Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 309 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Loans and advances at amortised cost (audited) Stage 1 Stage 2 Stage 3 Total Gross Gross Gross Gross exposure ECL exposure ECL exposure ECL exposure ECL £m £m £m £m £m £m £m £m Home loans As at 1 January 2022 148,058 19 19,500 59 2,122 397 169,680 475 Transfers from Stage 1 to Stage 2 (8,747) (1) 8,747 1 — — — — Transfers from Stage 2 to Stage 1 7,489 24 (7,489) (24) — — — — Transfers to Stage 3 (400) — (725) (6) 1,125 6 — — Transfers from Stage 3 32 1 229 4 (261) (5) — — a Business activity in the year 30,028 10 1,142 7 6 — 31,176 17 Refinements to models used for calculation — — — — — — — — Net drawdowns, repayments, net re-measurement (8,846) (22) (1,081) 36 (125) 52 (10,052) 66 and movements due to exposure and risk parameter changes b Final repayments (13,942) (2) (2,123) (4) (426) (9) (16,491) (15) Disposals — — — — — — — — c Write-offs — — — — (27) (27) (27) (27) d As at 31 December 2022 153,672 29 18,200 73 2,414 414 174,286 516 Credit cards, unsecured loans and other retail lending As at 1 January 2022 37,840 824 5,650 1,701 2,332 1,504 45,822 4,029 Transfers from Stage 1 to Stage 2 (3,474) (80) 3,474 80 — — — — Transfers from Stage 2 to Stage 1 1,941 489 (1,941) (489) — — — — Transfers to Stage 3 (649) (20) (707) (307) 1,356 327 — — Transfers from Stage 3 87 33 25 13 (112) (46) — — a Business activity in the year 11,339 177 769 186 157 126 12,265 489 e Refinements to models used for calculation — 86 — (45) — 96 — 137 Net drawdowns, repayments, net re-measurement 1,246 (887) 1,199 736 179 787 2,624 636 and movements due to exposure and risk parameter changes b Final repayments (3,996) (36) (341) (32) (228) (60) (4,565) (128) f Disposals (159) (4) (29) (11) (275) (169) (463) (184) c Write-offs — — — — (1,287) (1,287) (1,287) (1,287) d As at 31 December 2022 44,175 582 8,099 1,832 2,122 1,278 54,396 3,692 Wholesale loans As at 1 January 2022 132,967 363 15,943 255 2,781 620 151,691 1,238 Transfers from Stage 1 to Stage 2 (9,488) (67) 9,488 67 — — — — Transfers from Stage 2 to Stage 1 5,258 55 (5,258) (55) — — — — Transfers to Stage 3 (1,480) (6) (684) (11) 2,164 17 — — Transfers from Stage 3 204 21 339 28 (543) (49) — — a Business activity in the year 40,490 83 4,104 86 239 30 44,833 199 e Refinements to models used for calculation — (64) — (66) — (374) — (504) Net drawdowns, repayments, net re-measurement 12,799 103 352 154 (1,504) 693 11,647 950 and movements due to exposure and risk parameter g changes b Final repayments (26,540) (42) (3,812) (47) (232) (57) (30,584) (146) f Disposals (1,512) — (31) — (49) (47) (1,592) (47) c Write-offs — — — — (306) (306) (306) (306) d As at 31 December 2022 152,698 446 20,441 411 2,550 527 175,689 1,384 Notes a Business activity in the year does not include additional drawdowns on the existing facility which are reported under 'Net drawdowns, repayments, net re-measurement and movements due to exposure and risk parameter changes'. Business activity reported within Credit cards, unsecured loans and other retail lending portfolio includes GAP portfolio acquisition in US cards of £2.7bn. b Final repayments include repayment from the facility closed during the year whereas partial repayments from existing facility are reported under 'Net drawdowns, repayments, net remeasurement and movements due to exposure and risk parameter changes'. c In 2022, gross write-offs amounted to £1,620m (2021: £1,836m). In Q422, £329m of balances with de minimis recovery expectations were written off in line with policy in UK Cards and Unsecured loans. Post write-off recoveries amounted to £64m (2021: £66m). Net write-offs represent gross write-offs less post write-off recoveries and amounted to £1,556m (2021: £1,770m). d Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £180.1bn (December 2021: £155.2bn) and impairment allowance of £163m (December 2021: £114m). This comprises £10m ECL (December 2021: £6m) on £178.4bn Stage 1 assets (December 2021: £154.9bn), £9m (December 2021: £1m) on £1.5bn Stage 2 fair value through other comprehensive income assets, cash collateral and settlement assets (December 2021: £157m) and £144m (December 2021: £107m) on £149m Stage 3 other assets (December 2021: £110m) e Refinements to models used for calculation reported within Credit cards, unsecured loans and other retail lending portfolio include a £0.3bn movement in US Cards and £(0.2)bn in UK Cards. Wholesale loans include a £(0.5)bn movement in Business Banking. Refinement to models reflect model enhancements made during the year. Barclays continually review 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. f The £0.5bn disposals reported within Credit cards, unsecured loans and other retail lending portfolio includes £0.2bn sale of NFL portfolio within US Cards and £0.3bn of debt sales undertaken during the year. The £1.6bn disposal reported within Wholesale loans includes sale of debt securities as part of Group Treasury Operations. g 'Net drawdowns, repayments, net re-measurement and movements due to exposure and risk parameter changes' reported within Wholesale loans also include assets of £1.3bn de-recognised due to payment received on defaulted loans from government guarantees issued under government’s Bounce Back Loans Scheme.