change in overall instrument risk profile. In respect of payment holidays granted to borrowers which are not due to forbearance, if the revised cash flows on a present value basis (based on the original EIR) are not substantially different from the original cash flows, the loan is not considered to be substantially modified. Where terms are substantially different, the existing loan will be derecognised and a new loan will be recognised at fair value, with any difference in valuation recognised immediately within the income statement, subject to observability criteria. Where terms are not substantially different, the loan carrying value will be adjusted to reflect the present value of modified cash flows discounted at the original EIR, with any resulting gain or loss recognised immediately within the income statement as a modification gain or loss. Expected life Lifetime ECLs must be measured over the expected life. This is restricted to the maximum contractual life and takes into account expected prepayment, extension, call and similar options. The exceptions are certain revolver financial instruments, such as credit cards and bank overdrafts, that include both a drawn and an undrawn component where the entity’s contractual ability to demand repayment and cancel the undrawn commitment does not limit the entity’s exposure to credit losses to the contractual notice period. For revolving facilities, expected life is analytically derived to reflect the behavioural life of the asset, i.e. the full period over which the business expects to be exposed to credit risk. Behavioural life is typically based upon historical analysis of the average time to default, closure or withdrawal of facility. Where data is insufficient or analysis inconclusive, an additional ‘maturity factor’ may be incorporated to reflect the full estimated life of the exposures, based upon experienced judgement and/or peer analysis. Potential future modifications of contracts are not taken into account when determining the expected life or EAD until they occur. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 290 | ## Notes to the financial statements ## Financial ## performance ## and returns Discounting ![]() ECLs are discounted at the EIR at initial recognition or an approximation thereof and consistent with income recognition. For loan commitments the EIR is the rate that is expected to apply when the loan is drawn down and a financial asset is recognised. Issued financial guarantee contracts are discounted at the risk-free rate. Lease receivables are discounted at the rate implicit in the lease. For variable/ floating rate financial assets, the spot rate at the reporting date is used and projections of changes in the variable rate over the expected life are not made to estimate future interest cash flows or for discounting. Modelling techniques Currently, Internal Ratings-Based models are leveraged to calculate the point-in-time PD and LGD, which serve as key inputs to the IFRS 9 models. Thereafter, these inputs are extrapolated by the IFRS 9 models to create macroeconomic sensitive forecast of PDs, LGDs and in turn ECL. Forbearance A financial asset is subject to forbearance when it is modified due to the credit distress of the borrower. A modification made to the terms of an asset due to forbearance will typically be assessed as a non-substantial modification that does not result in derecognition of the original loan, except in circumstances where debt is exchanged for equity. Both performing and non-performing forbearance assets are classified as Stage 3 except where it is established that the concession granted has not resulted in diminished financial obligation and that no other regulatory definitions of default criteria have been triggered, in which case the asset is classified as Stage 2. The minimum probationary period for non-performing forbearance is 12 months and for performing forbearance, 24 months. Hence, a minimum of 36 months is required for non-performing forbearance to move out of a forborne state. No financial instrument in forbearance can transfer back to Stage 1 until all of the Stage 2 thresholds are no longer met and can only move out of Stage 3 when no longer credit impaired. Critical accounting estimates and judgements IFRS 9 impairment involves several important areas of judgement, including estimating forward looking modelled parameters (PD, LGD and EAD), developing a range of unbiased future economic scenarios, estimating expected lives and assessing significant increases in credit risk, based on the Barclays Bank Group’s experience of managing credit risk. The determination of expected life is most material for Barclays Bank Group's credit card portfolios which is obtained via behavioural life analysis to materially capture the risk of these facilities. Within the retail and small businesses portfolios, which comprise large numbers of small homogenous assets with similar risk characteristics where credit scoring techniques are generally used, the impairment allowance is calculated using forward looking modelled parameters which are typically run at account level. There are many models in use, each tailored to a product, line of business or customer category. Judgement and knowledge is needed in selecting the statistical methods to use when the models are developed or revised. Management adjustments to impairment models, which contain an element of subjectivity, are applied in order to factor in certain conditions or changes in policy that are not fully incorporated into the impairment models, or to reflect additional facts and circumstances at the period end. Management adjustments are reviewed and incorporated into future model development where appropriate. For individually significant assets in Stage 3, impairment allowances are calculated on an individual basis and all relevant considerations that have a bearing on the expected future cash flows across a range of economic scenarios are taken into account. These considerations can be particularly subjective and can include the business prospects for the customer, the realisable value of collateral, the Barclays Bank Group’s position relative to other claimants, the reliability of customer information and the likely cost and duration of the work-out process. The level of the impairment allowance is the difference between the value of the discounted expected future cash flows (discounted at the loan’s original effective interest rate), and its carrying amount. Furthermore, judgements change with time as new information becomes available or as work-out strategies evolve, resulting in frequent revisions to the impairment allowance as individual decisions are taken. Changes in these estimates would result in a change in the allowances and have a direct impact on the impairment charge. Temporary adjustments to calculated IFRS 9 impairment allowances may be applied in limited circumstances to account for situations where known or expected risk factors or information have not been considered in the ECL assessment or modelling process. For further information please see pages [178](#ia16d0659cd524c01ae655d82fa382c3d_223) to [179](#i9049829b2f7a461cb384df01661be7ff_2683) in credit risk performance. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 291 | ## Notes to the financial statements ## Financial ## performance ## and returns Information about the potential impact of the physical and transition risks of climate change on borrowers is considered, taking into account reasonable and supportable information to make accounting judgements and estimates. Climate change is inherently of a long- term nature, with significant levels of uncertainty, and consequently requires judgement in determining the possible impact in the next financial year, if any. | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | 2024 | | | 2023 | | | 2022 | | | | | | | | | | | | | | | | Impairment charges / (releases) | Recoveries and reimbursements 1 | Total2 | Impairment charges / (releases) | Recoveries and reimbursements 1 | Total | Impairment charges / (releases) | Recoveries and reimbursements 1 | Total | | | | | | | | | | | | | | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Loans and advances at amortised cost3 | 1,687 | (42) | 1,645 | 1,656 | (41) | 1,615 | 1,118 | (228) | 890 | | Off-balance sheet loan commitments and financial guarantee contracts | (34) | — | (34) | (37) | — | (37) | 7 | — | 7 | | Total | 1,653 | (42) | 1,611 | 1,619 | (41) | 1,578 | 1,125 | (228) | 897 | | Cash collateral and settlement balances | (3) | — | (3) | 4 | — | 4 | 28 | — | 28 | | Financial instruments at fair value through other comprehensive income | 1 | — | 1 | (2) | — | (2) | 8 | — | 8 | | Reverse Repo | 8 | — | 8 | — | — | — | — | — | — | | Other financial asset measured at cost | — | — | — | (2) | — | (2) | — | — | — | | Credit impairment charges /(releases) | 1,659 | (42) | 1,617 | 1,619 | (41) | 1,578 | 1,161 | (228) | 933 | Notes 1Recoveries and reimbursements include £11m (2023: £24m, 2022: £195m) for reimbursements expected to be received under the arrangement where the Barclays Bank Group has entered into financial guarantee contracts which provide credit protection over certain assets with third parties and cash recoveries of previously written off amounts of £31m (2023: £17m, 2022: £33m). 2Includes net impairment charge relating to portfolios classified as held for sale. These include a co-branded cards portfolio of £160m within USCB and German Consumer Finance business of £74m. 3Includes Debt securities measured at amortised cost. Write-offs that can be subjected to enforcement activity The contractual amount outstanding on financial assets that were written off during the year and that can still be subjected to enforcement activity is £500m (2023: £395m, 2022: £512m) including £45m (2023: £41m) pertaining to German consumer finance business classified as held for sale. This is lower than the write-offs presented in the movement in gross exposures and impairment allowance table due to assets sold during the year post write-offs and post write-off recoveries. Modification of financial assets Financial assets of £1,585m (2023: £2,177m, 2022: £2,237m), with a loss allowance measured at an amount equal to lifetime ECL, were subject to non-substantial modification during the year, with a resulting loss of £75m (2023: £2m, 2022: £1m). The gross carrying amount at 31 December 2024 of financial assets subject to non-substantial modification for which the loss allowance has changed to a 12-month ECL during the year amounts to £101m (2023: £149m, 2022: £1,077m). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 292 | ## Notes to the financial statements ## Financial ## performance ## and returns 9 Tax Accounting for income taxes The Barclays Bank Group applies IAS 12 Income Taxes in accounting for taxes on income. Income tax payable on taxable profits (current tax) is recognised as an expense in the periods in which the profits arise. Withholding taxes are also treated as income taxes. Income tax recoverable on tax allowable losses is recognised as a current tax asset only to the extent that it is regarded as recoverable by offsetting against taxable profits arising in the current or prior periods. Current tax is measured using tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. Deferred tax liabilities are recognised for all taxable temporary differences except for the initial recognition of goodwill. Deferred tax is not recognised where the temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. Deferred tax is determined using tax rates and legislation enacted or substantively enacted by the balance sheet date which are expected to apply when the deferred tax asset is realised or the deferred tax liability is settled. Deferred tax assets and liabilities are only offset when there is both a legal right to set-off and an intention to settle on a net basis. The Barclays Bank Group has adopted the International Tax Reform - Pillar Two Model Rules amendments to IAS 12, which were issued on 23 May 2023 and approved by the UK Endorsement Board on 19 July 2023, and has applied the exception set out in paragraph 4A in respect of recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. The Barclays Bank Group considers an uncertain tax position to exist when it considers that ultimately, in the future, the amount of profit subject to tax may be greater than the amount initially reflected in the Barclays Bank Group’s tax returns. The Barclays Bank Group accounts for provisions in respect of uncertain tax positions in two different ways. A current tax provision is recognised when it is considered probable that the outcome of a review by a tax authority of an uncertain tax position will alter the amount of cash tax due to, or from, a tax authority in the future. From recognition, the current tax provision is then measured at the amount the Barclays Bank Group ultimately expects to pay the tax authority to resolve the position. The accrual of interest and penalty amounts in respect of uncertain income tax positions is recognised as an expense within profit before tax. Deferred tax provisions are adjustments made to the carrying value of deferred tax assets in respect of uncertain tax positions. A deferred tax provision is recognised when it is considered probable that the outcome of a review by a tax authority of an uncertain tax position will result in a reduction in the carrying value of the deferred tax asset. From recognition of a provision, measurement of the underlying deferred tax asset is adjusted to take into account the expected impact of resolving the uncertain tax position on the loss or temporary difference giving rise to the deferred tax asset. The approach taken to measurement takes account of whether the uncertain tax position is a discrete position that will be reviewed by the tax authority in isolation from any other position, or one of a number of issues which are expected to be reviewed together concurrently and resolved simultaneously with a tax authority. The Barclays Bank Group’s measurement of provisions is based upon its best estimate of the additional profit that will become subject to tax. For a discrete position, consideration is given only to the merits of that position. Where a number of issues are expected to be reviewed and resolved together, the Barclays Bank Group will take into account not only the merits of its position in respect of each particular issue but also the overall level of provision relative to the aggregate of the uncertain tax positions across all the issues that are expected to be resolved at the same time. In addition, in assessing provision levels, it is assumed that tax authorities will review uncertain tax positions and that all facts will be fully and transparently disclosed. Critical accounting estimates and judgements There are two key areas of judgement that impact the reported tax position. Firstly, the level of provisioning for uncertain tax positions; and secondly, the recognition and measurement of deferred tax assets. The Barclays Bank Group does not consider there to be a significant risk of a material adjustment to the carrying amount of current and deferred tax balances, including provisions for uncertain tax positions in the next financial year. The provisions for uncertain tax positions cover a diverse range of issues and reflect advice from external counsel where relevant. It should be noted that only a proportion of the total uncertain tax positions will be under audit at any point in time, and could therefore be subject to challenge by a tax authority over the next year. Deferred tax assets have been recognised based on business profit forecasts which included consideration for the current view of climate impacts. Details on the recognition of deferred tax assets are provided in this note. | | | | | | --- | --- | --- | --- | | | | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Current tax charge/(credit) | | | | | Current year | 680 | 605 | 623 | | Adjustments in respect of prior years | 42 | (96) | (625) | | | 722 | 509 | (2) | | Deferred tax charge | | | | | Current year | 239 | 43 | 19 | | Adjustments in respect of prior years | 38 | 110 | 468 | | | 277 | 153 | 487 | | Tax charge | 999 | 662 | 485 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 293 | ## Notes to the financial statements ## Financial ## performance ## and returns The table below shows the reconciliation between the actual tax charge and the tax charge that would result from applying the standard UK corporation tax rate to the Barclays Bank Group’s profit before tax. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 2024 | 2024 | 2023 | 2023 | 2022 | 2022 | | | £m | % | £m | % | £m | % | | Profit before tax from continuing operations | 4,747 | | 4,223 | | 4,867 | | | Tax charge based on the applicable UK corporation tax rate of 25% (2023: 23.5%, 2022: 19% ) | 1,187 | 25.0% | 992 | 23.5% | 925 | 19.0% | | Impact of profits/losses earned in territories with different statutory rates to the UK (weighted average tax rate is 23% (2023: 23.6%, 2022: 22.3%)) | (95) | (2.0%) | 3 | 0.1% | 160 | 3.3% | | | | | | | | | | Recurring items: | | | | | | | | Non-creditable taxes including withholding taxes | 95 | 2.0% | 124 | 3.0% | 117 | 2.4% | | Adjustments in respect of prior years | 80 | 1.7% | 14 | 0.3% | (157) | (3.2%) | | Changes in recognition of deferred tax and effect of unrecognised tax losses | 69 | 1.5% | (58) | (1.4%) | (146) | (3.0%) | | Impact of UK bank levy being non-deductible | 47 | 1.0% | 35 | 0.8% | 28 | 0.6% | | Non-deductible expenses | 44 | 0.9% | 47 | 1.1% | 28 | 0.6% | | Banking surcharge1 and other items | (32) | (0.7%) | (74) | (1.8%) | (12) | (0.3%) | | Non-taxable gains and income | (74) | (1.6%) | (60) | (1.4%) | (129) | (2.6%) | | Tax relief on holdings of inflation-linked government bonds | (157) | (3.3%) | (194) | (4.6%) | (510) | (10.5%) | | Tax relief on payments made under AT1 instruments | (189) | (4.0%) | (174) | (4.1%) | (136) | (2.8%) | | | | | | | | | | Non-recurring items: | | | | | | | | Remeasurement of UK deferred tax assets due to tax rate changes | — | — | — | — | 183 | 3.8% | | Non-deductible provisions for investigations and litigation | 2 | 0.0% | — | — | 85 | 1.7% | | Non-deductible provisions for UK customer redress | 22 | 0.5% | 7 | 0.2% | 49 | 1.0% | | Total tax charge | 999 | 21.0% | 662 | 15.7% | 485 | 10.0% | Note 1Banking surcharge includes the impact of the 3% UK banking surcharge rate on profits/losses and tax adjustments relating to UK banking entities. Factors influencing the effective tax rate The effective tax rate of 21% is lower than the UK corporation tax rate of 25% primarily due to tax relief on payments made under AT1 instruments and tax relief on holdings of inflation-linked government bonds. These factors, which have each decreased the effective tax rate, are partially offset by non-creditable taxes including withholding taxes. Factors that may influence the effective tax rate in future periods The Barclays Bank Group’s future tax charge will be sensitive to the geographic mix of profits earned, the tax rates in force and changes to the tax rules in the jurisdictions that the Barclays Bank Group operates in. Tax law is, at times, complex, and it is the role of courts and tribunals to act as the final authority on the correct interpretation of tax law. In October 2023, a First-tier Tax Tribunal hearing took place between Barclays Bank PLC and HM Revenue & Customs (HMRC) in respect of the UK corporation tax treatment of an element of the finance costs associated with reserve capital instruments issued as part of the capital raising announced by Barclays in October 2008, which have since been redeemed. The judgment was handed down in March 2024 and was in HMRC’s favour. In January 2025, Barclays was granted permission from the Upper Tribunal to appeal against the judgment. A provision is carried that is expected to be sufficient to cover the tax cost (once tax attributes that are available to partially offset a potential tax liability in respect of this issue are taken into account) in the event that the appeal is unsuccessful and the existing judgment were to stand. The UK Government enacted legislation in 2023 to implement the OECD's global minimum tax rules (the Pillar Two rules) and a UK domestic minimum tax. The rules apply from 1 January 2024 and apply in respect of profits for every jurisdiction where the Barclays Bank Group operates. Additional taxes resulting from the implementation of Pillar Two of £14m have arisen in respect of a limited number of jurisdictions in which the Barclays Bank Group operates, principally in the Isle of Man, Jersey, and Guernsey, by virtue of their low statutory tax rates. It is not expected that additional taxes will significantly increase the Barclays Bank Group’s tax charge in future periods. Additionally, the Barclays Bank Group may be subject to Qualifying Domestic Minimum Top-up Taxes (QDMTTs) under the Pillar Two rules implemented in its operating jurisdictions. The application of QDMTT rules should not affect the overall impact of any additional taxes resulting from the Pillar Two regime on the Barclays Bank Group’s tax charge, as any taxes paid under a local QDMTT would be expected to result in a reduction in any top-up tax being payable in the UK. The Barclays Bank Group will continue to review and assess the impact of further guidance released by the OECD and governments implementing this new tax regime. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 294 | ## Notes to the financial statements ## Financial ## performance ## and returns Tax in the consolidated statement of comprehensive income Tax relating to each component of other comprehensive income can be found in the consolidated statement of comprehensive income. Tax included directly in equity Tax included directly in equity comprises a £94m credit (2023: £13m credit) relating to share-based payments and deductible costs on issuing other equity instruments. Deferred tax assets and liabilities The deferred tax amounts on the balance sheet were as follows: | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | UK Tax Group | 2,315 | 2,054 | | US Intermediate Holding Company Tax Group ("IHC Tax Group") | 1,162 | 973 | | Barclays Bank PLC's US Branch Tax Group | 270 | 386 | | Other (outside the UK and US tax groups) | 386 | 475 | | Deferred tax asset | 4,133 | 3,888 | | Deferred tax liability - UK Tax Group | (2) | (3) | | Net deferred tax | 4,131 | 3,885 | | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | UK Tax Group | 2,315 | 2,053 | | Barclays Bank PLC's US Branch Tax Group | 270 | 386 | | Other (outside the UK and US tax groups) | 53 | 70 | | Deferred tax asset | 2,638 | 2,509 | | Deferred tax liability - UK Tax Group | (2) | (2) | | Net deferred tax | 2,636 | 2,507 | UK Tax Group deferred tax assets and liabilities The net deferred tax asset in the UK Tax Group of £2,315m (2023: £2,054m) includes a deferred tax asset of £1,066m (2023: £1,241m) relating to tax losses with the balance relating to temporary differences. There is no time limit on utilisation of UK tax losses and business profit forecasts indicate these losses will be fully recovered. US deferred tax assets in the IHC and the US Branch Tax Groups The deferred tax asset in the IHC Tax Group of £1,162m (2023: £973m) includes £38m (2023: £35m) relating to tax losses, with the balance relating to temporary differences. The deferred tax asset in Barclays Bank PLC’s US Branch Tax Group of £270m (2023: £386m ) relates entirely to temporary differences. In relation to the IHC Tax Group, these temporary differences include £365m (2023 : £387m ) arising from New York State and City prior net operating loss conversion which can be carried forward and will expire in 2034. Business profit forecasts indicate that these amounts will be utilised prior to expiry. Other deferred tax assets (outside the UK and US tax groups) The deferred tax asset of £386m (2023: £475m) in other entities within the Barclays Bank Group includes £111m (2023: £147m) relating to tax losses. These deferred tax assets relate to a number of different territories and their recognition is based on profit forecasts or local country law which indicate that it is probable that those deferred tax assets will be fully recovered. Of the deferred tax asset of £386m (2023: £475m), an amount of £4m (2023: £20m) relates to entities which have suffered a loss in either the current or prior year and for which the utilisation of the deferred tax is dependent on future taxable profits. This has been taken into account in reaching the above conclusion that these deferred tax assets will be fully recovered in the future. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 295 | ## Notes to the financial statements ## Financial ## performance ## and returns The table below shows movements on deferred tax assets and liabilities during the year. The amounts are different from those disclosed on the balance sheet and in the preceding table as they are presented before offsetting asset and liability balances where there is a legal right to set-off and an intention to settle on a net basis. | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Barclays Bank Group | | | | | | | | | | | | | Fixed asset timing differences | Fair value through other comprehensive income | Cash flow hedges | Retirement benefit obligations | Loan impairment allowance | Own credit | Share based payments and deferred compensation | Other temporary differences | Tax losses carried forward | Total | | | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Assets | 275 | 510 | 1,058 | 16 | 506 | 85 | 327 | 903 | 1,423 | 5,103 | | Liabilities | (112) | — | — | (1,014) | — | — | — | (92) | — | (1,218) | | As at 1 January 2024 | 163 | 510 | 1,058 | (998) | 506 | 85 | 327 | 811 | 1,423 | 3,885 | | Income statement | 90 | — | — | (3) | (79) | 1 | (6) | (72) | (208) | (277) | | Other comprehensive income and reserves | — | 181 | (157) | 116 | — | 308 | 79 | 1 | — | 528 | | Other movements | 5 | — | — | — | (19) | — | 9 | — | — | (5) | | | 258 | 691 | 901 | (885) | 408 | 394 | 409 | 740 | 1,215 | 4,131 | | Assets | 367 | 691 | 904 | 12 | 408 | 394 | 409 | 878 | 1,215 | 5,278 | | Liabilities | (109) | — | (3) | (897) | — | — | — | (138) | — | (1,147) | | As at 31 December 2024 | 258 | 691 | 901 | (885) | 408 | 394 | 409 | 740 | 1,215 | 4,131 | | | | | | | | | | | | | | Assets | 215 | 590 | 2,040 | 21 | 548 | — | 329 | 1,138 | 1,348 | 6,229 | | Liabilities | (65) | — | — | (1,315) | — | (190) | — | (76) | — | (1,646) | | As at 1 January 2023 | 150 | 590 | 2,040 | (1,294) | 548 | (190) | 329 | 1,062 | 1,348 | 4,583 | | Income statement | 18 | (26) | — | (27) | (12) | — | 20 | (204) | 78 | (153) | | Other comprehensive income and reserves | — | (54) | (982) | 325 | — | 273 | (9) | — | — | (447) | | Other movements | (5) | — | — | (2) | (30) | 2 | (13) | (47) | (3) | (98) | | | 163 | 510 | 1,058 | (998) | 506 | 85 | 327 | 811 | 1,423 | 3,885 | | Assets | 275 | 510 | 1,058 | 16 | 506 | 85 | 327 | 903 | 1,423 | 5,103 | | Liabilities | (112) | — | — | (1,014) | — | — | — | (92) | — | (1,218) | | As at 31 December 2023 | 163 | 510 | 1,058 | (998) | 506 | 85 | 327 | 811 | 1,423 | 3,885 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Barclays Bank PLC | | | | | | | | | | | | | Fixed asset timing differences | Fair value through other comprehensive income | Cash flow hedges | Retirement benefit obligations | Loan impairment allowance | Own credit | Share based payments and deferred compensation | Other temporary differences | Tax losses carried forward | Total | | | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Assets | 43 | 542 | 1,048 | — | 180 | 82 | 127 | 305 | 1,244 | 3,571 | | Liabilities | — | — | — | (1,013) | — | — | — | (51) | — | (1,064) | | As at 1 January 2024 | 43 | 542 | 1,048 | (1,013) | 180 | 82 | 127 | 254 | 1,244 | 2,507 | | Income statement | 19 | — | — | (2) | (28) | — | 4 | (162) | (173) | (342) | | Other comprehensive income and reserves | — | 180 | (146) | 119 | — | 303 | 31 | — | — | 487 | | Other movements | — | — | — | — | (17) | 1 | — | — | — | (16) | | | 62 | 722 | 902 | (896) | 135 | 386 | 162 | 92 | 1,071 | 2,636 | | Assets | 62 | 722 | 902 | — | 135 | 386 | 162 | 187 | 1,071 | 3,627 | | Liabilities | — | — | — | (896) | — | — | — | (95) | — | (991) | | As at 31 December 2024 | 62 | 722 | 902 | (896) | 135 | 386 | 162 | 92 | 1,071 | 2,636 | | | | | | | | — | | | | | | Assets | 51 | 596 | 2,014 | — | 181 | — | 122 | 922 | 1,237 | 5,123 | | Liabilities | (12) | — | — | (1,313) | — | (190) | — | (494) | — | (2,009) | | As at 1 January 2023 | 39 | 596 | 2,014 | (1,313) | 181 | (190) | 122 | 428 | 1,237 | 3,114 | | Income statement | 4 | — | — | (24) | 15 | — | 8 | (160) | 7 | (150) | | Other comprehensive income and reserves | — | (54) | (966) | 325 | — | 272 | (4) | — | — | (427) | | Other movements | — | — | — | (1) | (16) | — | 1 | (14) | — | (30) | | | 43 | 542 | 1,048 | (1,013) | 180 | 82 | 127 | 254 | 1,244 | 2,507 | | Assets | 43 | 542 | 1,048 | — | 180 | 82 | 127 | 305 | 1,244 | 3,571 | | Liabilities | — | — | — | (1,013) | — | — | — | (51) | — | (1,064) | | As at 31 December 2023 | 43 | 542 | 1,048 | (1,013) | 180 | 82 | 127 | 254 | 1,244 | 2,507 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 296 | ## Notes to the financial statements ## Financial ## performance ## and returns Other movements include the impact of changes in foreign exchange rates as well as deferred tax amounts relating to acquisitions and disposals. The amount of deferred tax asset expected to be recovered after more than 12 months for the Barclays Bank Group is £ 4,662m (2023: £3,577m ) and for Barclays Bank PLC is £3,228m (2023: £2,323m). The amount of deferred tax liability expected to be settled after more than 12 months for the Barclays Bank Group is £1,021m (2023: £1,145m ) and for Barclays Bank PLC is £ 878m ( 2023: £ 1,015m). These amounts are before offsetting asset and liability balances where there is a legal right to set-off and an intention to settle on a net basis. Unrecognised deferred tax Tax losses and temporary differences The Barclays Bank Group has deferred tax assets not recognised in respect of gross deductible temporary differences of £373m (2023: £527m), unused tax credits of £359 m ( 2023: £381m), and gross tax losses of £21,021m (2023: £21,373m). The tax losses include capital losses of £3,629m (2023: £3,657m). Of these tax losses, £13m (2023: £79m) expire within five years, £6m (2023: £13m) expire within six to ten years, £ 11,789m (2023: £10,504m) expire within eleven to twenty years and £ 9,213m (2023: £10,777m) can be carried forward indefinitely. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profits and gains will be available against which they can be utilised. For Barclays Bank PLC, deferred tax assets have not been recognised in respect of gross deductible temporary differences of £4m (2023 : £142m), unused tax credits of £ 168m (2023: £206m), and gross tax losses of £4,055m (2023 : £4,169m) which includes capital losses of £2,873m (2023: £ 2,901m). Of these tax losses, £ nil (2023: £71m) expire within five years and £4,055m ( 2023 : £4,098m) can be carried forward indefinitely. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profits and gains will be available against which they can be utilised. Barclays Bank Group investments in subsidiaries, branches and associates Deferred tax is not recognised in respect of the value of Barclays Bank Group's investments in subsidiaries, branches and associates where the Barclays Bank Group is able to control the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future. The aggregate amount of these temporary differences for which deferred tax liabilities have not been recognised was £873m (2023: £870m). 10 Dividends on ordinary shares and preference shares The 2024 financial statements include £1,782m (2023: £1,348m, 2022: £200m) of dividends paid on ordinary shares. This comprises a 2023 interim dividend of £852m (2022; £700 m, 2021 : £200m) and 1 interim dividend in relation to 2024 of £930m (2023: 1 interim dividend of £648m , 2022:£ nil). This results in a total dividend for the year of £0.76 (2023: £0.58 , 2022: £0.09) per ordinary share. Dividends paid on preference shares amounted to £41m (2023 : £40m, 2022; £31m). Dividends paid on the Euro preference shares amounted to £384.56 per share (2023: £333.36, 2022 : £53.42). Dividends paid on the US Dollar preference shares amounted to £493.20 per share (2023: £499.58, 2022 : £511.27). The Directors have approved an interim dividend in respect of 2024 of £1,195m . The financial statements for the year ended 31 December 2024 do not reflect this dividend, which will be accounted for in shareholders’ equity as an appropriation of retained profits in the year ending 31 December 2025. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 297 | ## Notes to the financial statements ## Assets and liabilities held at fair value | | | --- | | | | The notes included in this section focus on assets and liabilities the Barclays Bank Group holds and recognises at fair value. Details regarding the Barclays Bank Group’s approach to managing market risk can be found on page [146](#ia16d0659cd524c01ae655d82fa382c3d_160) . | 11 Trading portfolio | | | --- | | | | Accounting for trading portfolio assets and liabilities All assets and liabilities held for trading purposes are held at fair value with gains and losses in the changes in fair value taken to the income statement in net trading income (Note 5). | | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | Debt securities and other eligible bills | 77,805 | 75,459 | | Equity securities | 74,859 | 86,353 | | Traded loans | 13,470 | 12,653 | | Commodities | 110 | 101 | | Trading Portfolio Assets | 166,244 | 174,566 | | | | | | Debt securities and other eligible bills | (36,324) | (39,639) | | Equity securities | (19,858) | (18,122) | | Trading Portfolio Liabilities | (56,182) | (57,761) | | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | Debt securities and other eligible bills | 38,658 | 37,492 | | Equity securities | 50,492 | 62,563 | | Traded loans | 12,880 | 12,599 | | Commodities | — | — | | Trading Portfolio Assets | 102,030 | 112,654 | | | | | | Debt securities and other eligible bills | (17,184) | (22,608) | | Equity securities | (23,831) | (28,387) | | Trading Portfolio Liabilities | (41,015) | (50,995) | 12 Financial assets at fair value through the income statemen t | | | --- | | | | Accounting for financial assets designated at fair value Financial assets, other than those held for trading, are classified in this category if they are so irrevocably designated at inception and the use of the designation removes or significantly reduces an accounting mismatch. Subsequent changes in fair value for these instruments are recognised in the income statement in net investment income, except if reporting it in trading income reduces an accounting mismatch. The details on how the fair value amounts are derived for financial assets at fair value are described in Note 16. | | Accounting for financial assets mandatorily at fair value Financial assets that are held for trading are recognised at fair value through profit or loss. In addition, financial assets are held at fair value through profit or loss if they do not contain contractual terms that give rise on specified dates to cash flows that are Solely Payments of Principal and Interest (SPPI), or if the financial asset is not held in a business model that is either (i) a business model to collect the contractual cash flows or (ii) a business model that is achieved by both collecting contractual cash flows and selling. | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 298 | ## Notes to the financial statements ## Assets and liabilities held at fair value | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | Loans and advances | 1,039 | 1,367 | | Debt securities | 182 | 130 | | Other financial assets | — | — | | Financial assets designated at fair value | 1,221 | 1,497 | | | | | | Loans and advances | 43,143 | 45,174 | | Debt securities | 2,749 | 2,415 | | Equity securities | 2,856 | 5,938 | | Reverse repurchase agreements and other similar secured lending | 141,791 | 149,131 | | Other financial assets | 85 | 81 | | Financial assets mandatorily at fair value | 190,624 | 202,739 | | Total | 191,845 | 204,236 | | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | Loans and advances | 1,039 | 1,367 | | Other financial assets | — | — | | Financial assets designated at fair value | 1,039 | 1,367 | | | | | | Loans and advances | 53,672 | 50,569 | | Debt securities | 4,165 | 3,604 | | Equity securities | 145 | 119 | | Reverse repurchase agreements and other similar secured lending | 194,770 | 208,284 | | Other financial assets | 21 | 17 | | Financial assets mandatorily at fair value | 252,773 | 262,593 | | Total | 253,812 | 263,960 | Credit risk of financial assets designated at fair value and related credit derivatives The following table shows the maximum exposure to credit risk, the changes in fair value attributable to changes in credit risk, and the cumulative changes in fair value since initial recognition for loans and advances. The table does not include debt securities as they have minimal exposure to credit risk due to limited gross exposure. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Barclays Bank Group | | | | | | | | | | | | | | | | Maximum exposure as at 31 December | | Changes in fair value during the year ended | | Cumulative changes in fair value from inception | | | | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | | | £m | £m | £m | £m | £m | £m | | Loans and advances designated at fair value, attributable to credit risk | 1,039 | 1,367 | (2) | 3 | (4) | 1 | | Value mitigated by related credit derivatives | 405 | 613 | — | (5) | — | (5) | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Barclays Bank PLC | | | | | | | | | | | | | | | | Maximum exposure as at 31 December | | Changes in fair value during the year ended | | Cumulative changes in fair value from inception | | | | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | | | £m | £m | £m | £m | £m | £m | | Loans and advances designated at fair value, attributable to credit risk | 1,039 | 1,367 | (2) | 3 | (4) | 1 | | Value mitigated by related credit derivatives | 405 | 613 | — | (5) | — | (5) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 299 | ## Notes to the financial statements ## Assets and liabilities held at fair value 13 Derivative financial instruments Accounting for derivatives ![]() Derivative instruments are contracts whose value is derived from one or more underlying financial instruments or indices defined in the contract. They include swaps, forward-rate agreements, futures, options and combinations of these instruments and primarily affect the Barclays Bank Group’s net interest income, net trading income and derivative assets and liabilities. Notional amounts of the contracts are not recorded on the balance sheet. Derivatives are used to hedge interest rate, credit risk, inflation risk, exchange rate, commodity, equity exposures and exposures to certain indices such as house price indices and retail price indices related to non-trading positions. All derivative instruments are held at fair value through profit or loss, except for derivatives that are in a designated cash flow or net investment hedge accounting relationship. Derivatives are classified as assets when their fair value is positive or as liabilities when their fair value is negative. Hedge accounting The Barclays Bank Group applies the requirements of IAS 39 Financial Instruments: Recognition and Measurement for hedge accounting purposes. The Barclays Bank Group applies hedge accounting to represent the economic effects of its interest rate, currency and contractually linked inflation risk management strategies. Where derivatives are held for risk management purposes, and when transactions meet the required criteria for documentation and hedge effectiveness, the Barclays Bank Group applies fair value hedge accounting, cash flow hedge accounting, or hedging of a net investment in a foreign operation, as appropriate to the risks being hedged. Fair value hedge accounting Changes in fair value of derivatives that qualify and are designated as fair value hedges are recorded in the income statement, together with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The fair value changes adjust the carrying value of the hedged asset or liability held at amortised cost. If hedge relationships no longer meet the criteria for hedge accounting, hedge accounting is discontinued. For fair value hedges of interest rate risk, the fair value adjustment to the hedged item is amortised to the income statement over the period to maturity of the previously designated hedge relationship using the effective interest method. If the hedged item is sold or repaid, the unamortised fair value adjustment is recognised immediately in the income statement. For items classified as fair value through other comprehensive income, the hedge accounting adjustment is included in other comprehensive income. Cash flow hedge accounting For qualifying cash flow hedges, the fair value gain or loss associated with the effective portion of the cash flow hedge is recognised initially in other comprehensive income, and then recycled to the income statement in the periods when the hedged item will affect profit or loss. Any ineffective portion of the gain or loss on the hedging instrument is recognised in the income statement immediately. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the hedged item is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was recognised in equity is immediately transferred to the income statement. Hedges of net investments The Barclays Bank Group’s net investments in foreign operations, including monetary items accounted for as part of the net investment, are hedged for foreign currency risks using both derivatives and foreign currency borrowings. Hedges of net investments are accounted for similarly to cash flow hedges; the effective portion of the gain or loss on the hedging instrument is being recognised directly in other comprehensive income and the ineffective portion being recognised immediately in the income statement. The cumulative gain or loss recognised in other comprehensive income is recognised in the income statement on the disposal or partial disposal of the foreign operation, or other reductions in the Barclays Bank Group’s investment in the operation. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Barclays Bank Group | 2024 | | | 2023 | | | | | Notional contract amount | Fair value | | Notional contract amount | Fair value | | | | Assets | Liabilities | Assets | Liabilities | | | £m | £m | £m | £m | £m | £m | | Total derivative assets/(liabilities) held for trading | 83,571,610 | 291,562 | (278,636) | 64,413,042 | 255,219 | (249,380) | | Total derivative assets/(liabilities) held for risk management | 221,158 | 794 | (695) | 212,817 | 892 | (500) | | Derivative assets/(liabilities) | 83,792,768 | 292,356 | (279,331) | 64,625,859 | 256,111 | (249,880) | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Barclays Bank PLC | 2024 | | | 2023 | | | | | Notional contract amount | Fair value | | Notional contract amount | Fair value | | | | Assets | Liabilities | Assets | Liabilities | | | £m | £m | £m | £m | £m | £m | | Total derivative assets/(liabilities) held for trading | 54,524,583 | 259,723 | (247,733) | 45,979,749 | 224,476 | (220,870) | | Total derivative assets/(liabilities) held for risk management | 203,994 | 764 | (684) | 207,416 | 825 | (495) | | Derivative assets/(liabilities) | 54,728,577 | 260,487 | (248,417) | 46,187,165 | 225,301 | (221,365) | Further information on netting arrangements of derivative financial instruments can be found within Note 17. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 300 | ## Notes to the financial statements ## Assets and liabilities held at fair value The fair values and notional amounts of derivatives held for trading are set out in the following table: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Derivatives held for trading and risk management | 2024 | | | 2023 | | | | Barclays Bank Group | Notional contract amount | Fair value | | Notional contract amount | Fair value | | | | Assets | Liabilities | Assets | Liabilities | | | £m | £m | £m | £m | £m | £m | | Derivatives held for trading | | | | | | | | Foreign exchange derivatives | | | | | | | | OTC derivatives | 8,242,887 | 123,379 | (116,485) | 6,531,231 | 86,830 | (82,625) | | Derivatives cleared by central counterparty | 240,612 | 228 | (235) | 186,672 | 529 | (512) | | Exchange traded derivatives | 27,441 | 7 | (7) | 17,899 | 2 | (2) | | Foreign exchange derivatives | 8,510,940 | 123,614 | (116,727) | 6,735,802 | 87,361 | (83,139) | | Interest rate derivatives | | | | | | | | OTC derivatives | 26,437,086 | 92,206 | (79,936) | 19,684,538 | 105,405 | (92,485) | | Derivatives cleared by central counterparty | 36,249,392 | 1,443 | (1,319) | 27,074,746 | 1,936 | (2,065) | | Exchange traded derivatives | 7,672,496 | 2,664 | (2,698) | 6,800,161 | 2,824 | (2,895) | | Interest rate derivatives | 70,358,974 | 96,313 | (83,953) | 53,559,445 | 110,165 | (97,445) | | Credit derivatives | | | | | | | | OTC derivatives | 593,702 | 3,474 | (4,307) | 587,472 | 4,936 | (6,005) | | Derivatives cleared by central counterparty | 943,413 | 3,424 | (3,148) | 860,878 | 2,726 | (2,625) | | Credit derivatives | 1,537,115 | 6,898 | (7,455) | 1,448,350 | 7,662 | (8,630) | | Equity and stock index derivatives | | | | | | | | OTC derivatives | 598,024 | 21,964 | (26,318) | 448,503 | 17,791 | (25,769) | | Exchange traded derivatives | 2,347,247 | 40,947 | (42,309) | 2,017,045 | 30,379 | (32,549) | | Equity and stock index derivatives | 2,945,271 | 62,911 | (68,627) | 2,465,548 | 48,170 | (58,318) | | Commodity derivatives | | | | | | | | OTC derivatives | 7,084 | 17 | (32) | 4,734 | 44 | (4) | | Exchange traded derivatives | 212,226 | 1,809 | (1,842) | 199,163 | 1,817 | (1,844) | | Commodity derivatives | 219,310 | 1,826 | (1,874) | 203,897 | 1,861 | (1,848) | | Derivative assets/(liabilities) held for trading | 83,571,610 | 291,562 | (278,636) | 64,413,042 | 255,219 | (249,380) | | | | | | | | | | Total OTC derivatives | 35,878,783 | 241,040 | (227,078) | 27,256,478 | 215,006 | (206,888) | | Total derivatives cleared by central counterparty | 37,433,417 | 5,095 | (4,702) | 28,122,296 | 5,191 | (5,202) | | Total exchange traded derivatives | 10,259,410 | 45,427 | (46,856) | 9,034,268 | 35,022 | (37,290) | | Derivative assets/(liabilities) held for trading | 83,571,610 | 291,562 | (278,636) | 64,413,042 | 255,219 | (249,380) | | | | | | | | | | Derivatives held for risk management | | | | | | | | Derivatives designated as cash flow hedges | | | | | | | | Currency Swaps | 26,564 | 611 | (307) | 17,995 | 625 | (8) | | Interest rate swaps | — | — | — | 266 | 17 | — | | Interest rate derivatives cleared by central counterparty | 86,759 | — | — | 95,964 | — | — | | Derivatives designated as cash flow hedges | 113,323 | 611 | (307) | 114,225 | 642 | (8) | | Derivatives designated as fair value hedges | | | | | | | | Interest rate swaps | 7,234 | 147 | (322) | 4,670 | 140 | (447) | | Interest rate derivatives cleared by central counterparty | 96,588 | — | — | 90,189 | — | — | | Derivatives designated as fair value hedges | 103,822 | 147 | (322) | 94,859 | 140 | (447) | | Derivatives designated as hedges of net investments | | | | | | | | Forward foreign exchange | 4,013 | 36 | (66) | 3,733 | 110 | (45) | | Derivatives designated as hedges of net investments | 4,013 | 36 | (66) | 3,733 | 110 | (45) | | Derivative assets/(liabilities) held for risk management | 221,158 | 794 | (695) | 212,817 | 892 | (500) | | | | | | | | | | Total OTC derivatives | 37,811 | 794 | (695) | 26,664 | 892 | (500) | | Total derivatives cleared by central counterparty | 183,347 | — | — | 186,153 | — | — | | Derivative assets/(liabilities) held for risk management | 221,158 | 794 | (695) | 212,817 | 892 | (500) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 301 | Notes to the financial statements Assets and liabilities held at fair value | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Derivatives held for trading and risk management | 2024 | | | 2023 | | | | Barclays Bank PLC | Notional contract amount | Fair value | | Notional contract amount | Fair value | | | | Assets | Liabilities | Assets | Liabilities | | | £m | £m | £m | £m | £m | £m | | Derivatives held for trading | | | | | | | | Foreign exchange derivatives | | | | | | | | OTC derivatives | 7,847,873 | 116,777 | (111,862) | 6,172,851 | 80,964 | (77,668) | | Derivatives cleared by central counterparty | 240,612 | 228 | (235) | 186,672 | 529 | (512) | | Exchange traded derivatives | 10,262 | — | — | 5,232 | — | — | | Foreign exchange derivatives | 8,098,747 | 117,005 | (112,097) | 6,364,755 | 81,493 | (78,180) | | Interest rate derivatives | | | | | | | | OTC derivatives | 12,301,136 | 72,977 | (65,125) | 10,700,738 | 82,712 | (74,395) | | Derivatives cleared by central counterparty | 19,690,237 | 796 | (581) | 15,696,268 | 1,022 | (1,151) | | Exchange traded derivatives | 3,017,812 | 178 | (100) | 3,180,964 | 393 | (473) | | Interest rate derivatives | 35,009,185 | 73,951 | (65,806) | 29,577,970 | 84,127 | (76,019) | | Credit derivatives | | | | | | | | OTC derivatives | 366,564 | 3,285 | (4,080) | 370,832 | 4,771 | (5,779) | | Derivatives cleared by central counterparty | 727,020 | 3,350 | (3,051) | 658,707 | 2,650 | (2,528) | | Credit derivatives | 1,093,584 | 6,635 | (7,131) | 1,029,539 | 7,421 | (8,307) | | Equity and stock index derivatives | | | | | | | | OTC derivatives | 561,370 | 20,255 | (24,222) | 420,293 | 17,012 | (24,725) | | Exchange traded derivatives | 802,709 | 7,775 | (9,063) | 609,424 | 5,767 | (6,231) | | Equity and stock index derivatives | 1,364,079 | 28,030 | (33,285) | 1,029,717 | 22,779 | (30,956) | | Commodity derivatives | | | | | | | | OTC derivatives | 6,559 | 14 | (31) | 4,124 | 37 | (3) | | Exchange traded derivatives | 35,136 | 367 | (435) | 27,357 | 302 | (311) | | Commodity derivatives | 41,695 | 381 | (466) | 31,481 | 339 | (314) | | Derivatives with subsidiaries | 8,917,293 | 33,721 | (28,948) | 7,946,287 | 28,317 | (27,094) | | Derivative assets/(liabilities) held for trading | 54,524,583 | 259,723 | (247,733) | 45,979,749 | 224,476 | (220,870) | | | | | | | | | | Total OTC derivatives | 21,083,502 | 213,308 | (205,320) | 17,668,838 | 185,496 | (182,570) | | Total derivatives cleared by central counterparty | 20,657,869 | 4,374 | (3,867) | 16,541,647 | 4,201 | (4,191) | | Total exchange traded derivatives | 3,865,919 | 8,320 | (9,598) | 3,822,977 | 6,462 | (7,015) | | Derivatives with subsidiaries | 8,917,293 | 33,721 | (28,948) | 7,946,287 | 28,317 | (27,094) | | Derivative assets/(liabilities) held for trading | 54,524,583 | 259,723 | (247,733) | 45,979,749 | 224,476 | (220,870) | | | | | | | | | | Derivatives held for risk management | | | | | | | | Derivatives designated as cash flow hedges | | | | | | | | Currency Swaps | 26,564 | 611 | (307) | 17,995 | 625 | (8) | | Interest rate swaps | — | — | — | 443 | — | — | | Interest rate derivatives cleared by central counterparty | 74,290 | — | — | 90,231 | — | — | | Derivatives designated as cash flow hedges | 100,854 | 611 | (307) | 108,669 | 625 | (8) | | Derivatives designated as fair value hedges | | | | | | | | Interest rate swaps | 4,833 | 118 | (289) | 3,071 | 124 | (440) | | Forward foreign exchange | 2,161 | — | (23) | 2,122 | 48 | — | | Interest rate derivatives cleared by central counterparty | 93,325 | — | — | 89,693 | — | — | | Derivatives designated as fair value hedges | 100,319 | 118 | (312) | 94,886 | 172 | (440) | | Derivatives designated as hedges of net investments | | | | | | | | Forward foreign exchange | 2,821 | 35 | (65) | 3,861 | 28 | (47) | | Derivatives designated as hedges of net investments | 2,821 | 35 | (65) | 3,861 | 28 | (47) | | Derivative assets/(liabilities) held for risk management | 203,994 | 764 | (684) | 207,416 | 825 | (495) | | | | | | | | | | Total OTC derivatives | 36,379 | 764 | (684) | 27,492 | 825 | (495) | | Total derivatives cleared by central counterparty | 167,615 | — | — | 179,924 | — | — | | Derivative assets/(liabilities) held for risk management | 203,994 | 764 | (684) | 207,416 | 825 | (495) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 302 | Notes to the financial statements Assets and liabilities held at fair value Hedge accounting ![]() Hedge accounting is applied predominantly for the following risks: ▪ Interest rate risk – arises due to a mismatch between fixed interest rates and floating interest rates ▪ Currency risk – arises due to assets or liabilities being denominated in different currencies than the functional currency of the relevant entity. At a consolidated level, currency risk also arises when the functional currency of subsidiaries are different from the parent ▪ Contractually linked inflation risk – arises from financial instruments within contractually specified inflation risk. The Barclays Bank Group does not hedge inflation risk that arises from other activities In order to hedge these risks, the Barclays Bank Group uses the following hedging instruments: ▪ Interest rate derivatives to swap interest rate exposure into either fixed or variable rates ▪ Currency derivatives to swap foreign currency exposures into the entity’s functional currency, and net investment exposure to local currency ▪ Inflation derivatives to swap inflation exposure into either fixed or variable interest rates In some cases, certain items which are economically hedged may be ineligible hedged items for the purposes of IAS 39, such as core deposits and equity. In these instances, a proxy hedging solution can be utilised whereby portfolios of floating rate assets are designated as eligible hedged items in cash flow hedges. In some hedging relationships, the Barclays Bank Group designates risk components of hedged items as follows: ▪ Benchmark interest rate risk as a component of interest rate risk, such as the Risk Free Rate (RFR) component ▪ Inflation risk as a contractually specified component of a debt instrument ▪ Exchange rate risk for foreign currency financial assets or financial liabilities ▪ Components of cash flows of hedged items, for example certain interest payments for part of the life of an instrument Using the benchmark interest rate risk results in other risks, such as credit risk and liquidity risk, being excluded from the hedge accounting relationship. In respect of many of the Barclays Bank Group’s hedge accounting relationships, the hedged item and hedging instrument change frequently due to the dynamic nature of the risk management and hedge accounting strategy. The Barclays Bank Group applies hedge accounting to dynamic scenarios, predominantly in relation to interest rate risk, with a combination of hedged items in order for its financial statements to reflect as closely as possible the economic risk management undertaken. In some cases, if the hedge accounting objective changes, the relevant hedge accounting relationship is de-designated and is replaced with a different hedge accounting relationship. Changes in the GBP value of net investments due to foreign currency movements are captured in the currency translation reserve, resulting in a movement in CET1 capital. The Barclays Bank Group mitigates this by matching the CET1 capital movements to the revaluation of the foreign currency RWA exposures. Net investment hedges are designated where necessary to reduce the exposure to movement in a particular exchange rate to within limits mandated by Risk. As far as possible, existing external currency liabilities are designated as the hedging instruments. The hedging instruments share the same risk exposures as the hedged items. Hedge effectiveness is determined with reference to quantitative tests, predominantly regression testing, but to the extent hedging instruments are exposed to different risks than the hedged items, this could result in hedge ineffectiveness or hedge accounting failures. Sources of ineffectiveness include the following: ▪ Mismatches between the contractual terms of the hedged item and hedging instrument, including basis differences ▪ Changes in credit risk of the hedging instruments ▪ If a hedging relationship becomes over-hedged, for example in hedges of net investments if the net asset value designated at the start of the period falls below the amount of the hedging instrument ▪ Cash flow hedges using external swaps with non-zero fair values | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 303 | Notes to the financial statements Assets and liabilities held at fair value | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Hedged items in fair value hedges | | | | | | | | | | | | | | | | | | | | Barclays Bank Group | | Accumulated fair value adjustment included in carrying amount | | | | | | | | | Carrying amount | Total | Of which: Accumulated fair value adjustment on items no longer in a hedge relationship | Change in fair value used as a basis to determine ineffectiveness | Hedge ineffectiveness recognised in the income statement1 | | | | | Hedged item statement of financial position classification and risk category | £m | £m | £m | £m | £m | | | | | 2024 | | | | | | | | | | Assets | | | | | | | | | | Loans and advances at amortised cost | | | | | | | | | | - Interest rate risk | 711 | (160) | (1) | (18) | 4 | | | | | - Inflation risk | 318 | 219 | 102 | (18) | 7 | | | | | Debt securities classified as amortised cost | | | | | | | | | | - Interest rate risk | 7,673 | (44) | 8 | 50 | 66 | | | | | - Inflation risk | 8,348 | (1,342) | 2 | (598) | (29) | | | | | Financial assets at fair value through other comprehensive income2 | | | | | | | | | | - Interest rate risk | 29,514 | (1,162) | (452) | (132) | 176 | | | | | - Inflation risk | 2,979 | (96) | (31) | (59) | (22) | | | | | Total Assets | 49,543 | (2,585) | (372) | (775) | 202 | | | | | Liabilities | | | | | | | | | | Debt securities in issue | | | | | | | | | | - Interest rate risk | (1,417) | 8 | (24) | (18) | 2 | | | | | Subordinated liabilities | | | | | | | | | | - Interest rate risk | (37,531) | 2,257 | 1,182 | 398 | (8) | | | | | Deposits at amortised cost from banks and customers | | | | | | | | | | - Interest rate risk | (8,596) | (12) | (1) | (4) | (2) | | | | | Repurchase agreements and other similar secured borrowing at amortised cost | | | | | | | | | | - Interest rate risk | — | — | — | — | — | | | | | Total Liabilities | (47,544) | 2,253 | 1,157 | 376 | (8) | | | | | Total Hedged Items | 1,999 | (332) | 785 | (399) | 194 | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 304 | Notes to the financial statements Assets and liabilities held at fair value | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Hedged items in fair value hedges | | | | | | | | | | | | | | | | | | | | Barclays Bank Group | | Accumulated fair value adjustment included in carrying amount | | | | | | | | | Carrying amount | Total | Of which: Accumulated fair value adjustment on items no longer in a hedge relationship | Change in fair value used as a basis to determine ineffectiveness | Hedge ineffectiveness recognised in the income statement1 | | | | | Hedged item statement of financial position classification and risk category | £m | £m | £m | £m | £m | | | | | 2023 | | | | | | | | | | Assets | | | | | | | | | | Loans and advances at amortised cost | | | | | | | | | | - Interest rate risk | 830 | (154) | (5) | 34 | (1) | | | | | - Inflation risk | 450 | 246 | — | 3 | (5) | | | | | Debt securities classified as amortised cost | | | | | | | | | | - Interest rate risk | 2,394 | (24) | (21) | 48 | 24 | | | | | - Inflation risk | 6,484 | (755) | 3 | 33 | (19) | | | | | Financial assets at fair value through other comprehensive income2 | | | | | | | | | | - Interest rate risk | 33,021 | (1,173) | (658) | 964 | 158 | | | | | - Inflation risk | 2,052 | (51) | (62) | 5 | 3 | | | | | Total Assets | 45,231 | (1,911) | (743) | 1,087 | 160 | | | | | Liabilities | | | | | | | | | | Debt securities in issue | | | | | | | | | | - Interest rate risk | (3,935) | (28) | (52) | (95) | (1) | | | | | Subordinated liabilities | | | | | | | | | | - Interest rate risk | (29,306) | 1,904 | 579 | (593) | 24 | | | | | Deposits at amortised cost from banks and customers | | | | | | | | | | - Interest rate risk | (10,766) | (18) | (2) | (31) | (2) | | | | | Repurchase agreements and other similar secured borrowing at amortised cost | | | | | | | | | | - Interest rate risk | (426) | 14 | 14 | (4) | 0 | | | | | Total Liabilities | (44,433) | 1,872 | 539 | (723) | 21 | | | | | Total Hedged Items | 798 | (39) | (204) | 364 | 181 | | | | Notes 1Hedge ineffectiveness is recognised in net interest income. 2For items classified as fair value through other comprehensive income, the hedge accounting adjustment is not included in the carrying amount, but rather adjusts other comprehensive income. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 305 | Notes to the financial statements Assets and liabilities held at fair value | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Hedged items in fair value hedges | | | | | | | Barclays Bank PLC | | Accumulated fair value adjustment included in carrying amount | | | | | | Carrying amount | Total | Of which: Accumulated fair value adjustment on items no longer in a hedge relationship | Change in fair value used as a basis to determine ineffectiveness | Hedge ineffectiveness recognised in the income statement1 | | Hedged item statement of financial position classification and risk category | £m | £m | £m | £m | £m | | 2024 | | | | | | | Assets | | | | | | | Loans and advances at amortised cost | | | | | | | - Interest rate risk | 711 | (160) | (1) | (18) | 4 | | - Inflation risk | 318 | 219 | 102 | (18) | 7 | | Debt securities classified as amortised cost | | | | | | | - Interest rate risk | 5,840 | (30) | 10 | 32 | 61 | | - Inflation risk | 6,440 | (1,306) | 7 | (580) | (30) | | Financial assets at fair value through other comprehensive income2 | | | | | | | - Interest rate risk | 28,711 | (1,177) | (452) | (145) | 176 | | - Inflation risk | 2,979 | (96) | (31) | (59) | (22) | | Investments in subsidiaries | | | | | | | - Foreign exchange risk | 5,719 | 94 | 85 | (9) | — | | Total Assets | 50,718 | (2,456) | (280) | (797) | 196 | | Liabilities | | | | | | | Debt securities in issue | | | | | | | - Interest rate risk | (27) | (6) | (7) | (7) | 1 | | Subordinated liabilities | | | | | | | - Interest rate risk | (37,365) | 2,269 | 549 | 395 | (8) | | Deposits at amortised cost from banks and customers | | | | | | | - Interest rate risk | (8,346) | (11) | (1) | (4) | (2) | | Repurchase agreements and other similar secured borrowing at amortised cost | | | | | | | - Interest rate risk | (393) | 7 | 5 | — | — | | Total Liabilities | (46,131) | 2,259 | 546 | 384 | (9) | | Total Hedged items | 4,587 | (197) | 266 | (413) | 187 | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 306 | Notes to the financial statements Assets and liabilities held at fair value | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Hedged items in fair value hedges | | | | | | | Barclays Bank PLC | | Accumulated fair value adjustment included in carrying amount | | | | | | Carrying amount | Total | Of which: Accumulated fair value adjustment on items no longer in a hedge relationship | Change in fair value used as a basis to determine ineffectiveness | Hedge ineffectiveness recognised in the income statement1 | | Hedged item statement of financial position classification and risk category | £m | £m | £m | £m | £m | | 2023 | | | | | | | Assets | | | | | | | Loans and advances at amortised cost | | | | | | | - Interest rate risk | 830 | (154) | (5) | 34 | (2) | | - Inflation risk | 450 | 246 | — | 3 | (5) | | Debt securities classified as amortised cost | | | | | | | - Interest rate risk | 2,045 | (30) | (21) | 42 | 20 | | - Inflation risk | 4,959 | (737) | 9 | 51 | (19) | | Financial assets at fair value through other comprehensive income2 | | | | | | | - Interest rate risk | 33,038 | (1,174) | (659) | 965 | 160 | | - Inflation risk | 2,026 | (51) | (62) | 5 | 3 | | Investments in subsidiaries | | | | | | | -Foreign exchange risk | 5,517 | 137 | 85 | (234) | — | | Total Assets | 48,864 | (1,763) | (653) | 866 | 157 | | Liabilities | | | | | | | Debt securities in issue | | | | | | | - Interest rate risk | (1,100) | 4 | (14) | (18) | 5 | | Subordinated liabilities | | | | | | | - Interest rate risk | (30,736) | 1,869 | 525 | (652) | 33 | | Deposits at amortised cost from banks and customers | | | | | | | - Interest rate risk | (10,766) | (18) | (2) | (31) | (3) | | Repurchase agreements and other similar secured borrowing at amortised cost | | | | | | | - Interest rate risk | (818) | 15 | 14 | (3) | 5 | | Total Liabilities | (43,420) | 1,870 | 523 | (704) | 40 | | Total Hedged items | 5,444 | 107 | (130) | 162 | 197 | Notes 1Hedge ineffectiveness is recognised in net interest income. 2For items classified as fair value through other comprehensive income, the hedge accounting adjustment is not included in the carrying amount, but rather adjusts other comprehensive income. Amount, timing and uncertainty of future cash flows The following table shows the fair value hedging instruments which are carried on the balance sheet: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | Barclays Bank Group | | Carrying value | | | Nominal amount | Change in fair value used as a basis to determine ineffectiveness | | | | Derivative assets | Derivative liabilities | Loan liabilities | | Hedge type | Risk category | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | | Fair value | Interest rate risk | 26 | (16) | — | 89,602 | (38) | | | Inflation risk | 121 | (306) | — | 14,220 | 631 | | | Total | 147 | (322) | — | 103,822 | 593 | | | | | | | | | | As at 31 December 2023 | | | | | | | | Fair value | Interest rate risk | 137 | (106) | — | 84,259 | (121) | | | Inflation risk | 3 | (341) | — | 10,600 | (62) | | | Total | 140 | (447) | — | 94,859 | (183) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 307 | ## Notes to the financial statements ## Assets and liabilities held at fair value | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Barclays Bank PLC | | Carrying value | | | Nominal amount | Change in fair value used as a basis to determine ineffectiveness | | | | Derivative assets | Derivative liabilities | Loan liabilities | | Hedge type | Risk category | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | | Fair value | Interest rate risk | — | (16) | — | 85,878 | (21) | | | Foreign exchange risk | — | (23) | (3,565) | 5,726 | 9 | | | Inflation risk | 118 | (273) | — | 12,280 | 612 | | | Total | 118 | (312) | (3,565) | 103,884 | 599 | | | | | | | | | | As at 31 December 2023 | | | | | | | | Fair value | Interest rate risk | 81 | (2) | — | 83,324 | (119) | | | Foreign exchange risk | 48 | — | (3,315) | 5,437 | 234 | | | Inflation risk | 43 | (438) | — | 9,440 | (80) | | | Total | 172 | (440) | (3,315) | 98,201 | 35 | The following table profiles the expected notional values of current hedging instruments for fair value hedging in future years: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 and later | | As at 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | | Barclays Bank Group | | | | | | | | | Fair value hedges of: | | | | | | | | | Interest rate risk (outstanding notional amount) | 89,602 | 77,074 | 67,309 | 55,277 | 51,051 | 43,755 | 37,221 | | Inflation risk (outstanding notional amount) | 14,220 | 14,143 | 12,915 | 12,106 | 10,478 | 9,535 | 8,335 | For Barclays Bank Group, there are 946 (2023: 960) interest rate risk fair value hedges with an average fixed rate of 2.6% (2023: 2.6%) across the relationships and 105 (2023: 79) inflation risk fair value hedges with an average rate of 0.2% (2023: 1.1%) across the relationships. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 and later | | As at 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | | Barclays Bank PLC | | | | | | | | | Fair value hedges of | | | | | | | | | Interest rate risk (outstanding notional amount) | 85,878 | 74,418 | 65,306 | 53,396 | 49,190 | 42,978 | 36,744 | | Inflation risk (outstanding notional amount) | 12,280 | 12,203 | 11,639 | 10,830 | 9,960 | 9,535 | 8,335 | | Foreign exchange risk (outstanding notional amount) | 5,726 | 3,969 | 3,565 | 3,565 | 3,565 | 3,565 | — | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 308 | ## Notes to the financial statements ## Assets and liabilities held at fair value | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Hedged items in cash flow hedges and hedges of net investments in foreign operations | | | | | | | | | Barclays Bank Group | | | | | | | | | | Change in value of hedged item used as the basis for recognising ineffectiveness | Balance in cash flow hedging reserve for continuing hedges | Balance in currency translation reserve for continuing hedges | Balances remaining in cash flow hedging reserve for which hedge accounting is no longer applied | Balances remaining in currency translation reserve for which hedge accounting is no longer applied | Hedging gains or losses recognised in other comprehensive income | Hedge ineffectiveness recognised in the income statement1 | | | | | | | | | | | Description of hedge relationship and hedged risk | £m | £m | £m | £m | £m | £m | £m | | 2024 | | | | | | | | | Assets | | | | | | | | | Cash flow hedge of: | | | | | | | | | Interest rate risk | | | | | | | | | Loans and advances at amortised cost | 438 | 182 | — | 1,552 | — | 438 | (8) | | Cash and balances at Central Banks | 495 | 123 | — | 1,495 | — | 495 | 22 | | Foreign exchange risk | | | | | | | | | Loans and advances at amortised cost | 300 | 106 | — | — | — | 300 | 5 | | Inflation risk | | | | | | | | | Debt securities classified at amortised cost | 118 | (73) | — | 25 | — | 118 | — | | Liabilities | | | | | | | | | Cash flow hedge of: | | | | | | | | | Foreign exchange risk | | | | | | | | | Subordinated Liabilities | 18 | (9) | — | — | — | 18 | — | | Total cash flow hedges | 1,369 | 329 | — | 3,072 | — | 1,369 | 19 | | Hedge of net investment in foreign operations | | | | | | | | | USD foreign operations | 136 | — | 1,449 | — | — | 136 | — | | EUR foreign operations | (109) | — | (26) | — | — | (109) | — | | Other foreign operations | (17) | — | 34 | — | 96 | (17) | — | | Total foreign operations | 10 | — | 1,457 | — | 96 | 10 | — | | | | | | | | | | | 2023 | | | | | | | | | Cash flow hedge of: | | | | | | | | | Interest rate risk | | | | | | | | | Loans and advances at amortised cost | (694) | 94 | — | 1,909 | — | (694) | 23 | | Cash and balances at Central Banks | (1,004) | (151) | — | 2,121 | — | (1,004) | 132 | | Foreign exchange risk | | | | | | | | | Loans and advances at amortised cost | (463) | 30 | — | — | — | (463) | 5 | | Inflation risk | | | | | | | | | Debt securities classified at amortised cost | (313) | (181) | — | 21 | — | (313) | — | | Total cash flow hedges | (2,474) | (208) | — | 4,051 | — | (2,474) | 160 | | Hedge of net investment in foreign operations | | | | | | | | | USD foreign operations | (522) | — | 1,374 | — | — | (522) | — | | EUR foreign operations | (49) | — | 83 | — | — | (49) | — | | Other foreign operations | (115) | — | 53 | — | 96 | (115) | — | | Total foreign operations | (686) | — | 1,510 | — | 96 | (686) | — | Note 1Hedge ineffectiveness is recognised in net interest income. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 309 | ## Notes to the financial statements ## Assets and liabilities held at fair value | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Hedged items in cash flow hedges and hedges of net investments in foreign operations | | | | | | | | | Barclays Bank PLC | | | | | | | | | | Change in value of hedged item used as the basis for recognising ineffectiveness | Balance in cash flow hedging reserve for continuing hedges | Balance in currency translation reserve for continuing hedges | Balances remaining in cash flow hedging reserve for which hedge accounting is no longer applied | Balances remaining in currency translation reserve for which hedge accounting is no longer applied | Hedging gains or losses recognised in other comprehensive income | Hedge ineffectiveness recognised in the income statement1 | | Description of hedge relationship and hedged risk | £m | £m | £m | £m | £m | £m | £m | | 2024 | | | | | | | | | Assets | | | | | | | | | Cash flow hedge of: | | | | | | | | | Interest rate risk | | | | | | | | | Loans and advances at amortised cost | 374 | 209 | — | 1,330 | — | 374 | (19) | | Cash and balances at Central Banks | 489 | 200 | — | 1,436 | — | 489 | 17 | | Foreign exchange risk | | | | | | | | | Loans and advances at amortised cost | 300 | 106 | — | — | — | 300 | 5 | | Inflation risk | | | | | | | | | Debt securities classified at amortised cost | 118 | (73) | — | 25 | — | 118 | — | | Liabilities | | | | | | | | | Cash flow hedge of: | | | | | | | | | Foreign exchange risk | | | | | | | | | Subordinated liabilities | 18 | (9) | — | — | — | 18 | — | | Total cash flow hedges | 1,299 | 433 | — | 2,791 | — | 1,299 | 3 | | Hedge of net investment in foreign operations | | | | | | | | | USD foreign operations | 46 | — | 1,207 | — | — | 46 | — | | EUR foreign operations | — | — | (1) | — | 2 | — | — | | Other foreign operations | (5) | — | (76) | — | — | (5) | — | | Total foreign operations | 41 | | 1,130 | — | 2 | 41 | — | | | | | | | | | | | 2023 | | | | | | | | | Cash flow hedge of: | | | | | | | | | Interest rate risk | | | | | | | | | Loans and advances at amortised cost | (660) | 202 | — | 1,678 | — | (660) | 42 | | Cash and balances at Central Banks | (989) | 166 | — | 1,829 | — | (989) | 70 | | Foreign exchange risk | | | | | | | | | Loans and advances at amortised cost | (463) | 30 | — | — | — | (463) | 5 | | Inflation risk | | | | | | | | | Debt securities classified at amortised cost | (313) | (181) | — | 21 | — | (313) | — | | Total cash flow hedges | (2,425) | 217 | — | 3,528 | — | (2,425) | 117 | | Hedge of net investment in foreign operations | | | | | | | | | USD foreign operations | (210) | — | 1,176 | — | — | (210) | — | | EUR foreign operations | — | — | (1) | — | 2 | — | — | | Other foreign operations | (95) | — | (71) | — | — | (95) | — | | Total foreign operations | (305) | — | 1,104 | — | 2 | (305) | — | Note 1Hedge ineffectiveness is recognised in net interest income. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 310 | ## Notes to the financial statements ## Assets and liabilities held at fair value The following table shows the cash flow and net investment hedging instruments which are carried on the balance sheet: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | Barclays Bank Group | | Carrying value | | | Nominal amount | Change in fair value used as a basis to determine ineffectiveness | | | | Derivative assets | Derivative liabilities | Loan liabilities | | Hedge type | Risk category | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | | Cash flow | Interest rate risk | — | — | — | 80,382 | (919) | | | Foreign exchange risk | 611 | (307) | — | 26,564 | (313) | | | Inflation risk | — | — | — | 6,377 | (118) | | | Total | 611 | (307) | — | 113,323 | (1,350) | | Net investment | Foreign exchange risk | 36 | (66) | (7,588) | 11,601 | (10) | | | | | | | | | | As at 31 December 2023 | | | | | | | | Cash flow | Interest rate risk | 17 | — | — | 93,423 | 1,853 | | | Foreign exchange risk | 625 | (8) | — | 17,995 | 468 | | | Inflation risk | — | — | — | 2,807 | 313 | | | Total | 642 | (8) | — | 114,225 | 2,634 | | Net investment | Foreign exchange risk | 110 | (45) | (8,507) | 12,240 | 686 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | Barclays Bank PLC | | Carrying value | | | Nominal amount | Change in fair value used as a basis to determine ineffectiveness | | | | Derivative assets | Derivative liabilities | Loan liabilities | | Hedge type | Risk category | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | | Cash flow | Interest rate risk | — | — | — | 67,913 | (865) | | | Foreign exchange risk | 611 | (307) | — | 26,564 | (313) | | | Inflation risk | — | — | — | 6,377 | (118) | | | Total | 611 | (307) | — | 100,854 | (1,296) | | Net investment | Foreign exchange risk | 35 | (65) | — | 2,821 | (41) | | | | | | | | | | As at 31 December 2023 | | | | | | | | Cash flow | Interest rate risk | — | — | — | 87,867 | 1,761 | | | Foreign exchange risk | 625 | (8) | — | 17,995 | 468 | | | Inflation risk | — | — | — | 2,807 | 313 | | | Total | 625 | (8) | — | 108,669 | 2,542 | | Net investment | Foreign exchange risk | 28 | (47) | — | 3,861 | 305 | For Barclays Bank Group and Barclays Bank PLC there are 2 (2023: 2) foreign exchange risk cash flow hedges with an average foreign exchange rate of JPY 149.87: GBP 1 (2023: JPY 147.80: GBP 1), 11 (2023: 8) with an average foreign exchange rate of USD 1.27: GBP 1 (2023: 1.25) and 9 (2023: none) with an average foreign exchange rate of AUD 1.94: GBP 1 (2023: none). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 311 | ## Notes to the financial statements ## Assets and liabilities held at fair value The effect on the income statement and other comprehensive income of recycling amounts in respect of cash flow hedges and net investment hedges of foreign operations is set out in the following table: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Barclays Bank Group | 2024 | | 2023 | | | | Amount recycled from other comprehensive income due to hedged item affecting income statement | Amount recycled from other comprehensive income due to sale of investment, or cash flows no longer expected to occur | Amount recycled from other comprehensive income due to hedged item affecting income statement | Amount recycled from other comprehensive income due to sale of investment, or cash flows no longer expected to occur | | | | | | | | Description of hedge relationship and hedged risk | £m | £m | £m | £m | | Cash flow hedge of interest rate risk | | | | | | Recycled to net interest income | (1,697) | (2) | (1,664) | (1) | | Cash flow hedge of foreign exchange risk | | | | | | Recycled to net interest income | (251) | — | 507 | — | | Hedge of net investment in foreign operations | | | | | | Recycled to other income | — | (1) | — | (6) | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Barclays Bank PLC | 2024 | | 2023 | | | | Amount recycled from other comprehensive income due to hedged item affecting income statement | Amount recycled from other comprehensive income due to sale of investment, or cash flows no longer expected to occur | Amount recycled from other comprehensive income due to hedged item affecting income statement | Amount recycled from other comprehensive income due to sale of investment, or cash flows no longer expected to occur | | Description of hedge relationship and hedged risk | £m | £m | £m | £m | | Cash flow hedge of interest rate risk | | | | | | Recycled to net interest income | (1,554) | (2) | (1,493) | (19) | | Cash flow hedge of foreign exchange risk | | | | | | Recycled to net interest income | (251) | — | 507 | — | | Hedge of net investment in foreign operations | | | | | | Recycled to other income | — | — | — | — | A detailed reconciliation of the movements of the cash flow hedging reserve and the currency translation reserve is as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Barclays Bank Group | 2024 | | 2023 | | | | Cash flow hedging reserve | Currency translation reserve | Cash flow hedging reserve | Currency translation reserve | | | £m | £m | £m | £m | | Balance on 1 January | (2,895) | 3,783 | (5,557) | 4,992 | | Currency translation movements | 20 | (194) | 32 | (1,934) | | Hedging (losses)/gains for the year | (1,369) | 50 | 2,474 | 686 | | Amounts reclassified in relation to cash flows affecting profit or loss | 1,950 | 1 | 1,158 | 6 | | Tax | (154) | 50 | (1,002) | 33 | | Balance on 31 December | (2,448) | 3,690 | (2,895) | 3,783 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Barclays Bank PLC | 2024 | | 2023 | | | | Cash flow hedging reserve | Currency translation reserve | Cash flow hedging reserve | Currency translation reserve | | | £m | £m | £m | £m | | Balance on 1 January | (2,697) | 845 | (5,180) | 1,417 | | Currency translation movements | 14 | 175 | 19 | (869) | | Hedging (losses)/gains for the year | (1,299) | (27) | 2,425 | 297 | | Amounts reclassified in relation to cash flows affecting profit or loss | 1,807 | — | 1,005 | — | | Tax | (146) | — | (966) | — | | Balance on 31 December | (2,321) | 993 | (2,697) | 845 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 312 | ## Notes to the financial statements ## Assets and liabilities held at fair value 14 Financial assets at fair value through other comprehensive income | | | --- | | | | Accounting for financial assets at fair value through other comprehensive income (FVOCI) Financial assets that are debt instruments held in a business model that is achieved by both collecting contractual cash flows and selling and that contain contractual terms that give rise on specified dates to cash flows that are SPPI are measured at FVOCI. They are subsequently re-measured at fair value and changes therein (except for those relating to impairment, interest income and foreign currency exchange gains and losses) are recognised in other comprehensive income until the assets are sold. Interest (calculated using the effective interest method) is recognised in the income statement in net interest income (Note 3). Upon disposal, the cumulative gain or loss recognised in other comprehensive income is included in net investment income (Note 6). In determining whether the business model is achieved by both collecting contractual cash flows and selling financial assets, it is determined that both collecting contractual cash flows and selling financial assets are integral to achieving the objective of the business model. The Barclays Bank Group will consider past sales and expectations about future sales to establish if the business model is achieved. For equity securities that are not held for trading, the Barclays Bank Group may make an irrevocable election on initial recognition to present subsequent changes in the fair value of the instrument in other comprehensive income (except for dividend income which is recognised in profit or loss). | | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | Debt securities and other eligible bills | 47,727 | 50,650 | | Equity securities | — | 2 | | Loans and advances | 3,283 | 771 | | Financial assets at fair value through other comprehensive income | 51,010 | 51,423 | | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | Debt securities and other eligible bills | 46,216 | 49,610 | | Loans and advances | 3,283 | 771 | | Financial assets at fair value through other comprehensive income | 49,499 | 50,381 | 15 Financial liabilities designated at fair value | | | --- | | | | Accounting for liabilities designated at fair value through profit and loss In accordance with IFRS 9, financial liabilities may be designated at fair value, with gains and losses taken to the income statement within net trading income (Note 5) and net investment income (Note 6). Movements in own credit are reported through other comprehensive income, unless the effects of changes in the liability's credit risk would create or enlarge an accounting mismatch in profit and loss. In these scenarios, all gains and losses on that liability (including the effects of changes in the credit risk of the liability) are presented in profit and loss. On derecognition of the financial liability no amounts relating to own credit risk are recycled to the income statement. The Barclays Bank Group has the ability to make the fair value designation when holding the instruments at fair value reduces an accounting mismatch (caused by an offsetting liability or asset being held at fair value), or is managed by the Barclays Bank Group on the basis of its fair value, or includes terms that have substantive derivative characteristics (Note 13). The details on how the fair value amounts are arrived at for financial liabilities designated at fair value are described in Note 16. | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Barclays Bank Group | | | | | | 2024 | | 2023 | | | | Fair value | Contractual amount due on maturity | Fair value | Contractual amount due on maturity | | | £m | £m | £m | £m | | Debt securities | 76,833 | 92,479 | 67,486 | 81,651 | | Deposits | 46,383 | 48,201 | 43,602 | 44,912 | | Repurchase agreements and other similar secured borrowing | 156,024 | 156,600 | 186,906 | 187,786 | | Subordinated debt | 537 | 957 | 579 | 942 | | Financial liabilities designated at fair value | 279,777 | 298,237 | 298,573 | 315,291 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 313 | ## Notes to the financial statements ## Assets and liabilities held at fair value | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Barclays Bank PLC | | | | | | 2024 | | 2023 | | | | Fair value | Contractual amount due on maturity | Fair value | Contractual amount due on maturity | | | £m | £m | £m | £m | | Debt securities | 70,984 | 85,661 | 60,350 | 73,491 | | Deposits | 32,039 | 33,038 | 28,072 | 28,777 | | Repurchase agreements and other similar secured borrowing | 225,962 | 226,682 | 262,944 | 263,943 | | Subordinated debt | 537 | 957 | 579 | 942 | | Financial liabilities designated at fair value | 329,522 | 346,338 | 351,945 | 367,153 | The cumulative own credit net loss recognised for Barclays Bank Group is £ 1,434m (2023: £ 307m loss) and for Barclays Bank PLC it is £1,369m (2023 : £285 m loss ) 16 Fair value of financial instruments Accounting for financial assets and liabilities – fair value ![]() Financial instruments that are held for trading are recognised at fair value through profit or loss. In addition, financial assets are held at fair value through profit or loss if they do not contain contractual terms that give rise on specified dates to cash flows that are SPPI, or if the financial asset is not held in a business model that is either (i) a business model to collect the contractual cash flows or (ii) a business model that is achieved by both collecting contractual cash flows and selling. Subsequent changes in fair value for these instruments are recognised in the income statement in net investment income, except if reporting it in trading income reduces an accounting mismatch. Wherever possible, fair value is determined by reference to a quoted market price for that instrument. For many of the Barclays Bank Group’s financial assets and liabilities, especially derivatives, quoted prices are not available and valuation models are used to estimate fair value. The models calculate the expected cash flows under the terms of each specific contract and then discount these values back to a present value. These models use as their basis independently sourced market inputs including, for example, interest rate yield curves, equities and commodities prices, option volatilities and currency rates. For financial liabilities measured at fair value, the carrying amount reflects the effect on fair value of changes in own credit spreads derived from observable market data such as in primary issuance and redemption activity for structured notes. On initial recognition, it is presumed that the transaction price is the fair value unless there is observable information available in an active market to the contrary. For valuations that have made use of unobservable inputs, the difference between the model valuation and the initial transaction price (Day One profit) is recognised in profit or loss either: on a straight-line basis over the term of the transaction; or over the period until all inputs will become observable where appropriate; or released in full when previously unobservable inputs become observable. Various factors influence the availability of observable inputs, and these may vary from product to product and change over time. Factors include the depth of activity in the relevant market, the type of product, whether the product is new and not widely traded in the marketplace, the maturity of market modelling and the nature of the transaction (bespoke or generic). To the extent that valuation is based on models or inputs that are not observable in the market, the determination of fair value can be more subjective, dependent on the significance of the unobservable input to the overall valuation. Unobservable inputs are determined based on the best information available, for example by reference to similar assets, similar maturities, or other analytical techniques. The sensitivity of valuations used in the financial statements to possible changes in significant unobservable inputs is shown on page [323](#idfa41501358c4cc38265a58000a65d5d_0-0-1-9-2922537). Critical accounting estimates and judgements The valuation of financial instruments often involves a significant degree of judgement and complexity, in particular where valuation models make use of unobservable inputs (‘Level 3’ assets and liabilities). This note provides information on these instruments, including the related unrealised gains and losses recognised in the period, a description of significant valuation techniques and unobservable inputs, and a sensitivity analysis. Climate related risks are assumed to be included in the fair values of assets and liabilities traded in active markets. Within less active markets, for counterparties and instruments identified as being more susceptible to climate change risk, an impact assessment was performed by increasing their probability of default. The change in the valuation of the assets and liabilities from this assessment was not sufficiently material to necessitate any amendment to the reported 2024 year-end valuations. Valuation Assets and liabilities are classified according to a hierarchy that reflects the observability of significant market inputs. The three levels of the fair value hierarchy are defined below with judgement applied in determining the boundary between Level 2 and 3 classifications. Quoted market prices – Level 1 Assets and liabilities are classified as Level 1 if their value is observable in an active market. Such instruments are valued by reference to unadjusted quoted prices for identical assets or liabilities in active markets where the quoted price is readily available, and the price represents actual and regularly occurring market transactions. An active market is one in which transactions occur with sufficient volume and frequency to provide pricing information on an ongoing basis. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 314 | ## Notes to the financial statements ## Assets and liabilities held at fair value Valuation technique using observable inputs – Level 2 Assets and liabilities classified as Level 2 have been valued using models whose inputs are observable either directly or indirectly. Valuations based on observable inputs include assets and liabilities such as swaps and forwards which are valued using market standard pricing techniques, and options that are commonly traded in markets where all the inputs to the market standard pricing models are observable. For certain instruments that derive a fair value using unobservable inputs that are not considered significant, then the asset or liability may be classified as Level 2. Valuation technique using significant unobservable inputs – Level 3 Assets and liabilities are classified as Level 3 if their valuation incorporates significant inputs that are not based on observable market data (unobservable inputs). A valuation input is considered observable if it can be directly observed from transactions in an active market, or if there is compelling external evidence demonstrating an executable exit price. Unobservable input levels are generally determined via reference to observable inputs, historical observations or using other analytical techniques. The following table shows assets and liabilities that are held at fair value disaggregated by valuation technique (fair value hierarchy) and balance sheet classification: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Assets and liabilities held at fair value | | | | | | | | | | | 2024 | | | | 2023 | | | | | | Valuation technique using | | | | Valuation technique using | | | | | | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | | Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 77,581 | 78,548 | 10,115 | 166,244 | 94,615 | 73,442 | 6,509 | 174,566 | | Financial assets at fair value through the income statement | 3,463 | 182,391 | 5,991 | 191,845 | 5,747 | 193,121 | 5,368 | 204,236 | | Derivative financial assets | 101 | 290,182 | 2,073 | 292,356 | 107 | 252,464 | 3,540 | 256,111 | | Financial assets at fair value through other comprehensive income | 19,021 | 28,315 | 3,674 | 51,010 | 21,079 | 29,568 | 776 | 51,423 | | Investment property | — | — | 9 | 9 | — | — | 2 | 2 | | Total Assets | 100,166 | 579,436 | 21,862 | 701,464 | 121,548 | 548,595 | 16,195 | 686,338 | | Trading portfolio liabilities | (27,033) | (28,754) | (395) | (56,182) | (28,380) | (29,013) | (368) | (57,761) | | Financial liabilities designated at fair value | (181) | (276,355) | (3,241) | (279,777) | (117) | (297,244) | (1,212) | (298,573) | | Derivative financial liabilities | (86) | (276,064) | (3,181) | (279,331) | (81) | (245,146) | (4,653) | (249,880) | | Total Liabilities | (27,300) | (581,173) | (6,817) | (615,290) | (28,578) | (571,403) | (6,233) | (606,214) | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Assets and liabilities held at fair value | | | | | | | | | | | 2024 | | | | 2023 | | | | | | Valuation technique using | | | | Valuation technique using | | | | | | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | | Barclays Bank PLC | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 51,258 | 41,909 | 8,863 | 102,030 | 64,341 | 42,697 | 5,616 | 112,654 | | Financial assets at fair value through the income statement | 906 | 247,909 | 4,997 | 253,812 | 30 | 259,170 | 4,760 | 263,960 | | Derivative financial assets | 3 | 258,559 | 1,925 | 260,487 | — | 222,421 | 2,880 | 225,301 | | Financial assets at fair value through other comprehensive income | 18,520 | 27,305 | 3,674 | 49,499 | 20,245 | 29,361 | 775 | 50,381 | | Investment property | — | — | — | — | — | — | 2 | 2 | | Total Assets | 70,687 | 575,682 | 19,459 | 665,828 | 84,616 | 553,649 | 14,033 | 652,298 | | Trading portfolio liabilities | (26,349) | (14,284) | (382) | (41,015) | (35,482) | (15,146) | (367) | (50,995) | | Financial liabilities designated at fair value | (71) | (326,229) | (3,222) | (329,522) | (16) | (350,781) | (1,148) | (351,945) | | Derivative financial liabilities | — | (245,421) | (2,996) | (248,417) | — | (217,208) | (4,157) | (221,365) | | Total Liabilities | (26,420) | (585,934) | (6,600) | (618,954) | (35,498) | (583,135) | (5,672) | (624,305) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 315 | ## Notes to the financial statements ## Assets and liabilities held at fair value The following table shows Barclays Bank Group’s Level 3 assets and liabilities that are held at fair value disaggregated by product type: | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | As at 31 December 2024 | Loans | Corporate debt | Asset backed securities | Government debt | Private equity investments | Issued debt | Reverse repurchase and repurchase agreements | Interest rate derivatives | Equity derivatives | Other products1 | Total | | | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 6,146 | 1,590 | 991 | 1,018 | — | — | — | — | — | 370 | 10,115 | | Financial assets at fair value through the income statement | 3,991 | 913 | 139 | 35 | 219 | — | 539 | — | — | 155 | 5,991 | | Derivative financial assets | — | — | — | — | — | — | — | 1,193 | 477 | 403 | 2,073 | | Financial assets at fair value through other comprehensive income | 2,858 | 47 | 757 | 12 | — | — | — | — | — | — | 3,674 | | Investment property | — | — | — | — | — | — | — | — | — | 9 | 9 | | Total assets | 12,995 | 2,550 | 1,887 | 1,065 | 219 | — | 539 | 1,193 | 477 | 937 | 21,862 | | Trading portfolio liabilities | — | (374) | (6) | — | — | — | — | — | — | (15) | (395) | | Financial liabilities designated at fair value | — | — | — | — | — | (1,842) | (1,379) | — | — | (20) | (3,241) | | Derivative financial liabilities | — | — | — | — | — | — | — | (1,013) | (1,219) | (949) | (3,181) | | Total Liabilities | — | (374) | (6) | — | — | (1,842) | (1,379) | (1,013) | (1,219) | (984) | (6,817) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | As at 31 December 2023 | Loans | Corporate debt | Asset backed securities | Government debt | Private equity investments | Issued debt | Reverse repurchase and repurchase agreements | Interest rate derivatives | Equity derivatives | Other products1 | Total | | | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 4,469 | 679 | 318 | 669 | — | — | — | — | — | 374 | 6,509 | | Financial assets at fair value through the income statement | 3,984 | 889 | 85 | — | 145 | — | 209 | — | — | 56 | 5,368 | | Derivative financial assets | — | — | — | — | — | — | — | 2,211 | 977 | 352 | 3,540 | | Financial assets at fair value through other comprehensive income | 533 | — | 200 | 42 | — | — | — | — | — | 1 | 776 | | Investment property | — | — | — | — | — | — | — | — | — | 2 | 2 | | Total assets | 8,986 | 1,568 | 603 | 711 | 145 | — | 209 | 2,211 | 977 | 785 | 16,195 | | Trading portfolio liabilities | — | (359) | — | — | — | — | — | — | — | (9) | (368) | | Financial liabilities designated at fair value | — | — | — | — | — | (629) | (517) | — | — | (66) | (1,212) | | Derivative financial liabilities | — | — | — | — | — | — | — | (1,701) | (2,041) | (911) | (4,653) | | Total Liabilities | — | (359) | — | — | — | (629) | (517) | (1,701) | (2,041) | (986) | (6,233) | Note 1 Other products include funds and fund-linked products, equity cash products, investment property, foreign exchange derivatives and credit derivatives. Valuation techniques and sensitivity analysis Sensitivity analysis is performed on products with significant unobservable inputs (Level 3) to generate a range of reasonably possible alternative valuations. The sensitivity methodologies applied take account of nature of the valuation techniques used, as well as availability and reliability of observable proxy and historical data and impact of using alternative models. Sensitivities are dynamically calculated on a monthly basis. The calculation is based on range or spread data of a reliable reference source or a scenario based on relevant market analysis alongside the impact of using alternative models. Sensitivities are calculated without reflecting the impact of any diversification in the portfolio. The valuation techniques used, observability and sensitivity analysis for material products within Level 3, are described below. Interest rate derivatives Description: Derivatives linked to interest rates or inflation indices. The category includes futures, interest rate and inflation swaps, swaptions, caps, floors, inflation options, balance guaranteed swaps and other exotic interest rate derivatives. Valuation: Interest rate and inflation derivatives are generally valued using curves of forward rates constructed from market data to project and discount the expected future cash flows of trades. Instruments with optionality are valued using volatilities implied from market inputs and use industry standard or bespoke models depending on the product type. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 316 | ## Notes to the financial statements ## Assets and liabilities held at fair value Observability: In general, inputs are considered observable up to liquid maturities which are determined separately for each input and underlying. Unobservable inputs are generally set by referencing liquid market instruments and applying extrapolation techniques or inferred via another reasonable method. Equity derivatives Description: Exchange traded or OTC derivatives linked to equity indices and single names. The category includes vanilla and exotic equity products. Valuation: Equity derivatives are valued using industry standard models. Valuation inputs include stock prices, dividends, volatilities, interest rates, equity repurchase curves and, for multi-asset products, correlations. Observability: In general, valuation inputs are observable up to liquid maturities which are determined separately for each input and underlying. Unobservable inputs are set by referencing liquid market instruments and applying extrapolation techniques or inferred via another reasonable method. Corporate debt Description: Primarily corporate bonds. Valuation: Corporate bonds are valued using observable market prices sourced from broker quotes, inter-dealer prices or other reliable pricing sources. Observability: Prices for actively traded bonds are considered observable. Unobservable bond prices are generally determined by reference to bond yields or CDS spreads for actively traded instruments issued by or referencing the same (or a similar) issuer. Reverse repurchase and repurchase agreements Description: Includes securities purchased under resale agreements, securities sold under repurchase agreements, and other similar secured lending agreements. The agreements are primarily short-term in nature. Valuation: Repurchase and reverse repurchase agreements are generally valued by discounting the expected future cash flows using industry standard models that incorporate market interest rates and repurchase rates, based on the specific details of the transaction. Observability: Inputs are deemed observable up to liquid maturities or for consensus pricing with low pricing-range and are determined based on the specific features of the transaction. Unobservable inputs are generally set by referencing liquid market instruments and applying extrapolation techniques or inferred via another reasonable method. Loans Description: A drawn lending facility issued to corporate clients and customers. Valuation: Loans are valued either using a price based approach or through models that discount expected future cash flows based on interest rates and loan spreads. Observability: Within this loan population, the price or loan spread may be unobservable. Private equity investments Description: Includes investments in equity holdings in operating companies not quoted on a public exchange. Valuation: Private equity investments are valued in accordance with the ‘International Private Equity and Venture Capital Valuation Guidelines’ which require the use of a number of individual pricing benchmarks such as the prices of recent transactions in the same or similar entities, discounted cash flow analysis and comparison with the earnings or revenue multiples of listed companies. While the valuation of unquoted equity instruments is subjective by nature, the relevant methodologies are commonly applied by other market participants and have been consistently applied over time. Observability: Inputs are considered observable if there is active trading in a liquid market of products with significant sensitivity to the inputs. Unobservable inputs include earnings or revenue estimates, multiples of comparative companies, marketability discounts and discount rates. Asset backed securities Description: Securities that are linked to the cash flows of a pool of referenced assets via securitisation. The category includes residential mortgage backed securities, commercial mortgage backed securities, CDOs, collateralised loan obligations (CLOs) and other asset backed securities. Valuation: Where available, valuations are based on observable market prices sourced from broker quotes and inter-dealer prices and external vendor provides who provide pricing. Otherwise, valuations are determined using industry standard discounted cash flow analysis that calculates the fair value based on valuation inputs such as constant default rate, conditional prepayment rate, loss given default and yield. These inputs are determined by reference to a number of sources including proxying to observed transactions, market indices or market research, and by assessing underlying collateral performance. Proxying to observed transactions, indices or research requires an assessment and comparison of the relevant securities’ underlying attributes including collateral, tranche, vintage, underlying asset composition (historical losses, borrower characteristics and loan attributes such as loan to value ratio and geographic concentration) and credit ratings (original and current). Observability: Where an asset backed product does not have an observable market price and the valuation is determined using a discounted cash flow analysis, the instrument is considered unobservable. Government debt Description: Government bonds, supra sovereign bonds and agency bonds. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 317 | ## Notes to the financial statements ## Assets and liabilities held at fair value Valuation: Liquid bonds that are actively traded through an exchange or clearing house are marked to the levels observed in these markets. Other actively traded bonds are valued using observable market prices sourced from broker quotes, inter-dealer prices or other reliable pricing sources. Observability: Prices for actively traded bonds are considered observable. Unobservable bonds prices are generally determined by reference to bond yields for actively traded bonds from the same (or a similar) issuer. Issued debt Description: Debt notes issued by Barclays. Valuation: Issued debt is valued using discounted cash flow techniques models incorporating various inputs observed for each instrument. Observability: Barclays issued notes are generally observable. Structured notes are debt instruments containing embedded derivatives. Where either an input to the embedded derivative or the debt instrument is deemed unobservable and significant to the overall valuation of the note, the structured note is classified as Level 3. Other products Description: Other products include funds and fund-linked products, equity cash products, investment property, credit derivatives and foreign exchange derivatives. Assets and liabilities reclassified between Level 1 and Level 2 During the year ended 31 December 2024, there were no material transfers between Level 1 to Level 2 (year ended 31 December 2023: there were no material transfers between Level 1 and Level 2). Level 3 movement analysis The following table summarises the movements in the Level 3 balances during the year. Transfers have been reflected as if they had taken place at the beginning of the year. Asset and liability transfers between Level 2 and Level 3 are primarily due to 1) an increase or decrease in observable market activity related to an input or 2) a change in the significance of the unobservable input, with assets and liabilities classified as Level 3 if an unobservable input is deemed significant. | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Analysis of movements in Level 3 assets and liabilities | | | | | | | | | | | | | | As at 1 January 2024 | | | | | Total gains and (losses) in the period recognised in the income statement | | Total gains and (losses) in the period recognised in OCI | Transfers | | 31 December 2024 | | | Purchases | Sales | Issues | Settlements | Trading income 2 | Other income | In | Out | | Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 6,509 | 5,848 | (1,817) | — | (865) | (9) | — | — | 775 | (326) | 10,115 | | Financial assets at fair value through the income statement | 5,368 | 2,540 | (1,524) | — | (582) | — | 56 | — | 206 | (73) | 5,991 | | Fair value through other comprehensive income | 776 | 3,116 | (43) | — | — | 3 | 22 | — | — | (200) | 3,674 | | Investment property | 2 | 9 | (2) | — | — | — | — | — | — | — | 9 | | Trading portfolio liabilities | (368) | (26) | 20 | — | — | (7) | — | — | (15) | 1 | (395) | | Financial liabilities designated at fair value | (1,212) | (409) | — | (1,147) | 143 | (74) | — | — | (892) | 350 | (3,241) | | Net derivative financial instruments1 | (1,113) | (571) | (7) | — | (15) | (66) | — | — | 163 | 501 | (1,108) | | Total | 9,962 | 10,507 | (3,373) | (1,147) | (1,319) | (153) | 78 | — | 237 | 253 | 15,045 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 318 | ## Notes to the financial statements ## Assets and liabilities held at fair value | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Analysis of movements in Level 3 assets and liabilities | | | | | | | | | | | | | | As at 1 January 2023 | | | | | Total gains and (losses) in the period recognised in the income statement | | Total gains and (losses) in the period recognised in OCI | Transfers | | As at 31 December 2023 | | | Purchases | Sales | Issues | Settlements | Trading income 2 | Other income | In | Out | | Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 6,480 | 3,394 | (3,023) | — | (602) | 11 | — | — | 1,059 | (810) | 6,509 | | Financial assets at fair value through the income statement | 6,111 | 3,877 | (3,411) | — | (1,084) | 26 | (14) | — | 239 | (376) | 5,368 | | Fair value through other comprehensive income | 4 | 733 | — | — | (3) | — | — | — | 42 | — | 776 | | Investment property | 5 | — | (4) | — | — | — | 1 | — | — | — | 2 | | Trading portfolio liabilities | (56) | (367) | 45 | — | — | — | — | — | — | 10 | (368) | | Financial liabilities designated at fair value | (1,042) | (38) | — | (403) | — | (38) | (3) | — | (147) | 459 | (1,212) | | Net derivative financial instruments1 | (1,190) | (639) | 24 | — | 83 | (92) | — | — | 388 | 313 | (1,113) | | Total | 10,312 | 6,960 | (6,369) | (403) | (1,606) | (93) | (16) | — | 1,581 | (404) | 9,962 | Notes 1 The derivative financial instruments are represented on a net basis. On a gross basis, derivative financial assets are £2,073m (2023: £3,540m) and derivative financial liabilities are £(3,181)m (2023: £(4,653)m). 2 Trading income represents gains and losses on Level 3 financial instruments which in the majority are offset by losses and gains on financial instruments disclosed in level 2. | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Analysis of movements in Level 3 assets and liabilities | | | | | | | | | | | | | | As at 1 January 2024 | | | | | Total gains and (losses) in the period recognised in the income statement | | Total gains and (losses) in the period recognised in OCI | Transfers | | 31 December 2024 | | | Purchases | Sales | Issues | Settlements | Trading income 2 | Other income | In | Out | | Barclays Bank PLC | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 5,616 | 4,856 | (1,286) | — | (839) | (5) | — | — | 669 | (148) | 8,863 | | Financial assets at fair value through the income statement | 4,760 | 1,977 | (1,379) | — | (477) | 11 | 29 | — | 150 | (74) | 4,997 | | Fair value through other comprehensive income | 775 | 3,116 | (42) | — | — | 3 | 22 | — | — | (200) | 3,674 | | Investment property | 2 | — | (2) | — | — | — | — | — | — | — | — | | Trading portfolio liabilities | (367) | (18) | 20 | — | — | (12) | — | — | (5) | — | (382) | | Financial liabilities designated at fair value | (1,148) | (409) | — | (1,128) | 143 | (74) | — | — | (891) | 285 | (3,222) | | Net derivative financial instruments1 | (1,277) | (567) | (9) | — | 58 | (52) | — | — | 246 | 530 | (1,071) | | Total | 8,361 | 8,955 | (2,698) | (1,128) | (1,115) | (129) | 51 | — | 169 | 393 | 12,859 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 319 | ## Notes to the financial statements ## Assets and liabilities held at fair value | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Analysis of movements in Level 3 assets and liabilities | | | | | | | | | | | | | | As at 1 January 2023 | | | | | Total gains and (losses) in the period recognised in the income statement | | Total gains and (losses) in the period recognised in OCI | Transfers | | As at 31 December 2023 | | | Purchases | Sales | Issues | Settlements | Trading income 2 | Other income | In | Out | | Barclays Bank PLC | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | 5,974 | 1,857 | (2,054) | — | (532) | (6) | — | — | 699 | (322) | 5,616 | | Financial assets at fair value through the income statement | 5,451 | 3,719 | (3,252) | — | (1,028) | 34 | (21) | — | 56 | (199) | 4,760 | | Fair value through other comprehensive income | 3 | 733 | — | — | (3) | — | — | — | 42 | — | 775 | | Investment property | 2 | — | — | — | — | — | — | — | — | — | 2 | | Trading portfolio liabilities | (48) | (367) | 38 | — | — | — | — | — | — | 10 | (367) | | Financial liabilities designated at fair value | (956) | (40) | — | (404) | — | (38) | — | — | (87) | 377 | (1,148) | | Net derivative financial instruments1 | (1,257) | (621) | 22 | — | 124 | (117) | — | — | 290 | 282 | (1,277) | | Total | 9,169 | 5,281 | (5,246) | (404) | (1,439) | (127) | (21) | — | 1,000 | 148 | 8,361 | Notes 1 The derivative financial instruments are represented on a net basis. On a gross basis, derivative financial assets are £1,925m ( 2023: £2,880m) and derivative financial liabilities are £(2,996)m (2023: £(4,157)m) . 2 Trading income represents gains and losses on Level 3 financial instruments which in the majority are offset by losses and gains on financial instruments disclosed in level 2. Unrealised gains and losses on Level 3 financial assets and liabilities The following tables disclose the unrealised gains and losses recognised in the year arising on Level 3 financial assets and liabilities held at year end. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Unrealised gains and (losses) recognised during the period on Level 3 assets and liabilities held at year end | | | | | | | | | | | 2024 | | | | 2023 | | | | | | Income statement | | Other compre- hensive income | | Income statement | | Other compre- hensive income | | | | Trading income 1 | Other income | Total | Trading income 1 | Other income | Total | | Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | (9) | — | — | (9) | 10 | — | — | 10 | | Financial assets at fair value through the income statement | — | 55 | — | 55 | 28 | 1 | — | 29 | | Fair value through other comprehensive income | 3 | 22 | — | 25 | — | — | — | — | | Investment property | — | — | — | — | — | 1 | — | 1 | | Trading portfolio liabilities | (7) | — | — | (7) | — | — | — | — | | Financial liabilities designated at fair value | (77) | — | — | (77) | (38) | (3) | — | (41) | | Net derivative financial instruments1 | (58) | — | — | (58) | (107) | — | — | (107) | | Total | (148) | 77 | — | (71) | (107) | (1) | — | (108) | Note 1 Trading income represents gains and losses on Level 3 financial instruments which in the majority are offset by losses and gains on financial instruments disclosed in level 2. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 320 | ## Notes to the financial statements ## Assets and liabilities held at fair value | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Unrealised gains and (losses) recognised during the period on Level 3 assets and liabilities held at year end | | | | | | | | | | | 2024 | | | | 2023 | | | | | | Income statement | | Other compre- hensive income | Total | Income statement | | Other compre- hensive income | Total | | Barclays Bank PLC | Trading income 1 | Other income | Trading income 1 | Other income | | | £m | £m | £m | £m | £m | £m | £m | £m | | Trading portfolio assets | (5) | — | — | (5) | (8) | — | — | (8) | | Financial assets at fair value through the income statement | 11 | 28 | — | 39 | 36 | (6) | — | 30 | | Fair value through other comprehensive income | 3 | 22 | — | 25 | — | — | — | — | | Investment property | — | — | — | — | — | — | — | — | | Trading portfolio liabilities | (12) | — | — | (12) | — | — | — | — | | Financial liabilities designated at fair value | (77) | — | — | (77) | (38) | — | — | (38) | | Net derivative financial instruments1 | (45) | — | — | (45) | (132) | — | — | (132) | | Total | (125) | 50 | — | (75) | (142) | (6) | — | (148) | Note 1 Trading income represents gains and losses on Level 3 financial instruments which in the majority are offset by losses and gains on financial instruments disclosed in level 2. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 321 | ## Notes to the financial statements ## Assets and liabilities held at fair value Significant unobservable inputs The following table discloses the valuation techniques and significant unobservable inputs for assets and liabilities recognised at fair value and classified as Level 3 along with the range of values used for those significant unobservable inputs: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | Valuation technique(s)1 | Significant unobservable inputs | 2024 | | 2023 | | | | Range | | Range | | | | Min | Max | Min | Max | Units2 | | Derivative financial instruments3 | | | | | | | | | Interest rate derivatives | Discounted cash flows | Inflation forwards | 3 | 3 | 4 | 7 | % | | | | Credit spread | 14 | 1,972 | 15 | 1,672 | bps | | | | Yield | 0 | 12 | 1 | 7 | % | | | | Growth curve | n/m4 | n/m4 | (1) | 2 | % | | | Option model | Inflation volatility | n/m4 | n/m4 | 66 | 257 | bps vol | | | | Interest rate volatility | 19 | 175 | 26 | 515 | bps vol | | | | FX - IR correlation | (36) | 30 | (20) | 78 | % | | | | IR - IR correlation | 33 | 98 | (20) | 98 | % | | | | IR - Inflation correlation | 10 | 10 | 10 | 10 | % | | | | Inflation - Inflation correlation | 5 | 5 | 5 | 5 | % | | Equity derivatives | Option model | Equity volatility | 1 | 133 | 5 | 138 | % | | | | Equity - equity correlation | 40 | 100 | 40 | 100 | % | | | Discounted cash flow | Discount margin | (215) | 351 | (238) | 110 | bps | | Non-derivative financial instruments | | | | | | | | | Loans | Discounted cash flows | Loan spread | 35 | 908 | 41 | 802 | bps | | | | Credit spread | 194 | 1,011 | 186 | 870 | bps | | | | Discount margin | 230 | 345 | 230 | 345 | bps | | | | Yield | 2 | 18 | 7 | 18 | % | | | Comparable pricing | Comparable price | 0 | 240 | 0 | 287 | points | | Asset backed securities | Comparable pricing | Comparable price | 0 | 125 | 0 | 5,000 | points | | | Discounted cash flows | Discount margin | (137) | (25) | n/m4 | n/m4 | bps | | | Option Model | Equity volatility | 15 | 32 | n/m4 | n/m4 | % | | Corporate debt | Comparable pricing | Comparable price | 0 | 2,322 | 0 | 352 | points | | Government debt | Comparable pricing | Comparable price | 0 | 123 | 1 | 127 | points | | Issued debt | Discounted cash flows | Credit spread | 50 | 198 | 60 | 192 | bps | | | Option model | Equity volatility | 1 | 111 | 4 | 91 | % | | | | Interest rate volatility | 19 | 211 | 11 | 391 | bps vol | | Reverse repurchase and repurchase agreements | Discounted cash flows | Repo spread | 14 | 186 | 385 | 468 | bps | Notes 1A range has not been provided for Net Asset Value as there would be a wide range reflecting the diverse nature of the positions. 2The units used to disclose ranges for significant unobservable inputs are percentages, points and basis points. Points are a percentage of par; for example, 100 points equals 100% of par. A basis point equals 1/100th of 1%; for example, 150 basis points equals 1.5%. 3Certain derivative instruments are classified as Level 3 due to a significant unobservable credit spread input into the calculation of the Credit Valuation Adjustment for the instruments. The range of significant unobservable credit spreads is between 14bps-1,972bps (2023 : 29 bps-1,672bps). 4      Non-material level 3 balances for these unobservable inputs. The following section describes the significant unobservable inputs identified in the table above, and the sensitivity of fair value measurement of the instruments categorised as Level 3 assets or liabilities to increases in significant unobservable inputs. Where sensitivities are described, the inverse relationship will also generally apply. Where reliable interrelationships can be identified between significant unobservable inputs used in fair value measurement, a description of those interrelationships is included below. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 322 | ## Notes to the financial statements ## Assets and liabilities held at fair value Forwards A price or rate that is applicable to a financial transaction that will take place in the future. In general, a significant increase in a forward in isolation will result in a fair value increase for the contracted receiver of the underlying (currency, bond, commodity, etc.), but the sensitivity is dependent on the specific terms of the instrument. Credit spread Credit spreads typically represent the difference in yield between an instrument and a benchmark security or reference rate. Credit spreads reflect the additional yield that a market participant demands for taking on exposure to the credit risk of an instrument and form part of the yield used in a discounted cash flow calculation. In general, a significant increase in credit spread in isolation will result in a fair value decrease for a cash asset. For a derivative instrument, a significant increase in credit spread in isolation can result in a fair value increase or decrease depending on the specific terms of the instrument. Volatility Volatility is a measure of the variability or uncertainty in return for a given derivative underlying. It is an estimate of how much a particular underlying instrument input or index will change in value over time. In general, volatilities are implied from observed option prices. For unobservable options the implied volatility may reflect additional assumptions about the nature of the underlying risk, and the strike/ maturity profile of a specific contract. In general, a significant increase in volatility in isolation will result in a fair value increase for the holder of a simple option, but the sensitivity is dependent on the specific terms of the instrument. There may be interrelationships between unobservable volatilities and other unobservable inputs (e.g. when equity prices fall, implied equity volatilities generally rise) but these are generally specific to individual markets and may vary over time. Correlation Correlation is a measure of the relationship between the movements of two variables. Correlation can be a significant input into valuation of derivative contracts with more than one underlying instrument. Credit correlation generally refers to the correlation between default processes for the separate names that make up the reference pool of a collateralised debt obligation (CDO) structure. A significant increase in correlation in isolation can result in a fair value increase or decrease depending on the specific terms of the instrument. Comparable price Comparable instrument prices are used in valuation by calculating an implied yield (or spread over a liquid benchmark) from the price of a comparable observable instrument, then adjusting that yield (or spread) to account for relevant differences such as maturity or credit quality. Alternatively, a price-to-price basis can be assumed between the comparable and unobservable instruments in order to establish a value. Loans includes a portfolio of loans extended to clients within the Barclays Bank Group’s leveraged finance business. Leveraged finance loans are originated where Barclays Bank Group provides financing commitments to clients to facilitate strategic transactions such as leverage buyouts and acquisitions. The sensitivity of the portfolio to unobservable inputs is judgmental reflecting their illiquid nature and the significance of unobservable price inputs to the valuation. In general, a significant increase in comparable price in isolation will result in an increase in the price of the unobservable instrument. For derivatives, a change in the comparable price in isolation can result in a fair value increase or decrease depending on the specific terms of the instrument. Loan spread Loan spreads typically represent the difference in yield between an instrument and a benchmark security or reference rate. Loan spreads typically reflect credit quality, the level of comparable assets such as gilts and other factors, and form part of the yield used in a discounted cash flow calculation. In general, a significant increase in loan spreads in isolation will result in a fair value decrease for a loan. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 323 | ## Notes to the financial statements ## Assets and liabilities held at fair value | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Sensitivity analysis of valuations using unobservable inputs (Relates to Level 3 Portfolios) | | | | | | | | | | | | 2024 | | | | 2023 | | | | | | | Favourable changes | | Unfavourable changes | | Favourable changes | | Unfavourable changes | | | | | | | | | | | | | | | | Income statement | Equity | Income statement | Equity | Income statement | Equity | Income statement | Equity | | | Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m | | | Loans | 577 | 43 | (742) | (43) | 545 | 2 | (763) | (2) | | | Corporate debt | 87 | — | (56) | — | 34 | — | (22) | — | | | Asset backed securities | 57 | 4 | (40) | (4) | 37 | 1 | (27) | (1) | | | Government debt | 47 | — | (56) | — | 31 | — | (34) | — | | | Private equity investments | 28 | — | (28) | — | 9 | — | (9) | — | | | Interest rate derivatives | 98 | — | (212) | — | 78 | — | (158) | — | | | Equity derivatives | 199 | — | (269) | — | 142 | — | (226) | — | | | Other products1 | 91 | — | (104) | — | 89 | — | (98) | — | | | Total | 1,184 | 47 | (1,507) | (47) | 965 | 3 | (1,337) | (3) | | Note 1Other products include equity cash products, credit derivatives, foreign exchange derivatives and fund and fund linked products The effect of stressing unobservable inputs to a range of reasonably possible alternatives, alongside considering the impact of using alternative models, would be to increase fair values by up to £1,231m (2023: £968m) or to decrease fair values by up to £1,554m (2023: £1,340m) with substantially all the potential effect impacting profit and loss. Unfavourable changes shown in the table above are partly provided for through the capital and prudential valuation adjustment framework. Fair value adjustments Key balance sheet valuation adjustments are quantified below: | | | | | --- | --- | --- | | | | | | | 2024 | 2023 | | Barclays Bank Group | £m | £m | | Exit price adjustments derived from market bid-offer spreads | (529) | (558) | | Uncollateralised derivative funding | 19 | (4) | | Derivative credit valuation adjustments | (184) | (209) | | Derivative debit valuation adjustments | 108 | 144 | Exit price adjustments derived from market bid-offer spreads Barclays Bank Group uses mid-market pricing where it is a market maker and has the ability to transact at, or better than, mid-price (which is the case for certain equity, bond and vanilla derivative markets). For other financial assets and liabilities, bid-offer adjustments are recorded to reflect the exit level for the expected close out strategy. The methodology for determining the bid-offer adjustment for a derivative portfolio involves calculating the net risk exposure by offsetting long and short positions by strike and term in accordance with the risk management and hedging strategy. Bid-offer levels are generally derived from market quotes such as broker data. Less liquid instruments may not have a directly observable bid-offer level. In such instances, an exit price adjustment may be derived from an observable bid-offer level for a comparable liquid instrument, or determined by calibrating to derivative prices, or by scenario or historical analysis. Exit price adjustments derived from market bid-offer spreads have decreased by £29m from £(558)m to £(529)m. Discounting approaches for derivative instruments Collateralised In line with market practice, the methodology for discounting collateralised derivatives takes into account the nature and currency of the collateral that can be posted within the relevant credit support annex (CSA). The CSA aware discounting approach recognises the ‘cheapest to deliver’ option that reflects the ability of the party posting collateral to change the currency of the collateral. Uncollateralised A fair value adjustment of £19m has been applied to account for the impact of incorporating the cost of funding into the valuation of uncollateralised and partially collateralised derivative portfolios and collateralised derivatives where the terms of the agreement do not allow the rehypothecation of collateral received. The derivative funding adjustment has moved by £23m from £(4)m to £19m . Derivative credit and debit valuation adjustments Derivative credit valuation adjustments and Derivative debit valuation adjustments are incorporated into derivative valuations to reflect the impact on fair value of counterparty credit risk and Barclays Bank Group’s own credit quality respectively. These adjustments are calculated for uncollateralised and partially collateralised derivatives across all asset classes. Derivative credit valuation adjustments and Derivative debit valuation adjustments are calculated using estimates of exposure at default, probability of default and recovery rates, at a counterparty level. Counterparties include (but are not limited to) corporates, Sovereigns and Sovereign agencies and Supranationals. Exposure at default is generally estimated through the simulation of underlying risk factors through approximating with a more vanilla structure, or by using current or scenario-based mark to market as an estimate of future exposure. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 324 | ## Notes to the financial statements ## Assets and liabilities held at fair value Probability of default and recovery rate information is generally sourced from the Credit Default Swap (CDS) markets. Where this information is not available, or considered unreliable, alternative approaches are taken based on mapping internal counterparty ratings onto historical or market-based default and recovery information. Derivative credit valuation adjustments decreased by £25m from £(209)m to £(184)m as a result of tightening in input counterparty credit spreads. Derivative debit valuation adjustments decreased by £36m from £144m to £108m, as a result of a tightening in input own credit spreads. Correlation between counterparty credit and underlying derivative risk factors, termed ‘wrong-way,’ or ‘right-way’ risk, is not systematically incorporated into the Derivative credit valuation adjustments calculation but is adjusted where the underlying exposure is directly related to the counterparty. Barclays Bank Group continues to monitor market practices and activity to ensure the approach to uncollateralised derivative valuation remains appropriate. Portfolio exemptions Barclays Bank Group uses the portfolio exemption in IFRS 13 Fair Value Measurement to measure the fair value of groups of financial assets and liabilities. Financial instruments are measured using the price that would be received to sell a net long position (i.e. an asset) for a particular risk exposure or to transfer a net short position (i.e. a liability) for a particular risk exposure in an orderly transaction between market participants at the balance sheet date under current market conditions. Accordingly, Barclays Bank Group measures the fair value of the group of financial assets and liabilities consistently with how market participants would price the net risk exposure at the measurement date. Unrecognised gains as a result of the use of valuation models using unobservable inputs The amount that has yet to be recognised in income that relates to the difference between the transaction price (the fair value at initial recognition) and the amount that would have arisen had valuation models using unobservable inputs been used on initial recognition, less amounts subsequently recognised is £267m (2023: £194m) for financial instruments measured at fair value and £17m (2023: £18m) for financial instruments carried at amortised cost. There are additions and FX revaluation of £177m (2023: £136m) and amortisation and releases of £104m (2023: £48m) for financial instruments measured at fair value and additions of £nil (2023: £nil) and amortisation and releases of £1m (2023: £7m) for financial instruments carried at amortised cost. Third-party credit enhancements Structured and brokered certificates of deposit issued by Barclays Bank Group are insured up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC) in the US. The FDIC is funded by premiums that Barclays Bank Group and other banks pay for deposit insurance coverage. The carrying value of these issued certificates of deposit that are designated under the IFRS 9 fair value option includes this third-party credit enhancement. The on-balance sheet value of these brokered certificates of deposit amounted to £4,844m (2023: £5,162m). Comparison of carrying amounts and fair values for assets and liabilities not held at fair value The following table summarises the fair value of financial assets and liabilities measured at amortised cost on Barclays Bank Group’s and Barclays Bank PLC's balance sheet disaggregated by balance sheet classification: | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Barclays Bank Group | 2024 | | | | | 2023 | | | | | | | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | | | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Financial assets | | | | | | | | | | | | Debt securities at amortised cost | 50,227 | 49,400 | 18,307 | 29,509 | 1,584 | 39,046 | 37,807 | 13,976 | 21,384 | 2,447 | | Loans and advances at amortised cost | 144,827 | 146,369 | 6,791 | 67,601 | 71,977 | 146,201 | 147,323 | 5,766 | 73,231 | 68,326 | | Reverse repurchase agreements and other similar secured lending | 3,393 | 3,393 | — | 3,393 | — | 1,103 | 1,103 | — | 1,103 | — | | Assets included in disposal groups classified as held for sale | 9,544 | 9,628 | — | 3,520 | 6,108 | 3,855 | 3,855 | — | 3,855 | — | | Financial liabilities | | | | | | | | | | | | Deposits at amortised cost | (319,376) | (319,135) | (203,393) | (115,172) | (570) | (301,798) | (301,851) | (166,087) | (135,461) | (303) | | Repurchase agreements and other similar secured borrowing | (29,397) | (29,397) | — | (29,397) | — | (28,554) | (28,554) | — | (28,554) | — | | Debt securities in issue | (35,803) | (35,745) | — | (34,612) | (1,133) | (45,653) | (45,557) | — | (44,595) | (962) | | Subordinated liabilities | (41,875) | (43,030) | — | (42,189) | (841) | (35,903) | (37,295) | — | (37,100) | (195) | | Liabilities included in disposal groups classified as held for sale | (3,647) | (3,647) | — | (3,647) | — | (3,077) | (3,077) | — | (3,077) | — | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 325 | ## Notes to the financial statements ## Assets and liabilities held at fair value | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Barclays Bank PLC | 2024 | | | | | 2023 | | | | | | | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | | | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | | Financial assets | | | | | | | | | | | | Debt securities at amortised cost | 35,519 | 34,783 | 14,213 | 18,986 | 1,584 | 33,576 | 32,413 | 13,975 | 16,125 | 2,313 | | Loans and advances at amortised cost | 225,052 | 224,768 | 2,469 | 178,458 | 43,841 | 242,439 | 241,631 | 1,453 | 207,030 | 33,148 | | Reverse repurchase agreements and other similar secured lending | 5,546 | 5,546 | — | 5,546 | — | 6,876 | 6,876 | — | 6,876 | — | | Financial liabilities | | | | | | | | | | | | Deposits at amortised cost | (348,093) | (348,073) | (171,540) | (176,231) | (302) | (347,303) | (347,284) | (139,396) | (207,585) | (303) | | Repurchase agreements and other similar secured borrowing | (46,196) | (46,196) | — | (46,196) | — | (43,951) | (43,951) | — | (43,951) | — | | Debt securities in issue | (12,991) | (12,925) | — | (12,894) | (31) | (24,833) | (24,769) | — | (24,752) | (17) | | Subordinated Liabilities | (41,240) | (42,419) | | (42,201) | (218) | (35,237) | (36,646) | — | (36,451) | (195) | The fair value is an estimate of the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As a wide range of valuation techniques are available, it may not be appropriate to directly compare this fair value information to independent market sources or other financial institutions. Different valuation methodologies and assumptions can have a significant impact on fair values which are based on unobservable inputs. Financial assets Debt Securities at amortised cost Debt securities at amortised cost are valued using observable market prices sourced from broker quotes, inter-dealer prices or other reliable pricing sources. Prices for actively traded bonds are considered observable. Where market data for the underlying bond is unavailable, a number of proxy/extrapolation techniques are employed to determine the appropriate fair value Loans and advances at amortised cost The fair value of loans and advances, for the purpose of this disclosure, is derived from discounting expected cash flows in a way that reflects the current market price for lending to issuers of similar credit quality. Where market data or credit information on the underlying borrowers is unavailable, a number of proxy/extrapolation techniques are employed to determine the appropriate discount rates. Reverse repurchase agreements and other similar secured lending The fair value of reverse repurchase agreements approximates carrying amount as these balances are generally short dated and fully collateralised. Financial liabilities Deposits at amortised cost In many cases, the fair value disclosed approximates carrying value because the instruments are short-term in nature or have interest rates that reprice frequently, such as customer accounts and other deposits and short-term debt securities. The fair value for deposits with longer-term maturities, mainly time deposits, are estimated using discounted cash flows applying either market rates or current rates for deposits of similar remaining maturities. Repurchase agreements and other similar secured borrowing The fair value of repurchase agreements approximates carrying amount as these balances are generally short dated. Debt securities in issue Fair values of other debt securities in issue are based on quoted prices where available or, where the instruments are short dated, carrying amount approximates fair value. Subordinated liabilities Fair values for dated and undated convertible and non-convertible loan capital are based on quoted market rates for the issuer concerned or issuers with similar terms and conditions. Assets & liabilities included in disposal groups classified as held for sale The fair value for the purposes of this disclosure has been prepared in accordance with the products held for sale, and valuation techniques used to determine the expected sales price of these assets and liabilities that will be achieved when the disposal group is sold. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 326 | ## Notes to the financial statements ## Assets and liabilities held at fair value 17 Offsetting financial assets and financial liabilities The Barclays Bank Group reports financial assets and financial liabilities on a net basis on the balance sheet only if there is a legally enforceable right to set-off the recognised amounts and there is intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. The following table shows the impact of netting arrangements on: ▪ All financial assets and liabilities that are reported net on the balance sheet. ▪ All derivative financial instruments and reverse repurchase and repurchase agreements and other similar secured lending and borrowing agreements that are subject to enforceable master netting arrangements or similar agreements, but do not qualify for balance sheet netting. The ‘Net amounts’ presented in the table below are not intended to represent the Barclays Bank Group’s actual exposure to credit risk, as a variety of credit mitigation strategies are employed in addition to netting and collateral arrangements. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Barclays Bank Group | Amounts subject to enforceable netting arrangements | | | | | | Amounts not subject to enforceable netting arrangements3 | Balance sheet total 4 | | | Effects of offsetting on-balance sheet | | | Related amounts not offset | | | | | Gross amounts | Amounts offset 1 | Net amounts reported on the balance sheet | Financial instruments | Financial collateral2 | Net amount | | As at 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | £m | | Derivative financial assets | 333,711 | (47,207) | 286,504 | (230,260) | (41,586) | 14,658 | 5,852 | 292,356 | | Reverse repurchase agreements and other similar secured lending5 | 700,005 | (556,219) | 143,786 | — | (143,347) | 439 | 1,398 | 145,184 | | Total assets | 1,033,716 | (603,426) | 430,290 | (230,260) | (184,933) | 15,097 | 7,250 | 437,540 | | Derivative financial liabilities | (318,990) | 46,040 | (272,950) | 230,260 | 27,660 | (15,030) | (6,381) | (279,331) | | Repurchase agreements and other similar secured borrowing5 | (737,053) | 556,219 | (180,834) | — | 180,834 | — | (4,587) | (185,421) | | Total liabilities | (1,056,043) | 602,259 | (453,784) | 230,260 | 208,494 | (15,030) | (10,968) | (464,752) | | | | | | | | | | | | As at 31 December 2023 | | | | | | | | | | Derivative financial assets | 306,735 | (55,781) | 250,954 | (198,633) | (39,927) | 12,394 | 5,157 | 256,111 | | Reverse repurchase agreements and other similar secured lending5 | 677,255 | (529,435) | 147,820 | — | (147,397) | 423 | 2,414 | 150,234 | | Total assets | 983,990 | (585,216) | 398,774 | (198,633) | (187,324) | 12,817 | 7,571 | 406,345 | | Derivative financial liabilities | (297,308) | 54,241 | (243,067) | 198,633 | 27,930 | (16,504) | (6,813) | (249,880) | | Repurchase agreements and other similar secured borrowing5 | (736,112) | 529,435 | (206,677) | — | 206,677 | — | (8,783) | (215,460) | | Total liabilities | (1,033,420) | 583,676 | (449,744) | 198,633 | 234,607 | (16,504) | (15,596) | (465,340) | Notes 1. Amounts offset for derivative financial assets additionally includes cash collateral netted of £5,126m (2023: £7,527m). Amounts offset for derivative financial liabilities additionally includes cash collateral netted of £6,293m (2023: £9,067m). Settlement assets and liabilities have been offset amounting to £25,133m (2023: £29,297m). 2. Financial collateral of £41,586m ( 2023: £39,927m) was received in respect of derivative assets, including £28,953m ( 2023: £29,944m) of cash collateral and £12,633m (2023: £9,983m) of non-cash collateral. Financial collateral of £27,660m (2023: £27,930m) was placed in respect of derivative liabilities, including £23,109m (2023: £24,212m) of cash collateral and £4,551m (2023: £3,718m ) of non-cash collateral. The collateral amounts are limited to net balance sheet exposure so as to not include over-collateralisation. 3. This column includes contractual rights of set-off that are subject to uncertainty under the laws of the relevant jurisdiction. 4. The balance sheet total is the sum of ‘Net amounts reported on the balance sheet’ that are subject to enforceable netting arrangements and ‘Amounts not subject to enforceable netting arrangements’. 5. Reverse repurchase agreements and other similar secured lending of £145,184m (2023: £150,234m) is split by fair value £141,791m (2023: £149,131m) and amortised cost £3,393m (2023: £1,103m). Repurchase agreements and other similar secured borrowing of £185,421m (2023: £215,460m) is split by fair value £156,024m (2023: £186,906m) and amortised cost £29,397m (2023: £28,554m). Derivative assets and liabilities The ‘Financial instruments’ column identifies financial assets and liabilities that are subject to set off under netting agreements, such as the ISDA Master Agreement or derivative exchange or clearing counterparty agreements, whereby all outstanding transactions with the same counterparty can be offset and close-out netting applied across all outstanding transactions covered by the agreements if an event of default or other predetermined events occur. Financial collateral refers to cash and non-cash collateral obtained, typically daily or weekly, to cover the net exposure between counterparties by enabling the collateral to be realised in an event of default or if other predetermined events occur. Reverse repurchase and repurchase agreements and other similar secured lending and borrowing The ‘Financial instruments’ column identifies financial assets and liabilities that are subject to set off under netting agreements, such as Global Master Repurchase Agreements and Global Master Securities Lending Agreements, whereby all outstanding transactions with the same counterparty can be offset and close-out netting applied across all outstanding transactions covered by the agreements if an event of default or other predetermined events occur. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 327 | ## Notes to the financial statements ## Assets and liabilities held at fair value Financial collateral typically comprises highly liquid securities which are legally transferred and can be liquidated in the event of counterparty default. These offsetting collateral arrangements and other credit risk mitigation strategies used by the Barclays Bank Group are further explained in the Credit risk management section on page [145](#i42ccfa2716954faaaca95f14f090c573_6720). | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Barclays Bank PLC | Amounts subject to enforceable netting arrangements | | | | | | Amounts not subject to enforceable netting arrangements3 | Balance sheet total 4 | | | Effects of offsetting on-balance sheet | | | Related amounts not offset | | | | | Gross amounts | Amounts offset 1 | Net amounts reported on the balance sheet | Financial instruments | Financial collateral2 | Net amount | | As at 31 December 2024 | £m | £m | £m | £m | £m | £m | £m | £m | | Derivative financial assets | 284,547 | (29,080) | 255,467 | (207,100) | (31,199) | 17,168 | 5,020 | 260,487 | | Reverse repurchase agreements and other similar secured lending5 | 753,437 | (554,064) | 199,373 | — | (199,373) | — | 942 | 200,315 | | Total assets | 1,037,984 | (583,144) | 454,840 | (207,100) | (230,572) | 17,168 | 5,962 | 460,802 | | Derivative financial liabilities | (271,092) | 28,368 | (242,724) | 207,100 | 22,560 | (13,064) | (5,693) | (248,417) | | Repurchase agreements and other similar secured borrowing5 | (822,448) | 554,064 | (268,384) | — | 268,384 | — | (3,774) | (272,158) | | Total liabilities | (1,093,540) | 582,432 | (511,108) | 207,100 | 290,944 | (13,064) | (9,467) | (520,575) | | | | | | | | | | | | As at 31 December 2023 | £m | £m | £m | £m | £m | £m | £m | £m | | Derivative financial assets | 254,810 | (34,202) | 220,608 | (179,930) | (28,854) | 11,824 | 4,693 | 225,301 | | Reverse repurchase agreements and other similar secured lending5 | 746,121 | (532,487) | 213,634 | — | (213,634) | — | 1,526 | 215,160 | | Total assets | 1,000,931 | (566,689) | 434,242 | (179,930) | (242,488) | 11,824 | 6,219 | 440,461 | | Derivative financial liabilities | (248,228) | 32,849 | (215,379) | 179,930 | 22,296 | (13,153) | (5,986) | (221,365) | | Repurchase agreements and other similar secured borrowing5 | (831,957) | 532,487 | (299,470) | — | 299,470 | — | (7,425) | (306,895) | | Total liabilities | (1,080,185) | 565,336 | (514,849) | 179,930 | 321,766 | (13,153) | (13,411) | (528,260) | Notes 1. Amounts offset for derivative financial assets additionally includes cash collateral netted of £3,685m ( 2023: £4,709m). Amounts offset for derivative financial liabilities additionally includes cash collateral netted of £4,397m ( 2023: £6,062m). Settlement assets and liabilities have been offset amounting to £15,355m (2023 : £21,734m). 2. Financial collateral of £31,199m (2023: £28,854m) was received in respect of derivative assets, including £20,218m (2023: £20,465m) of cash collateral and £10,981m (2023: £8,389m ) of non-cash collateral. Financial collateral of £22,560m (2023: £22,296m) was placed in respect of derivative liabilities, including £18,871m (2023 : £20,094m) of cash collateral and £3,689m (2023: £2,202m) of non-cash collateral. The collateral amounts are limited to net balance sheet exposure so as to not include over-collateralisation. 3. This column includes contractual rights of set-off that are subject to uncertainty under the laws of the relevant jurisdiction. 4. The balance sheet total is the sum of ‘Net amounts reported on the balance sheet’ that are subject to enforceable netting arrangements and ‘Amounts not subject to enforceable netting arrangements’. 5. Reverse Repurchase agreements and other similar secured lending of £200,315m (2023: £215,160m) is split by fair value £194,769m (2023: £208,284m ) and amortised cost £5,546m (2023: £6,876m). Repurchase agreements and other similar secured borrowing of £272,158m (2023: £306,895m) is split by fair value £225,962m (2023 : £262,944m) and amortised cost £46,196m (2023: £43,951m). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 328 | ## Notes to the financial statements ## Assets at amortised cost and other investments 18 Property, plant and equipment Accounting for property, plant and equipment ![]() Property, plant and equipment is stated at cost, which includes direct and incremental acquisition costs less accumulated depreciation and provisions for impairment, if required. Subsequent costs are capitalised if these result in enhancement of the asset. Depreciation is provided on the depreciable amount of items of property, plant and equipment on a straight-line basis over their estimated useful economic lives. Depreciation rates, methods and the residual values underlying the calculation of depreciation of items of property, plant and equipment are kept under review to take account of any change in circumstances including consideration on future Climate and Sustainability investments. The Barclays Bank Group and Barclays Bank PLC use the following annual rates in calculating depreciation: | | | | --- | --- | | | | | Annual rates in calculating depreciation | Depreciation rate | | Freehold land | Not depreciated | | Freehold buildings | 2%- 3.3% | | Leasehold property | Over the remaining life of the lease | | Costs of adaptation of freehold and leasehold property | 6%- 10% | | Equipment installed in freehold and leasehold property | 6%- 10% | | Computers and similar equipment | 17%- 33% | | Fixtures and fittings and other equipment | 9%- 20% | Costs of adaptation and installed equipment are depreciated over the shorter of the life of the lease or the depreciation rates noted in the table above. Investment property The Barclays Bank Group and Barclays Bank PLC initially recognises investment property at cost, and subsequently at fair value at each balance sheet date, reflecting market conditions at the reporting date. Gains and losses on remeasurement are included in the income statement. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Barclays Bank Group | | | | | | | Investment property | Property | Equipment | Right of use assets1 | Total | | | £m | £m | £m | £m | £m | | Cost | | | | | | | As at 1 January 2024 | 2 | 1,540 | 942 | 803 | 3,287 | | Additions | 9 | 70 | 58 | 12 | 149 | | Disposals2 | (2) | (14) | (47) | (9) | (72) | | Exchange and other movements3 | — | 28 | (15) | 237 | 250 | | As at 31 December 2024 | 9 | 1,624 | 938 | 1,043 | 3,614 | | Accumulated depreciation and impairment | | | | | | | As at 1 January 2024 | — | (778) | (690) | (557) | (2,025) | | Depreciation charge | — | (42) | (73) | (51) | (166) | | Impairment charge | — | — | — | — | — | | Disposals2 | — | 14 | 40 | 9 | 63 | | Exchange and other movements3 | — | (7) | (2) | 69 | 60 | | As at 31 December 2024 | — | (813) | (725) | (530) | (2,068) | | Net book value | 9 | 811 | 213 | 513 | 1,546 | | Cost | | | | | | | As at 1 January 2023 | 5 | 1,624 | 1,039 | 781 | 3,449 | | Additions | — | 18 | 85 | 9 | 112 | | Disposals2 | (3) | (12) | (186) | (3) | (204) | | Exchange and other movements | — | (90) | 4 | 16 | (70) | | As at 31 December 2023 | 2 | 1,540 | 942 | 803 | 3,287 | | Accumulated depreciation and impairment | | | | | | | As at 1 January 2023 | — | (782) | (775) | (513) | (2,070) | | Depreciation charge | — | (47) | (78) | (52) | (177) | | Impairment charge | — | — | — | (13) | (13) | | Disposals2 | — | 9 | 185 | 3 | 197 | | Exchange and other movements | — | 42 | (22) | 18 | 38 | | As at 31 December 2023 | — | (778) | (690) | (557) | (2,025) | | Net book value | 2 | 762 | 252 | 246 | 1,262 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 329 | ## Notes to the financial statements ## Assets at amortised cost and other investments | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Barclays Bank PLC | | | | | | | Investment property | Property | Equipment | Right of use assets1 | Total | | | £m | £m | £m | £m | £m | | Cost | | | | | | | As at 1 January 2024 | 2 | 62 | 150 | 354 | 568 | | Additions | — | 9 | 12 | 10 | 31 | | Disposals2 | (2) | (10) | (6) | (7) | (25) | | Exchange and other movements | — | (1) | — | 3 | 2 | | As at 31 December 2024 | — | 60 | 156 | 360 | 576 | | Accumulated depreciation and impairment | | | | | | | As at 1 January 2024 | — | (42) | (103) | (306) | (451) | | Depreciation charge | — | (3) | (15) | (13) | (31) | | Impairment charge | — | — | — | — | — | | Disposals2 | — | 10 | 6 | 7 | 23 | | Exchange and other movements | — | 1 | (3) | 10 | 8 | | As at 31 December 2024 | — | (34) | (115) | (302) | (451) | | Net book value | — | 26 | 41 | 58 | 125 | | Cost | | | | | | | As at 1 January 2023 | 2 | 61 | 179 | 331 | 573 | | Additions | — | 7 | 15 | 10 | 32 | | Disposals2 | — | (6) | (39) | (2) | (47) | | Exchange and other movements | — | — | (5) | 15 | 10 | | As at 31 December 2023 | 2 | 62 | 150 | 354 | 568 | | Accumulated depreciation and impairment | | | | | | | As at 1 January 2023 | — | (45) | (135) | (283) | (463) | | Depreciation charge | — | (1) | (14) | (12) | (27) | | Impairment charge | — | — | — | (4) | (4) | | Disposals2 | — | 3 | 41 | 1 | 45 | | Exchange and other movements | — | 1 | 5 | (8) | (2) | | As at 31 December 2023 | — | (42) | (103) | (306) | (451) | | Net book value | 2 | 20 | 47 | 48 | 117 | Notes 1Right of use (ROU) asset balances relate to Property Leases accounted in accordance with IFRS 16 . Refer to Note 19 for further details. 2Disposals pertain to fully depreciated assets which are not in use. 3      Exchange and other movements in Right of use (ROU) asset balances include modification related to a lease extension by ~91 years. Property rentals of £8m (2023: £8m) have been included in other income within the Barclays Bank Group. The fair value of investment property is determined by reference to current market prices for similar properties, adjusted as necessary for condition and location, or by reference to recent transactions updated to reflect current economic conditions. Discounted cash flow techniques may be employed to calculate fair value where there have been no recent transactions, using current external market inputs such as market rents and interest rates. Valuations are carried out by management with the support of appropriately qualified independent valuers. 19 Leases Accounting for leases ![]() When the Barclays Bank Group or Barclays Bank PLC are the lessee, they are required to recognise both: ▪ a lease liability, measured at the present value of remaining cash flows on the lease ▪ a right of use (ROU) asset, measured at the amount of the initial measurement of the lease liability, plus any lease payments made prior to commencement date, initial direct costs, and estimated costs of restoring the underlying asset to the condition required by the lease, less any lease incentives received. Subsequently the lease liability will increase for the accrual of interest, resulting in a constant rate of return throughout the life of the lease, and reduce when payments are made. The right of use asset will amortise to the income statement over the life of the lease. On the balance sheet, the ROU assets are included within property, plant and equipment and the lease liabilities are included within other liabilities. The Barclays Bank Group and Barclays Bank PLC apply the recognition exemption in IFRS 16 for leases with a term not exceeding 12 months. For these leases the lease payments are recognised as an expense on a straight line basis over the lease term unless another systematic basis is more appropriate. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 330 | ## Notes to the financial statements ## Assets at amortised cost and other investments When the Barclays Bank Group or Barclays Bank PLC are the lessor, the lease must be classified as either a finance lease or an operating lease. A finance lease is a lease which confers substantially all the risks and rewards of the leased assets on the lessee. An operating lease is a lease where substantially all of the risks and rewards of the leased asset remain with the lessor. As lessors The Barclays Bank Group and Barclays Bank PLC do not have any material operating and finance leases as lessors. As lessees The Barclays Bank Group and Barclays Bank PLC lease various offices, branches and other premises under non-cancellable lease arrangements to meet their operational business requirements. In some instances, the Barclays Bank Group or Barclays Bank PLC will sublease property to third parties when it is no longer needed to meet business requirements. Currently, the Barclays Bank Group and Barclays Bank PLC do not have any material subleasing arrangements. ROU asset balances relate to property leases only. Refer to Note 18 for the carrying amount of ROU assets. The Barclays Bank Group and Barclays Bank PLC have not recognised any expenses related to short term leases during the current and previous year. | | | | | --- | --- | --- | | | | | | Lease liabilities | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | As at 1 January | 280 | 496 | | Interest expense | 29 | 21 | | New leases | 11 | 9 | | Disposals | — | (1) | | Cash payments1 | (73) | (265) | | Exchange and other movements2 | 295 | 20 | | As at 31 December (see Note 21) | 542 | 280 | | | | | | --- | --- | --- | | | | | | Lease liabilities | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | As at 1 January | 51 | 239 | | Interest expense | 3 | 10 | | New leases | 10 | 9 | | Disposals | — | (1) | | Cash payments1 | (14) | (214) | | Exchange and other movements | 12 | 8 | | As at 31 December (see Note 21) | 62 | 51 | Note 1Cash payments in 2023 include a one time lease liability payment of £182m related to a structural cost action in relation to the real estate review. 2Exchange and other movements include modification related to a lease extension by ~91 years. The table below sets out a maturity analysis of undiscounted lease liabilities, showing the lease payments after the reporting date. | | | | | --- | --- | --- | | | | | | Undiscounted lease liabilities maturity analysis | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | Not more than one year | 70 | 62 | | One to two years | 66 | 55 | | Two to three years | 61 | 49 | | Three to four years | 46 | 43 | | Four to five years | 40 | 28 | | Five to ten years | 130 | 72 | | Greater than ten years | 3,550 | 16 | | Total undiscounted lease liabilities as at 31 December | 3,963 | 325 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 331 | ## Notes to the financial statements ## Assets at amortised cost and other investments | | | | | --- | --- | --- | | | | | | Undiscounted lease liabilities maturity analysis | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | Not more than one year | 15 | 12 | | One to two years | 13 | 12 | | Two to three years | 11 | 9 | | Three to four years | 7 | 5 | | Four to five years | 4 | 3 | | Five to ten years | 20 | 8 | | Greater than ten years | 5 | 6 | | Total undiscounted lease liabilities as at 31 December | 75 | 55 | During the year, Barclays had a lease modification for property "New York, 745 7th Avenue" wherein there is an extension of lease term by ~91 years, resulting in increase in the above stated undiscounted lease liabilities. In addition to the cash flows identified above, the Barclays Bank Group and Barclays Bank PLC are exposed to: • Variable lease payments: This variability will typically arise from either inflation index instruments or market-based pricing adjustments. Currently, Barclays Bank Group has 38 leases (2023 : 49 leases) out of the total 103 leases (2023: 94 leases) which have variable lease payment terms based on market based pricing adjustments. Of the gross cash flows identified above, £3,855m (2023: £229m ) is attributable to leases with some degree of variability predominantly linked to market based pricing adjustments. Currently, Barclays Bank PLC has 19 leases (2023: 26 leases) out of the total 43 leases (2023: 40 leases) which have variable lease payment terms based on market based pricing adjustments. Of the gross cash flows identified above, £51m (2023: £30m) is attributable to leases with some degree of variability predominantly linked to market based pricing adjustments. • Extension and termination options: The table above represents the Barclays Bank Group’s and the Barclays Bank PLC’s best estimate of future cash outflows for leases, including assumptions regarding the exercising of contractual extension and termination options. The above gross cash flows have been reduced by £9m (2023: £429m ) and £9m (2023 : £9m) respectively for leases where the Barclays Bank Group and the Barclays Bank PLC are highly expected to exercise an early termination option. The above gross cash flows have been increased by £3,638m, of which £1,859m (2023: £nil) and £14m (2023: £nil) respectively for leases where the Barclays Bank Group and the Barclays Bank PLC are highly expected to exercise an extension option. The Barclays Bank Group and Barclays Bank PLC do not have any restrictions or covenants imposed by the lessor on its property leases which restrict its businesses. 20 Goodwill and intangible assets Accounting for goodwill and intangible assets ![]() Goodwill Goodwill arising on the acquisition of subsidiaries represents the excess of the fair value of the purchase consideration over the fair value of the Barclays Bank Group’s share of the assets acquired and the liabilities and contingent liabilities assumed on the date of the acquisition. Goodwill is reviewed annually for impairment, or more frequently when there are indications that impairment may have occurred. The test involves comparing the carrying value of the cash generating unit (CGU) including goodwill with the present value of the pre-tax cash flows, discounted at a rate of interest that reflects the inherent risks, of the CGU to which the goodwill relates, or the CGUs fair value if this is higher. Intangible assets Intangible assets are initially recognised when they are separable or arise from contractual or other legal rights, the cost can be measured reliably and, in the case of intangible assets not acquired in a business combination, where it is probable that future economic benefits attributable to the assets will flow from their use. For internally generated intangible assets, only costs incurred during the development phase are capitalised. Expenditure in the research phase is expensed when it is incurred. Intangible assets are stated at cost (which is, in the case of assets acquired in a business combination, the acquisition date fair value) less accumulated amortisation and provisions for impairment, if any, and are amortised over their useful lives in a manner that reflects the pattern to which they contribute to future cash flows, generally using the amortisation periods set out below: | | | | --- | --- | | | | | Annual rates in calculating amortisation | Amortisation period | | Goodwill | Not amortised | | Internally generated software1 | 12 months to 6 years | | Other software | 12 months to 6 years | | Customer lists | 12 months to 25 years | | Licences and other | 12 months to 25 years | Note 1Exceptions to the above period relate to useful lives of certain core banking platforms that are assessed individually and, if appropriate, amortised over longer periods ranging from 10 years to 15 years. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 332 | ## Notes to the financial statements ## Assets at amortised cost and other investments Intangible assets are reviewed for impairment when there are indications that impairment may have occurred. Intangible assets not yet ![]() available for use are reviewed annually for impairment. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Intangible assets | | | | | | | Goodwill | Internally generated software | Other software | Customer lists | Licences and other | Total | | | £m | £m | £m | £m | £m | £m | | Barclays Bank Group | | | | | | | | Cost | | | | | | | | As at 1 January 2024 | 335 | 1,266 | 73 | 1,477 | 128 | 3,279 | | Additions | 263 | 366 | 1 | — | 66 | 696 | | Disposals1 | — | (131) | (10) | — | — | (141) | | Exchange and other movements | 9 | (162) | 1 | (315) | 3 | (464) | | As at 31 December 2024 | 607 | 1,339 | 65 | 1,162 | 197 | 3,370 | | Accumulated amortisation and impairment | | | | | | | | As at 1 January 2024 | (68) | (623) | (42) | (1,345) | (117) | (2,195) | | Disposals1 | — | 131 | 10 | — | — | 141 | | Amortisation charge | — | (149) | (8) | (25) | (5) | (187) | | Impairment charge | — | (2) | — | — | — | (2) | | Exchange and other movements | — | (4) | (1) | 305 | (2) | 298 | | As at 31 December 2024 | (68) | (647) | (41) | (1,065) | (124) | (1,945) | | Net book value | 539 | 692 | 24 | 97 | 73 | 1,425 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Goodwill | Internally generated software | Other software | Customer lists | Licences and other | Total | | | £m | £m | £m | £m | £m | £m | | Barclays Bank Group | | | | | | | | Cost | | | | | | | | As at 1 January 2023 | 345 | 1,477 | 91 | 1,562 | 956 | 4,431 | | Additions | — | 310 | 23 | — | 4 | 337 | | Disposals1 | — | (325) | (13) | — | (2) | (340) | | Exchange and other movements | (10) | (196) | (28) | (85) | (830) | (1,149) | | As at 31 December 2023 | 335 | 1,266 | 73 | 1,477 | 128 | 3,279 | | Accumulated amortisation and impairment | | | | | | | | As at 1 January 2023 | (68) | (787) | (49) | (1,382) | (480) | (2,766) | | Disposals1 | — | 325 | 13 | — | 2 | 340 | | Amortisation charge | — | (163) | (9) | (39) | (48) | (259) | | Impairment charge | — | (40) | — | — | — | (40) | | Exchange and other movements | — | 42 | 3 | 76 | 409 | 530 | | As at 31 December 2023 | (68) | (623) | (42) | (1,345) | (117) | (2,195) | | Net book value | 267 | 643 | 31 | 132 | 11 | 1,084 | Notes 1Disposals pertain to fully amortised assets which are not in use. In 2024, Goodwill has increased in the year by £263m due to the acquisition of Luxury Card's US.  Exchange and other movements for the year ended 31 December 2024 includes the reclassification of a co-branded cards portfolio to assets held for sale of £338m and accumulated amortisation of £326m from intangibles to assets held for sale. In 2023, the Barclays Bank Group reclassified assets with a total net book value of £412m recognised on balance sheet relating to sign-on bonus payments made to co-brand credit card partners from Intangible Assets (Licences and other) to Other Assets. This change in classification has been made to more appropriately reflect the nature of the assets. The German Consumer Finance business moved to assets held for sale during 2023 which resulted in an impairment of Intangible assets of £32m. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 333 | ## Notes to the financial statements ## Assets at amortised cost and other investments | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Intangible assets | | | | | | | Goodwill | Internally generated software | Other software | Customer lists | Licences and other | Total | | | £m | £m | £m | £m | £m | £m | | Barclays Bank PLC | | | | | | | | Cost | | | | | | | | As at 1 January 2024 | 164 | 26 | 2 | 12 | 23 | 227 | | Additions | — | — | — | — | — | — | | Disposals | — | — | — | — | — | — | | Exchange and other movements | — | — | — | — | — | — | | As at 31 December 2024 | 164 | 26 | 2 | 12 | 23 | 227 | | Accumulated amortisation and impairment | | | | | | | | As at 1 January 2024 | (69) | (26) | (1) | (11) | (16) | (123) | | Disposals | — | — | — | — | — | — | | Amortisation charge | — | — | — | — | — | — | | Exchange and other movements | — | — | — | — | — | — | | As at 31 December 2024 | (69) | (26) | (1) | (11) | (16) | (123) | | Net book value | 95 | — | 1 | 1 | 7 | 104 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Goodwill | Internally generated software | Other software | Customer lists | Licences and other | Total | | | £m | £m | £m | £m | £m | £m | | Barclays Bank PLC | | | | | | | | Cost | | | | | | | | As at 1 January 2023 | 164 | 27 | 3 | 12 | 24 | 230 | | Additions | — | — | — | — | — | — | | Disposals | — | — | — | — | — | — | | Exchange and other movements | — | (1) | (1) | — | (1) | (3) | | As at 31 December 2023 | 164 | 26 | 2 | 12 | 23 | 227 | | Accumulated amortisation and impairment | | | | | | | | As at 1 January 2023 | (69) | (25) | (1) | (11) | (17) | (123) | | Disposals | — | — | — | — | — | — | | Amortisation charge | — | (2) | — | — | — | (2) | | Exchange and other movements | — | 1 | — | — | 1 | 2 | | As at 31 December 2023 | (69) | (26) | (1) | (11) | (16) | (123) | | As at Net book value | 95 | — | 1 | 1 | 7 | 104 | Goodwill Goodwill is allocated to business operations according to business segments as follows: | | | | | | --- | --- | --- | --- | | | | | | | | Barclays Bank Group | | | | | 2024 | 20231 | | | | £m | £m | | | Barclays Private Bank and Wealth Management | 95 | 95 | | | Barclays US Consumer Bank | 444 | 172 | | | Total net book value of goodwill | 539 | 267 | | | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 20231 | | | £m | £m | | Barclays Private Bank and Wealth Management | 95 | 95 | | Total net book value of goodwill | 95 | 95 | Notes 1The 2023 comparatives are re-presented to align to the segmental reporting under the new operating divisions announced as part of the 20 February 2024 Investor Update. The Goodwill was previously disclosed under Consumer Cards and Payments. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 334 | ## Notes to the financial statements ## Assets at amortised cost and other investments 2024 impairment review The 2024 impairment review was performed during Q4 2024, with the approach and results of this analysis set out below. Determining the carrying value of CGUs The carrying value for each CGU is the sum of the tangible equity, goodwill and intangible asset balances associated with that CGU. The Barclays Bank Group manages the assets and liabilities of its CGUs with reference to the tangible equity of the respective businesses. That tangible equity is derived from the level of risk weighted assets (RWAs) and capital required to be deployed in the CGU and therefore reflects its relative risk, as well as the level of capital that management considers a market participant would be required to hold and retain to support business growth. Goodwill is initially allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the acquisition that generated it. Goodwill is only reallocated if there is a change in its use or when reporting structures are altered in a way that changes the composition of one or more cash-generating units to which goodwill has been allocated. As a result of the changes in business operating segments announced in the 20 February 2024 Barclays PLC Investor Update the goodwill previously allocated to the Consumer, Cards & Payments CGU has been reallocated to the US Consumer Bank CGU with the 2023 comparatives re-presented. Cash flows The five-year cash flows used in the calculation of value in use are based on the formally agreed medium-term plans approved by the Board. These are prepared using macroeconomic assumptions which management considers reasonable and supportable, and reflect business agreed initiatives for the forecast period. Discount rates IAS 36 requires that the discount rate used in a value in use calculation reflects the pre-tax rate an investor would require if they were to choose an investment that would generate similar cash flows to those that the entity expects to generate from the asset. In determining the discount rate, management identified the cost of equity associated with market participants that closely resemble the Barclays Bank Group's CGUs. The cost of equity has been used as the discount rate in the impairment assessment and applied to the post tax cash flows of the CGU. This post-tax method incorporates the impact of changing tax rates on the cash flows and is expected to produce the same VIU result as a pre-tax method adjusted for varying tax rates. Using the resultant VIU the equivalent pre-tax discount rates have been calculated. The cost of equity rate used for all CGUs in this year’s calculation has been increased to reflect the relative volatility of Barclays PLC’s stock price versus the average of our peers. The range of equivalent pre-tax discount rates applicable across the CGUs range from 14.5% to 18.5% (2023: 14.7% to 17.2%). Terminal growth rate The terminal growth rate is used to estimate the effect of projecting cash flows to the end of an asset’s useful economic life. It is management’s judgement that the cash flows associated with the CGUs will grow in line with the major economies in which the Barclays Bank Group operates. The UK inflation rate is used as an approximation for the future growth rates. The terminal growth rate used is 2.0% (2023: 2.0%). Outcome of goodwill and intangibles review Based on management’s plans and assumptions the value in use exceeds the carrying value of the CGUs and no goodwill impairment has been indicated by the 2024 impairment review.  The CGUs have been aligned to the changes in business operating segments announced in the 20 February 2024 Barclays PLC Investor Update and the 2023 comparatives re-presented. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Cash generating unit | Tangible equity | Goodwill | Intangibles | Carrying value | Value in use | Value in use exceeding carrying value 2024 | Value in use exceeding carrying value 2023 | | | £m | £m | £m | £m | £m | £m | £m | | Barclays Private Bank and Wealth Management | 894 | 95 | 9 | 998 | 3,702 | 2,704 | 2,884 | | Barclays US Consumer Bank | 2,763 | 415 | 458 | 3,636 | 3,989 | 353 | 1,175 | | Total | 3,657 | 510 | 467 | 4,634 | 7,691 | 3,057 | 4,059 | Sensitivity of key judgements The CGUs are sensitive to possible adverse changes in the key assumptions that support the recoverable amount: Cash flows: The medium-term plans used to determine the cash flows used in the VIU calculation rely on macroeconomic forecasts, including interest rates, GDP and unemployment, and forecast levels of customers activity. Interest rate assumptions impact planned cash flows from both customer income and structural hedge contributions and therefore cash flow expectations are highly sensitive to movements in the yield curve. The cash flows also contain assumptions with regard to the prudential and financial conduct regulatory environment which may be subject to change. A sensitivity analysis has been provided to illustrate the impact of a 10% reduction in cash flows. Discount rate: The discount rate should reflect the market risk-free rate adjusted for the inherent risks of the business it is applied to. Management has identified discount rates for comparable businesses and consider these to be a reasonable estimate of a suitable market rate for the profile of the business unit being tested. The risk that these discount rates may not be appropriate is quantified below by showing the impact of a 100bps increase 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 | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 335 | ## Notes to the financial statements ## Assets at amortised cost and other investments data may not be appropriate for its determination is quantified below and shows the impact of a 100bps decrease in the terminal growth rate is shown. 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 as a result of a change to the prudential regulatory environment or the risk profile of the business. The impact of a 50bps 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: | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | Reduction in headroom | | | | Change required to reduce headroom to zero | | | | | Cash generating unit | Carrying value | Value in use | Value in use exceeding carrying value | Discount rate | Terminal growth rate | 100bps increase in the discount rate | 100bps decrease in terminal growth rate | 50bps increase to allocated capital rate | 10% reduction in forecasted cash flows | Discount rate | Terminal growth rate | Allocated capital rate | Cash flows | | | £m | £m | £m | % | % | £m | £m | £m | £m | % | % | % | % | | Barclays US Consumer Bank | 3,636 | 3,989 | 353 | 14.5 | 2.0 | (516) | (393) | (234) | (638) | 0.7 | (0.9) | 0.8 | (5.5) | Other intangible assets Determining the estimated useful lives of intangible assets (such as those arising from contractual relationships) requires an analysis of circumstances. The assessment of whether an asset is exhibiting indicators of impairment as well as the calculation of impairment, which requires the estimate of future cash flows and fair values less costs to sell, also requires the preparation of cash flow forecasts and fair values for assets that may not be regularly bought and sold. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 336 | ## Notes to the financial statements ## Accruals, provisions, contingent liabilities and legal proceedings The notes included in this section focus on the Barclays Bank Group’s accruals, provisions and contingent liabilities. Provisions are ![]() recognised for present obligations arising as consequences of past events where it is probable that a transfer of economic benefit will be necessary to settle the obligation, and it can be reliably estimated. Contingent liabilities reflect potential liabilities that are not recognised on the balance sheet. 21 Other liabilities | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | Accruals and deferred income | 3,035 | 2,695 | | Other creditors | 4,319 | 5,969 | | Items in the course of collection due to other banks | 8 | 40 | | Lease liabilities (refer to Note 19) | 542 | 280 | | Other liabilities | 7,904 | 8,984 | | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | Accruals and deferred income | 1,209 | 1,096 | | Other creditors | 3,177 | 4,542 | | Items in the course of collection due to other banks | 8 | 19 | | Lease liabilities (refer to Note 19) | 62 | 51 | | Other liabilities | 4,456 | 5,708 | 22 Provisions Accounting for provisions ![]() Provisions are recognised for present obligations arising as consequences of past events where it is more likely than not that a transfer of economic benefit will be necessary to settle the obligation, which can be reliably estimated. Critical accounting estimates and judgements The financial reporting of provisions involves a significant degree of judgement and is complex. Identifying whether a present obligation exists and estimating the probability, timing, nature and quantum of the outflows that may arise from past events requires judgements to be made based on the specific facts and circumstances relating to individual events and often requires specialist professional advice. When matters are at an early stage, accounting judgements and estimates can be difficult because of the high degree of uncertainty involved. Management continues to monitor matters as they develop to re-evaluate on an ongoing basis whether provisions should be recognised, however there can remain a wide range of possible outcomes and uncertainties, particularly in relation to legal, competition and regulatory matters, and as a result it is often not practicable to make meaningful estimates even when matters are at a more advanced stage. The amount that is recognised as a provision can also be very sensitive to the assumptions made in calculating it. This gives rise to a large range of potential outcomes which require judgement in determining an appropriate provision level. See Note 24 for more detail of legal, competition and regulatory matters. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 337 | ## Notes to the financial statements ## Accruals, provisions, contingent liabilities and legal proceedings | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Redundancy and restructuring | Customer redress | Legal, competition and regulatory matters | Sundry provisions | Total | | | £m | £m | £m | £m | £m | | Barclays Bank Group | | | | | | | As at 1 January 2024 | 126 | 21 | 59 | 138 | 344 | | Additions | 164 | 3 | 103 | 56 | 326 | | Amounts utilised | (168) | (5) | (100) | (8) | (281) | | Unused amounts reversed | (34) | (8) | (5) | (19) | (66) | | Exchange and other movements | (1) | 2 | 1 | (9) | (7) | | As at 31 December 2024 | 87 | 13 | 58 | 158 | 316 | | Undrawn contractually committed facilities and guarantees1 | | | | | | | As at 1 January 2024 | | | | | 473 | | Net change in expected credit loss provision and other movements | | | | | (53) | | As at 31 December 2024 | | | | | 420 | | Total provisions | | | | | | | As at 1 January 2024 | | | | | 817 | | As at 31 December 2024 | | | | | 736 | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | Redundancy and restructuring | Customer redress | Legal, competition and regulatory matters | Sundry provisions | Total | | | £m | £m | £m | £m | £m | | Barclays Bank PLC | | | | | | | As at 1 January 2024 | 45 | 19 | 32 | 29 | 125 | | Additions | 66 | 3 | 70 | 9 | 148 | | Amounts utilised | (61) | (5) | (73) | (5) | (144) | | Unused amounts reversed | (10) | (7) | — | (8) | (25) | | Exchange and other movements | — | 2 | 1 | (3) | — | | As at 31 December 2024 | 40 | 12 | 30 | 22 | 104 | | Undrawn contractually committed facilities and guarantees1 | | | | | | | As at 1 January 2024 | | | | | 352 | | Net change in expected credit loss provision and other movements | | | | | (21) | | As at 31 December 2024 | | | | | 331 | | Total provisions | | | | | | | As at 1 January 2024 | | | | | 477 | | As at 31 December 2024 | | | | | 435 | Note 1 Undrawn contractually committed facilities and guarantees provisions are accounted for under IFRS 9. Further analysis of the movement in the expected credit loss provision is disclosed within the 'Movement in gross exposures and impairment allowance including provisions for loan commitments and financial guarantees' table on page [166](#iba890cb984724ea78080089b3fd6bd5b_3196) to [171](#ib8fe5716eeef40e3a8012bec6c07634a_26-8-1-1-2922537) . Provisions expected to be recovered or settled within no more than 12 months after 31 December 2024 for Barclays Bank Group were £663m ( 2023: £717m) and for Barclays Bank PLC were £421m (2023: £458m). Redundancy and restructuring These provisions comprise the estimated cost of restructuring, including redundancy costs where an obligation exists. For example, when the Barclays Bank Group has a detailed formal plan for restructuring a business and has raised valid expectations in those affected by the restructuring by announcing its main features or starting to implement the plan. Customer redress Customer redress provisions comprise the estimated cost of making redress payments to customers, clients and counterparties for losses or damages associated with inappropriate judgement in the execution of the Barclays Bank Group’s business activities. Legal, competition and regulatory matters The Barclays Bank Group is engaged in various legal proceedings, both in the UK and a number of other overseas jurisdictions, including the US. For further information in relation to legal proceedings and discussion of the associated uncertainties, please refer to Note 24. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 338 | ## Notes to the financial statements ## Accruals, provisions, contingent liabilities and legal proceedings Sundry provisions This category includes provisions that do not fit into any of the other categories, such as fraud losses and dilapidation provisions. Undrawn contractually committed facilities and guarantees Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment allowance is allocated to the drawn exposure to the extent that the allowance does not exceed the exposure as ECL is not reported separately. Any excess is reported on the liability side of the balance sheet as a provision. For wholesale portfolios the impairment allowance on the undrawn exposure is reported on the liability side of the balance sheet as a provision. For further information, refer to the Credit Risk section for loan commitments and financial guarantees on pages [166](#iba890cb984724ea78080089b3fd6bd5b_3196) to [171](#ib8fe5716eeef40e3a8012bec6c07634a_26-8-1-1-2922537). 23 Contingent liabilities and commitments Accounting for contingent liabilities ![]() Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events and present obligations where the transfer of economic resources is uncertain or cannot be reliably measured. Contingent liabilities are not recognised on the balance sheet but are disclosed unless the likelihood of an outflow of economic resources is remote. The following table summarises the nominal principal amount of contingent liabilities and commitments which are not recorded on-balance sheet: | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | Guarantees and letters of credit pledged as collateral security | 16,814 | 17,578 | | Performance guarantees, acceptances and endorsements | 9,751 | 9,251 | | Total contingent liabilities and financial guarantees | 26,565 | 26,829 | | Of which: Financial guarantees and letters of credit carried at fair value | 988 | 1,266 | | | | | | Documentary credits and other short-term trade related transactions | 1,433 | 2,352 | | Standby facilities, credit lines and other commitments | 352,344 | 335,583 | | Total commitments1 | 353,777 | 337,935 | | Of which: Loan commitments carried at fair value | 15,350 | 15,203 | Note 1 Includes exposures relating to financial assets classified as assets held for sale. | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | Guarantees and letters of credit pledged as collateral security | 37,375 | 58,136 | | Performance guarantees, acceptances and endorsements | 11,131 | 10,817 | | Total contingent liabilities and financial guarantees | 48,506 | 68,953 | | Of which: Financial guarantees and letters of credit carried at fair value | 893 | 1,264 | | | | | | Documentary credits and other short-term trade related transactions | 1,349 | 2,298 | | Standby facilities, credit lines and other commitments | 220,833 | 204,429 | | Total commitments | 222,182 | 206,727 | | Of which: Loan commitments carried at fair value | 15,024 | 13,225 | Provisions for expected credit losses held against contingent liabilities and commitments equal £420m (2023 : £473m) for Barclays Bank Group and £331m ( 2023 : £352m ) for Barclays Bank PLC and are reported in Note 22. Further details on contingent liabilities relating to legal and competition and regulatory matters can be found in Note 24. 24 Legal, competition and regulatory matters The Barclays Bank Group faces legal, competition and regulatory challenges, many of which are beyond our control. The extent of the impact of these matters cannot always be predicted but may materially impact our operations, financial results, condition and prospects. Matters arising from a set of similar circumstances can give rise to either a contingent liability or a provision, or both, depending on the relevant facts and circumstances. The recognition of provisions in relation to such matters involves critical accounting estimates and judgements in accordance with the relevant accounting policies applicable to Note 22, Provisions. We have not disclosed an estimate of the potential financial impact or effect on the Barclays Bank Group of contingent liabilities where it is not currently practicable to do so. Various matters detailed in this note seek damages of an unspecified amount. While certain matters specify the damages claimed, such claimed amounts do not necessarily reflect the Barclays Bank Group’s potential financial exposure in respect of those matters. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 339 | ## Notes to the financial statements ## Accruals, provisions, contingent liabilities and legal proceedings Investigations into certain advisory services agreements and other proceedings FCA proceedings In 2008, Barclays Bank PLC and Qatar Holdings LLC entered into two advisory service agreements (the Agreements). The Financial Conduct Authority (FCA) conducted an investigation into whether the Agreements may have related to Barclays PLC’s capital raisings in June and November 2008 (the Capital Raisings) and therefore should have been disclosed in the announcements or public documents relating to the Capital Raisings. In 2013, the FCA issued warning notices (the Warning Notices) finding that Barclays PLC and Barclays Bank PLC acted recklessly and in breach of certain disclosure-related listing rules, and that Barclays PLC was also in breach of Listing Principle 3. The financial penalty provided in the Warning Notices was £50m. Barclays PLC and Barclays Bank PLC contested the findings. In 2022, the FCA’s Regulatory Decisions Committee (RDC) issued decision notices finding that Barclays PLC and Barclays Bank PLC breached certain disclosure-related listing rules. The RDC also found that in relation to the disclosures made in the Capital Raising of November 2008, Barclays PLC and Barclays Bank PLC acted recklessly, and that Barclays PLC breached Listing Principle 3. The RDC upheld the combined penalty of £50m on Barclays PLC and Barclays Bank PLC, the same penalty as in the Warning Notices. Barclays PLC and Barclays Bank PLC referred the RDC’s findings to the Upper Tribunal for reconsideration. In November 2024, Barclays PLC and Barclays Bank PLC withdrew the reference to the Upper Tribunal and agreed a settlement with the FCA for a combined penalty of £40m without accepting the FCA’s findings. This matter is now concluded. Other proceedings In 2023, Barclays Bank PLC received requests for arbitration from two Jersey special purpose vehicles connected to PCP International Finance Limited asserting claims in relation to the October 2008 capital raising. Barclays Bank PLC is defending these claims. Civil actions related to LIBOR and other benchmarks Various individuals and corporates in a range of jurisdictions have threatened or brought civil actions against the Barclays Bank Group and other banks in relation to the alleged manipulation of LIBOR and/or other benchmarks. US civil actions related to LIBOR Multiple civil actions have been filed in the US against the Barclays Bank Group and other banks alleging manipulation of USD LIBOR, Sterling LIBOR and the LIBOR benchmark that was administered by the Intercontinental Exchange Inc. and certain of its affiliates (ICE LIBOR). With respect to USD LIBOR, two actions alleging that Barclays Bank PLC, Barclays Capital Inc. (BCI) and other financial institutions individually and collectively violated provisions of the US Sherman Antitrust Act (Antitrust Act), the US Commodity Exchange Act (CEA), the US Racketeer Influenced and Corrupt Organizations Act (RICO), the US Securities Exchange Act of 1934 and various state laws by manipulating USD LIBOR rates remain pending in the Southern District of New York (SDNY). Both seek unspecified damages. Barclays Bank PLC has moved for summary judgment in these actions, and briefing on that motion was completed in January 2025. Barclays Bank PLC has settled two other actions asserting substantially similar claims in 2023 and 2024. The financial impact of these settlements is not material to the Barclays Bank Group’s operating results, cash flows or financial position. With respect to Sterling LIBOR, consolidated class actions filed in the SDNY against Barclays Bank PLC, BCI and other Sterling LIBOR panel banks alleging, among other things, manipulation of the Sterling LIBOR rate in violation of the Antitrust Act, CEA and RICO, were dismissed in 2018. Oral argument on the plaintiffs’ appeal of that dismissal was heard by the US Court of Appeals for the Second Circuit (Second Circuit) in April 2024. With respect to ICE LIBOR, in August 2020, a group of individual plaintiffs in the US District Court for the Northern District of California on behalf of individual borrowers and consumers of loans and credit cards with variable interest rates linked to USD ICE LIBOR brought an action against Barclays Bank PLC and other financial institutions alleging Antitrust Act violations. The defendants’ motion to dismiss the case was granted in 2022. The US Court of Appeals for the Ninth Circuit affirmed the dismissal in December 2024. Non-US benchmarks civil actions There remains one claim, issued in 2017, against Barclays Bank PLC and other banks in the UK in connection with alleged manipulation of LIBOR. Proceedings have also been brought in a number of other jurisdictions in Europe and Israel relating to alleged manipulation of LIBOR and EURIBOR. Foreign exchange civil actions Various individuals and corporates in a range of jurisdictions have threatened or brought civil actions against the Barclays Bank Group and other banks in relation to alleged manipulation of foreign exchange markets. US retail basis civil action In 2015, a putative class action was filed against several international banks, including Barclays PLC and BCI, on behalf of a proposed class of individuals who exchanged currencies on a retail basis at bank branches (Retail Basis Claims). The SDNY has ruled that the Retail Basis Claims are not covered by the settlement agreement in the consolidated FX action. The court subsequently dismissed all Retail Basis Claims against the Barclays Bank Group and all other defendants. The plaintiffs filed an amended complaint. The defendants’ motion for summary judgment was granted in 2023, dismissing the plaintiffs’ remaining claims. The plaintiffs appealed the decision and the dismissal was upheld by the appellate court in May 2024. The plaintiffs’ motion for reconsideration was denied. The plaintiffs did not seek US Supreme Court review and the matter is now concluded. Non-US FX civil actions Legal proceedings have been brought or are threatened against Barclays PLC, Barclays Bank PLC, BCI and Barclays Execution Services Limited (BX) in connection with alleged manipulation of foreign exchange in the UK, a number of other jurisdictions in Europe, Israel, Brazil and Australia. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 340 | ## Notes to the financial statements ## Accruals, provisions, contingent liabilities and legal proceedings The above-mentioned proceedings include two purported class actions filed against Barclays PLC, Barclays Bank PLC, BX, BCI and other financial institutions in the UK Competition Appeal Tribunal (CAT) in 2019. The second class action has now been discontinued. The CAT refused to certify the remaining claim in 2022 and, in 2023, the Court of Appeal overturned the CAT’s decision and found that the claim should be certified on an opt-out basis. Barclays and the other financial institutions involved have obtained permission to appeal this decision to the UK Supreme Court. Metals-related civil actions A US civil complaint alleging manipulation of the price of silver in violation of the CEA, the Antitrust Act and state antitrust and consumer protection laws was brought by a proposed class of plaintiffs against a number of banks, including Barclays Bank PLC, BCI and BX, and transferred to the SDNY. The complaint was dismissed against these Barclays entities and certain other defendants in 2018, and against the remaining defendants in 2023. The plaintiffs have appealed the dismissal of the complaint against all defendants. Civil actions have also been filed in Canadian courts against Barclays PLC, Barclays Bank PLC, Barclays Capital Canada Inc. and BCI on behalf of proposed classes of plaintiffs alleging manipulation of gold and silver prices. US residential mortgage related civil action There remains one US Residential Mortgage-Backed Securities (RMBS) related civil action arising from unresolved repurchase requests submitted by Trustees for certain RMBS, alleging breaches of various loan-level representations and warranties (R&Ws) made by Barclays Bank PLC and/or a subsidiary acquired in 2007. Barclays’ motion to dismiss the action was denied in 2023. The parties appealed the decision and, in January 2025, the appellate court reversed the lower court’s decision and dismissed the action. The plaintiff has the right to request review by the New York State Court of Appeals. Government and agency securities civil actions Treasury auction securities civil actions Consolidated putative class action complaints filed in US federal court against Barclays Bank PLC, BCI and other financial institutions under the Antitrust Act and state common law allege that the defendants (i) conspired to manipulate the US Treasury securities market and/or (ii) conspired to prevent the creation of certain platforms by boycotting or threatening to boycott such trading platforms. The court dismissed the consolidated action in 2021. The plaintiffs filed an amended complaint. The defendants’ motion to dismiss the amended complaint was granted in 2022. The plaintiffs appealed this decision, and in February 2024 the appellate court affirmed the dismissal. The plaintiffs did not seek US Supreme Court review, thereby concluding the matter. In addition, certain plaintiffs have filed a related, direct action against BCI and certain other financial institutions, alleging that defendants conspired to fix and manipulate the US Treasury securities market in violation of the Antitrust Act, the CEA and state common law. This action remains stayed. Supranational, Sovereign and Agency bonds civil actions Civil antitrust actions have been filed in the Federal Court of Canada in Toronto against Barclays Bank PLC, BCI, BX, Barclays Capital Securities Limited and Barclays Capital Canada Inc. and other financial institutions alleging that the defendants conspired to fix prices and restrain competition in the market for US dollar-denominated Supranational, Sovereign and Agency bonds. The parties have reached a settlement, which has received final court approval and has been paid. The financial impact of the settlement is not material to the Barclays Bank Group’s operating results, cash flows or financial position. Variable Rate Demand Obligations civil actions Civil actions have been filed against Barclays Bank PLC and BCI and other financial institutions alleging the defendants conspired or colluded to artificially inflate interest rates set for Variable Rate Demand Obligations (VRDOs). VRDOs are municipal bonds with interest rates that reset on a periodic basis, most commonly weekly. An action in state court has been filed by private plaintiffs on behalf of the state of California and the matter is in discovery. Three putative class action complaints have been consolidated in the SDNY. In the consolidated SDNY class action, certain of the plaintiffs’ claims were dismissed in 2020 and 2022 and the plaintiffs’ motion for class certification was granted in 2023, which means the case may proceed as a class action. The defendants are appealing this decision. Odd-lot corporate bonds antitrust class action In 2020, BCI, together with other financial institutions, were named as defendants in a putative class action in the US. The complaint alleges a conspiracy to boycott developing electronic trading platforms for odd-lots and price fixing. The plaintiffs demand unspecified money damages. The defendants’ motion to dismiss was granted in 2021, which the plaintiffs appealed. In July 2024, the Second Circuit vacated the judgment and remanded the case to the SDNY, where the plaintiffs filed a second amended complaint in September 2024. The defendants have filed a motion to dismiss. Credit Default Swap civil action A putative antitrust class action is pending in New Mexico federal court against Barclays Bank PLC, BCI and various other financial institutions. The plaintiffs, the New Mexico State Investment Council and certain New Mexico pension funds, allege that the defendants conspired to manipulate the benchmark price used to value Credit Default Swap (CDS) contracts at settlement (i.e. the CDS final auction price). The plaintiffs allege violations of US antitrust laws and the CEA, and unjust enrichment under state law. The defendants’ motion to dismiss was denied in 2023. In January 2024, the SDNY ruled that settlement in an earlier CDS antitrust litigation bars these plaintiffs from asserting claims based on conduct occurring before 30 June 2014. The plaintiffs have appealed to the Second Circuit. Interest rate swap and credit default swap US civil actions Barclays PLC, Barclays Bank PLC and BCI, together with other financial institutions that act as market makers for interest rate swaps (IRS), are named as defendants in several antitrust actions, including one putative class action and individual actions brought by certain swap execution facilities, which are consolidated in the SDNY. The complaints allege the defendants conspired to prevent the development of | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 341 | ## Notes to the financial statements ## Accruals, provisions, contingent liabilities and legal proceedings exchanges for IRS and demand unspecified money damages. The parties have reached a settlement of the class action, which received preliminary court approval and has been paid. The financial impact of the settlement is not material to the Barclays Bank Group’s operating results, cash flows or financial position. The individual claims will proceed separately in the SDNY. In 2017, Tera Group Inc. (Tera) filed a separate civil antitrust action in the SDNY claiming that certain conduct alleged in the IRS cases also caused Tera to suffer harm with respect to the Credit Default Swaps market. In 2019, the court dismissed Tera’s claims for unjust enrichment and tortious interference but denied motions to dismiss the antitrust claims. Tera filed an amended complaint in 2020. Barclays’ motion to dismiss all claims was granted in 2023. Tera initially appealed this decision, but in September 2024, Tera declined to pursue its appeal against Barclays. In October 2024, the Second Circuit affirmed the dismissal against the remaining defendants, including Barclays, and the matter is now concluded. BDC Finance L.L.C. In 2008, BDC Finance L.L.C. (BDC) filed a complaint in the Supreme Court of the State of New York, demanding damages of $298m, alleging that Barclays Bank PLC had breached a contract in connection with a portfolio of total return swaps governed by an ISDA Master Agreement (the Master Agreement). Following a trial, the court ruled in 2018 that Barclays Bank PLC was not a defaulting party, which was affirmed on appeal. In 2021, the trial court entered judgment in favour of Barclays Bank PLC for $3.3m and as yet to be determined legal fees and costs. In 2022, the appellate court reversed the trial court’s summary judgment decision in favour of Barclays Bank PLC and remanded the case to the lower court for further proceedings. The parties filed cross-motions on the scope of trial. In January 2024, the court ruled in Barclays’ favour. In December 2024, the appellate court reversed the trial court’s judgment. Civil actions in respect of the US Anti-Terrorism Act Eight civil actions, on behalf of more than 4000 plaintiffs, were filed in US federal courts in the US District Court in the Eastern District of New York (EDNY) and SDNY against Barclays Bank PLC and a number of other banks. The complaints generally allege that Barclays Bank PLC and those banks engaged in a conspiracy to facilitate US dollar-denominated transactions for the Iranian government and various Iranian banks, which in turn funded acts of terrorism that injured or killed the plaintiffs or the plaintiffs’ family members. The plaintiffs seek to recover damages for pain, suffering and mental anguish under the provisions of the US Anti-Terrorism Act, which allow for the trebling of any proven damages. The court granted the defendants’ motions to dismiss three out of the six actions in the EDNY. The plaintiffs appealed in one action and the dismissal was affirmed, and judgment was entered, in 2023. The plaintiffs’ motion to vacate the judgment is fully briefed. The other two dismissed actions in the EDNY were consolidated into one action. The plaintiffs in that action, and in one other action in the EDNY, filed amended complaints in 2023. The two other actions in the EDNY are currently stayed. Out of the two actions in the SDNY, the court granted the defendants’ motion to dismiss the first action. That action is stayed, and the second SDNY action is stayed pending any appeal on the dismissal of the first. Shareholder derivative action In 2020, a purported Barclays shareholder filed a putative derivative action in New York state court against BCI and a number of current and former members of the Board of Directors of Barclays PLC and senior executives or employees of the Barclays Bank Group. The shareholder plaintiff filed the claim on behalf of nominal defendant Barclays PLC, alleging that the individual defendants harmed the company through breaches of their duties, including under the Companies Act 2006. The plaintiff seeks damages on behalf of Barclays PLC for the losses that Barclays PLC allegedly suffered as a result of these alleged breaches. An amended complaint was filed in 2021, which BCI and certain other defendants moved to dismiss. The motion to dismiss was granted in 2022. The plaintiff appealed the decision, and the dismissal was unanimously affirmed in 2023 by the First Judicial Department in New York. The plaintiff has appealed the First Judicial Department’s decision to the New York Court of Appeals. Derivative transactions civil action In 2021, Vestia, a Dutch housing association, brought a claim against Barclays Bank PLC in the UK High Court in relation to a series of derivative transactions entered into with Barclays Bank PLC between 2008 and 2011, seeking damages of £329m. In May 2024, Barclays Bank PLC reached a settlement whereby Barclays paid €43.5m with no acknowledgement of liability. This matter is now closed. Skilled person review in relation to historic timeshare loans and associated matters Clydesdale Financial Services Limited (CFS), which trades as Barclays Partner Finance and houses Barclays’ point-of-sale finance business, was required by the FCA to undertake a skilled person review in 2020 following concerns about historic affordability assessments for certain loans to customers in connection with timeshare purchases. The skilled person review was concluded in 2021. CFS complied fully with the skilled person review requirements, including carrying out certain remediation measures. CFS was not required to conduct a full back book review. Instead, CFS reviewed limited historic lending to ascertain whether its practices caused customer harm and is remediating any examples of harm. This work was substantially completed during 2023, utilising provisions booked to account for any remediations. The remaining provisions are expected to be utilised during early 2025. This matter is otherwise concluded. Motor finance commission arrangements In January 2024, the FCA appointed a skilled person to undertake a review of the historical use of discretionary commission arrangements and sales in the motor finance market across several firms. Barclays is co-operating fully with the FCA’s skilled person review, the outcome of which is unknown. This review follows two final decisions by the UK Financial Ombudsman Service (FOS), including one upholding a complaint against CFS in relation to commission arrangements and disclosure in the sale of motor finance products, and a number of complaints and court claims, including some against CFS. In April 2024, CFS filed a judicial review challenge in the High Court against the FOS’s decision in relation to commission arrangements and disclosure in the sale of motor finance products. In December 2024, the High Court ruled against CFS. CFS has obtained permission to appeal. Separately, in October 2024, the English Court of Appeal issued judgment against the lenders in three motor finance commissions cases. CFS is not a party to this litigation. The Supreme Court has agreed to hear an appeal of these cases, which will take place in April 2025. In light of this decision and onward appeal, the FCA has extended its pause on complaints to include all motor finance commissions, not just | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 342 | ## Notes to the financial statements ## Accruals, provisions, contingent liabilities and legal proceedings discretionary commission arrangements. CFS ceased operating in the motor finance market in late 2019. In 2020, CFS was transferred from Barclays Bank PLC to Barclays Principal Investments Ltd (BPIL), another subsidiary of Barclays PLC. Barclays Bank PLC has provided an intragroup indemnity to BPIL in respect of historic litigation and conduct matters relating to CFS. Over-issuance of securities in the US In 2022, executive management became aware that Barclays Bank PLC had issued securities materially in excess of the set amount under its US shelf registration statements. In 2022, a purported class action claim was filed in the US District Court in Manhattan seeking to hold Barclays PLC, Barclays Bank PLC and former and current executives responsible for declines in the price of Barclays PLC’s American depositary receipts, which the plaintiffs claim occurred as a result of alleged misstatements and omissions in its public disclosures. The defendants’ motion to dismiss the case was granted in part and denied in part in February 2024. The parties have reached a settlement in respect of such lawsuit, which has received preliminary court approval and has been paid. The financial impact of this settlement is not material to the Group’s operating results, cash flows or financial position. In addition, holders of a series of ETNs have brought a purported class action in federal court in New York against Barclays PLC, Barclays Bank PLC, and former and current executives and board members in the US alleging, among other things, that Barclays’ failure to disclose that these ETNs were unregistered securities misled investors and that, as a result, Barclays is liable for the holders’ alleged losses following the suspension of further sales and issuances of such series of ETNs. The plaintiffs were granted leave to amend and filed a new complaint in March 2024. Barclays has filed a motion to dismiss. In March 2024, a putative class action was filed in federal court in New York against Barclays PLC, Barclays Bank PLC and former and current executives. The plaintiff purports to bring claims on behalf of a class of short sellers, alleging that their short positions suffered substantial losses when Barclays suspended new issuances and sales of VXX ETNs as a result of the over-issuance of securities. Barclays has filed a motion to dismiss. HM Revenue & Customs (HMRC) assessments concerning UK Value Added Tax In 2018, HMRC issued notices that have the effect of either removing certain Barclays overseas subsidiaries that have operations in the UK from Barclays’ UK VAT group or preventing them from joining it. Supplies between members of a UK VAT group are generally free from VAT. The notices had both retrospective and prospective effect. Barclays appealed HMRC’s decisions to the First-Tier Tribunal (Tax Chamber) in relation to both the retrospective VAT assessments and the on-going VAT payments made since 2018. £181m of VAT (inclusive of interest) was assessed retrospectively by HMRC covering the periods 2014 to 2018, of which approximately £128m is expected to be attributed to Barclays Bank UK PLC and £53m to Barclays Bank PLC. This retrospectively assessed VAT was paid in 2018 and an asset, adjusted to reflect expected eventual recovery, is recognised. Since 2018 Barclays has paid, and recognised as an expense, VAT on intra- group supplies from the relevant subsidiaries to the members of the VAT group. In respect of the ongoing VAT payments, the court upheld HMRC’s denial of the VAT grouping in August 2024. Barclays has appealed this decision to the Upper Tribunal. FCA investigation concerning financial crime systems and controls and compliance with the Money Laundering Regulations 2007 The FCA is conducting a civil enforcement investigation into Barclays Bank UK PLC’s and Barclays Bank PLC’s compliance with the Money Laundering Regulations 2007 and the FCA’s Principles of Business and Rules relating to anti-money laundering and financial crime systems and controls. The FCA's investigation focuses primarily on the historical oversight and management of certain customers with heightened risk. Barclays has been cooperating with the investigation. UK bank levy In November 2024, HMRC updated its published guidance on the treatment of beneficiary accounts for the purposes of the exclusion of protected deposits from the UK bank levy charge. HMRC’s interpretation of the UK bank levy legislation differs from Barclays’ interpretation of the legislation, which has been applied in Barclays’ UK bank levy returns and which Barclays continues to consider is correct. In December 2024, HMRC wrote to notify Barclays of its intention to challenge this treatment. Engagement with HMRC is at an early stage and assessments have not yet been issued. General The Barclays Bank Group is engaged in various other legal, competition and regulatory matters in the UK, the US and a number of other overseas jurisdictions. It is subject to legal proceedings brought by and against the Barclays Bank Group which arise in the ordinary course of business from time to time, including (but not limited to) disputes in relation to contracts, securities, guarantees, debt collection, consumer credit, fraud, trusts, client assets, competition, data management and protection, intellectual property, money laundering, financial crime, employment, environmental and other statutory and common law issues. The Barclays Bank Group is also subject to enquiries and examinations, requests for information, audits, investigations and legal and other proceedings by regulators, governmental and other public bodies in connection with (but not limited to) consumer protection measures, measures to combat money laundering and financial crime, compliance with legislation and regulation, wholesale trading activity and other areas of banking and business activities in which the Barclays Bank Group is or has been engaged. The Barclays Bank Group is cooperating with the relevant authorities and keeping all relevant agencies briefed as appropriate in relation to these matters and others described in this note on an ongoing basis. At the present time, the Barclays Bank Group does not expect the ultimate resolution of any of these other matters to have a material adverse effect on its financial position. However, in light of the uncertainties involved in such matters and the matters specifically described in this note, there can be no assurance that the outcome of a particular matter or matters (including formerly active matters or those matters arising after the date of this note) will not be material to Barclays Bank PLC’s results, operations or cash flows for a particular period, depending on, among other things, the amount of the loss resulting from the matter(s) and the amount of profit otherwise reported for the reporting period. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 343 | ## Notes to the financial statements ## Capital instruments, equity and reserves The notes included in this section focus on the Barclays Bank Group’s loan capital and shareholders’ equity including issued share capital, retained earnings, other equity balances and interests of minority shareholders in our subsidiary entities (non-controlling interests). For more information on capital management and how the Barclays Bank Group maintains sufficient capital to meet our regulatory requirements refer to pages [147](#ia16d0659cd524c01ae655d82fa382c3d_163) to [148](#i471f993b59a845c68b482224569eaef7_9650). 25 Subordinated liabilities Accounting for subordinated liabilities ![]() Subordinated liabilities are measured at amortised cost using the effective interest method under IFRS 9, unless they are irrevocably designated at fair value through profit or loss at initial recognition because such designation eliminates or significantly reduces an accounting mismatch. Refer to Note 15 for details about accounting for liabilities designated at fair value through profit or loss. | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | At amortised cost | | | | As at 1 January | 35,903 | 38,253 | | Issuances | 11,222 | 5,986 | | Redemptions | (5,067) | (7,431) | | Other | (183) | (905) | | As at 31 December | 41,875 | 35,903 | | | | | | --- | --- | --- | | | | | | Designated at fair value (Note 15) | 537 | 579 | | Total subordinated liabilities | 42,412 | 36,482 | | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | At amortised cost | | | | As at 1 January | 35,237 | 37,656 | | Issuances | 11,143 | 5,643 | | Redemptions | (4,963) | (7,209) | | Other | (177) | (853) | | As at 31 December | 41,240 | 35,237 | | | | | | --- | --- | --- | | | | | | Designated at fair value (Note 15) | 537 | 579 | | Total subordinated liabilities | 41,777 | 35,816 | Issuances of £11,222m comprise £9,867m intra-group loans from Barclays PLC, £1,276m EUR 4.973% Fixed Rate Resetting Tier2 Subordinated Callable Notes issued to Barclays PLC and £79m USD Floating Rate Notes  issued externally by a Barclays Bank PLC subsidiary. Redemptions of £5,067m comprise £4,963m intra-group loans from Barclays PLC, £78m USD Floating Rate Notes and £26m JPY Floating Rate Notes issued externally by a Barclays Bank PLC subsidiary. Other movements predominantly comprise foreign exchange movements and fair value hedge adjustments. Subordinated liabilities include accrued interest and comprise undated and dated subordinated liabilities as follows: | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | Undated subordinated liabilities | 134 | 143 | | Dated subordinated liabilities | 42,278 | 36,339 | | Total subordinated liabilities | 42,412 | 36,482 | | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | Undated subordinated liabilities | 134 | 143 | | Dated subordinated liabilities | 41,643 | 35,673 | | Total subordinated liabilities | 41,777 | 35,816 | None of the Barclays Bank Group’s or Barclays Bank PLC's subordinated liabilities are secured. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 344 | ## Notes to the financial statements ## Capital instruments, equity and reserves | | | | | | --- | --- | --- | --- | | | | | | | Undated subordinated liabilities1 | | Barclays Bank Group | | | | | 2024 | 2023 | | | Initial call date | £m | £m | | Barclays Bank PLC externally issued subordinated liabilities | | | | | Undated Notes | | | | | 6.125% Undated Subordinated Notes | 2027 | 35 | 35 | | Loans | | | | | 5.03% Reverse Dual Currency Undated Subordinated Loan ( JPY 8,000m) | 2028 | 40 | 44 | | 5% Reverse Dual Currency Undated Subordinated Loan ( JPY 12,000m) | 2028 | 59 | 64 | | Total undated subordinated liabilities | | 134 | 143 | | | | | | | --- | --- | --- | --- | | | | | | | Undated subordinated liabilities1 | | Barclays Bank PLC | | | | | 2024 | 2023 | | | Initial call date | £m | £m | | Barclays Bank PLC externally issued subordinated liabilities | | | | | Undated Notes | | | | | 6.125% Undated Subordinated Notes | 2027 | 35 | 35 | | Loans | | | | | 5.03% Reverse Dual Currency Undated Subordinated Loan ( JPY 8,000m) | 2028 | 40 | 44 | | 5% Reverse Dual Currency Undated Subordinated Loan ( JPY 12,000m) | 2028 | 59 | 64 | | Total undated subordinated liabilities | | 134 | 143 | Note 1  Instrument values are disclosed to the nearest million. Undated subordinated liabilities Undated subordinated liabilities are issued by Barclays Bank PLC for the development and expansion of their businesses and to strengthen their capital bases. The principal terms of the undated subordinated liabilities are described below: Subordination All undated subordinated liabilities rank behind the claims against the bank of depositors and other unsecured unsubordinated creditors and holders of dated subordinated liabilities. Interest All undated subordinated liabilities bear a fixed rate of interest until the initial call date. After the initial call date, in the event that they are not redeemed, the 6.125% Undated Notes will bear interest at rates fixed periodically in advance for five-year periods based on market rates. After the initial call date, in the event that they are not redeemed, all other undated subordinated liabilities will bear interest at rates fixed periodically in advance based on market rates. Payment of interest Barclays Bank PLC is not obliged to make a payment of interest on its Undated Notes, Bonds and Loans if, in the preceding six months, a dividend has not been declared or paid on any class of shares of Barclays PLC or, in certain cases, any class of preference shares of Barclays Bank PLC. Interest not paid becomes payable in each case if such a dividend is subsequently paid or in certain other circumstances. During the year, Barclays Bank PLC paid interest on each of its Undated Notes, Bonds and Loans. No payment of principal or any interest may be made unless Barclays Bank PLC satisfies a specified solvency test. Repayment All undated subordinated liabilities are repayable at the option of Barclays Bank PLC in whole at the initial call date and on any fifth anniversary after the initial call date. In addition, each issue of undated subordinated liabilities is repayable, at the option of Barclays Bank PLC, in whole for certain tax reasons, either at any time, or on an interest payment date. There are no events of default except non-payment of principal or mandatory interest. Any repayments require the prior consent of the PRA. Other All issues of undated subordinated liabilities are non-convertible. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 345 | ## Notes to the financial statements ## Capital instruments, equity and reserves | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Dated subordinated liabilities1 | | | Barclays Bank Group | | | | | | | | | | | | 2024 | 2023 | | | Initial call date | Maturity date | £m | £m | | Barclays Bank PLC externally issued subordinated liabilities | | | | | | 5.75% Fixed Rate Subordinated Notes | | 2026 | 279 | 282 | | 5.4% Reverse Dual Currency Subordinated Loan ( JPY 15,000m) | | 2027 | 76 | 84 | | 6.33% Subordinated Notes ( GBP 50m) | | 2032 | 45 | 48 | | Subordinated Floating Rate Notes (EUR 68m) | | 2040 | 56 | 59 | | External issuances by other subsidiaries | | 2033 | 623 | 649 | | Barclays Bank PLC notes issued intra-group to Barclays PLC | | | | | | 3.75% Fixed Rate Resetting Subordinated Callable Notes ( SGD 200m) | 2025 | 2030 | 117 | 117 | | 5.20% Fixed Rate Subordinated Notes ( USD 1,367m) | | 2026 | 1,051 | 1,019 | | 1.125% Fixed Rate Resetting Subordinated Callable Notes ( EUR 1,000m) | 2026 | 2031 | 810 | 816 | | 4.836% Fixed Rate Subordinated Callable Notes ( USD 1,200m) | 2027 | 2028 | 920 | 898 | | 8.407% Fixed Rate Resetting Subordinated Callable Loan (GBP 1,000m) | 2027 | 2032 | 1,008 | 1,030 | | 5.088% Fixed-to-Floating Rate Subordinated Callable Notes ( USD 1,300m) | 2029 | 2030 | 941 | 931 | | 4.973% Fixed Rate Resetting Tier2 Subordinated Callable Notes (EUR 1,500m) | 2031 | 2036 | 1,320 | — | | 7.437% Fixed Rate Resetting Subordinated Callable Notes (USD 2,000m) | 2032 | 2033 | 1,573 | 1,609 | | 5.262% Fixed Rate Resetting Subordinated Callable Notes (EUR 1,250m) | 2033 | 2034 | 1,130 | 1,180 | | 7.119% Fixed-to-Floating Rate Subordinated Callable Notes (USD 860m) | 2033 | 2034 | 655 | 672 | | 3.811% Fixed Rate Resetting Subordinated Callable Notes ( USD 1,000m) | 2041 | 2042 | 586 | 619 | | 5.25% Fixed Rate Subordinated Notes ( USD 827m) | | 2045 | 408 | 445 | | 4.95% Fixed Rate Subordinated Notes ( USD 1,250m) | | 2047 | 556 | 636 | | Floating Rate Subordinated Notes (USD 456m) | | 2047 | 370 | 365 | | Barclays Bank PLC intra-group loans from Barclays PLC | | | | | | Various Fixed Rate Subordinated Loans | | | 3,457 | 5,632 | | Various Subordinated Floating Rate Loans | | | 334 | 458 | | Various Fixed Rate Subordinated Callable Loans | | | 24,401 | 17,841 | | Various Subordinated Floating Rate Callable Loans | | | 1,025 | 370 | | Zero Coupon Callable Loans | | 2052 | 537 | 579 | | Total dated subordinated liabilities | | | 42,278 | 36,339 | Note 1  Instrument values are disclosed to the nearest million. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 346 | ## Notes to the financial statements ## Capital instruments, equity and reserves | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Dated subordinated liabilities1 | | | Barclays Bank PLC | | | | | | | | | | | | 2024 | 2023 | | | Initial call date | Maturity date | £m | £m | | Barclays Bank PLC externally issued subordinated liabilities | | | | | | 5.75% Fixed Rate Subordinated Notes | | 2026 | 279 | 282 | | 5.4% Reverse Dual Currency Subordinated Loan ( JPY 15,000m) | | 2027 | 76 | 84 | | 6.33% Subordinated Notes ( GBP 50m) | | 2032 | 45 | 48 | | Subordinated Floating Rate Notes (EUR 68m) | | 2040 | 56 | 59 | | Barclays Bank PLC notes issued intra-group to Barclays PLC | | | | | | 3.75% Fixed Rate Resetting Subordinated Callable Notes ( SGD 200m) | 2025 | 2030 | 117 | 117 | | 5.20% Fixed Rate Subordinated Notes ( USD 1,367m) | | 2026 | 1,051 | 1,019 | | 1.125% Fixed Rate Resetting Subordinated Callable Notes ( EUR 1,000m) | 2026 | 2031 | 810 | 816 | | 4.836% Fixed Rate Subordinated Callable Notes ( USD 1,200m) | 2027 | 2028 | 920 | 898 | | 8.407% Fixed Rate Resetting Subordinated Callable Loan (GBP 1,000m) | 2027 | 2032 | 1,008 | 1,030 | | 5.088% Fixed-to-Floating Rate Subordinated Callable Notes ( USD 1,300m) | 2029 | 2030 | 941 | 931 | | 4.973% Fixed Rate Resetting Tier 2 Subordinated Callable Notes (EUR 1,500m) | 2031 | 2036 | 1,320 | — | | 7.437% Fixed Rate Resetting Subordinated Callable Notes (USD 2,000m) | 2032 | 2033 | 1,573 | 1,609 | | 5.262% Fixed Rate Resetting Subordinated Callable Notes (EUR 1,250m) | 2033 | 2034 | 1,130 | 1,180 | | 7.119% Fixed-to-Floating Rate Subordinated Callable Notes (USD 860m) | 2033 | 2034 | 655 | 672 | | 3.811% Fixed Rate Resetting Subordinated Callable Notes ( USD 1,000m) | 2041 | 2042 | 586 | 619 | | 5.25% Fixed Rate Subordinated Notes ( USD 827m) | | 2045 | 408 | 445 | | 4.95% Fixed Rate Subordinated Notes ( USD1,250m) | | 2047 | 556 | 636 | | Floating Rate Subordinated Notes (USD 456m) | | 2047 | 370 | 365 | | Barclays Bank PLC intra-group loans from Barclays PLC | | | | | | Various Fixed Rate Subordinated Loans | | | 3,443 | 5,615 | | Various Subordinated Floating Rate Loans | | | 334 | 458 | | Various Fixed Rate Subordinated Callable Loans | | | 24,403 | 17,841 | | Various Subordinated Floating Rate Callable Loans | | | 1,025 | 370 | | Zero Coupon Callable Notes | | 2052 | 537 | 579 | | Total dated subordinated liabilities | | | 41,643 | 35,673 | Note 1  Instrument values are disclosed to the nearest million. Dated subordinated liabilities Dated subordinated liabilities are issued by Barclays Bank PLC and its subsidiaries for the development and expansion of their businesses and to strengthen their respective capital bases. The principal terms of the dated subordinated liabilities are described below: Currency and maturity In addition to the individual dated subordinated liabilities listed in the Barclays Bank Group table, the £29,754m ( 2023: £24,880m) of intra- group loans is made up of various fixed, fixed to floating rate, floating and zero coupon loans from Barclays PLC with notional amounts denominated in USD 28,275m, EUR 7,230m, GBP 502m , JPY 159,700m, AUD 1,390m, NOK 220m, CAD 450m and CHF 260m, with maturities ranging from 2025 to 2052. Certain intra-group loans have a call date one year prior to their maturity. Subordination All dated subordinated liabilities, both externally issued and issued intra-group to Barclays PLC, rank behind the claims against Barclays Bank PLC of depositors and other unsecured unsubordinated creditors but before the claims of the undated subordinated liabilities and the holders of Barclays Bank PLC equity. The Barclays Bank PLC intra-group loans from Barclays PLC rank pari passu amongst themselves but ahead of the Barclays Bank PLC notes issued intra-group to Barclays PLC and the Barclays Bank PLC externally issued subordinated liabilities. The external dated subordinated liabilities issued by subsidiaries are similarly subordinated as the external subordinated liabilities issued by Barclays Bank PLC. Interest Interest on floating rate notes and loans is set by reference to market rates at the time of issuance and fixed periodically in advance, based on the related market rates. Interest on fixed rate notes and loans is set by reference to market rates at the time of issuance and fixed until maturity. Interest on fixed rate callable notes and loans is set by reference to market rates at the time of issuance and fixed until the call date or maturity as applicable. After the call date (where relevant), in the event that the notes or loans are not redeemed, the interest rate will be reset to either a fixed or floating rate until maturity based on market rates. No interest is paid on zero coupon notes. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 347 | ## Notes to the financial statements ## Capital instruments, equity and reserves Repayment Those subordinated liabilities with a call date are repayable at the option of Barclays Bank PLC on such call date in accordance with the conditions governing the respective debt obligations, some in whole or in part, and some only in whole, or otherwise on maturity. The remaining dated subordinated liabilities outstanding at 31 December 2024 are redeemable only on maturity, subject, in particular cases, to provisions allowing an early redemption in the event of certain changes in tax law or to certain changes in legislation or regulations. Any repayments prior to maturity may require, in the case of Barclays Bank PLC, the prior consent of the PRA or BoE or, in the case of the overseas issues, the consent of the local regulator for that jurisdiction and of the PRA in certain circumstances. There are no committed facilities in existence at the balance sheet date which permit the refinancing of debt beyond the date of maturity. 26 Ordinary shares, preference shares and other equity | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Called up share capital, allotted and fully paid and other equity instruments | | | | | | | | Barclays Bank Group and Barclays Bank PLC | | | Barclays Bank Group | Barclays Bank PLC | | | Ordinary share capital | Preference share capital | Total share capital | Other equity instruments | Other equity instruments | | | £m | £m | £m | £m | £m | | As at 1 January 2024 | 2,342 | 6 | 2,348 | 10,765 | 15,472 | | AT1 securities issuance | — | — | — | 970 | 970 | | AT1 securities redemption | — | — | — | (2,131) | (2,131) | | As at 31 December 2024 | 2,342 | 6 | 2,348 | 9,604 | 14,311 | | | | | | | | | As at 1 January 2023 | 2,342 | 6 | 2,348 | 10,691 | 15,398 | | AT1 securities issuance | — | — | — | 2,499 | 2,499 | | AT1 securities redemption | — | — | — | (2,425) | (2,425) | | As at 31 December 2023 | 2,342 | 6 | 2,348 | 10,765 | 15,472 | Ordinary shares The issued ordinary share capital of Barclays Bank PLC, as at 31 December 2024, comprised 2,342m (2023: 2,342m) ordinary shares of £1 each. Preference shares The issued preference share capital of Barclays Bank PLC, as at 31 December 2024, comprised 31,856 Euro Preference Shares of €100 each (2023 : 31,856) and 58,133 US Dollar Preference Shares of $100 each (2023: 58,133). Ordinary share capital and preference share capital constitutes 100% (2023: 100%) of total share capital issued. Euro Preference Shares 140,000 Euro non-cumulative callable preference shares of €100 each (the Euro Preference Shares) were issued on 15 March 2005 for a consideration of €1,383.3m (£966.7m), of which the nominal value was €14m and the balance was share premium. The Euro Preference Shares entitled the holders thereof to receive Euro non-cumulative cash dividends out of distributable profits of Barclays Bank PLC, annually at a fixed rate of 4.75% per annum on the amount of €10,000 per preference share until 15 March 2020, and since 15 March 2020 quarterly at a rate reset quarterly equal to 0.71% per annum above the Euro interbank offered rate for three-month Euro deposits. The board of directors of Barclays Bank PLC may resolve, in its absolute discretion, not to pay in full, or at all, the dividend on the Euro Preference Shares in respect of a particular dividend period. The Euro Preference Shares are redeemable at the option of Barclays Bank PLC, in whole but not in part only, on each dividend payment date at €10,000 per share plus any dividends accrued for the then current dividend period to the date fixed for redemption. US Dollar Preference Shares 100,000 US Dollar non-cumulative callable preference shares of $100 each (the US Dollar Preference Shares), represented by 100,000 American Depositary Shares, Series 1, were issued on 8 June 2005 for a consideration of $995.4m ( £548.1m), of which the nominal value was $10m and the balance was share premium. The US Dollar Preference Shares entitle the holders thereof to receive US Dollar non- cumulative cash dividends out of distributable profits of Barclays Bank PLC, semi-annually at a fixed rate of 6.278% per annum on the amount of $10,000 per preference share until 15 December 2034, and thereafter quarterly at a rate reset quarterly equal to 1.55% per annum above the London interbank offered rate for three-month US Dollar deposits. The board of directors of Barclays Bank PLC may resolve, for any reason and in its absolute discretion, not to declare or pay in full or in part any dividends on the US Dollar Preference Shares in respect of a particular dividend period. The US Dollar Preference Shares are redeemable at the option of Barclays Bank PLC, in whole but not in part only, on 15 December 2034, and on each dividend payment date thereafter at $10,000 per share plus any dividends accrued for the then current dividend period to the date fixed for redemption. No redemption or purchase of any Euro Preference Shares and US Dollar Preference Shares (together, the Preference Shares) may be made by Barclays Bank PLC without the prior consent of the PRA and any such redemption will be subject to the Companies Act 2006 and the Articles of Barclays Bank PLC. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 348 | ## Notes to the financial statements ## Capital instruments, equity and reserves On a winding-up of Barclays Bank PLC or other return of capital (other than a redemption or purchase of shares of Barclays Bank PLC, or a reduction of share capital), a holder of Preference Shares will rank in the application of assets of Barclays Bank PLC available to shareholders: (1) junior to the holder of any shares of Barclays Bank PLC in issue ranking in priority to the Preference Shares; (2) equally in all respects with holders of other preference shares and any other shares of Barclays Bank PLC in issue ranking pari passu with the Preference Shares; and (3) in priority to the holders of ordinary shares and any other shares of Barclays Bank PLC in issue ranking junior to the Preference Shares. Subject to such ranking, in such event, holders of the Preference Shares will be entitled to receive out of assets of Barclays Bank PLC available for distributions to shareholders, liquidating distributions in the amount of €10,000 per Euro Preference Share and $10,000 per US Dollar Preference Share, plus, in each case, an amount equal to the accrued dividend for the then current dividend period to the date of the commencement of the winding-up or other such return of capital. If a dividend is not paid in full on any preference shares on any dividend payment date, then a dividend restriction shall apply. This dividend restriction will mean that neither Barclays Bank PLC nor Barclays PLC may (a) declare or pay a dividend (other than payment by Barclays PLC of a final dividend declared by its shareholders prior to the relevant dividend payment date, or a dividend paid by Barclays Bank PLC to Barclays PLC) on any of their respective ordinary shares, other preference shares or other share capital or (b) redeem, purchase, reduce or otherwise acquire any of their respective share capital, other than shares of Barclays Bank PLC held by Barclays PLC or a wholly owned subsidiary, until the earlier of: (1) the date on which Barclays Bank PLC next declares and pays in full a preference share dividend; and (2) the date on or by which all the preference shares are redeemed in full or purchased by Barclays Bank PLC. Holders of the Preference Shares are not entitled to receive notice of, or to attend, or vote at, any general meeting of Barclays Bank PLC. Barclays Bank PLC is not permitted to create a class of shares ranking as regards participation in the profits or assets of Barclays Bank PLC in priority to the preference shares, save with the sanction of a special resolution of a separate general meeting of the holders of the Preference Shares (requiring a majority of not less than three-fourths of the holders of the Preference Shares voting at the separate general meeting) or with the consent in writing of the holders of three-fourths of the Preference Shares. Except as described above, the holders of the Preference Shares have no right to participate in the surplus assets of Barclays Bank PLC. Other equity instruments Other equity instruments issued by Barclays Bank PLC of £14,311m (2023: £15,472m) include AT1 securities issued to Barclays PLC and borrowings of $6bn from a wholly-owned, indirect subsidiary of Barclays Bank PLC. As a result, the other equity instruments balance recorded by Barclays Bank Group is £9,604m (2023: £10,765m). The borrowings of $6bn from a wholly-owned, indirect subsidiary of Barclays Bank PLC have been recorded as equity since, under their terms, interest payments are non cumulative and discretionary whilst repayment of principal is perpetually deferrable by Barclays Bank PLC. Should Barclays Bank PLC make a discretionary dividend payment on its ordinary shares in the six months preceding the date of an interest payment, it will be obliged to make that interest payment. In 2024, interest paid on these borrowings was £433m (2023: £439m). Barclays PLC uses funds from its own market issuance of AT1 securities to purchase AT1 securities from the Barclays Bank Group. The AT1 securities are perpetual securities with no fixed maturity and are structured to qualify as AT1 instruments under prevailing capital rules applicable as at the relevant issue date. In 2024, there were two issuances of AT1 instruments, in the form of Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities, for £970m (2023: three issuances for £2,499m) which includes issuance costs of £10m (2023: £26m). There were two redemptions in 2024 totalling £2,131m (2023: two redemptions totalling £2,425m). | | | | | | --- | --- | --- | --- | | | | | | | AT1 equity instruments | | | | | | | 2024 | 2023 | | | Initial call date | £m | £m | | AT1 equity instruments - Barclays Bank Group | | | | | 5.875% Perpetual Subordinated Contingent Convertible Securities | 2024 | — | 623 | | 8.000% Perpetual Subordinated Contingent Convertible Securities ( USD2,000m) | 2024 | — | 1,509 | | 7.125% Perpetual Subordinated Contingent Convertible Securities | 2025 | 299 | 299 | | 6.375% Perpetual Subordinated Contingent Convertible Securities | 2025 | 495 | 495 | | 6.125% Perpetual Subordinated Contingent Convertible Securities ( USD1,500m) | 2025 | 1,134 | 1,134 | | 8.875% Perpetual Subordinated Contingent Convertible Securities | 2027 | 1,237 | 1,237 | | 8.300% Perpetual Subordinated Contingent Convertible Securities ( SGD450m) | 2027 | 263 | 263 | | 4.375% Perpetual Subordinated Contingent Convertible Securities ( USD1,500m) | 2028 | 1,072 | 1,072 | | 7.300% Perpetual Subordinated Contingent Convertible Securities ( SGD400m) | 2028 | 247 | 247 | | 9.250% Perpetual Subordinated Contingent Convertible Securities | 2028 | 866 | 866 | | 8.000% Perpetual Subordinated Contingent Convertible Securities ( USD2,000m) | 2029 | 1,634 | 1,634 | | 9.625% Perpetual Subordinated Contingent Convertible Securities ( USD1,750m) | 2029 | 1,386 | 1,386 | | 5.400% Perpetual Subordinated Contingent Convertible Securities (SGD600m) | 2030 | 352 | — | | 8.500% Perpetual Subordinated Contingent Convertible Securities | 2030 | 619 | — | | | | 9,604 | 10,765 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 349 | ## Notes to the financial statements ## Capital instruments, equity and reserves 27 Reserves Currency translation reserve ![]() The currency translation reserve represents the cumulative gains and losses on the retranslation of net investments in foreign operations, net of the effects of hedging. Fair value through other comprehensive income reserve The fair value through other comprehensive income reserve represents the changes in the fair value of financial instruments accounted for at fair value through other comprehensive income investments since initial recognition. Cash flow hedging reserve The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the income statement when the hedged transactions affect profit or loss. Own credit reserve The own credit reserve reflects the cumulative own credit gains and losses on financial liabilities at fair value. Amounts in the own credit reserve are not recycled to profit or loss in future periods. Other reserves Other reserves includes a merger reserve relating to inter-Barclays Group entity transfers, and redeemed ordinary and preference shares issued by the Barclays Bank Group. | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | Currency translation reserve | 3,690 | 3,783 | | Fair value through other comprehensive income reserve | (1,681) | (1,207) | | Cash flow hedging reserve | (2,448) | (2,895) | | Own credit reserve | (1,059) | (240) | | Other reserves | 196 | 196 | | Total | (1,302) | (363) | | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | Currency translation reserve | 993 | 845 | | Fair value through other comprehensive income reserve | (1,678) | (1,215) | | Cash flow hedging reserve | (2,321) | (2,697) | | Own credit reserve | (994) | (214) | | Other reserves | 72 | 72 | | Total | (3,928) | (3,209) | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 350 | ## Notes to the financial statements ## Employee benefits The notes included in this section focus on the costs and commitments associated with employing our staff. 28 Staff costs Accounting for staff costs Deferred cash and share awards are made to employees to incentivise performance over the period employees provide services. To receive an award, an individual must have provided service over the vesting period and been employed on the scheduled vesting date or be considered an eligible leaver. The expense for deferred cash and share awards is recognised over the period employees’ services contribute to the awards. The Barclays Bank Group considers it appropriate to recognise the expense over the vesting period including the financial year prior to the grant date. The accounting policies for share-based payments and pensions and other post-retirement benefits are included in Note 29 and Note 30 respectively. | | | | | | --- | --- | --- | --- | | | | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Performance costs | 1,436 | 1,308 | 1,398 | | Salaries | 2,766 | 2,921 | 2,637 | | Social security costs | 381 | 374 | 352 | | Post-retirement benefits1 | 329 | 298 | 188 | | Other compensation costs | 237 | 221 | 205 | | Total compensation costs2 | 5,149 | 5,122 | 4,780 | | | | | | | Other resourcing costs | | | | | Outsourcing | 198 | 206 | 259 | | Redundancy and restructuring | 137 | 176 | 45 | | Temporary staff costs | 16 | 22 | 25 | | Other | 56 | 65 | 83 | | Total other resourcing costs | 407 | 469 | 412 | | | | | | | Total staff costs | 5,556 | 5,591 | 5,192 | Notes 1 Post-retirement benefits charge includes £178m (2023: £180m; 2022 : £140m) in respect of defined contribution schemes and £151m (2023: £118m; 2022: £48m) in respect of defined benefit schemes. 2  £324m (2023: £259m; 2022: £197m) of compensation cost was capitalised as internally generated software. 29 Share-based payments Accounting for share-based payments Employee incentives include awards in the form of shares and share options, as well as offering employees the opportunity to purchase shares on favourable terms. The cost of the employee services received in respect of the shares or share options granted is recognised in the income statement over the period that employees provide services. The overall cost of the award is calculated using the number of shares and options expected to vest and the fair value of the shares or options at the date of grant. The number of shares and options expected to vest takes into account the likelihood that performance and service conditions included in the terms of the awards will be met. For other share-based payment schemes such as Sharesave and Sharepurchase, there are non-vesting conditions which must be met. Failure to meet the non-vesting condition is treated as a cancellation, resulting in an acceleration of recognition of the cost of the employee services. The fair value of shares is the market price ruling on the grant date, in some cases adjusted to reflect restrictions on transferability. The fair value of options granted is determined using the Black-Scholes model to estimate the numbers of shares likely to vest. The model takes into account the exercise price of the option, the current share price, the risk-free interest rate, the expected volatility of the share price over the life of the option and other relevant factors. Market conditions that must be met in order for the award to vest are also reflected in the fair value of the award, as are any other non-vesting conditions – such as continuing to make payments into a share-based savings scheme. The charge for the year arising from share based payment schemes was as follows: | | | | | | --- | --- | --- | --- | | | | | | | | Charge for the year | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Share Value Plan and Deferred Share Value Plan | 287 | 254 | 270 | | Others | 133 | 144 | 153 | | Total equity settled | 420 | 398 | 423 | | Cash settled | 9 | 3 | 3 | | Total share based payments | 429 | 401 | 426 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 351 | ## Notes to the financial statements ## Employee benefits The terms of the main current plans are as follows: Share Value Plan (SVP) SVP awards have been granted to participants in the form of a conditional right to receive Barclays PLC shares or provisional allocations of Barclays PLC shares which vest or are considered for release over a period of three, four, five or seven years. Participants do not pay to receive an award or to receive a release of shares. For awards granted before December 2017, the grantor may also make a dividend equivalent payment to participants on release of a SVP award. SVP awards are also made to eligible employees for recruitment purposes. All awards are subject to potential forfeiture in certain leaver scenarios. Deferred Share Value Plan (DSVP) The terms of the DSVP are materially the same as the terms of the SVP as described above, save that Executive Directors are not eligible to participate in the DSVP and the DSVP operates over market purchase shares only. Other schemes In addition to the SVP and DSVP, the Barclays PLC Group operates a number of other schemes settled in Barclays PLC Shares including Sharesave (both UK and Ireland), Sharepurchase (both UK and Overseas), and the Barclays PLC Group Long Term Incentive Plan. A delivery of upfront shares to ‘Material Risk Takers’ can be made as a Share Incentive Award (Holding Period) under the SVP. Share option and award plans The weighted average fair value per award granted, weighted average share price at the date of exercise/release of shares during the year, weighted average contractual remaining life, and number of options and awards outstanding (including those exercisable) at the balance sheet date were as follows: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | 2024 | | | | 2023 | | | | | | | | | | | | | | | | Weighted average fair value per award granted in year | Weighted average share price at exercise/ release during year | Weighted average remaining contractual life | Number of options/ awards outstanding | Weighted average fair value per award granted in year | Weighted average share price at exercise/ release during year | Weighted average remaining contractual life | Number of options/ awards outstanding | | | £ | £ | in years | (000s) | £ | £ | in years | (000s) | | SVP and DSVP1,2 | 1.52 | 1.74 | 1 | 441,713 | 1.49 | 1.68 | 1 | 435,820 | | Others1,3 | 0.81- 2.1 | 1.72- 2.13 | 0-2 | 43,901 | 0.31- 1.69 | 1.42- 1.69 | 0- 2 | 51,363 | SVP and DSVP are nil cost awards on which the performance conditions are substantially completed at the date of grant. Consequently, the fair value of these awards is based on the market value at that date. Sharesave has a contractual life of 3 years and 5 years, the expected volatility is 30.31% for 3 years and 27.49% for 5 years. The risk free interest rates used for valuations are 4.09% and 3.97% for 3 years and 5 years respectively. The pure dividend yield rates used for valuations are 2.91% and 3.00% for 3 years and 5 years respectively. The repo rates used for valuations are (0.54)% and (0.61)% for 3 years and 5 years respectively. The inputs into the model such as risk free interest rate, expected volatility, pure dividend yield rates and repo rates are derived from market data. Movements in options and awards The movement in the number of options and awards for the major schemes and the weighted average exercise price of options was: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | SVP and DSVP1,2 | | Others1,3 | | | | | | | | | | | | | | Number (000s) | | Number (000s) | | Weighted average exercise price (£) | | | | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | | Outstanding at beginning of year/acquisition date | 435,820 | 445,673 | 51,363 | 47,610 | 1.05 | 0.97 | | Transfers within the year4 | (2,528) | 214 | 1,780 | 9,700 | | | | Granted in the year | 202,420 | 208,395 | 84,383 | 100,831 | 1.79 | 1.17 | | Exercised/released in the year | (171,810) | (179,285) | (90,721) | (102,130) | 0.95 | 0.88 | | Less: forfeited in the year | (22,189) | (39,177) | (2,611) | (4,112) | 1.20 | 1.17 | | Less: expired in the year | — | — | (293) | (536) | 1.25 | 1.47 | | Outstanding at end of year | 441,713 | 435,820 | 43,901 | 51,363 | 1.17 | 1.05 | | Of which exercisable: | — | — | 4,956 | 11,898 | 1.23 | 0.87 | Notes 1  Options/award granted over Barclays PLC shares. 2  Weighted average exercise price is not applicable for SVP and DSVP awards as these are not share option schemes. 3  The number of awards within Others at the end of the year principally relates to Sharesave (number of awards exercisable at end of year was 828,340). The weighted average exercise price relates to Sharesave. 4  Awards of employees transferred between the Barclays Bank Group and the rest of the Barclays PLC Group. Awards and options granted to employees and former employees of the Barclays Bank Group under the Barclays PLC Group share plans may be satisfied using new issue shares, treasury shares and market purchase shares of Barclays PLC. Awards granted to employees and former employees of the Barclays Bank Group under DSVP may only be satisfied using market purchase shares of Barclays PLC. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 352 | ## Notes to the financial statements ## Employee benefits There were no significant modifications to the share based payments arrangements in 2024 and 2023. As at 31 December 2024, the total liability arising from cash-settled share based payments transactions was £10m (2023: £4m). 30 Pensions and post-retirement benefits Accounting for pensions and post-retirement benefits ![]() The Barclays Bank Group operates a number of pension schemes and post-employment benefit schemes. Defined contribution schemes – the Barclays Bank Group recognises contributions due in respect of the accounting period in the income statement. Any contributions unpaid at the balance sheet date are included as a liability. Defined benefit schemes – the Barclays Bank Group recognises its obligations to members of each scheme at the period end, less the fair value of the scheme assets after applying the asset ceiling test. Each scheme’s obligations are calculated using the projected unit credit method. Scheme assets are stated at fair value as at the period end. Changes in pension scheme liabilities or assets (remeasurements) that do not arise from regular pension cost, net interest on net defined benefit liabilities or assets, past service costs, settlements or contributions to the scheme are recognised in other comprehensive income. Remeasurements comprise experience adjustments (differences between previous actuarial assumptions and what has actually occurred), the effects of changes in actuarial assumptions, return on scheme assets (excluding amounts included in the interest on the assets) and any changes in the effect of the asset ceiling restriction (excluding amounts included in the interest on the restriction). Post-employment benefit schemes – the cost of providing healthcare benefits to retired employees is accrued as a liability in the financial statements over the period that the employees provide services to the Barclays Bank Group, using a methodology similar to that for defined benefit pension schemes. Pension schemes UK Retirement Fund (UKRF) The UKRF is the Barclays Bank Group’s main scheme, representing 96% (2023: 96%) of the Barclays Bank Group’s total retirement benefit obligations. Barclays Bank PLC is the principal employer of the UKRF. The UKRF was closed to new entrants on 1 October 2012, and comprises 10 sections, the two most significant of which are: ▪ Afterwork, which comprises a contributory cash balance defined benefit element, and a voluntary defined contribution element. The cash balance element is accrued each year and revalued until Normal Retirement Age in line with the increase in Retail Price Index (RPI) (up to a maximum of 5% p.a.). The main risks that the Barclays Bank Group runs in relation to Afterwork are limited although additional contributions are required if pre-retirement investment returns are not sufficient to provide for the benefits. ▪ The 1964 Pension Scheme. Most UK employees recruited before July 1997 built up benefits in this non-contributory defined benefit scheme in respect of service up to 31 March 2010. Pensions were calculated by reference to service and pensionable salary. From 1 April 2010, members became eligible to accrue future service benefits in either Afterwork or the Pension Investment Plan, a historic defined contribution section which is now closed to future contributions. The risks that the Barclays Bank Group runs in relation to the 1964 section are typical of final salary pension schemes, principally that investment returns fall short of expectations, that inflation exceeds expectations, and that retirees live longer than expected. Barclays Pension Savings Plan (BPSP) The BPSP is a defined contribution scheme providing benefits for all new UK hires from 1 October 2012. BPSP is not subject to the same investment return, inflation or life expectancy risks for the Barclays Bank Group that defined benefit schemes are. Members’ benefits reflect contributions paid and the level of investment returns achieved. Other Apart from the UKRF and the BPSP, the Barclays Bank Group operates a number of smaller pension and long-term employee benefits and post-retirement healthcare plans globally, the largest of which are the US defined benefit and defined contribution schemes. Many of the schemes are funded, with assets backing the obligations held in separate legal vehicles such as trusts. Others are operated on an unfunded basis. The benefits provided, the approach to funding, and the legal basis of the schemes, reflect local environments. Governance The UKRF operates under trust law and is managed and administered on behalf of the members in accordance with the terms of the Trust Deed and Rules and all relevant legislation. The Corporate Trustee is Barclays Pension Funds Trustees Limited, a private limited company and a wholly owned subsidiary of Barclays Bank PLC. The Trustee is the legal owner of the assets of the UKRF which are held separately from the assets of the Barclays Bank Group. The Trustee Board comprises six Management Directors selected by Barclays Bank PLC, of whom three are independent Directors with no relationship with the Barclays Bank Group (and who are not members of the UKRF), plus three Member Nominated Directors selected from eligible active, deferred or pensioner members who apply for the role. The BPSP is a Group Personal Pension arrangement which operates as a collection of personal pension plans. Each personal pension plan is a direct contract between the employee and the BPSP provider (Legal & General Assurance Society Limited), and is regulated by the FCA. Similar principles of pension governance apply to the Barclays Bank Group’s other pension schemes, depending on local legislation. Amounts recognised The following tables include amounts recognised in the income statement and an analysis of benefit obligations and scheme assets for all Barclays Bank Group defined benefit schemes. The net position is reconciled to the assets and liabilities recognised on the balance sheet. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 353 | ## Notes to the financial statements ## Employee benefits The tables include funded and unfunded post-retirement benefits. The income statement charge with respect to defined contribution schemes is disclosed as part of footnotes to Note 28 Staff costs. | | | | | | --- | --- | --- | --- | | | | | | | Income statement (credit)/charge | | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Current service cost | 150 | 119 | 28 | | Net finance (income)/cost | (157) | (222) | (122) | | Past service cost | — | — | 20 | | Other movements | 1 | (1) | — | | Total | (6) | (104) | (74) | Barclays Bank PLC is the principal employer of the UKRF and hence Scheme Assets and Defined Benefit Obligations relating to the UKRF are recognised within the Barclays Bank Group. Barclays Bank UK PLC and Barclays Execution Services Limited are participating employers in the UKRF and their share of the UKRF service cost is borne by them. Of the £168m current service cost in the table below, £5m relates to Barclays Bank UK PLC and £13m relates to Barclays Execution Services Limited. While the entire current service cost obligation is accounted for in the Barclays Bank Group, the income statement charge is accounted for across all the participating employers. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Balance sheet reconciliation | | | | | | | 2024 | | 2023 | | | | Barclays Bank Group Total | Of which relates to UKRF | Barclays Bank Group Total | Of which relates to UKRF | | | £m | £m | £m | £m | | Benefit obligation at beginning of the year | (21,420) | (20,618) | (20,801) | (19,990) | | Current service cost | (168) | (155) | (151) | (141) | | Interest costs on scheme liabilities | (930) | (901) | (959) | (929) | | Remeasurement gain/(loss) - financial | 1,804 | 1,797 | (698) | (683) | | Remeasurement gain/(loss) - demographic | 12 | 13 | 311 | 310 | | Remeasurement (loss)/gain - experience | (55) | (54) | (264) | (260) | | Employee contributions | (6) | — | (5) | (1) | | Benefits paid | 1,226 | 1,189 | 1,115 | 1,075 | | Exchange and other movements | 13 | — | 32 | 1 | | Benefit obligation at end of the year | (19,524) | (18,729) | (21,420) | (20,618) | | Fair value of scheme assets at beginning of the year | 24,914 | 24,234 | 25,360 | 24,680 | | Interest income on scheme assets | 1,087 | 1,062 | 1,181 | 1,155 | | Employer contribution | 37 | 22 | 54 | 39 | | Remeasurement - return on scheme assets (less)/greater than discount rate | (2,192) | (2,184) | (532) | (548) | | Employee contributions | 6 | — | 5 | 1 | | Benefits paid | (1,221) | (1,189) | (1,115) | (1,075) | | Exchange and other movements | (8) | (17) | (39) | (18) | | Fair value of scheme assets at end of the year | 22,623 | 21,928 | 24,914 | 24,234 | | Net surplus | 3,099 | 3,199 | 3,494 | 3,616 | | Retirement benefit assets | 3,263 | 3,199 | 3,667 | 3,616 | | Retirement benefit liabilities | (164) | — | (173) | — | | Net retirement benefit assets | 3,099 | 3,199 | 3,494 | 3,616 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 354 | ## Notes to the financial statements ## Employee benefits | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Balance sheet reconciliation | | | | | | | 2024 | | 2023 | | | | Barclays Bank PLC Total | Of which relates to UKRF | Barclays Bank PLC Total | Of which relates to UKRF | | | £m | £m | £m | £m | | Benefit obligation at beginning of the year | (20,732) | (20,618) | (20,118) | (19,990) | | Current service cost | (157) | (155) | (143) | (141) | | Interest costs on scheme liabilities | (905) | (901) | (932) | (929) | | Remeasurement (loss)/gain - financial | 1,796 | 1,797 | (676) | (683) | | Remeasurement gain/(loss) - demographic | 13 | 13 | 311 | 310 | | Remeasurement (loss)/gain - experience | (51) | (54) | (258) | (260) | | Employee contributions | (1) | — | (1) | (1) | | Benefits paid | 1,194 | 1,189 | 1,077 | 1,075 | | Exchange and other movements | 1 | — | 8 | 1 | | Benefit obligation at end of the year | (18,842) | (18,729) | (20,732) | (20,618) | | Fair value of scheme assets at beginning of the year | 24,282 | 24,234 | 24,733 | 24,680 | | Interest income on scheme assets | 1,063 | 1,062 | 1,156 | 1,155 | | Employer contribution | 26 | 22 | 40 | 39 | | Remeasurement - return on scheme assets (less)/greater than discount rate | (2,181) | (2,184) | (551) | (548) | | Employee contributions | 1 | — | 1 | 1 | | Benefits paid | (1,194) | (1,189) | (1,077) | (1,075) | | Exchange and other movements | (19) | (17) | (20) | (18) | | Fair value of scheme assets at end of the year | 21,978 | 21,928 | 24,282 | 24,234 | | Net surplus | 3,136 | 3,199 | 3,550 | 3,616 | | Retirement benefit assets | 3,202 | 3,199 | 3,621 | 3,616 | | Retirement benefit liabilities | (66) | — | (71) | — | | Net retirement benefit assets | 3,136 | 3,199 | 3,550 | 3,616 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 355 | ## Notes to the financial statements ## Employee benefits Included within the Barclays Bank Group’s benefit obligation is £695m (2023: £694m ) relating to overseas pensions and £99m (2023: £108m) relating to other post-employment benefits. Barclays has considered the potential implications for the UKRF of the ruling and appeal in Virgin Media v NTL Pension Trustees II Ltd. Activity to date has not identified any relevant amendments to the UKRF (of the nature of that found to have been void in the Virgin Media case) that were not subject to actuarial confirmation. No material additional benefit obligation is expected. As at 31 December 2024, the UKRF’s scheme assets were in surplus versus IAS 19 obligations by £3,199m (2023: £3,616m). During 2024, the decrease in the UKRF surplus was driven by changes in market conditions. Defined benefit obligation reduced due to increases in underlying corporate bond yields, however assets reduced by a higher amount. The UKRF’s hedging strategy is more aligned to the funding basis than the accounting basis. The weighted average duration of the benefit payments reflected in the defined benefit obligation for the UKRF is 11 years (2023: 12 years ). The UKRF expected benefits promised to date are projected to be paid out for in excess of 50 years , although 32% of the benefits are expected to be paid in the next 10 years ; 33% in years 11 to 20 and 21% in years 21 to 30. The remainder of the benefits are expected to be paid beyond 30 years. Of the £1,189m (2023: £1,075m) UKRF benefits paid out, £165m (2023: £122m) related to transfers out of the fund. Where a scheme’s assets exceed its obligation, an asset is recognised to the extent that it does not exceed the present value of future contribution holidays or refunds of contributions (the asset ceiling). In the case of the UKRF the asset ceiling is not applied as, in certain specified circumstances such as wind-up, the Barclays Bank Group expects to be able to recover any surplus. Similarly, a liability in respect of future minimum funding requirements is not recognised. The Trustee does not have a substantive right to augment benefits, nor do they have the right to wind-up the plan except in the dissolution of Barclays Bank PLC or termination of contributions by Barclays Bank PLC. The application of the asset ceiling to other plans and recognition of additional liabilities in respect of future minimum funding requirements are considered on an individual plan basis. Critical accounting estimates and judgements Actuarial valuation of the scheme's obligation is dependent upon a series of assumptions. Below is a summary of the main financial and demographic assumptions adopted for the UKRF. | | | | | --- | --- | --- | | | | | | Key UKRF financial assumptions | 2024 | 2023 | | | % p.a. | % p.a. | | Discount rate | 5.44 | 4.49 | | Inflation rate (RPI) | 3.32 | 3.17 | The UKRF discount rate assumption for 2024 was based on a standard WTW RATE Link model. The RPI inflation assumption for 2024 was set by reference to the Bank of England’s implied inflation curve. The inflation assumption incorporates a deduction of 20 basis points as an allowance for an inflation risk premium. The methodology used to derive the discount rate and inflation assumptions is consistent with that used at the prior year end. The UKRF’s post-retirement mortality assumptions are based on best estimates derived from an analysis in 2022 of the UKRF’s own post- retirement mortality experience and taking account of recent evidence from published mortality surveys. An allowance has been made for future mortality improvements based on the 2023 core projection model published by the Continuous Mortality Investigation Bureau subject to a long-term trend of 1.25% per annum in future improvements (2023: 1.25% per annum). The table below shows how the assumed life expectancy, for members of the UKRF, has changed since last year: | | | | | --- | --- | --- | | | | | | Assumed life expectancy1 | 2024 | 2023 | | Life expectancy at 60 for current pensioners (years) | | | | – Males | 26.5 | 26.5 | | – Females | 29.4 | 29.3 | | Life expectancy at 60 for future pensioners currently aged 40 (years) | | | | – Males | 28.0 | 28.0 | | – Females | 30.8 | 30.7 | Note: 1 The life expectancies disclosed are in respect of a population of the membership that represents c60% of the Defined Benefit Obligation of UKRF (excluding the Afterwork section which has no post-retirement mortality risk) with the remaining members having life expectancy at age 60 of between 26.3 years and 29.4 years. Approximately, 70% of the longevity risk for current pensioners has been reinsured and the transactions will provide income to the UKRF if pensions are paid out for longer than expected. The contracts form part of the UKRF’s investment portfolio. Sensitivity analysis on actuarial assumptions The sensitivity analysis has been calculated by valuing the UKRF liabilities using the amended assumptions shown in the table below and keeping the remaining assumptions the same as disclosed in the table above, except in the case of the inflation sensitivity where other assumptions that depend on assumed inflation have also been amended correspondingly. The difference between the recalculated liability figure and that stated in the balance sheet reconciliation table above is the figure shown. The selection of these movements to illustrate the sensitivity of the defined benefit obligation to key assumptions should not be interpreted as the Barclays Bank Group expressing any specific view of the probability of such movements happening. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 356 | ## Notes to the financial statements ## Employee benefits | | | | | --- | --- | --- | | | | | | Change in key assumptions | | | | | 2024 | 2023 | | | | | | | (Decrease)/Increase in UKRF defined benefit obligation | (Decrease)/Increase in UKRF defined benefit obligation | | | £bn | £bn | | Discount rate | | | | 0.5% p.a. increase | (1.0) | (1.2) | | 0.25% p.a. increase | (0.5) | (0.6) | | 0.25% p.a. decrease | 0.5 | 0.6 | | 0.5% p.a. decrease | 1.1 | 1.3 | | Assumed RPI | | | | 0.5% p.a. increase | 0.7 | 0.8 | | 0.25% p.a. increase | 0.3 | 0.4 | | 0.25% p.a. decrease | (0.4) | (0.4) | | 0.5% p.a. decrease | (0.7) | (0.8) | | Life expectancy at 60 | | | | One year increase | 0.5 | 0.6 | | One year decrease | (0.5) | (0.6) | Assets A long-term investment strategy has been set for the UKRF, with its asset allocation comprising a mixture of gilts, bonds, property and other appropriate assets. This recognises that different asset classes are likely to produce different long-term returns and some asset classes may be more volatile than others. The long-term investment strategy ensures, among other aims, that investments are adequately diversified. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 357 | ## Notes to the financial statements ## Employee benefits The value of the assets of the schemes and their percentage in relation to total scheme assets were as follows: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Analysis of scheme assets | | | | | | | | | | | Barclays Bank Group Total | | | | Of which relates to UKRF | | | | | | Quoted | Unquoted1 | Value | % of total fair value of scheme assets | Quoted | Unquoted1 | Value | % of total fair value of scheme assets | | | £m | £m | £m | % | £m | £m | £m | % | | As at 31 December 2024 | | | | | | | | | | Equities | 121 | — | 121 | 0.5 | — | — | — | — | | Private equities | — | 2,134 | 2,134 | 9.4 | — | 2,134 | 2,134 | 9.7 | | Bonds - fixed government | 1,546 | — | 1,546 | 6.8 | 1,306 | — | 1,306 | 6.0 | | Bonds - index-linked government | 8,234 | — | 8,234 | 36.4 | 8,214 | — | 8,214 | 37.5 | | Bonds - corporate and other | 5,604 | 717 | 6,321 | 27.9 | 5,395 | 717 | 6,112 | 27.9 | | Property | 19 | 1,238 | 1,257 | 5.6 | — | 1,238 | 1,238 | 5.6 | | Infrastructure | — | 1,388 | 1,388 | 6.1 | — | 1,388 | 1,388 | 6.3 | | Hedge funds | 9 | 1,390 | 1,399 | 6.2 | — | 1,390 | 1,390 | 6.3 | | Derivatives | (7) | (1,799) | (1,806) | (8.0) | (7) | (1,799) | (1,806) | (8.2) | | Longevity reinsurance contracts | — | (117) | (117) | (0.5) | — | (117) | (117) | (0.5) | | Cash and liquid assets2 | (454) | 2,529 | 2,075 | 9.2 | (464) | 2,529 | 2,065 | 9.4 | | Mixed investment funds | 8 | — | 8 | — | — | — | — | — | | Other | 7 | 56 | 63 | 0.4 | — | 4 | 4 | — | | Fair value of scheme assets | 15,087 | 7,536 | 22,623 | 100.0 | 14,444 | 7,484 | 21,928 | 100.0 | | | | | | | | | | | | As at 31 December 2023 | | | | | | | | | | Equities | 116 | — | 116 | 0.5 | — | — | — | — | | Private equities | — | 2,259 | 2,259 | 9.1 | — | 2,259 | 2,259 | 9.3 | | Bonds - fixed government | 1,544 | — | 1,544 | 6.2 | 1,289 | — | 1,289 | 5.3 | | Bonds - index-linked government | 9,400 | — | 9,400 | 37.7 | 9,383 | — | 9,383 | 38.8 | | Bonds - corporate and other | 6,014 | 1,237 | 7,251 | 29.1 | 5,818 | 1,237 | 7,055 | 29.1 | | Property | 17 | 1,197 | 1,214 | 4.9 | — | 1,197 | 1,197 | 4.9 | | Infrastructure | 814 | 720 | 1,534 | 6.2 | 814 | 720 | 1,534 | 6.3 | | Hedge funds | 11 | 1,309 | 1,320 | 5.3 | — | 1,309 | 1,309 | 5.4 | | Derivatives | 25 | (1,584) | (1,559) | (6.3) | 25 | (1,584) | (1,559) | (6.4) | | Longevity reinsurance contracts | — | (131) | (131) | (0.5) | — | (131) | (131) | (0.5) | | Cash and liquid assets2 | (1,134) | 3,036 | 1,902 | 7.6 | (1,143) | 3,036 | 1,893 | 7.8 | | Mixed Investment funds | 12 | — | 12 | — | — | — | — | — | | Other | 5 | 47 | 52 | 0.2 | — | 5 | 5 | — | | Fair value of scheme assets | 16,824 | 8,090 | 24,914 | 100.0 | 16,186 | 8,048 | 24,234 | 100.0 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 358 | ## Notes to the financial statements ## Employee benefits | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Analysis of scheme assets | | | | | | | | | | | Barclays Bank PLC Total | | | | Of which relates to UKRF | | | | | | Quoted | Unquoted1 | Value | % of total fair value of scheme assets | Quoted | Unquoted1 | Value | % of total fair value of scheme assets | | | £m | £m | £m | % | £m | £m | £m | % | | As at 31 December 2024 | | | | | | | | | | Equities | 6 | — | 6 | — | — | — | — | — | | Private equities | — | 2,134 | 2,134 | 9.7 | — | 2,134 | 2,134 | 9.7 | | Bonds - fixed government | 1,316 | — | 1,316 | 6.0 | 1,306 | — | 1,306 | 6.0 | | Bonds - index-linked government | 8,225 | — | 8,225 | 37.4 | 8,214 | — | 8,214 | 37.5 | | Bonds - corporate and other | 5,406 | 717 | 6,123 | 27.9 | 5,395 | 717 | 6,112 | 27.9 | | Property | — | 1,238 | 1,238 | 5.6 | — | 1,238 | 1,238 | 5.6 | | Infrastructure | — | 1,388 | 1,388 | 6.3 | — | 1,338 | 1,338 | 6.3 | | Hedge funds | — | 1,390 | 1,390 | 6.3 | — | 1,390 | 1,390 | 6.3 | | Derivatives | (7) | (1,799) | (1,806) | (8.2) | (7) | (1,799) | (1,806) | (8.2) | | Longevity reinsurance contracts | — | (117) | (117) | (0.5) | — | (117) | (117) | (0.5) | | Cash and liquid assets2 | (464) | 2,529 | 2,065 | 9.4 | (464) | 2,529 | 2,065 | 9.4 | | Mixed investment funds | — | — | — | — | — | — | — | — | | Other | — | 16 | 16 | 0.1 | — | 4 | 4 | — | | Fair value of scheme assets | 14,482 | 7,496 | 21,978 | 100.0 | 14,444 | 7,434 | 21,878 | 100.0 | | | | | | | | | | | | As at 31 December 2023 | | | | | | | | | | Equities | 12 | — | 12 | — | — | — | — | — | | Private equities | — | 2,259 | 2,259 | 9.3 | — | 2,259 | 2,259 | 9.3 | | Bonds - fixed government | 1,299 | — | 1,299 | 5.4 | 1,289 | — | 1,289 | 5.3 | | Bonds - index-linked government | 9,391 | — | 9,391 | 38.7 | 9,383 | — | 9,383 | 38.8 | | Bonds - corporate and other | 5,821 | 1,237 | 7,058 | 29.1 | 5,818 | 1,237 | 7,055 | 29.1 | | Property | — | 1,198 | 1,198 | 4.9 | — | 1,197 | 1,197 | 4.9 | | Infrastructure | 814 | 720 | 1,534 | 6.3 | 814 | 720 | 1,534 | 6.3 | | Hedge funds | — | 1,309 | 1,309 | 5.4 | — | 1,309 | 1,309 | 5.4 | | Derivatives | 25 | (1,584) | (1,559) | (6.4) | 25 | (1,584) | (1,559) | (6.4) | | Longevity reinsurance contracts | — | (131) | (131) | (0.5) | — | (131) | (131) | (0.5) | | Cash and liquid assets2 | (1,143) | 3,036 | 1,893 | 7.8 | (1,143) | 3,036 | 1,893 | 7.8 | | Mixed Investment funds | 9 | — | 9 | — | — | — | — | — | | Other | — | 10 | 10 | — | — | 5 | 5 | — | | Fair value of scheme assets | 16,228 | 8,054 | 24,282 | 100.0 | 16,186 | 8,048 | 24,234 | 100.0 | Notes 1    Valuation of unquoted assets is provided by the underlying managers or qualified independent valuers. The valuation for some of the unquoted assets, in particular private equities, is based on valuations as at 30 September 2024 adjusted by cash flows, these being the latest available valuations as at the point of publication. All valuations are determined in accordance with relevant industry guidance. Barclays Bank Group does not believe these valuations will differ materially from the fair value, in the context of the overall UKRF asset size. 2    Cash and liquid assets for the UKRF consists of £404m (2023: £354m) cash, £80m ( 2023: £91m) receivables/payables, £2,529m (2023: £3,036m) pooled cash funds and £(948)m (2023: £(1,588)m) repurchase agreements. Included within the fair value of UKRF scheme assets was nil (2023: nil) relating to shares in Barclays PLC and nil (2023: nil) relating to bonds issued by Barclays PLC or Barclays Bank PLC. The UKRF also invests in pooled investment vehicles which may hold shares or debt issued by Barclays PLC. At 31 December 2024, 38% of the UKRF assets were invested in liability-driven investment strategies; primarily UK gilts as well as interest rate and inflation swaps. These swaps are used to better match the assets to its liabilities. The swaps are used to reduce the scheme’s inflation and duration risks against its liabilities. The UKRF employs derivative instruments, where appropriate, to match assets more closely to liabilities, or to achieve a desired exposure or return. The value of assets shown reflects the assets held by the UKRF, with any derivative holdings reflected on a fair value basis. The UKRF uses repurchase agreements and reverse repurchase agreements to achieve the Trustee’s liability hedging objective. Investment managers are allowed to undertake repo transactions on the UKRF’s existing gilt holdings to raise cash with which to buy additional gilts for efficient portfolio management; and reverse repo transactions to receive gilts and be paid a fee for providing cash. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 359 | ## Notes to the financial statements ## Employee benefits The UKRF has a comprehensive and robust liquidity framework in place. The aim of the liquidity framework is to ensure that pension payments and other liquidity outflows are paid in due course, sufficient liquidity and collateral is maintained to achieve strategic allocation targets and that all liquidity outflows/collateral needs are covered without forced sale or strategic asset allocation changes. The UKRF holds two longevity reinsurance contracts covering 70% of the current pensioner liabilities. The contracts provide income to the UKRF if pensions are paid out for longer than expected. At 31 December 2024, the combined value of the contracts was £(117)m (2023: £(131)m). The negative value reflects the estimated impact of changes in the reinsurance market, demographic assumptions and risk premia since the contracts were entered into by the UKRF. For information on the UKRF Trustee’s approach to Responsible Investment and Climate Risk, in the context of managing the UKRF, please refer to the UKRF Trustee website at https://epa.towerswatson.com/accounts/barclays/public/barclays-bank-responsible-investment- policy/. Triennial valuation The UKRF annual funding update as at 30 September 2024 showed a funding surplus of £1.75bn compared to £2.02bn as at 30 September 2023. The main reasons for the decrease were the impact of investment returns relative to liabilities and benefit accrual exceeding contributions received. The main differences between the funding and accounting assumptions are a different approach to setting the discount rate and a more conservative life expectancy assumption for funding. As part of the 2022 triennial valuation, the Trustee and Barclays Bank PLC agreed an annual adequacy test on a basis more prudent than the IAS 19 or funding bases. Should the UKRF be sufficiently funded on this basis, the regular employer contributions to the UKRF to fund future Afterwork accrual will not be required in the following calendar year. The test will be reviewed at the 2025 triennial valuation. The test was passed in September, so no regular employer contributions are required for 2025. The next funding valuation of the UKRF is due to be completed in 2026 with an effective date of 30 September 2025. Other support measures agreed which remain in place Collateral – Barclays Bank PLC has entered into an agreement with the UKRF Trustee to provide collateral to cover at least 100% of any funding deficit with an overall cap of £9bn, to provide security if the UKRF is in a funding deficit. The collateral pool is currently zero reflecting the surplus funding position. The arrangement provides the UKRF Trustee with dedicated access to the pool of assets in the event of Barclays Bank PLC not paying any required deficit reduction contribution to the UKRF or in the event of Barclays Bank PLC’s insolvency. Participation – As permitted under the Financial Services and Markets Act 2000 (Banking Reform) (Pensions) Regulations 2015, currently Barclays Bank UK PLC is a participating employer in the UKRF and will remain so during a transitional phase as set out in a deed of participation. Barclays Bank PLC, a fellow subsidiary of Barclays PLC, is the principal employer of the UKRF. In the event of Barclays Bank PLC’s insolvency during this period, provision has been made to require Barclays Bank UK PLC to become the principal employer of the UKRF. Barclays Bank PLC’s Section 75 debt would be triggered by the insolvency (the debt would be calculated after allowing for the payment to the UKRF of any collateral above). To meet the requirements of the Financial Services and Markets Act 2000 (Banking Reform) (Pensions) Regulations 2015 it is Barclays' intention to sectionalise the UKRF in July 2025, creating two separate sections – the Barclays Bank Section and the Barclays UK Section (with Barclays Bank UK PLC participating in the Barclays UK Section only). This will not change the financial position of the UKRF from a consolidated Barclays PLC Group perspective, and members’ benefits will be unchanged as a result of the actions Barclays is taking to meet its regulatory obligations. Defined benefit contributions paid to the UKRF were £22m (2023: £39m). There were nil (2023: nil) Section 75 contributions included within the Barclays Bank Group’s contributions paid as no participating employers left the UKRF in 2024. The Barclays Bank Group’s expected contribution to the UKRF in respect of defined benefits in 2025 is £4m. In addition, the expected contribution to UK defined contribution schemes in 2025 is £3m to the UKRF and £67m to the BPSP. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 360 | ## Notes to the financial statements ## Scope of consolidation The section presents information on the Barclays Bank Group’s investments in subsidiaries, joint ventures and associates and its interests in ![]() structured entities. Detail is also given on securitisation transactions the Barclays Bank Group has entered into and arrangements that are held off-balance sheet. 31 Principal subsidiaries The significant judgements used in applying this policy are set out below. Accounting for investment in subsidiaries ![]() In the individual financial statements of Barclays Bank PLC, investments in subsidiaries are stated at cost less impairment. Investments in subsidiaries, the majority of which are engaged in banking related activities, are recorded on the balance sheet at historical cost less any impairment. At 31 December 2024 the historical cost of investments in subsidiaries was £23,009m (2023: £22,185m), and impairment allowances recognised against these investments totalled £2,262m (2023: £3,080m). The increase in the balance sheet value of £1,642m in the year was driven by an increase in the cost of investments in subsidiaries totalling £824m resulting from capital injections and AT1 issuances and a decrease in impairment of £818m driven by the reversal of £1bn impairment in Barclays Bank Ireland PLC.  During the year, Barclays Bank PLC injected €50m (2023: €150m) of additional capital into its subsidiary Barclays Bank Ireland PLC by way of a subscription for ordinary shares. The capital injection in 2023 was fully impaired during the year ending 31 December 2023.  As at the 31 December 2024, the cost of investment in Barclays Bank Ireland PLC is £3,521m being historical cost of £5,140m and accumlated impairment of £1,619m. In May 2023, Barclays Bank PLC acquired the entire issued share capital of Barclays Asset Management Limited and Barclays Investment Solutions Limited, part of the Wealth & Investment Management business, along with certain other assets and liabilities, business guarantees and business contracts (together with the transfer of associated employees of Barclays Bank UK PLC) from Barclays Bank UK PLC. Consideration of £3 was paid by Barclays Bank PLC, which represented the fair value of the transferring businesses. Barclays Bank Group recognised the difference between the carrying value of the net assets acquired and the cash consideration paid directly in equity as a £124m merger reserve within Other reserves. At the end of each reporting period an impairment review is undertaken in respect of investments in the ordinary shares of subsidiaries. Impairment is indicated where the investment exceeds the recoverable amount. The recoverable amount is calculated as a value in use (VIU) which is derived from the present value of future cash flows expected to be received from the investment. The VIU calculations use forecast profits based on financial budgets approved by management, covering a five-year period as an approximation of future cash flows discounted using a discount rate appropriate to the subsidiary being tested. A terminal growth rate is then applied to the cash flows thereafter, which is based upon expectations of future inflation rates. The 2024 review resulted in the reversal of £1bn of impairment for Barclays Bank Ireland PLC due to an improved performance expectation, the impairment had originally been identified as part of the 2022 review.  The 2023 review did not result in any change in the 2022 impairment position. Principal subsidiaries of the Barclays Bank Group are set out below. This includes those subsidiaries that are most significant in the context of the Barclays Bank Group’s business, results or financial position. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Company Name | Principal place of business or incorporation | Nature of business | Percentage of voting rights held | Non-controlling interests - proportion of ownership interests | Non-controlling interests - proportion of voting interests | | % | % | % | | Barclays Bank Delaware | United States | Credit card issuer | 100 | — | — | | Barclays Bank Ireland PLC | Ireland | Banking | 100 | — | — | | Barclays Capital Inc. | United States | Securities dealing | 100 | — | — | | Barclays Capital Securities Limited | United Kingdom | Securities dealing | 100 | — | — | | Barclays Securities Japan Limited | Japan | Securities dealing | 100 | — | — | | Barclays US LLC | United States | Holding company | 100 | — | — | The country of registration or incorporation is also the principal area of operation of each of the above subsidiaries. Ownership interests are in some cases different to voting interests due to the existence of non-voting equity interests, such as preference shares. Significant judgements and assumptions used to determine the scope of the consolidation Determining whether the Barclays Bank Group has control of an entity is generally straightforward based on ownership of the majority of the voting capital. However, in certain instances, this determination will involve significant judgement, particularly in the case of structured entities where voting rights are often not the determining factor in decisions over the relevant activities. This judgement will involve assessing the purpose and design of the entity. It will also often be necessary to consider whether the Barclays Bank Group, or another involved party with power over the relevant activities, is acting as a principal in its own right or as an agent on behalf of others. There is also often considerable judgement involved in the ongoing assessment of control over structured entities. In this regard, where market conditions have deteriorated such that the other investors’ exposures to the structure’s variable returns have been substantively eliminated, the Barclays Bank Group may conclude that the managers of the structured entity are acting as its agent and therefore will consolidate the structured entity. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 361 | ## Notes to the financial statements ## Scope of consolidation An interest in equity voting rights exceeding 50% would typically indicate that the Barclays Bank Group has control of an entity. Until 25th October 2024 Palomino Limited was excluded from consolidation despite the Group holding 100% of the voting rights as it was managed by an external counter-party and the Group was not exposed to its variable returns. Following the termination of the management agreement, as from 26th October 2024 the entity is now fully consolidated. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Company name | Country of registration or incorporation | Percentage of voting rights held (%) | Equity shareholders' funds (£m) | Retained profit for the year (£m) | | Palomino Limited | Cayman Islands | 100 | — | — | Interests relating to the entity are included in Note 32 for the year ended 31st December 2023. Significant restrictions As is typical for a group of its size and international scope, there are restrictions on the ability of the Barclays Bank Group to obtain distributions of capital, access the assets or repay the liabilities of certain members of the Barclays Bank Group due to the statutory, regulatory and contractual requirements of its subsidiaries and due to the protective rights of non-controlling interests. These are considered below. Regulatory requirements The Barclays Bank Group’s principal subsidiary companies have assets and liabilities before intercompany eliminations of £515bn (2023: £524bn) and £490bn (2023: £500bn) respectively. Certain classes of these assets and liabilities are subject to prudential regulation and regulatory capital requirements in the countries in which the subsidiaries are regulated. These prudential and regulatory capital requirements require entities to maintain minimum capital levels which cannot be returned to the parent company, Barclays Bank PLC, on a going concern basis. In order to meet capital requirements, subsidiaries may issue certain equity accounted and debt accounted financial instruments such as Tier 1 and Tier 2 capital instruments and other forms of subordinated liabilities. Refer to Note 25 and Note 26 for particulars of these instruments. These instruments may be subject to cancellation clauses or preference share restrictions that would limit the ability of the entity to repatriate the capital on a timely basis. Liquidity requirements Regulated subsidiaries of the Barclays Bank Group are required to meet PRA or local regulatory requirements pertaining to liquidity. These regulated subsidiaries include Barclays Capital Securities Limited (which is regulated for liquidity matters on a combined basis with Barclays Bank PLC under a Domestic Liquidity Sub-Group (DoLSub) arrangement), Barclays Bank Ireland PLC, Barclays Capital Inc. and Barclays Bank Delaware Inc. See page [213](#ia16d0659cd524c01ae655d82fa382c3d_295) for further details of liquidity requirements. Statutory requirements The Barclays Bank Group’s subsidiaries are subject to statutory requirements not to make distributions of capital and unrealised profits and generally to maintain solvency. These requirements restrict the ability of subsidiaries to make remittances of dividends to Barclays Bank PLC, the parent, except in the event of a legal capital reduction or liquidation. In most cases the regulatory restrictions referred to above exceed the statutory restrictions. Asset encumbrance The Barclays Bank Group uses its financial assets to raise finance in the form of securitisations and through the liquidity schemes of central banks, as well as to provide security to the UK Retirement Fund. Once encumbered, the assets are not available for transfer around the Barclays Bank Group. The assets typically affected are disclosed in Note 35. Other restrictions The Barclays Bank Group is required to maintain cash balances with central banks and other regulatory authorities and these amounted to £2,317m (2023: £2,973m). 32 Structured entities A structured entity is an entity in which voting or similar rights are not the dominant factor in deciding who controls the entity. An example is when voting rights may relate to administrative tasks only, with the relevant activities of the entity being directed by means of contractual arrangements. Structured entities are generally created to achieve a narrow and well-defined objective with restrictions around their ongoing activities. Depending on the Barclays Bank Group’s power over the activities of the entity and its exposure to and ability to influence its own returns, it may consolidate the entity. In other cases, it may sponsor or have exposure to such an entity but not consolidate it. Consolidated structured entities The Barclays Bank Group has contractual arrangements which may require it to provide financial support to the following types of consolidated structured entities: ▪ Securitisation vehicles: The Barclays Bank Group uses securitisation as a source of financing and a means of risk transfer. Where entities are controlled by the Barclays Bank Group, they are consolidated. Refer to Note 34 for further detail. ▪ Commercial paper (CP) conduits: These entities issue CP and use the proceeds to lend to clients as part of the Barclays Bank Group's multi-seller conduit programme. The Barclays Bank Group has provided £23.9bn (2023: £22.4bn) in contractual liquidity facilities to the CP conduits that the Barclays Bank Group consolidates. These amounts represent the maximum the conduits can lend externally. The amounts of CP conduit lending (drawn and undrawn) to unconsolidated structured entities can be seen in 'Other interests in unconsolidated structured entities' under multi-seller conduit programme in the 'Nature of interest' table. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 362 | ## Notes to the financial statements ## Scope of consolidation ▪ Tender Option Bond (TOB) trusts: During 2024, the Barclays Bank Group provided undrawn liquidity facilities of £4.0bn (2023: £3.7bn) to consolidated TOB trusts. These trusts invest in fixed income instruments issued by state, local or other municipalities in the United States, funded by long-term senior floating-rate notes and junior residual securities. Unconsolidated structured entities The term ‘unconsolidated structured entities’ refers to structured entities not controlled by the Barclays Bank Group, and are established either by Barclays Bank Group or a third party. An interest in a structured entity is any form of contractual or non-contractual involvement which creates variability in returns arising from the performance of the entity for the Barclays Bank Group. Such interests include holdings of debt or equity securities, derivatives that transfer financial risks from the entity to the Barclays Bank Group, lending, loan commitments, financial guarantees and investment management agreements. Barclays Bank Group enters into transactions with unconsolidated structured entities in the normal course of business to facilitate customer transactions, to provide risk management services and for specific investment opportunities. This is predominantly within the Barclays Investment Bank business. Structured entities may take the form of funds, trusts, securitisation vehicles, and private investment companies. The largest transactions for Barclays Bank Group include loans and derivatives with hedge fund structures and special purpose entities, multi-seller conduit lending, holding notes issued by securitisation vehicles and facilitating customer requirements through funds. The nature and extent of the Barclays Bank Group’s interests in structured entities is summarised below: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Summary of interests in unconsolidated structured entities | | | | | | | | Secured financing | Short-term traded interests | Traded derivatives | Other interests | Total | | | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | Assets | | | | | | | Trading portfolio assets | — | 23,941 | — | — | 23,941 | | Financial assets at fair value through the income statement | 87,546 | — | — | 1,268 | 88,814 | | Derivative financial instruments | — | — | 6,540 | — | 6,540 | | Financial assets at fair value through other comprehensive income | — | — | — | 4,852 | 4,852 | | Loans and advances at amortised cost | — | — | — | 46,554 | 46,554 | | Debt securities at amortised cost | — | — | — | 15,438 | 15,438 | | Reverse repurchase agreements and other similar secured lending | 3,145 | — | — | — | 3,145 | | Other assets | — | — | — | — | — | | Total assets | 90,691 | 23,941 | 6,540 | 68,112 | 189,284 | | Liabilities | | | | | | | Derivative financial instruments | — | — | 6,978 | — | 6,978 | | | | | | | | | As at 31 December 2023 | | | | | | | Assets | | | | | | | Trading portfolio assets | — | 15,482 | — | — | 15,482 | | Financial assets at fair value through the income statement | 74,551 | — | — | 1,099 | 75,650 | | Derivative financial instruments | — | — | 5,685 | — | 5,685 | | Financial assets at fair value through other comprehensive income | — | — | — | 838 | 838 | | Loans and advances at amortised cost | — | — | — | 34,162 | 34,162 | | Debt securities at amortised cost | — | — | — | 9,217 | 9,217 | | Reverse repurchase agreements and other similar secured lending | 896 | — | — | — | 896 | | Other assets | — | — | — | 130 | 130 | | Total assets | 75,447 | 15,482 | 5,685 | 45,446 | 142,060 | | Liabilities | | | | | | | Derivative financial instruments | — | — | 6,173 | — | 6,173 | Secured financing arrangements, short-term traded interests and traded derivatives are typically managed under Market risk management policies described in the Market risk management section which includes an indication of the change of risk measures compared to last year. For this reason, the total assets of these entities are not considered meaningful for the purposes of understanding the related risks and so have not been presented. Other interests include conduits and lending where the interest is driven by normal customer demand. As at 31 December 2024, Barclays Bank Group entered into transactions with approximately 5,000 (2023: 6,000) structured entities. Secured financing The Barclays Bank Group routinely enters into reverse repurchase contracts, margin lending, stock borrowing and similar arrangements on normal commercial terms where the counterparty to the arrangement is a structured entity. Due to the nature of these arrangements, especially the transfer of collateral and ongoing margining, the Barclays Bank Group is able to manage its variable exposure to the performance of the structured entity counterparty. The counterparties included in secured financing mainly include hedge fund limited structures, investment companies and special purpose entities. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 363 | ## Notes to the financial statements ## Scope of consolidation Short-term traded interests As part of its market making activities, the Barclays Bank Group buys and sells interests in structured vehicles, which are predominantly debt securities issued by asset securitisation vehicles. Such interests are typically held individually or as part of a larger portfolio for no more than 90 days. In such cases, the Barclays Bank Group typically has no other involvement with the structured entity other than the securities it holds as part of trading activities and its maximum exposure to loss is restricted to the carrying value of the asset. Traded derivatives The Barclays Bank Group enters into a variety of derivative contracts with structured entities which reference market risk variables such as interest rates, equities, foreign exchange rates and credit indices among other things. The main derivative types that are considered interests in structured entities include equity options, index-based and entity specific credit default swaps, and total return swaps. Interest rate swaps and foreign exchange derivatives that are not complex and which expose the Barclays Bank Group to insignificant credit risk by being senior in the payment waterfall of a securitisation and derivatives that are determined to introduce risk or variability to a structured entity are not considered to be an interest in an entity and have been excluded from the disclosures. A description of the types of derivatives and the risk management practices are detailed in Note 13. The risk of loss may be mitigated through ongoing margining requirements as well as a right to cash flows from the structured entity which are senior in the payment waterfall. Such margining requirements are consistent with market practice for many derivative arrangements and in line with the Barclays Bank Group’s normal credit policies. Derivative transactions require the counterparty to provide cash or other collateral under margining agreements to mitigate counterparty credit risk. The Barclays Bank Group is mainly exposed to settlement risk on these derivatives which is mitigated through daily margining. Total notional contract amounts were £712,793m (2023: £335,552m). Except for credit default swaps where the maximum exposure to loss is the swap notional amount, it is not possible to estimate the maximum exposure to loss in respect of derivative positions as the fair value of derivatives is subject to changes in market rates of interest, exchange rates and credit indices which by their nature are uncertain. In addition, the Barclays Bank Group’s losses would be subject to mitigating action under its traded market risk and credit risk policies that require the counterparty to provide collateral in cash or other assets in most cases. Other interests in unconsolidated structured entities The Barclays Bank Group’s interests in structured entities not held for the purposes of short-term trading activities are set out below, summarised by the nature of the interest and limited to significant categories, based on maximum exposure to loss. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Nature of interest | | | | | | | | | | | | | | | Multi-seller conduit programme | Lending | Other | Total | Of which: Barclays Bank Group owned, not consolidated entities1 | | | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | Financial assets at fair value through the income statement | — | — | 1,268 | 1,268 | — | | Financial assets at fair value through other comprehensive income | — | 3,206 | 1,646 | 4,852 | — | | Loans and advances at amortised cost | 11,103 | 35,451 | — | 46,554 | — | | Debt securities at amortised cost | — | — | 15,438 | 15,438 | — | | Other assets | — | — | — | — | — | | Total on-balance sheet exposures | 11,103 | 38,657 | 18,352 | 68,112 | — | | Total off-balance sheet notional amounts | 11,530 | 25,733 | — | 37,263 | — | | Maximum exposure to loss | 22,633 | 64,390 | 18,352 | 105,375 | — | | Total assets of the entity | 41,431 | 199,000 | 52,369 | 292,800 | — | | | | | | | | | As at 31 December 2023 | | | | | | | Financial assets at fair value through the income statement | — | 3 | 1,096 | 1,099 | 907 | | Financial assets at fair value through other comprehensive income | — | 638 | 200 | 838 | — | | Loans and advances at amortised cost | 8,903 | 25,259 | — | 34,162 | — | | Debt securities at amortised cost | — | — | 9,217 | 9,217 | — | | Other assets | 38 | 88 | 4 | 130 | — | | Total on-balance sheet exposures | 8,941 | 25,988 | 10,517 | 45,446 | 907 | | Total off-balance sheet notional amounts | 11,947 | 12,581 | — | 24,528 | — | | Maximum exposure to loss | 20,888 | 38,569 | 10,517 | 69,974 | 907 | | Total assets of the entity | 35,439 | 160,438 | 84,107 | 279,984 | 1,869 | Note 1    Comprises of Barclays Bank Group owned, not consolidated structured entities per IFRS 10 Consolidated Financial Statements, and Barclays Bank Group sponsored entities. Refer to Note 31 Principal subsidiaries for more details on consolidation. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 364 | ## Notes to the financial statements ## Scope of consolidation Maximum exposure to loss Unless specified otherwise below, the Barclays Bank Group’s maximum exposure to loss is the total of its on-balance sheet positions and its off-balance sheet arrangements, being loan commitments and financial guarantees. Exposure to loss is mitigated through collateral, financial guarantees, the availability of netting and credit protection held. Multi-seller conduit programme The Barclays Bank Group's multi-seller conduit programme engages in providing financing to various clients and holds whole or partial interests in pools of receivables or similar obligations. These instruments are protected from loss through over-collateralisation, seller guarantees, or other credit enhancements provided to the conduit entity. The Barclays Bank Group’s off-balance sheet exposure included in the table above represents liquidity facilities that are provided to the conduit for the benefit of the holders of the commercial paper issued by the conduit and will only be drawn where the conduit is unable to access the commercial paper market. If these liquidity facilities are drawn, the Barclays Bank Group is protected from loss through over-collateralisation, seller guarantees, or other credit enhancements provided to the conduit. Lending The portfolio includes lending provided by the Barclays Bank Group to unconsolidated structured entities in the normal course of its lending business to earn income in the form of interest and lending fees and includes loans to structured entities that are generally collateralised by property, equipment or other assets. All loans are subject to the Barclays Bank Group’s credit sanctioning process. Collateral arrangements are specific to the circumstances of each loan with additional guarantees and collateral sought from the sponsor of the structured entity for certain arrangements. During the year, the Barclays Bank Group incurred immaterial impairment against such facilities. Other This includes fair value loans with structured entities where the market risk is materially hedged with corresponding derivative contracts, interests in debt securities issued by securitisation vehicles and drawn and undrawn loan facilities to these entities. In addition, 'Other' includes investment funds with interests restricted to management fees based on the performance of the fund and trusts held on behalf of beneficiaries with interests restricted to unpaid fees. Assets transferred to sponsored unconsolidated structured entities The Barclays Bank Group is considered to sponsor another entity if; it had a key role in establishing that entity, it transferred assets to the entity, the Barclays name appears in the name of the entity or it provides guarantees on the entity’s performance. As at 31 December 2024, assets transferred to sponsored unconsolidated structured entities were £890m (2023: £1,420m). 33 Investments in associates and joint ventures There are no individually significant investments in joint ventures or associates held by Barclays Bank Group. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 2024 | | | 2023 | | | | | Associates | Joint ventures | Total | Associates | Joint ventures | Total | | | £m | £m | £m | £m | £m | £m | | Equity accounted (Group) | 14 | — | 14 | 22 | — | 22 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 2024 | | | 2023 | | | | | Associates | Joint ventures | Total | Associates | Joint ventures | Total | | | £m | £m | £m | £m | £m | £m | | Equity accounted (Parent) | 12 | — | 12 | 12 | — | 12 | Summarised financial information for the Barclays Bank Group’s equity accounted associates and joint ventures is set out below. The amounts shown are the Barclays Bank Group’s share of the net income of the investees for the year ended 31 December 2024, with the exception of certain undertakings for which the amounts are based on accounts made up to dates not earlier than three months before the balance sheet date. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Associates | | | Joint ventures | | | | | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | | | £m | £m | £m | £m | £m | £m | | (Loss)/Profit from continuing operations | — | (4) | 3 | — | — | — | | Other comprehensive income | — | — | — | — | — | — | | Total comprehensive (loss)/income from continuing operations | — | (4) | 3 | — | — | — | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 365 | ## Notes to the financial statements ## Scope of consolidation 34 Securitisations Accounting for securitisations ![]() The Barclays Bank Group uses securitisations as a source of finance and a means of risk transfer. Such transactions generally result in the transfer of contractual cash flows from portfolios of financial assets to holders of issued debt securities. Securitisations may, depending on the individual arrangement, result in continued recognition of the securitised assets and the recognition of the debt securities issued in the transaction; lead to partial continued recognition of the assets to the extent of the Barclays Bank Group’s continuing involvement in those assets or lead to derecognition of the assets and the separate recognition, as assets or liabilities, of any rights and obligations created or retained in the transfer. Full derecognition only occurs when the Barclays Bank Group transfers both its contractual right to receive cash flows from the financial assets, or retains the contractual rights to receive the cash flows, but assumes a contractual obligation to pay the cash flows to another party without material delay or reinvestment, and also transfers substantially all the risks and rewards of ownership, including credit risk, prepayment risk and interest rate risk. In the course of its normal banking activities, the Barclays Bank Group makes transfers of financial assets, either where legal rights to the cash flows from the asset are passed to the counterparty or beneficially, where the Barclays Bank Group retains the rights to the cash flows but assumes a responsibility to transfer them to the counterparty. Depending on the nature of the transaction, this may result in derecognition of the assets in their entirety, partial derecognition or no derecognition of the assets subject to the transfer. A summary of the main transactions, and the assets and liabilities and the financial risks arising from these transactions, is set out below: Transfers of financial assets that do not result in derecognition Securitisations The Barclays Bank Group is party to securitisation transactions involving its credit card balances, personal and mortgage loans. In these transactions, the assets, interests in the assets, or beneficial interests in the cash flows arising from the assets, are transferred to a special purpose entity, which then issues interest bearing debt securities to third party investors. Securitisations may, depending on the individual arrangement, result in continued recognition of the securitised assets and the recognition of the debt securities issued in the transaction. Partial continued recognition of the assets to the extent of the Barclays Bank Group’s continuing involvement in those assets can also occur or derecognition of the assets and the separate recognition, as assets or liabilities, of any rights and obligations created or retained in the transfer. The following table shows the carrying amount of securitised assets that have not resulted in full derecognition, together with the associated liabilities, for each category of asset on the balance sheet: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | 2024 | | | | 2023 | | | | | | Assets | | Liabilities | | Assets | | Liabilities | | | | Carrying amount | Fair value | Carrying amount | Fair value | Carrying amount | Fair value | Carrying amount | Fair value | | | £m | £m | £m | £m | £m | £m | £m | £m | | Barclays Bank Group | | | | | | | | | | Loans and advances at amortised cost | | | | | | | | | | Credit cards, unsecured loans and other retail lending | 6,575 | 7,158 | (1,575) | (1,579) | 6,317 | 6,863 | (2,336) | (2,303) | | Financial assets at FVTPL | | | | | | | | | | Mortgage Loans | 576 | 576 | — | — | 452 | 452 | — | — | | Assets included in disposal groups classified as held for sale | | | | | | | | | | Personal Loans | 846 | 826 | — | — | — | — | — | — | | Total | 7,997 | 8,560 | (1,575) | (1,579) | 6,769 | 7,315 | (2,336) | (2,303) | Balances included within loans and advances at amortised cost represent securitisations where substantially all the risks and rewards of the assets have been retained by Barclays Bank Group and balances included within Financial assets at FVTPL and Assets included in disposal groups classified as held for sale represent securitisations where the risks and rewards are neither substantially transferred nor retained. The relationship between the transferred assets and the associated liabilities is that holders of notes may only look to cash flows from the securitised assets for payments of principal and interest due to them under the terms of their notes, although the contractual terms of their notes may be different to the maturity and interest of the transferred assets. If the Barclays Bank Group transfers a financial asset but does not transfer or retain substantially all the risk and rewards of the asset and retains control over it, the transferred assets are recognised to the extent of Barclays Bank Group's continuing involvement. Total Financial assets of £11,951m (2023: £3,353m) were originally tran sferred in this manner and the carrying value of the assets representing continued involvement is included in the table above. For transfers of assets in relation to repurchase agreements, see Note 35. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 366 | ## Notes to the financial statements ## Scope of consolidation Continuing involvement in financial assets that have been derecognised In some cases, the Barclays Bank Group may have transferred a financial asset in its entirety but may have continuing involvement in it. This arises in asset securitisations where loans and asset backed securities were derecognised as a result of the Barclays Bank Group’s involvement with asset backed securities, residential mortgage backed securities and commercial mortgage backed securities. Continuing involvement largely arises from providing financing into these structures in the form of retained notes, which do not bear first losses. The table below shows the potential financial implications of such continuing involvement: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Continuing involvement1 | | | Gain from continuing involvement | | | | Carrying amount | Fair value | Maximum exposure to loss 2 | For the year ended | Cumulative to 31 December | | Type of transfer | £m | £m | £m | £m | £m | | 2024 | | | | | | | Asset backed securities | 53 | 53 | 130 | 1 | 1 | | Residential mortgage backed securities | 3,439 | 3,437 | 3,439 | 155 | 231 | | Commercial mortgage backed securities | 377 | 334 | 377 | 3 | 21 | | Total | 3,869 | 3,824 | 3,946 | 159 | 253 | | | | | | | | | 2023 | | | | | | | Asset backed securities | 2 | 2 | 2 | — | 3 | | Residential mortgage backed securities | 1,158 | 1,156 | 1,158 | 57 | 75 | | Commercial mortgage backed securities | 392 | 341 | 392 | 3 | 19 | | Total | 1,552 | 1,499 | 1,552 | 60 | 97 | Notes 1  Assets which represent the Barclays Bank Group’s continuing involvement in derecognised assets are recorded in Loans and advances at amortised cost and Debt securities at FVTPL. 2  Maximum exposure to loss includes notional value of undrawn loan commitment, if any. 35 Assets pledged, collateral received and assets transferred Assets are pledged or transferred as collateral to secure liabilities under repurchase agreements, securitisations and stock lending agreements or as security deposits relating to derivatives. Assets transferred are non-cash assets transferred to a third party that do not qualify for derecognition from the Barclays Bank Group’s balance sheet, for example because the Barclays Bank Group retains substantially all the exposure to those assets under an agreement to repurchase them in the future for a fixed price. Where non-cash assets are pledged or transferred as collateral for cash received, the asset continues to be recognised in full, and a related liability is also recognised on the balance sheet. Where non-cash assets are pledged or transferred as collateral in an exchange for non-cash assets, the transferred asset continues to be recognised in full, and there is no associated liability as the non-cash collateral received is not recognised on the balance sheet. The Barclays Bank Group is unable to use, sell or pledge the transferred assets for the duration of the transaction and remains exposed to interest rate risk and credit risk on these pledged assets. Unless stated, the counterparty's recourse is not limited to the transferred assets. Collateralised transactions, such as securities lending and borrowing, repurchase and derivative transactions are conducted in accordance with standard terms which are customary in the market. The following table summarises the nature and carrying amount of the assets pledged as security: | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | Cash collateral | 72,415 | 70,007 | | Loans and advances at amortised cost | 41,205 | 46,902 | | Trading portfolio assets | 107,249 | 117,696 | | Financial assets at fair value through the income statement | 5,729 | 9,847 | | Financial assets at fair value through other comprehensive income | 20,420 | 24,118 | | Assets pledged | 247,018 | 268,570 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 367 | ## Notes to the financial statements ## Scope of consolidation | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | Cash collateral | 57,151 | 55,797 | | Loans and advances at amortised cost | 44,797 | 48,745 | | Trading portfolio assets | 60,727 | 73,647 | | Financial assets at fair value through the income statement | 3,056 | 4,277 | | Financial assets at fair value through other comprehensive income | 27,294 | 34,143 | | Assets pledged | 193,025 | 216,609 | The following table summarises the transferred financial assets and the associated liabilities. The transferred assets represents the gross carrying value of the assets pledged and the associated liabilities represents the IFRS balance sheet value of the related liability recorded on the balance sheet. | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | Transferred assets | Associated liabilities | | | £m | £m | | At 31 December 2024 | | | | Derivatives | 74,307 | (74,307) | | Repurchase agreements | 60,564 | (40,173) | | Securities lending arrangements | 104,450 | — | | Other | 7,697 | (7,271) | | | 247,018 | (121,751) | | | | | | At 31 December 2023 | | | | Derivatives | 77,102 | (77,102) | | Repurchase agreements | 69,740 | (41,916) | | Securities lending arrangements | 115,909 | — | | Other | 5,819 | (5,188) | | | 268,570 | (124,206) | | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | | | | | Transferred assets | Associated liabilities | | | £m | £m | | At 31 December 2024 | | | | Derivatives | 58,121 | (58,121) | | Repurchase agreements | 50,013 | (32,103) | | Securities lending arrangements | 79,473 | — | | Other | 5,418 | (5,418) | | | 193,025 | (95,642) | | | | | | At 31 December 2023 | | | | Derivatives | 62,017 | (62,017) | | Repurchase agreements | 61,696 | (37,270) | | Securities lending arrangements | 90,097 | — | | Other | 2,799 | (2,799) | | | 216,609 | (102,086) | For repurchase agreements the difference between transferred assets and associated liabilities is predominantly due to IFRS netting. Included within Other are agreements where a counterparty's recourse is limited to the transferred assets. The relationship between the gross transferred assets and the associated liabilities is that holders of notes may only look to cash flows from the securitised assets for payments of principal and interest due to them under the terms of their notes. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 368 | ## Notes to the financial statements ## Scope of consolidation | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Carrying value | | Fair value | | | | | Transferred assets | Associated liabilities | Transferred assets | Associated liabilities | Net position | | | £m | £m | £m | £m | £m | | Barclays Bank Group | | | | | | | 2024 | | | | | | | Recourse to transferred assets only | 6,575 | (1,575) | 7,158 | (1,579) | 5,579 | | 2023 | | | | | | | Recourse to transferred assets only | 6,769 | (2,336) | 7,315 | (2,303) | 5,012 | The Barclays Bank Group has an additional £3.8bn (2023: £2.7bn ) of loans and advances within its asset backed funding programmes that can readily be used to raise additional secured funding and are available to support future issuances. Collateral held as security for assets Under certain transactions, including reverse repurchase agreements and stock borrowing transactions, the Barclays Bank Group is allowed to resell or re-pledge the collateral held. Collateralised transactions, such as securities lending and borrowing, repurchase and derivative transactions are conducted in accordance with standard terms which are customary in the market. The fair value at the balance sheet date of collateral accepted and re-pledged to others was as follows: | | | | | --- | --- | --- | | | | | | | Barclays Bank Group | | | | 2024 | 2023 | | | £m | £m | | Fair value of securities accepted as collateral | 1,317,237 | 1,207,312 | | Of which fair value of securities re-pledged/transferred to others | 1,193,809 | 1,105,760 | | | | | | --- | --- | --- | | | | | | | Barclays Bank PLC | | | | 2024 | 2023 | | | £m | £m | | Fair value of securities accepted as collateral | 1,304,632 | 1,223,056 | | Of which fair value of securities re-pledged/transferred to others | 1,213,541 | 1,148,453 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 369 | ## Notes to the financial statements ## Other disclosure matters The notes included in this section focus on related party transactions, Auditors’ remuneration, Barclays Bank PLC (the Parent company) disclosure and Directors’ remuneration disclosure. Related parties include any subsidiaries, associates, joint ventures and Key Management Personnel. 36 Related party transactions and Directors’ remuneration Related party transactions Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions, or one other party controls both. Parent company The parent company, which is also the ultimate parent company, is Barclays PLC, which holds 100% of the issued ordinary shares of Barclays Bank PLC.  The largest group in which the results of Barclays Bank PLC are consolidated is headed by Barclays PLC, 1 Churchill Place London E14 5HP. The consolidated financial statements of Barclays PLC Group are available to the public and may be obtained from Barclays Corporate Secretariat, 1 Churchill Place London E14 5HP. Subsidiaries Transactions between Barclays Bank PLC and its subsidiaries also meet the definition of related party transactions. Where these are eliminated on consolidation, they are not disclosed in the Barclays Bank Group’s financial statements. A list of the Barclays Bank Group’s principal subsidiaries is shown in Note 31. Fellow subsidiaries Transactions between the Barclays Bank Group and other subsidiaries of the parent company also meet the definition of related party transactions. Other entities The Barclays Bank Group provides banking services to Barclays Bank Group pension funds (principally the UK Retirement Fund) and other entities, providing loans, overdrafts, interest and non-interest bearing deposits and current accounts to these entities as well as other services. Barclays Bank Group companies also provide investment management and custodian services to the Barclays Bank Group pension schemes. All of these transactions are conducted on the same terms as third party transactions. Summarised financial information for the Barclays Bank Group’s investments in associates and joint ventures is set out in Note 33. Amounts included in the Barclays Bank Group’s financial statements, in aggregate, by category of related party entity are as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Parent | Fellow subsidiaries | Pension funds | Other related parties | | | £m | £m | £m | £m | | For the year ended and as at 31 December 2024 | | | | | | Total income | (1,994) | 172 | (1) | 54 | | Operating expenses | (92) | (4,361) | — | — | | Total assets | 1,338 | 6,753 | — | 1,104 | | Total liabilities | 44,678 | 8,588 | 176 | 64 | | For the year ended and as at 31 December 2023 | | | | | | Total income | (1,712) | 164 | 1 | 52 | | Operating expenses | (89) | (4,157) | (1) | — | | Total assets | 1,338 | 7,710 | — | 1,254 | | Total liabilities | 37,862 | 7,483 | 144 | 154 | | For the year ended and as at 31 December 2022 | | | | | | Total income | (751) | 199 | 3 | (2) | | Operating expenses | (69) | (3,459) | (1) | — | Total liabilities include derivatives transacted on behalf of the pensions funds of £100m (2023: £77m). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 370 | ## Notes to the financial statements ## Other disclosure matters Amounts included in Barclays Bank PLC’s financial statements, in aggregate, by category of related party entity are as follows: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Parent | Subsidiaries | Fellow subsidiaries | Pension funds | Other related parties | | | £m | £m | £m | £m | £m | | As at 31 December 2024 | | | | | | | Total assets | 1,337 | 315,379 | 5,764 | — | 1,104 | | Total liabilities | 43,948 | 228,081 | 8,221 | 175 | 64 | | As at 31 December 2023 | | | | | | | Total assets | 1,338 | 345,289 | 4,749 | — | 1,254 | | Total liabilities | 37,655 | 241,323 | 7,152 | 143 | 154 | It is the normal practice of Barclays Bank PLC to provide its subsidiaries with support and assistance by way of guarantees, indemnities, letters of comfort and commitments, as may be appropriate, with a view to enabling them to meet their obligations and to maintain their good standing, including commitment of capital and facilities. For dividends paid to Barclays PLC see Note 10. Key Management Personnel Key Management Personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of Barclays Bank PLC (directly or indirectly) and comprise the Directors and Officers of Barclays Bank PLC, certain direct reports of the Chief Executive Officer and the heads of major business units and functions. The Barclays Bank Group provides banking services to Key Management Personnel and persons connected to them. Transactions during the year and the balances outstanding were as follows: | | | | | --- | --- | --- | | | | | | Loans outstanding | | | | | 2024 | 2023 | | | £m | £m | | As at 1 January | 10.8 | — | | Loans issued during the year1 | — | 11.1 | | Loan repayments during the year2 | — | (0.3) | | As at 31 December | 10.8 | 10.8 | Notes 1Includes loans issued to existing Key Management Personnel and new or existing loans issued to newly appointed Key Management Personnel. 2Includes loan repayments by existing Key Management Personnel and loans to former Key Management Personnel. No allowances for impairment were recognised in respect of loans to Key Management Personnel (or any connected person). | | | | | --- | --- | --- | | | | | | Deposits outstanding | | | | | 2024 | 2023 | | | £m | £m | | As at 1 January | 7.5 | 2.0 | | Deposits received during the year1 | 48.3 | 32.7 | | Deposits repaid during the year2 | (46.3) | (27.2) | | As at 31 December | 9.5 | 7.5 | Notes 1Includes deposits received from existing Key Management Personnel and new or existing deposits received from newly appointed Key Management Personnel. 2Includes deposits repaid by existing Key Management Personnel and deposits of former Key Management Personnel. Total commitments outstanding Total commitments outstanding refer to the total of any undrawn amounts on credit card and/or overdraft facilities provided to Key Management Personnel. Total commitments outstanding as at 31 December 2024 were £0.1m (2023: £0.1m). All loans to Key Management Personnel (and persons connected to them) were made in the ordinary course of business; were made on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other persons; and did not involve more than a normal risk of collectability or present other unfavourable features. Remuneration of Key Management Personnel Total remuneration awarded to Key Management Personnel below represents salaries, short term benefits and pensions contributions received during the year and awards made as part of the latest remuneration decisions in relation to the year. Costs recognised in the income statement reflect the accounting charge for the year included within operating expenses. The difference between the values awarded and the recognised income statement charge principally relates to the recognition of costs for deferred awards. Figures are provided for the period that individuals met the definition of Key Management Personnel. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 371 | ## Notes to the financial statements ## Other disclosure matters | | | | | | --- | --- | --- | --- | | | | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Salaries and other short-term benefits | 42.9 | 46.1 | 44.2 | | Pension costs | 0.2 | 0.2 | 0.2 | | Other long-term benefits | 10.8 | 10.8 | 12.1 | | Share-based payments | 21.9 | 16.3 | 16.5 | | Employer social security charges on emoluments | 7.2 | 8.2 | 7.5 | | Costs recognised for accounting purposes | 83.0 | 81.6 | 80.5 | | Employer social security charges on emoluments | (7.2) | (8.2) | (7.5) | | Other long-term benefits – difference between awards granted and costs recognised | 5.3 | 2.1 | 0.1 | | Share-based payments – difference between awards granted and costs recognised | 2.6 | 4.5 | 4.2 | | Total remuneration awarded | 83.7 | 80.0 | 77.3 | Disclosure required by the Companies Act 2006 The following information regarding the Barclays Bank PLC Board of Directors is presented in accordance with the Companies Act 2006: | | | | | | --- | --- | --- | --- | | | | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Aggregate emoluments1 | 8.3 | 7.2 | 7.1 | | Amounts paid under LTIPs2 | — | — | 0.4 | | | 8.3 | 7.2 | 7.5 | Notes 1The aggregate emoluments include amounts paid for the 2024 year. In addition, deferred share awards for 2024 with a total value at grant of £1.8m (2023: £1.5m, 2022: £2.3m) will be made to Directors which will only vest subject to meeting certain conditions. 2The figure above for "Amounts paid under LTIPs" for 2024 relates to tranches of prior year LTIP awards that were released to Directors during the year. There were no pension contributions paid to defined contribution schemes on behalf of Directors (2023: £nil, 2022: £nil). There were no notional pension contributions to defined contribution schemes. As at 31 December 2024, there were no Directors accruing benefits under a defined benefit scheme (2023: nil , 2022: nil). The aggregate amount of compensation payable to departing officers in respect of loss of office was £7,398 ( 2023: £30,519, 2022: £2,253,304). Of the figures in the table above, the amounts attributable to the highest paid Director in respect of qualifying services are as follows: | | | | | | --- | --- | --- | --- | | | | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Aggregate emoluments1 | 4.3 | 3.6 | 3.6 | | Amounts paid under LTIPs | — | — | — | | | 4.3 | 3.6 | 3.6 | Note 1The aggregate emoluments include amounts paid for the 2024 year. In addition, a deferred share award for 2024 with a value at grant of £1.1m (2023: £1m, 2022: £1.5m) will be made to the highest paid Director which will only vest subject to meeting certain conditions. There were no actual pension contributions paid to defined contribution schemes on behalf of the highest paid Director ( 2023: £nil, 2022: £nil). There were no notional pension contributions to defined contribution schemes (2023: £nil , 2022: £nil). Advances and credit to Directors and guarantees on behalf of Directors In accordance with Section 413 of the Companies Act 2006, the total amount of advances and credits made available in 2024 to persons who served as Directors during the year was £nil (2023: £0.1m). The total value of guarantees entered into on behalf of Directors during 2024 was £nil (2023: £nil). | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 372 | ## Notes to the financial statements ## Other disclosure matters 37 Disposals of subsidiaries There were no disposals of subsidiaries in 2024 or 2023. During 2022, Barclays Bank PLC sold its direct ownership of subsidiaries Capton Investments Limited and Hawkins to Roder Investment No 1 Limited and Roder investment No 2 Limited recording gains of £43m and £75m respectively. 38 Auditor’s remuneration Auditor’s remuneration is included within consultancy, legal and professional fees in administration and general expenses and comprises: | | | | | | --- | --- | --- | --- | | | | | | | | 2024 | 2023 | 2022 | | | £m | £m | £m | | Audit of the Barclays Bank Group's annual accounts | 23 | 22 | 20 | | Other services: | | | | | Audit of the Barclays Bank PLC subsidiaries1 | 19 | 18 | 18 | | Other audit related fees2 | 10 | 8 | 8 | | Other services | 5 | 1 | 1 | | Total Auditor's remuneration | 57 | 49 | 47 | Notes 1Comprises the fees for the statutory audit of the subsidiaries both inside and outside UK and fees for the work performed by associates of KPMG in respect of the consolidated financial statements of Barclays Bank PLC. 2Comprises services in relation to statutory and regulatory filings. These include audit services for the review of the interim financial information under the Listing Rules of the UK listing authority. Audit scope changes are finalised following the completion of the audit and recognised when agreed. The 2024 audit fee includes £nil (2023: £1m, 2022: £2m) relating to the previous year’s audit. 39 Assets and liabilities included in disposal group classified as held for sale Accounting for non-current assets held for sale and associated liabilities ![]() The Barclays Bank Group applies IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. Non-current assets (or disposal groups) are classified as held for sale when their carrying amount is to be recovered principally through a sale transaction rather than continuing use. In order to be classified as held for sale, the asset must be available for immediate sale in its present condition subject only to terms that are usual and customary, and the sale must be highly probable. Non-current assets (or disposal groups) held for sale are measured at the lower of carrying amount and fair value less cost to sell. Assets and liabilities classified as held for sale are presented separately in the consolidated balance sheet. Management judgement is required in determining whether the IFRS 5 held for sale classification criteria are met, in particular whether the sale is highly probable and expected to qualify for recognition as a completed sale within 12 months of classification. This assessment requires consideration of how committed management is to the sales plan, the likelihood of obtaining regulatory or other external approvals which is often required for sales of banking operations and how committed the buyer is to complete the sales transaction within the agreed timelines. Barclays Bank Ireland PLC agreed the sale of its German consumer finance business (comprising credit cards, unsecured personal loans and deposits), currently within Head Office. Barclays has recorded a £9m loss for the disposal group within Head Office for FY24. After the balance sheet date, Barclays announced it had completed the sale as part of our ambition to simplify Barclays and support our focus on our key businesses. Barclays has decided not to bid to become the sole issuer for a co-branded card portfolio in USCB, leading to its transfer in H1 2026. This portfolio held within USCB is expected to be sold at a premium. The extension to the 1 year sale period is aligned to the signed contractual arrangements in place to allow the transition of the portfolio in a controlled and effective manner. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 373 | ## Notes to the financial statements ## Other disclosure matters The perimeter of the disposal group has been accounted for in line with the requirements of IFRS5 as at 31 December 2024. A detailed analysis of the disposal group is presented below. The 2024 disposal group includes the German Consumer Finance Business within Head Office and  the US Cards portfolio within USCB. The 2023 Disposal Group includes the German Consumer Finance Business: | | | | | --- | --- | --- | | | | | | As at 31 December | 2024 | 2023 | | | £m | £m | | Assets included in disposal groups classified as held for sale | | | | Loans and advances to customers | 9,544 | 3,855 | | Intangible assets | 25 | 15 | | Property, plant and equipment | 24 | 24 | | Other assets | 260 | 22 | | Total assets classified as held for sale | 9,854 | 3,916 | | | | | | Liabilities included in disposal groups classified as held for sale | | | | Deposits from customers | 3,647 | 3,077 | | Other liabilities | 77 | 83 | | Provisions | 2 | 4 | | Total liabilities classified as held for sale | 3,726 | 3,164 | | | | | | Net assets classified as held for sale | 6,128 | 752 | 40 Post balance sheet event Barclays Bank Ireland PLC, a wholly owned subsidiary of Barclays Bank PLC, agreed the sale of its German consumer finance business (comprising credit cards, unsecured personal loans and deposits), currently within Head Office. Barclays has recorded a £9m loss for the disposal group within Head Office for FY24. After the balance sheet date, Barclays announced it had completed the sale as part of our ambition to simplify Barclays and support our focus on our key businesses. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 374 | ## Notes to the financial statements ## Other disclosure matters 41  Related Undertakings | | | | | | --- | --- | --- | --- | | | | | | | The Barclays Bank PLC’s corporate structure consists of a number of related undertakings, comprising subsidiary undertakings, joint ventures, associated undertakings and significant holdings. A full list of these related undertakings is set out below, together with the country of incorporation, registered office (or principal place of business) and the identity and percentage of each share class held by Barclays Bank PLC. The information is provided as at 31 December 2024. The entities are grouped by the countries in which they are incorporated. The profits earned by the activities of these entities are in some cases taxed in countries other than the country of incorporation for example where the entity carries on business through a branch in a territory outside of its country of incorporation. Barclays Bank PLC Country Snapshot provides details of where Barclays Bank PLC carries on its business, where its profits are subject to tax and the taxes it pays in each country it operates in. | | Notes | | | | A B C D E F G H I J K L M N O P Q R S T U V W X Y Z | Directly held by Barclays Bank PLC Partnership Interest Membership Interest Preference Shares A Preference Shares B Preference Shares Ordinary/Common Shares in addition to other shares A Ordinary Shares B Ordinary Shares C Ordinary Shares F Ordinary Shares First Preference Shares, Second Preference Shares Registered Address not in country of incorporation USD Linked Ordinary Shares Capital Contribution Shares Redeemable Class B Shares Non-Redeemable Ordinary Shares Class A Shares Class B Shares Class C Shares Class D Shares Class E Shares First Class Common Shares, Second Class Common Shares Redeemable Class A Shares Not Consolidated Euro Tracker 1 Shares, GBP Tracker 1 Shares, and USD Tracker 1 Shares | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 375 | ## Notes to the financial statements ## Other disclosure matters | | | | | --- | --- | --- | | | | | | Wholly owned subsidiaries | Note | | | Unless otherwise stated, the undertakings below are wholly owned and included in the consolidation and the share capital held by the Group comprises ordinary and/or common shares, which are held by subsidiaries of the Group. Unless otherwise stated, the Group holds 100% of the nominal value of each share class. | | | | | | | | United Kingdom | | | | 1 Churchill Place, London, E14 5HP | | | | Aequor Investments Limited | | | | Alynore Investments Limited Partnership | B | | | Ardencroft Investments Limited | A | | | B D & B Investments Limited | | | | B.P.B. (Holdings) Limited | A | | | Barclays Aldersgate Investments Limited | A | | | Barclays Asset Management Limited | A | | | Barclays Capital Asia Holdings Limited | A | | | Barclays Capital Nominees (No.2) Limited | | | | Barclays Capital Nominees (No.3) Limited | A | | | Barclays Capital Nominees Limited | A | | | Barclays Capital Securities Client Nominee Limited | A | | | Barclays Capital Securities Limited | A, D, G | | | Barclays CCP Funding LLP | B | | | Barclays Direct Investing Nominees Limited | | | | Barclays Directors Limited | A | | | Barclays Executive Schemes Trustees Limited | A | | | Barclays Financial Planning Nominee Company Limited | | | | Barclays Group Holdings Limited | A | | | Barclays International Holdings Limited | A | | | Barclays Investment Management Limited | A | | | Barclays Investments Solutions Limited | A | | | Barclays Long Island Limited | A | | | Barclays Nominees (George Yard) Limited | A, Y | | | Barclays OCIO Services Limited | A | | | Barclays Pension Funds Trustees Limited | A | | | Barclays Private Bank | | | | Barclays Services (Japan) Limited | A | | | Barclays Shea Limited | A | | | Barclays Term Funding Limited Liability Partnership | B | | | Barclays Wealth Nominees Limited | A | | | | | | | --- | --- | --- | | | | | | Wholly owned subsidiaries | Note | | | Barclayshare Nominees Limited | | | | Barcosec Limited | A | | | Barsec Nominees Limited | A | | | BB Client Nominees Limited | A | | | Chapelcrest Investments Limited | | | | Cornwall Home Loans Limited | A | | | Dorset Home Loans Limited | A | | | Durlacher Nominees Limited | A | | | Eagle Financial and Leasing Services (UK) Limited | A | | | Finpart Nominees Limited | A | | | Foltus Investments Limited | | | | Hawkins Funding Limited | | | | Heraldglen Limited | G, L | | | Isle of Wight Home Loans Limited | A | | | J.V. Estates Limited | A | | | Kirsche Investments Limited | A | | | Leonis Investments LLP | B | | | Long Island Assets Limited | | | | Maloney Investments Limited | | | | Menlo Investments Limited | A | | | Mercantile Credit Company Limited | A | | | Mercantile Leasing Company (No.132) Limited | A | | | MK Opportunities LP | B | | | Naxos Investments Limited | A | | | Northwharf Nominees Limited | A | | | Oak Pension Asset Management Limited | Y | | | Real Estate Participation Management Limited | | | | Real Estate Participation Services Limited | | | | Relative Value Investments UK Limited Liability Partnership | B | | | Relative Value Trading Limited | | | | Roder Investments No. 1 Limited | A, G, Z | | | Roder Investments No. 2 Limited | A, G, Z | | | RVT CLO Investments LLP | B | | | Surety Trust Limited | A | | | Swan Lane Investments Limited | | | | US Real Estate Holdings No.1 Limited | | | | US Real Estate Holdings No.2 Limited | | | | US Real Estate Holdings No.3 Limited | | | | US Real Estate Holdings No.4 Limited | A | | | US Real Estate Holdings No.5 Limited | A | | | US Real Estate Holdings No.6 Limited | A | | | Water Street Investments Limited | Y | | | | | | | --- | --- | --- | | | | | | Wholly owned subsidiaries | Note | | | Wedd Jefferson (Nominees) Limited | A | | | Westferry Investments Limited | A | | | Woolwich Qualifying Employee Share Ownership Trustee Limited | A | | | Zeban Nominees Limited | A | | | | | | | | | | | C/O Teneo Financial Advisory Limited, 3rd Floor, The Colmore Building, 20 Colmore Circus Queensway, Birmingham, West Midlands, B4 6AT | | | | Barclays Nominees (Branches) Limited (In Liquidation | | | | Barclays Capital Finance Limited (Dissolved 5 January 2025) | | | | | | | | 1-4 , Clyde Place Lane, Glasgow, G5 8DP | | | | R.C. Greig Nominees Limited | | | | | | | | 9, allée Scheffer, Luxembourg, L-2520 | | | | Barclays Blossom Finance Limited Partnership | B, M | | | Barclays Claudas Investments Partnership | B, M | | | Barclays Pelleas Investments Limited Partnership | B, M | | | | | | | Argentina | | | | Marval, O’Farrell & Mairal, Av. Leandro N. | | | | Compañia Regional del Sur S.A. | A | | | | | | | Brazil | | | | Av. Brigadeiro Faria Lima, No.4.440, 12th Floor, Bairro Itaim Bibi, Sao Paulo, CEP, 04538-132 | | | | Barclays Brasil Assessoria Financeira Ltda | A | | | BNC Brazil Consultoria Empresarial Ltda | A | | | | | | | Canada | | | | 333 Bay Street, Suite 4910, Toronto ON M5H 2R2 | | | | Barclays Capital Canada Inc. | | | | | | | | Stikeman Elliot LLP, 199 Bay Street, 5300 Commerce Court West, Toronto ON M5L 1B9 | | | | Barclays Corporation Limited | A | | | | | | | Cayman Islands | | | | PO Box  309, Ugland House, George Town, Grand Cayman, KY1-1104 | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 376 | ## Notes to the financial statements ## Other disclosure matters | | | | | --- | --- | --- | | | | | | Wholly owned subsidiaries | Note | | | Alymere Investments Limited | E, F, G | | | Analytical Trade UK Limited | A | | | Barclays Capital (Cayman) Limited | A | | | Barclays Securities Financing Limited | E, F, G | | | Barclays US Holdings Limited | A, D, G | | | Braven Investments No.1 Limited | | | | Calthorpe Investments Limited | | | | Capton Investments Limited | | | | Claudas Investments Limited | A, G, P, X | | | Claudas Investments Two Limited | | | | Gallen Investments Limited | | | | Hornbeam Limited | Y | | | Mintaka Investments No. 4 Limited | | | | Palomino Limited | A | | | Pelleas Investments Limited | A | | | Pippin Island Investments | A | | | Razzoli Investments Limited | A, D, G | | | RVH Limited | A, D, G | | | | | | | France | | | | 34-36 avenue de Friedland, 75008, Paris | | | | Barclays ADF SA | A | | | | | | | Germany | | | | Stuttgarter Straße 55-57, 73033 Göppingen | | | | Holding Stuttgarter Straße GmbH (In Liquidation) | | | | | | | | Guernsey | | | | P.O. Box 33, Dorey Court, Admiral Park, St.  Peter Port, GY1 4AT | | | | Barclays UKRF ICC Limited | Y | | | Barclays UKRF No.1 IC Limited | Y | | | Barclays UKRF No.2 IC Ltd | Y | | | | | | | Hong Kong | | | | Level 41,Cheung Kong Center, 2 Queen's Road, Central | | | | Barclays Capital Asia Limited | A | | | | | | | India | | | | Nirlon Knowledge Park, Level 9, Block B-6, Off Western Express Highway, Goregaon (East), Mumbai, 400063 | | | | Barclays Securities (India) Private Limited | | | | Barclays Wealth Trustees (India) Private Limited | | | | | | | | --- | --- | --- | | | | | | Wholly owned subsidiaries | Note | | | Barclays Investments & Loans (India) Private Limited | A, D, G | | | 5th to 12th Floor (Part), Building G2, Gera Commerzone SEZ, Survey No.65, Kharadi, Pune, 411014 | | | | Barclays Global Service Centre Private Limited | | | | Ireland | | | | One Molesworth Street, Dublin 2, D02RF29 | | | | Barclays Administration Germany Limited | | | | Barclays Bank Ireland Public Limited Company | A | | | Barclays Europe Client Nominees Designated Activity Company | | | | Barclays Europe Firm Nominees Designated Activity Company | | | | Barclays Europe Nominees Designated Activity Company | | | | | | | | 25-28 North Wall Quay, Dublin1, D01H104 | | | | Erimon Home Loans Ireland Limited | A | | | 70 Sir John Rogerson’s Quay, Dublin 2 | | | | Barclays Finance Ireland Limited | | | | | | | | Isle of Man | | | | Eagle Court, Circular Road, Douglas, IM1 1AD, Isle of Man | | | | Barclays Nominees (Manx) Limited | A, Y | | | Barclays Private Clients International Limited | A, H, I | | | | | | | 2nd Floor, St Georges Court, Upper Church Street, Douglas, IM1 1EE | | | | Barclays Holdings (Isle of Man) Limited (In Liquidation) | A | | | | | | | Japan | | | | 10-1, Roppongi 6-chome, Minato-ku, Tokyo | | | | Barclays Funds and Advisory Japan Limited | | | | Barclays Securities Japan Limited | G, E | | | | | | | Jersey | | | | 28 Esplanade, St Helier, JE2 3QA, Jersey | | | | Barclays Services Jersey Limited | A | | | | | | | 5 Espalanade, St Helier, JE2 3QA | | | | Barclays Wealth Management Jersey Limited | A | | | | | | | | | | | --- | --- | --- | | | | | | Wholly owned subsidiaries | Note | | | 13 Library Place, St Helier, JE4 8NE | | | | Barclays Nominees (Jersey) Limited | A, Y | | | Barclaytrust Channel Islands Limited | A, Y | | | Estera Trust (Jersey) Limited, 13-14 Esplanade, St Helier, JE1 1EE, Jersey | | | | MK Opportunities GP Ltd | A | | | | | | | Luxembourg | | | | 9, allée Scheffer, L-2520 | | | | Barclays Bedivere Investments S.à r.l. | G, H, I | | | Barclays Bordang Investments S.à r.l. | R, S, | | | Barclays Cantal Investments S.à r.l. | R, S | | | Barclays Capital Luxembourg S.à r.l. | | | | Barclays Treasury Luxembourg S.à r.l. | | | | Barclays Claudas Investments S.à r.l. | | | | Barclays International Luxembourg Dollar Holdings S.à r.l. | | | | Barclays Lamorak Investments S.à r.l. | Q | | | Barclays Luxembourg GBP Holdings S.à r.l. | Q | | | Barclays Luxembourg Global Funding S.à r.l. | | | | Barclays Luxembourg Holdings S.à r.l. | G, N | | | Barclays Luxembourg Holdings SSC | B | | | 68-70 Boulevard de la Petrusse, L-2320 | | | | Adler Toy Holding Sarl | | | | 10 rue du Château d’Eau, Leudelange, Grand Duchy of Luxembourg L-3364 | | | | BPM Management GP SARL | A | | | | | | | Mauritius | | | | C/O Rogers Capital Corporate Services Limited, 3rd Floor, Rogers House, No.5 President John Kennedy Street, Port Louis | | | | Barclays Capital Mauritius Limited (In Liquidation) | A | | | Barclays Capital Securities Mauritius Limited | A | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 377 | ## Notes to the financial statements ## Other disclosure matters | | | | | --- | --- | --- | | | | | | Wholly owned subsidiaries | Note | | | Fifth Floor Ebene Esplanade, 24 Bank Street, Cybercity 72201 Ebene | | | | Barclays Mauritius Overseas Holdings Limited | A | | | | | | | Mexico | | | | Paseo de la Reforma 505, Torre Mayor Floor 41, Colona Cuauhtémoc, 06500, Mexico City | | | | Barclays Bank Mexico, S.A. | I, K | | | Barclays Capital Casa de Bolsa, S.A. de C.V. | I, K | | | Grupo Financiero Barclays Mexico, S.A. de C.V. | A, I, K | | | | | | | Monaco | | | | 31 Avenue de la Costa, Monte Carlo BP 339 | | | | Barclays Private Asset Management (Monaco) S.A.M | | | | | | | | Saudi Arabia | | | | 3rd Floor Al Dahna Center, 114 Al-Ahsa Street, PO Box 1454, Riyadh 11431 | | | | Barclays Saudi Arabia (In Liquidation) | A | | | | | | | Singapore | | | | 10 Marina Boulevard, #25-01 Marina Bay  Financial Centre, Tower 2, 018983 | | | | Barclays Merchant Bank (Singapore) Ltd. | | | | | | | | Spain | | | | Calle Jose, Abascal 51, 28003, Madrid | | | | Barclays Tenedora De Inmuebles SL. | A | | | BVP Galvani Global, S.A.U. (In Liquidation) | A | | | | | | | Switzerland | | | | Chemin de Grange Canal 18-20, PO Box 3941, 1211, Geneva | | | | Barclays Bank (Suisse) SA | | | | BPB Holdings SA | | | | | | | | Taiwan | | | | 19F-1, No. 7, Xinyi Road, Sec. 5, Taipei, 11049, Taiwan | | | | Barclays Securities Taiwan Limited | A | | | | | | | United States | | | | | | | | --- | --- | --- | | | | | | Wholly owned subsidiaries | Note | | | Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808 | | | | Analytical Trade Holdings LLC | | | | Barclays Asset Backed Depositor LLC | C | | | Barclays Bank Delaware | D, G | | | Barclays Capital Derivatives Funding LLC | C | | | Barclays Capital Equities Trading GP | B | | | Barclays Capital Holdings Inc. | E, F, G | | | Barclays Capital Real Estate Finance Inc. | | | | Barclays Capital Real Estate Holdings Inc. | | | | Barclays Capital Real Estate Inc. | | | | Barclays Commercial Mortgage Securities LLC | C | | | Barclays Dryrock Funding LLC | C | | | Barclays Financial LLC | C | | | Barclays Group US Inc. | G, D | | | Barclays Lifestyles LLC | C | | | Barclays Oversight Management Inc. | | | | Barclays Receivables LLC | C | | | Barclays Services Corporation | | | | Barclays Services, LLC | C | | | Barclays STBT Inc. | | | | Barclays US CCP Funding LLC | C | | | Barclays US LLC | C | | | Barclays US Investments Inc. | | | | BCAP LLC | C | | | Lagalla Investments LLC | C | | | Long Island Holding A LLC | C | | | Marbury Holdings LLC | C | | | Preferred Liquidity, LLC | C, H | | | Procella Investments No.2 LLC | C | | | Procella Investments No.3 LLC | C | | | Relative Value Holdings, LLC | | | | Surrey Funding Corporation | | | | Sussex Purchasing Corporation | | | | Sutton Funding LLC | C | | | US Secured Investments LLC | O | | | Verain Investments LLC | C | | | Wilmington Riverfront  LLC | C | | | | | | | 100 Bank Street, Suite 630, Burlington, Vermont 05401 | | | | Barclays Insurance U.S. Inc. | | | | | | | | Corporation Service Company, 80 State Street, Albany, NY, | | | | Barclays Equity Holdings Inc. | | | | Corporation Service Company Goodwin Square, 225 Asylum Street 20th Floor Hartford CT 06103 | | | | | | | | --- | --- | --- | | | | | | Wholly owned subsidiaries | Note | | | Barclays Capital Inc. | | | | Corporation Service Company, 2626, Glenwood Ave, Suite 550, Raleigh, NC, 27608 | | | | Barclays US GPF Inc. | | | | Equifirst Corporation (In Liquidation, dissolved with State of North Carolina) | | | | Rodney Square North, 1100, North Market Street, | | | | Barclays Dryrock Issuance Trust | | | | 125 S West Street, Wilmington, Delaware, 19801 | | | | Curve Investments GP | B | | | | | | | --- | --- | --- | | | | | | Unless otherwise stated, the undertakings below are included in the consolidation and the share capital held by Barclays Bank PLC comprises ordinary and/or common shares, which are held by subsidiaries of Barclays Bank PLC. The percentage of the nominal value of each share class held by Barclays Bank PLC is provided below. | | | | | | | | | | | | Other Related Undertakings | % | Note | | United Kingdom | | | | 1 Churchill Place, London, E14 5HP | | | | PSA Credit Company Limited (In Liquidation) | 100.00 | H, J, Y | | Barclays Secured Funding (LM) | 20.00 | | | | | | | 50 Lothian Road, Festival Square, Edinburgh, EH3 9WJ | | | | Equistone Founder Partner III L.P. | 20.00 | B, Y | | | | | | Enigma, Wavendon Business Park Milton Keynes, MK178LX | | | | Intelligent Processing Solutions Limited | 19.50 | Y | | | | | | Cayman Islands | | | | PO Box 309GT, Ugland House, South Church Street, Grand Cayman KY1-1104 | | | | Newman Holdings Limited (In Liquidation) | 96.48 | D, Y | | | | | | Korea, Republic of | | | | 18th Floor, Daishin Finance Centre, 343, Samil-daero, Jung-go, Seoul | | | | Woori BC Pegasus Securitization Specialty Co. Ltd | 70.00 | W | | | | | | Luxembourg | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 378 | ## Notes to the financial statements ## Other disclosure matters | | | | | --- | --- | --- | | | | | | 9, allee Scheffer, L-2520 | | | | Barclays Alzin Investments S.à r.l. | 100.00 | R,S, U | | Preferred Funding S.à r.l. | 100.00 | F | | Preferred Investments S.à r.l. | 33.00 | P | | | | | | United States | | | | 1415 Louisiana Street, Suite 1600, Houston, TX 77002-0000 | | | | Sabine Oil & Gas Holdings, Inc.(In Liquidation) | 22.12 | Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 379 | ## Additional unaudited information Notes The term Barclays Bank Group refers to Barclays Bank PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the year ended 31 December 2024 to the corresponding twelve months of 2023 and balance sheet analysis as at 31 December 2024 with comparatives relating to 31 December 2023. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars respectively; and the abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of Euros respectively. There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time. Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the results glossary that can be accessed at home.barclays/investor-relations/reports-and-events. These results will be filed on a Form 20-F with the US Securities and Exchange Commission (SEC) as soon as practicable following their publication. Once filed with the SEC, a copy of the Form 20-F will be available from the Barclays Investor Relations website at home.barclays/annualreport and from the SEC’s website at www.sec.gov. The Barclays Bank Group is a frequent issuer in the debt capital markets and regularly meets with investors via formal road-shows and other ad hoc meetings. Consistent with its usual practice, the Barclays Bank Group expects that from time to time over the coming half year it will meet with investors globally to discuss these results and other matters relating to the Barclays Bank Group. Forward-looking statements This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Barclays Bank Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Forward-looking statements can be made in writing but also may be made verbally by directors, officers and employees of the Barclays Bank Group (including during management presentations) in connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Barclays Bank Group’s future financial position, business strategy, income levels, costs, assets and liabilities, impairment charges, provisions, capital leverage and other regulatory ratios, capital distributions (including policy on dividends and share buybacks), return on tangible equity, projected levels of growth in banking and financial markets, industry trends, any commitments and targets (including environmental, social and governance (ESG) commitments and targets), plans and objectives for future operations, International Financial Reporting Standards (“IFRS”) and other statements that are not historical or current facts. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by a number of factors, including, without limitation: changes in legislation, regulations, governmental and regulatory policies, expectations and actions, voluntary codes of practices and the interpretation thereof, changes in IFRS and other accounting standards, including practices with regard to the interpretation and application thereof and emerging and developing ESG reporting standards; the outcome of current and future legal proceedings and regulatory investigations; the Barclays Bank Group’s ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively or navigate inconsistencies and conflicts in the manner in which climate policy is implemented in the regions where the Barclays Bank Group operates, including as a result of the adoption of anti-ESG rules; environmental, social and geopolitical risks and incidents and similar events beyond the Barclays Bank Group’s control; financial crime; the impact of competition in the banking and financial services industry; capital, liquidity, leverage and other regulatory rules and requirements applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions, including inflation; volatility in credit and capital markets; market related risks such as changes in interest rates and foreign exchange rates; reforms to benchmark interest rates and indices; higher or lower asset valuations; changes in credit ratings of any entity within the Barclays Bank Group or any securities issued by it; changes in counterparty risk; changes in consumer behaviour; the direct and indirect consequences of the conflicts in Ukraine and the Middle East on European and global macroeconomic conditions, political stability and financial markets; political elections, including the impact of the UK, European and US elections in 2024; developments in the UK’s relationship with the European Union (“EU”); the risk of cyber-attacks, information or security breaches, technology failures or operational disruptions and any subsequent impact on the Barclays Bank Group’s reputation, business or operations; the Barclays Bank Group’s ability to access funding; and the success of acquisitions, disposals and other strategic transactions. A number of these factors are beyond the Barclays Bank Group’s control. As a result, the Barclays Bank Group’s actual financial position, results, financial and non-financial metrics or performance measures or its ability to meet commitments and targets may differ materially from the statements or guidance set forth in the Barclays Bank Group’s forward-looking statements. Additional risks and factors which may impact Barclays Bank Group’s future financial condition and performance are identified in the description of material existing and emerging risks beginning on page [126](#ia16d0659cd524c01ae655d82fa382c3d_112) of this Annual Report. Subject to the Barclays Bank Group's obligations under the applicable laws and regulations of any relevant jurisdiction, (including, without limitation, the UK and the US), in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 380 | ## Schedule to the Sustainability Statement ## EU Taxonomy These disclosures are incorporated by reference into the ‘Environment section’ of our Sustainability Statement and form part of our disclosures under the Taxonomy Regulation. Further to Regulation 5 of the Transparency (Directive 2004/109/EC) Regulations 2007 (Ireland), the disclosures for the financial year ended 31 December 2024  on pages [380](#i73e641364f5943529d93374ad2be0574_167753) to [450](#i28f9d75de0554b47a657f97f151f0200_27587) below have been subject to limited assurance. 1. Assets for the calculation of GAR - Turnover based | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | Million GBP | | a | b | c | d | e | f | g | h | i | j | k | l | m | n | | Total gross carrying amount1 | Climate Change Mitigation (CCM) | | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible)2 | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible)2 | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible)2 | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 12,599 | 2,282 | 337 | — | 11 | 199 | 59 | 2 | — | 1 | 1 | — | — | — | | 2 | Financial undertakings | 10,144 | 1,301 | 116 | — | 3 | 29 | 39 | 1 | — | — | — | — | — | — | | 3 | Credit institutions | 3,283 | 785 | 63 | — | 1 | 3 | 38 | — | — | — | — | — | — | — | | 4 | Loans and advances3 | 3,181 | 783 | 63 | — | 1 | 3 | 38 | — | — | — | — | — | — | — | | 5 | Debt securities, including UoP | 102 | 2 | — | — | — | — | — | — | — | — | — | — | — | — | | 6 | Equity instruments | — | — | — | | — | — | — | — | | — | — | — | | — | | 7 | Other financial corporations | 6,861 | 516 | 53 | — | 2 | 26 | 1 | 1 | — | — | — | — | — | — | | 8 | of which investment firms | 6,406 | 450 | 47 | — | 1 | 25 | — | — | — | — | — | — | — | — | | 9 | Loans and advances3 | 4,931 | 185 | 16 | — | — | 2 | — | — | — | — | — | — | — | — | | 10 | Debt securities, including UoP | 1,475 | 265 | 31 | — | 1 | 23 | — | — | — | — | — | — | — | — | | 11 | Equity instruments | — | — | — | | — | — | — | — | | — | — | — | | — | | 12 | of which management companies | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 13 | Loans and advances3 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 14 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 15 | Equity instruments | — | — | — | | — | — | — | — | | — | — | — | | — | | 16 | of which insurance undertakings | 455 | 66 | 6 | — | 1 | 1 | 1 | 1 | — | — | — | — | — | — | | 17 | Loans and advances3 | 455 | 66 | 6 | — | 1 | 1 | 1 | 1 | — | — | — | — | — | — | | 18 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 19 | Equity instruments | — | — | — | | — | — | — | — | | — | — | — | | — | | 20 | Non-financial undertakings | 1,897 | 423 | 221 | — | 8 | 170 | 20 | 1 | — | 1 | 1 | — | — | — | | 21 | Loans and advances3 | 1,805 | 422 | 221 | — | 8 | 170 | 20 | 1 | — | 1 | 1 | — | — | — | | 22 | Debt securities, including UoP | 79 | — | — | — | — | — | — | — | — | — | — | — | — | — | | 23 | Equity instruments | 13 | 1 | — | | — | — | — | — | | — | — | — | | — | | 24 | Households | 558 | 558 | — | — | — | — | — | — | — | — | | | | | | 25 | of which loans collateralised by residential immovable property4 | 558 | 558 | — | — | — | — | — | — | — | — | | | | | | 26 | of which building renovation loans | — | — | — | — | — | — | — | — | — | — | | | | | | 27 | of which motor vehicle loans | — | — | — | — | — | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 381 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | 1. Assets for the calculation of GAR - Turnover based (Continued) | | | | | | | | | | | | | | | | | | | a | b | c | d | e | f | g | h | i | j | k | l | m | n | | 28 | Local governments financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 29 | Housing financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 30 | Other local government financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 32 | Assets excluded from the numerator for GAR calculation (covered in the denominator) | 266,993 | — | — | — | — | — | — | — | — | — | — | — | — | — | | 33 | Financial and Non-financial undertakings | 219,160 | | | | | | | | | | | | | | | 34 | SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 30,067 | | | | | | | | | | | | | | | 35 | Loans and advances3 | 23,314 | | | | | | | | | | | | | | | 36 | of which loans collateralised by commercial immovable property | — | | | | | | | | | | | | | | | 37 | of which building renovation loans | — | | | | | | | | | | | | | | | 38 | Debt securities | 6,749 | | | | | | | | | | | | | | | 39 | Equity instruments | 4 | | | | | | | | | | | | | | | 40 | Non-EU country counterparties not subject to NFRD disclosure obligations | 189,093 | | | | | | | | | | | | | | | 41 | Loans and advances3 | 167,386 | | | | | | | | | | | | | | | 42 | Debt securities | 21,699 | | | | | | | | | | | | | | | 43 | Equity instruments | 8 | | | | | | | | | | | | | | | 44 | Derivatives | 7,583 | | | | | | | | | | | | | | | 45 | On demand interbank loans | 5,124 | | | | | | | | | | | | | | | 46 | Cash and cash-related assets | 1,004 | | | | | | | | | | | | | | | 47 | Other categories of assets (e.g. Goodwill, commodities etc.) | 34,122 | | | | | | | | | | | | | | | 48 | Total GAR assets | 279,592 | 2,282 | 337 | — | 11 | 199 | 59 | 2 | — | 1 | 1 | — | — | — | | 49 | Assets not covered for GAR calculation | 942,397 | | | | | | | | | | | | | | | 50 | Central governments and Supranational issuers | 70,958 | | | | | | | | | | | | | | | 51 | Central banks exposure | 192,588 | | | | | | | | | | | | | | | 52 | Trading book | 678,851 | | | | | | | | | | | | | | | 53 | Total assets | 1,221,989 | 2,282 | 337 | — | 11 | 199 | 59 | 2 | — | 1 | 1 | — | — | — | | Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | 54 | Financial guarantees | 885 | 133 | 106 | — | — | 50 | — | — | — | — | 1 | — | — | — | | 55 | Assets under management5 | 3,437 | 1,286 | 269 | — | — | — | — | — | — | — | — | — | — | — | | 56 | Of which debt securities | 1,998 | — | — | — | — | — | — | — | — | — | — | — | — | — | | 57 | Of which equity instruments | 1,439 | 1,286 | 269 | — | — | — | — | — | — | — | — | — | — | — | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 382 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | 1. Assets for the calculation of GAR - Turnover based (Continued) | | | | | | | | | | | | | | | | | | | | Million GBP | | o | p | q | r | s | t | u | v | w | x | y | z | ab | ac | ad | ae | af | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Of which towards taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Of which towards taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which Use of Proceeds | Of which enabling | | Of which Use of Proceeds | Of which enabling | | Of which Use of Proceeds | Of which enabling | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 53 | — | — | — | 10 | — | — | — | 45 | — | — | — | 2,450 | 339 | — | 11 | 200 | | 2 | Financial undertakings | — | — | — | — | — | — | — | — | — | — | — | — | 1,340 | 117 | — | 3 | 29 | | 3 | Credit institutions | — | — | — | — | — | — | — | — | — | — | — | — | 823 | 63 | — | 1 | 3 | | 4 | Loans and advances3 | — | — | — | — | — | — | — | — | — | — | — | — | 821 | 63 | — | 1 | 3 | | 5 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | 2 | — | — | — | — | | 6 | Equity instruments | — | — | | — | — | — | | — | — | — | | — | — | — | | — | — | | 7 | Other financial corporations | — | — | — | — | — | — | — | — | — | — | — | — | 517 | 54 | — | 2 | 26 | | 8 | of which investment firms | — | — | — | — | — | — | — | — | — | — | — | — | 450 | 47 | — | 1 | 25 | | 9 | Loans and advances3 | — | — | — | — | — | — | — | — | — | — | — | — | 185 | 16 | — | — | 2 | | 10 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | 265 | 31 | — | 1 | 23 | | 11 | Equity instruments | — | — | | — | — | — | | — | — | — | | — | — | — | | — | — | | 12 | of which management companies | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 13 | Loans and advances3 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 14 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 15 | Equity instruments | — | — | | — | — | — | | — | — | — | | — | — | — | | — | — | | 16 | of which insurance undertakings | — | — | — | — | — | — | — | — | — | — | — | — | 67 | 7 | — | 1 | 1 | | 17 | Loans and advances3 | — | — | — | — | — | — | — | — | — | — | — | — | 67 | 7 | — | 1 | 1 | | 18 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 19 | Equity instruments | — | — | | — | — | — | | — | — | — | | — | — | — | | — | — | | 20 | Non-financial undertakings | 53 | — | — | — | 10 | — | — | — | 45 | — | — | — | 552 | 222 | — | 8 | 171 | | 21 | Loans and advances3 | 53 | — | — | — | 10 | — | — | — | 45 | — | — | — | 551 | 222 | — | 8 | 171 | | 22 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 23 | Equity instruments | — | — | | — | — | — | | — | — | — | | — | 1 | — | | — | — | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 383 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | 1. Assets for the calculation of GAR - Turnover based (Continued) | | | | | | | | | | | | | | | | | | | | | | o | p | q | r | s | t | u | v | w | x | y | z | ab | ac | ad | ae | af | | 24 | Households | — | — | — | — | | | | | | | | | 558 | — | — | — | — | | 25 | of which loans collateralised by residential immovable property4 | — | — | — | — | | | | | | | | | 558 | — | — | — | — | | 26 | of which building renovation loans | — | — | — | — | | | | | | | | | — | — | — | — | — | | 27 | of which motor vehicle loans | | | | | | | | | | | | | — | — | — | — | — | | 28 | Local governments financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 29 | Housing financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 30 | Other local government financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 32 | Assets excluded from the numerator for GAR calculation (covered in the denominator) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 33 | Financial and Non-financial undertakings | | | | | | | | | | | | | | | | | | | 34 | SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | | | 35 | Loans and advances3 | | | | | | | | | | | | | | | | | | | 36 | of which loans collateralised by commercial immovable property | | | | | | | | | | | | | | | | | | | 37 | of which building renovation loans | | | | | | | | | | | | | | | | | | | 38 | Debt securities | | | | | | | | | | | | | | | | | | | 39 | Equity instruments | | | | | | | | | | | | | | | | | | | 40 | Non-EU country counterparties not subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | | | 41 | Loans and advances3 | | | | | | | | | | | | | | | | | | | 42 | Debt securities | | | | | | | | | | | | | | | | | | | 43 | Equity instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 384 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | 1. Assets for the calculation of GAR - Turnover based (Continued) | | | | | | | | | | | | | | | | | | | | | | o | p | q | r | s | t | u | v | w | x | y | z | ab | ac | ad | ae | af | | 44 | Derivatives | | | | | | | | | | | | | | | | | | | 45 | On demand interbank loans | | | | | | | | | | | | | | | | | | | 46 | Cash and cash-related assets | | | | | | | | | | | | | | | | | | | 47 | Other categories of assets (e.g. Goodwill, commodities etc.) | | | | | | | | | | | | | | | | | | | 48 | Total GAR assets | 53 | — | — | — | 10 | — | — | — | 45 | — | — | — | 2,450 | 339 | — | 11 | 200 | | 49 | Assets not covered for GAR calculation | | | | | | | | | | | | | | | | | | | 50 | Central governments and Supranational issuers | | | | | | | | | | | | | | | | | | | 51 | Central banks exposure | | | | | | | | | | | | | | | | | | | 52 | Trading book | | | | | | | | | | | | | | | | | | | 53 | Total assets | 53 | — | — | — | 10 | — | — | — | 45 | — | — | — | 2,450 | 339 | — | 11 | 200 | | Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | | | | 54 | Financial guarantees | — | — | — | — | — | — | — | — | — | — | — | — | 134 | 106 | — | — | 50 | | 55 | Assets under management5 | — | — | — | — | — | — | — | — | — | — | — | — | 1,286 | 269 | — | — | — | | 56 | Of which debt securities | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 57 | Of which equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | 1,286 | 269 | — | — | — | Notes: 1. The gross carrying amount column excludes impairment allowances for all banking book exposures. As a result, Total Assets reported in this template differ from those in the Bank's balance sheet to the extent of impairment allowances. 2. In cases where a breakdown of taxonomy eligibility and alignment is not available for the six EU Taxonomy environment objectives, taxonomy eligibility and alignment are reported under the objective of CCM in the above template. 3. Cash collateral and settlement balances have been included under Loans and advances. 4. Loans collateralised by residential immovable properties under Households £558m were considered 100% eligible but not aligned. 5. For AUMs of financial institutions that are subject to CSRD disclosure obligations, no eligibility or alignment assessment was performed to avoid double counting, in line with the Third Commission Notice published on 8 November 2024. The taxonomy eligibility and alignment is reported for non-financial corporates. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 385 | ## Schedule to the Sustainability Statement ## EU Taxonomy 1. Assets for the calculation of GAR - Capex based | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | Million GBP | | a | b | c | d | e | f | g | h | i | j | k | l | m | n | | Total gross carrying amount1 | Climate Change Mitigation (CCM) | | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible)2 | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible)2 | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible)2 | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 12,599 | 2,656 | 450 | — | 15 | 293 | 80 | 6 | — | 1 | 1 | — | — | — | | 2 | Financial undertakings | 10,144 | 1,519 | 186 | — | 3 | 80 | 39 | — | — | — | — | — | — | — | | 3 | Credit institutions | 3,283 | 917 | 67 | — | 2 | 4 | 38 | — | — | — | — | — | — | — | | 4 | Loans and advances3 | 3,181 | 917 | 67 | — | 2 | 4 | 38 | — | — | — | — | — | — | — | | 5 | Debt securities, including UoP | 102 | — | — | — | — | — | — | — | — | — | — | — | — | — | | 6 | Equity instruments | — | — | — | | — | — | — | — | | — | — | — | | — | | 7 | Other financial corporations | 6,861 | 602 | 119 | — | 1 | 76 | 1 | — | — | — | — | — | — | — | | 8 | of which investment firms | 6,406 | 537 | 112 | — | — | 75 | — | — | — | — | — | — | — | — | | 9 | Loans and advances3 | 4,931 | 256 | 38 | — | — | 9 | — | — | — | — | — | — | — | — | | 10 | Debt securities, including UoP | 1,475 | 281 | 74 | — | — | 66 | — | — | — | — | — | — | — | — | | 11 | Equity instruments | — | — | — | | — | — | — | — | | — | — | — | | — | | 12 | of which management companies | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 13 | Loans and advances3 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 14 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 15 | Equity instruments | — | — | — | | — | — | — | — | | — | — | — | | — | | 16 | of which insurance undertakings | 455 | 65 | 7 | — | 1 | 1 | 1 | — | — | — | — | — | — | — | | 17 | Loans and advances3 | 455 | 65 | 7 | — | 1 | 1 | 1 | — | — | — | — | — | — | — | | 18 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 19 | Equity instruments | — | — | — | | — | — | — | — | | — | — | — | | — | | 20 | Non-financial undertakings | 1,897 | 579 | 264 | — | 12 | 213 | 41 | 6 | — | 1 | 1 | — | — | — | | 21 | Loans and advances3 | 1,805 | 574 | 264 | — | 12 | 213 | 41 | 6 | — | 1 | 1 | — | — | — | | 22 | Debt securities, including UoP | 79 | — | — | — | — | — | — | — | — | — | — | — | — | — | | 23 | Equity instruments | 13 | 5 | — | | — | — | — | — | | — | — | — | | — | | 24 | Households | 558 | 558 | — | — | — | — | — | — | — | — | | | | | | 25 | of which loans collateralised by residential immovable property4 | 558 | 558 | — | — | — | — | — | — | — | — | | | | | | 26 | of which building renovation loans | — | — | — | — | — | — | — | — | — | — | | | | | | 27 | of which motor vehicle loans | — | — | — | — | — | — | | | | | | | | | | 28 | Local governments financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 29 | Housing financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 30 | Other local government financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 386 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | 1. Assets for the calculation of GAR - Capex based (Continued) | | | | | | | | | | | | | | | | | | | a | b | c | d | e | f | g | h | i | j | k | l | m | n | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 32 | Assets excluded from the numerator for GAR calculation (covered in the denominator) | 266,993 | — | — | — | — | — | — | — | — | — | — | — | — | — | | 33 | Financial and Non-financial undertakings | 219,160 | | | | | | | | | | | | | | | 34 | SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 30,067 | | | | | | | | | | | | | | | 35 | Loans and advances3 | 23,314 | | | | | | | | | | | | | | | 36 | of which loans collateralised by commercial immovable property | — | | | | | | | | | | | | | | | 37 | of which building renovation loans | — | | | | | | | | | | | | | | | 38 | Debt securities | 6,749 | | | | | | | | | | | | | | | 39 | Equity instruments | 4 | | | | | | | | | | | | | | | 40 | Non-EU country counterparties not subject to NFRD disclosure obligations | 189,093 | | | | | | | | | | | | | | | 41 | Loans and advances3 | 167,386 | | | | | | | | | | | | | | | 42 | Debt securities | 21,699 | | | | | | | | | | | | | | | 43 | Equity instruments | 8 | | | | | | | | | | | | | | | 44 | Derivatives | 7,583 | | | | | | | | | | | | | | | 45 | On demand interbank loans | 5,124 | | | | | | | | | | | | | | | 46 | Cash and cash-related assets | 1,004 | | | | | | | | | | | | | | | 47 | Other categories of assets (e.g. Goodwill, commodities etc.) | 34,122 | | | | | | | | | | | | | | | 48 | Total GAR assets | 279,592 | 2,656 | 450 | — | 15 | 293 | 80 | 6 | — | 1 | 1 | — | — | — | | 49 | Assets not covered for GAR calculation | 942,397 | | | | | | | | | | | | | | | 50 | Central governments and Supranational issuers | 70,958 | | | | | | | | | | | | | | | 51 | Central banks exposure | 192,588 | | | | | | | | | | | | | | | 52 | Trading book | 678,851 | | | | | | | | | | | | | | | 53 | Total assets | 1,221,989 | 2,656 | 450 | — | 15 | 293 | 80 | 6 | — | 1 | 1 | — | — | — | | Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | 54 | Financial guarantees | 885 | 293 | 242 | — | 7 | 124 | — | — | — | — | 2 | — | — | — | | 55 | Assets under management5 | 3,437 | 1,279 | 524 | — | — | — | — | — | — | — | — | — | — | — | | 56 | Of which debt securities | 1,998 | — | — | — | — | — | — | — | — | — | — | — | — | — | | 57 | Of which equity instruments | 1,439 | 1,279 | 524 | — | — | — | — | — | — | — | — | — | — | — | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 387 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | 1. Assets for the calculation of GAR - Capex based (Continued) | | | | | | | | | | | | | | | | | | | | Million GBP | | o | p | q | r | s | t | u | v | w | x | y | z | ab | ac | ad | ae | af | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Of which towards taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Of which towards taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which Use of Proceeds | Of which enabling | | Of which Use of Proceeds | Of which enabling | | Of which Use of Proceeds | Of which enabling | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 67 | — | — | — | 24 | — | — | — | — | — | — | — | 2,828 | 456 | — | 15 | 294 | | 2 | Financial undertakings | — | — | — | — | — | — | — | — | — | — | — | — | 1,558 | 186 | — | 3 | 80 | | 3 | Credit institutions | — | — | — | — | — | — | — | — | — | — | — | — | 955 | 67 | — | 2 | 4 | | 4 | Loans and advances3 | — | — | — | — | — | — | — | — | — | — | — | — | 955 | 67 | — | 2 | 4 | | 5 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 6 | Equity instruments | — | — | | — | — | — | | — | — | — | | — | — | — | | — | — | | 7 | Other financial corporations | — | — | — | — | — | — | — | — | — | — | — | — | 603 | 119 | — | 1 | 76 | | 8 | of which investment firms | — | — | — | — | — | — | — | — | — | — | — | — | 537 | 112 | — | — | 75 | | 9 | Loans and advances3 | — | — | — | — | — | — | — | — | — | — | — | — | 256 | 38 | — | — | 9 | | 10 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | 281 | 74 | — | — | 66 | | 11 | Equity instruments | — | — | | — | — | — | | — | — | — | | — | — | — | | — | — | | 12 | of which management companies | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 13 | Loans and advances3 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 14 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 15 | Equity instruments | — | — | | — | — | — | | — | — | — | | — | — | — | | — | — | | 16 | of which insurance undertakings | — | — | — | — | — | — | — | — | — | — | — | — | 66 | 7 | — | 1 | 1 | | 17 | Loans and advances3 | — | — | — | — | — | — | — | — | — | — | — | — | 66 | 7 | — | 1 | 1 | | 18 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 19 | Equity instruments | — | — | | — | — | — | | — | — | — | | — | — | — | | — | — | | 20 | Non-financial undertakings | 67 | — | — | — | 24 | — | — | — | — | — | — | — | 712 | 270 | — | 12 | 214 | | 21 | Loans and advances3 | 66 | — | — | — | 24 | — | — | — | — | — | — | — | 706 | 270 | — | 12 | 214 | | 22 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 23 | Equity instruments | 1 | — | | — | — | — | | — | — | — | | — | 6 | — | | — | — | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 388 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | 1. Assets for the calculation of GAR - Capex based (Continued) | | | | | | | | | | | | | | | | | | | | | | o | p | q | r | s | t | u | v | w | x | y | z | ab | ac | ad | ae | af | | 24 | Households | — | — | — | — | | | | | | | | | 558 | — | — | — | — | | 25 | of which loans collateralised by residential immovable property4 | — | — | — | — | | | | | | | | | 558 | — | — | — | — | | 26 | of which building renovation loans | — | — | — | — | | | | | | | | | — | — | — | — | — | | 27 | of which motor vehicle loans | | | | | | | | | | | | | — | — | — | — | — | | 28 | Local governments financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 29 | Housing financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 30 | Other local government financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 32 | Assets excluded from the numerator for GAR calculation (covered in the denominator) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 33 | Financial and Non-financial undertakings | | | | | | | | | | | | | | | | | | | 34 | SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | | | 35 | Loans and advances3 | | | | | | | | | | | | | | | | | | | 36 | of which loans collateralised by commercial immovable property | | | | | | | | | | | | | | | | | | | 37 | of which building renovation loans | | | | | | | | | | | | | | | | | | | 38 | Debt securities | | | | | | | | | | | | | | | | | | | 39 | Equity instruments | | | | | | | | | | | | | | | | | | | 40 | Non-EU country counterparties not subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | | | 41 | Loans and advances3 | | | | | | | | | | | | | | | | | | | 42 | Debt securities | | | | | | | | | | | | | | | | | | | 43 | Equity instruments | | | | | | | | | | | | | | | | | | | 44 | Derivatives | | | | | | | | | | | | | | | | | | | 45 | On demand interbank loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 389 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | 1. Assets for the calculation of GAR - Capex based (Continued) | | | | | | | | | | | | | | | | | | | | | | o | p | q | r | s | t | u | v | w | x | y | z | ab | ac | ad | ae | af | | 46 | Cash and cash-related assets | | | | | | | | | | | | | | | | | | | 47 | Other categories of assets (e.g. Goodwill, commodities etc.) | | | | | | | | | | | | | | | | | | | 48 | Total GAR assets | 67 | — | — | — | 24 | — | — | — | — | — | — | — | 2,828 | 456 | — | 15 | 294 | | 49 | Assets not covered for GAR calculation | | | | | | | | | | | | | | | | | | | 50 | Central governments and Supranational issuers | | | | | | | | | | | | | | | | | | | 51 | Central banks exposure | | | | | | | | | | | | | | | | | | | 52 | Trading book | | | | | | | | | | | | | | | | | | | 53 | Total assets | 67 | — | — | — | 24 | — | — | — | — | — | — | — | 2,828 | 456 | — | 15 | 294 | | Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | | | | 54 | Financial guarantees | 5 | — | — | — | — | — | — | — | — | — | — | — | 300 | 242 | — | 7 | 124 | | 55 | Assets under management5 | — | — | — | — | — | — | — | — | — | — | — | — | 1,279 | 524 | — | — | — | | 56 | Of which debt securities | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 57 | Of which equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | 1,279 | 524 | — | — | — | Notes: 1. The gross carrying amount column excludes impairment allowances for all banking book exposures. As a result, Total Assets reported in this template differ from those in the Bank's balance sheet to the extent of impairment allowances. 2. In cases where a breakdown of taxonomy eligibility and alignment is not available for the six EU Taxonomy environment objectives, taxonomy eligibility and alignment are reported under the objective of CCM in the above template. 3. Cash collateral and settlement balances have been included under Loans and advances. 4. Loans collateralised by residential immovable properties under Households £558m were considered 100% eligible but not aligned. 5. For AUMs of financial institutions that are subject to CSRD disclosure obligations, no eligibility or alignment assessment was performed to avoid double counting, in line with the Third Commission Notice published on 8 November 2024. The taxonomy eligibility and alignment is reported for non-financial corporates. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 390 | ## Schedule to the Sustainability Statement ## EU Taxonomy 2. GAR sector information - Turnover based | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | a | b | c | d | e | f | g | h | i | j | k | l | | Climate Change Mitigation (CCM) | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount2 | | [Gross] carrying amount | | [Gross] carrying amount2 | | [Gross] carrying amount | | [Gross] carrying amount2 | | [Gross] carrying amount | | | Mn GBP | Of which environmentally sustainable (CCM) | Mn GBP | Of which environme ntally sustainable (CCM) | Mn GBP | Of which environmentally sustainable (CCA) | Mn GBP | Of which environme ntally sustainable (CCA) | Mn GBP | Of which environmentally sustainable (WTR) | Mn GBP | Of which environme ntally sustainable (WTR) | | 1 | C20.14 Manufacture of other organic basic chemicals | 13 | 2 | | | — | — | | | — | — | | | | 2 | C20.59 Manufacture of other chemical products n.e.c. | 8 | — | | | — | — | | | — | — | | | | 3 | C21.10 Manufacture of basic pharmaceutical products | — | — | | | — | — | | | — | — | | | | 4 | C21.20 Manufacture of pharmaceutical preparations | — | — | | | — | — | | | — | — | | | | 5 | C22.11 Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres | 21 | 10 | | | — | — | | | — | — | | | | 6 | C26.30 Manufacture of communication equipment | — | — | | | — | — | | | — | — | | | | 7 | C27.11 Manufacture of electric motors, generators and transformers | 1 | 1 | | | — | — | | | — | — | | | | 8 | C27.12 Manufacture of electricity distribution and control apparatus | 47 | 28 | | | — | — | | | 1 | — | | | | 9 | C28.11 Manufacture of engines and turbines, except aircraft, vehicle and cycle engines | 2 | — | | | — | — | | | — | — | | | | 10 | C29.10 Manufacture of motor vehicles | 29 | — | | | — | — | | | — | — | | | | 11 | C30.40 Manufacture of military fighting vehicles | 12 | — | | | — | — | | | — | — | | | | 12 | D35.11 Production of electricity | 14 | 12 | | | — | — | | | — | — | | | | 13 | D35.12 Transmission of electricity | 92 | 92 | | | — | — | | | — | — | | | | 14 | D35.13 Distribution of electricity | 19 | 17 | | | — | — | | | — | — | | | | 15 | F41.10 Development of building projects | 21 | — | | | — | — | | | — | — | | | | 16 | H49.10 Passenger rail transport, interurban | 30 | 25 | | | — | — | | | — | — | | | | 17 | H53.20 Other postal and courier activities | 2 | 1 | | | — | — | | | — | — | | | | 18 | J60.20 Television programming and broadcasting activities | — | — | | | 15 | — | | | — | — | | | | 19 | J61.20 Wireless telecommunications activities | 1 | — | | | 1 | — | | | — | — | | | | 20 | J61.90 Other telecommunications activities | 9 | 4 | | | — | — | | | — | — | | | | 21 | J62.20 Computer consultancy and computer facilities management activities | 10 | — | | | — | — | | | — | — | | | | 22 | J64.99 Other financial service activities, except insurance and pension funding n.e.c. | 5 | — | | | — | — | | | — | — | | | | 23 | L68.20 Renting and operating of own or leased real estate | 3 | — | | | 3 | — | | | — | — | | | | 24 | M73.11 Advertising agencies | 21 | 20 | | | — | — | | | — | — | | | | 25 | N77.11 Renting and leasing of cars and light motor vehicles | 47 | — | | | — | — | | | — | — | | | | 26 | N79.11 Travel agency activities | 1 | — | | | — | — | | | — | — | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 391 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | 2. GAR sector information - Turnover based (Continued) | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | m | n | o | p | q | r | s | t | u | v | w | x | y | z | aa | ab | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO)1 | | | | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount2 | | [Gross] carrying amount | | [Gross] carrying amount2 | | [Gross] carrying amount | | [Gross] carrying amount2 | | [Gross] carrying amount | | [Gross] carrying amount2 | | [Gross] carrying amount | | | Mn GBP | Of which environm entally sustainab le (CE) | Mn GBP | Of which environm entally sustainab le (CE) | Mn GBP | Of which environm entally sustainab le (PPC) | Mn GBP | Of which environm entally sustainab le (PPC) | Mn GBP | Of which environm entally sustainab le (BIO) | Mn GBP | Of which environm entally sustainab le (BIO) | Mn GBP | Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) | Mn GBP | Of which environment ally sustainable (CCM + CCA + WTR + CE + PPC + BIO) | | 1 | C20.14 Manufacture of other organic basic chemicals | — | — | | | — | — | | | — | — | | | 14 | 2 | | | | 2 | C20.59 Manufacture of other chemical products n.e.c. | — | — | | | — | — | | | — | — | | | 8 | — | | | | 3 | C21.10 Manufacture of basic pharmaceutical products | — | — | | | — | — | | | 45 | — | | | 45 | — | | | | 4 | C21.20 Manufacture of pharmaceutical preparations | — | — | | | 9 | — | | | — | — | | | 9 | — | | | | 5 | C22.11 Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres | — | — | | | — | — | | | — | — | | | 21 | 10 | | | | 6 | C26.30 Manufacture of communication equipment | 1 | — | | | — | — | | | — | — | | | 1 | — | | | | 7 | C27.11 Manufacture of electric motors, generators and transformers | — | — | | | — | — | | | — | — | | | 1 | 1 | | | | 8 | C27.12 Manufacture of electricity distribution and control apparatus | 44 | — | | | — | — | | | — | — | | | 91 | 28 | | | | 9 | C28.11 Manufacture of engines and turbines, except aircraft, vehicle and cycle engines | — | — | | | — | — | | | — | — | | | 2 | — | | | | 10 | C29.10 Manufacture of motor vehicles | — | — | | | — | — | | | — | — | | | 29 | — | | | | 11 | C30.40 Manufacture of military fighting vehicles | — | — | | | — | — | | | — | — | | | 12 | — | | | | 12 | D35.11 Production of electricity | — | — | | | — | — | | | — | — | | | 14 | 12 | | | | 13 | D35.12 Transmission of electricity | — | — | | | — | — | | | — | — | | | 92 | 92 | | | | 14 | D35.13 Distribution of electricity | — | — | | | — | — | | | — | — | | | 19 | 17 | | | | 15 | F41.10 Development of building projects | — | — | | | — | — | | | — | — | | | 21 | — | | | | 16 | H49.10 Passenger rail transport, interurban | — | — | | | — | — | | | — | — | | | 30 | 25 | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 392 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | 2. GAR sector information - Turnover based (Continued) | | | | | | | | | | | | | | | | | | | | | m | n | o | p | q | r | s | t | u | v | w | x | y | z | aa | ab | | 17 | H53.20 Other postal and courier activities | — | — | | | — | — | | | — | — | | | 2 | 1 | | | | 18 | J60.20 Television programming and broadcasting activities | — | — | | | — | — | | | — | — | | | 16 | — | | | | 19 | J61.20 Wireless telecommunications activities | — | — | | | — | — | | | — | — | | | 2 | — | | | | 20 | J61.90 Other telecommunications activities | 6 | — | | | — | — | | | — | — | | | 15 | 4 | | | | 21 | J62.20 Computer consultancy and computer facilities management activities | — | — | | | — | — | | | — | — | | | 10 | — | | | | 22 | J64.99 Other financial service activities, except insurance and pension funding n.e.c. | — | — | | | — | — | | | — | — | | | 5 | — | | | | 23 | L68.20 Renting and operating of own or leased real estate | — | — | | | — | — | | | — | — | | | 7 | — | | | | 24 | M73.11 Advertising agencies | — | — | | | — | — | | | — | — | | | 21 | 20 | | | | 25 | N77.11 Renting and leasing of cars and light motor vehicles | — | — | | | — | — | | | — | — | | | 47 | — | | | | 26 | N79.11 Travel agency activities | — | — | | | — | — | | | — | — | | | 1 | — | | | Notes: 1. This template does not include exposure to Mining & Quarrying as the sector is not considered as eligible under the EU Taxonomy Regulation. 2. In cases where a breakdown of Taxonomy eligibility and alignment is not available for the six environmental objectives, taxonomy eligibility and alignment are reported under the objective of CCM in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 393 | ## Schedule to the Sustainability Statement ## EU Taxonomy 2. GAR sector information - CapEx based | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | a | b | c | d | e | f | g | h | i | j | k | l | | Climate Change Mitigation (CCM) | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount2 | | [Gross] carrying amount | | [Gross] carrying amount2 | | [Gross] carrying amount | | [Gross] carrying amount2 | | [Gross] carrying amount | | | Mn GBP | Of which environmentally sustainable (CCM) | Mn GBP | Of which environme ntally sustainable (CCM) | Mn GBP | Of which environmentally sustainable (CCA) | Mn GBP | Of which environme ntally sustainable (CCA) | Mn GBP | Of which environmentally sustainable (WTR) | Mn GBP | Of which environme ntally sustainable (WTR) | | 1 | C10.51 Operation of dairies and cheese making | 3 | — | | | — | — | | | — | — | | | | 2 | C20.14 Manufacture of other organic basic chemicals | 25 | 6 | | | — | — | | | — | — | | | | 3 | C20.59 Manufacture of other chemical products n.e.c. | 7 | — | | | — | — | | | — | — | | | | 4 | C21.10 Manufacture of basic pharmaceutical products | 19 | — | | | — | — | | | — | — | | | | 5 | C21.20 Manufacture of pharmaceutical preparations | — | — | | | — | — | | | — | — | | | | 6 | C22.11 Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres | 23 | 11 | | | — | — | | | — | — | | | | 7 | C26.30 Manufacture of communication equipment | — | — | | | — | — | | | — | — | | | | 8 | C27.11 Manufacture of electric motors, generators and transformers | 1 | 1 | | | — | — | | | — | — | | | | 9 | C27.12 Manufacture of electricity distribution and control apparatus | 65 | 34 | | | — | — | | | 1 | — | | | | 10 | C28.11 Manufacture of engines and turbines, except aircraft, vehicle and cycle engines | 2 | 1 | | | 1 | — | | | — | — | | | | 11 | C29.10 Manufacture of motor vehicles | 33 | — | | | — | — | | | — | — | | | | 12 | C30.40 Manufacture of military fighting vehicles | 7 | 6 | | | — | — | | | — | — | | | | 13 | D35.11 Production of electricity | 24 | 22 | | | — | — | | | — | — | | | | 14 | D35.12 Transmission of electricity | 92 | 92 | | | — | — | | | — | — | | | | 15 | D35.13 Distribution of electricity | 24 | 24 | | | 6 | — | | | — | — | | | | 16 | F41.10 Development of building projects | 22 | — | | | — | — | | | — | — | | | | 17 | G46.46 Wholesale of pharmaceutical goods | 2 | — | | | — | — | | | — | — | | | | 18 | G47.78 Other retail sale of new goods in specialised stores | 8 | 1 | | | — | — | | | — | — | | | | 19 | H49.10 Passenger rail transport, interurban | 38 | 34 | | | 1 | 1 | | | — | — | | | | 20 | H53.20 Other postal and courier activities | 2 | 2 | | | — | — | | | — | — | | | | 21 | J60.20 Television programming and broadcasting activities | 1 | — | | | 23 | — | | | — | — | | | | 22 | J61.20 Wireless telecommunications activities | 2 | — | | | 5 | 4 | | | — | — | | | | 23 | J61.90 Other telecommunications activities | 5 | 1 | | | — | — | | | — | — | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 394 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | 2. GAR sector information - CapEx based (Continued) | | | | | | | | | | | | | | | | | a | b | c | d | e | f | g | h | i | j | k | l | | 24 | J62.20 Computer consultancy and computer facilities management activities | 60 | 1 | | | — | — | | | — | — | | | | 25 | J63.10 Computing infrastructure, data processing, hosting and related activities | 9 | — | | | — | — | | | — | — | | | | 26 | L68.20 Renting and operating of own or leased real estate | 3 | — | | | 3 | — | | | — | — | | | | 27 | M73.11 Advertising agencies | 21 | 16 | | | — | — | | | — | — | | | | 28 | N77.11 Renting and leasing of cars and light motor vehicles | 49 | — | | | — | — | | | — | — | | | | 29 | N79.11 Travel agency activities | 13 | — | | | — | — | | | — | — | | | | 30 | N82.99 Other business support service activities n.e.c. | 2 | — | | | 2 | — | | | — | — | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | m | n | o | p | q | r | s | t | u | v | w | x | y | z | aa | ab | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO)1 | | | | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | Non-Financial corporates (Subject to NFRD) | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount2 | | [Gross] carrying amount | | [Gross] carrying amount2 | | [Gross] carrying amount | | [Gross] carrying amount2 | | [Gross] carrying amount | | [Gross] carrying amount2 | | [Gross] carrying amount | | | Mn GBP | Of which environm entally sustainab le (CE) | Mn GBP | Of which environm entally sustainab le (CE) | Mn GBP | Of which environm entally sustainab le (PPC) | Mn GBP | Of which environm entally sustainab le (PPC) | Mn GBP | Of which environm entally sustainab le (BIO) | Mn EUR | Of which environm entally sustainab le (BIO) | Mn EUR | Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) | Mn EUR | Of which environmenta lly sustainable (CCM + CCA + WTR + CE + PPC + BIO) | | 1 | C10.51 Operation of dairies and cheese making | 1 | — | | | — | — | | | — | — | | | 3 | — | | | | 2 | C20.14 Manufacture of other organic basic chemicals | — | — | | | — | — | | | — | — | | | 26 | 6 | | | | 3 | C20.59 Manufacture of other chemical products n.e.c. | — | — | | | — | — | | | — | — | | | 7 | — | | | | 4 | C21.10 Manufacture of basic pharmaceutical products | 5 | — | | | 22 | — | | | — | — | | | 45 | — | | | | 5 | C21.20 Manufacture of pharmaceutical preparations | — | — | | | 2 | — | | | — | — | | | 2 | — | | | | 6 | C22.11 Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres | — | — | | | — | — | | | — | — | | | 23 | 11 | | | | 7 | C26.30 Manufacture of communication equipment | — | — | | | — | — | | | — | — | | | 1 | — | | | | 8 | C27.11 Manufacture of electric motors, generators and transformers | — | — | | | — | — | | | — | — | | | 1 | 1 | | | | 9 | C27.12 Manufacture of electricity distribution and control apparatus | 22 | — | | | — | — | | | — | — | | | 88 | 34 | | | | 10 | C28.11 Manufacture of engines and turbines, except aircraft, vehicle and cycle engines | — | — | | | — | — | | | — | — | | | 3 | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 395 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | 2. GAR sector information - CapEx based (Continued) | | | | | | | | | | | | | | | | | | | | | m | n | o | p | q | r | s | t | u | v | w | x | y | z | aa | ab | | 11 | C29.10 Manufacture of motor vehicles | — | — | | | — | — | | | — | — | | | 33 | — | | | | 12 | C30.40 Manufacture of military fighting vehicles | — | — | | | — | — | | | — | — | | | 7 | 6 | | | | 13 | D35.11 Production of electricity | — | — | | | — | — | | | — | — | | | 24 | 22 | | | | 14 | D35.12 Transmission of electricity | — | — | | | — | — | | | — | — | | | 92 | 92 | | | | 15 | D35.13 Distribution of electricity | — | — | | | — | — | | | — | — | | | 30 | 24 | | | | 16 | F41.10 Development of building projects | — | — | | | — | — | | | — | — | | | 22 | — | | | | 17 | G46.46 Wholesale of pharmaceutical goods | — | — | | | — | — | | | — | — | | | 2 | — | | | | 18 | G47.78 Other retail sale of new goods in specialised stores | — | — | | | — | — | | | — | — | | | 8 | 1 | | | | 19 | H49.10 Passenger rail transport, interurban | — | — | | | — | — | | | — | — | | | 39 | 35 | | | | 20 | H53.20 Other postal and courier activities | — | — | | | — | — | | | — | — | | | 2 | 2 | | | | 21 | J60.20 Television programming and broadcasting activities | 1 | — | | | — | — | | | — | — | | | 24 | 1 | | | | 22 | J61.20 Wireless telecommunications activities | — | — | | | — | — | | | — | — | | | 7 | 5 | | | | 23 | J61.90 Other telecommunications activities | 20 | — | | | — | — | | | — | — | | | 25 | 1 | | | | 24 | J62.20 Computer consultancy and computer facilities management activities | 15 | — | | | — | — | | | — | — | | | 75 | 1 | | | | 25 | J63.10 Computing infrastructure, data processing, hosting and related activities | — | — | | | — | — | | | — | — | | | 9 | — | | | | 26 | L68.20 Renting and operating of own or leased real estate | — | — | | | — | — | | | — | — | | | 7 | — | | | | 27 | M73.11 Advertising agencies | 3 | — | | | — | — | | | — | — | | | 24 | 16 | | | | 28 | N77.11 Renting and leasing of cars and light motor vehicles | — | — | | | — | — | | | — | — | | | 49 | — | | | | 29 | N79.11 Travel agency activities | — | — | | | — | — | | | — | — | | | 13 | — | | | | 30 | N82.99 Other business support service activities n.e.c. | — | — | | | — | — | | | — | — | | | 5 | — | | | Notes: 1. This template does not include exposure to Mining & Quarrying as the sector is not considered as eligible under the EU Taxonomy Regulation. 2. In cases where a breakdown of Taxonomy eligibility and alignment is not available for the six environmental objectives, taxonomy eligibility and alignment are reported under the objective of CCM in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 396 | ## Schedule to the Sustainability Statement ## EU Taxonomy 3. GAR KPI stock - Turnover based | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | a | b | c | d | e | f | g | h | i | j | k | l | m | | Climate Change Mitigation (CCM) | | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)3 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)3 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)3 | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 18.11% | 2.67% | —% | 0.09% | 1.58% | 0.47% | 0.02% | —% | 0.01% | 0.01% | —% | —% | —% | | 2 | Financial undertakings | 12.83% | 1.14% | —% | 0.03% | 0.29% | 0.38% | 0.01% | —% | —% | —% | —% | —% | —% | | 3 | Credit institutions | 23.91% | 1.92% | —% | 0.03% | 0.09% | 1.16% | —% | —% | —% | —% | —% | —% | —% | | 4 | Loans and advances | 24.61% | 1.98% | —% | 0.03% | 0.09% | 1.19% | —% | —% | —% | —% | —% | —% | —% | | 5 | Debt securities, including UoP | 1.96% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 6 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 7 | Other financial corporations | 7.52% | 0.77% | —% | 0.03% | 0.38% | 0.01% | 0.01% | —% | —% | —% | —% | —% | —% | | 8 | of which investment firms | 7.02% | 0.73% | —% | 0.02% | 0.39% | —% | —% | —% | —% | —% | —% | —% | —% | | 9 | Loans and advances | 3.75% | 0.32% | —% | —% | 0.04% | —% | —% | —% | —% | —% | —% | —% | —% | | 10 | Debt securities, including UoP | 17.97% | 2.10% | —% | 0.07% | 1.56% | —% | —% | —% | —% | —% | —% | —% | —% | | 11 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 12 | of which management companies | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 13 | Loans and advances | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 14 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 15 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 16 | of which insurance undertakings | 14.51% | 1.32% | —% | 0.22% | 0.22% | 0.22% | 0.22% | —% | —% | —% | —% | —% | —% | | 17 | Loans and advances | 14.51% | 1.32% | —% | 0.22% | 0.22% | 0.22% | 0.22% | —% | —% | —% | —% | —% | —% | | 18 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 19 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 20 | Non-financial undertakings | 22.30% | 11.65% | —% | 0.42% | 8.96% | 1.05% | 0.05% | —% | 0.05% | 0.05% | —% | —% | —% | | 21 | Loans and advances | 23.38% | 12.24% | —% | 0.44% | 9.42% | 1.11% | 0.06% | —% | 0.06% | 0.06% | —% | —% | —% | | 22 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 23 | Equity instruments | 7.69% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 397 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | 3. GAR KPI stock - Turnover based (Continued) | | | | | | | | | | | | | | | | | | a | b | c | d | e | f | g | h | i | j | k | l | m | | 24 | Households | 100.00% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | 25 | of which loans collateralised by residential immovable property | 100.00% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | 26 | of which building renovation loans | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | 27 | of which motor vehicle loans | —% | —% | —% | —% | —% | | | | | | | | | | 28 | Local governments financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 29 | Housing financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 30 | Other local government financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 32 | Total GAR assets | 0.82% | 0.12% | —% | —% | 0.07% | 0.02% | —% | —% | —% | —% | —% | —% | —% | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | af | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | Proportion of total new assets covered2 | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)3 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)3 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)3 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)3 | | | | | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 0.42% | —% | —% | —% | 0.08% | —% | —% | —% | 0.36% | —% | —% | —% | 19.45% | 2.69% | —% | 0.09% | 1.59% | 1.03% | | 2 | Financial undertakings | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 13.21% | 1.15% | —% | 0.03% | 0.29% | 0.83% | | 3 | Credit institutions | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 25.07% | 1.92% | —% | 0.03% | 0.09% | 0.27% | | 4 | Loans and advances | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 25.81% | 1.98% | —% | 0.03% | 0.09% | 0.26% | | 5 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 1.96% | —% | —% | —% | —% | 0.01% | | 6 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 7 | Other financial corporations | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 7.54% | 0.79% | —% | 0.03% | 0.38% | 0.56% | | 8 | of which investment firms | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 7.02% | 0.73% | —% | 0.02% | 0.39% | 0.52% | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 398 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | 3. GAR KPI stock - Turnover based (Continued) | | | | | | | | | | | | | | | | | | | | | | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | af | | 9 | Loans and advances | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 3.75% | 0.32% | —% | —% | 0.04% | 0.40% | | 10 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 17.97% | 2.10% | —% | 0.07% | 1.56% | 0.12% | | 11 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 12 | of which management companies | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 13 | Loans and advances | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 14 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 15 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 16 | of which insurance undertakings | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 14.73% | 1.54% | —% | 0.22% | 0.22% | 0.04% | | 17 | Loans and advances | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 14.73% | 1.54% | —% | 0.22% | 0.22% | 0.04% | | 18 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 19 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 20 | Non-financial undertakings | 2.79% | —% | —% | —% | 0.53% | —% | —% | —% | 2.37% | —% | —% | —% | 29.10% | 11.70% | —% | 0.42% | 9.01% | 0.16% | | 21 | Loans and advances | 2.94% | —% | —% | —% | 0.55% | —% | —% | —% | 2.49% | —% | —% | —% | 30.53% | 12.30% | —% | 0.44% | 9.47% | 0.15% | | 22 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 0.01% | | 23 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | 7.69% | —% | | —% | —% | —% | | 24 | Households | —% | —% | —% | —% | | | | | | | | | 100% | —% | —% | —% | —% | 0.05% | | 25 | of which loans collateralised by residential immovable property | —% | —% | —% | —% | | | | | | | | | 100% | —% | —% | —% | —% | 0.05% | | 26 | of which building renovation loans | —% | —% | —% | —% | | | | | | | | | —% | —% | —% | —% | —% | —% | | 27 | of which motor vehicle loans | | | | | | | | | | | | | —% | —% | —% | —% | —% | —% | | 28 | Local governments financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 29 | Housing financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 30 | Other local government financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 32 | Total GAR assets | 0.02% | —% | —% | —% | —% | —% | —% | —% | 0.02% | —% | —% | —% | 0.88% | 0.12% | —% | —% | 0.07% | 22.88% | Notes: 1. This is calculated as total gross carrying amount eligible for the respective EU Taxonomy environmental objective over the total gross carrying amount appearing in Template 1 for the respective row. 2. Proportion of total assets covered is calculated as the total gross carrying amount appearing in Template 1 for the respective row over the Bank’s total assets. 3. This is calculated as total gross carrying amount aligned for the respective EU Taxonomy environmental objective over the total gross carrying amount appearing in Template 1 for the respective row. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 399 | ## Schedule to the Sustainability Statement ## EU Taxonomy 3. GAR KPI stock - Capex based | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | a | b | c | d | e | f | g | h | i | j | k | l | m | | Climate Change Mitigation (CCM) | | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)3 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)3 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)3 | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 21.08% | 3.57% | —% | 0.12% | 2.33% | 0.63% | 0.05% | —% | 0.01% | 0.01% | —% | —% | —% | | 2 | Financial undertakings | 14.97% | 1.83% | —% | 0.03% | 0.79% | 0.38% | —% | —% | —% | —% | —% | —% | —% | | 3 | Credit institutions | 27.93% | 2.04% | —% | 0.06% | 0.12% | 1.16% | —% | —% | —% | —% | —% | —% | —% | | 4 | Loans and advances | 28.83% | 2.11% | —% | 0.06% | 0.13% | 1.19% | —% | —% | —% | —% | —% | —% | —% | | 5 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 6 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 7 | Other financial corporations | 8.77% | 1.73% | —% | 0.01% | 1.11% | 0.01% | —% | —% | —% | —% | —% | —% | —% | | 8 | of which investment firms | 8.38% | 1.75% | —% | —% | 1.17% | —% | —% | —% | —% | —% | —% | —% | —% | | 9 | Loans and advances | 5.19% | 0.77% | —% | —% | 0.18% | —% | —% | —% | —% | —% | —% | —% | —% | | 10 | Debt securities, including UoP | 19.05% | 5.02% | —% | —% | 4.47% | —% | —% | —% | —% | —% | —% | —% | —% | | 11 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 12 | of which management companies | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 13 | Loans and advances | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 14 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 15 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 16 | of which insurance undertakings | 14.29% | 1.54% | —% | 0.22% | 0.22% | 0.22% | —% | —% | —% | —% | —% | —% | —% | | 17 | Loans and advances | 14.29% | 1.54% | —% | 0.22% | 0.22% | 0.22% | —% | —% | —% | —% | —% | —% | —% | | 18 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 19 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 20 | Non-financial undertakings | 30.52% | 13.92% | —% | 0.63% | 11.23% | 2.16% | 0.32% | —% | 0.05% | 0.05% | —% | —% | —% | | 21 | Loans and advances | 31.80% | 14.63% | —% | 0.66% | 11.80% | 2.27% | 0.33% | —% | 0.06% | 0.06% | —% | —% | —% | | 22 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 23 | Equity instruments | 38.46% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 400 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | 3. GAR KPI stock - Capex based (Continued) | | | | | | | | | | | | | | | | | | a | b | c | d | e | f | g | h | i | j | k | l | m | | 24 | Households | 100.00% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | 25 | of which loans collateralised by residential immovable property | 100.00% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | 26 | of which building renovation loans | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | 27 | of which motor vehicle loans | —% | —% | —% | —% | —% | | | | | | | | | | 28 | Local governments financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 0 | 0 | 0 | | 29 | Housing financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 0 | 0 | 0 | | 30 | Other local government financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 0 | 0 | 0 | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 0 | 0 | 0 | | 32 | Total GAR assets | 0.95% | 0.16% | —% | 0.01% | 0.10% | 0.03% | —% | —% | —% | —% | 0 | 0 | 0 | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | af | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | Proportion of total new assets covered2 | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)3 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)3 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)3 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)3 | | | | | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 0.53% | —% | —% | —% | 0.19% | —% | —% | —% | —% | —% | —% | —% | 22.45% | 3.62% | —% | 0.12% | 2.33% | 1.03% | | 2 | Financial undertakings | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 15.36% | 1.83% | —% | 0.03% | 0.79% | 0.83% | | 3 | Credit institutions | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 29.09% | 2.04% | —% | 0.06% | 0.12% | 0.27% | | 4 | Loans and advances | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 30.02% | 2.11% | —% | 0.06% | 0.13% | 0.26% | | 5 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 0.01% | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 401 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | 3. GAR KPI stock - Capex based (Continued) | | | | | | | | | | | | | | | | | | | | | | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | af | | 6 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 7 | Other financial corporations | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 8.79% | 1.73% | —% | 0.01% | 1.11% | 0.56% | | 8 | of which investment firms | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 8.38% | 1.75% | —% | —% | 1.17% | 0.52% | | 9 | Loans and advances | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 5.19% | 0.77% | —% | —% | 0.18% | 0.40% | | 10 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 19.05% | 5.02% | —% | —% | 4.47% | 0.12% | | 11 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 12 | of which management companies | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 13 | Loans and advances | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 14 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 15 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 16 | of which insurance undertakings | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 14.51% | 1.54% | —% | 0.22% | 0.22% | 0.04% | | 17 | Loans and advances | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 14.51% | 1.54% | —% | 0.22% | 0.22% | 0.04% | | 18 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 19 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 20 | Non-financial undertakings | 3.53% | —% | —% | —% | 1.27% | —% | —% | —% | —% | —% | —% | —% | 37.53% | 14.23% | —% | 0.63% | 11.28% | 0.16% | | 21 | Loans and advances | 3.66% | —% | —% | —% | 1.33% | —% | —% | —% | —% | —% | —% | —% | 39.11% | 14.96% | —% | 0.66% | 11.86% | 0.15% | | 22 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 0.01% | | 23 | Equity instruments | 7.69% | —% | | —% | —% | —% | | —% | —% | —% | | —% | 46.15% | —% | | —% | —% | —% | | 24 | Households | —% | —% | —% | —% | | | | | | | | | 100% | —% | —% | —% | —% | 0.05% | | 25 | of which loans collateralised by residential immovable property | —% | —% | —% | —% | | | | | | | | | 100% | —% | —% | —% | —% | 0.05% | | 26 | of which building renovation loans | —% | —% | —% | —% | | | | | | | | | —% | —% | —% | —% | —% | —% | | 27 | of which motor vehicle loans | | | | | | | | | | | | | —% | —% | —% | —% | —% | —% | | 28 | Local governments financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 402 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | 3. GAR KPI stock - Capex based (Continued) | | | | | | | | | | | | | | | | | | | | | | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | af | | 29 | Housing financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 30 | Other local government financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 32 | Total GAR assets | 0.02% | —% | —% | —% | 0.01% | —% | —% | —% | —% | —% | —% | —% | 1.01% | 0.16% | —% | 0.01% | 0.11% | 22.88% | Notes: 1. This is calculated as total gross carrying amount eligible for the respective EU Taxonomy environmental objective over the total gross carrying amount appearing in Template 1 for the respective row. 2. Proportion of total assets covered is calculated as the total gross carrying amount appearing in Template 1 for the respective row over the Bank’s total assets. 3. This is calculated as total gross carrying amount aligned for the respective EU Taxonomy environmental objective over the total gross carrying amount appearing in Template 1 for the respective row. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 403 | ## Schedule to the Sustainability Statement ## EU Taxonomy 4. GAR KPI flow - Turnover based | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | % (compared to flow of total eligible assets)1 | | a | b | c | d | e | f | g | h | i | j | k | l | m | | Climate Change Mitigation (CCM) | | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)2 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)2 | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)4 | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 15.92% | 2.97% | —% | 0.07% | 0.42% | 1.06% | —% | —% | —% | —% | —% | —% | —% | | 2 | Financial undertakings | 11.52% | 0.86% | —% | —% | 0.09% | —% | —% | —% | —% | —% | —% | —% | —% | | 3 | Credit institutions | 13.77% | 0.40% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 4 | Loans and advances5 | 13.77% | 0.40% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 5 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 6 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 7 | Other financial corporations | 9.82% | 1.21% | —% | —% | 0.15% | —% | —% | —% | —% | —% | —% | —% | —% | | 8 | of which investment firms | 9.82% | 1.21% | —% | —% | 0.15% | —% | —% | —% | —% | —% | —% | —% | —% | | 9 | Loans and advances5 | 6.28% | 0.42% | —% | —% | 0.42% | —% | —% | —% | —% | —% | —% | —% | —% | | 10 | Debt securities, including UoP | 11.82% | 1.65% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 11 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 12 | of which management companies | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 13 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 14 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 15 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 16 | of which insurance undertakings | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 17 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 18 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 19 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 20 | Non-financial undertakings | 36.40% | 12.80% | —% | 0.40% | 2.00% | 6.00% | —% | —% | —% | —% | —% | —% | —% | | 21 | Loans and advances5 | 37.97% | 13.50% | —% | 0.42% | 2.11% | 6.33% | —% | —% | —% | —% | —% | —% | —% | | 22 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 23 | Equity instruments | 7.69% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 24 | Households | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | 25 | of which loans collateralised by residential immovable property | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 404 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | 4. GAR KPI flow - Turnover based (Continued) | | | | | | | | | | | | | | | | | | a | b | c | d | e | f | g | h | i | j | k | l | m | | 26 | of which building renovation loans | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | 27 | of which motor vehicle loans | —% | —% | —% | —% | —% | | | | | | | | | | 28 | Local governments financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 29 | Housing financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 30 | Other local government financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 32 | Total GAR assets | 0.38% | 0.07% | —% | —% | 0.01% | 0.03% | —% | —% | —% | —% | —% | —% | —% | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | % (compared to flow of total eligible assets)1 | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | af | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)2 | | | | | Proportion of total new assets covered3 | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 0.14% | —% | —% | —% | 0.07% | —% | —% | —% | —% | —% | —% | —% | 17.20% | 2.97% | —% | 0.07% | 0.42% | 1.27% | | 2 | Financial undertakings | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 11.52% | 0.86% | —% | —% | 0.09% | 1.05% | | 3 | Credit institutions | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 13.77% | 0.40% | —% | —% | —% | 0.45% | | 4 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 13.77% | 0.40% | —% | —% | —% | 0.45% | | 5 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 6 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 7 | Other financial corporations | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 9.82% | 1.21% | —% | —% | 0.15% | 0.60% | | 8 | of which investment firms | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 9.82% | 1.21% | —% | —% | 0.15% | 0.60% | | 9 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 6.28% | 0.42% | —% | —% | 0.42% | 0.22% | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 405 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | 4. GAR KPI flow - Turnover based (Continued) | | | | | | | | | | | | | | | | | | | | | | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | af | | 10 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 11.82% | 1.65% | —% | —% | —% | 0.38% | | 11 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 12 | of which management companies | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 13 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 14 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 15 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 16 | of which insurance undertakings | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 17 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 18 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 19 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 20 | Non-financial undertakings | 0.80% | —% | —% | —% | 0.40% | —% | —% | —% | —% | —% | —% | —% | 43.60% | 12.80% | —% | 0.40% | 2.00% | 0.23% | | 21 | Loans and advances5 | 0.84% | —% | —% | —% | 0.42% | —% | —% | —% | —% | —% | —% | —% | 45.57% | 13.50% | —% | 0.42% | 2.11% | 0.21% | | 22 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 23 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | 7.69% | —% | | —% | —% | 0.01% | | 24 | Households | —% | —% | —% | —% | | | | | | | | | —% | —% | —% | —% | —% | —% | | 25 | of which loans collateralised by residential immovable property | —% | —% | —% | —% | | | | | | | | | —% | —% | —% | —% | —% | —% | | 26 | of which building renovation loans | —% | —% | —% | —% | | | | | | | | | —% | —% | —% | —% | —% | —% | | 27 | of which motor vehicle loans | | | | | | | | | | | | | —% | —% | —% | —% | —% | —% | | 28 | Local governments financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 29 | Housing financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 30 | Other local government financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 32 | Total GAR assets | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 0.41% | 0.07% | —% | —% | 0.01% | 53.96% | Notes: 1. The flow represents new assets originated during the year that remained on part of the balance sheet as of the reporting date. 2. This is calculated as total gross carrying amount of flow eligible for the respective EU Taxonomy environmental objective over the total gross carrying amount of flow for the respective row. 3. Proportion of total new assets covered is calculated as the total gross carrying amount appearing in the flow for the respective row over the Bank’s total assets. 4. This is calculated as total gross carrying amount of flow aligned for the respective EU Taxonomy environmental objective over the total gross carrying amount of flow for the respective row. 5. Cash collateral and settlement balances have been excluded from Loans and advances for flow calculation. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 406 | ## Schedule to the Sustainability Statement ## EU Taxonomy 4. GAR KPI flow - CapEx based | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | % (compared to flow of total eligible assets)1 | | a | b | c | d | e | f | g | h | i | j | k | l | m | | Climate Change Mitigation (CCM) | | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)2 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)2 | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)4 | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 29.16% | 4.81% | —% | 0.14% | 2.48% | 1.70% | 0.14% | —% | —% | —% | —% | —% | —% | | 2 | Financial undertakings | 26.40% | 2.24% | —% | —% | 0.52% | —% | —% | —% | —% | —% | —% | —% | —% | | 3 | Credit institutions | 31.54% | 0.40% | —% | —% | 0.20% | —% | —% | —% | —% | —% | —% | —% | —% | | 4 | Loans and advances5 | 31.54% | 0.40% | —% | —% | 0.20% | —% | —% | —% | —% | —% | —% | —% | —% | | 5 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 6 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 7 | Other financial corporations | 22.51% | 3.63% | —% | —% | 0.76% | —% | —% | —% | —% | —% | —% | —% | —% | | 8 | of which investment firms | 22.51% | 3.63% | —% | —% | 0.76% | —% | —% | —% | —% | —% | —% | —% | —% | | 9 | Loans and advances5 | 41.42% | 7.11% | —% | —% | 2.09% | —% | —% | —% | —% | —% | —% | —% | —% | | 10 | Debt securities, including UoP | 11.82% | 1.65% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 11 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 12 | of which management companies | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 13 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 14 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 15 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 16 | of which insurance undertakings | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 17 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 18 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 19 | Equity instruments | —% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 20 | Non-financial undertakings | 42.00% | 16.80% | —% | 0.80% | 11.60% | 9.60% | 0.80% | —% | —% | —% | —% | —% | —% | | 21 | Loans and advances5 | 42.19% | 17.72% | —% | 0.84% | 12.24% | 10.13% | 0.84% | —% | —% | —% | —% | —% | —% | | 22 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 23 | Equity instruments | 38.46% | —% | | —% | —% | —% | —% | | —% | —% | —% | | —% | | 24 | Households | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 407 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | 4. GAR KPI flow - CapEx based (Continued) | | | | | | | | | | | | | | | | | | a | b | c | d | e | f | g | h | i | j | k | l | m | | 25 | of which loans collateralised by residential immovable property | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | 26 | of which building renovation loans | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | 27 | of which motor vehicle loans | —% | —% | —% | —% | —% | | | | | | | | | | 28 | Local governments financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 29 | Housing financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 30 | Other local government financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 32 | Total GAR assets | 0.69% | 0.11% | 0.00% | 0.00% | 0.06% | 0.04% | 0.00% | 0.00% | 0.00% | —% | —% | —% | —% | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | % (compared to flow of total eligible assets)1 | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | af | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)2 | | | | | Proportion of total new assets covered3 | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)4 | | | | | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 0.21% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 31.07% | 4.95% | —% | 0.14% | 2.48% | 1.27% | | 2 | Financial undertakings | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 26.40% | 2.24% | —% | —% | 0.52% | 1.05% | | 3 | Credit institutions | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 31.54% | 0.40% | —% | —% | 0.20% | 0.45% | | 4 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 31.54% | 0.40% | —% | —% | 0.20% | 0.45% | | 5 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 6 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 7 | Other financial corporations | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 22.51% | 3.63% | —% | —% | 0.76% | 0.60% | | 8 | of which investment firms | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 22.51% | 3.63% | —% | —% | 0.76% | 0.60% | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 408 | Schedule to the Sustainability Statement EU Taxonomy | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | 4. GAR KPI flow - CapEx based (Continued) | | | | | | | | | | | | | | | | | | | | | | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | af | | 9 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 41.42% | 7.11% | —% | —% | 2.09% | 0.22% | | 10 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 11.82% | 1.65% | —% | —% | —% | 0.38% | | 11 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 12 | of which management companies | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 13 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 14 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 15 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 16 | of which insurance undertakings | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 17 | Loans and advances5 | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 18 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 19 | Equity instruments | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | —% | —% | —% | | 20 | Non-financial undertakings | 1.20% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 52.80% | 17.60% | —% | 0.80% | 11.60% | 0.23% | | 21 | Loans and advances5 | 0.84% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 53.16% | 18.57% | —% | 0.84% | 12.24% | 0.21% | | 22 | Debt securities, including UoP | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 23 | Equity instruments | 7.69% | —% | | —% | —% | —% | | —% | —% | —% | | —% | 46.15% | —% | | —% | —% | 0.01% | | 24 | Households | —% | —% | —% | —% | | | | | | | | | —% | —% | —% | —% | —% | —% | | 25 | of which loans collateralised by residential immovable property | —% | —% | —% | —% | | | | | | | | | —% | —% | —% | —% | —% | —% | | 26 | of which building renovation loans | —% | —% | —% | —% | | | | | | | | | —% | —% | —% | —% | —% | —% | | 27 | of which motor vehicle loans | | | | | | | | | | | | | —% | —% | —% | —% | —% | —% | | 28 | Local governments financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 29 | Housing financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 30 | Other local government financing | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | 32 | Total GAR assets | 0.01% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 0.73% | 0.12% | —% | —% | 0.06% | 53.96% | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 409 | Schedule to the Sustainability Statement EU Taxonomy Notes: 1. The flow represents new assets originated during the year that remained part of the balance sheet on the reporting date. 2. This is calculated as total gross carrying amount of flow eligible for the respective EU Taxonomy environmental objective over the total gross carrying amount of flow for the respective row. 3. Proportion of total new assets covered is calculated as the total gross carrying amount appearing in the flow for the respective row over the Bank’s total assets. 4. This is calculated as total gross carrying amount of flow aligned for the respective EU Taxonomy environmental objective over the total gross carrying amount of flow for the respective row. 5. Cash collateral and balances has been excluded from Loans and advances for flow calculation. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 410 | ## Schedule to the Sustainability Statement ## EU Taxonomy 5. KPI off-balance sheet stock exposures - Turnover based | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | a | b | c | d | e | f | g | h | i | j | k | l | m | | Climate Change Mitigation (CCM) | | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 15.03% | 11.98% | —% | 0.00% | 5.65% | 0.00% | 0.00% | —% | 0.00% | 0.11% | —% | —% | —% | | 2 | Assets under management (AuM KPI) | 37.42% | 7.83% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 15.14% | 11.98% | —% | 0.00% | 5.65% | | 2 | Assets under management (AuM KPI) | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 37.42% | 7.83% | —% | —% | —% | Notes: 1. This is calculated as total gross carrying amount eligible for the respective EU Taxonomy environmental objective over the total gross carrying amount appearing in Template 1 for the respective row. 2. This is calculated as total gross carrying amount aligned for the respective EU Taxonomy environmental objective over the total gross carrying amount appearing in Template 1 for the respective row. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 411 | ## Schedule to the Sustainability Statement ## EU Taxonomy 5. KPI off-balance sheet stock exposures - CapEx based | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | a | b | c | d | e | f | g | h | i | j | k | l | m | | Climate Change Mitigation (CCM) | | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 33.11% | 27.34% | —% | 0.79% | 14.01% | —% | —% | —% | 0.00% | 0.23% | —% | —% | —% | | 2 | Assets under management (AuM KPI) | 37.21% | 15.25% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 0.56% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 33.90% | 27.34% | —% | 0.79% | 14.01% | | 2 | Assets under management (AuM KPI) | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 37.21% | 15.25% | —% | —% | —% | Notes: 1. This is calculated as total gross carrying amount eligible for the respective EU Taxonomy environmental objective over the total gross carrying amount appearing in Template 1 for the respective row. 2. This is calculated as total gross carrying amount aligned for the respective EU Taxonomy environmental objective over the total gross carrying amount appearing in Template 1 for the respective row. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 412 | ## Schedule to the Sustainability Statement ## EU Taxonomy 5. KPI off-balance sheet flow exposures - Turnover based | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | a | b | c | d | e | f | g | h | i | j | k | l | m | | Climate Change Mitigation (CCM) | | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 14.86% | 12.16% | —% | —% | 6.76% | —% | —% | —% | —% | —% | —% | —% | —% | | 2 | Assets under management (AuM KPI) | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 14.86% | 12.16% | —% | —% | 6.76% | | 2 | Assets under management (AuM KPI) | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | Notes: 1. This is calculated as total gross carrying amount eligible for the respective EU Taxonomy environmental objective over the total gross carrying amount of the flow (not required to be disclosed as per the EU Taxonomy Regulation) for the respective row. 2. This is calculated as total gross carrying amount aligned for the respective EU Taxonomy environmental objective over the total gross carrying amount of the flow (not required to be disclosed as per the EU Taxonomy Regulation) for the respective row. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 413 | ## Schedule to the Sustainability Statement ## EU Taxonomy 5. KPI off-balance sheet flow exposures - CapEx based | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | a | b | c | d | e | f | g | h | i | j | k | l | m | | Climate Change Mitigation (CCM) | | | | | Climate Change Adaptation (CCA) | | | | Water and marine resources (WTR) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)1 | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)2 | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 50.00% | 44.59% | —% | 2.70% | 25.68% | —% | —% | —% | —% | 2.70% | —% | —% | —% | | 2 | Assets under management (AuM KPI) | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | n | o | p | q | r | s | t | u | v | w | x | z | aa | ab | ac | ad | ae | | Circular economy (CE) | | | | Pollution (PPC) | | | | Biodiversity and Ecosystems (BIO) | | | | TOTAL (CCM + CCA + WTR + CE + PPC + BIO) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)1 | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)2 | | | | | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which enabling | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | 52.70% | 44.59% | 0 | 2.70% | 25.68% | | 2 | Assets under management (AuM KPI) | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | —% | Notes: 1. This is calculated as total gross carrying amount eligible for the respective EU Taxonomy objective over the total gross carrying amount of the flow (not required to be disclosed as per the EU Taxonomy Regulation) for the respective row. 2. This is calculated as total gross carrying amount aligned for the respective EU Taxonomy objective over the total gross carrying amount of the flow (not required to be disclosed as per the EU Taxonomy Regulation) for the respective row. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 414 | ## Schedule to the Sustainability Statement ## EU Taxonomy Nuclear and fossil gas related activity description | | | | --- | --- | | | | | Section | Activity Description | | 4.26 - Pre-commercial stages of advanced technologies to produce energy from nuclear processes with minimal waste from the fuel cycle; | Research, development, demonstration, and deployment of innovative electricity generation facilities, licenced by Member States’ competent authorities in accordance with applicable national law, that produce energy from nuclear processes with minimal waste from the fuel cycle. | | 4.27 - Construction and safe operation of new nuclear power plants, for the generation of electricity or heat, including for hydrogen production, using best-available technologies | Construction and safe operation of new nuclear installations for which the construction permit has been issued by 2045 by Member States’ competent authorities, in accordance with applicable national law, to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production (new nuclear installations or NNIs), as well as their safety upgrades | | 4.28 - Electricity generation from nuclear energy in existing installations | Modification of existing nuclear installations for the purposes of extension, authorised by Member States’ competent authorities by 2040 in accordance with applicable national law, of the service time of safe operation of nuclear installations that produce electricity or heat from nuclear energy (‘nuclear power plants’ or ‘NPPs’) | | 4.29 - Electricity generation from fossil gaseous fuels | Construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. This activity does not include electricity generation from the exclusive use of renewable non-fossil gaseous and liquid fuels as referred to in Section 4.7 of this Annex I to Delegated Regulation (EU) 2021/2139 and biogas and bio-liquid fuels as referred to in Section 4.8 of Annex I to Delegated Regulation (EU) 2021/2139 | | 4.30 - High-efficiency co-generation of heat/cool and power from fossil gaseous fuels | Construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. This activity does not include high-efficiency co-generation of heat/cool and power from the exclusive use of renewable non-fossil gaseous and liquid fuels referred to in Section 4.19 of Annex I to Delegated Regulation (EU) 2021/2139, and biogas and bio-liquid fuels referred to in Section 4.20 of Annex I to Delegated Regulation (EU) 2021/2139 | | 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system | Construction, refurbishment, and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels connected to efficient district heating and cooling within the meaning of Article 2, point (41) of Directive 2012/27/EU. This activity does not include production of heat/cool in an efficient district heating from the exclusive use of renewable non-fossil gaseous and liquid fuels referred to in Section 4.23 of Annex I to Delegated Regulation (EU) 2021/2139 and biogas and bio-liquid fuels referred to in Section 4.24 of Annex I to Delegated Regulation (EU) 2021/2139 | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 415 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Stock Template 1 Nuclear and fossil gas related activities - Turnover and CapEx based | | | | | --- | --- | --- | | | | | | Row | Nuclear energy related activities | 31-Dec-24 | | 1 | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | Yes | | 2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | Yes | | 3 | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | Yes | | Fossil gas related activities | | | | 4 | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | Yes | | 5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | Yes | | 6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | Yes | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 416 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Stock Template 2 Taxonomy-aligned economic activities (denominator) - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount ( £ m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 3 | —% | 3 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI2 | 336 | 0.12% | 334 | 0.12% | 2 | —% | | 8 | Total KPI3 | 339 | 0.12% | 337 | 0.12% | 2 | —% | Notes: 1. £3m represents the Bank’s share of the counterparty’s aligned Turnover for the activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139. 2. £336m represents the CCM and CCA aligned turnover after excluding the Bank’s share of the counterparty’s CCA and CCM aligned Turnover from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £339m represents CCM and CCA taxonomy aligned economic activities based on the Turnover KPI. The 'Total GAR assets' of £279,592m is used as the denominator for calculating various percentages appearing in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 417 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Stock Template 2 Taxonomy-aligned economic activities (denominator) - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount ( £ m) | % | Amount ( £ m) | % | Amount ( £ m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 1 | —% | 1 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 2 | —% | 2 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI2 | 453 | 0.16% | 447 | 0.16% | 6 | —% | | 8 | Total KPI3 | 456 | 0.16% | 450 | 0.16% | 6 | —% | Notes: 1. £1m and £2m represents the Bank’s share of the counterparty’s aligned CapEx for the economic activities referred to in Sections 4.27 and 4.28 of Annexes I and II to Delegated Regulation 2021/2139. 2. £453m represents the CCM and CCA aligned Capex for the Bank after excluding the Bank’s share of the counterparty’s CCM and CCA aligned CapEx from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £456m represents Taxonomy CCM and CCA aligned economic activities based on the CaPex KPI. The 'Total GAR assets' of £279,592m is used as the denominator for calculating various percentages appearing in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 418 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Stock Template 3 Taxonomy-aligned economic activities (numerator) - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI1 | 3 | 0.88% | 3 | 0.89% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI2 | 336 | 99.12% | 334 | 99.11% | 2 | 100.00% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI3 | 339 | 100.00% | 337 | 100.00% | 2 | 100.00% | Notes: 1. £3m represents the Bank’s share of the counterparty’s aligned Turnover from the economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139. 2. £336m represents the CCM and CCA aligned Turnover for the Bank after excluding the Bank’s share of the counterparty’s CCM and CCA aligned Turnover from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £339m represents taxonomy CCM and CCA aligned activities based on the Turnover KPI. The aligned Turnover is used as the denominator for calculating various percentages appearing in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 419 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Stock Template 3 Taxonomy-aligned economic activities (numerator) - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI1 | 1 | 0.22% | 1 | 0.22% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI1 | 2 | 0.44% | 2 | 0.44% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI2 | 453 | 99.34% | 447 | 99.34% | 6 | 100.00% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI3 | 456 | 100% | 450 | 100% | 6 | 100.00% | Notes: 1. £1m and £2m represents the Bank’s share of the counterparty’s aligned CapEx from the economic activities referred to in Section 4.26 and 4,27 of Annexes I and II to Delegated Regulation 2021/2139. 2. £453m represents the CCM and CCA aligned CapEx for the Bank after excluding the Bank’s share of the counterparty’s CCM and CCA aligned CapEx from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £456m represents the Bank’s share from the counterparty’s CCM and CCA aligned CapEx. The aligned CapEx is used as the denominator for calculating various percentages appearing in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 420 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Stock Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the Year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | %4 | Amount (£m) | %4 | Amount (£m) | %4 | | 1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 1 | —% | 1 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 1 | —% | 1 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI2 | 2,000 | 0.72% | 1,943 | 0.70% | 57 | 0.02% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI3 | 2,002 | 0.72% | 1,945 | 0.70% | 57 | 0.02% | Notes: 1. £1m and £1m represents the Bank’s share of the counterparty’s eligible but not aligned turnover from the economic activities referred to in Section 4.29 and Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139. 2. £2,000m represents the CCM and CCA eligible but not aligned Turnover for the Bank after excluding the Bank's share of the counterparty’s CCM and CCA eligible but not aligned Turnover from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. This is the calculated as the sum of taxonomy eligible but not aligned activity for the Taxonomy environmental objectives of CCM and CCA. 3. £2,002m represents the Bank’s share from the counterparty’s Turnover that is eligible but not aligned for the objective of CCM and CCA. 4. The 'Total GAR assets' of £279,592m is used as the denominator for calculating various percentages for December 2024 appearing in the above template, but not reported anywhere in this Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 421 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Stock Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | %3 | Amount (£m) | %3 | Amount (£m) | %3 | | 1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 2,280 | 0.82% | 2,206 | 0.79% | 74 | 0.03% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI2 | 2,280 | 0.82% | 2,206 | 0.79% | 74 | 0.03% | Notes: 1. £2,280m represents the CCM and CCA eligible but not aligned CapEx for the Bank after excluding the Bank’s share of the counterparty’s CCM and CCA eligible but not aligned CapEx from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £2,280m represents the Bank’s share from the counterparty’s CapEx that is CCM and CCA eligible but not aligned. 3. The 'Total GAR assets' of £279,592m is used as the denominator for calculating various percentages appearing in the above template, but not reported anywhere in the Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 422 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Stock Template 5 Taxonomy non-eligible economic activities - Turnover based | | | | | | --- | --- | --- | --- | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | Amount (£m) | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | —% | | 2 | Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | —% | | 3 | Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 1 | 0.00% | | 4 | Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | —% | | 5 | Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator Of the applicable KPI | - | —% | | 6 | Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | —% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI2 | 277,141 | 99.12% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI3,4 | 277,142 | 99.12% | Notes: 1. £1m represents the Bank’s share from the counterparty’s Turnover that is not Taxonomy eligible from the activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139. 2. £277,141m represents the share of Turnover for the Bank that is not Taxonomy eligible after excluding the assets that are not Taxonomy eligible for the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139 3. £277,142m represents the covered assets that are not Taxonomy eligible. This includes assets that only form part of the denominator. 4. The covered asset of £279,592m is used as the denominator for calculating various percentages for December 2024 appearing in the above template, but not reported anywhere in this Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 423 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Stock Template 5 Taxonomy non-eligible economic activities - CapEx based | | | | | | --- | --- | --- | --- | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | Amount (£m) | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 2 | Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 2 | —% | | 3 | Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 4 | Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 5 | Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 6 | Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI2 | 276,762 | 98.99% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI’s 3,4 | 276,764 | 98.99% | Notes: 1. £2m represents the Bank’s share from the counterparty’s CapEx that is not Taxonomy eligible from the economic activities referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139. 2. £276,762m represents the share of CapEx for the Bank that is not Taxonomy eligible after excluding the Bank’s share of the counterparty’s CapEx that is not Taxonomy eligible for the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £276,764m represents the covered assets that are not Taxonomy eligible. This includes assets that only form part of the denominator. 4. The percentages in all the columns are calculated as a proportion of total covered assets i.e. £279,592m. The total covered assets are not presented anywhere in this template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 424 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Flow Template 1 Nuclear and fossil gas related activities - Turnover and CapEx based | | | | | --- | --- | --- | | | | | | Row | Nuclear energy related activities | 31-Dec-24 | | 1 | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | No | | 2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | No | | 3 | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | No | | Fossil gas related activities | | | | 4 | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | No | | 5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | Yes | | 6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | No | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 425 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Flow Template 2 Taxonomy-aligned economic activities (denominator) - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | %3 | Amount (£m) | %3 | Amount (£m) | %3 | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 42 | 0.07% | 42 | 0.07% | 0 | —% | | 8 | Total KPI2 | 42 | 0.07% | 42 | 0.07% | 0 | —% | Notes: 1. £42m represents the CCM and CCA aligned turnover for the Bank after excluding the Bank’s share of the counterparty’s aligned Turnover for the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £42m represents CCM and CCA taxonomy aligned economic activities based on the Turnover KPI. 3. The 'Total GAR assets' of £59,823m is used as the denominator for calculating various percentages for December 2024 appearing in the above template, but not reported anywhere in the Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 426 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Flow Template 2 Taxonomy-aligned economic activities (denominator) - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | %3 | Amount (£m) | %3 | Amount (£m) | %3 | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 70 | 0.12% | 68 | 0.11% | 2 | —% | | 8 | Total KPI2 | 70 | 0.12% | 68 | 0.11% | 2 | —% | Notes: 1. £70m represents the CCM and CCA aligned Capex for the Bank after excluding the Bank’s share of the counterparty’s aligned CapEx for the economic activities  referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £70m represents CCM and CCA Taxonomy aligned economic activities based on the CaPex KPI. 3. The 'Total GAR assets' of £59,823m is used as the denominator for calculating various percentages for December 2024 appearing in the above template, but not reported anywhere in the Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 427 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Flow Template 3 Taxonomy-aligned economic activities (numerator) - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI1 | 42 | 100.00% | 42 | 100.00% | 0 | 100.00% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI2 | 42 | 100.00% | 42 | 100.00% | 0 | 100.00% | Notes: 1. £42m represents the CCM and CCA aligned Turnover for the Bank after excluding the Bank’s share of the counterparty’s aligned Turnover for the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £42m represents CCM and CCA taxonomy aligned economic activities based on the Turnover KPI. The aligned Turnover is used as the denominator for calculating various percentages appearing in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 428 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Flow Template 3 Taxonomy-aligned economic activities (numerator) - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI1 | 70 | 100.00% | 68 | 100.00% | 2 | 100.00% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI2 | 70 | 100.00% | 68 | 100.00% | 2 | 100.00% | Notes: 1. £70m represents the CCM and CCA aligned CapEx for the Bank after excluding the Bank’s share of the counterparty’s aligned CapEx from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £70m represents the CCM and CCA aligned CapEx. The aligned Turnover is used as the denominator for calculating various percentages appearing in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 429 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Flow Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the Year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | %3 | Amount (£m) | %3 | Amount (£m) | %3 | | 1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy- aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 198 | 0.33% | 183 | 0.31% | 15 | 0.03% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI2 | 198 | 0.33% | 183 | 0.31% | 15 | 0.03% | Notes: 1. £198m represents the CCM and CCA eligible but not aligned Turnover for the Bank after excluding the Barclays share of the counterparty’s eligible but not aligned Turnover from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. This is the calculated as the sum of taxonomy eligible but not aligned activity for the Taxonomy environmental objectives of climate change mitigation and climate change adaptation. 2. £198m represents the Bank’s share from the counterparty’s Turnover that is eligible but not aligned for CCM and CCA. 3. The 'Total GAR assets' of £59,823m is used as the denominator for calculating various percentages for December 2024 appearing in the above template, but not reported anywhere in the Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 430 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Flow Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | %3 | Amount (£m) | %3 | Amount (£m) | %3 | | 1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 366 | 0.61% | 344 | 0.58% | 22 | 0.04% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI2 | 366 | 0.61% | 344 | 0.58% | 22 | 0.04% | Notes: 1. 366m represents the CCM and CCA eligible but not aligned CapEx for Barclays after excluding the Bank’s share of the counterparty’s eligible but not aligned CapEx from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £366m represents the Bank’s share from the counterparty’s CapEx that is eligible but not aligned for CCM and CCA. 3. The 'Total GAR assets' of £59,823m is used as the denominator for calculating various percentages appearing in the above template, but not reported anywhere in the Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 431 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Flow Template 5 Taxonomy non-eligible economic activities - Turnover based | | | | | | --- | --- | --- | --- | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | Amount (£m) | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | —% | | 2 | Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | —% | | 3 | Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | —% | | 4 | Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | —% | | 5 | Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator Of the applicable KPI | - | —% | | 6 | Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | —% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 59,580 | 99.59% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI2,3 | 59,580 | 99.59% | Notes: 1. £59,580m represents the share of Turnover for the Bank that is not Taxonomy eligible after excluding the Bank’s share of the counterparty’s Turnover that is not Taxonomy eligible for the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139 2. £59,580m represents the covered assets that are not Taxonomy eligible. This includes assets that only form part of the denominator. 3. The covered asset of £59,823m is used as the denominator for calculating various percentages for December 2024 appearing in the above template, but not reported anywhere in the Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 432 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: On- Balance Sheet Flow Template 5 Taxonomy non-eligible economic activities - CapEx based | | | | | | --- | --- | --- | --- | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | Amount (£m) | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 2 | Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 0 | —% | | 3 | Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 4 | Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 5 | Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 6 | Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 59,384 | 99.27% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI’s2,3 | 59,384 | 99.27% | Notes: 1. £59,384m represents the share of CapEx for the Bank that is not Taxonomy eligible after excluding the Bank’s share of the counterparty’s CapEx that is not Taxonomy eligible for the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £59,384m represents the covered assets that are not Taxonomy eligible. This includes assets that only form part of the denominator. 3. The percentages in the all the columns are calculated as a proportion of total covered assets i.e. £59,823m. The total covered assets are not presented anywhere in the template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 433 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Stock Template 1 Nuclear and fossil gas related activities - Turnover and CapEx based | | | | | --- | --- | --- | | | | | | Row | Nuclear energy related activities | 31-Dec-24 | | 1 | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | No | | 2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | No | | 3 | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | Yes | | Fossil gas related activities | | | | 4 | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | Yes | | 5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | Yes | | 6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | Yes | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 434 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Stock Template 2 Taxonomy-aligned economic activities (denominator) - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 106 | 11.98% | 106 | 11.98% | 0 | —% | | 8 | Total KPI2 | 106 | 11.98% | 106 | 11.98% | 0 | —% | Notes: 1. £106m represents the CCM and CCA aligned turnover for the Bank's financial guarantees after excluding the Bank's share of financial guarantees counterparty’s CCM and CCA aligned Turnover from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £106m represents the CCM and CCA taxonomy aligned financial guarantees activities based on the Turnover KPI. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 435 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Stock Template 2 Taxonomy-aligned economic activities (denominator) - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 2 | 0.23% | 2 | 0.23% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 1 | 0.11% | 1 | 0.11% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI2 | 239 | 27.00% | 239 | 27.00% | 0 | —% | | 8 | Total KPI3 | 242 | 27.34% | 242 | 27.34% | 0 | —% | Notes: 1. £2m and £1m represents the Bank’s share of financial guarantees counterparty’s aligned CapEx from the economic activities referred to in Section 4.29 and Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139. 2. £239m represents the CCM and CCA aligned Capex for the Bank's financial guarantee after excluding the aligned CapEx from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £242m represents CCM and CCA Taxonomy aligned economic activities for financial guarantees based on the CaPex KPI. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 436 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Stock Template 3 Taxonomy-aligned economic activities (numerator) - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI1 | 106 | 100.00% | 106 | 100.00% | 0 | —% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI2 | 106 | 100.00% | 106 | 100.00% | 0 | —% | Notes: 1. £106m represents the CCM and CCA aligned Turnover for the Bank's financial guarantee after excluding aligned Turnover from the economic activities referred to in Sections 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £106m represents the CCM and CCA aligned financial guarantee based on the Turnover KPI. The aligned Turnover is used as the denominator for calculating various percentages appearing in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 437 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Stock Template 3 Taxonomy-aligned economic activities (numerator) - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI1 | 2 | 0.83% | 2 | 0.83% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI1 | 1 | 0.41% | 1 | 0.41% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI2 | 239 | 98.76% | 239 | 98.76% | 0 | —% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI3 | 242 | 100.00% | 242 | 100.00% | 0 | —% | Notes: 1. £2m and £1m represents the Bank’s share of the financial guarantees counterparty’s aligned CapEx from the economic activities referred to in Section 4.29 and 4.30 of Annexes I and II to Delegated Regulation 2021/2139. 2. £239m represents the CCM and CCA aligned CapEx for the Bank's financial guarantee after excluding the aligned CapEx from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £242m represents the Bank’s share of financial guarantee from the counterparty’s CCM and CCA aligned CapEx. The aligned CapEx is used as the denominator for calculating various percentages appearing in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 438 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Stock Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the Year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | %4 | Amount (£m) | %4 | Amount (£m) | %4 | | 1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 14 | 1.58% | 14 | 1.58% | 0 | —% | | 5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 2 | 0.23% | 2 | 0.23% | 0 | —% | | 6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI2 | 11 | 1.24% | 11 | 1.24% | 0 | —% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI3 | 27 | 3.05% | 27 | 3.05% | 0 | —% | Notes: 1. £14m and £2m represents the Bank’s share of financial guarantees counterparty’s eligible but not aligned turnover from the economic activities referred to in Section 4.29 and Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139. 2. £11m represents the CCM and CCA eligible but not aligned Turnover for the Bank's financial guarantee after excluding CCM and CCA eligible but not aligned Turnover from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. This is the calculated as the sum of taxonomy eligible but not aligned economic activity for the EU Taxonomy environmental objectives of CCM and CCA. 3. £27m represents the Bank’s share from the counterparty’s Turnover that is eligible but not aligned for the EU Taxonomy environmental objectives of CCM and CCA. 4. The 'Total GAR assets' of £885m is used as the denominator for calculating various percentages for December 2024 appearing in the above template, but not reported anywhere in the Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 439 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Stock Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | %4 | Amount (£m) | %4 | Amount (£m) | %4 | | 1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 8 | 0.90% | 8 | 0.90% | 0 | —% | | 5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 1 | 0.11% | 1 | 0.11% | 0 | —% | | 6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI2 | 42 | 4.75% | 42 | 4.75% | 0 | —% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI3 | 51 | 5.76% | 51 | 5.76% | 0 | —% | Notes: 1. £8m and £1m represents the Bank’s share of financial guarantees counterparty’s eligible but not aligned CapEx from the economic activities referred to in Section 4.29 and Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £42m represents the CCM and CCA eligible but not aligned CapEx for the Bank's financial guarantee after excluding the CCM and CCA eligible but not aligned CapEx from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £51m represents the Bank’s share of financial guarantees counterparty’s CapEx that is CCM and CCA eligible but not aligned. 4. The 'Total GAR assets' of £885m is used as the denominator for calculating various percentages appearing in the above template, but not reported anywhere in the Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 440 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Stock Template 5 Taxonomy non-eligible economic activities - Turnover based | | | | | | --- | --- | --- | --- | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | Amount (£m) | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0.00% | | 2 | Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0.00% | | 3 | Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 3 | 0.23% | | 4 | Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | —% | | 5 | Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator Of the applicable KPI | - | —% | | 6 | Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | —% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI2 | 748 | 84.53% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI’3,4 | 751 | 84.86% | Notes: 1. £3m represents the Bank’s share from the counterparty’s Turnover that is not Taxonomy eligible from the economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139. 2. £748m represents the share of Turnover for the Bank's financial guarantee that is not Taxonomy eligible after excluding the Turnover that is not Taxonomy eligible for the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £751m represents the financial guarantee covered assets that are not Taxonomy eligible. This includes assets that only form part of the denominator. 4. The covered asset of £885m is used as the denominator for calculating various percentages for December 2024 appearing in the above template, but not reported anywhere in this template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 441 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Stock Template 5 Taxonomy non-eligible economic activities - CapEx based | | | | | | --- | --- | --- | --- | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | Amount (£m) | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 2 | Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 3 | Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 2 | 0.23% | | 4 | Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 5 | Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 6 | Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI2 | 583 | 65.87% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI’s3,4 | 585 | 66.10% | Notes: 1. £2m represents the Bank’s financial guarantee share from the counterparty’s CapEx that is not Taxonomy eligible from the economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139. 2. £583m represents the share of CapEx for the Bank's financial guarantee that is not Taxonomy eligible after excluding CapEx that is not Taxonomy eligible for the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £585m represents the financial guarantee covered assets that are not Taxonomy eligible. This includes assets that only form part of the denominator. 4. The percentages in all the columns are calculated as a proportion of total covered assets i.e., £885m. The total covered assets are not presented anywhere in this template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 442 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Flow Template 1 Nuclear and fossil gas related activities - Turnover and CapEx based | | | | | --- | --- | --- | | | | | | Row | Nuclear energy related activities | 31-Dec-24 | | 1 | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | No | | 2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | No | | 3 | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | Yes | | Fossil gas related activities | | | | 4 | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | Yes | | 5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | Yes | | 6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | Yes | | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 443 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Flow Template 2 Taxonomy-aligned economic activities (denominator) - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 9 | 12.16% | 9 | 12.16% | 0 | —% | | 8 | Total KPI2 | 9 | 12.16% | 9 | 12.16% | 0 | —% | Notes: 1. £9m represents the flow of CCM and CCA aligned turnover for Bank's financial guarantee after excluding the aligned Turnover for the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £9m represents the flow of  the Bank's financial guarantee's CCM and CCA taxonomy aligned activities based on the Turnover KPI. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 444 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Flow Template 2 Taxonomy-aligned economic activities (denominator) - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 2 | 2.70% | 2 | 2.70% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 1 | 1.35% | 1 | 1.35% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI2 | 30 | 40.54% | 30 | 40.54% | 0 | —% | | 8 | Total KPI3 | 33 | 44.59% | 33 | 44.59% | 0 | —% | Notes: 1. £2m and £1m represents the flow of the Bank’s financial guarantee share of the counterparty’s aligned CapEx for the economic activities referred to in Section 4.29 and Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139. 2. £30m represents the flow of CCM and CCA aligned Capex for the Bank's financial guarantee after excluding the aligned CapEx from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £33m represents the Bank's financial guarantee CCM and CCA Taxonomy aligned activities based on the CaPex KPI. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 445 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Flow Template 3 Taxonomy-aligned economic activities (numerator) - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI1 | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI1 | 9 | 100.00% | 9 | 100.00% | 0 | —% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI2 | 9 | 100.00% | 9 | 100.00% | 0 | —% | Notes: 1. £9m represents the Bank's financial guarantee aligned Turnover after excluding aligned Turnover from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £9m represents the flow of the Bank's financial guarantee CCM and CCA taxonomy aligned economic activities based on the Turnover KPI. The aligned Turnover is used as the denominator for calculating various percentages appearing in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 446 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Flow Template 3 Taxonomy-aligned economic activities (numerator) - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | % | Amount (£m) | % | Amount (£m) | % | | 1 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI1 | 2 | 6.06% | 2 | 6.06% | 0 | —% | | 5 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI1 | 1 | 3.03% | 1 | 3.03% | 0 | —% | | 6 | Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI2 | 30 | 90.91% | 30 | 90.91% | 0 | —% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI3 | 33 | 100.00% | 33 | 100.00% | 0 | —% | Notes: 1. £2m and £1m represents the flow of the Bank’s financial guarantee share of the counterparty’s aligned CapEx from the economic activities referred to in Section 4.29 and 4.30 of Annexes I and II to Delegated Regulation 2021/2139. 2. £30m represents the flow of the Bank's financial guarantee CCM and CCA aligned CapEx after excluding aligned CapEx from the economic activities referred to in Section 4.26 and 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 3. £33m represents the flow of the Bank’s financial guarantee share from the counterparty’s CCM and CCA aligned CapEx. The aligned CapEx is used as the denominator for calculating various percentages appearing in the above template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 447 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Flow Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities - Turnover based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the Year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | %3 | Amount (£m) | %3 | Amount (£m) | %3 | | 1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 2 | 2.70% | 2 | 2.70% | 0 | —% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI2 | 2 | 2.70% | 2 | 2.70% | 0 | —% | Notes: 1. £2m represents the flow of the CCM and CCA eligible but not aligned Turnover for the Bank's financial guarantee after excluding eligible but not aligned Turnover from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. This is calculated as the sum of taxonomy eligible but not aligned economic activity for the EU Taxonomy environmental objectives of CCM and CCA. 2. £2m represents the flow of financial guarantee assets that are eligible but not aligned for the EU Taxonomy environmental objectives of CCM and CCA. 3. The 'Total GAR assets' of £74m is used as the denominator for calculating various percentages for December 2024 appearing in the above template, but not reported anywhere in this Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 448 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Flow Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities - CapEx based | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | | | | | Amount and proportion (the information is to be presented in monetary amounts and as percentages) | | | | | | | CCM+CCA | | Climate change mitigation (CCM) | | Climate change adaptation (CCA) | | | Amount (£m) | %3 | Amount (£m) | %3 | Amount (£m) | %3 | | 1 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 2 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 3 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 4 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 5 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI1 | 0 | —% | 0 | —% | 0 | —% | | 6 | Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | 0 | —% | 0 | —% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 4 | 5.41% | 4 | 5.41% | 0 | —% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI2 | 4 | 5.41% | 4 | 5.41% | 0 | —% | Notes: 1. £4m represents the CCM and CCA eligible but not aligned CapEx for the Bank's financial guarantee after excluding the aligned CapEx from the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £4m represents the Bank’s financial guarantee share from the counterparty’s CapEx that is CCM and CCA eligible but not aligned. 3. The 'covered asset of £74m is used as the denominator for calculating various percentages appearing in the above template, but not reported anywhere in the Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 449 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Flow Template 5 Taxonomy non-eligible economic activities - Turnover based | | | | | | --- | --- | --- | --- | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | Amount (£m) | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0.00% | | 2 | Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0.00% | | 3 | Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.00% | | 4 | Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0.00% | | 5 | Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator Of the applicable KPI | - | 0.00% | | 6 | Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | - | 0.00% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 63 | 85.14% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI2,3 | 63 | 85.14% | Notes: 1. £63m represents the flow of the Bank's financial guarantee share of Turnover that is not Taxonomy eligible after excluding the Bank’s share of the counterparty’s Turnover that is not Taxonomy eligible for the economic activity referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139 2. £63m represents the financial guarantee covered assets that are not Taxonomy eligible. This includes assets that only form part of the denominator. 3. The covered asset of £74m is used as the denominator for calculating various percentages for December 2024 appearing in the above template, but not reported anywhere in the Template. | | | | | --- | --- | --- | | | | | | home.barclays/annualreport | Barclays Bank PLC Annual Report | 450 | ## Schedule to the Sustainability Statement ## EU Taxonomy GAR KPI: Off- Balance Sheet Flow Template 5 Taxonomy non-eligible economic activities - CapEx based | | | | | | --- | --- | --- | --- | | | | | | | Row | Economic activities | For the year ended 31 December 2024 | | | Amount (£m) | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 2 | Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 3 | Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 4 | Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 5 | Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 6 | Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | —% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI1 | 35 | 47.30% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI’s2,3 | 35 | 47.30% | Notes: 1. £35m represents the flow of the Bank's financial guarantee share of CapEx that is not Taxonomy eligible after excluding CapEx that is not Taxonomy eligible for the economic activities referred to in Section 4.26 to 4.31 of Annexes I and II to Delegated Regulation 2021/2139. 2. £35m represents the financial guarantee covered assets that are not Taxonomy eligible. This includes assets that only form part of the denominator. 3. The percentages in the all the columns are calculated as a proportion of the Bank's financial guarantee total covered assets i.e., £73.8m. The total covered assets are not presented anywhere in this template.