Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 326 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) 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 Group implements limits on concentrations in order to mitigate the risk. The analysis of credit risk concentrations presented below are based on the location of the counterparty or customer or the industry in which they are engaged. Further detail on the Group policies with regard to managing concentration risk is presented in the Barclays PLC Pillar 3 Report 2022 (unaudited). Geographic concentrations As at 31 December 2022, the geographic concentration of the Group’s assets remained broadly consistent with 2021. Exposure concentrated in the UK was 38% (2021: 40%), in the Americas 37% (2021: 35%) and in Europe 18% (2021: 19%). Credit risk concentrations by geography (audited) United Africa and Middle Kingdom Americas Europe Asia East Total £m £m £m £m £m £m As at 31 December 2022 On-balance sheet: Cash and balances at central banks 129,000 49,830 73,677 3,553 291 256,351 Cash collateral and settlement balances 42,442 36,572 22,058 10,467 1,058 112,597 Loans and advances at amortised cost 270,554 74,851 32,484 15,504 5,386 398,779 Reverse repurchase agreements and other similar secured lending — 127 380 262 7 776 Trading portfolio assets 9,333 35,490 16,970 5,299 1,581 68,673 Financial assets at fair value through the income statement 30,024 106,741 41,355 20,538 8,819 207,477 Derivative financial instruments 99,053 101,407 77,146 22,299 2,475 302,380 Financial assets at fair value through other comprehensive income 7,692 25,666 18,842 12,562 292 65,054 Other assets 1,473 115 61 4 3 1,656 Total on-balance sheet 589,571 430,799 282,973 90,488 19,912 1,413,743 Off-balance sheet: Contingent liabilities 6,485 11,297 4,811 1,210 402 24,205 Loan commitments 103,575 240,356 44,479 4,334 2,764 395,508 Total off-balance sheet 110,060 251,653 49,290 5,544 3,166 419,713 Total 699,631 682,452 332,263 96,032 23,078 1,833,456 As at 31 December 2021 On-balance sheet: Cash and balances at central banks 114,959 38,735 76,846 7,789 245 238,574 Cash collateral and settlement balances 34,249 28,469 21,822 7,260 742 92,542 Loans and advances at amortised cost 270,261 51,599 24,352 11,039 4,200 361,451 Reverse repurchase agreements and other similar secured lending 9 123 401 2,508 186 3,227 Trading portfolio assets 12,926 29,539 15,092 4,943 889 63,389 Financial assets at fair value through the income statement 28,737 95,478 30,083 21,800 9,999 186,097 Derivative financial instruments 78,710 92,010 75,247 14,709 1,896 262,572 Financial assets at fair value through other comprehensive income 7,661 27,391 19,235 6,164 400 60,851 Other assets 949 223 39 1 — 1,212 Total on-balance sheet 548,461 363,567 263,117 76,213 18,557 1,269,915 Off-balance sheet: Contingent liabilities 5,527 10,328 3,957 1,131 403 21,346 Loan commitments 105,844 192,303 40,523 5,104 1,937 345,711 Total off-balance sheet 111,371 202,631 44,480 6,235 2,340 367,057 Total 659,832 566,198 307,597 82,448 20,897 1,636,972 Industry concentrations The concentration of the Group’s assets by industry remained broadly consistent year on year. As at 31 December 2022, total assets concentrated in banks and other financial institutions was 39% (2021: 38%), predominantly within derivative financial instruments. The proportion of the overall balance concentrated in governments and central banks was 22% (2021: 23%), cards, unsecured loans and other personal lending was 11% (2021: 10%) and in home loans remained stable at 10% (2021: 11%). Further details on material and emerging risks can be found on pages 269 to 281 .