Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 380 report information sustainability report Governance review review statements Annual Report 2022 Key performance indicators (continued) Definition Why is it important and how the Group performed a Barclays views total operating expenses as a key strategic Total operating expenses Total operating expenses area for banks; those who actively manage costs and control them effectively will gain a strong competitive £16.7bn advantage. 2021: £14.7bn Group operating expenses increased to £16.7bn (2021: 2020: £13.9bn £14.7bn) mainly due to higher litigation and conduct charges: Group operating expenses excluding litigation and conduct increased 6% to £15.1bn, reflecting the impact of inflation and the appreciation of average USD against GBP. Litigation and conduct charges were £1.6bn (2021: £0.4bn) including £1.0bn impact from the Over-issuance of b Securities in the US (Over-issuance of Securities) . a This is a measure management uses to assess the Cost: income ratio Cost: income ratio productivity of the business operations. Managing the cost Total operating expenses divided by total base is a key execution priority for management and 67% income. includes a review of all categories of discretionary spending 2021: 67% and an analysis of how we can run the business to ensure 2020: 64% that costs increase at a slower rate than income. The Group cost: income ratio was 67% (2021: 67%), as increased income was offset by higher litigation and conduct charges, primarily from the Over-issuance of Securities. Group target: a cost: income ratio below 60%. Notes a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details. b Denotes the Over-issuance of Securities under Barclays Bank PLC’s (BBPLC) US shelf registration statements on Form F-3 filed with the SEC in 2018 and 2019.