Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 302 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Maximum exposure and effects of netting, collateral and risk transfer The following tables present a reconciliation between the Group's maximum exposure and its net exposure to credit risk, reflecting the financial effects of risk mitigation reducing the Group's exposure. The Group mitigates the credit risk to which it is exposed through netting and set-off, collateral and risk transfer. Further detail on the Group’s policies to each of these forms of credit enhancement is presented on pages 118 to 120 of the Barclays PLC Pillar 3 Report 2022 (unaudited). Collateral obtained Where collateral has been obtained in the event of default, the Group does not, ordinarily, use such assets for its own operations and they are usually sold on a timely basis. The carrying value of assets held by the Group as at 31 December 2022, as a result of the enforcement of collateral, was £31m (2021: £22m). Maximum exposure and effects of netting, collateral and risk transfer (audited) Maximum Netting and Cash Non-cash exposure set-off collateral collateral Risk transfer Net exposure As at 31 December 2022 £m £m £m £m £m £m On-balance sheet: Cash and balances at central banks 256,351 — — — — 256,351 Cash collateral and settlement balances 112,597 — — — — 112,597 Loans and advances at amortised cost: Home loans 173,770 — (328) (173,308) (98) 36 Credit cards, unsecured loans and other retail lending 50,704 — (1,220) (4,161) (243) 45,080 Wholesale loans 174,305 (4,442) (660) (61,335) (17,367) 90,501 Total loans and advances at amortised cost 398,779 (4,442) (2,208) (238,804) (17,708) 135,617 Of which credit-impaired (Stage 3): Home loans 2,000 — (1) (1,996) — 3 Credit cards, unsecured loans and other retail lending 844 — (32) (323) (3) 486 Wholesale loans 2,023 — (6) (742) (709) 566 Total credit-impaired loans and advances at amortised cost 4,867 — (39) (3,061) (712) 1,055 Reverse repurchase agreements and other similar secured lending 776 — — (776) — — Trading portfolio assets: Debt securities 55,475 — — (530) — 54,945 Traded loans 13,198 — — (250) (48) 12,900 Total trading portfolio assets 68,673 — — (780) (48) 67,845 Financial assets at fair value through the income statement: Loans and advances 39,429 — (17) (31,544) (9) 7,859 Debt securities 3,249 — — (321) — 2,928 Reverse repurchase agreements 164,681 — (3,672) (160,347) — 662 Other financial assets 118 — — — — 118 Total financial assets at fair value through the income statement 207,477 — (3,689) (192,212) (9) 11,567 Derivative financial instruments 302,380 (238,337) (34,547) (11,434) (7,275) 10,787 Financial assets at fair value through other comprehensive income 65,054 — — (222) (711) 64,121 Other assets 1,656 — — — — 1,656 Total on-balance sheet 1,413,743 (242,779) (40,444) (444,228) (25,751) 660,541 Off-balance sheet: Contingent liabilities 24,205 — (1,295) (1,596) (280) 21,034 Loan commitments 395,508 — (129) (41,917) (1,666) 351,796 Total off-balance sheet 419,713 — (1,424) (43,513) (1,946) 372,830 Total 1,833,456 (242,779) (41,868) (487,741) (27,697) 1,033,371 Off-balance sheet exposures are shown gross of provisions of £583m (2021: £542m). See Note 25 for further details. In addition to the above, the Group holds forward starting reverse repos with notional contract amounts of £48.4bn (2021: £39.3bn). These balances are fully collateralised. Wholesale loans and advances at amortised cost include £8bn (2021: £11.4bn) of BBLS, CBILS and CLBILS supported by UK government guarantees of £7.6bn (2021: £11bn), which are included within the Risk transfer column in the table. For further information on credit risk mitigation techniques, refer to the Credit risk management section.