Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 313 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Stage 2 decomposition a Loans and advances at amortised cost Gross Exposure Impairment Allowance Quantitative 30 days past due Quantitative 30 days past due Qualitative test Qualitative test Total Stage 2 Total Stage 2 test backstop test backstop As at 31 December 2022 £m £m £m £m £m £m £m £m 9,467 8,232 501 18,200 47 19 7 73 Home Loans Credit cards, unsecured 6,009 1,986 104 8,099 1,379 428 25 1,832 loans and other retail lending 17,274 3,024 143 20,441 324 82 5 411 Wholesale loans Total Stage 2 32,750 13,242 748 46,740 1,750 529 37 2,316 a Loans and advances at amortised cost Gross Exposure Impairment Allowance Quantitative 30 days past due Quantitative 30 days past due Qualitative test Qualitative test test backstop test backstop Total Stage 2 Total Stage 2 As at 31 December 2021 £m £m £m £m £m £m £m £m 11,997 6,900 603 19,500 38 10 11 59 Home Loans Credit cards, unsecured 4,045 1,503 102 5,650 1,368 318 15 1,701 loans and other retail lending 13,054 2,488 401 15,943 206 44 5 255 Wholesale loans Total Stage 2 29,096 10,891 1,106 41,093 1,612 372 31 2,015 Note a Where balances satisfy more than one of the above three criteria for determining a significant increase in credit risk, the corresponding gross exposure and ECL has been assigned in order of categories presented. Stage 2 exposures are predominantly identified using quantitative tests where the lifetime PD has deteriorated more than a pre- determined amount since origination during the year. This is augmented by inclusion of accounts meeting the designated high risk criteria (including watchlist) for the portfolio under the qualitative test. Qualitative tests predominantly include £9.8bn (2021: £8.3bn) in Barclays UK of which £8.2bn (2021: £6.8bn) relates to UK Home Finance, £0.8bn (2021: £1.0bn) relates to Business Banking and £0.5bn (2021: £0.2bn) relates to Barclaycard UK. A further £3.4bn (2021: £2.6bn) relates to Barclays International of which £2.1bn (2021: £1.4bn) relates to Corporate and Investment Bank and £1.2bn (2021: £1.1bn) relates to Consumer, Cards and Payments. A small number of other accounts (2% of impairment allowances and 2% of gross exposure) are included in Stage 2. These accounts are not otherwise identified by the quantitative or qualitative tests but are more than 30 days past due. The percentage triggered by these backstop criteria is a measure of the effectiveness of the Stage 2 criteria in identifying deterioration prior to delinquency. These balances include items in the Corporate and Investment Bank for reasons such as outstanding interest and fees rather than principal balances. For further detail on the three criteria for determining a significant + increase in credit risk required for Stage 2 classification, refer to Note 8.