Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 06 report information sustainability report Governance review review statements Annual Report 2022 Chief Executive’s introduction I write to you at the end of a year which saw many Our performance unexpected events. It followed a sequence of Our business performed well in 2022 and we have such years and may not be the last one. In 2022, Strong and supportive demonstrated our continued financial resilience, we witnessed the largest conflict in Europe since notwithstanding the unusual events of the year. World War II, a resulting energy security crisis, a We created broad-based income growth even as sustained rise in interest rates across the franchise in testing times we continued to take a cautious approach to the developed world, political uncertainty in the UK macro environment. We produced an annual with associated movement in gilt yields and in income of £25.0bn, PBT of £7.0bn, Return on Our strong operating performance in 2022 has sterling, and the first re-alignment of global Tangible Equity of 10.4% and ended the year with a geopolitical lines since the end of the Cold War. A CET1 ratio of 13.9%. We have approved dividends been powered across all our businesses - they year ago, I wrote that we were entering a period of 7.25p per share and announced buybacks of of unusual uncertainty. I had far more benign £1.0bn worth of shares for the year ended 31 have individually generated strong returns in an scenarios in mind than what has actually December 2022. Our share count has decreased transpired. Not only was this an eventful year, but uncertain operating environment, and they fit well by over 9% since December 2020. it has followed the devastating human and I attribute this performance to the strength of our economic tragedy of COVID-19, the together. We played an important role in delivering franchise — our businesses are operating well repercussions of which still persist. Lastly, in individually and complement each other collectively. value for our stakeholders, and in helping them Barclays, in 2022 we faced our own challenge of Barclays UK, which serves consumers and small discovering and reacting to a costly over- overcome the challenges they faced this year. businesses across the country, produced income issuance of securities in the US. of £7.3bn, PBT of £2.6bn and a RoTE of 18.7%. I want to use this letter to share my views on our The income growth in the business was the result performance and our priorities, and also my of higher interest rates, increased transaction- thoughts on the UK as we look ahead into 2023. based revenues and higher mortgage balances. It Our performance has been strong but we must was particularly important that we kept our costs remain prepared for testing economic and flat at £4.3bn (2021: £4.4bn), as a result of a long- market conditions. term ongoing programme of digitising the production and delivery of our offerings. We see clear opportunity Our Consumer, Cards and Payments business which includes our partnership cards business in for financial services to contribute the US, the Payments business and our growing Private Bank, generated income of £4.5bn, PBT of £0.7bn and a RoTE of 10.0%. We also continue to new approaches to address make good progress in combining Barclays UK Wealth and Investment Management business complex issues including energy with our Private Banking business. independence and efficiency, housing and economic growth.