Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 311 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 2021 138,639 33 19,312 84 2,234 421 160,185 538 Transfers from Stage 1 to Stage 2 (7,672) (2) 7,672 2 — — — — Transfers from Stage 2 to Stage 1 5,336 32 (5,336) (32) — — — — Transfers to Stage 3 (282) — (469) (9) 751 9 — — Transfers from Stage 3 35 1 203 5 (238) (6) — — a Business activity in the year 32,744 7 1,243 5 4 — 33,991 12 b Refinements to models used for calculation — — — (4) — 38 — 34 Net drawdowns, repayments, net re- (8,131) (50) (1,090) 12 (216) (26) (9,437) (64) measurement and movements due to exposure and risk parameter changes c Final repayments (12,039) (2) (2,009) (4) (392) (18) (14,440) (24) d Disposals (572) — (26) — — — (598) — e Write-offs — — — — (21) (21) (21) (21) f As at 31 December 2021 148,058 19 19,500 59 2,122 397 169,680 475 Credit cards, unsecured loans and other retail lending As at 1 January 2021 33,021 680 10,320 2,769 3,172 2,251 46,513 5,700 Transfers from Stage 1 to Stage 2 (1,894) (78) 1,894 78 — — — — Transfers from Stage 2 to Stage 1 4,717 1,174 (4,717) (1,174) — — — — Transfers to Stage 3 (529) (22) (790) (370) 1,319 392 — — Transfers from Stage 3 55 26 32 19 (87) (45) — — a Business activity in the year 7,842 119 257 62 42 19 8,141 200 b Refinements to models used for calculation — (5) — (33) — 14 — (24) Net drawdowns, repayments, net re- (2,793) (1,030) (848) 389 (165) 620 (3,806) (21) measurement and movements due to exposure g and risk parameter changes c Final repayments (2,579) (40) (498) (39) (212) (92) (3,289) (171) d Disposals — — — — (287) (205) (287) (205) e Write-offs — — — — (1,450) (1,450) (1,450) (1,450) f As at 31 December 2021 37,840 824 5,650 1,701 2,332 1,504 45,822 4,029 Wholesale loans As at 1 January 2021 119,304 320 21,374 711 3,591 1,066 144,269 2,097 Transfers from Stage 1 to Stage 2 (6,115) (19) 6,115 19 — — — — Transfers from Stage 2 to Stage 1 9,137 257 (9,137) (257) — — — — Transfers to Stage 3 (804) (4) (377) (21) 1,181 25 — — Transfers from Stage 3 580 23 410 22 (990) (45) — — a Business activity in the year 34,804 95 1,774 18 283 50 36,861 163 b Refinements to models used for calculation — 8 — 11 — — — 19 Net drawdowns, repayments, net re- (417) (268) 721 (68) (211) 67 93 (269) measurement and movements due to exposure and risk parameter changes c Final repayments (22,219) (34) (4,734) (174) (545) (131) (27,498) (339) d Disposals (1,303) (15) (203) (6) (163) (47) (1,669) (68) e Write-offs — — — — (365) (365) (365) (365) f As at 31 December 2021 132,967 363 15,943 255 2,781 620 151,691 1,238 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'. b Refinements to models used for calculation include a £34m movement in Home loans, £(24)m in Credit cards, unsecured loans and other retail lending and £19m in Wholesale loans. These reflect methodology changes 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. c 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'. d The £598m disposals reported within Home loans relate to transfer of facilities to a non-consolidated special purpose vehicle for the purpose of securitisation. The £287m disposals reported within Credit cards, unsecured loans and other retail lending portfolio relate to debt sales undertaken during the year. The £1.7bn disposal reported within Wholesale loans include a £1.0bn sale of Barclays Asset Finance and a £0.7bn of debt sales. e In 2021, gross write-offs amounted to £1,836m (2020: £1,964m) and post write-off recoveries amounted to £66m (2020: £35m). Net write-offs represent gross write-offs less post write-off recoveries and amounted to £1,770m (2020: £1,929m). f 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 £155.2bn (December 2020: £180.3bn) and impairment allowance of £114m (December 2020: £165m). This comprises £6m ECL (December 2020: £11m) on £154.9bn Stage 1 assets (December 2020: £175.7bn), £1m (December 2020: £9m) on £157m Stage 2 fair value through other comprehensive income assets, cash collateral and settlement assets (December 2020: £4.4bn) and £107m (December 2020: £145m) on £110m Stage 3 other assets (December 2020: £154m). g Transfers and risk parameters change include a £0.3bn (2020: £0.6bn) net release in ECL arising from reclassification of £1.9bn (2020: £2.0bn) gross loans and advances from Stage 2 to Stage 1 in Credit cards, unsecured loans and other retail lending. The reclassification followed a review of back-testing of results which indicated that accuracy of origination probability of default characteristics require management adjustments to correct and was first established in Q220.