Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 361 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) The UK leverage ratio increased to 5.3% (December 2021: 5.2%) primarily due to a £7.9bn decrease in the leverage exposure and a £0.6bn increase in Tier 1 capital. The UK leverage exposure decreased to £1,130.0bn (December 2021: £1,137.9bn) largely due to the following movements: • £53.1bn decrease in PFE on derivatives largely driven by increased netting eligibility due to the introduction of SA-CCR • £42.0bn decrease in cash at central banks net of the qualifying central bank claims exemption primarily due to the matching of allowable liabilities rather than deposits introduced under the UK leverage ratio framework and a decrease in Swiss Franc cash assets • £33.0bn increase in loans and advances and other assets (excluding cash and settlement balances which are subject to regulatory exemptions) primarily due to increased lending • £29.5bn increase in derivative financial instruments post additional regulatory netting and adjustments for cash collateral primarily driven by market volatility, increased activity in CIB and the application of a 1.4 multiplier introduced under SA-CCR • £18.4bn increase in SFTs primarily driven by increased reverse repurchase activity in CIB The average UK leverage ratio decreased to 4.8% (December 2021: 4.9%) due to a £51.9bn increase in average leverage exposure partially offset by a £1.1bn increase in average T1 capital. The average UK leverage exposure increased to £1,281.0bn (December 2021: £1,229.0bn) mainly driven by increased activity during the year that was partially offset by the impact of regulatory changes that came into effect from 1 January 2022 under the UK leverage ratio framework. Minimum requirement for own funds and eligible liabilities a,b,c,d MREL requirements including buffers Requirement (£m): Requirement (%): a a Restated Restated As at 31.12.2022 As at 31.12.2021 As at 31.12.2022 As at 31.12.2021 Requirement based on RWAs 97,387 77,302 28.9 % 24.6 % d Requirement based on UK leverage exposure 91,213 93,975 8.1 % 6.9 % a,c a Own funds and eligible liabilities Restated £m £m CET1 capital 46,878 47,327 e AT1 capital instruments and related share premium accounts 13,224 12,179 e T2 capital instruments and related share premium accounts 8,875 8,626 Eligible liabilities 43,851 39,889 Total Barclays PLC (the Parent company) own funds and eligible liabilities 112,828 108,021 Total RWAs 336,518 314,136 d Total UK leverage exposure 1,129,973 1,356,191 a Restated a Own funds and eligible liabilities ratios as a percentage of: As at 31.12.2022 As at 31.12.2021 Total RWAs 33.5 % 34.4 % d Total UK leverage exposure 10.0 % 8.0 % Notes a Opening balance as at 1 January 2022 has been restated to reflect the impact of the Over-issuance of Securities. See Impact of Over-issuance of Securities on page 356 for further details. b Minimum requirement excludes the confidential institution-specific PRA buffer. c CET1, T1 and T2 capital, and RWAs are calculated applying the transitional arrangements of the CRR as amended by CRR II including IFRS 9 transitional arrangements. d As at 31 December 2021, MREL requirements were on a CRR leverage basis which, from 1 January 2022, was no longer applicable for UK banks. e Includes other AT1 capital regulatory adjustments and deductions of £60m (December 2021: £80m), and other T2 credit risk adjustments and deductions of £125m (December 2021: £87m). As at 31 December 2022, Barclays PLC (the Parent company) held £112.8bn of own funds and eligible liabilities equating to 33.5% of RWAs. This was in excess of the Group's MREL requirement, excluding the PRA buffer, to hold £97.4bn of own funds and eligible liabilities equating to 28.9% of RWAs. The Group remains above its MREL regulatory requirement including the PRA buffer.