Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 307 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Loans and advances at amortised cost by selected sectors The table below presents a breakdown of drawn exposure and impairment allowance for loans and advances at amortised cost with stage allocation for selected industry sectors within the wholesale loans portfolio. As the nature of macroeconomic uncertainty has evolved from the COVID-19 pandemic towards high inflation, supply chain constraints and consumer demand headwinds, so has the selected population under management focus. The credit risk industry concentration disclosure in the analysis of the concentration of credit risk section represents all the industry categories and the below only covers a subset of that table. The gross loans and advances to selected sectors has declined during the year. The increased provisions is informed by the current macroeconomic outlook and underlying portfolio performance. The wholesale portfolio also benefits from a hedge protection programme that enables effective risk management against credit losses. An additional £115m (December 2021: £123m) impairment allowance has been applied to the undrawn exposures not included in the table below Loans and advances at amortised cost by selected sectors Gross exposure Impairment allowance Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total As at 31 December 2022 £m £m £m £m £m £m £m £m Autos 881 194 31 1,106 6 5 6 17 Consumer Manufacture 3,845 1,729 199 5,773 45 41 46 132 Discretionary retail and wholesale 5,143 1,711 249 7,103 41 37 51 129 Hospitality and leisure 3,902 1,316 429 5,647 40 31 70 141 Passenger travel 744 267 51 1,062 9 7 13 29 Real Estate 13,042 3,049 499 16,590 91 66 123 280 Steel and Aluminium manufacturers 486 85 18 589 7 1 8 16 Total 28,043 8,351 1,476 37,870 239 188 317 744 Total of wholesale exposures (%) 18 % 41 % 58 % 22 % 54 % 46 % 60 % 54 % Gross exposure Impairment allowance Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total As at 31 December 2021 £m £m £m £m £m £m £m £m Autos 656 295 2 953 3 3 0 6 Consumer Manufacture 3,904 1,304 211 5,419 18 22 43 83 Discretionary retail and wholesale 5,413 1,197 230 6,840 47 20 54 121 Hospitality and leisure 4,348 1,613 384 6,345 28 33 44 105 Passenger travel 856 285 143 1,284 30 8 40 78 Real Estate 13,620 3,314 518 17,452 65 53 93 211 Steel and Aluminium manufacturers 415 75 6 496 2 3 1 6 Total 29,212 8,083 1,494 38,789 193 142 275 610 Total of wholesale exposures (%) 22 % 51 % 54 % 26 % 53 % 56 % 44 % 49 % a Exposure to UK Commercial Real Estate (CRE) £9.7bn (2021: £10bn ) remained stable and was predominantly in Stage1 81% (2021: 78%). The loan portfolio was well collateralised, hence a low coverage of 1.1% (ECL: £0.1bn). Exposure at Stage 3 was 2% (2021: 3%) with a coverage ratio of 12% (2021: 18%). However, UK CRE has been included within selected sector scoping as the broader real estate sector remains under pressure due to pricing and affordability concerns, as well as construction input costs and supply chain issues adding to the uncertainty, in particular across non-investment grade exposures. The coverage ratio for selected sectors has increased from 1.6% as at 31 December 2021 to 2.0% as at 31 December 2022. Non- default coverage ratio has increased from 0.9% as at 31 December 2021 to 1.2% as at 31 December 2022. Note a From 2022, Barclays has enhanced the process of identifying UK CRE exposures.