G5GSEF7VJP5I7OUK5573 2022-01-01 2022-12-31 iso4217:GBP G5GSEF7VJP5I7OUK5573 2021-01-01 2021-12-31 G5GSEF7VJP5I7OUK5573 2020-01-01 2020-12-31 G5GSEF7VJP5I7OUK5573 2022-12-31 G5GSEF7VJP5I7OUK5573 2021-12-31 G5GSEF7VJP5I7OUK5573 2021-12-31 bbplc:IssuedCapitalAndSharePremiumMember G5GSEF7VJP5I7OUK5573 2021-12-31 ifrs-full:OtherEquityInterestMember G5GSEF7VJP5I7OUK5573 2021-12-31 ifrs-full:OtherReservesMember G5GSEF7VJP5I7OUK5573 2021-12-31 ifrs-full:RetainedEarningsMember G5GSEF7VJP5I7OUK5573 2022-01-01 2022-12-31 ifrs-full:OtherEquityInterestMember G5GSEF7VJP5I7OUK5573 2022-01-01 2022-12-31 ifrs-full:RetainedEarningsMember G5GSEF7VJP5I7OUK5573 2022-01-01 2022-12-31 ifrs-full:OtherReservesMember G5GSEF7VJP5I7OUK5573 2022-12-31 bbplc:IssuedCapitalAndSharePremiumMember G5GSEF7VJP5I7OUK5573 2022-12-31 ifrs-full:OtherEquityInterestMember G5GSEF7VJP5I7OUK5573 2022-12-31 ifrs-full:OtherReservesMember G5GSEF7VJP5I7OUK5573 2022-12-31 ifrs-full:RetainedEarningsMember G5GSEF7VJP5I7OUK5573 2020-12-31 bbplc:IssuedCapitalAndSharePremiumMember G5GSEF7VJP5I7OUK5573 2020-12-31 ifrs-full:OtherEquityInterestMember G5GSEF7VJP5I7OUK5573 2020-12-31 ifrs-full:OtherReservesMember G5GSEF7VJP5I7OUK5573 2020-12-31 ifrs-full:RetainedEarningsMember G5GSEF7VJP5I7OUK5573 2020-12-31 G5GSEF7VJP5I7OUK5573 2021-01-01 2021-12-31 ifrs-full:OtherEquityInterestMember G5GSEF7VJP5I7OUK5573 2021-01-01 2021-12-31 ifrs-full:RetainedEarningsMember G5GSEF7VJP5I7OUK5573 2021-01-01 2021-12-31 ifrs-full:OtherReservesMember G5GSEF7VJP5I7OUK5573 2019-12-31
Barclays Bank PLC
Annual Report
31 December 2022

Contents | Page |
Strategic Report |  |
Performance review | 1 |
Performance measures | 5 |
Managing risk | 8 |
Customer and Clients | 10 |
Society | 12 |
Our people and culture | 14 |
Section 172(1) Statement | 18 |
Governanc e |  |
Governance contents | 19 |
Chairman’s introduction | 20 |
Corporate governance statement | 22 |
Directors’ report | 35 |
Risk review |  |
Risk review contents | 39 |
Risk management strategy | 41 |
Material existing and emerging risks | 43 |
Climate change risk management | 48 |
Principal risk management | 56 |
Risk performance | 69 |
Supervision and regulation | 136 |
Financial statements |  |
Financial statements contents | 144 |
Consolidated financial statements | 166 |
Notes to the financial statements | 176 |

The Strategic Report was approved by the Board of Directors on 14 February 2023 and signed on their behalf by the Chairman.
Overview
Barclays Bank PLC (BBPLC or the Company) is a wholly-owned subsidiary of Barclays PLC. T he consolidation of Barclays Bank PLC and its subsidiaries is
referred to as the Barclays Bank Group. The term Barclays refers to either Barclays PLC (BPLC) or, depending on the context, the Barclays Group. The
term Barclays Group refers to BPLC together with its subsidiaries.
Barclays Bank PLC is the non ring-fenced bank within the Barclays Group. The Barclays Bank Group contains the majority of the Barclays Group’s
Barclays International division, which is comprised of the Corporate and Investment Bank (CIB) and Consumer, Cards and Payments (CC&P) businesses.
Barclays Bank PLC offers customers and clients a range of products and services spanning consumer and wholesale banking and is supported by the
Barclays G roup-wide service company, Barclays Execution Services Limited (BX), which provides technology, operations and functional services to
businesses across the Barclays Group.
Barclays Bank PLC is focused on delivering for customers and clients around the w orld. Our diversified business portfolio provides balance, resilience
and exciting opportunities. Barclays Bank PLC has strong global market positions and continues to invest in people and technology with the aim of
delivering sustainable returns.
Our structure
CIB
The CIB comprises In vestment Banking, Corporate Banking and Global Markets, aiding money managers, financial institutions, governments,
supranational organisations and corporate clients to manage their funding, financing, strategic and risk management needs.
•Investment Banking provides clients with strategic advice on mergers and acquisitions (M&A), corporate finance and financial risk management
solutions, as well as equity and debt issuance services.
•Corporate Banking provides working capital, transaction banking (including trade and payments), and lending for multinational, large and
medium corporates, and for financial institutions.
•Our Global Markets business provides a broad range of clients with market insight, execution services, tailored risk management and financing
solutions across equities, credit, securitisations, rates and foreign exchange products.
CC&P
CC&P is comprised of our International Cards and Consumer Bank, Private Bank and Barclaycard Payments business.
•As part of our International Cards and Consumer Bank, in the US we have a partnership-focused business model, offering co-branded and
private-label credit cards to consumers through our relationships with some of America's well known brands, including American Airlines and
Gap Inc. We also offer online retail deposits products (savings and c ertificates of deposit), personal loans, instalment payments and point-of-
sale financing.
•In Germany, we offer multiple consumer products, including own-branded and co-branded credit cards, online loans, electronic Point of Sale
(ePOS) financing and deposits.
•Our Private Bank offers banking, credit and investment capabilities to meet the needs of our clients across the UK, Europe, the Middle East and
Africa, and Asia.
•Barclaycard Payments enables businesses of all sizes to make and receive payments.
Market and operating environment
CIB
We saw geopolitical unrest due to the Russian invasion of Ukraine, global inflationary pressures and responsive monetary policy action. Bond markets in
particular were a ffected, with growths in yields not seen for decades. Global equity markets declined double digit percentage s in the context of these
macro drivers 1.
As a consequence of this macroeconomic instability, global capital markets retreated to pre-pandemic levels from their record highs in 2021. Market
volatility, inflation and geopolitical uncertainty created headwinds for dealmaking across all products, with significant declines in High Yield bonds
(-80%) and Initial Public Offerings (-70%)2.
Across our CIB businesses, the opportunities presented by the climate transition change and the broader sustainability agenda continued to grow
despite challenging market conditions.
Note
1 Bloomberg
2 Dealogic for the period covering 1 January 2021 to 31 December 2022
Strategic report
Performance review

home.barclays/annualreport | Barclays Bank PLC Annual Report | 1

CC&P
We continue to see recovery in consumer activity and spending post the COVID-19 pandemic. As cash usage declines and online transactions grow, the
shift towards digital services and payments continues.
W e are seeing a rise in the popularity of alternative payment methods such as Buy Now Pay Later and Open Banking, not only online but also face to
face, as consumer behaviour continues to evolve and the need for omni-channel integrated solutions increases.
The rise in inflation and the interest rate environment are driving changes in consumer behaviour, particularly around demand for personal loans and
the impact of the increasing cost of borrowing.
Market uncertainty has moderated Private Bank clients' appetite to invest in regular equity related strategies, while the comeback of significant positive
fixed income yields has created strong tailwinds for alternate strategies. In parallel, higher market volatility is supporting strong investment in
transactional activity and revenue as well as supporting demand for private market funds.
With an increasing regulatory focus on consumer protection (including the FCA’s Consumer Duty due to come into force in July 2023), we continue to
provide customers and clients with the information and tools to select the right products and services best suited for their needs. This is at the
foundation of our business, ensuring we act to deliver good outcomes and avoid harms for our customers and clients.
Focus areas
CIB
We continue to invest to deliver sustainable growth in the CIB.
•Investing in high-growth sectors and maintaining high returns in Investment Banking: We are continuing to invest in high-growth sectors such
as Technology and Healthcare, and we aim to sustain the investment we have made in our high-returning, fee-driven M&A and Equities businesses.
•Becoming an electronic-first Global Markets business, growing in targeted areas: In Global Markets, we are prioritising service excellence for our
clients through simplification of our systems architecture, investing in Prime Brokerage, further bolstering our intermediation businesses and
focusing on financing solutions to build a diversified portfolio that performs across the economic cycle.
•Capturing opportunities as we transition to a low-carbon economy: We aim to support clients who want to make their business models more
sustainable, and use our scale and capital markets expertise to mobilise capital for the transition to a low-carbon economy.
•Improving integration: Across our businesses we are focused on serving clients in an integrated way. Our efforts to broaden and deepen our CIB
offering across Europe will form an important part of this effort. I n Corporate Banking we will continue to focus on delivering enhancements to how
we engage with clients through our digital proposition, and will continue to build our capabilities in the US and Europe. Broadly, we are focused on
being a leading provider of digitally-enabled lending and transaction banking services to our clients in our chosen markets across the globe.
CC&P
We strive to deliver next-generation, digitised consumer financial services, offering best-in-class finance, private banking and payment solutions.
•Responding to changing consumer behaviour: We continue to invest in the digitalisation of our businesses, delivering new products and
capabilities to reflect growing trends. This includes focusing on scaling our existing e-commerce solutions to add further value to our digitally
engaged customers, small businesses and corporates.
•Building a more efficient and seamless business: We are accelerating our automation agenda to drive operational efficiency and create a more
seamless digital customer experience.
•Winning new partnerships: We are focused on broadening relationships with our existing partners and pursuing new partnerships, particularly in
the US. We are also building capabilities to offer new financing solutions across all our markets.
•G rowing in key markets: We are continuing to drive growth in our strategic home and international markets. In 2023 the planned integration of the
Private Bank and Barclays Bank UK PLC's We alth and Investment Management busines s will strengt hen our position in the UK, while we continue to
deepen our existing footprint outside the UK and further strengthen and expand our product capabilities.
Year in review
CIB
•Investment Banking revenue declined compared with a strong performance in 2021, driven by significant declines in the overall market opportunity.
We are ranked sixth in overall global fee share for the third year running and are top five in Debt Capital Markets 3.
•We continued to invest in our Investment Banking coverage of high-growth sectors, including expanding our Sustainable Financing business.
Founded in 2019, our sustainability-focused investment banking effort last year continued to advise and raise capital for companies seeking to
address environmental or social challenges, helping our firm deliver on its strategic priority of assisting our clients with the transition to a low-
carbon econ omy.
•Our Global Markets business acted as a market-maker and liquidity provider to clients across the globe, playing an important role in helping them to
find opportunities and manage risk during a continued period of heightened market disruption. During a year of several distinct episodes of
volatility, we materially increased revenues and captured market share relative to our peers 4.
•The importance of business diversification across Global Markets was evidenced by the gains in our FICC businesses, which helped to offset
declines in our Equities business.
Note
3 Dealogic for the period covering 1 January 2020 to 31 December 2022.
4 Market share for Barclays is based on our share of top 10 banks' reported revenues. Peer banks include BoA, BNP, CITI, CS, DB, GS, JPM, MS and UBS.
Strategic report
Performance review

home.barclays/annualreport | Barclays Bank PLC Annual Report | 2

•We continued to invest in enhancing our Global Markets digital proposition, including our electronic trading capabilities and our digital self-service
platform, as well as our financing platforms across Fixed Income and Equities.
•In Corporate Banking, revenues grew off the back of strong interest income given the rising interest rate environment, although this performance
was partly offset by rising impairments owing to the increasingly challenging business environment.
•2022 was defined by an increased focus on capital discipline, including increased selectivity around risk taking and a streamlined and consistent
approval process across all of CIB lending.
•We made significant progress in 2022 in expanding our international capabilities, particularly with the build out of our Corporate Banking
businesses in the US and Europe. We have also continued to invest in strengthening our digital capabilities, including driving the adoption of iPortal
to provide our clients with seamless access to our transaction banking product set.
•Our Research team continued to deliver differentiated insights to our clients, acting as a driver of thought leadership for the CIB. We sought to
further drive the environmental, social and governance ESG agenda in support of our climate strategy in 2022, through establishing a new
Sustainable and Thematic Research team, focused on identifying multi-sector thematic trends that could shape the future business environment,
and partnering with our Data and Investment Science teams to bring data-driven insights to our clients.
CC&P
•We successfully launched a new long-term programme with Gap Inc., the largest speciality apparel company in the US 5, to issue both co-branded
and private label credit cards and also renewed our existing partnership agreement with Carnival Cruise Lines, among other partners. Both are good
examples of how we maintained our position as a top 10 credit card issuer 6 in the US.
•We continued to invest in our digital servicing model, reaching a digital active user rate of 74.1%7. We have seen a slight improvement on the Care
Net Promoter Score 8,9 in the US Consumer Bank, reaching +44.0, versus +43.4 in 2021.
•Our Payments business maintained its position as one of the foremost payment processors in Europe 10. We secured new client relationships, and
retained others, including Ryanair and Getir UK. We’ve also added to our capabilities with the launch of Smartpay Touch, our new card acceptance
solution as well as Cashback Without Purchase, a new service enabling UK consumers to withdraw cash for free from thousands of local retailers
and small businesses.
•In Germany, we continue to be a leading provider of consumer finance 11 through our credit cards and personal loans businesses. We relaunched our
Deposits Open Market offering to further diversify our revenue structure.
•The Private Bank continued to drive its market strat egy, and deepen its footprint in established markets, while monetising recent investments in
Asia a nd the Euro pean Economic Area (EEA) through new client acquisition. A referral agreement was a lso undertaken with Credit Suisse, enabling
the Private Bank to grow its business in Africa. We continued to drive enhancements to client experience, as well as product offering, including asset
management capabilities.
Notes
5 Gap Inc., 2020.
6 Nilson Report #1204 (mid-year ranking).
7 Excluding new GAP customers.
8 Care tNPS provides an accurate measure of customer sentiment across our Fraud, Dispute, Credit and Care channels and replaces the relationship NPS reported in 2021
Annual report.
9 ®Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and
Satmetrix Systems, Inc.
10 Nilson Report #1197 (May 2022).
11 Deutsche Bundesbank, Advanzia Bank S.A, plus own calculations.
Looking ahead
CIB
Across our CIB, we remain focused on maintaining our client-centric approach and developing opportunities to grow our business and increase returns.
We continue to focus on growth in high-returning, capital efficient parts of our business and to sustain our focus on cost discipline and operational
rigour.
In Global Markets we are focused on further developing our electronic trading-led business, investing in low touch and machine learning capabilities to
drive efficiency and scale and better s erve the needs of our investor base. We will continue to invest in growth in Securitised Products, Emerging
Markets, and parts of our Rates and Foreign Exchange businesses.
Investment Banking continues to invest in high-priority sectors, particularly in Healthcare and in Technology in the US and Europe. More broadly, we
aim to build on momentum and improve revenue contribution from our equity and advisory offerings.
Aligned to our new climate-related target to facilitate $1trn of Sustainable and Transition Financing, we will continue to invest in creating a centre of
excellence for sustainable finance and broaden the range of ESG capital market product types we offer across more client segments.
In Corporate Banking, we continue to monetise investments in our European and US offering with an emphasis on growing our Transaction Banking
business. Our focus will remain on steadily improving our credit portfolio returns by reallocating risk weighted assets to higher-returning opportunities.
We continue to invest in our trade, payments and wholesale lending offerings and look to further enhance our digital proposition.
Strategic report
Performance review

home.barclays/annualreport | Barclays Bank PLC Annual Report | 3

CC&P
Within CC&P, we continue to invest in building our technology and digital capabilities, to meet consumer demand and to respond to an increasingly
difficult economic environment.
We aim to further scale our Payments business. Our goal is to deliver a world-class unified payments experience for customers, by combining payments
and banking technology.
We continue to: deepen our relationships with corporates by collaborating with the Corporate and Investment Bank; grow our offering to small
businesses; and evolve with our multinational customers.
In Germany, we are leveraging proprietary and partner distribution channels, and developing seamless onboarding and underwriting capabilities to
grow our core business.
As we focus on our partnership-centric business model in the US, we intend to scale our existing proposition to deliver greater value to partners across a
broader range of sectors. The launch of our Gap Inc. partnership in 2022 is helping to accelerate our entry into the US retail sector.
The Private Bank remains focused on targeted markets, deepening our client footprint in the UK, Europe, the Middle East and Africa, and Asia. The
appetite for sustainable investing carries on growing at pace and we continue to manage sustainable portfolios for a broad range of clients. We intend
to enhance product capabilities and drive better client experiences by improving end-to-end platform automation and delivering our digital agenda. We
continue to make good progress with our plan to integrate Barclays Bank UK PLC's Wealth and Investment Management business with our Private Bank
to provide a more seamless client experience.
Measuring where we are
CIB
a.Income 2022: £13.7bn, 2021: £12.5bn
b.Operating Expenses 2022: £9.2bn, 2021: £7.4bn
c.Profit before Tax 2022: £4.4bn, 2021: £5.5bn
d.Investment Banking global fee ranking 2022: 6th, 2021:6th 12
CC&P
a.Income 2022: £4.5bn, 2021: £3.3bn
b.Operating Expenses 2022: £3.0bn, 2021: £2.4bn
c.Profit before Tax 2022: £0.7bn, 2021: £0.8bn,
d.US Consumer Bank Care Net Promoter Score (tNPS) 2022: +44.0, 2021: +43.4
e.CC&P US Customer Digital Engagement 2022: 74.1%13, 2021: 71.8%
Note
12 Dealogic for the period covering 1 January 2021 to 31 December 2022.
13 Excluding new GAP customers.
Strategic report
Performance review

home.barclays/annualreport | Barclays Bank PLC Annual Report | 4

Performance measurement
Financial performance measures
The performance of Barclays Bank PLC contributes to the Barclays Group, upon which the delivery of strategy is measured.
Income Statement

|  | Restated a |
Barclays Bank Group results | 2022 | 2021 | 2020
For the year ended 31 December | £m | £m | £m
Total income | 18,194 | 15,408 | 15,778
Operating expenses | (10,971) | (9,885) | (9,383)
Litigation and conduct | (1,427) | (374) | (76)
Total operating expenses | (12,398) | (10,259) | (9,459)
Other net income/(expenses) | 4 | (8) | 133
Profit before impairment | 5,800 | 5,141 | 6,452
Credit impairment (charges)/releases | (933) | 277 | (3,377)
Profit before tax | 4,867 | 5,418 | 3,075
Taxation | (485) | (830) | (624)
Profit after tax | 4,382 | 4,588 | 2,451
Other equity instrument holders | (732) | (631) | (677)
Attributable profit | 3,650 | 3,957 | 1,774

a.2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. Over-issuance of Securities denotes the Over-issuance of Securities
under Barclays Bank PLC’s US shelf registration statements on Form F-3 filed with the US Securities and Exchange Commission (SEC) in 2018 and 2019. See Restatement
of financial statements (Note 1a) on page 180 for further details.
Income Statement commentary
The Barclays Bank Group’s profit before tax decreased 10% to £4,867m as a strong income performance, across CIB and CC&P, and a non-repeat of a
prior year structural cost action charge were more than offset by litigation and conduct charges and the non-recurrence of a prior year impairment
release.
Litigation and conduct charges included £966m in relation to the O ver-issuance of Securities. The FY22 results included £292m of income related to
hedging arrangements to manage the risks of the rescission offer in relation to the Over-issuance of Securities.
2022 com pared to 2021
•Profit before tax decreased to £4,867 m (2021: £5,418m) driven by a decrease in CIB to £4,406 m (2021: £5,528m) and in CC&P to £704m (2021:
£729m), partially offset by a reduced loss in Head Office of £243 m (2021: £839 m loss)
•The Barclays Bank Group has a diverse income profile across businesses and geographies including a significant presence in the US. The 10%
appreciation of average USD against GBP positively impacted income and profits and adversely impacted credit impairment charges, total operating
expenses and RWAs
•Total income increased 18% to £18,194 m
–CIB income increased 10% to £13,722 m. Global Markets income increased 39%, reflecting higher levels of activity as we supported our
clients through a period of market volatility, and included £292m of income related to hedging arrangements to manage the risks of the
rescission offer in relation to the Over-issuance of Securities. Investment Banking fees decreased 39% due to the redu ced fee pool,
particularly in Equity and Debt capital markets 1. Corporate income increased 4% reflecting improved margins and growth in deposits and
higher fee income, partially offset by fair value losses on leverage finance lending of c.£335m net of mark to market gains on related
hedges and higher costs of hedging and credit protection
–CC&P income increased 36% to £4,547 m reflecting higher cards balances, including the Gap portfolio acquisition, turnover growth in
Payments from the easing of lockdown restrictions, and client balance growth and improved margins in the Private Bank
–Head Office income was a net expense of £75 m (2021: £410m net expense) which primarily reflected hedge accounting losses and
funding costs in relation to legacy capital instruments
•Total operating expenses increased 21% to £12,398 m
–CIB total operating expenses increased 24% to £9,200 m. Operating expenses excluding litigation and conduct charges increased 12% to
£8,011m driven by continued investment in talent and technology, and the impact of inflation. Litigation and conduct charges were
£1,189m (2021: £237m) including £966m in relation to the Over-issuance of Securities and £165m provision relating to the Devices
Settlements 2
–CC&P total operating expenses increased 25% to £3,030 m. Operating expenses excluding litigation and conduct charges increased 21%
to £2,800m, including higher investment spend reflecting an increase in marketing and partnership costs. Litigation and conduct charges
were £230m (2021: £108m) mainly driven by customer remediation costs relating to legacy loan portfolios
–Head Office total operating expenses reduced to £168 m (2021: £429m) reflecting the non-repeat of the £266m charge related to a
structural cost action taken as part of the real estate review in June 2021
Note
1 Data source: Dealogic for the period covering 1 January 2021 to 31 December 2022
Strategic report
Performance measures

home.barclays/annualreport | Barclays Bank PLC Annual Report | 5

2 Refers to the settlements with the SEC and CFTC in connection with their investigations of the use of unauthorised devices for business communications
•Credit impairment charges were £933m (2021: £277m net release) driven by a deteriorating macroeconomic forecast
–CIB credit impairment charges of £119 m (2021: £461m net release) were driven by a net increase in modelled impairment and single
name charges, partially offset by the benefit of credit protection
–CC&P credit impairment charges increased to £814 m (2021: £185m), driven by higher balances in US cards, including the day one impact
of acquiring the Gap portfolio, macroeconomic deterioration and a gradual increase in delinquencies, partially offset by the utilisation of
economic uncertainty post-model adjustments (PMAs) and the release of COVID-19 related adjustments informed by refreshed
macroeconomic scenarios. As at 31 December 2022, US cards 30 and 90 day arrears remain below pre-pandemic levels 3 at 2.2% (Q421:
1.6%) and 1.2% (Q421: 0.8%) respectively. The US cards business is s upported by a total coverage ratio of 8.1% (December 2021:
10.6%)
•The effective tax rate (ETR) was 10.0% (2021: 15.3%). The tax charge included a £183m re-measurement of the Barclays Bank Grou p’s UK deferred
tax assets (DTAs) due to the enactment of legislation to reduce the UK banking surcharge rate. Excluding this DTAs downward re-measurement,
the ETR was 6.2%, reflecting the impact of tax benefits arising in the current year, primarily arising from tax relief related to government bonds
linked to the high prevailing rate of inflation in 2022, as well as beneficial adjustments in respect of prior years
Note
3 As at 31 December 2019, US cards 30 and 90 day arrears were 2.7% and 1.4% respectively
Balance Sheet Information
The following assets and liabilities represent key balance sheet items for the Barclays Bank Group

| 2022 | 2021
As at 31 December | £m | £m
Assets |  |
Cash and balances at central banks | 202,142 | 169,085
Loans and advances at amortised cost | 182,507 | 145,259
Trading portfolio assets | 133,771 | 146,871
Financial assets at fair value through the income statement | 211,128 | 188,226
Derivative financial instruments | 302,976 | 262,291
Liabilities |  |
Deposits at amortised cost | 291,579 | 262,828
Financial liabilities designated at fair value | 272,055 | 251,131
Derivative financial instruments | 289,206 | 256,523

Balance Sheet commentary
•Cash and balances at central banks increased £33.1bn to £202.1 bn due to strong client deposit growth
•Loans and advances at amortised cost increased £37.2bn to £182.5 bn due to increased lending to customers across CIB and CC&P, inclusive of the
Gap portfolio acquisition, appreciation of USD against GBP and increased investment in debt securities
•Trading portfolio assets decreased £13.1bn to £133.8 bn due to a reduction in equity securities as clients repositioned, partially offset by increased
trading activity in debt securities
•Financial assets at fair value through the income statement increased £22.9bn to £211.1 bn driven by increased reverse repurchase activity
•Derivative financial instrument assets and liabilities increased £40.7bn to £303.0 bn and £32.7bn to £289.2 bn respectively driven by market volatility
and increased activity
•Deposits at amortised cost increased £28.8bn to £291.6bn primarily due to growth in Corporate deposits and an increase in short-term money
market deposits
•Financial liabilities designated at fair value increased £20.9bn to £272.1 bn driven by increased prime brokerage deposits and repurchase activity
The financial information above is extracted from the financial statements. This information should be read together with the information included in
the accompanying consolidated financial statements.
Other Metrics and Capita l a
Barclays Bank PLC is regulated by the Prudential Regulation Authority (PRA) on a solo-consolidated basis. Barclays Bank PLC solo-consolidated
comprises Barclays Bank PLC plus certain additional subsidiaries, subject to PRA approval. For the purpose of liquidity management, Barclays Bank PLC
and its subsidiary Barclays Capital Securities Limited, a UK broker dealer entity, are monitored on a combined basis by the PRA under a Domestic
Liquidity Sub-Group (Barclays Bank PLC DoLSub) arrangement.

|  | Restated b |
| 2022 | 2021 | 2020
Common equity tier 1 (CET1) ratio | 12.7% | 12.9% | 14.2%
Total risk weighted assets (RWAs) | £203.8bn | £185.5bn | £178.2bn
UK Leverage ratio | 4.6% | 3.7% | 3.9%
Liquidity coverage ratio | 148% | 140.0% | 145.0%
Net stable funding ratio c | 108% |  |

Note
a.Capital, RWAs and leverage are calculated applying the IFRS 9 transitional arrangements of the Capital Requirements Regulation (CRR) as amended by CRR II.
Strategic report
Performance measures

home.barclays/annualreport | Barclays Bank PLC Annual Report | 6

b.2021 capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
c.Average represents the last four spot quarter-end positions. No prior comparative available
Capital Commentary
As at 31 December 2022, Barclays Bank PLC’s solo-consolidated CET1 ratio was 12.7%, which exceeded the CET1 minimum regulatory capital
requirement of 9.9%.
Non-financial performance measures
Barclays Bank PLC is part of the Barclays Group which uses a variety of quantitative and qualitative measures to track and assess holistic strategic
delivery.
Barclays Bank PLC has addressed the Non-Financial Reporting requirements contained in sections 414CA and 414CB of the Companies Act 2006
through the disclosure contained in the Barclays PLC Annual Report 2022 on pages 60 to 62.
Strategic report
Performance measures

home.barclays/annualreport | Barclays Bank PLC Annual Report | 7

The Barclays Bank Group is exposed to internal and external risks as part of its ongoing activities. These risks are managed as part of our business
model.
Enterprise Risk Management Framework
At Barclays Bank Group, risks are identified and overseen in accordance with the Enterprise Risk Management Framework (ERMF), which supports the
business in its aim to embed effective risk management and a strong risk management culture.
The ERMF governs the way in which the Barclays Group identifies and manages its risks.
The management of risk is then embedded into each level of the business, with all colleagues being responsible for identifying and controlling risk.
Given the increasing risks associated with climate change, and to support the Barclays Bank Group’s ambition to be a net zero bank by 2050. Climate
risk became a Principal Risk at the start of 2022.
Risk appetite
Risk appetite defines the level of risk we are prepared to accept across the different risk types, taking into consideration varying levels of financial and
operational stress. Risk appetite is key to our decision-making processes, including ongoing business planning and setting of strategy, new product
approvals and business change initiatives.
The Barclays Bank Group sets its risk appetite in terms of performance metrics as well as a set of mandate and scale limits to monitor risks (i.e. to
ensure business activities are aligned with expectations and are of an appropriate scale relative to the risk and reward of the underlying activities).
During 2022, the Barclays Bank Group’s performance remained within its risk appetite limits.
Three l ines of defence
The first line of defence is comprised of the revenue-generating and client-facing areas, along with all associated support functions, including Finance,
Treasury, Human Resources and Operations and Technology. The first line identifies the risks, sets the controls and escalates risk events to the second
line of defence. Employees in the first line have primary responsibility for their risks and their activities are subject to oversight from the relevant parts of
the second and third lines.
The second line of defence is made up of Risk and Compliance and oversees the first line by setting limits, rules and constraints on their operations,
consistent with the risk appetite.
The third line of defence is comprised of Internal Audit, providing independent assurance to the Barclays Bank PLC Board and the Barclays Bank PLC
Executive Committee on the effectiveness of governance, risk management and control over current, systemic and evolving risks.
The Legal function provides support to all areas of the Barclays Bank Group and is not formally part of any of the three lines of defence. The Legal
function is responsible for the identification of all legal and regulatory risks. Except in relation to the legal advice it provides or procures, it is subject to
second line oversight with respect to its own operational and conduct risks, as well as with respect to the legal and regulatory risks to which the
Barclays Bank Group is exposed.
Monitoring the risk profile
Together with a strong governance process, using business and Barclays Group level Risk Committees, as well as Board level forums, the Barclays Bank
PLC Board receives regular information in respect of the risk profile of the Barclays Bank Group. Information received includes measures of risk profile
against risk appetite as well as the identification of new and emerging risks, which are derived by mapping risk drivers, identified through horizon
scanning, to risk themes, and similar analysis.
During 2022, the Barclays Group ran a stress test to assess its capital adequacy and resilience under a severe but plausible macroeconomic scenario.
The internal stress test was informed by the Bank of England 2022 regulatory stress test featuring high and persistent inflation, rising global interest
rates, a severe UK recession brought by falling household real incomes, job losses leading to a high unemployment rate, energy and cost of goods
shocks, increasing corporate defaults, and severe house and real estate price shocks.
We believe that our structure and governance supports us in managing risk in the changing economic, political and market environments.
For further detailed analysis of our approach to risk management and risk performance see the full Risk review on pages 39 to 143.
Strategic report
Managing risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 8

The Enterprise Risk Management Framework defines nine Principal Risks |
| Principal Risks | Risks are classified into Principal Risks, as below | How risks are managed
Principal Risk | Credit Risk | The risk of loss to the Barclays Bank Group from the failure of clients, customers or counterparties (including sovereigns) to fully honour their obligations to the Barclays Bank Group, including the whole and timely payment of principal, interest, collateral and other receivables. | Credit risk teams identify, evaluate, sanction, limit and monitor various forms of credit exposure, individually and in aggregate.
Market Risk | The risk of loss arising from potential adverse changes in the value of the Barclays Bank Group’s assets and liabilities from fluctuation in market variables including, but not limited to, interest rates, foreign exchange, equity prices, commodity prices, credit spreads, implied volatilities and asset correlations. | A range of complementary approaches to identify and evaluate market risk are used to capture exposure to market risk. These are measured, limited and monitored by market risk specialists.
Treasury and Capital Risk | Liquidity Risk: The risk that the Barclays Bank Group is unable to meet its contractual or contingent obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. | Treasury and capital risk is identified and managed by specialists in Capital Planning, Liquidity, Asset and Liability Management and Market Risk. A range of approaches are used appropriate to the risk, such as limits; plan monitoring and stress testing.
Capital Risk: The risk that the Barclays Bank Group has an insufficient level or composition of capital to support its normal business activities and to meet its regulatory capital requirements under normal operating environments and stressed conditions (both actual and as defined for internal planning or regulatory testing purposes). This also includes the risk from the Barclays Bank Group’s pension plans.
Interest Rate Risk in the banking book: The risk that the Barclays Bank Group is exposed to capital or income volatility because of a mismatch between the interest rate exposures of its (non-traded) assets and liabilities.
Climate Risk | The impact on Financial and Operational Risks arising from climate change through, physical risks, risks associated with transitioning to a lower carbon economy and connected risks arising as a result of second order impacts on portfolios of these two drivers. | The Barclays Bank Group assesses and manages its Climate risk across its businesses and functions in line with the Barclays Group's net zero ambition by monitoring exposure to elevated risk sectors, conducting scenario analysis and risk assessments for key portfolios. Climate risk controls are embedded across the financial and operational principal risk types through the Barclays Group's Frameworks, Policies and Standards (which apply to the Barclays Bank Group).
Operational Risk | The risk of loss to the Barclays Bank Group from inadequate or failed processes or systems, human factors or due to external events (for example fraud) where the root cause is not due to credit or market risks. | The Barclays Bank Group assesses and manages its operational risk and control environment across its businesses and functions with a view to maintaining an acceptable level of residual risk.
Model Risk | The potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. | Models are evaluated for approval prior to implementation, and on an ongoing basis.
Conduct Risk | The risk of poor outcomes for, or harm to, customers, clients and markets, arising from the delivery of the Barclays Bank Group's products and services. | The Conduct Risk Management Framework (CRMF) sets out the control objectives and minimum control requirements which must be implemented to manage Conduct Risk. A selection of tools is mandated in the CRMF and Barclays Control Framework to support with the assessment of Conduct Risks, whilst the governance of Conduct Risk is fulfilled through management committees and forums with clear escalation and reporting lines to Board-level committees.
Reputation Risk | The risk that an action, transaction, investment, event, decision, or business relationship will reduce trust in the Barclays Bank Group’s integrity and/or competence. | Reputation risk is managed by embedding our purpose and values, and maintaining a controlled culture within the Barclays Bank Group, with the objective of acting with integrity, enabling strong and trusted relationships to be built with customers and clients, colleagues and broader society. Each business assesses reputation risk using standardised tools and the governance is fulfilled through management committees and forums, clear escalation and reporting lines to the Barclays Bank PLC Board.
Legal Risk | The risk of loss or imposition of penalties, damages or fines from the failure of the Barclays Bank Group to meet its legal obligations, including regulatory or contractual requirements. | Legal risk is managed by the identification of legal risks by the Legal Function, the engagement of the Legal Function in situations that have the potential for legal risk, and the escalation of legal risk as necessary.

Note
The ERMF defines nine Principal risks. For further information on how these Financial and Operational Principal Risks apply specifically to the Barclays Bank Group, please see
pages 58 to 65.
Strategic report
Managing risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 9

At Barclays Bank PLC, we seek to understand our customers' and clients' expectations and aspirations, and develop products and services which
support them, especially during difficult economic conditions. We believe that transparency of information in our products and services is key to
empowering consumers to make sound financial decisions.
The following sub-sections include a summary of the Barclays Bank PLC specific items from the Barclays PLC Annual Report 2022. For full details, refer
to the Customer and clients section of the Barclays PLC Annual Report 2022.
Customers and clients are at the heart of our business. For us to deliver value for them, we need to continue building confidence in our organisation, our
products and services, understand and anticipate our customers' and clients' needs, and use our expertise to become a trusted partner. In order to
understand those needs and measure our progress towards delivering on them, we use a range of non-financial measures.
Net Promoter Score
Net Promoter® Score (NPS) is used widely across industries to measure the strength of customer relationships. We track NPS to identify both our
strengths and where there is room for improvement. This, combined with our transactional NPS data, becomes a powerful tool to inform how we
should develop our services and products in the future, and benchmark our performance against the rest of the market.
US Consumer NPS
We have seen a slight improvement on the Care Net Promoter Score[c] in the US Consumer Bank, reaching +44.0, versus +43.4 in 2021.
US Consumer Bank Digital tNPS
The Digital tNPS is a newly tracked metric for the US Consumer Bank which is measured at the digital journey level. This is a recognised and respected
industry measure of customer experience. Digital tNPS is trending positive, attributed to increased web and app ease of use.
Consumer, Cards and Payments US customer digital engagement
Digital engagement is used as a KPI to assess the performance of our digital value proposition and the quality of the user experience. We measure usage
over a 90-day period, as a percentage of the total of active customers, to illustrate the interactivity with our platforms and uncover potential use cases
for our online and app channels. This KPI reflects the general health of the digital experience, and allows us to look at how this is performing and what
issues, if any, we should address.
We launched significant digital engagement features and technology advancements. Highlights included Gap ecommerce integration, asynchronous
chat for servicing, card delivery tracking, payments journey enhancements, as well as ongoing human-centered UX improvements.
The addition of the Gap partnership initially decreased the overall digital engagement rate due to retail segment behaviour differences. Excluding Gap,
the rate increased YoY to 74.1%.
Complaints data
Barclays Bank PLC's reportable 1 complaint volumes in 2022 increased 2% in comparison to 2021. This reflects the return to normality after the
coronavirus pandemic which saw business closures/restrictions on non-essential business in 2021. Volumes of transactions and customer interactions
increased in 2022 and whilst complaints saw a small increase, the complaints received per 1,000 accounts held reduced during 2022 from 6.8 to 6.1.
Barclays Bank PLC remains focused on improving the overall customer experience by identifying and supporting the removal of the root causes of
customer complaints where possible.
Corporate and Investment Bank revenue ranks and market shares
Revenue ranks and market shares are a good indicator to monitor success. We use them to measure how successful our Corporate and Investment
Bank has been, and where there is the ability to progress.
By using Dealogic Investment Banking global fee ranking and share, and a comparison to global peers share of reported revenues for Global Markets, we
can assess our relative performance versus a defined peer group, clearly and transparently.
In 2022, we maintained our performance of prior years, illustrating the continued success of the CIB for the clients we work for. In Global Markets, we
maintained our ranking of 6th and grew share by 100bps, a particularly strong result given challenging market conditions and driven by the excellent
performance of our FICC businesses.
In Investment Banking we solidly maintained our overall ranking of 6th in a year of suppressed dealmaking.
We have adopted a new performance measure for Global Markets based on its share of reported revenues of the Markets businesses of the Top 10
Banks. The peer group contains BoA, BNP, CITI, CS, DB, GS, JPM, MS and UBS. Where any of the peer group have not published results when we report,
we use the consensus estimate for their quarterly performance. While acknowledging accounting treatment differences in peer reporting (e.g.
treatment of cost of income) and inclusions of business lines we do not operate in (e.g. Commodities), we have adopted this measure as it provides the
most consistent and timely view of the performance of our Global Markets business relative to our global competitor set. The measure is a simple and
effective way of understanding relative performance on a global scale.
Note
1 Reportable reflects the FCA’s definition of a complaint which must be reported to the FCA on a half-yearly basis and published externally on the Barclays website.
Strategic report
Customer and clients

home.barclays/annualreport | Barclays Bank PLC Annual Report | 10

Financial inclusion in our US consumer business
The Community Reinvestment Act (CRA) is a US federal law designed to encourage commercial banks and savings associations to help meet the needs
of borrowers in all segments of their communities, including low and moderate-income neighbourhoods. Barclays meets the CRA requirement by
supporting and investing in local Community Development Financial Institutions (CDFIs), small-medium businesses and non-profits.
The success of CDFIs, small-medium businesses and non-profits are key to a thriving community. Barclays has predefined goals with specific
performance targets that we must meet each year in order to be considered in compliance with CRA guidelines. Barclays has met its CRA goals for
2022, evidencing that we are continuing to invest in the communities where we live, work and serve.
Barclays Bank Delaware (BBDE) is committed to fair and equitable treatment of all prospective and existing customers without regard to race, sex,
colour, national origin, religion, age, marital status, disability, sexual orientation, military status, gender identity, familial status, Limited English
Proficiency, receipt of public assistance income, and good faith exercise of rights under the Consumer Credit Protection Act.
We believe Barclays’ core values of Respect, Integrity, Service, Excellence, and Stewardship reflect our commitment to fair lending and fair treatment
principles and practices. We strive to develop long-term relationships by providing products and services that meet prospective and existing customer
needs, avoid causing prospective and existing customer detriment or harm, and place our prospective and existing customers' interests at the heart of
our strategy, planning, and decision-making processe s.
Strategic report
Customer and clients

home.barclays/annualreport | Barclays Bank PLC Annual Report | 11

The following sub-sections include a summary of the Barclays Bank PLC specific items from the Barclays PLC Annual Report 2022. For full details, refer
to the Society section of the Barclays PLC Annual Report 2022.
We believe that we can, and should, make a positive difference for society – globally and locally. We do that through the choices we make about how
we run our business in light of all relevant risk and other factors and through the commitments we make to support our communities and to champion
sustainability for the long-term. We recognise that we are at our best when our clients, customers, communities, and colleagues all progress.
Our focus on society falls broadly into three categories: Climate, Communities and Suppliers.
Climate
Addressing climate change is an urgent and complex challenge but also an opportunity. It requires a fundamental transformation of the global
economy. The financial sector has an important role to play in supporting the transition to a low-carbon economy and at Barclays, we are determined to
play our part consistent with our Purpose and relevant business and risk considerations.
In 2020, Barclays announced an ambition to be a net zero bank by 2050, across all of our direct and indirect emissions, and we committed to align all of
our financing activities with the goals and timelines of the Paris Agreement. We made it clear at the time that we would approach the climate challenge
thoughtfully and transparently, engaging with our shareholders and other stakeholders, and reporting our progress.
In doing so, we also recognise the importance of supporting a just transition considering the social risks and opportunities of the transitions and seeking
to ensure effective dialogue with affected stakeholders.
Communities
In the communities in which we operate, Barclays Bank Group is supporting people to develop the skills and confidence they need to succeed, now and
in the future, and working to help businesses create jobs. We collaborate with experienced partners, employability experts and businesses to develop
meaningful and innovative programmes that deliver a significant positive impact over the long-term.
Suppliers
As a global institution, we have a responsibility for a large supply chain. We engage directly with our suppliers seeking to promote diversity, equity and
inclusion and we work to identify and address modern slavery risks across our operations, supply chain, and customer and client relationships.
We engage with stakeholders internally and externally to assess our areas of focus against their priorities. That happens through ongoing conversations,
as well as surveys and information requests from investors and ratings agencies. We also monitor closely the relevant ESG frameworks and reporting
guidelines.
Bar clays Climate Strategy
Our climate strategy is driven by consideration of relevant risks and opportunities and our Purpose to deploy finance responsibly to support people and
businesses, acting with empathy and integrity, championing innovation and sustainability, for the common good and the long-term.
In March 2020, Barclays announced its ambition to be a net zero bank by 2050, becoming one of the first banks to do so.
We are committed to achieving net zero operations and have made progress, having sourced 100% renewable electricity for our global real estate
portfolio operations a and created a pathway to address our supply chain emissions. We achieved 100% renewable energy by matching 100% of our
electricity consumption with energy attribute certificates and green tariffs which is for us a transitional solution as we seek to increase the proportion of
on-site renewable electricity sources and Power Purchase Agreements.
We are also committed to reducing our financed emissions, those deriving from the activities of the clients that we finance and those generated in their
respective value chains, by providing financial advice and support as they transition to a low-carbon economy. We have now set 2030 reduction targets
across five of the high emitting sectors in our portfolio: Energy, Power, Cement, Steel and Automotive manufacturing and have assessed the baseline
and convergence point for our Residential real estate portfolio.
We have developed a methodology for measuring our financed emissions and tracking them at a portfolio level against the goals and timelines of the
Paris Agreement – this methodology is called BlueTrack™. For further information refer to the Barclays PLC Annual Report 2022. All of our 2030 target-
setting includes the integration of 1.5°C aligned scenarios, such as the IEA Net Zero 2050 scenario in our financed emission targets, and including the
upper end of ranges for certain sectors.
1) Achieving net zero operations
Barclays is working to reduce its Scope 1, Scope 2 and Scope 3 b operational emissions consistent with a 1.5°C aligned pathway and counterbalance any
residual emissions.
2) Reducing our financed emissions
Barclays is committed to aligning its financing with the goals and timelines of the Paris Agreement, consistent with limiting the increase in global
temperatures to 1.5°C.
3) Financing the transition
Barclays is helping to provide the green and sustainable finance required to transform the economies, customers and clients we serve.
Our strategy is underpinned by the way we assess and manage our exposure to climate-related risk.
Note
a.Global real estate portfolio includes offices, branches, campuses and data centres.
b.We define our Scope 3 operational emissions to include supply chain, waste, business travel and leased assets
Strategic report
Society

home.barclays/annualreport | Barclays Bank PLC Annual Report | 12

As a large global financial intermediary, Barclays also has an important role in helping channel investment into new green technologies and low-carbon
infrastructure projects.
The transition to a low-carbon economy is today’s defining opportunity for innovation and growth. With the scale of investment needed estimated to be
$4trn per year in renewables and a further $4-6trn 1 per year to get to a low carbon economy over the next 30 years, Barclays is helping to provide the
green and sustainable finance required to transform the economies we serve. We surpassed our 2018 target to deliver £150bn of social and
environmental financing by 2025 and we are still on track to meet our goal to deliver £100bn of green finance well ahead of 2030.
We keep our policies, targets and progress under review in light of the rapidly changing external environment and the need to support governments and
clients in delivering an orderly energy transition and providing energy security. The trajectory for our clients’ transition to a low-carbon economy is
influenced by a number of external factors, including market developments, technological advancement, the public policy environment, geopolitical
developments and regional variations, behavioural change in society and the scale of change needed to adapt their business models. Client transition
pathways will vary, even within the same sectors and geographies.
Many highly carbon-intensive sectors require finance to transition. Restricting the flow of capital to these sectors could be harmful to the pace of the
transition, limiting the real terms impact on global warming. However, we anticipate that companies which are unwilling to reduce or eliminate their
emissions consistent with internationally accepted pathways may find it increasingly difficult to access financing, including through Barclays.
Our strategy is underpinned by the way we assess and manage our exposure to climate-related risk. Climate risk became a Principal Risk at Barclays in
2022.
We monitor financing transactions through our due diligence and have declined financing to clients that have not been able to meet our policies after
taking into account all relevant considerations.
After a strategic review of the Barclays Group’s capabilities, market demand and growth opportunities, we announced in December 2022, new targets
to:
•Facilitate $1 trillion of Sustainable and Transition Financing between 2023 and the end of 2030.
•Increase investment into global climate tech start-ups to £500m through our Sustainable Impact Capital portfolio by the end of 2027.
Over the coming years, our strategy will continue to evolve and adapt to reflect external factors affecting the shape and timing of the transition to a low-
carbon economy, similar to those impacting our clients' transitions. Progress is likely to vary year to year and we need to be able to adapt our approach
to respond to external circumstances and to manage the effectiveness and impact of our support for the transition, whilst remaining focused on our
ambition of becoming a net zero bank by 2050.
Note
1.$4-6trn as referenced at COP27 at unfccc.int/documents/624444 as well as the United Nations Environment Programme - Emissions Gap Report 2022 at unep.org/
resources/emissions-gap-report-2022.
Strategic report
Society

home.barclays/annualreport | Barclays Bank PLC Annual Report | 13

The following sub-sections include a summary of the BBPLC specific items from the Barclays PLC Annual Report 2022. For full details, refer to the Our
people and culture section of the Barclays PLC Annual Report 2022. Figures mentioned are for the Barclays Group, other than where specifically
mentioned.
Empowering our Colleagues
Our people and our culture are our greatest assets. We are committed to making Barclays a great place to work, enabling colleagues to deliver strong
results for our customers, clients, communities and each other.
During 2022, we continued to embed the Barclays Mindset, helped colleagues to adapt to hybrid working, supported colleague wellbeing and made
further progress against our diversity, equity and inclusion (DEI) ambitions. Through our colleague listening survey, Your View, we saw improved scores
across all our indices.
Our data-led approach, underpinned by our Wellbeing Index (now in its second year), brings together actionable insights for people leaders. It also
enables curation of content for colleagues that is grounded in clinical evidence to help them better manage their own health. Ongoing leader-led
campaigns are at the forefront of the way we engage with colleagues, with regular expert speaker events chaired by senior executives. Our ‘Talk Money’
week in the UK challenged the stigma around talking about money, building confidence with financial management and signposting to free and
confidential support. This is complemented by practical resources and guidance offered through our global Be Well portal (with 45% of colleagues
registered), and our Employee Assistance Programme.
In response to increases in living costs experienced by our UK colleagues, we brought forward part of the 2023 pay increase, awarding 35,000 UK-based
junior colleagues a £1,200 salary increase effective from August 2022, ahead of our annual salary review. In January 2023, Barclays worked closely with
Unite the Union to agree a 2023 UK pay deal which, combined with the August 2022 increases, brought the total average salary increase for our lowest
paid colleagues up to 11%. By doing this we ensured that our minimum rate of pay in the UK remains well ahead of Living Wage Foundation
benchmarks.
Similarly, we brought forward part of the 2023 pay increase for our most junior colleagues in Belgium, France, Ireland, Italy, Luxembourg, Netherlands,
Portugal and Spain, awarding them €1,500 effective from 1 November 2022. In November 2022, we also awarded junior colleagues in Germany a one-
off payment of €2,000 as that approach, whilst having the same effect, was more appropriate under local rules.
Our approach to diversity, equity and inclusion
We launched our refreshed DEI vision and strategy to incorporate 'equity’ into how we talk about, and take action to progress, our DEI activities.
Our vision is to strengthen our diverse, equitable and inclusive culture, with a view to attracting and retaining the best talent, building high-performing
teams which generate better outcomes for our customers and clients, whilst also meeting the expectations of our regulators, shareholders and other
stakeholders.
We have five strategic priorities: workforce diversity; inclusive and equitable culture; leadership accountability; data transparency and accountability and
optimisation of external relationships. These priorities are underpinned by our guiding principles of accountability, transparency and engagement. These
principles and priorities help us to deliver against our six core agendas - disability, gender, LGBT+, multicultural, multigenerational and socio-economic.
Workforce diversity
Developing diverse talent pipelines
We are focused on recruiting the best talent and have created, and participated in, dedicated recruitment schemes across our agendas and regions to
increase access to diverse talent, for example, the Barclays Military and Veterans Outreach programme, in the UK and US, and our partnership with the
Thurgood Marshall College Fund in the US.
Globally, there is training and support available for all hiring managers and interviewers to ensure inclusivity and consistency throughout the hiring
journey. We are an equal opportunities employer and give full and fair consideration to all populations based on their competencies, strengths and
potential.
Additionally, as part of the UK Government Disability Confident scheme, we encourage applications from people with a disability, or a physical or mental
health condition. We require people leaders to give full and fair consideration to those with a disability on the basis of strengths, potential and ability,
both when hiring and managing. We also ensure opportunities for training, career development and promotion are available to all.
For further information on our work on developing diverse talent pipelines, please visit our DEI website.
Providing tools and support for colleagues to succeed and progress at every stage of their career
We offer multiple development programmes to support the growth of our colleagues, providing them with the opportunities and resources necessary to
strengthen key skills to progress and reach their full potential.
The Black Professionals Resource Group (BPRG) created Ascent, a six-month programme for Analysts in the UK and US, to support the development of
Black colleagues across Barclays and was the first such programme conceived and delivered by a Barclays Employee Resource Group (ERG).
Inclusive and equitable culture
At Barclays, we are committed to building a supportive and inclusive culture. We believe that making our organisation more equitable will help us to
make the most of the different backgrounds, perspectives and experiences of our colleagues, and to better serve our customers and clients.
As part of our Continuous Listening strategy, we ask colleagues to participate in surveys, providing regular opportunities to feed back on their
experience of working at Barclays. Colleagues are asked to share their feedback on topics ranging from inclusion to wellbeing, and responses help us to
assess progress on our DEI journey and identify areas of focus.
Strategic Report
Our people and culture

home.barclays/annualreport | Barclays Bank PLC Annual Report | 14

Employee Resource Groups (ERGs)
Colleague networks have long played an important role at Barclays, through creating communities and fostering belonging. More recently, they have
acted as a sounding board for the business, driving a better understanding of the needs of our customers, clients and communities. With over 24,000
colleagues globally participating in one or more of the ERGs, these colleague-led communities amplify the unique challenges of diverse groups at
Barclays and provide insight into colleague sentiment and experience.
Socio-economic inclusion agenda
To support the launch of the socio-economic agenda, colleagues created the Inspire ERG, which aims to amplify the voices of those who identify as
coming from a lower socio-economic background. Members and allies of the ERG are encouraged to develop their understanding of how socio-
economic status can impact a person’s work and life experiences. Through Inspire, we are also connecting with schools and universities to remove
barriers for people of varied backgrounds to join Barclays.
Pronouns
In 2022, we added two new features to our internal phonebook where colleagues can opt to display their personal pronouns, as well as the phonetic
spelling or audio recording of their name. We also proudly partnered with Microsoft, to pilot a pronoun feature on Microsoft Teams.
Wellbeing and policies
Prioritising the wellbeing of our colleagues is central to creating productive teams where all individuals feel valued and included. Our holistic and
inclusive perspective requires us to measure wellbeing, using our Wellbeing Index and to educate and empower our colleagues and leaders to actively
manage their health and support that of others. We continue to deploy training, which recognises the importance of mental wellbeing and building a
supportive and inclusive culture. We have also partnered with our DEI ERGs and leaders on global campaigns to normalise conversations about mental
health and wellbeing topics. In the UK, Barclays pioneered ‘This is Me’, no w in its ninth year, where individual colleagues talk openly about the
challenges they have faced, with the aim of tackling the stigma associated with mental ill health.
For the first time in 2022 we expanded the DEI performance objective to include wellbeing, with colleagues now being asked to develop their
understanding of the factors contributing to their resilience and sustaining high performance; and managers now being asked to champion and support
team wellbeing. This was bolstered by the launch, on World Mental Health Day, of a new toolkit to help people leaders lead their teams in a way that
protects and enhances colleague health with a focus on practices such as workload management, fostering autonomy and enabling growth.
We also made enhancements to our provision of workplace adjustments for colleagues with disabilities and health conditions, to drive consistency in
how we support our colleagues globally. Colleagues now have greater control over their own individual requirements and an improved experience
through the implementation of a new self-service process for the ordering of equipment for office and home working use, as required.
We regularly revisit our people policies to ensure they are in line with our broader DEI and people strategy. This includes making updates to our HR
policies, processes and support materials on a range of topics such as flexible working and workplace support for menopause.
Leadership accountability
Our leadership play an important role in progressing our DEI journey and meeting the rising expectations of colleagues, customers, clients and
communities. Accountable Executives (AEs) from the Barclays Group Executive Committee have been appointed as visible advocates for the DEI
agendas, shaping priorities and delivering against these.
Every colleague continues to have a mandatory inclusion performance objective against which they are assessed as part of their performance review.
The objective encourages inclusive and supportive behaviours that recognise every individual’s background as key drivers of our Purpose, Values and
Mindset.
Data transparency and accountability
Data plays an essential role in delivering our DEI strategy, allowing senior leaders to make informed decisions and track our progress.
In an effort to ensure colleagues’ personal data records are accurate, this year we held another ‘Count Me In’ campaign, inviting colleagues in the UK
and US to review and share their personal details in our HR systems, in line with local privacy laws. Maintaining up to date personal data records also
helps us to develop and update programmes, practices and policies to best support colleagues at every level.
In late summer, we began producing an enhanced monthly management pack for senior leaders, containing a detailed breakdown of their team's
progress against our Race at Work and gender ambitions.
Optimisation of external relationships
We develop relationships with external partners to challenge our thinking, leverage best practices and access diverse pools of talent. We partner with
organisations across all six agendas (disability, gender, LGBT+, multicultural, multigenerational and socio-economic) and in each region.
Recognising our colleagues
Over the past year, Barclays and several of our colleagues have been recognised for our efforts to advance diversity, equity and inclusion. For further
details, refer to the Our people and culture section in the Barclays PLC Annual Report 2022.
Talent now and for the future
Talent attraction – now and for the future
Strategic Report
Our people and culture

home.barclays/annualreport | Barclays Bank PLC Annual Report | 15

Across 2022, demand for talent has remained high, alongside a greater focus from candidates seeking flexible working options and on wellness and
wellbeing. In response, we have pursued opportunities to attract and recruit talent as quickly and efficiently as possible, including doubling the number
of recruiters to support our businesses and the launch of the Onboarding app, giving new joiners and their people leaders access to information
required prior to joining Barclays, including the ability to sign employment contracts via the app.
Barclays was ranked number one in the LinkedIn Top Companies UK 2022 list, for the second year in a row. Based on LinkedIn-owned data, the list is a
resource for jobseekers and career builders to explore open vacancies, enhance their skills and identify companies that invest in their talent. This was
further recognised by the Learning and Performance Institute, where Barclays won a Bronze Learning Leader Award.
Delivering world-class customer service and care remains of paramount importance to Barclays. In order to meet the demand, we significantly grew our
customer care teams globally; for example, following the acquisition of the Gap credit card portfolio in the US, we nearly doubled our footprint in our US
contact centre in Nevada, with over 1,800 new hires and saw demand triple for roles supporting our customers in the UK.
Developing our colleagues
We remain committed to our culture of lifelong learning, through a development proposition that supports colleagues at every stage of their career.
The Barclays Learning Lab is our learning ecosystem. Consisting of Barclays-designed knowledge and skills modules, as well as modules from external
specialists, it provides our colleagues with the development tools needed to support them in their current and future roles. Colleagues can access a wide
range of workshops, split between colleague and people leader development. This is complemented by our digital content providers, whose content has
been mapped against role-specific learning pathways, making it easy for colleagues to navigate development resources suitable for their needs. The
Learning Lab also offers a selection of self-assessment tools, empowering colleagues to understand their strengths and development areas. These are
supported by business-led solutions that encompass professional and technical resources encouraging colleagues to drive their own development.
People leadership at Barclays is about helping others to achieve their potential. To equip our people leaders with the critical skills and behaviours to
inspire, develop and support their teams today and into the future, we have refreshed our Management Unlocked programme. The programme provides
participants with extensive digital content, as well as our Evolution programme, which supports new people leaders as they transition into leadership
roles.
We also operate three high-potential flagship leadership programmes: The Enterprise Leaders Summit, for Managing Directors; the Strategic Leaders
Programme, for Directors; and Aspire, for Vice Presidents. These programmes aim to build enterprise-wide leadership, alongside strong people
leadership capabilities, helping colleagues tackle people management situations confidently, in line with our Values and Mindset.
Listening to our colleagues
Listening to colleagues allows us to obtain insights into what we are doing well and areas where we need to focus our attention.
Our biannual all-colleague Your View surveys measure colleague considerations across a breadth of topics including colleague engagement,
organisational culture, including the Mindset and Values, wellbeing, inclusion and working practices and tools. The 2022 survey results indicated good
progress for both engagement and cultural measures. Senior leaders continue to receive and review the results from these surveys to inform decisions.
Results from our surveys and other employee engagement mechanisms were shared with colleagues and discussed with the Barclays PLC Board,
Barclays Bank PLC Board, th eir Executive Committees and people leaders.
We have also evolved our Continuous Listening strategy, leveraging pulse surveys, as well as additional surveys deployed throughout the employee
lifecycle, to capture insights which help us better understand our culture and improve colleague experience.
We have adopted a number of methods for engagement with our workforce, in line with the UK Corporate Governance Code. These engagement
mechanisms, including all-colleague townhalls, skip-level meetings, DEI summits, site visits and engagement surveys, enable colleagues to share ideas
and feedback with senior management and the Board.
We keep colleagues updated on the strategy, performance and progress of the organisation through a combination of leader-led engagement, digital
and print communication, blogs, vlogs and podcasts. In 2022, the Barclays Group CEO held over 50 engagement sessions throughout the year with
colleagues, including quarterly townhalls on financial performance, listening sessions on flagship talent programmes and Q&A sessions. Other
workforce engagement activities have also been carried out by both Board and management to deliver meaningful, regular two-way dialogue with
colleagues. This helps our Board reflect colleague feedback in their decision-making. The range of direct engagement mechanisms we use, across
multiple channels throughout the year, combined with a comprehensive reporting approach, enables us to effectively engage with our workforce.
The Barclays Bank PLC Board has engaged, and will continue to engage, directly with colleagues and listen to feedback from the annual Your View
surveys. The President of Barclays Bank PLC continues to chair the Corporate and Investment Bank Critics Working Group, where a rotating cohort of
Corporate and Investment Bank colleagues are invited to share day to day pain points, alongside ideas to solve these issues. The forum was established
in November 2020 and is now on its seventh cohort. Additionally, regular town halls and skip level sessions took place throughout 2022 in Corporate
and Investment Bank, Consumer, Cards and Payments, and UK Corporate and Transaction Banking, alongside regular Managing Director calls hosted by
Corporate and Investment Banking and Consumer, Cards and Payments leadership to provide updates on strategy, business performance and other key
people priorities such as inclusion, Your View scores and hybrid working. We keep colleagues updated on the strategy, performance and progress of the
organisation through a combination of leader-led engagement, digital and print communication, blogs, vlogs and podcasts.
We maintain a strong and effective partnership with Unite and the Barclays Group European Forum, whom we brief on our strategy and progress to
obtain feedback on how we can improve the colleague experience. In 2022, we engaged with Unite on the transition to hybrid working and our updated
DEI strategy. We also consult with colleague representatives on major change programmes which impact our people, to minimise compulsory job
losses, and focus on reskilling and redeployment. In 2022, this included the launch of an enhanced mobility service to further mitigate redundancies
across the organisation, redeploying colleagues into roles commensurate with their skills and experience, and upskilling colleagues where required.
Strategic Report
Our people and culture

home.barclays/annualreport | Barclays Bank PLC Annual Report | 16

Our policies
Our people policies are designed to recruit the best people, provide equal opportunities and create an inclusive culture, in line with our Purpose, Values,
Mindset and in support of our long-term success. They also reflect relevant employment law, including the provisions of the Universal Declaration of
Human Rights and the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work.
We regularly review and update these policies to ensure that they are in line with our broader DEI and people strategy. To support the transition to
hybrid working in 2022, we updated our policies on Working Flexibly to enable an approach that meets the requirements of each role, while also taking
into account the needs of our colleagues. We also updated our policies and guidance on a range of topics including workplace support for menopause
and baby loss.
We are committed to paying our people fairly and appropriately relative to their role, skills, experience and performance. This means our remuneration
policies reward performance that is in line with our Purpose, Values and Mindset, as well as our risk expectations. We also encourage our people to
benefit from Barclays’ performance by enrolling in our share ownership plans.
Strategic Report
Our people and culture

home.barclays/annualreport | Barclays Bank PLC Annual Report | 17

How the Board has regard to the interests of stakeholders
The Directors provide this statement setting out how they have had regard to the matters set out in Section 172(1)(a) – (f) of the Companies Act 2006
when performing their duty to promote the success of the Company under Section 172. Our Section 172(1) Statement provides details of how the
Directors have engaged with and had regard to the interests of our key stakeholders.
For further details of the work of the Board in 2022, refer to our Governance Report on pages 20 to 38. Details of how the Barclays Group engages with
its stakeholders can be found on pages 16 to 22 of the Barclays PLC Annual Report 2022 and are incorporated by reference into this statement.
How the Board engages with stakeholders
Throughout the year, the Board engages directly and indirectly with stakeholders to ensure it has a comprehensive understanding of the impact of the
Barclays Bank Group's operations on key stakeholders, as well as their interests and views. This engagement, both directly and through regular reports
from individual business areas and key functions ensures the Board is well-versed on key issues to enable the Directors to comply with their legal duty
under Section 172(1).
Over-issuance of Securities
The Board has worked alongside management this year to assess and respond to the Over-issuance of Securities.
The Barclays Group operates a structured products business through the Company, through which it issues structured notes and exchange traded
notes to customers in the US and elsewhere. In order to issue securities of this nature in the US, the Company maintains a US shelf registration
statement with the US Securities and Exchange Commission (SEC).
In March 2022, management became aware that the Company had issued securities materially in excess of the amount registered under the Company's
shelf registration statement on Form F-3, as declared effective by the SEC in August 2019 (2019 F-3). Subsequently, management also became aware of
issuances in excess of the amount registered under BBPLC's prior shelf registration statement (the Predecessor Shelf). Due to an SEC settlement order in
2017, at the time the 2019 F-3 was filed and the Predecessor Shelf was amended, the Company had ceased to be a 'well known seasoned issuer' (or
WKSI) and was required to register upfront a fixed amount of securities with the SEC.
When management became aware of the Over-issuance of Securities, the matter was escalated to senior management and to the Board, and Barclays’
regulators in the US and the UK were notified. As part of its response, the Board considered both the immediate impact of the Over-issuance of
Securities, and the underlying causes of this issue.
The securities issued in excess of the registered amounts were considered to be ‘unregistered securities’ for the purposes of US securities law and
certain offers and sales of these securities were not made in compliance with the US Securities Act of 1933, which requires that offers and sales of
securities be registered unless there is an exemption from registration. This gave rise to rights of rescission for certain purchasers of relevant securities
under US securities laws. As a result, the Company elected to conduct a rescission offer, as approved by the Board, to eligible purchasers of relevant
securities.
Barclays also commissioned a review led by external counsel of the facts and circumstances relating to the Over-issuance of Securities and, among
other matters, the control environment related to such issuances (the Review). The Board carefully considered the outcome of the Review which
concluded that the Over-issuance of Securities occurred because Barclays did not put in place a mechanism to track issuances after the Company
became subject to a limit on such issuances as a result of losing its WKSI status. Among the principal causes of the Over-issuance of Securities were,
first, the failure to identify and escalate to senior executives the consequences of the loss of WKSI status and, secondly, a decentralised ownership
structure for securities issuances. The Review further concluded that the occurrence of the Over-issuance of Securities was not the result of a general
lack of attention to controls by Barclays, and that Barclays’ management has consistently emphasised the importance of maintaining effective controls.
Alongside the BPLC Board, the Board has worked to address the root cause and impacts of the Over-issuance of Securities, including through the
Review, and deeply regrets its occurrence. The Over-issuance of Securities also underlined to the Board the need to continue to focus on embedding
Barclays’ Values and Mindset at all levels of the organisation to achieve operational and controls excellence. Further, the Board has supported the
creation of a Barclays Group-wide programme, established by the Group Chief Executive. This programme will seek to identify issues and lessons
learned across the Barclays Group’s remediation initiatives to help ensure that Barclays is consistently excellent, in customer and client service, in
operational capability and in financial performance, with all activities underpinned by a strong risk management culture.
For more information on the Over-issuance of Securities, please refer to the Shareholder Q&A on pages 188 to 189 of the Barclays PLC Annual Report
2022.
Nigel Higgins
Chairman – Barclays Bank PLC
14 February 2023
Strategic report
Section 172(1) statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 18

Our corporate governance processes and the role they play in supporting the delivery of our strategy

Governance |  | Page
| •Chairman’s introduction | 20
| •Corporate Governance Statement | 22
| •Directors’ report | 35

Governance
Contents

home.barclays/annualreport | Barclays Bank PLC Annual Report | 19

The 2022 Corporate Governance Statement (Governance Report) for the Company provides an overview of how the Barclays Bank PLC (BBPLC)
governance framework operates and of the Board’s key areas of focus during the year.
Strategy and performan ce
2022 was a year of almost unprecedented challenges for Barclays and for society more broadly. As an organisation we continued to demonstrate our
resilience and our ability and commitment to supporting our stakeholders in ever-changing economic conditions. As 2021 closed, we all hoped for
some return of normality as the COVID-19 pandemic restrictions began to be lifted. However, the intervening year has been far from settled with the
Russian invasion of Ukraine, a resulting energy crisis and a sustained rise in interest rates, alongside pressure on households and businesses from rising
costs.
As noted in our Strategic Report, global inflationary pressures significantly affected the financial markets in 2022, resulting in weaker performance in
Investment Banking, which was consistent with declines in capital market activity across the industry. However, the Corporate and Investment Bank
(CIB) achieved growing market share, particularly in our trading business, which compensated for this decline in activity. Opportunities presented by the
climate transition and the broader sustainability agenda continued to grow, despite the challenging market conditions, as we continue to seek to
capture these opportunities through the transition to the low-carbon economy.
In Consumer, Cards and Payments (CC&P), whilst the rises in inflation and interest rates are driving changes in consumer behaviour, particularly the
level of demand for personal loans, there has been continued recovery in consumer activity and spending post the COVID-19 pandemic and the shift
toward digital services and payments continues to grow.
In terms of our strategic focus areas, our aim in CIB continues to be to provide comprehensive and integrated services to clients, delivering solutions
across Investment Banking, Corporate Banking and Global Markets, and to capture opportunities presented by climate change. Within CC&P, we strive
to deliver next-generation consumer businesses, offering best-in-class consumer finance, private banking and payment solutions.
You can read more about our strategy and performance during 2 022 in our Strategic Report on pages 1 to 18.
I am also pleased to report that our new Chief Executive, C.S. Venkatakrishnan (known as Venkat), has navigated well the challenges of his first year.
However, Venkat, his Executive Committee colleagues, and the Board as a whole, are very conscious that there is much work ahead. In particular, we
have to improve aspects of the way Barclays operates in order to eliminate the type of error that led to the loss relating to the issuance of securities
materially in excess of the limits under certain of our US registration statements. This incident reflects internal failings which we are determined to
remedy; you can read more about this in the Barclays PLC Annual Report 2022, including the Shareholder Q&A on pages 188 to 189 of that document.
The Board
2022 saw a number of changes to our Board. Anna Cross joined the Board as an Executive Director on 23 April 2022. Anna was also appointed to the
role of Group Finance Director and as an Executive Director of the Barclays PLC (BPLC) Board. Anna joined Barclays in 2013 and worked in a number of
roles, including as Deputy Group Finance Director from 2020. With her deep knowledge of the Barclays Group, Anna brings significant skills and
experience to the Board and was able to step immediately into the role, ensuring a smooth transition, and supporting our Chief Executive and his
leadership team with the ongoing delivery of the Barclays' Group strategy.
Tushar Morzaria stepped down as an Executive Director of the Board with effect from 22 April 2022. Tushar has been an invaluable member of the
senior management team at Barclays since 2013, when he joined as Group Finance Director, and played a significant role in the rebuilding of the
Barclays Group’s financial and operational resilience. The Board is grateful for his hard work and we are delighted that Tushar has a continuing role
within the Barclays Group in his role as Chairman of the Global Financial Institutions Group.
Robert Berry was appointed to the Board as a Non-Executive Director on 8 February 2022, and as Chair of the Board Risk Committee and a member of
the Board Audit Committee with effect from 1 March 2022. Robert brings with him a wealth of risk management experience from his distinguished
career at Goldman Sachs.
Tim Breedon stepped down as a member of the Board and as Chair of the Board Risk Committee with effect from 28 February 2022. He remains the
Chair of Barclays Bank Ireland PLC. The Board extends its thanks to Tim for the significant contribution he made to both the Board and the Board Risk
Committee during his tenure.
We also recently welcomed Marc Moses to the Board as a Non-Executive Director and member of the Board Audit and Risk Committees, with effect
from 23 January 2023. Marc brings a strong technical finance background with a deep knowledge of banking and financial services, and his
appointment further reinforces the recent and relevant financial expertise on the Board.
On 1 April 2023 we look forward to welcoming Julia Wilson to the Board as a Non-Executive Director. Julia is already a Non-Executive Director of BPLC
and a member of the BPLC Board Audit, Risk and Nominations Committees. From 1 April 2023, Julia will take on the role of Chair of the BPLC and BBPLC
Board Audit Committees (subject to regulatory approval), as our current Board Audit Committee Chair, Mike Ashley, steps down from this role. Mike will
also be stepping down from the Board and the BPLC Board at the conclusion of the 2023 BPLC Annual General Meeting (AGM).
I am deeply grateful for the ongoing support and hard work of all my Board colleagues during 2022. Scheduled Board and Committee meetings were
supplemented by a number of additional meetings (including a number at short notice) in order to discuss key issues arising throughout the year.
Governance
Chairman’s introduction

home.barclays/annualreport | Barclays Bank PLC Annual Report | 20

The future
The Board continues to believe that the diversification of the Barclays Bank Group remains a key strength, providing balance, resilience and opportunity.
Within CIB, we will continue to focus on maintaining our client-centric approach, exploring opportunities for growth and driving returns, whilst across
CC&P, we remain committed to investing to build our technology and digital capabilities, in line with the Barclays Group strategy.
On behalf of myself and my fellow Board members, let me finish by expressing our gratitude to all those with whom we have worked alongside in 2022
- our colleagues, clients, customers, regulators and governments.
Nigel Higgins
Chairman – Barclays Bank Group
14 February 2023
Governance
Chairman’s introduction

home.barclays/annualreport | Barclays Bank PLC Annual Report | 21

Overview of Governance Framework
The membership of the BPLC and BBPLC Boards was partially consolidated and streamlined in 2019, to improve coordination and efficiency whilst
reducing complexity and unnecessary duplication. As a result, membership of the BBPLC Board is a subset of the BPLC Board, with all members of the
BPLC Board (except the Senior Independent Director, the Chair of Barclays Bank UK PLC (BBUKPLC) and at least one other Non-Executive Director) also
serving on the Board of BBPLC. This structure vests oversight over the activities of BBPLC in a board the members of which also have direct
accountability to BPLC’s shareholders through their separate responsibilities as members of the BPLC B oard.
The Board aspires to have high standards of corporate governance and, in accordance with the Companies (Miscellaneous Reporting) Regulations 2018
(the 2018 Regulations), has adopted its own corporate governance arrangements, which it believes are appropriate to apply and are designed to ensure
effective decision-making to promote BBPLC’s success for the long-term.
The Board chose not to adopt and report against the 2018 UK Corporate Governance Code (Code), which is designed for premium listed companies.
Further, whilst fully supportive of the Wates Corporate Governance Principles for Large Private Companies (in particular the focus on purpose, culture
and colleague and stakeholder engagement), the Board considers that those Principles are less appropriate for a wholly-owned subsidiary of a premium
listed company, which is also a complex financial institution subject to a comprehensive regulatory regime. This is consistent with the approach of other
significant subsidiaries within the Barclays Group which are subject to the 2018 Regulations.
The Board’s primary aim is that our governance framework:
•ensures we have an effective and entrepreneurial Board which makes decisions and provides oversight to promote BBPLC's success, creating long-
term sustainable value for the shareholder and the ultimate shareholders of BPLC, having regard to the interests of all our other stakeholders
•promotes our Purpose, Values, Mindset and culture, and seeks to ensure that our decision-making is aligned with these
•is effective in providing constructive challenge, strategic guidance and support to management
•provides checks and balances and drives informed, collaborative and accountable decision-making.
Set out below are the principles which underpin our corporate governance arrangements and how these principles have been applied during 2022.
Certain additional information, signposted throughout this section, is available in the Strategic Report and the Board and Board Committees sections on
page s 25 to 34.
The Barclays Group-wide governance framework is set by BPLC and has been designed to facilitate the effective management of the Barclays Group.
This includes the setting of Barclays Group policies and approach in relation to matters such as Barclays’ Purpose, Values and Mindset, Barclays’
Remuneration Policy and the Barclays Charter of Expectations. Where appropriate, this Corporate Governance Statement makes reference to those
Barclays Group-wide policies, which are relevant to the way in which the Company is governed.
The Company’s corporate governance principles and how the Company has applied them during 2022 and to the date of this report

Principle One: Board leadership and company purpose
A successful company is led by an effective and entrepreneurial board, whose role is to establish the company’s purpose, values and strategy, aligned to
its culture and make decisions to promote its success for the long-term benefit of its shareholder, having regard to the interests of other relevant
stakeholders and factors.

▪Through the leadership of the Board, a clear vision of the Barclays Purpose, Values and Mindset is articulated, underpinning and defining the
strategy and culture of the organisation, which is embedded at every level of management.
▪Following the introduction of the Barclays Mindset in 2021 - Empower, Challenge and Drive - which acts as an operating manual for how to get
things done at Barclays, the Board has continued to track the progress of its embedment in everyday activities.
▪The Board believes that a positive culture, supported by an effective leadership and a consistent ‘tone from the top’ is crucial to our success. Culture
remains a core area of focus for the Board and is reviewed in a number of ways. The Board supports The Barclays Way which sets the framework for
achieving a dynamic and positive culture. The Board receives feedback on our culture through a number of channels, including receiving reports on
the outcome of colleague surveys and direct engagement with colleagues locally, such as town hall meetings and site visits. Refer to the Our people
and culture section o n pages 14 to 17 for more information on workforce matters.
▪Given its fundamental importance, the Board regularly considered strategy matters at its 2022 meetings, continuing to deepen its understanding of
the Barclays Bank Group's business, as well as the risks and opportunities the Barclays Group and the wider banking industry faces. This included
regular corporate strategy sessions, as well as a series of business and function reviews, covering areas including the CIB, Consumer, Cards and
Payments, US Consumer Bank, Legal, Risk and HR. The Board also received a series of sessions during the year on 'horizontal topics' impacting the
wider Barclays Group such as cyber, climate and data strategy.
▪Further detail on the Company’s strategy can be found on pages 1 to 4 o f the Strategic Report and details of the Barclays' Group strategy can be
found on pages 12 to 15 of the Barclays PLC Annual Report 2022.

Principle Two: Division of responsibilities
An effective board requires a clear division of responsibilities with the Chair leading the board and being responsible for its overall effectiveness, and the
executive leadership of the company’s business being delegated to the Chief Executive . The board should consist of an appropriate combination of
Executive and independent Non-Executive Directors, each with a clear understanding of their accountability and responsibilities. The board’s policies
and procedures should support effective decision-making and independent challenge.

▪There is a clear division of responsibilities between the Chair and Chief Executive. Details of each role can be found on page 25 of this report. Page
25 sets out the details of the Board members, the majority of whom are independent Non-Executive Directors.
▪Policies and protocols are in place to support effective decision-making and independent challenge, including the Barclays Charter of Expectations
which sets out the individual role profiles and required behaviours and competencies of each Director. In accordance with the Charter of
Expectations, the Non-Executive Dire ctors are responsible for providing effective oversight, strategic guidance and constructive challenge while
holding the Executive Directors to account against agreed performance objectives. The Chairman meets privately with the Non-Executive Directors
when appropriate, to promote independence.
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 22

▪The Board's respon sibilities are executed in part through the Board Committees, each of which has its own Committee Terms of Reference which
set out its remit and decision-making powers. The Chairs of each of the Board Committees provide a report on the work of the Committee at every
Board meeting. Details of the principal Board Committees and their core responsibilities and activities in 2022 are set out on pages 27 to 31 of this
report. Appropriate information and support is provided to the Board, to enable it to undertake its work with due care and discharge its
responsibilities. See page 25 for further details.
▪The Barclays Group Corporate Governance Operati ng Manual sets out guidelines as to how Barclays Group entities (and their respective Boards and
Board Committees) should interact with each other, while providing guidance and clarity for management and directors as to how these
relationships and processes should work in practice. It is a dynamic document that continues to evolve with the changing nature of the Barclays
Group.

Principle Three: Composition, succession and evaluation
A board with the right balance of skills, experience and diversity is critical to the sustainable delivery of value to the company’s shareholder and broader
stakeholders. The size of the board should be guided by the scale and complexity of the company and appointments should be based on merit and
objective criteria, with a view to promoting diversity and subject to a formal, rigorous and transparent procedure, which is underpinned by an effective
succession plan for board and senior management. A successful board is a cohesive board that provides informed and constructive challenge to the
management team and measures its effectiveness.

▪The size and composition of the Board is considered appropriate for the Barclays Bank Group. There is a good balance between Executive and
independent Non-Executive Directors, with the Non-Executive Directors able to provide essential independent challenge. Board members have a
strong combination of technical, finance (including significant financial services experience) and commercial skills along with broader experience in
culture and colleague engagement.
▪The membership of the Board is drawn exclusively from the BPLC Board. On 23 April 2022, the Board appointed Anna Cross as an Executive
Director following Tushar Morzaria's retirement as an Executive Director on 22 April 2022. The Board appointed Robert Berry as a Non-Executive
Director with effect from 8 February 2022, and Tim Breedon retired as a Non-Executive Director with effect from 28 February 2022. Marc Moses
joined the Board as a Non-Executive Director on 23 January 2023. Julia Wilson will join the Board as a Non-Executive Director with effect from 1 April
2023 and in addition will take on the role of Chair of the Board Audit Committee (subject to regulatory approval). Mike Ashley will step down from
the Board at the conclusion of the BPLC 2023 AGM.
▪All appointments to the Board and senior management are based on merit and an objective criteria, with a continued strong belief in the benefits of
diversity (of skills, regional and industry experience, social and ethnic background, race, gender and other distinctions such as cognitive and
personal strengths) for an effective Board and organisation. The Company continues to strive to build a workforce that reflects the diversity of its
customers and the communities it serves. Across the Barclays Group, diversity, equity and inclusion (DEI) remains a key area of focus. Further
information can be found on pages 31 to 38 of the Our People and Culture section of the Barclays PLC Annual Report 2022 and in Barclays’ DEI
report, which will be made available on the Barclays website later in the year. The report explains Barclays’ DEI strategy and progress in this area.
▪There is regular review of the leadership and succession needs of the business to maintain the depth and diversity of the talent and succession
pipeline at the Board, Executive and key management level. This remains a key focus to maintain the quality of leadership that is in place to lead the
business in the delivery of the strategy, against a challenging economic and operating environment.
▪The Board approved a number of changes to our Executive Committee during 2022. You can read more about these on page 33 of this report.
▪Effectiveness is supported through annual evaluations of the Board, Board Committees and individual Directors. In 2022, the Board, Bo ard
Committee and individual Director effectiveness evaluations were conducted internally. Key findings are included for the Board and each Board
Committee on pages 27 to 31 of this report.
▪Ongoing training and professional development is a key focus to provide Board members with a deeper and more granular understanding of the
business, contributing to informed and sound decision-making. Further detail can be found in the Training and Induction section of this report on
page 34.

Principle Four: Audit, Risk and Internal Control
A board should establish formal and transparent policies and procedures to (i) identify the nature and extent of principal risks the company is willing to
take in order to achieve its long-term strategic objectives; (ii) manage such risks effectively; (iii) oversee the internal control framework; (iv) promote the
independence and effectiveness of internal and external audit functions; and (v) satisfy itself on the integrity of financial reporting.

▪The Company is committed to operating within a strong system of internal controls that enables the business to be transacted and risks taken
without exposure to unacceptable potential losses or reputational damage. The principal risks facing the Barclays Bank Group have been identified
and robust processes are in place to evaluate and manage such risks including regular reporting to, and oversight by, the Board Risk Committee and
the Board. A key component of the risk management framework is the Enterprise Risk Management Framework (ERMF), which supports the
business in its aim to embed effective risk management and a strong risk management culture. The ERMF is designed to identify and set minimum
requirements, in respect of the main risks, to achieve the Company’s strategic objectives and to provide reasonable assurance that internal controls
are effective. Climate Risk became a Principal Risk under the ERMF from 1 January 2022. Further detail on the Princi pal Risks and management of
them can be found on pages 8 to 9 of the Strategic Report.
▪The Board approves the Barclays Bank Group's risk appetite (the amount of risk the Barclays Bank Group is able to take to earn an appropriate
return while meeting minimum internal and regulatory capital requirements in a severe but plausible stress environment), including testing whether
the Barclays Bank Group’s financial position and risk profile provide sufficient resilience to withstand the impact of severe but plausible economic
scenarios) within the parameters set by the BPLC Board Risk Committee. Significant steps have been taken in recent years to de-risk the business in
order to support sustainable growth and value creation in the future.
▪Effectiveness of risk management and internal controls is reviewed regularly by the Board Risk Committee (responsible for providing oversight on
current and potential future risk exposures) and the Board Audit Committee (responsible for evaluating the effectiveness of internal controls).
Please see pages 27 to 31 for further detail on the role of these Committees.
▪The Board Audit Committee also has oversight of the financial reporting processes and the work of the external and internal auditors (including
independence and effectiveness). Further detail can be found on pages 27 to 28 of this report.
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 23

Principle Five: Remuneration
The remuneration policies and practices should support strategy and promote long-term sustainable success, and be developed in accordance with
formal and transparent procedures, ensuring no director is involved in deciding their own remuneration outcome. Executive remuneration should be
aligned to the c ompany’s purpose and values and the successful delivery of the strategy; with outcomes taking account of company and individual
performance, and wider circumstances such as pay across the company’s workforce and Barclays’ Fair Pay Agenda.

▪Barclays’ Remuneration Policy is set by the BPLC Board Remuneration Committee, and reviewed and adopted by the Company’s Board
Remuneration Committee. Remuneration is aligned to the Company’s strategy and risk management approach and designed to promote the long-
term success of the Company.
▪Executive and senior management remuneration approaches are developed in accordance with the Barclays Group’s formal procedures (ensuring
no Director is involved in deciding their own remuneration outcome), having regard to wider workforce remuneration policies and alignment of
incentives and rewards with performance and culture, as reviewed annually by the BPLC Board Remuneration Committee and shared with the
Company’s Board Remuneration Committee.
▪The Board Remuneration Committee has clearly defined terms of reference, with responsibility for the development of a remuneration approval
framework to ensure an appropriate level of oversight of senior remuneration decisions, as well as annual consideration of the Company incentive
pool to ensure alignment with delivery of the Company’s strategic ambitions.
▪The Company remains focused on closing its gender and ethnicity representation gaps where they exist, and the pay gaps that result. Barclays is
due to publish its 2022 gender pay gap statistics on the government's gender pay gap reporting portal and will publish the Group's UK Pay Gaps
2022 disclosure on the Barclays w ebsite on 15 February 2023. This will include the voluntary disclosure of Barclays' ethnicity pay gaps in the UK. For
2022, Barclays will also publish a Fair Pay Report summarising its approach to pay fairness.

Principle Six: Stakeholder relationships and engagement
Directors should foster effective stakeholder relationships aligned to the company’s purpose. The board should recognise the importance of listening to,
and understanding the views of its stakeholders, including the workforce, and specifically the impact of the company’s behaviour and business on
customers and clients, colleagues, suppliers, communities and society more broadly; having regard to these views and impact when taking decisions.

▪As described under Principle One, the Company has a defined Purpose and strategy; through this the Board has identified key stakeholders on
whom the success of the Company depends. Please see page 18 of the Strategic Report for details of our key stakeholders.
▪The Board and management engage throughout the year with the Company's stakeholders. The Board seeks to understand the views of key
stakeholders and the impact of the Company’s behaviour and business on customers and clients, colleagues, suppliers, communities and society
more broadly. Refer to our Section 172(1) statement on page 18 of the Strategic Report for further information about our engagement with
stakeholders.
▪The Company’s long-standing commitment to the importance and value of colleague engagement continues; the Company’s people are its most
valuable asset. Further detail on the Company’s workforce commitment and engagement model can be found in the Our people and culture section
on pages 14 to 17 of the Strategic Report.

Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 24

The Board
The Directors who served during the financial year ended 31 December 2022 are set out in the table below, together with the composition of each of
the Board’s Committees.

| Board | Audit Committee | Risk Committee | Remuneration Committee | Nominations Committee
Nigel Higgins Chairman of the Board | C |  |  |  | C
Mike Ashley Independent Non-Executive Director | M | C | M |  | M*
Robert Berry Independent Non-Executive Director | M+ | M+ | C+ |  |
Anna Cross Executive Director | M++ |  |  |  |
Mohamed A. El-Erian Independent Non-Executive Director | M |  | M |  | M+++
Dawn Fitzpatrick Independent Non-Executive Director | M |  | M | M |
Mary Francis Independent Non-Executive Director | M |  |  | C |
Diane Schueneman Independent Non-Executive Director | M | M | M |  | M
C.S. Venkatakrishnan Executive Director | M |  |  |  |
Former Directors |  |  |  |  |
Tim Breedon Independent Non-Executive Director | M** |  | C** |  | M**
Tushar Morzaria Executive Director | M*** |  |  |  |
Directors appointed post 31 December 2022 but prior to publication of this report |  |  |  |  |
Marc Moses Independent Non-Executive Director | M++++ | M++++ | M++++ |  |

C Chair of Board or Committee
M Member of Board or Committee
* Mike Ashley stepped down from the Board Nominations Committee on 1 September 2022
** Tim Breedon retired from the Board, as Chair and member of the Board Risk Committee and as a member of the Board Nominations Committee, in each case with effect
from 28 February 2022
*** Tushar Morzaria retired from the Board on 22 April 2022
+ Robert Berry was appointed to the Board on 8 February 2022 and was appointed Chair of the Board Risk Committee with effect from 1 March 2022. Robert also joined the
Board Audit Committee with effect from 1 March 2022
++ Anna Cross joined the Board as an Executive Director with effect from 23 April 2022
+++ Mohamed A. El-Erian joined the Board Nominations Committee with effect from 1 September 2022
++++ Marc Moses was appointed to the Board and as a member of the Board Audit and Risk Committees on 23 January 2023
Tushar Morzaria retired from the Board with effect from 22 April 2022, with Anna Cross succeeding him as a member of the Board on 23 April 2022.
The Board is grateful for Tushar's valuable contribution to the Board and are delighted that he has a continuing role with the Barclays Group as
Chairman of the Global Financial Institutions Group.
We welcomed Robert Berry to the Board as a Non-Executive Director on 8 February 2022. Robert was appointed Chair of the Board Risk Committee with
effect from 1 March 2022, when he also joined the Board Audit Committee as an additional member. Tim Breedon retired as a member of the Board and
Board Nominations Committee and as Chair of the Board Risk Committee with effect from 28 February 2022. The Board is grateful to Tim for the
valuable contribution he made as a Board member and to the Board Risk Committee during his tenure. Marc Moses joined the Board as a Non-Executive
Director on 23 January 2023 and Julia Wilson will join the Board as a Non-Executive Director with effect from 1 April 2023. Mike Ashley will step down
from the Board at the conclusion of the BPLC 2023 AGM.
Executive and Non-Executive Directors share the same duties and are subject to the same constraints. However, a clear division of responsibilities has
been established. The Chair is responsible for leading the Board and its overall effectiveness in directing the Company, demonstrating objective
judgement and promoting a culture of openness and inclusion, and facilitating and encouraging constructive challenge and debate between all
Directors, and which challenges executives where appropriate. The Chair facilitates constructive Board relations and the effective contribution of all
Non-Executive Directors, and ensures Directors receive all information in an accurate, timely and clear form that is relevant to discharge their
obligations. It is the Board’s responsibility to ensure that management deliver on short-term objectives, whilst promoting the long-term success of the
Company and the Barclays Bank Group. The Board is also responsible for ensuring that management maintains an effective system of internal control
which should provide assurance of effective and efficient operations, internal financial controls and compliance with law and regulation. In meeting this
responsibility, the Board considers what is appropriate for the Company’s business and reputation, the materiality of financial and other risks and the
relevant costs and benefits of implementing controls.
The Board is responsible for the Barclays Bank Group, which contains the majority of the Barclays Group’s Barclays International division, comprising the
CIB and CC&P businesses.
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 25

The BBPLC Matters Reserved to the Board ensures that appropriate coordination with the governance of the partially consolidated BPLC and BBPLC
Boards is in place. The Matters Reserved to the Board specifies those decisions reserved solely to the decision-making power of the Board. Those
matters include material decisions relating to strategy, risk appetite, medium term plans, capital and liquidity plans, risk management and controls
frameworks, approval of financial statements, approval of large transactions and the approval of share allotments, dividends and share buybacks. The
Board has delegated the responsibility for making and implementing operational decisions and running the Company’s business on a day-to-day basis
to the Chief Executive and his Executive Committee.
The current Board comprises a Chairman, who was independent on appointment, two Executive Directors and seven independent Non-Executive
Directors. The majority of the Board are independent Non-Executive Directors bringing significant expertise (including external perspectives) and
independent challenge. The independence of the Non-Executive Directors is considered annually.
Attendance
Directors are expected to attend every Board meeting. Owing to a prior commitment, Mohamed A. El-Erian was unable to attend one scheduled
meeting and Dawn Fitzpatrick was unable to attend two scheduled Board meetings (held on consecutive days) due to a bereavement. During 2022,
there were five ad hoc Board meetings, a number of which were convened at short notice which resulted in some Directors being unable to attend.
Attendance at meetings in 2022 is reflected in the table below:

Director | Scheduled eligible meetings attendance | Ad hoc eligible meetings attendance | Effective Date
Nigel Higgins | 14/14 | 5/5 | Appointed 1 March 2019
Mike Ashley | 14/14 | 5/5 | Appointed 25 September 2019
Robert Berry | 14/14 | 5/5 | Appointed 8 February 2022
Anna Cross | 12/12 | 3/3 | Appointed 23 April 2022
Mohamed A. El-Erian | 13/14 | 2/5 | Appointed 1 January 2020
Mary Francis | 14/14 | 3/5 | Appointed 25 September 2019
Dawn Fitzpatrick | 12/14 | 5/5 | Appointed 25 September 2019
Diane Schueneman | 14/14 | 4/5 | Appointed 25 September 2019
C.S. Venkatakrishnan | 14/14 | 5/5 | Appointed 1 November 2021
Former Directors
Tim Breedon | 2/2 | 1/1 | Stepped down 28 February 2022
Tushar Morzaria | 2/2 | 2/2 | Stepped down 22 April 2022

What the Board did in 2022
During 2022, the Board focused on the following specific areas:

Strategy and operational matters

▪Considered strategy matters regularly throughout the year. In addition to considering matters of corporate strategy, the Board participated in a
series of business and function reviews covering areas including CIB, Consumer, Cards and Payments, US Consumer Bank, Legal, Risk and HR. The
Board also had regular focus sessions on 'horizontal topics' impacting the wider Barclays Group, including on cyber, climate and data.
▪Received updates on climate and sustainability matters, including updates from management on BBPLC's climate strategy in capturing
opportunities as the Barclays Group and wider ecosystem transitions towards a low carbon economy.
▪Discussed regular updates from the Chief Executive and President of BBPLC on the progress being made against the Barclays Bank Group strategy
and business performance, and also on operational and technology matters.
▪Continued to focus on culture and colleague engagement. The Board received feedback on culture through various channels, including reports on
the outcome of colleague survey results and direct engagement with colleagues via town halls and site visits. The Board also considered the impact
of hybrid working to understand what works well for colleagues remotely and on site.
▪Reviewed and considered updates on the progress that has been made against the Race at Work Ambition, Gender Ambition (including actions to
promote gender diversity in the CIB) and progress towards creating an inclusive and equitable workforce to underpin business performance.

Finance

▪Regularly assessed the financial performance of the various businesses and the Barclays Bank Group results through reports from the Chief
Financial Officer and through business specific updates to the Board.
▪Reviewed and approved BBPLC’s financial results prior to publication.
▪Reviewed and approved the payment in March 2022 by BBPLC of a third interim dividend for the year ended 31 December 2021. Details of
dividends paid in 2022 are set out in N ote 10 of th e financial statements.
▪Considered and approved the BBPLC elements of the Barclays Group Recovery Plan.
▪Considered and approved the BBPLC Medium Term Plan (MTP).

Governance and risk (including regulatory issues)

▪Received regular updates on the development of the Financial Conduct Authority's (FCA) Consumer Duty and established a Consumer Duty
Committee to oversee implementation of the Consumer Duty for the Barclays Bank Group. The Board approved the appointment of Mary Francis as
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 26

the BBPLC Consumer Duty Champion and the scope of the responsibilities of the role, which are aligned with FCA guidance. The Board oversaw the
activities of the Consumer Duty Committee, including the Consumer Duty Committee's review and approval of the BBPLC implementation plan
ahead of the regulatory deadline.
▪Received regular updates on key risk themes, including on the impacts of the Russian invasion of Ukraine, market volatility and 'cost of living'
pressures, and approved the Company’s risk appetite.
▪Considered regular updates on the Over-issuance of Securities, inc luding its financial impact and associated hedging arrangements, the implications
of the Over-issuance of Securities for the Company's financial statements, including the approval of the restatement of the BBPLC 2021 financial
statements included in the amended annual report on Form 20-F for the year ended 31 December 2021. The Board also approved the launch of the
rescission offer and had oversight of the remediation of the material weakness in internal control over financial reporting which led to the Over-
issuance of Securities, as well as work required to address the specific requirements of the US Securities and Exchange Commission (SEC), set out in
its order of 29 September 2022. The Board has also reviewed the findings of a review by external counsel of the facts and circumstances relating to
the Over-issuance of Securities and, among other things, the control environment related to such issuances.
▪Received reports on operational resilience, including in relation to cyber security.
▪Considered and approved appointments of Directors following recommendations from the Board Nominations Committee.
▪Received regular reports from the Chair of each Board Committee. Please see the reports on each Board Committee which set out the principal
activities of each Committee, below on p ages 27 to 31.
▪Received and considered feedback from the Barclays Group’s principal regulators.
▪Considered the results of the internally facilitated 2022 Board effectiveness evalu ation.
Board Committees
The Board is supported in its work by its Board Committees - the Board Audit Committee, the Board Nominations Committee, the Board Remuneration
Committee and the Board Risk Committee. Pursuant to authority granted under the Company’s Articles of Association (Articles), each Board Committee
has specific responsibilities delegated to it by the Board. Each Board Committee has its own terms of reference clearly setting out its remit and decision-
making powers. You can read about what each of the Board Committees did during 2022 on the following pages.
The Chair of each Board Committee provides a report on Committee business at each Board meeting, including any matters being recommended by the
Committee for Board approval, and also provides periodic written reports to the Board on the work of the Committee.
Board Audit Committee
The Board Audit Committee is comprised solely of independent Non-Executive Directors, with membership of the Board Audit Committee largely
aligned with the BPLC Board Audit Committee and designed to provide the breadth of financial expertise and commercial acumen it needs to fulfil its
responsibilities. Its members as a whole have recent and relevant experience of the banking and financial services sector, in addition to general
management and commercial experience, and are financially literate. The Board Audit Committee is chaired by Mike Ashley who has over 20 years'
accounting and audit experience. Diane Schueneman and Robert Berry are the other members of the Committee, with Robert's appointment to the
Committee having taken effect on 1 March 2022. Marc Moses joined the Committee on 23 January 2023. On her appointment to the Board as a Non-
Executive Director on 1 April 2023, Julia Wilson will join the Board Audit Committee and will succeed Mike Ashley as Chair of the Board Audit Committee
(subject to regulatory approval).
In addition to scheduled meetings, the Board Audit Committee also held four ad-hoc meetings during 2022. Owing to prior commitments, Diane
Schueneman was unable to attend two ad-hoc meetings. Attendance by the Board Audit Committee members is shown below. Board Audit Committee
meetings were attended by representatives from the Barclays Group and/or BBPLC management in respect of matters relevant to their function or
business area, including the Chief Executive, the Chief Financial Officer, the President of BBPLC, the Barclays Group and/or BBPLC Chief Compliance
Officer, the Chief Controls Officer, the Barclays Group Chief Operating Officer, the Barclays Group Chief Internal Auditor, the BBPLC Chief Internal
Auditor, the Barclays Group General Counsel, as appropriate, and the Company’s statutory auditors, KPMG.
The Board Audit Committee held a number of separate private sessions with the Barclays Group Chief Internal Auditor and the BBPLC Chief Internal
Auditor and with the lead audit engagement partner of the statutory auditor, which were not attended by management.
As part of the Company’s commitment to effective oversight and allocation of responsibilities between the BPLC Board Audit Committee, the BBUKPLC
Board Audit Committee and the Committee, Mike Ashley held regular meetings during 2022 with the BBUKPLC Board Audit Committee Chair to share
relevant information and to ensure embedment of information flows and governance practice. In addition, discussions were held with the Board Audit
Committee Chairs of the Company’s other major subsidiaries, Barclays Bank Ireland PLC and Barclays US LLC.
Attendance at the Board Audit Committee during 2022 was as follows:

Member | Meetings attended/eligible to attend | Effective Date
Mike Ashley (Chair) | 14/14 | Appointed 25 September 2019
Robert Berry | 12/12 | Appointed 1 March 2022
Diane Schueneman | 12/14 | Appointed 25 September 2019

The principal role and responsibilities of the Board Audit Committee, pursuant to its Terms of Reference, are:
▪assessing the integrity of the Barclays Bank Group’s financial reporting and satisfying itself that any significant financial judgements made by
management are sound
▪evaluating the effectiveness of the Barclays Bank Group’s internal controls, including internal financial controls
▪scrutinising the activities and performance of the internal and statutory auditors, including monitoring their independence and objectivity
▪overseeing the relationship with the Barclays Bank Group’s statutory auditor
▪reviewing and monitoring the effectiveness of the Barclays Bank Group’s whistleblowing procedures.
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 27

During 2022, the principal activities of the Board Audit Committee included:
•Financial reporting: assessing the appropriateness of financial disclosures and scrutinising management's approach to judgements, including in
respect of Expected Credit Loss and Post-Model Adjustments. The Committee also considered the effect of the Over-issuance of Securities on the
Company's financial statements and recommended to the Board for approval the restated financial statements for the year ended 31 December
2021, as filed with the SEC on 23 May 2022 in an amended annual report on Form 20-F. The Committee further recommended to the Board that it
did not believe that it was necessary or appropriate to revise the 2021 UK financial statements to reflect the impact of the Over-issuance of
Securities. Instead, the prior year comparatives have been restated in this 2022 Annual Report and Accounts to reflect the impact of the Over-
issuance of Securities.
▪Impairment: assessing the appropriateness of impairment experience against forecast and considering whether impairment provisions were
appropriate. As part of its monitoring, the Committee considered a number of reports from management, including in particular the impact of the
uncertain macroeconomic environment.
▪Conduct provisions: analysing the judgements and estimates made with regard to the Barclays Bank Group’s material conduct provisions.
▪Legal, competition and regulatory provisions: evaluating advice on the status of current legal, competition and regulatory matters and considering
management’s judgements on the level of provisions.
▪Valuations: monitoring the valuation methods applied by management to significant valuation items and areas of judgement.
▪Tax: overseeing tax matters relating to the Barclays Bank Group, including tax risk provisions, regulatory matters and the impact of announcements
made by the UK government in relation to the future rate of corporation tax.
▪Internal controls and business control environment: monitoring and evaluating the status of significant control issues through regular reports from
the Chief Controls Officer, including updates on progress of remediation programmes relevant to the Barclays Bank Group, the impact of hybrid
working, the annual data protection update, and monitoring Client Asset Sourcebook (CASS) updates and compliance with CASS. The Committee
also monitored the remediation of internal control over financial reporting in relation to the identification and monitoring of issuance limits,
following the Over-issuance of Securities, and monitored the work carried out to address the specific requirements of the SEC set out in its order of
29 September 2022.
▪Raising concerns: reviewing management's reports on whistleblowing matters, monitoring whistleblowing metrics and retaliation reports, as well as
considering potential whistleblowing trends which might emerge. The Committee approved enhancements to certain elements of the Group
whistleblowing process (as it applies to BBPLC) following an external benchmarking review.
▪Internal audit: receiving reports from Barclays Internal Audit in relation to specific audits, key areas of focus and themes; overseeing issues arising
from unsatisfactory audit reports and monitoring related remediation plans; discussing Barclays Internal Audit’s assessment of the management
control approach and control environment in the Barclays Bank Group.
▪External audit: reviewing and approving the annual audit plan for the Barclays Bank Group, including the main areas of focus, and assessing the
progress of the 2022 audit. The Committee also reviewed audit quality and discussed KPMG’s feedback on the Barclays Bank Group's critical
accounting estimates and judgements.
An internal review of the effectiveness of the Board Audit Committee was undertaken in 2022. The results of the review confirm the Committee is
operating effectively. It is considered well constituted, providing an effective and appropriate level of challenge and oversight of the areas within its
remit. The review noted that the Committee’s interaction with the Board, Board Committees and senior management is considered effective. Feedback
indicated that concurrent meetings of the BPLC and BBPLC Board Audit Committee continue to be effective, with coverage of BBPLC matters within
concurrent meetings considered adequate.
Board Nominations Committee
The Board Nominations Committee is comprised solely of independent Non-Executive Directors. The Board Nominations Committee members are Nigel
Higgins, as Chairman of the BBPLC Board, along with Diane Schueneman and Mohamed A. El-Erian (appointed 1 September 2022). Tim Breedon and
Mike Ashley stepped down as members of the Board Nominations Committee with effect from 28 February 2022 and 1 September 2022, respectively.
The Committee is grateful to Tim and Mike for their valuable contributions to the Committee during their tenure.
In addition to scheduled meetings, the Board Nominations Committee also held two ad-hoc meetings during 2022. Attendance by the Board
Nominations Committee members is shown in the table below. Board Nominations Committee meetings were attended during the year by the Chief
Executive, the BPLC HR Director and the BBPLC HR Director, as appropriate.
Attendance at the Board Nominations Committee during 2022 was as follows:

Member | Meetings attended/eligible to attend | Effective Date
Nigel Higgins (Chair) | 5/5 | Appointed 1 March 2019
Mike Ashley | 3/3 | Stepped down 1 September 2022
Tim Breedon | 2/2 | Stepped down 28 February 2022
Mohamed A. El-Erian | 2/2 | Appointed 1 September 2022
Diane Schueneman | 5/5 | Appointed 25 September 2019

The principal role and responsibilities of the Board Nominations Committee, pursuant to its Terms of Reference, are:
▪considering appointments to the Board, its Committees and boards of BBPLC's significant subsidiaries
▪considering the composition of the Board and its Committees
▪considering succession planning and talent management
▪evaluating Board effectiveness
▪assessing the length of Directors’ tenure
▪considering Board induction and training
▪evaluating conflicts of interest
▪evaluating governance matters.
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 28

During 2022, the principal activities of the Committee included:
▪Reviewing and approving Board and Board Committee size, composition and succession planning, taking into account tenure, time commitment,
skills, knowledge, experience and diversity of the Directors, and identifying any desirable skills to aid the Company in operating and competing
effectively (and leading the search and recruitment process).
▪Receiving updates on the Company’s executive governance framework, talent and succession management, including Executive Committee
succession planning and reviewing and approving proposed changes to Executive Committee composition as detailed on page 33.
▪Continuing to support, alongside the Board, the Barclays Group’s Gender Ambition and Multicultural agenda, including Barclays' Race at Work
Ambitions. You can read more about Barclays' approach to DEI, including Barclays’ DEI vision and strategy and Global Race at Work Action Plan,
and data on gender and ethnic diversity, on pages 31 to 38 of the Our People and Culture section of the Barclays PLC Annual Report 2022 and in the
Barclays DEI report which will be made available on the Barclays website later in the year.
▪Reviewing and adopting a revised Board Diversity Policy on 15 December 2022, including adopting an increased gender diversity target to ensure
that, by 2025 (i) the proportion of women on the Board is at least 40% and (ii) at least one of the Chair, Chief Executive, Senior Independent
Director or Chief Financial Officer is held by a woman, and that this is to be maintained going forward, and an ethnic diversity target aligned with
the Parker Review on the ethnic diversity of UK Boards (at least one Board member to be from an ethnic minority background excluding white
ethnic groups, and this is maintained going forward). Please refer to page 34 for further information.
▪Receiving updates on succession planning for the Company's main subsidiary company boards.
▪Considering Director training and development.
▪Review of recommendations arising from the externally facilitated 2021 Board, Board Committee and individual Director effectiveness reviews
undertaken by Christopher Saul Associates (CSA), and overseeing the internally conducted 2022 Board, Board Committee and individual Director
effectiveness reviews. As reported in our 2021 Annual Report, CSA has no connection to the Barclays Group or any individual Director, save as
disclosed on page 166 of the Barclays PLC Annual Report 2022.
An internal review of the effectiveness of the Board Nominations Committee was undertaken in 2022. The results of the review confirm the Committee
is operating effectively. It is considered well constituted, providing an effective and appropriate level of challenge and oversight of the areas within its
remit. The Committee’s interaction with the Board, Board Committees and senior management is considered effective. Feedback indicated that
concurrent meetings of the BPLC and BBPLC Board Nominations Committee continue to be effective, with coverage of BBPLC matters within concurrent
meetings considered adequate.
Board Remuneration Committee
The Board Remuneration Committee is comprised solely of independent Non-Executive Directors. The Board Remuneration Committee is chaired by
Mary Francis with Dawn Fitzpatrick as the other member.
The principal role and responsibilities of the Board Remuneration Committee, pursuant to its Terms of Reference, are to:
▪adopt the over-arching principles of remuneration policy for the Barclays Bank Group within the parameters set by the BPLC Remuneration
Committee
▪consider and endorse the incentive pool for the Company and its subsidiaries and the remuneration of key BBPLC executives and other specified
individuals as determined by the Board Remuneration Committee from time to time
▪exercise oversight of remuneration issues within the Barclays Bank Group
▪approve the remuneration and compensation arrangement of employees that fall within the remit of the Board Remuneration Committee.
In addition to scheduled meetings, the Board Remuneration Committee also held two ad-hoc meetings during 2022. Attendance by the Board
Remuneration Committee members is shown in the table below. Board Remuneration Committee meetings are attended by management, including the
Chief Executive and the BPLC HR Director.
Attendance at the Board Remuneration Committee during 2022 was as follows:

Member | Meetings attended/eligible to attend | Effective Date
Mary Francis (Chair, effective 24 May 2021) | 6/6 | Appointed 25 September 2019
Dawn Fitzpatrick | 6/6 | Appointed 1 July 2021

During 2022, the principal activities of the Committee included:
▪Reviewing and adopting the Barclays Group People Risk Reward Policy and 2022 Incentive Funding Frameworks.
▪Reviewing the Remuneration Control Framework and the Committee's Terms of Reference.
▪Reviewing Fair Pay agenda and pay gaps, and ethnicity pay gaps reporting.
▪Endorsing the 2022 ex-ante risk adjustments.
▪Considering regular updates on stakeholders, regulatory and legal, financial and risk performance, pay round timings and approach.
▪Reviewing specific remuneration proposals for individuals within the Board Remuneration Committee’s remit.
An internal review of the effectiveness of the Board Remuneration Committee was undertaken in 2022. The results of the review confirm the Committee
is operating effectively. It is considered well constituted, providing an effective and appropriate level of challenge and oversight of the areas within its
remit. The Committee’s interaction with the Board, Board Committees and senior management is considered effective. Following the consolidation of
the membership of the Committee with the BPLC Board Remuneration Committee in September 2019 (with the exception of the BPLC Committee Chair,
who attends as an observer only for matters relating to BBPLC), coverage of BBPLC matters within aligned meetings was considered adequate.
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 29

Board Risk Committee
The Board Risk Committee is comprised solely of independent Non-Executive Directors with membership of the Committee broadly aligned with the
BPLC Board Risk Committee. The Board Risk Committee is chaired by Robert Berry. Mike Ashley, Mohamed A. El-Erian, Dawn Fitzpatrick and Diane
Schueneman are the other members of the Committee. In addition to scheduled meetings, the Board Risk Committee also held a number of ad-hoc
meetings during 2022. Tim Breedon stepped down as a member and Chair of the Committee with effect from 28 February 2022. Robert Berry joined the
Committee on 1 March 2022 as the Chair. Marc Moses joined the Committee as an additional member on 23 January 2023.
One of the key roles of the Board Risk Committee is to review and challenge the risk profile and risk appetite of the Barclays Bank Group and to consider
key risk issues and internal control and risk policies concerning the Barclays Bank Group. Board Risk Committee meetings are attended by management,
including the Chief Executive, Barclays Group Finance Director, Chief Financial Officer, BBPLC President, Barclays Group Chief Risk Officer, BBPLC Chief
Risk Officer, Barclays Group Chief Compliance Officer, BBPLC Chief Compliance Officer, Barclays Group Chief Internal Auditor, Barclays Group General
Counsel, as appropriate, and the Company’s statutory auditors, KPMG.
In addition to scheduled meetings, the Board Risk Committee also held three ad-hoc meetings during 2022. Attendance by the Board Risk Committee
members is shown in the table below. Owing to prior commitments, Mohamed A. El-Erian was unable to attend one scheduled meeting and two ad-hoc
meetings, and Diane Schueneman was unable to attend three scheduled meetings and one ad-hoc meeting.
Attendance at the Board Risk Committee during 2022 was as follows:

Member | Meetings attended/eligible to attend | Effective Date
Robert Berry (Chair) | 11/11 | Appointed 1 March 2022
Tim Breedon | 2/2 | Stepped down 28 February 2022
Mike Ashley | 12/12 | Appointed 25 September 2019
Mohamed El-Erian | 9/12 | Appointed 1 July 2020
Dawn Fitzpatrick | 12/12 | Appointed 1 January 2020
Diane Schueneman | 8/12 | Appointed 25 September 2019

The principal role and responsibilities of the Board Risk Committee, pursuant to its Terms of Reference, are to:
▪review, on behalf of the Board, the management of the P rincipal Risks as set out in the ERMF with the exception of Reputation R isk which is a
matter reserved to the Board
▪consider and recommend to the Board, within the risk parameters set by the Risk Committee, the Company’s risk appetite and tolerance for those
Principal Risks
▪review, on behalf of the Board, the Barclays Bank Group’s risk profile for those Principal Risks
▪commission, receive and consider reports on key risk issues.
During 2022, the principal activities of the Board Risk Committee included:
▪Advising the Board on the appropriate risk appetite and risk tolerance for the Barclays Bank Group in respect of the Principal Risks in the ERMF
when determining strategy, including recommending to the Board for approval the proposed overall risk appetite statement for the Company;
reviewing and/or approving (as appropriate) risk limits throughout the year.
▪Reviewing reports on key themes arising from the current and prospective macroeconomic, geopolitical, macro-prudential and financial
environment and their impact on the Company’s risk appetite and risk profile.
▪Reviewing updates on Credit and Market risk including within the CIB, with particular consideration given to structured lending and finance and
leveraged finance portfolios, including management's actions to manage the size of these portfolios in light of the deterioration in market
conditions.
▪Considering Climate risk, as a new Principal Risk with effect from 1 January 2022, and receiving regular reporting on a reas of elevated Climate risk
and progress against sector targets in the form of a Climate Risk Dashboard.
▪Considering updates on the Over-issuance of Securities, including the hedging arrangements designed to manage the risks to Barclays arising out of
the rescission offer.
▪Considering and approving the Company’s internal stress test themes and the results of internal stress testing.
▪Monitoring the capital, liquidity and financial resources of BBPLC to ensure it meets its regulatory requirements and obligations, taking into account
potential impacts of the increased cost of living, geopolitical tensions, and other macroeconomic factors.
▪Reviewing and considering the operational risks arising from the Company’s procedures, processes, systems and policies.
▪Overseeing the management of Conduct r isk within BBPLC, and the performance of the Compliance function.
▪Overseeing the Company’s regulatory requirements, as they relate to risk management, including regulatory and internal capital and funding
requirements, approving the Company’s Internal Capital Adequacy Assessment Process and Internal Liquidity Adequacy Assessment Process.
▪Reviewing the frameworks, policies and resources in place to support effective risk management and oversight of the Barclays Bank Group.
▪Advising the Board Remuneration Committee when making remuneration adjustment decisions for 2022.
▪Discussing reports on key risk areas specific to the Barclays Bank Group which were provided to the Board Risk Committee throughout the year
including, amongst others, reports on US consumer credit weakness, actions taken by c entral banks to combat high and increasingly persistent
inflation, weakening economic conditions and deteriorating consumer confidence, financial markets remaining volatile and the growth of digital
currencies.
The Board Risk Committee continually considers the impact of issues on the Barclays Bank Group and the risk environment in which it operates. It
reviews steps taken by the business to manage exposures in this context. The Committee also received focused presentations on a number of areas
specific to the business and activities of Barclays Bank Group (including through joint presentations with the BPLC Board Risk Committee), including a
briefing on the financial and operational risks of climate change.
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 30

An internal review of the effectiveness of the Board Risk Committee was undertaken in 2022. The results of the review confirm the Committee is
operating effectively. It is considered well constituted, providing an effective and appropriate level of challenge and oversight of the areas within its
remit. The review concluded that the Committee’s interaction with the Board, Board Committees and senior management is considered effective.
Feedback indicated that concurrent meetings of the BPLC and BBPLC Board Risk Committee continue to be effective, with coverage of BBPLC matters
within concurrent meetings considered adequate.
Charter of Expectations
The Barclays Charter of Expectations sets out the individual role profiles, required behaviours and competencies for the Chair, Non-Executive Directors,
Executive Directors and Committee Chairs. Non-Executive Directors provide effective oversight, strategic guidance and constructive challenge, whilst
holding the Executive Directors to account against their agreed performance objectives, as outlined in the Charter of Expectations; a copy of which can
be found at home.barclays/who-we-are/ourgovernance/board-responsibilities.
Appointment and retirement of Directors
The appointment and retirement of Directors is governed by the Articles, the Companies Act 2006 (the Act) and related legislation.
The Articles may be amended only by a special resolution of the shareholders. The Board has the power to appoint additional Directors or to fill a casual
vacancy amongst the Directors and any Director so appointed holds office only until the next AGM where they may offer themselves for re-election. As
both Marc Moses and (on her appointment on 1 April 2023) Julia Wilson have been appointed since the 2022 AGM, both will offer themselves for re-
election at the 2023 AGM.
All appointments to the Board and senior management are viewed through a diversity lens and are based on merit and objective criteria, which focus on
the skills, experience and knowledge required for the Board’s effectiveness and to support the continued delivery of the Company’s strategy. Board
appointments are made following a formal, rigorous and transparent procedure, facilitated by the Board Nominations Committee, with the aid of
external search consultancy firms. You can read more about the work of th e Board Nominations Committee on pages 28 to 29.
DEI across the Barclays Group remains a key area of focus. For more detail on the Barclays Group's actions to increase DEI please see page 14 and the
Our people and culture section on pages 31 to 38 of the Barclays PLC Annual Report 2022.
The Board Nominations Committee regularly reviews the composition of the Board, Board Committees and Executive Committee and the core skills,
experience, knowledge and diversity required. For the Board, it is standard practice to appoint any new Non-Executive Director or Chair for an initial
three-year term, which may be extended for up to a further three-year term. As such, Non-Executive Directors typically serve up to a minimum of six
years, although this period may be extended where considered appropriate by the Board Nominations Committee.
Effectiveness
The Company considers the composition of the principal Board Committees to meet the independence criteria of the Code, notwithstanding that the
Company has chosen not to adopt and report against the Code, as stated above, and there is appropriate cross-membership on the Board Committees
to further promote effectiveness.
All Directors are expected to commit sufficient time to fulfil their duties, including attending and preparing for formal Board and Board Committee
meetings, as well as allowing time to understand the business and complete training. Barclays' Charter of Expectations sets out the Chair's
responsibilities for ensuring Directors receive all information in an accurate, timely and clear form that is relevant to discharge their obligations.
An effectiveness review of the Board, Board Co mmittees and individual Directors for 2022 was conducted internally. Feedback from the Board
effectiveness review indicated that the Board is operating well and effectively, with Board members commenting favourably on the open and
collaborative culture of the Board. The review indicated that Board composition is considered to be a strength, bringing together a range of diverse and
complementary backgrounds and expertise. The review highlighted an appropriate level of support and challenge to management.
Feedback from the effectiveness reviews of each Board Committee can be found in their respective reports elsewhere in this report.
The Board is responsible for setting the Barclays Bank Group risk appetite within the overall parameters set by the Barclays Group, being the level of risk
it is prepared to accept in the context of achieving the Barclays Group's strategic objectives. The ERMF is designed to identify and set the minimum
requirements in respect of the main risks to achieving Barclays’ strategic objectives.
The Board, assisted by the Board Risk Committee, conducts robust assessments of the Principal Risks facing the Barclays Bank Group, including those
that would threaten its business model, future performance, solvency or liquidity.
The Board Audit Committee oversees the effectiveness of BBPLC's internal and statutory auditors. The Directors also review the effectiveness of the
Barclays Bank Group’s systems of internal control and risk management.
The Board has put in place processes to support the presentation to stakeholders of fair, balanced and understandable information.
Remuneration
The Board Remuneration Committee reviews and adopts the Barclays Group’s Remuneration Policy for use in the Barclays Bank Group. The purpose
and activities of this Committee are contained in the Board Remuneration Committee report on page 29 of this report.
The Board has delegated responsibility to the Board Remuneration Committee for the consideration and approval of the remuneration arrangements of
the Chair, Executive Directors, other senior executives and certain Barclays Bank Group employees. The Board Remuneration Committee, when
considering the remuneration policies and practices, seeks to ensure that it supports the Company’s strategy and promotes the long-term success of
the Company and that it is aligned to successful delivery of the Barclays Group’s strategy. All executive and senior management remuneration policies
are developed only in accordance with the Barclays Group’s formal and transparent procedures (ensuring that no Director is involved in deciding his/her
own remuneration outcome) and having regard to wider workforce remuneration and related policies and the alignment of incentives and rewards with
culture. All Board Remuneration Committee members are expected to demonstrate independent judgement and discretion when determining and
approving remuneration outcomes. The Board as a whole, with the Non-Executive Directors abstaining, considers annually the fees paid to Non-
Executive Directors.
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 31

Audit, Risk and Internal Control
The Board, together with the Board Audit Committee, is responsible for ensuring the independence and effectiveness of the internal and external audit
functions. For this reason, the Board Audit Committee members met regularly with both the Barclays Group Chief Internal Auditor and the BBPLC Chief
Internal Auditor and the lead audit engagement Partner of the statutory auditor without management present. Further details of the work of the Board
Audit Committee can be found on pages 27 to 28 of this report.
The Company is committed to operating within a strong system of internal control that enables business to be transacted and risk taken without
exposure to unacceptable potential losses or reputational damage.
As referenced above, the Board is responsible for ensuring that management maintains an effective system of risk management and internal control
and for assessing its effectiveness. Such a system is designed to identify, evaluate and manage, rather than eliminate, the risk of failure to achieve
business objectives and can only provide reasonable, and not absolute, assurance against material misstatement or loss.
Processes are in place for identifying, evaluating and managing the Principal Risks facing the Company. A key component of the framework is the ERMF
which supports the business in its aim to embed effective risk management and a strong risk management culture. The ERMF is designed to identify
and set minimum requirements, in respect of the main risks, to achieve the Company’s strategic objectives and to provide reasonable assurance that
internal controls are effective. The Board Risk Committee reviews annually the Principal Risks and as appropriate makes recommendations to the Board
for updating of the relevant BBPLC elements of the BPLC Group ERMF. Further detail on the Principal Risks and management of them can be found in
the managing risk section of the Strategic Report on pages 8 to 9.
The effectiveness of the risk management and internal control systems is reviewed regularly by the Board Risk Committee and the Board Audit
Committee (as detailed above).
The Board Risk Committee is responsible for providing oversight and advice to the Board in relation to current and potential future risk exposures,
examining reports covering the Principal Risks including those that would threaten its business model, future performance, solvency or liquidity, as well
as reports on risk measurement methodologies and risk appetite. Further detail of the work of the Board Risk Committee can be found on pages 30 to
31 of this report.
As referenced above, the Board Audit Committee carries out several duties, delegated to it by the Board, including oversight of financial reporting
processes, reviewing the effectiveness of internal controls, considering whistleblowing arrangements and oversight of the work of the external and
internal auditors. It has concluded that, save for the material weakness relating to the Over-issuance of Securities, throughout the year ended
31 December 2022 and to the date of this report, the Barclays Bank Group has operated an effective system of internal control that provides reasonable
assurance of financial and operational controls and compliance with laws and regulations.
Whist the control environment was determined to be effective, the Over-issuance of Securities underlined to the Board the need to continue to focus on
embedding Barclays' Values and Mindset at all levels of the Barclays Bank Group to achieve operational and controls excellence. The Board has therefore
supported the creation of a Barclays Group-wide programme, established by the Group Chief Executive. This programme will seek to identify issues and
lessons learned across the Barclays Group's remediation initiatives to help ensure that the Barclays Bank Group is consistently excellent, in customer and
client service, in operational capability and in financial performance, with all activities underpinned by a strong risk management culture.
Further information in relation to controls over financial reporting, including the remediation of material weakness relating to the Over-issuance of
Securities, is contained in the next section.
Controls over financial reporting
A framework of disclosure controls and procedures is in place to support the approval of the financial statements of the Barclays Bank Group.
Specific governance committees are responsible for examining the financial reports and disclosures to help ensure that they have been subject to
adequate verification and comply with applicable standards and legislation.
Where appropriate, these committees report their conclusions to the Board Audit Committee, which debates such conclusions and provides further
challenge. Finally, the Board scrutinises and approves results announcements and the Annual Report to ensure that appropriate disclosures have been
made. This governance process is designed to ensure that both management and the Board are given sufficient opportunity to debate and challenge the
financial statements of the Barclays Bank Group and other significant disclosures before they are made public.
Management's report on internal control over financial reporting
Management is responsible for establishing and maintaining adequate internal controls over financial reporting under the supervision of the principal
executive and financial officers, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements, in accordance with (a) UK-adopted international accounting standards; (b) International Financial Reporting Standards (IFRS) as issued by
the International Accounting Standards Board (IASB), including interpretations issued by the IFRS Interpretations Committee; and (c) IFRS adopted
pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union.
Internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail:
▪accurately and fairly reflect transactions and dispositions of assets
▪provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with UK-
adopted international accounting standards and IFRS and that receipts and expenditures are being made only in accordance with authorisations of
management and the respective Directors
▪provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use or disposition of assets that could have a
material effect on the financial statements.
Internal control systems, no matter how well designed, have inherent limitations and may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that internal controls over financial reporting may become inadequate because of
changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 32

Management has assessed internal control over financial reporting as at 31 December 2022. In making its assessment, management utilised the criteria
set out in the 2013 COSO framework. Management has specifically assessed the controls put in place to address the material weakness in internal
control over financial reporting relating to the Over-issuance of Securities, as further discussed below. Management has concluded that, based on its
assessment, internal control over financial reporting was effective as at 31 December 2022.
The system of internal financial and operational controls is also subject to regulatory oversight in the UK and overseas. Further information on
supervision by the financial services regulators is provided under Supervision and Regulation in the Risk review section on pages 136 to 143.
Identification and Remediation of a Material Weakness
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable
possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.
In March 2022, the Company’s management became aware that BBPLC had issued securities materially in excess of the amount BBPLC had registered
with the SEC under its 2019 US shelf registration statement and subsequently became aware that securities had also been issued in excess of the set
amount under the predecessor US shelf registration statement. A proportion of the costs associated with the impact of the Over-issuance of Securities
was attributable to the Company’s financial statements for the year ended 31 December 2021. Accordingly, in the UK, the Company has restated the
prior period comparatives in this 2022 Annual Report and Accounts to reflect the impact of the Over-issuance of Securities. In the US, the Company
amended its annual report on Form 20-F for the year ended 31 December 2021 to include restated financial statements to reflect the impact of the
Over-issuance of Securities.
The fact that the Over-issuance of Securities occurred and was not immediately identified highlighted a weakness in controls over the identification of
external regulatory limits related to securities issuance and monitoring against these limits that constituted a material weakness in internal control over
financial reporting under “COSO Principle 9: Identifies and Analyses Significant Change - The organisation identifies and assesses changes that could
significantly impact the system of internal control”.
Since the identification of this material weakness, management has strengthened the internal controls relating to the tracking of issuance programme
limits through the implementation and strengthening of a series of controls across the Barclays Group, together with central governance, with key
actions being:
•development of a Group Issuance Standard, which includes minimum control requirements
•documentation of and agreement on roles and responsibilities
•implementation of a Group Issuance Oversight Committee, with senior management representation, to monitor issuance activity against agreed
limits
The strengthened controls over financial reporting have operated for a sufficient period of time and management has concluded, through testing, that
these controls are operating effectively.
Changes in internal control over financial reporting
As noted above, management has strengthened and effectively operated controls to remediate the material weakness in respect of the Over-issuance of
Securities which was identified in March 2022. These remediation efforts represent a significant improvement to the Company’s internal control
environment.
There have been no other changes to highlight during the period covered by this report, which have materially affected or are reasonably likely to
materially affect the Barclays Bank Group’s internal control over financial reporting.
Executive Committee
During 2022, the Executive Committee membership included the Chief Executive, the Global Head of the CIB and President of BBPLC, the Co-Heads of
Global Markets, the Co-Heads of Investment Banking, the Head of Consumer Banking and Payments, the Chief Financial Officer, Chief Risk Officer and
other functional partners.
In 2022, David Farrow, Interim Head of Corporate Banking and Abib Bocresion, Chief Risk Officer, BBPLC stepped down from the Executive Committee,
while we welcomed both Alexander Andreadis as Chief Compliance Officer, CIB and BBPLC in March 2022, and David Head as Interim Chief Risk Officer
of BBPLC in October 2022.
In January 2023, Bevan Cowie joined the Executive Committee as Chief Risk Officer of BBPLC (subject to regulatory approval), and in February 2023, we
welcomed Vim Maru as Global Head of Consumer Banking and Payments (subject to regulatory approval), replacing Alistair Currie who stepped down
from the Executive Committee in February 2023.
The Executive Committee meets quarterly and is chaired by the Global Head of the CIB and President of BBPLC. In addition to the day-to-day
management of the Company, the Executive Committee supports the Chief Executive in ensuring that the Barclays values, strategy and culture align, are
implemented and are communicated consistently to colleagues - for example, through regular leadership team conferences, and communications that
are available to all colleagues.
Non-Executive Directors' time commitment and conflicts of interest
Non-Executive Directors, including the Chair, are informed of the minimum time commitment prior to their appointment and they are required to
devote sufficient time to the Company to discharge their responsibilities effectively.
The time commitments of Directors are considered prior to appointment and are monitored by the Board Nominations Committee. All Directors must
seek approval (providing an indication of expected time commitments) before accepting any significant new commitments outside of Barclays. The
Board is satisfied that there are no Directors whose time commitment is considered to be a matter for concern. The Company Secretary maintains a
record of each Director's time commitments.
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 33

In accordance with the Act and the Articles, the Board has authority to authorise conflicts of interest, and this ensures that the influence of third parties
does not compromise or override the independent judgement of the Board. The Company Secretary maintains a conflicts register, which is a record of
actual and potential conflicts, together with any Board authorisation of the conflict.
Training and induction
Directors are regularly provided with the opportunity to take part in ongoing training and development and can also request specific training they may
consider necessary or useful. In 2022, training and development was supported through briefings for Board members on key 'horizontal topics', and
business and function reviews. The Board also received an annual briefing on regulatory responsibilities including the Senior Managers Regime and on
Barclays’ conduct and financial crime policies and standards. In addition, the Board received updates on Public Policy and Corporate Responsibility
matters and developments in corporate governance, and a briefing on competition law-related matters.
On appointment, all Directors receive a comprehensive induction tailored to their individual requirements, designed to provide them with an
understanding of how the Barclays Bank Group works and the key issues that the Company and the Barclays Bank Group face. When a Director joins a
Board Committee, the schedule also includes an induction to the operation of that Board Committee.
Diversity, equity and inclusion
Promoting and delivering diversity – which includes but is not limited to skills, regional and industry experience, social and ethnic background, race,
gender and other distinctions such as cognitive and personal strengths – is a vital element of the Board Nominations Committee’s role in leading
appointments and succession planning for the Board, Board Committees and the Executive Committee. Both the Board Nominations Committee and the
Board consider diversity essential to maintaining a competitive advantage, driving effective governance and mitigating the risk of ‘group think’. With this
in mind, the Board adopted a revised version of the Board Diversity Policy on 15 December 2022, including adopting an increased gender diversity
target and including an ethnic diversity target as detailed on page 29.
Further to the appointment of Robert Berry on 8 February 2022, the retirement of Tim Breedon on 28 February 2022, the appointments of Anna Cross
on 23 April 2022 and Marc Moses on 23 January 2023, an d as at the date of this report, BBPLC Board gender diversity stands at 40% female (with four
female directors on the Board), meeting the Board target of 40% gender diversity. The Company also satisfies the Board's target of having at least one
Board member who is from an ethnic minority background (excluding white ethnic groups).
In addition, the Company recognises that being a diverse and inclusive company is an integral part of our success. The Barclays Group’s DEI vision and
strategy, which was refreshed in 2022, includes a series of guiding principles and strategic priorities designed to help it deliver against its six core DEI
agendas: Disability, Gender, LGBT+, Multicultural, Multigenerational, and Socio-economic, in support of that ambition. Further information on the Board
Diversity Policy, as adopted by the Board, and DEI strategy can be found on pages 31 to 38 and 161 and 162 of the Barclays PLC Annual Report 2022.
Governance
Corporate Governance Statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 34

The Directors present their report together with the audited accounts for the Company for the year ended 31 December 2022.
Section 414A of the Act requires the Directors to present a Strategic Report in the Annual Report. The report can be found on page s 1 to 18.
BBPLC has addressed the Non-Financial Reporting requirements contained in sections 414CA and 414CB of the Act through the disclosure contained in
the Barclays PLC Annual Report 2022 on pag es 60 to 62. I n addition, the Company has chosen, in accordance with section 414C(11) of the Act, and as
noted in this Directors’ Report, to include certain matters in its Strategic Report that would otherwise be disclosed in this Directors’ Report.
The particulars of important events affecting the Company since the financial year-end can be found in the notes to the financial statements. An
indication of likely future developments can be found in the Strategic Report.
Other information that is relevant to the Directors’ Report, and which is incorporated by reference into this report, can be located at:

| Pages
Performance measures | 5 to 7
Corporate Governance Statement | 22 to 34
Risk Management | 41 to 42
Principal Risks | 9, 41, 56 to 65
Disclosures required pursuant to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 as updated by the 2018 Regulations can be found on the following pages: |
Engagement with employees (Sch.7 Para 11 and 11A Regs 2008/2018 and Section 172(1) Statement) | 16 to 17
Policy concerning the employment of disabled persons (Sch.7 Para 10 Regs 2008) | 14
Financial Instruments (Sch.7 Para 6 Regs 2008) | 200
Hedge accounting policy (Sch.7 Para 6 Regs 2008) | 200

Profits and dividends
The results of the Barclays Bank Group show statutory profit after tax of £4,382m (2021: £4,588m). The Barclays Bank Group had net assets of
£58,953 m as at 31 December 2022 (2021: £56,317 m).
The Company will pay a £700m dividend to its parent, BPLC.
Dividends paid on preference shares for the year ended 31 December 2022 amounted to £31m (2021: £27m).
Further details on dividends on ordinary shares and preference shares paid in 2022 are set out in Note 10 to the financial statements.
Share Capital
There was no increase in ordinary share capital during the year. BPLC owns 100% of the issued ordinary shares. There are no restrictions on the transfer
of ordinary shares or agreements between holders of ordinary shares known to the Company which may result in restrictions on the transfer of
securities or voting rights. Further information on the Company’s share capital, including preference shares, can be found in Not e 27 of the financial
statements.
Powers of Directors to issue and allot or buy back the Company’s shares
The powers of the Directors are determined by the Act and the Articles. No shares were issued or bought back in 2022. The Directors are authorised to
issue and allot shares and to buy back shares subject to annual shareholder approval at the AGM. Such authorities were granted by shareholders at the
2 022 AGM. It will be proposed at the 2023 AGM that the Directors be granted new authorities to allot and buy back shares.
Repurchase of preference shares
1,000 Sterling Cumulative preference shares of £1 each were redeemed by the Company on 9 September 2022.
Directors
The list of current Directors of the Company can be found in the Corporate Governance Statement on page 2 5. Changes to Directors during 2022 and
up to the date of signing this report are set out below.

Name | Role | Effective date
Robert Berry | Non-Executive Director | Appointed 8 February 2022
Tim Breedon | Non-Executive Director | Resigned 28 February 2022
Anna Cross | Executive Director | Appointed 23 April 2022
Tushar Morzaria | Executive Director | Resigned 22 April 2022
Marc Moses | Non-Executive Director | Appointed 23 January 2023

Directors’ indemnities
Qualifying third party indemnity provisions (as defined by section 234 of the Act) were in force during the course of the financial year ended
31 December 2022 for the benefit of the then Directors of the Company and the then Directors of certain of the Company's subsidiaries and, at the date
Governance Report
Directors’ report

home.barclays/annualreport | Barclays Bank PLC Annual Report | 35

of this report, are in force for the benefit of the Directors of the Company and the Directors of certain of the Company's subsidiaries in relation to certain
losses and liabilities which they may incur (or have incurred) in connection with their duties, powers or office. The Barclays Group also maintains
Directors’ & Officers’ Liability Insurance which gives appropriate cover for legal action brought against its Directors.
Qualifying pension scheme indemnity provisions (as defined by section 235 of the Act) were in force during the course of the financial year ended
31 December 2022 for the benefit of the then directors and, at the date of this report are in force for the benefit of directors of Barclays Pension Funds
Trustees Limited as trustee of the Barclays Bank UK Retirement Fund, and Barclays Executive Schemes Trustees Limited as Trustee of Barclays Capital
International Pension Scheme (No.1) and Barclays PLC Funded Unapproved Retirement Benefits Scheme. The directors of the trustees are indemnified
against liability incurred in connection with the trustee’s activities in relation to the aforementioned schemes.
Political donations
The Barclays Bank Group did not give any money for political purposes in the UK or outside the UK, nor did it make any political donations to political
parties or other political organisations or to any independent election candidates, or incur any political expenditure during the year. Details of any
political contributions made by the wider Barclays Group can be found in the Barclays PLC Annual Report 2022.
Environment
As part of the overall strategy of the Barclays Group, the Barclays Bank Group is determined to play its part in supporting the transition to a low-carbon
economy. In March 2020, the Barclays Group announced its ambition to be a net zero bank by 2050. Our climate strategy is driven by considerations of
all relevant risks as well as our Purpose to deploy finance responsibly to support people and businesses, acting with empathy and integrity, championing
innovation and sustainability, for the common good and the long term.
We have a three-part strategy to turn that ambition into action:
1.Achieving net zero operations - Barclays is working to reduce its Scope 1, Scope 2 and Scope 3 operational emissions consistent with a 1.5°C
aligned pathway and counterbalance any residual emissions.
2.Reducing our financed emissions - Barclays is committed to aligning its financing with the goals and timelines of the Paris Agreement,
consistent with limiting the increase in global temperatures to 1.5°C.
3.Financing the transition - Barclays is helping to provide the green and sustainable finance required to transform the economies, customers
and clients we serve.
Please see the Barclays PLC 2022 Annual Report for further detail on the above.
Our strategy is underpinned by the way we assess and manage our exposure to climate-related risks. Climate risk became a Principal Risk under
Barclays’ ERMF in January 2022.
Scenario analysis forms a key part of the Barclays Group's, and therefore the Barclays Bank Group’s, approach to assessing and quantifying the impact
of climate change. We have developed our approach to scenario analysis through detailed quantitative and qualitative risk assessments of particular
portfolios and activities. Since 2018, Barclays has progressively enhanced its scenario analysis capabilities, developing-in house methodologies,
collaborating with external subject matter experts, and participating in regulatory exercises. The Barclays Group has developed key metrics and targets
to track progress against its climate strategy. Please see the Barclays PLC 2022 Annual Report for further details on scenario analysis and key metrics.
Engagement with customers, suppliers and others in a business relationship with the Company
Barclays must effectively manage, monitor and mitigate risks in our supply chain. The Directors, via management, have regard to the need to foster
business relationships with suppliers. Our suppliers act on behalf of Barclays and we expect them to make responsible decisions that take our
stakeholders’ needs into account in both the short and long-term. Suppliers that are assessed as being at a heightened risk from a business risk
perspective are subject to Barclays’ Supplier Control Obligations (SCOs). These suppliers are required to complete a pre-contractual questionnaire and
annual self-certification which captures their adherence to the SCOs and Barclays’ Third Party Code of Conduct (TPCoC). The TPCoC encourages our
suppliers to adopt our approach to doing business when acting on behalf of Barclays and details our expectations for matters including environmental
management, human rights, diversity and inclusion and also for living the Barclays Values. Barclays is proud to be a signatory of the Prompt Payment
Code in the UK. Further information on ‘Supporting our supply chain’ is set out in the Barclays PLC 2022 Annual Report
Branches and Country-by-Country reporting
The Barclays Bank Group operates through branches, offices and subsidiaries in the UK and overseas. Those branches are in a number of different
jurisdictions including in Hong Kong, Singapore and New York. The Company is exempt from publishing information required by t he Capital
Requirements (Country-by-Country Reporting) Regulations 2013 as this information is published by its parent, BPLC. This information is available on the
Barclays website: home.barclays/annualreport.
Research and development
In the ordinary course of business, the Barclays Bank Group develops new products and services in each of its business divisions.
Change of control
There are no significant agreements to which the Company is a party that take effect, alter or terminate on a change of control of the Company
following a takeover bid.
There are no agreements between the Company and its Directors or employees providing for compensation for loss of office or employment that occurs
because of a takeover bid.
The Auditors
The BPLC Board Audit Committee reviews the appointment of the statutory auditors, as well as their relationship with the Barclays Group, including
monitoring the Barclays Group’s use of the statutory auditors for non-audit services and the balance of audit and non-audit fees paid to them. The
BBPLC Board Audit Committee also monitors the use of the statutory auditors for non-audit services within the Barclays Bank Group.
An external audit tender was conducted in 2015 and the decision was made to appoint KPMG as Barclays Group’s statutory auditor with effect from the
2017 financial year, with PwC resigning as Barclays Group’s statutory auditor at the conclusion of the 2016 audit.
Governance Report
Directors’ report

home.barclays/annualreport | Barclays Bank PLC Annual Report | 36

The Company is in compliance with the requirements of T he Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of
Competitive Tender Processes and Audit Committee Responsibilities) Order 2014, which relates to the frequency and governance of tenders for the
appointment of the statutory auditor and the setting of a policy on the provision of non-audit services.
Provided that KPMG continues to maintain its independence and objectivity, and the BPLC Board Audit Committee remains satisfied with its
performance, the Barclays Group has no intention of tendering for an alternative statutory auditor before the end of the current required period of 10
years. Accordingly, any tender would be in respect of the 2027 financial year onwards and is likely to take place in 2025. The BPLC Audit Committee
believes it would not be appropriate to tender before this date as it recognises that whilst it is important to ensure the audit firm remains objective and
does not become overly familiar with management, there is an important balance to be struck with the investment of time required both from
management and any completely new audit team for them to gain sufficient understanding of a large complex organisation as Barclays to ensure a top
quality audit. Further, there has been significant turnover of the senior members of the KPMG audit team since 2017, which supports in reducing any
potential familiarisation threat.
Non-audit services
In order to safeguard the statutory auditor’s independence and objectivity, the Barclays Group has in place a policy on the Provision of Services by the
Barclays Group Statutory Auditor (the Policy) setting out the circumstances in which the statutory auditor may be engaged to provide services other
than those covered by the Barclays Group audit. The Policy applies to all Barclays subsidiaries and other material entities over which Barclays has
significant influence. The core principle of the Policy is that non-audit services (other than those legally required to be carried out by the Barclays
Group’s auditor) should be performed by the statutory auditor only in certain controlled circumstances. The Policy sets out those types of services that
are permitted.
Under the Policy, except for specific categories of ‘permitted’ services that require explicit Board Audit Committee approval, the BPLC Board A udit
Committee has pre-approved all permitted services for which fees are less than £100,000. All requests to engage the statutory auditor are assessed by
independent management before work can commence. Requests for permitted service types in respect of which the fees are expected to meet or
exceed the above threshold, but expected to be less than £250,000, must be approved by the Chair of the BPLC Board Audit Committee before work is
permitted to begin. Services where the fees are expected to be £250,000 or higher must be approved by the BPLC Board Audit Committee as a whole.
All expenses and disbursements must be included in the fees calculation. More information on this can be found in the Barclays PLC Annual Report
2022.
The Audit Committee considered KPMG’s independence in particular as regards to the breach of the UK ethical requirements referred to in their audit
report. The Audit Committee agrees with KPMG's assessment that this does not impair their integrity and objectivity.
The fees payable to KPMG for the year ended 31 December 2022 amounted to £47 m (2021: £41 m), of which £9m (2021: £8 m) was payable in respect
of non-audit services. A breakdown of the fees payable to the auditor for statutory audit and non-audit work can be found in Note 39 to the financial
statements.
Disclosure of information to the Auditor
Each Director confirms that, so far as he/she is aware, there is no relevant audit information of which the Company’s auditor is unaware and that each
of the Directors has taken all the steps that he/she ought to have taken as a Director to make himself/herself aware of any relevant audit information
and to establish that the Company's auditor is aware of that information. This confirmation is given pursuant to section 418 of the Act and should be
interpreted in accordance with and subject to those provisions.
Directors’ responsibilities
The following statements, which should be read in conjunction with the auditor’s report set out on pages 145 to 165, are made with a view to
distinguishing for shareholders the respective responsibilities of the Directors and of the auditor in relation to the accounts.
Going concern
In preparing each of the Barclays Bank Group and Company financial statements, the Directors are required to:
•assess the Barclays Bank Group's and Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern;
and
•use the going concern basis of accounting unless they either intend to liquidate the Barclays Bank Group and the Company or to cease operations,
or have no realistic alternative but to do so.
The Barclays Bank Group’s business activities, financial position, capital, factors likely to affect its future development and performance, and its
objectives and policies in managing the financial risks to which it is exposed are discussed in the Strategic Report and Risk review sections of this report.
The Directors have evaluated these risks in the preparation of the financial statements and consider it appropriate to prepare the financial statements on
a going concern basis.
Preparation of accounts
The Directors are required by the Act to prepare the Company and the Barclays Bank Group accounts for each financial year and, with regard to Barclays
Bank Group accounts, in accordance with UK-adopted international accounting standards. The Directors have prepared these accounts in accordance
with (a) UK-adopted international accounting standards; (b) IFRS as issued by the IASB, including interpretations issued by the IFRS Interpretations
Committee; and (c) IFRS adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. Pursuant to the Act, the Directors
must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the Barclays Bank Group and the
Company and of their profit or loss for that period.
The Directors consider that, in preparing the financial statements, the Barclays Bank Group and the Company have used appropriate accounting
policies, supported by reasonable judgements and estimates, and that all accounting standards which they consider to be applicable have been
followed.
The Directors are satisfied that the Annual Report and Financial Statements, taken as a whole, are fair, balanced and understandable, and provide the
information necessary for shareholders to assess the Company’s position and performance, business model and strategy.
Governance Report
Directors’ report

home.barclays/annualreport | Barclays Bank PLC Annual Report | 37

Directors are responsible for such internal controls as they determine are necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
Directors’ responsibility statement
The Directors have responsibility for ensuring that the Company and the Barclays Bank Group keep accounting records which disclose, with reasonable
accuracy, the financial position of the Company and the Barclays Bank Group, and which enable them to ensure that the accounts comply with the Act.
The Directors are also responsible for preparing a Strategic Report, Directors’ Report and Corporate Governance Statement in accordance with
applicable law and regulations.
The Directors are responsible for the maintenance and integrity of the Annual Report and Financial Statements as they appear on the Barclays website.
Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Directors have a general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent
and detect fraud and other irregularities.
The Directors are responsible for preparing the financial statements in accordance with Commission Delegated Regulation (EU) 2019/815 with regard
to regulatory technical standards on the specification of a single electronic reporting format.
The current Directors, whose names and functions are set out on page 2 5, confirm to the best of their knowledge that:
(a)the financial statements, prepared in accordance with (a) UK-adopted international accounting standards; (b) IFRS as issued by the IASB, including
interpretations issued by the IFRS Interpretations Committee; and (c) IFRS adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the
European Union, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included
in the consolidation taken as a whole; and
(b)the management report, on pages 1 to 18, which is incorporated in the Directors’ Report, includes a fair review of the development and
performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face.
By order of the Board
Stephen Shapiro
Company Secretary
14 February 2023
Barclays Bank PLC
Registered in England. Company No. 1026167
Registered office, 1 Churchill Place, London E14 5HP
Governance Report
Directors’ report

home.barclays/annualreport | Barclays Bank PLC Annual Report | 38

The management of risk is a critical underpinning to the execution of the Barclays Bank Group’s strategy. The material risks and uncertainties the
Barclays Bank Group faces across its business and portfolios are key areas of management focus.

Risk management strategy |  | Page
Overview of the Barclays Bank Group’s approach to risk management. | ▪Enterprise Risk Management Framework (ERMF) | 41
▪Segregation of duties – the “Three Lines of Defence” model | 41
▪Principal risks | 41
▪Risk appetite | 41
▪Risk Committees | 41
▪Barclays’ risk culture | 42
Material existing and emerging risks |  |
Insight into the level of risk across our business and portfolios, the material existing and emerging risks and uncertainties we face and the key areas of management focus. | ▪Material existing and emerging risks potentially impacting more than one principal risk | 43
▪Climate risk | 48
▪Credit risk | 48
▪Market risk | 49
▪Treasury and capital risk | 50
▪Operational risk | 51
▪Model risk | 53
▪Conduct risk | 53
▪Reputation risk | 54
| ▪Legal risk and legal, competition and regulatory matters | 55
Principal risk management |  |
The Barclays Bank Group’s approach to risk management for each principal risk with focus on organisation and structure and roles and responsibilities. | ▪Climate risk management | 56
▪Credit risk management | 59
▪Market risk management | 60
▪Treasury and capital risk management | 61
▪Operational risk management | 63
▪Model risk management | 63
▪Conduct risk management | 64
▪Reputation risk management | 64
▪Legal risk management | 65
| ▪Climate risk performance | 66
Risk performance |  |
Credit risk: The risk of loss to the Barclays Bank Group from the failure of clients, customers or counterparties (including sovereigns), to fully honour their obligations to the Barclays Bank Group, including the whole and timely payment of principal, interest, collateral and other receivables. | ▪Credit risk overview and summary of performance | 70
▪Maximum exposure and effects of netting, collateral and risk transfer | 71
▪Expected credit losses | 75
▪Management adjustments to models for impairment | 87
▪Measurement uncertainty and sensitivity analysis | 89
▪Analysis of the concentration of credit risk | 99
▪Approach to the management and representation of credit quality | 103
▪Analysis of specific portfolios and asset types | 110
Market risk: The risk of loss arising from potential adverse changes in the value of the Barclays Bank Group’s assets and liabilities from fluctuation in market variables including, but not limited to, interest rates, foreign exchange, equity prices, commodity prices, credit spreads, implied volatilities and asset correlations. | ▪Market risk overview and summary of performance | 112
▪Review of management measures | 112

Risk review
Contents

home.barclays/annualreport | Barclays Bank PLC Annual Report | 39

Treasury and capital risk – Liquidity: The risk that the Barclays Bank Group is unable to meet its contractual or contingent obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. | •Liquidity risk overview | 115
▪Liquidity risk stress testing | 115
▪Contractual maturity of financial assets and liabilities | 117
Risk performance continued |  |
Treasury and capital risk – Capital: The risk that the Barclays Bank Group has an insufficient level or composition of capital to support its normal business activities and to meet its regulatory capital requirements under normal operating environments and stressed conditions (both actual and as defined for internal planning or regulatory testing purposes). This also includes the risk from the Barclays Bank Group’s pension plans. | ▪Capital risk overview | 125
•Foreign exchange risk | 127
•Pension risk review | 128
Treasury and capital risk – Interest rate risk in the banking book: The risk that the Barclays Bank Group is exposed to capital or income volatility because of a mismatch between the interest rate exposures of its (non-traded) assets and liabilities. | ▪Interest rate risk in the banking book overview and summary of performance | 130
▪Net interest income sensitivity | 130
▪Analysis of equity sensitivity | 131
▪Volatility of the fair value through other comprehensive income (FVOCI) portfolio in the liquidity pool | 131
Operational risk: The risk of loss to the Barclays Bank Group from inadequate or failed processes or systems, human factors or due to external events (for example fraud) where the root cause is not due to credit or market risks. | ▪Operational risk overview and summary of performance | 132
▪Operational risk profile | 132
Model risk: The potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. | ▪Model risk overview and summary of performance | 134
Conduct risk: The risk of poor outcomes for, or harm to, customers, clients and markets, arising from the delivery of the Barclays Bank Group's products and services. | ▪Conduct risk overview and summary of performance | 134
Reputation risk: The risk that an action, transaction, investment, event, decision, or business relationship will reduce trust in the Barclays Bank Group’s integrity and/or competence. | ▪Reputation risk overview and summary of performance | 134
Legal risk: The risk of loss or imposition of penalties, damages or fines from the failure of the Barclays Bank Group to meet its legal obligations including regulatory or contractual requirements. | ▪Legal risk overview and summary of performance | 135
Supervision and regulation |  |
The Barclays Bank Group’s operations, including its overseas offices, subsidiaries and associates, are subject to a significant body of rules and regulations. | ▪Supervision of the Barclays Bank Group | 136

Risk review
Contents

home.barclays/annualreport | Barclays Bank PLC Annual Report | 40

The Barclays Bank Group’s risk management strategy
This section introduces the Barclays Bank Group’s approach to managing and identifying risks, and for fostering a sound risk culture.
Enterprise Risk Management Framework (ERMF)
The ERMF outlines the highest level principles for risk management by setting out standards, objectives and key responsibilities of different groups of
employees of the Barclays Bank Group. It is approved by the Barclays PLC Board on recommendation of the Barclays Group Board Risk Committee and
the Barclays Bank Group Chief Risk Officer (CRO); it is then adopted by the Barclays Bank Group.
The ERMF sets out:
▪R isk management and segregation of duties: the ERMF defines a Th ree Lines of Defence model.
▪Principal risks faced by the Barclays Bank Group which guide the organisation risk management processes.
▪Risk appetite requirements: this helps define the level of risk we are willing to undertake in our business.
▪Roles a nd responsibilities for key risk management and governance.
The ERMF is complemented by frameworks, policies and standards which are mainly aligned to individual principal risks:
▪F rameworks cover high level principles guiding the management of principal risks, and set out details of which policies are needed, and high level
governance arrangements.
▪Policies set out the control objectives and high level requirements to address the key principles articulated in their associated frameworks. Policies
State ‘what’ those within scope are required to do.
▪Standards set out detail of the control requirements to ensure the control objectives set by the policies are met.
Segregation of duties - the "Three Lines of Defence" model
The ERMF sets out a clear lines of defence model. All colleagues are responsible for understanding and managing risks within the context of their
individual roles and responsibilities, as set out below.
▪The first line comprises of all employees engaged in the revenue generating and client facing areas of the Barclays Bank Group and all associated
support functions, including Finance, Operations, Treasury and Human Resources. The first line is responsible for identifying and managing the risks
in which they are engaged, operating within applicable limits and developing a control framework, and escalating risk events or issues as
appropriate. Employees in the first line have primary responsibility for their risks and their activities are subject to oversight from the relevant parts
of the second and third lines.
▪The second line is comprised of the Risk and Compliance functions. The role of the second line is to establish the limits, rules and constraints, and
the frameworks, Policies and Standards under which all activities shall be performed, consistent with the risk appetite of the Barclays Bank Group,
and to oversee the performance of the Barclays Bank Group against these limits, rules and constraints. Controls for first line activities will ordinarily
be established by the Control Officers operating within the Control Framework of the Barclays Bank Group. These controls will remain subject to
oversight by the second line.
▪The third line of defence is Internal Audit, who are responsible for providing independent assurance over the effectiveness of governance, risk
management and controls over current, systemic and evolving risks.
▪The legal function provides support to all areas of the Barclays Bank Group and is not formally part of any of the three lines of defence. The Legal
function is responsible for the identification of all Legal and Regulatory Risks. Except in relation to the legal advice it provides or procures, it is
subject to second line oversight with respect to its own Operational and Conduct Risks, as well as with respect to the Legal and Regulatory Risks to
which the Barclays Bank Group is exposed.
Principal risks
The ERMF identifies nine principal risks (see managing risks in the strategic report section) namely: credit risk, market risk, treasury and capital risk,
climate risk, operational risk, model risk, conduct risk, reputation risk and legal risk. Note that climate risk was added in January 2022; see page 48 for
more information.
Each of the principal risks is overseen by an accountable executive at the Barclays Group level who is responsible for overseeing and/or assigning
responsibilities for the framework, policies and standards that set out associated responsibilities and expectations, and detail the related requirements
around risk management. In addition, certain risks span across more than one principal risk.
Risk appetite
Risk appetite is defined as the level of risk which the Barclays Bank Group is prepared to accept in carrying out its activities. It provides a basis for
ongoing dialogue between management and Board with respect to the Barclays Bank Group’s current and evolving risk profile, allowing strategic and
financial decisions to be made on an informed basis.
Risk appetite is approved by the Barclays PLC Board in aggregate and disseminated across legal entities and businesses, including the Barclays Bank
Group. The Barclays Bank PLC Board cannot approve a higher risk appetite than that determined by the Barclays PLC Board without the approval of the
Barclays PLC Board but may choose to operate at a lower level of risk appetite than that approved by the Barclays PLC Board.
The Barclays Group’s total risk appetite and its allocation to the Barclays Bank Group are supported by limits to enable and cont rol spe cific exposures
and activities that have material concentration risk implications.
Risk Committees
The Barclays Bank Group's various risk committee s consider risk matters relevant to their business, and escalate as required to the Barclays Group Risk
Committee, whose Chair, in turn, escalates to the Barclays Bank PLC Board Committees and the Barclays Bank PLC Board.
Risk review
Risk management
Barclays’ risk management strategy

home.barclays/annualreport | Barclays Bank PLC Annual Report | 41

The Barclays Bank PLC Board receives regular information on the risk profile of Barclays Bank Group, and has ultimate responsibility for approval of risk
appetite and capital plans, within the parameters set by the Barclays PLC Board. The Barclays Bank PLC Board is also responsible for the adoption of the
ERMF.
Further, there are two Board-level committees which oversee the application of the ERMF and review and monitor risk across Barclays Bank PLC. These
are: the Barclays Bank PLC Board Risk Committee and the Barclays Bank PLC Board Audit Committee. Additionally, the Barclays Bank PLC Board
Remuneration Committee oversees pay practices focusing on aligning pay to sustainable performance:
▪The Barclays Bank PLC Board Risk Committee (BRC): The BRC monitors Barclays Bank Group’s risk profile against the agreed appetite. Where
actual performance differs from expectations, the actions taken by management are reviewed to ascertain that the BRC is comfortable with them.
The Barclays Bank Group CRO regularly presents a report to the BRC summarising developments in the risk environment and performance trends in
the key portfolios. The BRC also reviews certain key risk methodologies, the effectiveness of risk management, and the Barclays Bank Group risk
profile, including the material issues affecting each business portfolio and forward risk trends. The committee also commissions in-depth analyses
of significant risk topics, which are presented by the Barclays Bank Group CRO or senior risk managers in the businesses.
▪The Barclays Bank PLC Board Audit Committee (BAC): The BAC receives regular reports on the effectiveness of internal control systems, on
material control issues of significance, and on accounting judgements (including impairment), and a quarterly review of the adequacy of
impairment allowances, relative to the risk inherent in the portfolios, the business environment, and Barclays policies and methodologies.
▪The Barclays Bank PLC Board Remuneration Committee (RemCo): The RemCo receives proposals on ex-ante and ex-post risk adjustments to
variable remuneration based on risk management performance including events, issues and the wider risk profile. These inputs are considered in
the setting of performance incentives.
Barclays’ risk culture
Risk culture can be defined as the norms, attitudes and behaviours related to risk awareness, risk taking and risk management. This is reflected in how
the Barclays Bank Group identifies, escalates and manages risk matters.
The Barclays Bank Group is committed to maintaining a robust risk culture in which:
▪management expect, model and reward the right behaviours from a risk and control perspective; and
▪colleagues identify, manage and escalate risk and control matters, and meet their responsibilities around risk management.
The Barclays Group CEO works with the Executive Management to embed a strong risk culture within the Barclays Group, with particular regard to the
identification, escalation and management of risk matters, in accordance with the ERMF. Specifically, all employees regardless of their positions,
functions or locations must play their part in the Barclays Bank Group’s risk management. Employees are required to be familiar with risk management
policies which are relevant to their responsibilities, know how to escalate actual or potential risk issues, and have a role-appropriate level of awareness
of the risk management process as defined by the ERMF.
Our Code of Conduct – the Barclays Way
Globally, all colleagues must attest to the “Barclays Way”, our Code of Conduct, and comply with all frameworks, policies and standards applicable to
their roles. T he Code of Conduct outlines the Purpose, Values and Mindset which govern our ‘Barclays Way’ of working across our business globally. It
constitutes a reference point covering all aspects of colleagues’ working relationships, and provides guidance on working with other Barclays
employees, customers and clients, governments and regulators, business partners, suppliers, competitors and the broader community. See
home.barclays/sustainability/esg-resource-hub/statements-and-policy-positions/ for more details.
Risk review
Risk management
Barclays’ risk management strategy

home.barclays/annualreport | Barclays Bank PLC Annual Report | 42

Material existing and emerging risks to the Barclays Bank Group’s future performance
The Barclays Bank Group has identified a broad range of risks to which its businesses are exposed. Material risks are those to which senior management
pay particular attention and which could cause the delivery of the Barclays Bank Group’s strategy, results of operations, financial condition and/or
prospects to differ materially from expectations. Emerging risks are those which have unknown components, the impact of which could crystallise over
a longer time period. In addition, certain other factors beyond the Barclays Bank Group’s control, including escalation of global conflicts, acts of
terrori sm, nat ural disasters, pandemics and similar events, although not detailed below, could have a similar impact on the Barclays Bank Group.
Material existing and emerging risks potentially impacting more than one principal risk
i)Business conditions, general economy and geopolitical issues
The Barclays Bank Group’s operations are subject to changes in global and local economic and market conditions, as well as geopolitical developments,
which may have a material impact on the Barclays Bank Group’s business, results of operations, financial condition and prospects.
A deterioration in global or local economic and market conditions may result in (among other things): (i) deteriorating business, consumer or investor
confidence and lower levels of investment and productivity growth, which in turn may lead to lower customer and client activity, including lower
demand for borrowing; (ii) higher default rates, delinquencies, write-offs and impairment charges as borrowers struggle with their debt commitments;
(iii) subdued asset prices, which may impact the value of any collateral held by the Barclays Bank Group and require the Barclays Bank Group and its
customers to post additional collateral in order to satisfy margin calls; (iv) mark-to-market losses in trading portfolios resulting from changes in factors
such as credit ratings, share prices and solvency of counterparties; and (v) revisions to calculated ECLs leading to increases in impairment allowances. In
addition, the Barclays Bank Group’s ability to borrow from other financial institutions or raise funding from external investors may be affected by
deteriorating economic conditions and market disruption. Geopolitical events can also cause financial instability and affect economic growth.
In particular:
•Global GDP growth in 2022 was severely hampered by inflationary pressures resulting from: (a) the disruptive legacy of the COVID-19
pandemic on supply chains; (b) restricted labour markets and upward pressure on employment costs; and (c) escalating energy and food
prices intensified by the Russian invasion of Ukraine. These pressures have led to the on-going 'cost of living' pressures in much of the world,
but particularly in the UK and Europe.
•In response to persistent inflationary pressures, throughout 2022, central banks pursued policies of raising interest rates while also curtailing
quantitative easing and in some cases commencing quantitative tightening.
•Both the elevated inflationary environment and higher interest rates are likely to adversely affect economic growth globally in 2023,
particularly in developed markets, with the possibility of elevated unemployment as a result, with potentially negative implications for the
Barclays Bank Group's performance, including through increased impairment allowances. It remains possible that a resurgence in COVID-19
and/or restrictions on movement imposed locally to combat outbreaks or new strains, could exacerbate the expected slowdown in global
economic performance.
•In the UK and Europe, governments responded to escalating energy prices via short term subsidies for consumers and industry, in part funded
by windfall taxes on targeted sectors. Revisions to these schemes during 2023 may cause upward pressure on household and corporate
finances, which could result in higher impairment charges.
•Trading arrangements between the UK and the European Union (EU), following the UK's exit from the EU, may: (i) raise costs for UK
customers trading with the EU and/or otherwise adversely affect their business; and (ii) impact the Barclays Bank Group's EU opera tions.
•Further, any trading disruption between the EU and the UK may have a significant impact on economic activity in the EU and the UK which, in
turn, could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects.
Unstable economic conditions could result in (among other things):
◦a deeper recession in the UK and/or one or more member states of the EU in which it operates, with lower growth, higher
unemployment and falling property prices, which could lead to increased impairments in relation to a number of the Barclays Bank
Group’s portfolios (including, but not limited to, its unsecured lending portfolio (including credit cards) and commercial real estate
exposures);
◦increased market volatility (in particular in currencies and interest rates), which could impact the Barclays Bank Group’s trading
book positions and affect the underlying value of assets in the banking book and securities held by the Barclays Bank Group for
liquidity purposes;
◦a credit rating downgrade for one or more members of the Barclays Bank Group (either directly or indirectly as a result of a
downgrade in the UK sovereign credit ratings), which could significantly increase the Barclays Bank Group’s cost of funding and/or
reduce its access to funding, widen credit spreads and materially adversely affect the Barclays Bank Group’s interest margins and
liquidity position; and/or
◦a widening of credit spreads more generally or reduced investor appetite for the Barclays Bank Group’s debt securities, which could
negatively impact the Barclays Bank Group’s cost of and/or access to funding.
•A significant proportion of the Barclays Bank Group's portfolio is located in the US, including a major credit card portfolio and a range of
corporate and investment banking exposures. The possibility of significant changes in US policy in certain sectors (including trade, healthcare
and commodities) may have an impact on the Barclays Bank Group’s associated portfolios. Stress in the US economy, weakening GDP and
the associated exchange rate fluctuations, heightened trade tensions (such as between the US and China), and increased interest rates
(particularly if accompanied by rise in unemployment) could lead to increased levels of impairment, which may have a material adverse effect
on the Barclays Bank Group's results of operations and profitability.
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 43

•An escalation in geopolitical tensions or increased use of protectionist measures (such as the US and China implementing reciprocal trade
tariffs) may have a material adverse effect on the Barclays Bank Group’s business in the affected regions.
•In China the level of debt, particularly in the property sector, remains a concern, given the high level of leverage and despite government and
regulatory action. The rapid unwinding of “zero COVID-19” policies may initially result in economic slowdown should large numbers of the
population catch COVID-19. Longer term, the shift away from market based reforms towards state led initiatives to increase self-sufficiency
and economic security, with potentially negative implications for world trade.
•Higher US interest rates and slowing demand for natural resources could cause economic deterioration in emerging markets, with a material
adverse effect on the Barclays Bank Group's results from operations if these stresses lead to higher impairment charges from a deterioration
in sovereign or corporate creditworthiness.
ii)Risks relating to the impact of COVID-19
The COVID-19 pandemic has had a material adverse impact on businesses around the world and the economic and social environments in which they
operate. Consequently there are a number of factors associated with the COVID-19 pandemic and its impact on global economies that have had and
could continue to have a material adverse effect on the profitability, capital and liquidity of the Barclays Bank Group.
The COVID-19 pandemic caused disruption to the Barclays Bank Group's customers, suppliers and staff globally. Most jurisdictions in which the
Barclays Bank Group operates implemented severe restrictions on the movement of their respective populations, with a resultant significant impact on
economic activi ty. It remains unclear how the COVID-19 pandemic will evolve through 2023 and the risks from further waves, new strains and/or
vaccines proving ineffective cannot be ruled out and could result in the re-introduction of, or additional, restrictions placed on local populations. The
Barclays Bank Group continues to monitor the situation.
Macroeconomic expectations are that the effects of the COVID-19 pandemic will be long lasting with the level and speed of economic recovery still
uncertain. To the extent that the residual impacts of the COVID-19 pandemic continue to adversely affect the global economy and/or the Barclays Bank
Group, it may also have the effect of increasing the likelihood and/or magnitude of other risks described herein or may pose other risks which are not
presently known to the Barclays Bank Group or not currently expected to be significant to the Barclays Bank Group’s profitability, capital and liquidity.
Further waves or new strains of COVID-19 could impact the Barclays Bank Group's ability to conduct business in the jurisdictions in which it operates
through disruptions to infrastructure and supply chains, business processes and technology services provided by third parties, and unavailability of staff
due to illness. These interruptions to business may be detrimental to customers (who may seek reimbursement from the Barclays Bank Group for costs
and losses incurred as a result of such interruptions), and result in potential litigation costs (including regulatory fines, penalties and other sanctions), as
well as reputational damage.
Changes in macroeconomic variables such as gross domestic product (GDP) and unemployment have a significant impact on the modelling of expected
credit losses (ECLs) by the Barclays Bank Group. The economic environment remains uncertain and future impairment charges may be subject to
additional volatility (including from changes to macroeconomic variable forecasts) caused by further waves or new strains of the COVID-19 pandemic
and related containment measures and the continued efficacy of vaccines and/or boosters, as well as the longer term effectiveness of central bank,
government and other support measures. For further details on macroeconomic variables used in the calculation of ECLs, refer to the credit risk
performance section.
Any and all such events mentioned above could have a material adverse effect on the Barclays Bank Group's business, results of operations, financial
condition, prospects, liquidity, capital position and credit ratings (including potential credit rating agency changes of outlooks or ratings), as well as on
the Barclays Bank Group's customers, employees and suppliers.
iii)The impact of interest rate changes on the Barclays Bank Group’s profitability
Changes to interest rates are significant for the Barclays Bank Group, especially given the uncertainty as to the size and frequency of such changes,
particularly in the Barclays Bank Group’s main markets of the UK, the US and the EU.
Interest rate rises result in higher funding costs but could positively impact the Barclays Bank Group’s profitability as retail and corporate business net
interest income increases due to margin decompression, as observed for the interest rate rises in 2022. However, increases in interest rates, if larger or
more frequent than expected, could lead to generally weaker than expected growth, reduced business confidence and higher unemployment. This,
combined with the impact interest rate rises may have on the affordability of loan arrangements for borrowers (especially when combined with
inflationary pressures), could cause stress in the lending portfolio and underwriting activity of the Barclays Bank Group with resultant higher credit
losses driving an increased impairment charge which would most notably impact retail unsecured portfolios and wholesale non-investment grade
lending and could have a material effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects.
Interest rate cuts may affect, and put pressure on, the Barclays Bank Group’s net interest margins (the difference between its lending income and
borrowing costs) and could adversely affect the profitability and prospects of the Barclays Bank Group.
In addition, changes in interest rates could have an adverse impact on the value of the securities held in the Barclays Bank Group’s liquid asset portfolio.
Consequently, this could create more volatility than expected through the Barclays Bank Group’s Fair Value through Other Comprehensive Income
(FVOCI) reserve and could adversely affect the profitability and prospects of the Barclays Bank Group.
iv)Competition in the banking and financial services industry
The Barclays Bank Group operates in a highly competitive environment in which it must evolve and adapt to significant changes as a result of regulatory
reform, technological advances, increased public scrutiny and prevailing economic conditions. The Barclays Bank Group expects that competition in the
financial services industry will continue to be intense and may have a material adverse effect on the Barclays Bank Group’s future business, results of
operations, financial condition and prospects.
New competitors in the financial services industry continue to emerge. Technological advances and the growth of e-commerce have made it possible
for non-banks to offer products and services that traditionally were banking products such as electronic securities trading, payments processing and
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 44

online automated algorithmic-based investment advice. Furthermore, payments processing and other services could be significantly disrupted by
technologies, such as blockchain (used in cryptocurrency systems) and 'buy now pay later' lending, both of which are currently subject to lower levels of
regulatory oversight. Furthermore, the introduction of Central Bank Digital Currencies could potentially have significant impact on the banking system
and the role of commercial banks within it by disrupting the current provision of banking products and services. This disruption could allow new
competitors, some previously hindered by banking regulation (such as FinTechs), to provide customers with access to banking facilities and increase
disintermediation of banking services.
New technologies and changing consumer behaviour have required and could require the Barclays Bank Group to incur additional cost to modify or
adapt its products or make additional capital investments in its businesses to attract and retain clients and customers or to match products and services
offered by its competitors, including technology companies.
Ongoing or increased competition and/or disintermediation of banking services may put pressure on the pricing of the Barclays Bank Group’s products
and services, which could reduce the Barclays Bank Group's revenues and profitability, or may cause the Barclays Bank Group to lose market share,
particularly with respect to traditional banking products such as deposits, bank accounts and mortgage lending. This competition may be on the basis
of quality and variety of products and services offered, transaction execution, innovation, reputation and/or price. These factors may be exacerbated by
further industry wide initiatives to address access to banking. The failure of any of the Barclays Bank Group’s businesses to meet the expectations of
clients and customers, whether due to general market conditions, underperformance, a decision not to offer a particular product or service, branch
closures, changes in client and customer expectations or other factors, could affect the Barclays Bank Group’s ability to attract or retain clients and
customers. Any such impact could, in turn, reduce the Barclays Bank Group’s revenues.
v)Regulatory change agenda and impact on business model
The Barclays Bank Group’s businesses are subject to ongoing regulation and associated regulatory risks, including the effects of changes in the laws,
regulations, policies, voluntary codes of practice and interpretations in the UK, the US, the EU and the other markets in which it operates. Many
regulatory changes relevant to the Barclays Bank Group’s business may have an effect beyond the country in which they are enacted, either because the
Barclays Bank Group’s regulators deliberately enact regulation with extra-territorial impact or its global operations mean that the Barclays Bank Group is
obliged to give effect to local laws and regulations on a wider basis.
In recent years, regulators and governments have focused on reforming both the prudential regulation of the financial services industry and the ways in
which the business of financial services is conducted. Measures taken include enhanced capital, liquidity and funding requirements, the separation or
prohibition of certain activities by banks, changes in the operation of capital markets activities, the introduction of tax levies and transaction taxes,
changes in compensation practices and more detailed requirements on how business is conducted. The governments and regulators in the UK, the US,
the EU or elsewhere may intervene further in relation to areas of industry risk already identified, or in new areas, which could adversely affect the
Barclays Bank Group.
Current and anticipated areas of particular focus for the Barclays Bank Group’s regulators, where regulatory changes could have a material effect on the
Barclays Bank Group’s business, financial condition, results of operations, prospects, capital position, and reputation, include, but are not limited to:
▪the increasing focus by regulators, international bodies, organisations and unions on how institutions conduct business, particularly with regard to
ensuring the orderly and transparent operation of global financial markets;
▪the implementation of any conduct measures as a result of regulators’ focus on organisational culture, employee behaviour and whistleblowing;
▪the demise of certain benchmark interest rates and the transition to new risk-free reference rates (as discussed further unde r ‘vi) Impact of
benchmark interest rate reforms on the Barclays Bank Group’ below);
▪reviews of regulatory frameworks applicable to the wholesale financial markets, including reforms and other changes to conduct of business, listing,
securitisation and derivatives related requirements;
▪the focus globally on technology adoption and digital delivery, underpinned by customer protection, including the use of artificial intelligence and
digital assets (data, identity and disclosures), financial technology risks, payments and related infrastructure, operational resilience, virtual currencies
(including central bank digital currencies and global stable coins) and cybersecurity. This also includes the introduction of new and/or enhanced
regulatory standards in these areas;
▪increasing regulatory expectations of firms around governance and risk management frameworks, particularly for management of climate change,
diversity and inclusion and other ESG risks and enhanced ESG disclosure and reporting obligations;
▪the continued evolution of the UK’s regulatory framework following the UK's withdrawal from the EU, including in light of the UK financial services
regulatory reform agenda announced in December 2022 and the proposals in the Financial Services and Markets Bill, and similarly regarding the
access of UK and other non-EU financial institutions to EU markets;
▪the implementation of the reforms to the Basel III package, which includes changes to the RWA approaches to credit risk, market risk, counterparty
risk, operational risk, and credit valuation adjustments and the application of RWA floors and the leverage ratio;
▪the implementation of more stringent capital, liquidity and funding requirements;
▪the ongoing regulatory response to the COVID-19 pandemic and its implications for banks’ credit risk management and provisioning processes,
capital adequacy and liquidity;
▪the incorporation of climate change within the global prudential framework, including the transition risks resulting from a shift to a low carbon
economy and its financial effects;
▪increasing requirements to detail management accountability within the Barclays Bank Group (for example, the requirements of the Senior Managers
and Certification Regime in the UK and similar regimes elsewhere that are either in effect or under consideration/implementation), as well as
requirements relating to executive remuneration;
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 45

▪changes in national or supra-national requirements regarding the ability to offshore or outsource the provision of services and resources or transfer
material risk to financial services companies located in other countries, which impact the Barclays Bank Group’s ability to implement globally
consistent and efficient operating models;
▪financial crime, fraud and market abuse standards and increasing expectations for related control frameworks, to ensure firms are adapting to new
threats such as those arising from the COVID-19 pandemic, and are protecting customers from cyber-enabled crime;
▪the application and enforcement of economic sanctions including those with extra-territorial effect and those arising from geopolitical tensions;
▪requirements flowing from arrangements for the resolution strategy of the Barclays Group and its individual operating entities (including the Barclays
Bank Group) that may have different effects in different countries;
▪the increasing regulatory expectations and requirements relating to various aspects of operational resilience, including an increasing focus on the
response of institutions to operational disruptions;
▪continuing regulatory focus on data privacy, including the collection and use of personal data, and protection against loss and unauthorised or
improper access;
▪the regulatory focus on policies and procedures for identifying and managing cybersecurity risks, cybersecurity governance and the corresponding
disclosure and reporting obligations; and
▪continuing regulatory focus on the effectiveness of internal controls and risk management frameworks, as evidenced in regulatory fines and other
measures imposed against the Barclays Bank Group and other financial institutions.
For further details on the regulatory supervision of, and regulations applicable to, the Barclays Bank Group, refer to the Supervision and regulation
section.
vi)I mpact of benchmark interest rate reforms on the Barclays Bank Group
Global regulators and central banks in the UK, the US and the EU have driven international efforts to reform key benchmark interest rates and indices,
such as the London Interbank Offered Rate (LIBOR), used to determine the amounts payable under a wide range of transactions and make them more
reliable and robust. These benchmark reforms have resulted in significant changes to the methodology and operation of certain benchmarks and
indices, the adoption of alternative risk-free reference rates (RFRs), the discontinuation of certain reference rates (including LIBOR), and the introduction
of implementing legislation and regulations. Specifically, certain LIBOR tenors either ceased at the end of 2021 or became permanently
unrepresentative. Furthermore, certain US dollar LIBOR tenors are to cease by the end of June 2023, and restrictions have been imposed on new use of
US dollar LIBOR. Notwithstanding these developments, given the unpredictable consequences of benchmark reform, any of these developments could
have an adverse impact on market participants, including the Barclays Bank Group, in respect of any financial instruments linked to, or referencing, any
of these benchmark interest rates.
Uncertainty associated with such potential changes, including the availability and/or suitability of alternative RFRs, the participation of customers and
third-party market participants in the transition process, challenges with respect to required documentation changes, and impact of legislation to deal
with certain legacy contracts that cannot convert into or add fall-back RFRs before cessation of the benchmark they reference, may adversely affect a
broad range of transactions (including any securities, loans and derivatives which use LIBOR or any other affected benchmark to determine the interest
payable which are included in the Barclays Bank Group’s financial assets and liabilities) that use these reference rates and indices, and present a number
of risks for the Barclays Bank Group, including but not limited to:
▪Conduct risk: in undertaking actions to transition away from using certain reference rates (such as LIBOR) to new alternative RFRs, the Barclays Bank
Group faces conduct risks. These may lead to customer complaints, regulatory sanctions or reputational impact if the Barclays Bank Group is
considered to be (among other things): (i) undertaking market activities that are manipulative or create a false or misleading impression; (ii) misusing
sensitive information or not identifying or appropriately managing or mitigating conflicts of interest; (iii) providing customers with inadequate advice,
misleading information, unsuitable products or unacceptable service; (iv) not taking a consistent approach to remediation for customers in similar
circumstances; (v) unduly delaying the communication and migration activities in relation to client exposure, leaving them insufficient time to
prepare; or (vi) colluding or inappropriately sharing information with competitors.
▪Litigation risk: members of the Barclays Bank Group may face legal proceedings, regulatory investigations and/or other actions or proceedings
regarding (among other things): (i) the conduct risks identified above, (ii) the interpretation and enforceability of provisions in LIBOR-based contracts
and securities, and (iii) the Barclays Bank Group’s preparation and readiness for the replacement of LIBOR with alternative RFRs.
▪Financial risk: the valuation of certain of the Barclays Bank Group’s financial assets and liabilities may change. Moreover, transitioning to alternative
RFRs may impact the ability of members of the Barclays Bank Group to calculate and model amounts receivable by them on certain financial assets
and determine the amounts payable on certain financial liabilities (such as debt securities issued by them) because certain alternative RFRs (such as
the Sterling Overnight Index Average (SONIA) and the Secured Overnight Financing Rate (SOFR)) are look-back rates whereas term rates (such as
LIBOR) allow borrowers to calculate at the start of any interest period exactly how much is payable at the end of such interest period. This may have a
material adverse effect on the Barclays Bank Group’s cash flows.
▪Pricing risk: changes to existing reference rates and indices, discontinuation of any reference rate or indices and transition to alternative RFRs may
impact the pricing mechanisms used by the Barclays Bank Group on certain transactions.
▪Operational risk: changes to existing reference rates and indices, discontinuation of any reference rate or index and transition to alternative RFRs may
require changes to the Barclays Bank Group’s IT systems, trade reporting infrastructure, operational processes, and controls. In addition, if any
reference rate or index (such as LIBOR) is no longer available to calculate amounts payable, the Barclays Bank Group may incur additional expenses in
amending documentation for new and existing transactions and/or effecting the transition from the original reference rate or index to a new
reference rate or index.
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 46

▪Accounting risk: an inability to apply hedge accounting in accordance with IAS 39 could lead to increased volatility in the Barclays Bank Group’s
financial results and performance.
Any of these factors may have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition, prospects and
reputation.
For further details on the impacts of benchmark interest rate reforms on the Barclays Bank Group, refer to Note 40.
vii) Change delivery and execution risks
The Barclays Bank Group will need to adapt and/or transform the way it conducts business in response to changing customer behaviour and needs,
technological developments, regulatory expectations, increased competition and cost management initiatives. Accordingly, effective management of
transformation projects is required to successfully deliver the Barclays Bank Group's strategic priorities, involving delivering both on externally driven
programmes, as well as key business initiatives to deliver revenue growth, product enhancement and operational efficiency outcomes. The magnitude,
complexity and, at times, concurrent demands of the projects required to meet these priorities can result in heightened execution risk.
The ability to execute the Barclays Bank Group’s strategy may be limited by operational capacity and the increasing complexity of the regulatory
environment in which the Barclays Bank Group operates. In addition, whilst the Barclays Bank Group continues to pursue cost management initiatives,
they may not be as effective as expected and cost saving targets may not be met.
The failure to successfully deliver or achieve any of the expected benefits of these strategic initiatives and/or the failure to meet customer and
stakeholder expectations could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition,
customer outcomes, prospects and reputation.
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 47

Material existing and emerging risks impacting individual principal risks
i)Climate risk
The risks associated with climate change are subject to rapidly increasing societal, regulatory and political focus, both in the EU and internationally. In
line with regulatory expectations and requirements, the Barclays Group has embedded climate risk within the Enterprise Risk Management Framework
(ERMF), to address the financial and operational risks resulting from both: (i) the physical risk of climate change; and (ii) the risk from the transition to a
low-carbon economy. Climate risk is considered to be a driver of financial and operating risks.
Physical risks from climate change arise from a number of factors and relate to specific weather events (acu te) and longer-term shifts in the climate
(chronic). The nature and timing of acute weather events are uncertain but they are increasing in frequency and in the potential severity of economic
impact. The potential impact on the economy includes, but is not limited to, lower GDP growth, higher unemployment, shortage of raw materials and
products due to supply chain disruptions and significant changes in asset prices and profitability of industries. Damage to properties and operations of
borrowers could decrease production capacity, increase operating c osts, impai r asset values and the creditworthiness of customers leading to increased
default rates, delinquencies, write-offs and impairment charges in the Barclays Bank Group’s portfolios. In addition, the Barclays Bank Group’s premises
and resilience may also suffer physical damage due to weather events leading to increased costs for the Barclays Bank Group.
As the economy transitions to a low-carbon economy, financial institutions such as the Barclays Bank Group may face significant and rapid
developments in stakeholder expectations, policy, law and regulation which could impact the lending activities the Barclays Bank Group undertakes, as
well as the risks associated with its lending portfolios, and the value of the Barclays Bank Group’s financial assets. As new policies and regulations are
enforced, market sentiment and societal preferences chan ge an d new technologies emerge, this may result in increased costs and reduced demand of
product and services of a company, early retirement and impairment of assets, decreased revenue and profitability for Barclays customers. This in turn
may impact creditworthiness of customers and their ability to repay loans. Additionally, the Barclays Bank Group may face greater scrutiny of the type of
business it conducts, adverse media coverage and reputational damage, which may in turn impact customer demand for the Barclays Bank Group's
products, returns on certain business activities and the value of certain assets and trading positions resulting in impairment charges.
Furthermore, the impacts of physical and transition climate risks can lead to second order connected risks, which have the potential to affect the
Barclays Bank Group’s retail and wholesale portfolios. The impacts of climate change may increase losses for those sectors sensitive to the effects of
physical and transition risks. Any subsequent increase in defaults and rising unemployment could create recessionary pressures, which may lead to
wider deterioration in the creditworthiness of the Barclays Bank Group’s clients, higher expected credit losses (ECLs), and increased charge-offs and
defaults among retail customers.
In January 2022, climate risk became one of the principal risks within the Barclays Bank Group’s ERMF. Failure to adequately embed the financial and
operational risks associated with climate change into its risk framework to appropriately measure, manage and disclose the various financial and
operational risks it faces as a result of climate change, or failure to adapt the Barclays Bank Group's strategy and business model to the changing
regulatory requirements and market expectations on a timely basis, may have a material and adverse impact on the Barclays Bank Group’s level of
business growth, competitiveness, profitability, capital requirements, cost of funding, and financial condition.
In March 2020, the Barclays Group announced its ambition to become a net zero bank by 2050 and its commitment to align all of its financing activities
with the goals and timelines of the Paris Agreement. In order to reach these ambitions and targets or any other climate-related ambitions or targets the
Barclays Group may commit to in future, the Barclays Bank Group will need to incorporate climate considerations into its strategy, business model, the
products and services it provides to customers and its financial and non-financial risk management processes (including processes to measure and
manage the various financial and non-financial risks the Barclays Bank Group faces as a result of climate change). The Barclays Bank Group also needs
to ensure that its strategy and business model adapt to changing national and international standards, industry and scientific practices, regulatory
requirements and market expectations regarding climate change, which remain under continuous development. There can be no assurance that these
standards, practices, requirements and expectations will not change in a manner that substantially increases the cost or effort for the Barclays Bank
Group to achieve such ambitions and targets. In addition, the Barclays Group’s ambitions and targets may prove more challenging to achieve due to
changing circumstances and external factors which are beyond our control, including geopolitical issues, energy security, energy poverty and other
considerations such as just transition to a low carbon economy. This may be exacerbated if the Barclays Group chooses or is required to accelerate its
climate-related ambitions or targets as a result of UK or international regulatory developments or stakeholder expectations.
Achieving the Barclays Group’s climate-related ambitions and targets will also depend on a number of factors outside the Barclays Bank Group’s control,
including reliable forecast of hazards from the physical climate models, availability of data and models to measure and assess the climate impact of the
Barclays Bank Group’s customers, advancements of low-carbon technologies and supportive public policies in the markets where the Barclays Bank
Group operates. If these external factors and other changes do not occur, or do not occur on a timely basis, the Barclays Group may fail to achieve its
climate-related ambitions and targets and this could have a material adverse effect on the Barclays Bank Group’s business, results of operations,
financial condition, prospects and reputation.
For further details on the Barclays Bank Group’s approach to climate change, refer to the climate change risk management section.
ii.Credit risk
Credit risk is the risk of loss to the Barclays Bank Group from the failure of clients, customers or counterparties, including sovereigns, to fully honour
their obligations to members of the Barclays Bank Group, including the whole and timely payment of principal, interest, collateral and other receivables.
Credit risk is impacted by a number of factors outside the Barclays Bank Group’s control, including wider economic conditions.
a)Impairment
Impairment is calculated in line with the requirements of IFRS 9 which results in recognition of loss allowances, based on ECLs, on a forward-looking
basis using a broad scope of financial metrics. Measurement involves complex judgement and impairment charges are potentially volatile and may not
successfully predict actual credit losses, particularly under stressed conditions. Any failure by the Barclays Bank Group to accurately estimate credit
losses through ECLs could have a material adverse effect on the Barclays Bank Group's business, results of operations, financial condition and prospects.
For further details, refer to Note 8.
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 48

b)Specific portfolios, sectors and concentrations
The Barclays Bank Group is subject to risks arising from changes in credit quality and recovery rates for loans and advances due from borrowers and
counterparties and is subject to a concentration of those risks where the Barclays Bank Group has significant exposures to borrowers and
counterparties in specific sectors, or to particular types of borrowers and counterparties. Any deterioration in the credit quality of such borrowers and
counterparties could lead to lower recoverability from loans and advances and higher impairment charges. Accordingly, any of the following areas of
uncertainty could have a material adverse impact on the Barclays Bank Group’s business, results of operations, financial condition and prospec ts:
▪Consumer affordability: remains a key area of focus, particularly in unsecured lending, as the 'cost of living' pressures grow. Macroeconomic
factors, such as unemployment, higher interest rates or broader inflationary pressures, that impact a customer’s ability to service debt payments
could lead to increased arrears in both unsecured and secured products. The Barclays Bank Group is exposed to the adverse credit performance of
unsecured products, particularly in the US through its US Cards business.
▪UK retail, hospitality and leisure: fa lling dem and, rising costs and, for UK retail, a structural shift to online shopping, continue to pressurise sectors
heavily reliant on consumer discretionary spending. Such sectors may also be adversely impacted by cost of living pressures and other
macroeconomic factors which affect consumers. This represents a potential risk in the Barclays Bank Group’s UK corporate portfolio as a higher
probability of default exists for retailers, hospitality providers and their landlords while these pressures remain.
▪UK real estate market: the Barclays Bank Group’s corporate exposure is vulnerable to a deteriorating economic environment and (for offices in
particular) post COVID-19 pandemic structural shifts, such as the normalisation of remote working. Landlords serving discretionary consumer
spending sector tenants are also at risk fr om redu ced rent collection. The Barclays Bank Group remains at risk of increased impairment from a
material fall in property prices. In addition, small segments of the housing market could be subject to specific valuation impacts such as
requirements to remediate issues related to fire safety standards.
▪Leveraged finance underwriting: the Barclays Bank Group takes on non-investment grade underwriting exposure, including single name risk,
particularly in the US and the UK. The Barclays Bank Group is exposed to credit events and market volatility during the underwriting period, which
may result in losses for the Barclays Bank Group, or increased capital requirements should there be a need to hold the exposure for an extended
period.
▪Italian mortgage and wholesale exposure: the Barclays Bank Group is exposed to a decline in the Italian economic environment through a
mortgage portfolio in run-off and positions to wholesale customers. During 2022 Italian economic growth has been severely impacted by high
energy costs, inflation and rising interest rates, making it more difficult for the new administration to manage the high level of public debt. Failure by
the government to meet the EU's requirements could put at risk further payments from the EU's €750bn post-pandemic recovery fund, potentially
delaying economic recovery which, in turn, could materially adversely affect the Barclays Bank Group’s results of operations including, but not
limited to, increased credit losses and higher impairment charges.
▪Oil & Gas sector: High market energy prices during 2022 have helped restore balance sheet strength to companies operating in this sector.
However, in the longer term, costs associated with the transition towards renewable sources of energy may place greater financial demands on oil
and gas companies.
▪Air travel: the sector struggled to resource for the recovery in lower margin (tourist) demand for air travel evidenced in 2022 (after the drop in
demand during the pandemic), and to adjust to the structural decline in higher margin business travel. While this transition plays out, there remains
a heightened risk to the revenue streams of the Barclays Bank Group’s clients and, consequentially, their ability to service debt obligations.
Increasing concerns about the impact of air travel on climate change will also influence consumer behaviour, representing additional risks for the
sector.
The Barclays Bank Group also has large individual exposures to single name counterparties (such as brokers, central clearing houses, dealers, banks,
mutual and hedge funds and other institutional clients) both in its lending and trading activities, including derivative trades. The default of one such
counterparty could cause contagion across clients involved in similar activities and/or adversely impact asset values should margin calls necessitate
rapid asset disposals by that counterparty to raise liquidity. In addition, where such counterparty risk has been mitigated by taking collateral, credit risk
may remain high if the collateral held cannot be monetised, or has to be liquidated at prices which are insufficient to recover the full amount of the loan
or derivative exposure. Any such defaults could have a material adverse effect on the Barclays Bank Group’s results due to, for example, increased credit
losses and higher impairment charges.
For further details on the Barclays Bank Group’s approach to credit risk, refer to the credit risk management and credit risk performance section s.
iii)Market risk
Market risk is the risk of loss arising from potential adverse changes in the value of the Barclays Bank Group’s assets and liabilities from fluctuation in
market variables including, but not limited to, interest rates, foreign exchange, equity prices, commodity prices, credit spreads, implied volatilities and
asset correlations.
Economic and financial market uncertainties remain elevated, driven by elevated inflation and tightening monetary policy, both of which are
exacerbated by the Russian invasion of Ukraine and supply-chain disruptions caused by the COVID-19 pandemic. A disruptive adjustment to higher
interest rate levels and deteriorating trade and geopolitical tensions could heighten market risks for the Barclays Bank Group’s portfolios.
In addition, the Barclays Bank Group’s trading business is generally exposed to a prolonged period of elevated asset price volatility, particularly if it
adversely affects market liquidity. Such a scenario could impact the Barclays Bank Group’s ability to execute client trades and may also result in lower
client flow-driven income and/or market-based losses on its existing portfolio of market risks. These can include higher hedging costs from rebalancing
risks that need to be managed dynamically as market levels and their associated volatilities change.
Changes in market conditions could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and
prospects.
For further details on the Barclays Bank Group’s approach to market risk, refer to the market risk management and market risk performance section s.
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 49

iv)Treasury and capital risk
There are three primary types of treasury and capital risk faced by the Barclays Bank Group:
a)Liquidity risk
Liquidity risk is the risk that the Barclays Bank Group is unable to meet its contractual or contingent obligations or that it does not have the appropriate
amount, tenor and composition of funding and liquidity to support its assets. This could cause the Barclays Bank Group to fail to meet regulatory and/or
internal liquidity requirements, make repayments of principal or interest as they fall due or support day-to-day business activities. Key liquidity risks that
the Barclays Bank Group faces include:
▪Stability of the Barclays Bank Group’s deposit funding profile: deposits which are payable on demand or at short notice could be adversely
affected by the Barclays Bank Group failing to preserve the current level of customer and investor confidence or as a result of competition in the
banking industry.
▪Ongoing access to wholesale funding: the Barclays Bank Group regularly accesses the money and capital markets to provide short-term and long-
term unsecured and secured funding to support its operations. A loss of counterparty confidence, or adverse market conditions (such as the recent
rises in interest rates) could lead to a reduction in the tenor, or an increase in the costs, of the Barclays Bank Group's unsecured and secured
wholesale funding or affect the Barclays Bank Group’s access to such funding.
▪Impacts of market volatility: adverse market conditions, with increased volatility in asset prices could: (i) negatively impact the Barclays Bank
Group’s liquidity position through increased derivative margin requirements and/or wider haircuts when monetising liquidity pool securities; and (ii)
make it more difficult for the Barclays Bank Group to execute secured financing transactions.
▪Intraday liquidity usage: increased collateral requirements for payments and securities settlement systems could negatively impact the Barclays
Bank Group’s liquidity position, as cash and liquid assets required for intraday purposes are unavailable to meet other outflows.
▪Off-balance sheet commitments: deterioration in economic and market conditions could cause customers to draw on off-balance sheet
commitments provided to them, for example, revolving credit facilities, negatively affecting the Barclays Bank Group's liquidity position.
▪Credit rating changes and impact on funding costs: any reductions in a credit rating (in particular, any downgrade below investment grade) may
affect the Barclays Bank Group’s access to the money or capital markets and/or terms on which the Barclays Bank Group is able to obtain market
funding (for example, this could lead to increased costs of funding and wider credit spreads, the triggering of additional collateral or other
requirements in derivative contracts and other secured funding arrangements, or limits on the range of counterparties who are willing to enter into
transactions with the Barclays Bank Group).
b)Capital risk
Capital risk is the risk that the Barclays Bank Group has an insufficient level or composition of capital to support its normal business activities and to
meet its regulatory capital requirements under normal operating environments and stressed conditions (both actual and as defined for internal planning
or regulatory stress testing purposes). This also includes the risk from the Barclays Bank Group’s pension plans. Key capital risks that the Barclays Bank
Group faces include:
▪Failure to meet prudential capital requirements: this could lead to the Barclays Bank Group being unable to support some or all of its business
activities, a failure to pass regulatory stress tests, increased cost of funding due to deterioration in investor appetite or credit ratings, restrictions on
distributions and/or the need to take additional measures to strengthen the Barclays Bank Group's capital or leverage position.
▪Adverse changes in FX rates impacting capital ratios: the Barclays Bank Group has capital resources, risk weighted assets and leverage exposures
denominated in foreign currencies. Changes in foreign currency exchange rates may adversely impact the sterling equivalent value of these items.
As a result, the Barclays Bank Group’s regulatory capital ratios are sensitive to foreign currency movements. Failure to appropriately manage the
Barclays Bank Group’s balance sheet to take account of foreign currency movements could result in an adverse impact on the Barclays Bank
Group’s regulatory capital and leverage ratios.
▪Adverse movements in the pension fund: adverse movements in pension assets and liabilities for defined benefit pension schemes could result in
deficits on a technical provision and/or IAS 19 accounting basis. This could lead to the Barclays Bank Group making substantial additional
contributions to its pension plans and/or a deterioration in its capital position. The market value of pension fund assets might decline; or investment
returns might reduce. Under IAS 19, the liabilities discount rate is derived from the yields of high quality corporate bonds. Therefore, the valuation of
the Barclays Bank Group’s defined benefits schemes would be adversely affected by a prolonged fall in the discount rate due to a persistent low
interest rate and/or credit spread environment. Inflation is another significant risk driver to the pension fund as the liabilities are adversely impacted
by an increase in long-term inflation expectations.
c)Interest rate risk in the banking book
Interest rate risk in the banking book is the risk that the Barclays Bank Group is exposed to capital or income volatility because of a mismatch between
the interest rate exposures of its (non-traded) assets and liabilities. The Barclays Bank Group’s hedging programmes for interest rate risk in the banking
book rely on behavioural assumptions and, as a result, the effectiveness of the hedging strategy cannot be guaranteed. A potential mismatch in the
balance or duration of the hedging assumptions could lead to earnings deterioration if there are interest rate movements which are not adequately
hedged. A decline in interest rates may also compress net interest margin on retail and corporate portfolios. In addition, the Barclays Bank Group’s liquid
asset portfolio is exposed to potential capital and/or income volatility due to movements in market rates and prices which may have a material adverse
effect on the capital position of the Barclays Bank Group.
For further details on the Barclays Bank Group’s approach to treasury and capital risk, refer to the treasury and capital risk management and treasury
and capital risk performance sections.
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 50

v)Operational risk
Operational risk is the risk of loss to the Barclays Bank Group from inadequate or failed processes or systems, human factors or due to external events
where the root cause is not due to credit or market risks. Examples include:
a)Operational resilience
The Barclays Bank Group functions in a highly competitive market, with customers and clients that expect consistent and smooth business processes.
The loss of or disruption to business processing is a material inherent risk within the Barclays Bank Group and across the financial services industry,
whether arising through failures in the Barclays Bank Group’s technology systems or availability of personnel or services supplied by third parties. Failure
to build resilience and recovery capabilities into business processes or into the services on which the Barclays Bank Group’s business processes depend,
may result in significant customer detriment, costs to reimburse losses incurred by the Barclays Bank Group’s customers, and reputational damage.
b)Cyberattacks
Cyberattacks continue to be a global threat that is inherent across all industries, with the number and severity of attacks continuing to rise. The financial
sector remains a primary target for cybercriminals, hostile nation states, opportunists and hacktivists. The Barclays Bank Group, like other financial
institutions, experiences numerous attempts to compromise its cybersecurity protections.
The Barclays Bank Group dedicates significant resources to reducing cybersecurity risks, but it cannot provide absolute security against cyberattacks.
Malicious actors are increasingly sophisticated in their methods, tactics, techniques, and procedures, seeking to steal money, gain unauthorised access
to, destroy or manipulate data, and disrupt operations, and some of their attacks may not be recognised or discovered until launched or after initial
entry into the environm ent, suc h as novel or zero-day attacks that are launched before patches are available and defences can be readied. Malicious
actors are also increasingly developing methods to avoid prevention, detection and alerting capabilities, including employing counter-forensic tactics
making response activities more difficult. Cyberattacks can originate from a wide variety of sources and target the Barclays Bank Group in numerous
ways, including attacks on networks, systems, applications or devices used by the Barclays Bank Group or parties such as service providers and other
suppliers, counterparties, employees, contractors, customers or clients, presenting the Barclays Bank Group with a vast and complex defence perimeter.
Moreover, the Barclays Bank Group does not have direct control over the cybersecurity of the systems of its clients, customers, counterparties and third-
party service providers and suppliers, limiting the Barclays Bank Group’s ability to effectively protect and defend against certain threats. Some of the
Barclays Bank Group’s third-party service providers and suppliers have experienced successful attempts to compromise their cybersecurity. These
included ransomware attacks that disrupted the service providers’ or suppliers’ operations and, in some cases, had an impact on the Barclays Bank
Group’s operations. Such cyberattacks are likely to continue.
A failure in the Barclays Bank Group’s adherence to its cybersecurity policies, procedures or controls, employee malfeasance, and human, governance or
technological error could also compromise the Barclays Bank Group’s ability to successfully prevent and defend against cyberattacks. Furthermore,
certain legacy technologies that are at or approaching end-of-life may not be able to maintain acceptable levels of security. The Barclays Bank Group
has experienced cybersecurity incidents and near-misses in the past, and it is inevitable that additional incidents will occur in the future. Cybersecurity
risks are expected to increase, due to factors such as the increasing demand across the industry and customer expectations for continued expansion of
services delivered over the Internet; increasing reliance on Internet-based products, applications and data storage; and changes in ways of working by
the Barclays Bank Group’s employees, contractors, and third party service providers and suppliers and their subcontractors as a long-term consequence
of the COVID-19 pandemic. Bad actors have taken advantage of remote working practices and modified customer behaviours, exploiting the situation in
novel ways that may elude defences. Additionally, geopolitical turmoil may serve to increase the risk of a cyberattack that could impact Barclays directly,
or indirectly through its critical suppliers or national infrastructure. In 2022, the Barclays Bank Group faced a heightened risk of cyberattack as a result of
the Russian invasion of Ukraine.
Common types of cyberattacks include deployment of malware to obtain covert access to systems and data; ransomware attacks that render systems
and data unavailable through encryption and attempts to leverage business interruption or stolen data for extortion; novel or zero-day exploits; denial of
service and distributed denial of service (DDoS) attacks; infiltration via business email compromise; social engineering, including phishing, vishing and
smishing; automated attacks using botnets; third-party customer, vendor, service provider and supplier account take-over; malicious activity facilitated
by an insider; and credential validation or stuffing attacks using login and password pairs from unrelated breaches. A successful cyberattack of any type
has the potential to cause serious harm to the Barclays Bank Group or its clients and customers, including exposure to potential contractual liability,
claims, litigation, regulatory or other government action, loss of existing or potential customers, damage to the Barclays Bank Group’s brand and
reputation, and other financial loss. The impact of a successful cyberattack also is likely to include operational consequences (such as unavailability of
services, networks, systems, devices or data) remediation of which could come at significant cost.
Regulators worldwide continue to recognise cybersecurity as an increasing systemic risk to the financial sector and have highlighted the need for
financial institutions to improve their monitoring and control of, and resilience to, cyberattacks. A successful cyberattack may, therefore, result in
significant regulatory fines on the Barclays Bank Group. In addition, any new regulatory measures introduced to mitigate these risks are likely to result in
increased technology and compliance costs for the Barclays Bank Group.
For further details on the Barclays Bank Group’s approach to cyberattacks, see the operational risk performance section. For further details on
cybersecurity regulation applicable to the Barclays Bank Group, refer to the Supervision and regulation section.
c)New and emergent technology
Technology is fundamental to the Barclays Bank Group’s business and the financial services industry. Technological advancements present
opportunities to develop new and innovative ways of doing business across the Barclays Bank Group, with new solutions being developed both in-house
and in association with third-party companies. For example, payment services and securities, futures and options trading are increasingly occurring
electronically, both on the Barclays Bank Group’s own systems and through other alternative systems, and becoming automated. Whilst increased use
of electronic payment and trading systems and direct electronic access to trading markets could significantly reduce the Barclays Bank Group’s cost
base, it may, conversely, reduce the commissions, fees and margins made by the Barclays Bank Group on these transactions which could have a
material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects.
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 51

Introducing new forms of technology, however, has the potential to increase inherent risk. Failure to evaluate, actively manage and closely monitor risk
during all phases of business development and implementation could introduce new vulnerabilities and security flaws and have a material adverse effect
on the Barclays Bank Group’s business, results of operations, financial condition and prospects.
d)External fraud
The nature of fraud is wide-ranging and continues to evolve, as criminals seek opportunities to target the Barclays Bank Group’s business activities and
exploit changes in customer behaviour and product and channel use (such as the increased use of digital products and enhanced online services) or
exploit new products. Fraud attacks can be very sophisticated and are often orchestrated by organised crime groups who use various techniques to
target customers and clients directly to obtain confidential or personal information that can be used to commit fraud. The impact from fraud can lead to
customer detriment, financial losses (including the reimbursement of losses incurred by customers), loss of business, missed business opportunities
and reputational damage, all of which could have a material adverse impact on the Barclays Bank Group’s business, results of operations, financial
condition and prospects.
e)Data management and information protection
The Barclays Bank Group holds and processes large volumes of data, including personal information, financial data and other confidential information,
and the Barclays Bank Group’s businesses are subject to complex and evolving laws and regulations governing the privacy and protection of data ,
including Regulation (EU) 2016/679 (General Data Protection Regulation as it applies in the EU and the UK). This data could relate to: (i) the Barclays
Bank Group’s clients, customers, prospective clients and customers, and their employees; (ii) clients and customers of the Barclays Bank Group’s clients
and customers, and their employees; (iii) the Barclays Bank Group’s suppliers, counterparties and other external parties, and their employees; and (iv)
the Barclays Bank Group’s employees and prospective employees.
The international nature of both the Barclays Bank Group’s business and its IT infrastructure also means that data and personal information may be
available in countries other than those from where the information originated. Accordingly, the Barclays Bank Group must ensure that its collection, use,
transfer and storage of data, including personal information complies with all applicable laws and regulations in all relevant jurisdictions, which could: (i)
increase the Barclays Bank Group’s compliance and operating costs; (ii) impact the development of new products or services, or the offering of existing
products or services; (iii) affect how products and services are offered to clients and customers; (iv) demand significant oversight by the Barclays Bank
Group’s management; and (v) require the Barclays Bank Group to review some elements of the structure of its businesses, operations and systems in
less efficient ways.
Concerns regarding the effectiveness of the Barclays Bank Group’s measures to safeguard data, including personal information, or even the perception
that those measures are inadequate, could expose the Barclays Bank Group to the risk of loss or unavailability of data or data integrity issues and/or
cause the Barclays Bank Group to lose existing or potential clients and customers, and thereby reduce the Barclays Bank Group’s revenues. Furthermore,
any failure or perceived failure by the Barclays Bank Group to comply with applicable privacy or data protection laws and regulations may subject it to
potential contractual liability, claims, litigation, regulatory or other government action (including significant regulatory fines) and require changes to
certain operations or practices which could also inhibit the Barclays Bank Group’s development or marketing of certain products or services, or increase
the costs of offering them to customers. Any of these events could damage the Barclays Bank Group’s reputation, subject the Barclays Bank Group to
material fines or other monetary penalties, make the Barclays Bank Group liable to the payment of compensatory damages, divert management's time
and attention, lead to enhanced regulatory oversight and otherwise materially adversely affect its business, results of operations, financial condition and
prospects.
For further details on data protection regulation applicable to the Barclays Bank Group, refer to the supervision and regulation section.
f)Algorithmic trading
In some areas of the investment banking business, trading algorithms are used to price and risk manage client and principal transactions. An
algorithmic error could result in erroneous or duplicated transactions, a system outage, or impact the Barclays Bank Group’s pricing abilities, which
could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition, prospects and reputation.
g)Processing errors
The Barclays Bank Group’s businesses are highly dependent on its ability to process and monitor, on a daily basis, a very large number of transactions,
many of which are highly complex and occur at high volumes and frequencies, across numerous and diverse markets in many currencies. As the
Barclays Bank Group’s customer base and geographical reach expand and the volume, speed, frequency and complexity of transactions, especially
electronic transactions (as well as the requirements to report such transactions on a real-time basis to clients, regulators and exchanges) increase,
developing, maintaining and upgrading operational systems and infrastructure becomes more challenging, and the risk of systems or human error in
connection with such transactions increases, as well as the potential consequences of such errors due to the speed and volume of transactions involved
and the potential difficulty associated with discovering errors quickly enough to limit the resulting consequences. Furthermore, events that are wholly or
partially beyond the Barclays Bank Group’s control, such as a spike in transaction volume, could adversely affect the Barclays Bank Group’s ability to
process transactions or provide banking and payment services.
Processing errors could result in the Barclays Bank Group, among other things: (i) failing to provide information, services and liquidity to clients and
counterparties in a timely manner; (ii) failing to settle and/or confirm transactions; (iii) causing funds transfers, capital markets trades and/or other
transactions to be executed erroneously, illegally or with unintended consequences; and (iv) adversely affecting financial, trading or currency markets.
Any of these events could materially disadvantage the Barclays Bank Group’s customers, clients and counterparties (including them suffering financial
loss) and/or result in a loss of confidence in the Barclays Bank Group which, in turn, could have a material adverse effect on the Barclays Bank Group’s
business, results of operations, financial condition and prospects.
h)Supplier exposure
The Barclays Bank Group depends on suppliers for the provision of many of its services and the development of technology. Whilst the Barclays Bank
Group depends on suppliers, it remains fully accountable to its customers and clients for risks arising from the actions of suppliers and may not be able
to recover from its suppliers any amounts paid to customers and clients for losses suffered by them. The dependency on suppliers and sub-contracting
of outsourced services introduces concentration risk where the failure of specific suppliers could have an impact on the Barclays Bank Group’s ability to
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 52

continue to provide material services to its customers. Failure to adequately manage supplier risk could have a material adverse effect on the Barclays
Bank Group’s business, results of operations, financial condition and prospects.
i)Estimates and judgements relating to critical accounting policies and regulatory disclosures
The preparation of financial statements requires the application of accounting policies and judgements to be made in accordance with IFRS. Regulatory
returns and capital disclosures are prepared in accordance with the relevant capital reporting requirements and also require assumptions and estimates
to be made. The key areas involving a higher degree of judgement or complexity, or areas where assumptions are significant to the consolidated and
individual financial statements, include credit impairment provisions, taxes, fair value of financial instruments, pensions and post-retirement benefits,
and provisions including conduct and legal, competition and regulatory matters (refer to the notes to the audited financial statements for further
details). There is a risk that if the judgement exercised, or the estimates or assumptions used, subsequently turn out to be incorrect, this could result in
material losses to the Barclays Bank Group, beyond what was anticipated or provided for. Further development of accounting standards and regulatory
interpretations could also materially impact the Barclays Bank Group’s results of operations, financial condition and prospects.
j)Tax risk
The Barclays Bank Group is required to comply with the domestic and international tax laws and practice of all countries in which it has business
operations. There is a risk that the Barclays Bank Group could suffer losses due to additional tax charges, other financial costs or reputational damage as
a result of failing to comply with such laws and practice (including where the Barclays Bank Group’s interpretation of such laws differs from the
interpretation of tax authorities), or by failing to manage its tax affairs in an appropriate manner, with much of this risk attributable to the international
structure of the Barclays Bank Group. In addition, the introduction of new international tax regimes, increasing tax authority focus on reporting and
disclosure requirements around the world as well as the digitisation of the administration of tax have the potential to increase the Barclays Bank Group’s
tax compliance obligations further. The OECD and G20 Inclusive Framework on Base Erosion and Profit Shifting has announced plans to introduce a
global minimum tax from 2023. UK legislation to implement these rules is expected to apply to the Barclays Bank Group from 1 January 2024 which will
increase the Barclays Bank Group’s tax compliance obligations. In addition, the US enacted the Inflation Reduction Act in August 2022 which introduced
a corporate alternative minimum tax on adjusted financial statement income effective from 1 January 2023. These new tax regimes may require
systems and process changes. Any systems and process changes introduce additional operational risk.
k)Ability to hire and retain appropriately qualified employees
As a regulated financial institution, the Barclays Bank Group requires diversified and specialist skilled colleagues. The Barclays Bank Group’s ability to
attract, develop and retain a diverse mix of talent is key to the delivery of its core business activity and strategy. This is impacted by a range of external
and internal factors, such as macroeconomic factors, labour and immigration policy in the jurisdictions in which the Barclays Bank Group operates,
industry-wide headcount reductions in particular sectors, regulatory limits on compensation for senior executives and the potential effects on employee
engagement and wellbeing from long-term periods of working remotely. Failure to attract or prevent the departure of appropriately qualified and skilled
employees could have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects.
Additionally, this may result in disruption to service which could in turn lead to customer detriment and reputational damage.
For further details on the Barclays Bank Group’s approach to operational risk, refer to the operational risk management and operational risk
performance section s.
vi)Model risk
Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. The Barclays Bank Group
relies on models to support a broad range of business and risk management activities, including informing business decisions and strategies, measuring
and limiting risk, valuing exposures (including the calculation of impairment), conducting stress testing, calculating RWAs and assessing capital
adequacy, supporting new business acceptance, risk and reward evaluation, managing client assets, and meeting reporting requirements.
Models are, by their nature, imperfect representations of reality and have some degree of uncertainty because they rely on assumptions and inputs, and
so are subject to intrinsic uncertainty, errors and inappropriate use affecting the accuracy of their outputs. This may be exacerbated when dealing with
unprecedented scenarios, as was the case during the COVID-19 pandemic, due to the lack of reliable historical reference points and data. For instance,
the quality of the data used in models across the Barclays Bank Group has a material impact on the accuracy and completeness of its risk and financial
metrics. Model uncertainty, errors and inappropriate use may result in (among other things) the Barclays Bank Group making inappropriate business
decisions and/or inaccuracies or errors in the Barclays Bank Group’s risk management and regulatory reporting processes. This could result in
significant financial loss, imposition of additional capital requirements, enhanced regulatory supervision and reputational damage, all of which could
have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects.
For further details on the Barclays Bank Group’s approach to model risk, refer to the model risk management and model risk performance sec tions.
vii)Conduct risk
Conduct risk is the risk of poor outcomes for, or harm to, customers, clients and markets, arising from the delivery of the Barclays Bank Group's
products and services. This risk could manifest itself in a variety of ways, including:
a)Market conduct
The Barclays Bank Group’s businesses are exposed to risk from potential non-compliance with its policies and standards and instances of wilful and
negligent misconduct by employees, all of which could result in potential customer and client detriment, enforcement action (including regulatory fines
and/or sanctions), increased operation and compliance costs, redress or remediation or reputational damage which in turn could have a material
adverse effect on the Barclays Bank Group’s business, financial condition and prospects. Examples of employee misconduct which could have a material
adverse effect on the Barclays Bank Group’s business include: (i) improperly selling or marketing the Barclays Bank Group’s products and services; (ii)
engaging in insider trading, market manipulation or unauthorised trading; or (iii) misappropriating confidential or proprietary information belonging to
the Barclays Bank Group, its customers or third parties. These risks may be exacerbated in circumstances where the Barclays Bank Group is unable to
rely on physical oversight and supervision of employees, noting the move to a hybrid working model for many colleagues.
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 53

b)Customer protection
The Barclays Bank Group must ensure that its customers, particularly those that are vulnerable, are able to make well-informed decisions on how best
to use the Barclays Bank Group’s financial services and understand the protection available to them if something goes wrong. Poor customer outcomes
can result from the failure to: (i) communicate fairly and clearly with customers; (ii) provide services in a timely and fair manner; (iii) handle and protect
customer data appropriately; and (iv) undertake appropriate activity to address customer detriment, including the adherence to regulatory and legal
requirements on complaint handling. The Barclays Bank Group is at risk of financial loss and reputational damage as a result.
A key area of focus is the implementation and embedment of the FCA’s new Consumer Duty, with rules for products and services due to take effect at
the end July 2023. This will impact areas including governance and accountability, Management Information and reporting, communications, product
design and end-to-end customer journeys. The Barclays Bank Group may be required to incur significant additional expense in connection with this
regulatory change.
c)Product design and review risk
Products and services must meet the needs of clients, customers, markets and the Barclays Bank Group throughout their life cycle. However, there is a
risk that the design and review of the Barclays Bank Group products and services fail to reasonably consider and address potential or actual negative
outcomes for customers, which may result in customer detriment, enforcement action (including regulatory fines and/or sanctions), redress and
remediation and reputational damage. Both the design and review of products and services are a key area of focus for regulators and the Barclays Bank
Group.
d)Financial crime
The Barclays Bank Group may be adversely affected if it fails to effectively mitigate the risk that third parties or its employees facilitate, or that its
products and services are used to facilitate, financial crime (money laundering, terrorist financing, breaches of economic and financial sanctions, bribery
and corruption, and the facilitation of tax evasion). UK and US government agencies and regulators continue to focus on combating financial crime.
Failure to comply may lead to enforcement action by the Barclays Bank Group’s regulators, including severe penalties, which may have a material
adverse effect on the Barclays Bank Group’s business, financial condition, prospects and reputation.
e)Conflicts of interest
Identifying and managing conflicts of Interest is fundamental to the conduct of the Barclays Bank Group's business, relationships with c ustomers, and
the markets in which the Barclays Bank Group operates. Understanding the conflicts of Interest that impact or potentially impact the Barclays Bank
Group enables them to be handled appropriately. Even if there is no evidence of improper actions, a Conflict of Interest can create an appearance of
impropriety that undermines confidence in the Barclays Bank Group and its Empl oyees. If the Barclays Bank Group does not identify and manage
conflicts of Interest (business or personal) appropriately, it could have an adv erse effect on the Barclays Bank Group’s business, customers and the
markets within which it operates.
f)Regulatory focus on culture and accountability
Regulators around the world continue to emphasise the importance of culture and personal accountability and enforce the adoption of adequate
internal reporting and whistleblowing procedures to help to promote appropriate conduct and drive positive outcomes for customers, colleagues,
clients and markets. The requirements and expectations of the UK Senior Managers Regime, Certification Regime and Conduct Rules reinforce
additional accountabilities for individuals across the Barclays Bank Group with an increased focus on governance and rigour, with similar requirements
also introduced in other jurisdictions globally. Failure to meet these requirements and expectations may lead to regulatory sanctions, both for the
individuals and the Barclays Bank Group.
For further details on the Barclays Bank Group’s approach to conduct risk, refer to the conduct risk management and conduct risk performance
sections.
viii)Reputation risk
Reputation risk is the risk that an action, transaction, investment, event, decision, or business relationship will reduce trust in the Barclays Bank Group’s
integrity and/or competence.
Any material lapse in standards of integrity, compliance, customer service or operating efficiency may represent a potential reputation risk. Stakeholder
expectations constantly evolve, and so reputation risk is dynamic and varies between geographical regions, groups and individuals. A risk arising in one
business area can have an adverse effect upon the Barclays Bank Group’s overall reputation and any one transaction, investment or event (in the
perception of key stakeholders) can reduce trust in the Barclays Bank Group’s integrity and competence. The Barclays Bank Group’s association with
sensitive topics and sectors has been, and in some instances continues to be, an area of concern for stakeholders, including: (i) the financing of, and
investments in, businesses which operate in sectors that are sensitive because of their relative carbon intensity or local environmental impact; (ii)
potential association with human rights violations (including combating modern slavery) in the Barclays Bank Group’s operations or supply chain and
by clients and customers; and (iii) the financing of businesses which manufacture and export military and riot control goods and services.
Reputation risk could also arise from negative public opinion about the actual, or perceived, manner in which the Barclays Bank Group (including its
employees, clients and other associations) conducts its business activities, or the Barclays Bank Group’s financial performance, as well as actual or
perceived practices in banking and the financial services industry generally. Modern technologies, in particular online social media channels and other
broadcast tools that facilitate communication with large audiences in short time frames and with minimal costs, may significantly enhance and
accelerate the distribution and effect of damaging information and allegations. Negative public opinion may adversely affect the Barclays Bank Group’s
ability to retain and attract customers, in particular, corporate and retail depositors, and to retain and motivate staff, and could have a material adverse
effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects.
In addition to the above, reputation risk has the potential to arise from operational issues or conduct matters which cause detriment to customers,
clients, market integrity, effective competition or the Barclays Bank Gr oup (refer to ‘v) Operational risk’ above).
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 54

For further details on the Barclays Bank Group’s approach to reputation risk, refer to the reputation risk management and reputation risk performance
sections.
ix)Legal risk and legal, competition and regulatory matters
The Barclays Bank Group's conducts activities in a highly regulated global market which exposes it and its employees to legal risk arising from: (i) the
multitude of laws and regulations that apply to the businesses it operates, which are highly dynamic, may vary between jurisdictions and/or conflict,
and may be unclear in their application to particular circumstances especially in new and emerging areas; and (ii) the diversified and evolving nature of
the Barclays Bank Group’s businesses and business practices. In each case, this exposes the Barclays Bank Group and its employees to the risk of loss or
the imposition of penalties, damages or fines from the failure of members of the Barclays Bank Group to meet their respective obligations, including
legal, regulatory or contractual requirements. Legal risk may arise in relation to any number of the material existing and emerging risks identified above.
A breach of applicable legislation and/or regulations by the Barclays Bank Group or its employees could result in criminal prosecution, regulatory
censure, potentially significant fines and other sanctions in the jurisdictions in which the Barclays Bank Group operates. Where clients, customers or
other third parties are harmed by the Barclays Bank Group’s conduct, this may also give rise to civil legal proceedings, including class actions. Other
legal disputes may also arise between the Barclays Bank Group and third parties relating to matters such as breaches or enforcement of legal rights or
obligations arising under contracts, statutes or common law. Adverse findings in any such matters may result in the Barclays Bank Group being liable to
third parties or may result in the Barclays Bank Group’s rights not being enforced or not being enforced in the manner intended or desired by the
Barclays Bank Group.
Details of legal, competition and regulatory matters to which the Barclays Bank Group is currently exposed are set out in Note 25. In addition to matters
specifically described in Note 25, the Barclays Bank Group is engaged in various other legal proceedings which arise in the ordinary course of business.
The Barclays Bank Group is also subject to requests for information, investigations and other reviews by regulators, governmental and other public
bodies in connection with business activities in which the Barclays Bank Group is, or has been, engaged and may (from time to time) be subject to legal
proceedings and other investigations relating to financial and non-financial disclosures made by members of the Barclays Bank Group (including, but
not limited to, in relation to ESG disclosures). Additionally, due to the increasing number of new climate and sustainability-related laws and regulations
(or laws and regulatory processes seeking to protect the energy sector from any risks of divestment or challenges in accessing finance), growing
demand from investors and customers for environmentally sustainable products and services, and regulatory scrutiny, financial institutions, including
the Barclays Bank Group, may through their business activities face increasing litigation, conduct, enforcement and contract liability risks related to
climate change, environmental degradation and other social, governance and sustainability-related issues. Furthermore, there is a risk that shareholders,
campaign groups, customers and other interest groups could seek to take legal action against the Barclays Bank Group for financing or contributing to
climate change and environmental degradation.
The outcome of legal, competition and regulatory matters, both those to which the Barclays Bank Group is currently exposed and any others which may
arise in the future, is difficult to predict (and any provision made in the Group’s financial statements relating to those matters may not be sufficient to
cover actual losses). I n connection with such matters, the Barclays Bank Group may incur significant expense, regardless of the ultimate outcome, and
any such matters could expose the Barclays Bank Group to any of the following outcomes: substantial monetary damages, settlements and/or fines;
remediation of affected customers and clients; other penalties and injunctive relief; additional litigation; criminal prosecution; the loss of any existing
agreed protection from prosecution; regulatory restrictions on the Barclays Bank Group’s business operations including the withdrawal of
authorisations; increased regulatory compliance requirements or changes to laws or regulations; suspension of operations; public reprimands or
censure; loss of significant assets or business; a negative effect on the Barclays Bank Group’s reputation; loss of confidence by investors, counterparties,
clients and/or customers; risk of credit rating agency downgrades; potential negative impact on the availability and/or cost of funding and liquidity;
and/or dismissal or resignation of key individuals. In light of the uncertainties involved in legal, competition and regulatory matters, there can be no
assurance that the outcome of a particular matter or matters (including formerly active matters or those arising after the date of this Annual Report) will
not have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition and prospects.
Risk review
Material existing and emerging risks

home.barclays/annualreport | Barclays Bank PLC Annual Report | 55

Climate risk The impact on Financial and Operational Risks arising from climate change through, physical risks, risks associated with transitioning to a lower carbon economy and connected risks arising as a result of second order impacts of these two drivers on portfolios.

Overview
Given the risks associated with climate change, and to support the Barclays Group’s ambition to be a net zero bank by 2050, climate risk became a
Principal Risk in January 2022. To support the embedment of the Principal Risk, in 2022 the Barclays Group delivered a Climate Risk Plan with three
overarching objectives:
1. Governance Frame work: Establish a Climate Risk Committee (CRC), a Climate Risk Controls Forum, and refresh the Board Risk Committee reporting.
2. Scenario Analysis: Build out the vision and plan for undertaking scenario analysis exercises. This involved developing a climate scenario analysis
framework.
3. Carbon Modelling: Expand the BlueTrack TM model for measuring and tracking financed emissions to cover our automobiles and residential real estate
portfolios, in addition to energy, power, cement and steel.
Organisation and Structure
On behalf of the Barclays PLC Board, the Barclays PLC Board Risk Committee reviews and approves the Barclays Group’s approach to managing the
financial and operational risks associated with climate change. Reputation risk is the responsibility of the Barclays PLC Board, which directly handles the
most material issues facing the Barclays Group. Broader sustainability matters and other reputation risk issues associated with climate change are
coordinated by the Sustainability team. The Barclays Group Head of Climate Risk reports directly to Group Chief Risk Officer.
The Barclays Group Risk Committee (‘GRC’) is the most senior executive body responsible for review and challenge of risk practices and risk profile, for
climate risk and other principal risk types. To support the oversight of Barclays Group climate risk profile, a Climate Risk Committee (CRC) has been
established, as a sub-committee of GRC. Authority of the CRC is delegated by the GRC.
CRC is chaired by Head of Climate Risk. CRC has reviewed and approved a range of updates including a refreshed Climate Risk Vision, updates from
each of the financial and operational risks and from the material legal entities of Barclays, along with key regulatory, policy and legal themes, the risk
register and appetite statement and constraint, and reviewed the control environment.
The Climate Risk Control Forum (CRCF) was established in July 2022 and escalates to GRC via the Group Controls Committee. The purpose of the CRCF
is to oversee the consistent and effective implementation and operation of the Barclays Controls Framework as relating to Climate risk. It reviews the
control environment relating to Climate risk, including risk events, policy and issues management. Climate risk assurance groups have been established
and are responsible for performing Climate risk specific reviews to ensure we are continually improving and addressing identified issues in our risk
practices.
Barclays entities, namely Barclays Bank UK PLC, Barclays Bank PLC, Barclays Bank Ireland PLC and the US Intermediate Holding Company, also
continued to implement climate risk within their frameworks, where Heads of Climate Risk have been appointed.
The elevation of climate risk to Principal Risk included establishing the following:
•A Climate Risk Framework that defines climate risk an d summarises the approach to identification, measurement, monitoring and reporting of climate
risk.
•Climate Risk Appetite and constraint at Barclays Group level established in line with the Barclays Group’s risk appetite approach and informed by
scenario analysis.
Risk review
Principal risk management

home.barclays/annualreport | Barclays Bank PLC Annual Report | 56

•A Climate Risk Register is used to inform risk appetite. This includes a breakdown of key risk drivers for physical and transition risks, and materiality
ratings which are inferred from the results of the 2020 climate Internal Stress Test and the 2021 Bank of England’s Climate Biennial Exploratory
Scenario (CBES). The Climate Risk Register continues to align with the Barclays Bank Group's Risk Register Taxonomy.
Climate R isk across Financial and Operational Risks is managed via a Climate Change Financial Risk and Operational Risk Policy (CCFOR), which is
embedded in each of the Financial and Operational Principal Risk Frameworks.
Climate R isks across Model, Conduct, Reputation and Legal Principal Risks are out of the scope of the CRF and continue to be managed under their
respective Principal Risk Frameworks.
The table below sets out how C limate Risk is integrated across Barclays using the ERMF aligned Climate Risk Framework, CCFOR and the Climate
Change Standard.

| Governance | Enterprise Risk Framework (ERMF) |
| Climate Risk Framework (CRF) |  | Reputation Risk Management Framework (RRMF) |
| Board Risk Committee (BRC) |  | Board |
| Risk | Credit, market, treasury & capital and operational risks |  | Sustainability matters and reputation risk associated with climate change |
| Ownership | Group Risk Committee (GRC) |  | Global Head of Public Policy and Corporate Responsibility |
| Climate Risk Committee (CRC) |  |  |

Risk appetite
In 2022, as part of establishing a principal risk, Barclays defined a risk appetite statement and constraint for climate risk. The statement outlines that
Barclays views climate change as a driver of financial and operational risk. Barclays has appetite to manage climate risk in line with its climate ambition
and to reduce financed emissions in line with disclosed targets. Targets to 2025 are set for energy and power. Targets to 2030 are set for energy, power,
cement, steel and auto manufacturing.
An assessment of progress to reduce financed emissions against the disclosed targets was made. It noted that reaching even the lower emissions
reduction in the disclosed ranges may prove challenging and that a clearer forward plan be defined to set out the range of management actions that
could be taken to meet the disclosed target ranges, including a more detailed understanding of client transition expectations and the external
dependencies and variables beyond Barclays control that may determine the pace of transition. For more detail on Barclays disclosed targets see Climate
and Sustainability section of the Barclays PLC Annual Report.
Risk review
Principal risk management

home.barclays/annualreport | Barclays Bank PLC Annual Report | 57

Enterprise Risk Management Framework (ERMF)
Climate Risk Framework
|  | Climate Change Financial Risk and Operational Risk Policy | Climate Change Standard
| Climate Risk | Credit Risk | Market Risk | Treasury and Capital Risk | Operational Risk | Reputation Risk
Responsibilities | Provide climate horizon scanning information and emerging trends to BRC and Principal Risk Leads Recommend risk appetite statement, constraints and exclusions to BRC Define areas of concern and recommend scenario analysis priorities Lead the development of climate-specific risk methodologies Interpret stress test results for relevance as drivers of risk Review and challenge risk type approaches and support consistency across risk types Aggregate and monitor a central climate risk view across in scope risk types | Monitor portfolio level exposure to the physical and transition risks of climate change Review individual obligors’ exposure to climate risk via the Climate Lens questionnaire Assess climate risk within Sovereign Credit Risk reviews Include material exposures to climate risk within the Internal Capital Adequacy Assessment Process (ICAAP) Oversight by Legal Entity Climate Risk Forums and relevant Risk Management Committees as appropriate, including regular climate risk reporting up to Board Risk Committee level | Identify and Assess climate-related risk factors Apply stress scenarios, assess stress losses and set risk limits Oversight by Market Risk Committee and Board Risk Committee | Identify exposure to climate risk Consider key risk indicators and limits to support risk management Include in ICAAP and Internal Liquidity Adequacy Assessment Process (ILAAP) Oversight by Treasury & Capital Risk Committee and Board Risk Committee | Integrate climate change across different risk categories, e.g. Operational Recovery Planning and Premises Include climate change within risk assessment processes including Strategic Risk Assessment | Outline minimum requirements and controls for Reputation Risk management relating to client relationships or transactions Outline the expected business behaviours in relation to these issues Outline the approach to enhanced due diligence.
Ownership | Climate Risk Accountable Officer | Credit Risk Accountable Officer | Market Risk Accountable Officer | Treasury & Capital Risk Accountable Officer | Operational Risk Accountable Officer | Group Head of Sustainability

Risk review
Principal risk management

home.barclays/annualreport | Barclays Bank PLC Annual Report | 58

Climate-related Risk Management Processes
| Credit Risk | Market Risk | Treasury and Capital Risk | Operational Risk
Frequency of assessment | Annually | Quarterly | Various (quarterly for pensions, IRRBB and liquidity risk; annually for capital risk) | Annually
Risk identification | Exposure in mortgage portfolio identified through a concentration risk framework. Exposure in Barclays Bank Group identified as part of sovereign, portfolio and obligor credit annual reviews. | Identified by assessing climate-related risk factors across asset classes, sectors and geographies, and aggregating market risk exposures from climate-related risks. | Identified through risk assessment activity across certain industries and asset classes to analyse and assess exposures which may be impacted by climate-related risks. | Confirmed operational risks associated with climate change are included in the Barclays Group's Operational Risk Taxonomy. Climate risks are included within the Strategic Risk Assessment process.
Risk assessment | Portfolios are monitored through regular reporting of climate metrics and are assessed against mandates and limits where appropriate. Clients in elevated risk sectors above a threshold exposure will have their credit risk exposure to Climate Risk qualitatively assessed through the Credit Climate Lens questionnaire. Future exposure to Climate Risk as a driver to Credit Risk is quantified through scenario analysis and stress testing exercises. In addition to the Credit Climate Lens questionnaire, Sovereign Credit Reviews are also carried out for Sovereigns above a threshold exposure to assess their susceptibility to Climate risks. | Measured by using adverse multi-asset stress scenarios applied to individual risk factors reflecting climate change risks across sectors, countries and regions. | Measured as part of stress testing and key risk indicator monitoring | Established reporting on internal and external climate-related risk events to the Climate Risk Control Forum. Risk tolerances for premises and resilience risks are reviewed so these adequately capture climate- related risk drivers.

Credit risk management (audited) The risk of loss to the Barclays Bank Group from the failure of clients, customers or counterparties, including sovereigns, to fully honour their obligations to the Barclays Bank Group, including the whole and timely payment of principal, interest, collateral and other receivables.

Overview
The credit risk that the Barclays Bank Group faces arises from wholesale and retail loans and advances together with the counterparty credit risk arising
from derivative contracts with clients; trading activities, including: debt securities, settlement balances with market counterparties, FVO CI (fair value
through other comprehensive income) asse ts and reverse repurchase loans.
Credit risk management objectives are to:
▪maintain a framework of co ntrols to oversee credit risk
▪identify, assess and measure credit risk clearly and accurately across the Barclays Bank Group and within each separate business, from the level of
individual facilities up to the total portfolio
▪control and plan credit risk taking in line with external stakeholder expectations and avoiding undesirable concentrations
▪monitor credit risk and adherence to agreed controls.
Organisation, roles and responsibilities
The first line of defence has primary responsibility for managing credit risk within the risk appetite and limits set by the Risk function, supported by a
defined set of policies, standards and controls. In the Barclays Bank Group, business risk committees (attended by the first line) monitor and review the
credit risk profile of each business unit where the most material issues are escalated to the Retail Credit Risk Management Committee, Wholesale Credit
Risk Management Committee and the Barclays Group Risk Committee.
Wholesale and retail portfolios are managed separately to reflect the differing nature of the assets; wholesale balances tend to be larger and are
managed on an individual basis, while retail balances are greater in number but lesser in value and are, therefore, managed in aggregated segments.
The responsibilities of the credit risk management teams in the businesses, the sanctioning team and other shared services include: sanctioning new
credit agreements (principally wholesale); setting strategies for approval of transactions (principally retail); setting risk appetite; monitoring risk against
limits and other parameters; setting recession readiness frameworks to protect portfolios in the event of economic stress, maintaining robust processes,
Risk review
Principal risk management

home.barclays/annualreport | Barclays Bank PLC Annual Report | 59

data gathering, quality, storage and reporting methods for effective credit risk management; performing effective turnaround and workout scenarios for
wholesale portfolios via dedicated restructuring and recoveries teams; maintaining robust collections and recovery processes/units for retail portfolios.
The credit risk management teams in the Barclays Bank Group are accountable to the Barclays Bank PLC CRO, who reports to the Barclays Group CRO.
For wholesale portfolios, credit risk managers are organised in sanctioning teams by geography, industry and/or product. In wholesale portfolios, credit
risk approval is undertaken by experienced credit risk professionals operating within a clearly defined delegated authority framework, with only the most
senior credit officers assigned the higher levels of delegated authority. The largest credit exposures, which are outside the Risk Sanctioning Unit or Risk
Distribution Committee authority, require the support of the Barclays Bank PLC Senior Credit Officers. For exposures in excess of the Barclays Bank PLC
Senior Credit Officers’ authority, approval by the Barclays Group Senior Credit Officer/Barclays PLC Board Risk Committee is also required. The Barclays
Group Credit Risk Committee, attended by the Barclays Bank PLC Senior Credit Officers, provides a formal mechanism for the Barclays Group Senior
Credit Officer to exercise the highest level of credit authority over the most material Barclays Group single name exposures.
Credit risk mitigation
The Barclays Bank Group employs a range of techniques and strategies to actively mitigate credit risks. These can broadly be divided into three types:
▪netting and set-off
▪collateral
▪risk transfer.
Netting and set-off
Credit risk exposures can be reduced by applying netting and set-off. For derivative transactions, the Barclays Bank Group’s normal practice is to enter
into standard master agreements with counterparties (e.g. ISDAs). These master agreements typically allow for netting of credit risk exposure to a
counterparty resulting from derivative transactions against the obligations to the counterparty in the event of default, and so produce a lower net credit
exposure. These agreements may also reduce settlement exposure (e.g. for foreign exchange transactions) by allowing payments on the same day in
the same currency to be set-off against one another.
Collateral
The Barclays Bank Group has the ability to call on collateral in the event of default of the counterparty, comprising:
▪home loans: a fixed charge over residential property in the form of houses, flats and other dwellings
▪wholesale lending: a fixed charge over commercial property and other physical assets, in various forms
▪other retail lending: includes charges over motor vehicles and other physical assets; second lien charges over residential property and finance lease
receivables
▪derivatives: the Barclays Bank Group also often seeks to enter into a margin agreement (e.g. Credit Support Annex) with counterparties with which
the Barclays Bank Group has master netting agreements in place. These annexes to master agreements provide a mechanism for further reducing
credit risk, whereby collateral (margin) is posted on a regular basis (typically daily) to collateralise the mark to market exposure of a derivative
portfolio measured on a net basis.
▪reverse repurchase agreements: collateral typically comprises highly liquid securities which have been legally transferred to the Barclays Bank Group
subject to an agreement to return them for a fixed pri ce.
▪financial guarantees and similar off-balance sheet commitments: cash collateral may be held against these arrangements.
Risk transfer
A range of instruments including guarantees, credit insurance, credit derivatives and securitisation can be used to transfer credit risk from one
counterparty to another. These mitigate credit risk in two main ways:
▪if the risk is transferred to a counterparty which is more creditworthy than the original counterparty, then overall credit risk is reduc ed.
▪where recourse to the first counterparty remains, both counterparties must default before a loss materialises. This is less likely than the default of
either counterparty individually so credit risk is reduced.

Market risk management (audited) The risk of loss arising from potential adverse changes in the value of the Barclays Bank Group’s assets and liabilities from fluctuation in market variables including, but not limited to, interest rates, foreign exchange, equity prices, commodity prices, credit spreads, implied volatilities and asset correlations.

Overview
Market risk arises primarily as a result of client facilitation in wholesale markets, involving market making activities, risk management solutions and
execution of syndications. Upon execution of a trade with a client, the Barclays Bank Group will look to hedge against the risk of the trade moving in an
adverse direction. Mismatches between client transactions and hedges result in market risk due to changes in asset prices, volatility or correlations.
Organisation, roles and responsibilities
Market risk in the businesses resides primarily in CIB and Treasury. These businesses have the mandate to assume market risk. The front office and
Treasury trading desks are responsible for managing market risk on a day-to-day basis, where they are required to understand and adhere to all limits
applicable to their businesses. The Market Risk team supports the trading desks with the day-to-day limit management of market risk exposures
through governance processes which are outlined in supporting market risk policies and standards.
Market risk oversight and challenge is provided by business committees and Barclays Group committees, including the Market Risk Committee (MRC).
Risk review
Principal risk management

home.barclays/annualreport | Barclays Bank PLC Annual Report | 60

The objectives of market risk management are to:
▪identify, understand and control market risk by robust measurement, limit setting, reporting and oversight
▪facilitate business growth within a controlled and transparent risk management framework
▪control market risk in the businesses according to the allocated appetite.
To meet the above objectives, a governance structure is in place to manage these risks consistent with the ERMF.
The Barclays Bank PLC Board Risk Committee recommends market risk appetite to the Barclays Bank PLC Board for their approval, within the
parameters set by the Barclays PLC Board.
The Market Risk Committee (MRC) reviews and makes recommendations concerning the Barclays Group-wide market risk profile. This includes
overseeing the operation of the Market Risk Framework and associated policies and standards, monitoring market and regulatory changes, and
reviewing limit utilisation levels. The committee is chaired by the Market Risk Principal Risk Lead and attendees include the business heads of market
risk and business aligned market risk managers.
In addition to MRC, the Corporate and Investment Bank Risk Committee (CIBRC) is the main forum in which market risk exposures are discussed and
reviewed with senior business heads. The Committee is chaired by the CRO of Barclays International and meets weekly, covering current market events,
notable market risk exposures, and key risk topics. New business initiatives are generally socialised at CIBRC before any changes to risk appetite or
associated limits are considered in other governance committees.
Management value at risk (VaR)
VaR is an estimate of the potential loss arising from unfavourable market movements if the current positions were to be held unchanged for one
business day. For internal market risk management purposes, a historical simulation methodology with a one-year equally weighted historical period, at
the 95% confidence level is used for all trading books and some banking books.
Limits are applied at the total level as well as by risk factor type, which are then cascaded down to particular trading desks and businesses by the market
risk management function.
See pages 112 to 113 for a review of management VaR.

Treasury and capital risk management This comprises: Liquidity risk: The risk that the Barclays Bank Group is unable to meet its contractual or contingent obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. Capital risk: The risk that the Barclays Bank Group has an insufficient level or composition of capital to support its normal business activities and to meet its regulatory capital requirements under normal operating environments and stressed conditions (both actual and as defined for internal planning or regulatory testing purposes). This also includes the risk from the Barclays Bank Group’s pension plans. Interest rate risk in the banking book: The risk that the Barclays Bank Group is exposed to capital or income volatility because of a mismatch between the interest rate exposures of its (non-traded) assets and liabilities.

The Treasury function manages treasury and capital risk exposure on a day-to-day basis, acting as the principal management body for the Barclays
Bank Group. The Treasury and Capital Risk function is responsible for oversight and provides insight into key capital, liquidity, interest rate risk in the
banking book (IRRBB) and pension risk management activities.
Liquidity risk management (audited)
Overview
The efficient management of liquidity is essential to Barclays Bank PLC in order to retain the confidence of the financial markets and maintain the
sustainability of the business. Treasury and Capital Risk have created a framework that is used to manage all liquidity risk exposures under both normal
and stressed conditions. The framework is designed to maintain liquidity resources that are sufficient in amount, tenor, quality and composition to
remain within the liquidity risk appetite as expressed by the Barclays Bank PLC Board. The liquidity risk appetite is monitored against both internal and
regulatory liquidity metrics.
Organisation, roles and responsibilities
Treasury has the primary responsibility for managing liquidity risk within the set risk appetite. Both Risk and Treasury contribute to the production of the
Internal Liquidity Adequacy Assessment Process (ILAAP). The Treasury and Capital Risk function is responsible for the management and governance of
the liquidity risk mandate, as defined by the Barclays Bank PLC Board.
The framework established by Treasury and Capital Risk is designed to deliver the appropriate term and structure of funding, consistent with the
liquidity risk appetite set by the Barclays Bank PLC Board. The framework incorporates a range of ongoing business management tools to monitor, limit
and stress test the Barclays Bank PLC balance sheet, contingent liabilities and recovery plan. Limit setting and transfer pricing are tools that are designed
to control the level of liquidity risk taken and drive the appropriate mix of funds. Adherence to limits reduces the likelihood that a liquidity stress event
could lead to an inability to meet the Barclays Bank Group’s obligations as they fall due.
The Barclays Bank PLC Board approves the Barclays Bank PLC funding plan, internal stress tests, regulatory stress tests, recovery plan and liquidity risk
appetite. Barclays Bank PLC’s Treasury Committee is responsible for monitoring and managing liquidity risk in line with Barclays Bank PLC’s funding
management objectives, funding plan and risk appetite. The Barclays Group Treasury and Capital Risk Committee monitors and reviews the liquidity risk
profile and control environment, providing second line oversight of the management of liquidity risk. The Barclays Bank PLC Board Risk Committee
Risk review
Principal risk management

home.barclays/annualreport | Barclays Bank PLC Annual Report | 61

reviews the risk profile, and reviews liquidity risk appetite at least annually and the impact of stress scenarios on Barclays Bank PLC’s funding plan/
forecast in order to agree risk appetite in line with Barclays Bank PLC’s projected funding abilities.
Capital risk management (audited)
Overview
Capital risk is managed through ongoing monitoring and management of the capital position, regular stress testing and a robust capital governance
framework. The objectives of the framework are to maintain adequate capital for the Barclays Bank Group and its legal entities to withstand the impact
of the risks that may arise under normal and stressed conditions, and maintain adequate capital to cover current and forecast business needs and
associated risks to provide a viable and sustainable business offering.
Organisation, roles and responsibilities
Treasury has the primary responsibility for managing and monitoring capital adequacy. The Barclays Bank Group Treasury and Capital Risk function
provides oversight of capital risk. Production of the Barclays Bank PLC Internal Capital Adequacy Assessment Process (ICAAP) is the responsibility of
Treasury.
Capital risk management is underpinned by a control framework and policy. The capital management strategy, outlined in the relevant legal entity
capital plans, is developed in alignment with the control framework and policy for capital risk, and is implemented consistently in order to deliver on the
Barclays Bank Group’s objectives, which are aligned to those of the Barclays Group.
The Barclays Bank PLC Board approves the Barclays Bank PLC capital plan, internal stress tests and results of regulatory stress tests and those of the
relevant Barclays Bank Group entities. The Barclays PLC Board also approves the Barclays Group recovery plan which takes into account management
actions identified at the Barclays Bank Group level. The Barclays Bank PLC Treasury Committee and the Barclays Group Treasury Committee are
responsible for monitoring and managing capital risk in line with Barclays Bank Group’s capital management objectives, capital plan and risk
frameworks. The BRC monitors and reviews the capital risk profile and control environment, providing second line oversight of the management of
capital risk.
For the relevant Barclays Bank Group subsidiaries, local management assures compliance with an entity’s minimum regulatory capital requirements by
reporting to local Asset and Liability Committees (or equivalents) with oversight by the Barclays Bank PLC Treasury Committee and the Barclays Group
Treasury Committee, as required. In 2022, Barclays complied with all regulatory minimum capital requirements.
Pension risk
The Barclays Bank Group maintains a number of defined benefit pension schemes for past and current employees. The ability of schemes to meet
pension payments is achieved with investments and contributions.
Pension risk arises because the market value of pension fund assets might decline; investment returns might reduce; or the estimated value of pension
liabilities might increase. The Barclays Bank Group monitors the pension risks arising from its defined benefit pension schemes and works with the
relevant pension fund’s trustees to address shortfalls. In these circumstances the Barclays Bank Group could be required or might choose to make extra
contributions to the pension fund. The Barclays Bank Group’s main defined benefit scheme was closed to new entrants in 2012.
Interest rate risk in the banking book management (IRRBB)
Overview
Interest rate risk in the banking book is driven by customer deposit taking and lending activities, investments in the liquid asset portfolio and funding
activities. As per the Barclays Bank Group’s policy to remain within the defined risk appetite, hedging strategies are executed to mitigate the various
IRRBB risks that result from these activities. However, the Barclays Bank Group remains susceptible to interest rate risk and other non-traded market
risks from the following key sources:
▪Interest rate and repricing risk: the risk that net interest income could be adversely impacted by a change in interest rates, differences in the timing of
interest rate changes between assets and liabilities, and other constraints on interest rate changes as per product terms and conditions.
▪Customer behavioural risk: the risk that net interest income could be adversely impacted by the discretion that customers and counterparties may
have in respect of being able to vary from their contractual obligations with the Barclays Bank Group. This risk is often referred to by industry
regulators as ‘embedded option risk’.
▪Investment risks in the liquid asset portfolio: the risk that the fair value of assets held in the liquid asset portfolio and associated risk management
portfolios could be adversely impacted by market volatility, creating volatility in capital directly.
Organisation, roles and responsibilities
The Barclays Bank PLC Treasury Committee and the Barclays Group Treasury Committ ee are responsible for monitoring and managing IRRBB risk in
line with the Barclays Bank Group’s management objectives and risk frameworks. The BRC and Treasury and Capital Risk Committee monitors and
reviews the IRRBB risk profile and control environment, providing second line oversight of the management of IRRBB. The BRC reviews the interest rate
risk profile, including review of the risk appetite at least annually and the impact of stress scenarios on the interest rate risk of the Barclays Bank PLC’s
banking books.
In addition, the Barclays Bank Group’s IRRBB policy sets out the processes and key controls required to identify all IRRBB risks arising from banking book
operations, to monitor the risk exposures via a set of metrics with a frequency in line with the risk management horizon, and to manage these risks
within agreed risk appetite and limits.
Risk review
Principal risk management

home.barclays/annualreport | Barclays Bank PLC Annual Report | 62

Operational risk management The risk of loss to the Barclays Bank Group from inadequate or failed processes or systems, human factors or due to external events (for example fraud) where the root cause is not due to credit or market risks.

Overview
The management of operational risk has three key objectives:
•deliver an operational risk capability owned and used by business leaders to enable sound risk decisions over the long term
•provide the frameworks, policies and standards to enable management to meet their risk management responsibilities while the second line of
defence provides robust, independent, and effective oversight and challenge
•deliver a consistent and aggregated measurement of operational risk that will provide clear and relevant insights, so that the right management
actions can be taken to keep the operational risk profile consistent with the Barclays Bank Group’s strategy, the stated risk appetite and stakeholder
needs.
The Barclays Bank Group operates within a system of internal controls that enables business to be transacted and risk taken without exposing it to
unacceptable potential losses or reputational damages.
Organisation, roles and responsibilities
The prime responsibility for the management of operational risk and the compliance with control requirements rests within the business and functional
units where the risk arises. The operational risk profile and control environment is reviewed by management through business risk committees and
control committees. Operational risk issues escalated from these meetings are considered through the second line of defence review meetings.
Depending on their nature, the outputs of these meetings are presented to the Operational Risk Profile Forum, the Operational Risk Committee, the
Barclays Bank Risk Forum, the Barclays Bank PLC Board Risk Committee or the Barclays Bank PLC Board Audit Committee. In addition, specific reports
are prepared by Operational Risk on a regular basis for the Barclays Bank Risk Forum, GRC and the BRC.
Businesses and functions are required to report their operational risks on both a regular and an event-driven basis. The reports include a profile of the
material risks that may threaten the achievement of their objectives and the effectiveness of key controls, operational risk events and a review of
scenarios.
The Barclays Group Head of Operational Risk is responsible for establishing, owning and maintaining an appropriate Barclays Group-wide Operational
Risk Management Framework, meanwhile the Barclays Bank PLC Head of Operational Risk is responsible for overseeing the portfolio of operational risk
across all Barclays Bank Group businesses.
The Operational Risk function acts in a second line of defence capacity, and is responsible for defining and overseeing the implementation of the
framework and monitoring Barclays Bank Group’s operational risk profile. The Operational Risk function alerts management when risk levels exceed
acceptable tolerance in order to drive timely decision-making and actions by the first line of defence.
Operational risk categories
Operational risks are grouped into risk categories to support effective risk management, measurement and reporting. These comprise: Data
Management Risk; Financial Reporting Risk; Fraud Risk; Information Security Risk; Operational Recovery Planning Risk; Payments Process Risk; People
Risk; Premises Risk; Physical Security Risk; Change Delivery Management Risk; Supplier Risk; Tax Risk; Technology Risk; and Transaction Operations
Risk.
In addition to the above, operational risk encompasses the risk associated with compliance with Group Resolution Planning Prudential regulatory
requirements.
Connected risks
Barclays also recognises that there are certain threats/risk drivers which are interconnected and have the potential to impact the Barclays Bank Group’s
strategic objectives. These are referred to as Connected Risks and require an overarching and integrated risk management and / or reporting approach.
The Barclays Bank Group’s Connected Risks include Cyber, Data, Resilience and Third-Party Service Providers.
For definitions of the Barclays Bank Group’s Operational Risk Categories and Connected Risks, refer to pages 165 to 167 of the Barclays PLC Pillar 3
Report 2022.

Model risk management The potential for adverse consequences from decisions based on incorrect or misused model outputs and reports.

Overview
The Barclays Bank Group uses models to support a broad range of activities, including informing business decisions and strategies, measuring and
limiting risk, valuing exposures, conducting stress testing, assessing capital adequacy, managing client assets, and meeting reporting requirements.
Organisation, roles and responsibilities
The Barclays Group has a dedicated Model Risk Management (MRM) function that consists of five teams: (i) Independent Validation Unit (IVU),
responsible for model validation and approval; (ii) Group Model Risk Governance, responsible for model risk governance, controls and reporting, as well
as providing oversight for compliance of the Model Owner community with the Model Risk Framework; (iii) Framework team responsible for the Model
Risk Policy and associated standards; (iv) Strategy and Transformation responsible for inventory, strategy, communications and business management;
and (v) Model Risk Measurement and Quantification (MRMQ), responsible for the design of the framework and methodology to measure and, where
Risk review
Principal risk management

home.barclays/annualreport | Barclays Bank PLC Annual Report | 63

possible, quantify model risk. It is also responsible for the strategic Validation Centre of Excellence (VCoE), which is an independent quality assurance
function within MRM with the mandate to review and challenge validation outcomes.
The Model Risk F ramework consists of the Model Risk Policy and standards. The policy prescribes the Barclays Group-wide, end-to-end requirements
for the identification, measurement and management of model risk, covering model documentation, development, monitoring, annual review,
independent validation and approval, change and reporting processes. The policy is supported by global standards covering model inventory,
documentation, validation, testing and monitoring, overlays, risk appetite, and stress testing challenger models.
The function reports to the Barclays Group CRO and operates a global framework. Implementation of best practice standards is a central objective of the
Barclays Group.
The key model risk management activities include:
▪Correctly identifying models across all relevant areas of the Barclays Bank Group, and recording models in the Barclays Group Models Database
(GMD), the Barclays Group-wide model inventory.
▪Enforcing that every model has a model owner who is accountable for the model. The model owner must sign off models prior to submission to IVU
for validation and maintain that the model presented to IVU is and remains fit for purpose.
▪Overseeing that every model is subject to validation and approval by IVU, prior to being used and on a continual basis.
▪Defining model risk appetite in terms of risk tolerance, and qualitative metrics which are used to track and report model risk.

Conduct risk management The risk of poor outcomes for, or harm to, customers, clients and markets, arising from the delivery of the Barclays Bank Group's products and services.

Overview
The Barclays Bank Group defines, manages and mitigates conduct risk with the objective of providing good customer and client outcomes and
protecting market integrity.
Conduct risk incorporates market integrity, customer protection, financial crime and product design and review risks.
Organisation, roles and responsibilities
The Conduct Risk Management Framework (CRMF) outlines how the Barclays Bank Group manages and measures its conduct risk profile. The Barclays
Group Chief Compliance Officer is accountable for developing, maintaining and overseeing the CRMF. The Barclays Bank Group Chief Compliance
Officer is responsible for providing effective oversight, management and escalation of conduct risk in line with the CRMF. This includes overseeing the
development and maintenance of the relevant conduct risk policies and standards and monitoring and reporting on the consistent application and
effectiveness of the implementation of controls to manage conduct risk. It is the responsibility of the first line of defence to establish controls to manage
its performance and assess conformance to these policies and controls.
Senior managers are accountable within their areas of responsibility for owning and managing conduct risk in accordance with the CRMF, as defined
within their regulatory Statement of Responsibilities.
Compliance as an independent second line function oversees that conduct risks are effectively identified, managed, monitored and escalated, and has a
key role in helping Barclays Bank Group achieve the right conduct outcomes and evolve a conduct-focused culture.
The governance of conduct risk within the Barclays Bank Group is fulfilled through management committees and forums operated by the first and
second lines of defence with clear escalation and reporting lines to the Board. The Barclays Group and Barclays Bank Group Risk Committees are the
primary second line governance committees for the oversight of the Conduct Risk Profile. The risk committees' responsibilities include the identification
and discussion of any emerging conduct risks exposures in the Barclays Group and Barclays Bank Group.

Reputation risk management The risk that an action, transaction, investment, event, decision, or business relationship will reduce trust in the Barclays Bank Group’s integrity and/or competence.

Overview
A reduction of trust in the Barclays Bank Group’s integrity and competence may reduce the attractiveness of Barclays Bank Group to stakeholders and
could lead to negative publicity, loss of revenue, regulatory or legislative action, loss of existing and potential client business, reduced workforce morale
and difficulties in recruiting talent. Ultimately it may destroy shareholder value.
Organisation, roles and responsibilities
The governance of reputation risk within the Barclays Bank Group is fulfilled through management committees and forums operated by the First and
Second Lines of Defence, with clear escalation and reporting lines to the relevant Barclays Bank Group Board committees.
The Barclays PLC Board is responsible for reviewing and monitoring the effectiveness of the Barclays Bank Group's management of reputation risk.
The Reputation Risk Management Framework (RRMF) comprises a number of elements that allow the Barclays Bank Group to manage and measure its
reputation risk profile. The RRMF sets out what is required to manage reputation risk across the Barclays Bank Group.
The Barclays Bank PLC Chief Compliance Officer is responsible for providing independent second line oversight of Businesses' adherence to the RRMF.
Risk review
Principal risk management

home.barclays/annualreport | Barclays Bank PLC Annual Report | 64

Legal risk management The risk of loss or imposition of penalties, damages or fines from the failure of the Barclays Bank Group to meet its legal obligations, including regulatory or contractual requirements.

Overview
The Barclays Bank Group has no tolerance for wilful breaches of laws, regulations or other legal obligations. However, the multitude of laws and
regulations across the globe are highly dynamic and their application to particular circumstances is often unclear. This results in a high level of inherent
legal risk which Barclays Bank Group seeks to mitigate through the operation of a Barclays Group-wide legal risk management framework, which
requires identification of legal risks by legal professionals, engagement of legal professionals in situations that have the potential for legal risk, and
escalation of legal risk as necessary. Notwithstanding these mitigating actions, Barclays Bank Group operates with a level of residual legal risk, for which
the Barclays Bank Group has limited tolerance.
Organisation, roles and responsibilities
The Barclays Bank Group’s businesses and functions have responsibility for identifying and escalating to the Legal Function legal risk in their area as well
as responsibility for adherence to control requirements.
The Legal function organisation and coverage model aligns legal expertise to businesses, functions, products, activities and geographic locations so that
the Barclays Bank Group receives legal advice and support from appropriate legal professionals, working in partnership proactively to identify, manage
and escalate legal risks as necessary.
The senior management of the Legal function oversees, challenges and monitors the legal risk profile and effectiveness of the legal risk control
environment across the Barclays Group. The Legal function does not sit in any of the three lines of defence but supports them all. Except in relation to
the legal advice it provides or procures, the Legal Function is subject to oversight from the second line of defence.
The Barclays Group General Counsel is responsible for developing and maintaining a Barclays Group-wide legal risk management framework. This
includes defining the relevant legal risk policies, developing Barclays Group-wide risk appetite for legal risk, and oversight of the implementation of
controls to manage and escalate legal risk.
The legal risk profile and control environment is reviewed by management through business risk committees and control committees. The Barclays
Bank Group Risk Committee is incorporated in the Barclays Group Risk Committee and is the most senior executive body responsible for reviewing and
monitoring the effectiveness of risk management across the Barclays Bank Group. Escalation paths from this committee exist to the Barclays Bank PLC
Board Risk Committee.
Risk review
Principal risk management

home.barclays/annualreport | Barclays Bank PLC Annual Report | 65

The impact on Financial and Operational Risks arising from climate change through, physical risks, risks associated with transitioning to a lower carbon
economy and connected risks arising as a result of second order impacts of these two drivers on portfolios. risks arising from the second order impacts
of these two drivers on portfolios. As part of climate risk performance, we monitor carbon-related assets and elevated risk sectors, which are identified
as portfolios with 'elevated' exposure to the physical and transition risks of climate change.
Carbon-related assets
We disclose concentrations of credit exposure to carbon-related assets. The TCFD recommends that carbon-related assets are those assets tied to the energy, transportation,
materials and buildings and agriculture, food and forest products sectors. All of the sectors that the TCFD now considers to be carbon-related assets include the sectors that
Barclays considers at elevated risk from the impacts of climate change. These can be found in the table on the following page.
Elevated risk sectors
Credit exposures Barclays is working to understand the risks associated with sectors sensitive to the impacts from climate change. Disclosing risk management metrics and
quantitative credit exposures supports this approach and our ongoing alignment with the TCFD recommendations. The sectors highlighted blue in the table represent those
that the Barclays Group considers at an elevated risk from the impacts of climate change. However, in each sector there will exist a range of vulnerabilities and as such these
figures do not represent elevated carbon emission exposures and should not be interpreted as an indicator of relative carbon intensity. These sectors have been identified
through an analysis of Barclays Industrial Classifications by portfolio and benchmarked against Moody’s and other external sources, with additional input from subject matter
experts.

Elevated risk sector | Drivers of risk
Aviation | More stringent air emission and carbon regulations, requiring high levels of capital investment and Research & Development (R&D) expenditure.
Automotive | Policy pressure to cut emissions to meet emission requirements, requiring high levels of capital investment and R&D expenditure. Phase out of fossil fuel vehicles and introduction of low emission zones in city centres.
Cement | Being one of the hard to abate sectors, policy pressure to cut emissions requires high levels of capital investment and R&D expenditure.
Coal Mining and Coal Terminals | Reduction in demand of thermal coal, as utilities transition away from fossil fuel. More stringent air emissions regulation, resulting in higher levels of capital investment.
Chemicals | Increasing environmental regulation, including carbon regulations. The increasing efforts to eliminate single-use plastics and improve recycling to prevent marine pollution could also impact demand for products used in plastic manufacture.
Mining (including diversified miners) | Rising costs as a result of tighter environmental regulations and increasing water stress.
Oil and Gas | Policy pressure to cut emissions, exposure to carbon taxes and overall increasing environmental regulation of operations and restrictions on access to new resources. Over time, falling demand for fossil fuels
Power Utilities | Policy pressure to cut emissions, leading to increased capital expenditure costs, plus potential exposure to carbon taxes.
Agriculture | Evolving taxation on emissions may impact production methods, supply chain and farm viability. Reduced demand for meat and dairy as a consequence of shifts in consumer behaviour. Volatile weather conditions and extreme weather events may impact farm credit quality.
Shipping | Policy pressure to cut emissions, requiring higher levels of capital investment.
Steel | Being an energy-intensive sector, the sector is exposed to the policy pressure to cut emissions and evolving air pollution regulation.
Road Haulage | Policy pressure to cut emissions, requiring high levels of capital investment.

Risk review
Risk performance
Climate risk performance

home.barclays/annualreport | Barclays Bank PLC Annual Report | 66

Carbon-related assets (Incl. sub-sector breakdown)
| 2022 £m | 2021 £m | % Change
Loans & advances | Loan commitments | Total | Loans & advances | Loan commitments | Total
Agriculture, Food and Forest Products | 1,722 | 8,635 | 10,357 | 1,461 | 8,592 | 10,053 | 3%
Agriculture | 103 | 150 | 253 | 121 | 265 | 386 |
Food, Bev and Tobacco | 1,454 | 7,851 | 9,305 | 1,179 | 7,457 | 8,636 |
Paper and Forest Products | 165 | 634 | 799 | 161 | 870 | 1,031 |
Energy | 5,206 | 26,574 | 31,780 | 3,525 | 24,346 | 27,871 | 14%
Coal Mining and Coal Terminals | — | — | — | — | 45 | 45 |
Oil and Gas | 2,730 | 12,604 | 15,334 | 2,338 | 12,472 | 14,810 |
Power Utilities | 2,476 | 13,970 | 16,446 | 1,187 | 11,829 | 13,016 |
Materials and Building | 21,609 | 35,472 | 57,081 | 17,410 | 32,296 | 49,706 | 15%
Cement | 214 | 159 | 373 | 28 | 352 | 380 |
Chemicals | 548 | 4,368 | 4,916 | 452 | 4,217 | 4,669 |
Construction and Materials | 1,112 | 2,046 | 3,158 | 776 | 1,903 | 2,679 |
Homebuilding and Property Development | 2,354 | 1,938 | 4,292 | 2,390 | 1,885 | 4,275 |
Manufacturing | 2,857 | 13,013 | 15,870 | 2,613 | 12,039 | 14,652 |
Metals | 298 | 648 | 946 | 204 | 544 | 748 |
Mining (Incl. diversified miners) | 196 | 2,261 | 2,457 | 145 | 1,768 | 1,913 |
Packaging Manufacturers: Metal, Glass and | 90 | 313 | 403 | 80 | 287 | 367 |
Real Estate Management and Development | 13,902 | 10,543 | 24,445 | 10,691 | 9,075 | 19,766 |
Steel | 38 | 183 | 221 | 31 | 226 | 257 |
Transport | 2,437 | 10,057 | 12,494 | 2,500 | 9,056 | 11,556 | 8%
Automotive | 952 | 5,489 | 6,441 | 855 | 5,128 | 5,983 |
Aviation | 460 | 2,220 | 2,680 | 548 | 1,662 | 2,210 |
Other Transport Services | 432 | 1,151 | 1,583 | 336 | 1,161 | 1,497 |
Ports | 95 | 87 | 182 | 98 | 115 | 213 |
Road Haulage | 213 | 392 | 605 | 306 | 377 | 683 |
Shipping | 285 | 718 | 1,003 | 357 | 613 | 970 |
Carbon-related assets in UK Retail Mortgages | — | — | — | — | — | — | —
Subtotal (Elevated risk sectors) | 8,215 | 42,514 | 50,729 | 6,368 | 38,954 | 45,322 | 12%
Carbon-related Assets Grand Total | 30,974 | 80,738 | 111,712 | 24,896 | 74,290 | 99,186 | 13%
Total Loans & Advances & Loan Commitments | 182,507 | 334,977 | 517,484 | 145,259 | 284,451 | 429,710 | 20%
Carbon-related assets / Total Loans & Advances & Loan Commitments | 17% | 24% | 22% | 17% | 26% | 23% |

Note: The carbon-related assets classification excluded £5.9bn of Fronting Stand By Letter of Credits (SBLCs) that are part of Total loans & advanced & loans commitments
since these amounts are counter-indemnified by other lenders.
Risk review
Risk performance
Climate risk performance

home.barclays/annualreport | Barclays Bank PLC Annual Report | 67

Financing
To facilitate greater understanding and transparency of our capital markets financing, we disclose the total capital raised for clients across all sectors using data sourced from
Dealogic. We have provided the breakdown of our 2021 and 2022 financing below. Barclays discloses the total capital raised for clients across all sectors using data sourced
from Dealogic. We then align each transaction by issuer to a sector according to the Barclays Industry Classification (BIC) we apply to that issuer. BIC is Barclays' internal
sector classification system. We are only showing in the table transactions aligned to BIC codes that we have mapped to carbon-related asset sectors. Financing volumes are
reported on a manager-proceeds basis including bonds, equities, loans and securitised bonds and no modifications have been made by Barclays. This data represents a third
party view of our financing and is subject to Dealogic’s league table methodology, which pro-rates volume across lead-managers. We are presenting the data in this format to
support transparency and comparability but it should be noted that this data is subject to further analysis and methodological enhancements, before it is included in
BlueTrack™

Carbon-related sectors in wholesale credit (Dealogic Industry Classification)
| 31.12.2022 ($m) | 31.12.2021 ($m) | % Change (2022 vs. 2021)
Agriculture, Food and Forest Products | 9,486 | 18,416 | (48)%
Agriculture | - | 382 |
Food, Bev and Tobacco | 8,609 | 14,997 |
Paper and Forest Products | 877 | 3,037 |
Energy | 43,042 | 39,294 | 10%
Coal Mining and Coal Terminals | - | - |
Oil and Gas | 9,747 | 12,558 |
Power Utilities | 33,295 | 26,736 |
Materials and Building | 33,750 | 63,473 | (47)%
Cement | 200 | - |
Chemicals | 2,800 | 4,876 |
Construction and Materials | 3,006 | 3,181 |
Homebuilding and Property Development | 760 | 976 |
Manufacturing | 14,062 | 28,482 |
Metals | 744 | 1,130 |
Mining (Incl. diversified miners) | 436 | 2,515 |
Packaging Manufacturers: Metal, Glass and Plastics | 33 | 932 |
Real Estate Management and Development | 11,271 | 20,860 |
Steel | 438 | 521 |
Transport | 9,904 | 23,559 | (58)%
Automotive | 3,865 | 9,961 |
Aviation | 2,132 | 6,221 |
Other Transport Services | 2,648 | 3,947 |
Ports | - | 124 |
Road Haulage | - | 1,062 |
Shipping | 1,259 | 2,244 |
Carbon-related assets in UK Retail Mortgages | - | - | -
Carbon-related Sectors Grand Total | 96,182 | 144,742 | (34)%
Capital Market Financing Total | 374,899 | 549,118 | (32)%
Financing to Carbon-related Sector over Total Capital Market Financing | 26% | 26% |

Risk review
Risk performance
Climate risk performance

home.barclays/annualreport | Barclays Bank PLC Annual Report | 68

Summary of Contents |  | Page
Credit risk represents a significant risk to the Barclays Bank Group and mainly arises from exposure to wholesale and retail loans and advances together with the counterparty credit risk arising from derivative contracts entered into with clients. | •Credit risk overview and summary of performance | 70
•Maximum exposure and effects of netting, collateral and risk transfer | 71
This section outlines the expected credit loss allowances, the movements in allowances during the period, material management adjustments to model output and measurement uncertainty and sensitivity analysis. | •Expected credit losses | 75
–Loans and advances at amortised cost by product | 75
–Movement in gross exposure and impairment allowance for loans and advances at amortised cost including provisions for loan commitments and financial guarantees | 77
–Stage 2 decomposition | 86
–Stage 3 decomposition | 87
•Management adjustments to models for impairment | 87
•Measurement uncertainty and sensitivity analysis | 89
The Barclays Bank Group reviews and monitors risk concentrations in a variety of ways. This section outlines performance against key concentration risks. | •Analysis of the concentration of credit risk | 99
–Geographic concentrations | 99
–Industry concentrations | 101
•Approach to management and representation of credit quality | 103
–Asset credit quality | 103
–Debt securities | 103
–Balance sheet credit quality | 103
–Credit exposures by internal PD (probability of default) grade | 106
Credit Risk monitors exposure performance across a range of significant portfolios. | •Analysis of specific portfolios and asset types | 110
–Credit cards, unsecured loans and other retail lending | 110
–Government supported loans | 110

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 69

All disclosures in this section pages 70 to 110, are unaudited unless otherwise stated.
Overview
Credit risk represents a significant risk to the Barclays Bank Group and mainly arises from exposure to wholesale and retail loans and advances together
with the counterparty credit risk arising from derivative contracts entered with clients.
Credit risk disclosures include many of the recommendations of the Taskforce on Disclosures about Expected Credit Losses (DECL) and it is expected
that relevant disclosures will continue to be developed in future periods.
Credit risk disclosures exclude other financial assets not subject to credit risk, mainly equity securities. For off-balance sheet exposures certain
contingent liabilities not subject to credit risk such as performance guarantees are excluded.
Summary of performance in the period
Loans: Gross loans and advances at amortised cost to customers and banks have increased by £38 bn compared to £149b n in 2021. This includes £8bn
increase in debt securities driven by Treasury investments. Of t he remaining growth, £17bn is attrib utable to strong lending activity in investment
banking and £9bn in credit cards driven by increased customer spending and strategic acquisitions.
Maximum exposure: During 2022, the Barclays Bank Group’s net exposure to credit risk increased by 18% to £871bn (2021: £741b n) which is mainly
driven by increase in off-balance sheet loan commitments (£53bn), cash held at central banks (£33bn), cash collateral and settlement balances (£20bn)
and debt securities issued by governments (£8bn), all of which are considered to be lower risk. Overall, the extent to which the Barclays Bank Group
held mitigation against its total exposure remained broadly flat at 41% (2021:42%).
Credit quality: A gradual increase in delinquencies has been observed driven by resumption of more regular spend activity in retail. A range of activities
are in progress to protect our existing defensive positioning against the current macroeconomic headwinds. In wholesale, loans to high-risk sectors as
well as the broader portfolio benefited from high-quality exposure and credit protection. Further analysis on the credit quality of assets is presented in
the approach to management and representation of credit quality section.
Stage decomposition: A net increase of £2.5bn is observed in Stage 2 gross exposures driven by normalisation of PDs in retail lending (£1.5bn),
predominantly credit cards, and a weaker macroeconomic forecast impacting wh olesale lending (£1bn).
Stage 3 balances increased by £0.2bn to £3.6b n compared to 2021 primarily due to delinquencies observed in retail unsecured lending. Refer to page
81-82 for further details.
Scenario: During the year, the economic risk from the COVID-19 pandemic has receded; however, economic uncertainty linked to high inflation in
major economies and heightened geopolitical tensions persists. For Q422, macroeconomic scenarios have been refreshed and are designed around a
broad range of economic outcomes. The Downside 2 scenario has been updated with reference to the most recent BoE Annual Cyclical Scenario (ACS)
stress test. This has resulted in a movement in weights from the upside scenarios to the downside scenarios.
ECL: Impairment allowances on loans and advances at amortised cost including off-balance sheet have increased to £4,352m (2021: £3,998m). O n
balance sheet coverage has reduced to 2.1% (2021: 2.4%) due to movement in portfolio mix towards lower ECL balances and evolving macroeconomic
scenarios. Coverage levels remain strong.
Charge: Credit impairment charges were £933m (2021: £(277)m release). The charges reflect an updated macroeconomic scenario together with a
partial return to more normalised levels of customer behaviour.
Management adjustments: Macroeconomic uncertainty PMAs at 31 December 2022 amount to £97m (2021: £1,049m). The reduction is informed by
the release of COVID-19 related adjustments as credit performance stabilises at or below pre-pandemic levels which is reflected in the models, and a
rebuild of certain models to better capture the macroeconomic outlook. Refer to the Management adjustment to models for impairment section on
pages 87 to 88 for further details.
Climate: Whilst there have been no separately identifiable charges relating to climate risk in the 2022 reported ECL, it is acknowledged that impairment
could increase over time as climate risks become more tangible and impact consumers and clients through physical risk or via impacts from the
transition to a low carbon economy.
Further detail can be found in the Financial statements section in Note 8 Credit impairment charges/(releases). Description of terminology can be found
in the glossary, available at home.barclays/annualreport. Refer to the credit risk management section for details of governance, policies and procedures.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 70

Barclays Bank Group’s maximum exposure and effects of netting, collateral and risk transfer
The following tables present a reconciliation between the Barclays Bank Group’s maximum exposure and its net exposure to credit risk, reflecting the
financial effects of risk mitigation reducing the Barclays Bank Group’s exposure.
The Barclays Bank Group mitigates the credit risk to which it is exposed through netting and set-off, collateral and risk transfer. Further detail on the
Barclays Bank Group's policies to each of these forms of credit enhancement is presented on pages 59 to 60 of the credit risk management section.
Collateral obtained
Where collateral has been obtained in the event of default, the Barclays Bank 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 Barclays Bank Group as at 31 December 2022, as a result of the enforcement
of collateral, was £31m (2021: £22m).

Maximum exposure and effect of netting, collateral and risk transfer (audited)
| Maximum exposure | Netting and set-off | Cash collateral | Non-cash collateral | Risk transfer | Net exposure
Barclays Bank Group
As at 31 December 2022 | £m | £m | £m | £m | £m | £m
On-balance sheet: |  |  |  |  |  |
Cash and balances at central banks | 202,142 | — | — | — | — | 202,142
Cash collateral and settlement balances | 107,862 | — | — | — | — | 107,862
Loans and advances at amortised cost: |  |  |  |  |  |
Home loans | 11,405 | — | (328) | (10,948) | (98) | 31
Credit cards, unsecured loans and other retail lending | 34,162 | — | (1,164) | (3,748) | (243) | 29,007
Wholesale loans | 136,940 | (4,442) | (653) | (49,681) | (5,527) | 76,637
Total loans and advances at amortised cost | 182,507 | (4,442) | (2,145) | (64,377) | (5,868) | 105,675
Of which credit-impaired (Stage 3): |  |  |  |  |  |
Home loans | 622 | — | (1) | (621) | — | —
Credit cards, unsecured loans and other retail lending | 670 | — | (29) | (291) | (3) | 347
Wholesale loans | 640 | — | (6) | (188) | (60) | 386
Total credit-impaired loans and advances at amortised cost | 1,932 | — | (36) | (1,100) | (63) | 733
Reverse repurchase agreements and other similar secured lending | 725 | — | — | (725) | — | —
Trading portfolio assets: |  |  |  |  |  |
Debt securities | 55,430 | — | — | (530) | — | 54,900
Traded loans | 13,198 | — | — | (250) | (48) | 12,900
Total trading portfolio assets | 68,628 | — | — | (780) | (48) | 67,800
Financial assets at fair value through the income statement: |  |  |  |  |  |
Loans and advances | 38,190 | — | (17) | (30,061) | (9) | 8,103
Debt securities | 3,217 | — | — | (321) | — | 2,896
Reverse repurchase agreements | 164,698 | — | (3,672) | (160,365) | — | 661
Other financial assets | 89 | — | — | — | — | 89
Total financial assets at fair value through the income statement | 206,194 | — | (3,689) | (190,747) | (9) | 11,749
Derivative financial instruments | 302,976 | (238,062) | (34,496) | (11,424) | (7,275) | 11,719
Financial assets at fair value through other comprehensive income | 45,083 | — | — | (222) | (514) | 44,347
Other assets | 1,503 | — | — | — | — | 1,503
Total on-balance sheet | 1,117,620 | (242,504) | (40,330) | (268,275) | (13,714) | 552,797
Off-balance sheet: |  |  |  |  |  |
Contingent liabilities | 25,800 | — | (1,295) | (1,596) | (280) | 22,629
Loan commitments | 334,977 | — | (93) | (37,371) | (1,624) | 295,889
Total off-balance sheet | 360,777 | — | (1,388) | (38,967) | (1,904) | 318,518
Total | 1,478,397 | (242,504) | (41,718) | (307,242) | (15,618) | 871,315

Off-balance sheet exposures are shown gross of provisions of £532m (2021: £499m). See Note 24 for further details. In addition to the above, Barclays
Bank Group holds forward starting reverse repos amounting to £48.4bn (2021: £39.3bn). The balances are fully collateralised. Wholesale loans and
advances at amortised cost include £0.6bn (2021: £1.0bn) of CBILs and CLBILs supported by UK government guarantees of £0.5bn (2021: £0.8bn). For
further information on credit risk mitigation techniques, refer to the Credit risk management section.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 71

Maximum exposure and effects of netting, collateral and risk transfer (audited)
| Maximum exposure | Netting and set-off | Cash collateral | Non-cash collateral | Risk transfer | Net exposure
Barclays Bank Group
As at 31 December 2021 | £m | £m | £m | £m | £m | £m
On-balance sheet: |  |  |  |  |  |
Cash and balances at central banks | 169,085 | — | — | — | — | 169,085
Cash collateral and settlement balances | 88,085 | — | — | — | — | 88,085
Loans and advances at amortised cost: |  |  |  |  |  |
Home loans | 10,985 | — | (338) | (10,483) | (89) | 75
Credit cards, unsecured loans and other retail lending | 25,960 | — | (968) | (4,229) | (252) | 20,511
Wholesale loans | 108,314 | (5,001) | (118) | (30,287) | (5,080) | 67,828
Total loans and advances at amortised cost | 145,259 | (5,001) | (1,424) | (44,999) | (5,421) | 88,414
Of which credit-impaired (Stage 3): |  |  |  |  |  |
Home loans | 615 | — | (11) | (604) | — | —
Credit cards, unsecured loans and other retail lending | 563 | — | (29) | (217) | (3) | 314
Wholesale loans | 486 | — | 0 | (76) | (22) | 388
Total credit-impaired loans and advances at amortised cost | 1,664 | — | (40) | (897) | (25) | 702
Reverse repurchase agreements and other similar secured lending | 3,177 | — | — | (3,177) | — | —
Trading portfolio assets: |  |  |  |  |  |
Debt securities | 50,700 | — | — | (461) | — | 50,239
Traded loans | 12,525 | — | — | (268) | — | 12,257
Total trading portfolio assets | 63,225 | — | — | (729) | — | 62,496
Financial assets at fair value through the income statement: |  |  |  |  |  |
Loans and advances | 35,901 | — | — | (29,485) | — | 6,416
Debt securities | 2,256 | — | — | (319) | — | 1,937
Reverse repurchase agreements | 145,186 | — | (1,428) | (143,229) | — | 529
Other financial assets | 85 | — | — | — | — | 85
Total financial assets at fair value through the income statement | 183,428 | — | (1,428) | (173,033) | — | 8,967
Derivative financial instruments | 262,291 | (202,347) | (34,149) | (5,804) | (5,738) | 14,253
Financial assets at fair value through other comprehensive income | 45,907 | — | — | (53) | (931) | 44,923
Other assets | 994 | — | — | — | — | 994
Total on-balance sheet | 961,451 | (207,348) | (37,001) | (227,795) | (12,090) | 477,217
Off-balance sheet: |  |  |  |  |  |
Contingent liabilities | 23,746 | — | (906) | (1,367) | (256) | 21,217
Loan commitments | 284,451 | — | (99) | (40,104) | (1,627) | 242,621
Total off-balance sheet | 308,197 | — | (1,005) | (41,471) | (1,883) | 263,838
Total | 1,269,648 | (207,348) | (38,006) | (269,266) | (13,973) | 741,055

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 72

Maximum exposure and effects of netting, collateral and risk transfer (audited) |
| Maximum exposure | Netting and set-off | Cash collateral | Non-cash collateral | Risk transfer | Net exposure |
Barclays Bank PLC |
As at 31 December 2022 | £m | £m | £m | £m | £m | £m |
On-balance sheet: |  |  |  |  |  |  |
Cash and balances at central banks | 170,307 | — | — | — | — | 170,307 |
Cash collateral and settlement balances | 82,371 | — | — | — | — | 82,371 |
Loans and advances at amortised cost: |  |  |  |  |  |  |
Home loans | 6,542 | — | (299) | (6,181) | (37) | 25 |
Credit cards, unsecured loans and other retail lending | 4,715 | — | (1,030) | (2,361) | (32) | 1,292 |
Wholesale loans | 214,526 | (4,442) | (1,261) | (41,999) | (8,594) | 158,230 |
Total loans and advances at amortised cost | 225,783 | (4,442) | (2,590) | (50,541) | (8,663) | 159,547 |
Of which credit-impaired (Stage 3): |  |  |  |  |  |  |
Home loans | 445 | — | (1) | (443) | — | 1 |
Credit cards, unsecured loans and other retail lending | 208 | — | (25) | (162) | (2) | 19 |
Wholesale loans | 532 | — | (6) | (187) | (60) | 279 |
Total credit-impaired loans and advances at amortised cost | 1,185 | — | (32) | (792) | (62) | 299 |
Reverse repurchase agreements and other similar secured lending | 5,908 | — | — | (5,908) | — | — |
Trading portfolio assets: |  |  |  |  |  |  |
Debt securities | 31,410 | — | — | (530) | — | 30,880 |
Traded loans | 12,971 | — | — | (250) | — | 12,721 |
Total trading portfolio assets | 44,381 | — | — | (780) | — | 43,601 |
Financial assets at fair value through the income statement: |  |  |  |  |  |  |
Loans and advances | 45,830 | — | (17) | (14,741) | (9) | 31,063 |
Debt securities | 3,869 | — | — | (116) | — | 3,753 |
Reverse repurchase agreements | 197,440 | — | (2,943) | (194,497) | — | — |
Other financial assets | 27 | — | — | — | — | 27 |
Total financial assets at fair value through the income statement | 247,166 | — | (2,960) | (209,354) | (9) | 34,843 |
Derivative financial instruments | 258,708 | (209,530) | (23,212) | (9,308) | (6,484) | 10,174 |
Financial assets at fair value through other comprehensive income | 43,086 | — | — | (222) | (514) | 42,350 |
Other assets | 1,725 | — | — | — | — | 1,725 |
Total on-balance sheet | 1,079,435 | (213,972) | (28,762) | (276,113) | (15,670) | 544,918 |
Off-balance sheet: |  |  |  |  |  |  |
Contingent liabilities | 62,203 | — | (1,188) | (1,580) | (277) | 59,158 |
Loan commitments | 207,336 | — | (70) | (45,193) | (1,614) | 160,459 |
Total off-balance sheet | 269,539 | — | (1,258) | (46,773) | (1,891) | 219,617 |
Total | 1,348,974 | (213,972) | (30,020) | (322,886) | (17,561) | 764,535 |

Off-balance sheet exposures are shown gross of provisions of £403m (2021: £420m). See Note 24 for further details. In addition to the above, Barclays
Bank PLC holds forward starting reverse repos amounting to £39.4bn (2021: £31bn). The balances are fully collateralised. Wholesale loans and
advances at amortised cost include £0.6bn (2021: £1bn) of CBILs and CLBILs supported by UK government guarantees of £0.5bn (2021: £0.8bn).
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 73

Maximum exposure and effects of netting, collateral and risk transfer (audited) |  |  |
| Maximum exposure | Netting and set-off | Cash collateral | Non-cash collateral | Risk transfer | Net exposure
Barclays Bank PLC
As at 31 December 2021 | £m | £m | £m | £m | £m | £m
On-balance sheet: |  |  |  |  |  |
Cash and balances at central banks | 144,964 | — | — | — | — | 144,964
Cash collateral and settlement balances | 75,571 | — | — | — | — | 75,571
Loans and advances at amortised cost: |  |  |  |  |  |
Home loans | 5,982 | — | (293) | (5,588) | (39) | 62
Credit cards, unsecured loans and other retail lending | 4,908 | — | (788) | (2,933) | (73) | 1,114
Wholesale loans | 188,892 | (5,003) | (3,571) | (29,623) | (4,323) | 146,372
Total loans and advances at amortised cost | 199,782 | (5,003) | (4,652) | (38,144) | (4,435) | 147,548
Of which credit-impaired (Stage 3): |  |  |  |  |  |
Home loans | 418 | — | (7) | (409) | — | 2
Credit cards, unsecured loans and other retail lending | 140 | — | (28) | (100) | (3) | 9
Wholesale loans | 404 | — | — | (74) | (22) | 308
Total credit-impaired loans and advances at amortised cost | 962 | — | (35) | (583) | (25) | 319
Reverse repurchase agreements and other similar secured lending | 4,982 | — | — | (4,982) | — | —
Trading portfolio assets: |  |  |  |  |  |
Debt securities | 33,517 | — | — | (461) | — | 33,056
Traded loans | 11,989 | — | — | (268) | — | 11,721
Total trading portfolio assets | 45,506 | — | — | (729) | — | 44,777
Financial assets at fair value through the income statement: |  |  |  |  |  |
Loans and advances | 45,311 | — | — | (16,100) | — | 29,211
Debt securities | 3,053 | — | — | — | — | 3,053
Reverse repurchase agreements | 188,053 | — | (1,346) | (186,707) | — | —
Other financial assets | 22 | — | — | — | — | 22
Total financial assets at fair value through the income statement | 236,439 | — | (1,346) | (202,807) | — | 32,286
Derivative financial instruments | 234,409 | (183,718) | (26,166) | (5,154) | (5,738) | 13,633
Financial assets at fair value through other comprehensive income | 44,163 | — | — | (53) | (931) | 43,179
Other assets | 1,018 | — | — | — | — | 1,018
Total on-balance sheet | 986,834 | (188,721) | (32,164) | (251,869) | (11,104) | 502,976
Off-balance sheet: |  |  |  |  |  |
Contingent liabilities | 55,774 | — | (894) | (1,357) | (252) | 53,271
Loan commitments | 195,103 | — | (84) | (43,828) | (1,587) | 149,604
Total off-balance sheet | 250,877 | — | (978) | (45,185) | (1,839) | 202,875
Total | 1,237,711 | (188,721) | (33,142) | (297,054) | (12,943) | 705,851

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 74

Expected Credit Losses
Loans and advances at amortised cost by product
The table below presents a breakdown of loans and advances at amortised cost and the impairment allowance with stage allocation by asset
classification.
Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment
allowance is allocated to the gross loans and advances to the extent that the allowance does not exceed the drawn exposure and any excess is reported
on the liability side of the balance sheet as a provision. For wholesale portfolios the impairment allowance on the undrawn exposure is reported on the
liability side of the balance sheet as a provision.

Barclays Bank Group (audited) |  | Stage 2 |  |
As at 31 December 2022 | Stage 1 | Not past due | <=30 days past due | >30 days past due | Total | Stage 3 | Total a
Gross exposure | £m | £m | £m | £m | £m | £m | £m
Home loans | 10,458 | 310 | 11 | 41 | 362 | 978 | 11,798
Credit cards, unsecured loans and other retail lending | 30,501 | 3,799 | 291 | 496 | 4,586 | 1,674 | 36,761
Wholesale loans | 122,849 | 13,763 | 145 | 93 | 14,001 | 918 | 137,768
Total | 163,808 | 17,872 | 447 | 630 | 18,949 | 3,570 | 186,327
Impairment allowance |  |  |  |  |  |  |
Home loans | 12 | 22 | 2 | 1 | 25 | 356 | 393
Credit cards, unsecured loans and other retail lending | 393 | 939 | 92 | 171 | 1,202 | 1,004 | 2,599
Wholesale loans | 288 | 256 | 5 | 1 | 262 | 278 | 828
Total | 693 | 1,217 | 99 | 173 | 1,489 | 1,638 | 3,820
Net exposure |  |  |  |  |  |  |
Home loans | 10,446 | 288 | 9 | 40 | 337 | 622 | 11,405
Credit cards, unsecured loans and other retail lending | 30,108 | 2,860 | 199 | 325 | 3,384 | 670 | 34,162
Wholesale loans | 122,561 | 13,507 | 140 | 92 | 13,739 | 640 | 136,940
Total | 163,115 | 16,655 | 348 | 457 | 17,460 | 1,932 | 182,507
Coverage ratio | % | % | % | % | % | % | %
Home loans | 0.1 | 7.1 | 18.2 | 2.4 | 6.9 | 36.4 | 3.3
Credit cards, unsecured loans and other retail lending | 1.3 | 24.7 | 31.6 | 34.5 | 26.2 | 60.0 | 7.1
Wholesale loans | 0.2 | 1.9 | 3.4 | 1.1 | 1.9 | 30.3 | 0.6
Total | 0.4 | 6.8 | 22.1 | 27.5 | 7.9 | 45.9 | 2.1
As at 31 December 2021 |  |  |  |  |  |  |
Gross exposure | £m | £m | £m | £m | £m | £m | £m
Home loans | 9,760 | 548 | 22 | 83 | 653 | 958 | 11,371
Credit cards, unsecured loans and other retail lending | 24,011 | 2,402 | 198 | 182 | 2,782 | 1,469 | 28,262
Wholesale loans | 95,242 | 12,275 | 301 | 386 | 12,962 | 921 | 109,125
Total | 129,013 | 15,225 | 521 | 651 | 16,397 | 3,348 | 148,758
Impairment allowance |  |  |  |  |  |  |
Home loans | 8 | 33 | 1 | 1 | 35 | 343 | 386
Credit cards, unsecured loans and other retail lending | 605 | 677 | 39 | 75 | 791 | 906 | 2,302
Wholesale loans | 183 | 188 | 3 | 2 | 193 | 435 | 811
Total | 796 | 898 | 43 | 78 | 1,019 | 1,684 | 3,499
Net exposure |  |  |  |  |  |  |
Home loans | 9,752 | 515 | 21 | 82 | 618 | 615 | 10,985
Credit cards, unsecured loans and other retail lending | 23,406 | 1,725 | 159 | 107 | 1,991 | 563 | 25,960
Wholesale loans | 95,059 | 12,087 | 298 | 384 | 12,769 | 486 | 108,314
Total | 128,217 | 14,327 | 478 | 573 | 15,378 | 1,664 | 145,259
Coverage ratio | % | % | % | % | % | % | %
Home loans | 0.1 | 6.0 | 4.5 | 1.2 | 5.4 | 35.8 | 3.4
Credit cards, unsecured loans and other retail lending | 2.5 | 28.2 | 19.7 | 41.2 | 28.4 | 61.7 | 8.1
Wholesale loans | 0.2 | 1.5 | 1.0 | 0.5 | 1.5 | 47.2 | 0.7
Total | 0.6 | 5.9 | 8.3 | 12.0 | 6.2 | 50.3 | 2.4

Note
a.Other financial assets subject to impairment excluded in the table above include cash collateral and settlement balances, financial assets at fair value through other
comprehensive income, accrued income and sundry debtors. These have a total gross exposure of £155.1 bn (2021: £135.5bn) and impairment allowance of £152m
(2021: £104m). This comprises £7m (2021: £4m) ECL on £153.8bn (2021: £135.3bn) Stage 1 assets, £8m (2021: £0m) on £1,142m (2021: £65m) Stage 2 fair value
through other comprehensive income assets, cash collateral and settlement assets and £137m (2021: £100m) on £141m (2021: £100m) Stage 3 other assets. Loan
commitments and financial guarantee contracts have total ECL of £532m (2021: £499m).
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 75

Barclays Bank PLC |  | Stage 2 |  |
As at 31 December 2022 | Stage 1 | Not past due | <=30 days past due | >30 days past due | Total | Stage 3 | Total a
Gross exposure | £m | £m | £m | £m | £m | £m | £m
Home loans | 6,014 | 64 | 1 | 28 | 93 | 757 | 6,864
Credit cards, unsecured loans and other retail lending | 4,089 | 398 | 38 | 67 | 503 | 276 | 4,868
Wholesale loans | 200,898 | 13,384 | 121 | 93 | 13,598 | 769 | 215,265
Total | 211,001 | 13,846 | 160 | 188 | 14,194 | 1,802 | 226,997
Impairment allowance |  |  |  |  |  |  |
Home loans | 8 | 2 | — | — | 2 | 312 | 322
Credit cards, unsecured loans and other retail lending | 37 | 33 | 7 | 8 | 48 | 68 | 153
Wholesale loans | 276 | 220 | 5 | 1 | 226 | 237 | 739
Total | 321 | 255 | 12 | 9 | 276 | 617 | 1,214
Net exposure |  |  |  |  |  |  |
Home loans | 6,006 | 62 | 1 | 28 | 91 | 445 | 6,542
Credit cards, unsecured loans and other retail lending | 4,052 | 365 | 31 | 59 | 455 | 208 | 4,715
Wholesale loans | 200,622 | 13,164 | 116 | 92 | 13,372 | 532 | 214,526
Total | 210,680 | 13,591 | 148 | 179 | 13,918 | 1,185 | 225,783
Coverage ratio | % | % | % | % | % | % | %
Home loans | 0.1 | 3.1 | — | — | 2.2 | 41.2 | 4.7
Credit cards, unsecured loans and other retail lending | 0.9 | 8.3 | 18.4 | 11.9 | 9.5 | 24.6 | 3.1
Wholesale loans | 0.1 | 1.6 | 4.1 | 1.1 | 1.7 | 30.8 | 0.3
Total | 0.2 | 1.8 | 7.5 | 4.8 | 1.9 | 34.2 | 0.5
As at 31 December 2021 |  |  |  |  |  |  |
Gross exposure | £m | £m | £m | £m | £m | £m | £m
Home loans | 5,350 | 133 | 17 | 70 | 220 | 724 | 6,294
Credit cards, unsecured loans and other retail lending | 4,367 | 346 | 63 | 50 | 459 | 201 | 5,027
Wholesale loans | 176,701 | 11,709 | 293 | 139 | 12,141 | 806 | 189,648
Total | 186,418 | 12,188 | 373 | 259 | 12,820 | 1,731 | 200,969
Impairment allowance |  |  |  |  |  |  |
Home loans | 5 | 1 | — | — | 1 | 306 | 312
Credit cards, unsecured loans and other retail lending | 36 | 16 | 3 | 3 | 22 | 61 | 119
Wholesale loans | 180 | 170 | 3 | 1 | 174 | 402 | 756
Total | 221 | 187 | 6 | 4 | 197 | 769 | 1,187
Net exposure |  |  |  |  |  |  |
Home loans | 5,345 | 132 | 17 | 70 | 219 | 418 | 5,982
Credit cards, unsecured loans and other retail lending | 4,331 | 330 | 60 | 47 | 437 | 140 | 4,908
Wholesale loans | 176,521 | 11,539 | 290 | 138 | 11,967 | 404 | 188,892
Total | 186,197 | 12,001 | 367 | 255 | 12,623 | 962 | 199,782
Coverage ratio | % | % | % | % | % | % | %
Home loans | 0.1 | 0.8 | — | — | 0.5 | 42.3 | 5.0
Credit cards, unsecured loans and other retail lending | 0.8 | 4.6 | 4.8 | 6.0 | 4.8 | 30.3 | 2.4
Wholesale loans | 0.1 | 1.5 | 1.0 | 0.7 | 1.4 | 49.9 | 0.4
Total | 0.1 | 1.5 | 1.6 | 1.5 | 1.5 | 44.4 | 0.6

Note
a.Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other
comprehensive income, accrued income and sundry debtors. These have a total gross exposure of £127.7bn (2021: £120.8bn) and impairment allowance of £149m
(2021: £101m). This comprises £8m ECL (2021: £5m) on £126.4bn Stage 1 assets (2021: £120.7bn), £8m (2021: £0m) on £1,142m Stage 2 fair value through other
comprehensive income assets, cash collateral and settlement assets (2021: £65m) and £133m (2021: £96m) on £137m Stage 3 other assets (2021: £96m). Loan
commitments and financial guarantee contracts have total ECL of £403m (2021: £420m).
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 76

Movement in gross exposures and impairment allowance including provisions for loan commitments and financial guarantees
The following tables present a reconciliation of the opening to the closing balance of the exposure and impairment allowance. An explanation of the
methodology used to determine credit impairment provisions is included in pages 189 to 192. Transfers between stages in the tables have been
reflected as if they had taken place at the beginning of the year. The movements are measured over a 12-month period.

Loans and advances at amortised cost (audited) | Stage 1 | Stage 2 | Stage 3 | Total
Barclays Bank Group | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL
| £m | £m | £m | £m | £m | £m | £m | £m
Home loans |  |  |  |  |  |  |  |
As at 1 January 2022 | 9,760 | 8 | 653 | 35 | 958 | 343 | 11,371 | 386
Transfers from Stage 1 to Stage 2 | (179) | — | 179 | — | — | — | — | —
Transfers from Stage 2 to Stage 1 | 393 | 16 | (393) | (16) | — | — | — | —
Transfers to Stage 3 | (192) | — | (39) | (4) | 231 | 4 | — | —
Transfers from Stage 3 | 18 | 1 | 33 | 3 | (51) | (4) | — | —
Business activity in the year a | 1,887 | 5 | — | — | — | — | 1,887 | 5
Refinements to models used for calculation | — | — | — | — | — | — | — | —
Net drawdowns, repayments, net re-measurement and movements due to exposure and risk parameter changes | (131) | (17) | (7) | 8 | 8 | 39 | (130) | 30
Final repayments b | (1,098) | (1) | (64) | (1) | (145) | (3) | (1,307) | (5)
Disposals | — | — | — | — | — | — | — | —
Write-offs c | — | — | — | — | (23) | (23) | (23) | (23)
As at 31 December 2022 d | 10,458 | 12 | 362 | 25 | 978 | 356 | 11,798 | 393
Credit cards, unsecured loans and other retail lending
As at 1 January 2022 | 24,011 | 605 | 2,782 | 791 | 1,469 | 906 | 28,262 | 2,302
Transfers from Stage 1 to Stage 2 | (2,009) | (40) | 2,009 | 40 | — | — | — | —
Transfers from Stage 2 to Stage 1 | 1,046 | 218 | (1,046) | (218) | — | — | — | —
Transfers to Stage 3 | (456) | (14) | (404) | (166) | 860 | 180 | — | —
Transfers from Stage 3 | 51 | 11 | 8 | 5 | (59) | (16) | — | —
Business activity in the year a | 7,668 | 138 | 319 | 113 | 126 | 101 | 8,113 | 352
Refinements to models used for calculation e | — | 43 | — | 187 | — | 96 | — | 326
Net drawdowns, repayments, net re-measurement and movements due to exposure and risk parameter changes | 3,236 | (545) | 1,182 | 473 | 155 | 453 | 4,573 | 381
Final repayments b | (2,887) | (19) | (235) | (12) | (150) | (11) | (3,272) | (42)
Disposals f | (159) | (4) | (29) | (11) | (48) | (26) | (236) | (41)
Write-offs c | — | — | — | — | (679) | (679) | (679) | (679)
As at 31 December 2022 d | 30,501 | 393 | 4,586 | 1,202 | 1,674 | 1,004 | 36,761 | 2,599
Wholesale loans |  |  |  |  |  |  |  |
As at 1 January 2022 | 95,242 | 183 | 12,962 | 193 | 921 | 435 | 109,125 | 811
Transfers from Stage 1 to Stage 2 | (3,684) | (7) | 3,684 | 7 | — | — | — | —
Transfers from Stage 2 to Stage 1 | 4,573 | 44 | (4,573) | (44) | — | — | — | —
Transfers to Stage 3 | (254) | (1) | (207) | (5) | 461 | 6 | — | —
Transfers from Stage 3 | 55 | 6 | 29 | 1 | (84) | (7) | — | —
Business activity in the year a | 34,522 | 55 | 3,956 | 80 | 9 | 6 | 38,487 | 141
Refinements to models used for calculation e | — | 2 | — | (24) | — | — | — | (22)
Net drawdowns, repayments, net re-measurement and movements due to exposure and risk parameter changes | 21,238 | 39 | 1,738 | 95 | 28 | 204 | 23,004 | 338
Final repayments b | (27,331) | (33) | (3,557) | (41) | (93) | (44) | (30,981) | (118)
Disposals f | (1,512) | — | (31) | — | (49) | (47) | (1,592) | (47)
Write-offs c | — | — | — | — | (275) | (275) | (275) | (275)
As at 31 December 2022 d | 122,849 | 288 | 14,001 | 262 | 918 | 278 | 137,768 | 828

Notes
a.Business activity in the year does not include additional drawdowns on the existing facility which are reported under 'Net drawdowns, repayments, net re-measurement
and movements due to exposure and risk parameter changes'. Business activity reported within Credit cards, unsecured loans and other retail lending portfolio includes
the Gap portfolio acquisition in US card s of £2.7bn.
b.Final repayments include repayment from the facility closed during the year whereas partial repayments from existing facility are reported under 'Net drawdowns,
repayments, net remeasurement and movements due to exposure and risk parameter changes'.
c.In 2022, gross write-offs amounted to £977m (2021: £1,158m) and post write-off recoveries amounted to £33m (2021: £31m). Net write-offs represent gross write-offs
less post write-off recoveries and amounted to £944m (2021: £1,127m).
d.Other financial assets subject to impairment excluded in the table above include cash collateral and settlement balances, financial assets at fair value through other
comprehensive income, accrued income and sundry debtors. These have a total gross exposure of £155.1 bn (2021: £135.5bn) and impairment allowance of £152m
(2021: £104m). This comprises £7m (2021: £4m) ECL on £153.8bn (2021: £135.3bn) Stage 1 assets, £8m (2021: £0m) on £1,142m (2021: £65m) Stage 2 fair value
through other comprehensive income assets, cash collateral and settlement assets and £137m (2021: £100m) on £141m (2021: £100m) Stage 3 other assets.
e.Refinements to models used for calculation include £326m in Credit cards, unsecured loans and other retail lending and £(22)m in Wholesale loans. These reflect model
enhancements made during the year. Barclays Bank Group continually reviews the output of models to determine accuracy of the ECL calculation including review of
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 77

model monitoring, external benchmarking and experience of model operation over an extended period of time. This ensures that the models used continue to reflect the
risks inherent across the businesses.
f.The £0.2b n of disposals reported within Credit cards, unsecured loans and other retail lending portfolio relate to debt sales undertaken during the year. The £1.6b n of
disposals reported within Wholesale loans include sale of debt securities as part of Group Treasury operations.

Reconciliation of ECL movement to credit impairment charge/(release) for the period | Stage 1 | Stage 2 | Stage 3 | Total
| £m | £m | £m | £m
Home loans | 4 | (10) | 36 | 30
Credit cards, unsecured loans and other retail lending | (208) | 422 | 803 | 1,017
Wholesale loans | 105 | 69 | 165 | 339
ECL movement excluding assets derecognised due to disposals and write-offs | (99) | 481 | 1,004 | 1,386
ECL movement on loan commitments and financial guarantees | 31 | 1 | 1 | 33
ECL movement on other financial assets a | 3 | 8 | 37 | 48
Recoveries and reimbursements b | (121) | (61) | (46) | (228)
Total exchange and other adjustments c |  |  |  | (306)
Total credit impairment charge for the year |  |  |  | 933

Notes
a.Other financial assets subject to impairment excluded in the table above include cash collateral and settlement balances, financial assets at fair value through other
comprehensive income, accrued income and sundry debtors. These have a total gross exposure of £155.1 bn (2021: £135.5bn) and impairment allowance of £152m
(2021: £104m). This comprises £7m (2021: £4m) ECL on £153.8bn (2021: £135.3bn) Stage 1 assets, £8m (2021: £0m) on £1,142m (2021: £65m) Stage 2 fair value
through other comprehensive income assets, cash collateral and settlement assets and £137m (2021: £100m) on £141m (2021: £100m) Stage 3 other assets.
b.Recoveries and reimbursements includes £195m of reimbursements expected to be received under the arrangement where Barclays Bank Group has entered into financial
guarantee contracts which provide credit protection over certain assets with third parties and cash recoveries of previously written off amounts of £33m.
c.Includes foreign exchange and interest and fees in suspense.

Loan commitments and financial guarantees (audited) | Stage 1 | Stage 2 | Stage 3 | Total
Barclays Bank Group | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL
| £m | £m | £m | £m | £m | £m | £m | £m
Home loans |  |  |  |  |  |  |  |
As at 1 January 2022 | 53 | — | — | — | 1 | — | 54 | —
Net transfers between stages | (5) | — | 1 | — | 4 | — | — | —
Business activity in the year | 26 | — | — | — | — | — | 26 | —
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 4 | — | — | — | — | — | 4 | —
Limit management and final repayments | (17) | — | — | — | — | — | (17) | —
As at 31 December 2022 | 61 | — | 1 | — | 5 | — | 67 | —
Credit cards, unsecured loans and other retail lending |  |  |  |  |  |
As at 1 January 2022 | 78,655 | 36 | 3,214 | 33 | 32 | 20 | 81,901 | 89
Net transfers between stages | (1,457) | 30 | 1,328 | (24) | 129 | (6) | — | —
Business activity in the year | 36,388 | 24 | 375 | 25 | 12 | 2 | 36,775 | 51
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 10,749 | (37) | (1,653) | 36 | (72) | 7 | 9,024 | 6
Limit management and final repayments | (6,877) | (6) | (400) | (18) | (6) | (2) | (7,283) | (26)
As at 31 December 2022 | 117,458 | 47 | 2,864 | 52 | 95 | 21 | 120,417 | 120
Wholesale loans |  |  |  |  |  |  |  |
As at 1 January 2022 | 178,006 | 167 | 28,417 | 241 | 1,017 | 2 | 207,440 | 410
Net transfers between stages | 6,139 | 60 | (6,073) | (64) | (66) | 4 | — | —
Business activity in the year | 43,676 | 28 | 4,233 | 54 | 15 | — | 47,924 | 82
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 27,913 | (39) | 5,993 | 58 | 143 | (2) | 34,049 | 17
Limit management and final repayments | (54,184) | (29) | (9,509) | (66) | (321) | (2) | (64,014) | (97)
As at 31 December 2022 | 201,550 | 187 | 23,061 | 223 | 788 | 2 | 225,399 | 412

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 78

Loans and advances at amortised cost (audited) | Stage 1 | Stage 2 | Stage 3 | Total
Barclays Bank PLC | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL
| £m | £m | £m | £m | £m | £m | £m | £m
Home loans |  |  |  |  |  |  |  |
As at 1 January 2022 | 5,350 | 5 | 220 | 1 | 724 | 306 | 6,294 | 312
Transfers from Stage 1 to Stage 2 | (42) | — | 42 | — | — | — | — | —
Transfers from Stage 2 to Stage 1 | 113 | 1 | (113) | (1) | — | — | — | —
Transfers to Stage 3 | (162) | — | (15) | — | 177 | — | — | —
Transfers from Stage 3 | 18 | 1 | 8 | 1 | (26) | (2) | — | —
Business activity in the year a | 1,555 | 2 | — | — | — | — | 1,555 | 2
Refinements to models used for calculation | — | — | — | — | — | — | — | —
Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | (139) | — | (11) | 1 | 3 | 29 | (147) | 30
Final repayments b | (679) | (1) | (38) | — | (102) | (2) | (819) | (3)
Disposals | — | — | — | — | — | — | — | —
Write-offs c | — | — | — | — | (19) | (19) | (19) | (19)
As at 31 December 2022 d | 6,014 | 8 | 93 | 2 | 757 | 312 | 6,864 | 322
Credit cards, unsecured loans and other retail lending
As at 1 January 2022 | 4,367 | 36 | 459 | 22 | 201 | 61 | 5,027 | 119
Transfers from Stage 1 to Stage 2 | (324) | (4) | 324 | 4 | — | — | — | —
Transfers from Stage 2 to Stage 1 | 109 | 8 | (109) | (8) | — | — | — | —
Transfers to Stage 3 | (116) | (1) | (49) | (5) | 165 | 6 | — | —
Transfers from Stage 3 | 36 | 1 | 1 | 1 | (37) | (2) | — | —
Business activity in the year a | 908 | 17 | 10 | 4 | 1 | 2 | 919 | 23
Refinements to models used for calculation e | — | 5 | — | 5 | — | — | — | 10
Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 311 | (22) | 49 | 27 | 95 | 31 | 455 | 36
Final repayments b | (1,202) | (3) | (182) | (2) | (120) | (1) | (1,504) | (6)
Disposals | — | — | — | — | — | — | — | —
Write-offs c | — | — | — | — | (29) | (29) | (29) | (29)
As at 31 December 2022 d | 4,089 | 37 | 503 | 48 | 276 | 68 | 4,868 | 153
Wholesale loans |  |  |  |  |  |  |  |
As at 1 January 2022 | 176,701 | 180 | 12,141 | 174 | 806 | 402 | 189,648 | 756
Transfers from Stage 1 to Stage 2 | (3,236) | (7) | 3,236 | 7 | — | — | — | —
Transfers from Stage 2 to Stage 1 | 3,436 | 36 | (3,436) | (36) | — | — | — | —
Transfers to Stage 3 | (249) | (1) | (176) | (3) | 425 | 4 | — | —
Transfers from Stage 3 | 55 | 6 | 13 | 1 | (68) | (7) | — | —
Business activity in the year a | 53,903 | 51 | 3,642 | 77 | 7 | 4 | 57,552 | 132
Refinements to models used for calculation e | — | 2 | — | (22) | — | — | — | (20)
Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 13,788 | 41 | 1,543 | 67 | 5 | 193 | 15,336 | 301
Final repayments b | (41,988) | (32) | (3,365) | (39) | (89) | (44) | (45,442) | (115)
Disposals f | (1,512) | — | — | — | (49) | (47) | (1,561) | (47)
Write-offs c | — | — | — | — | (268) | (268) | (268) | (268)
As at 31 December 2022 d | 200,898 | 276 | 13,598 | 226 | 769 | 237 | 215,265 | 739

Notes
a.Business activity in the year does not include additional drawdowns on the existing facility which are reported under 'Net drawdowns, repayments, net re-measurement
and movements due to exposure and risk parameter changes'.
b.Final repayments include repayment from the facility closed during the year whereas partial repayments from existing facility are reported under 'Net drawdowns,
repayments, net remeasurement and movements due to exposure and risk parameter changes'.
c.In 2022, gross write-offs amounted to £316m (2021: £354m) and post write-off recoveries amounted to £1m (2021: £3m). Net write-offs represent gross write-offs less
post write-off recoveries and amounted to £315m (2021: £351m).
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 79

d.Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other
comprehensive income, accrued income and sundry debtors. These have a total gross exposure of £127.7bn (2021: £120.8bn) and impairment allowance of £149m
(2021: £101m). This comprises £8m ECL (2021: £5m) on £126.4bn Stage 1 assets (2021: £120.7bn), £8m (2021: £0m) on £1,142m Stage 2 fair value through other
comprehensive income assets, cash collateral and settlement assets (2021: £65m) and £133m (2021: £96m) on £137m Stage 3 other assets (2021: £96m).
e.Refinements to models used for calculation include £10m in Credit cards, unsecured loans and other retail lending and £(20)m in Wholesale loans. These reflect model
enhancements made during the year. Barclays continually review the output of models to determine accuracy of the ECL calculation including review of model
monitoring, external benchmarking and experience of model operation over an extended period of time. This ensures that the models used continue to reflect the risks
inherent across the businesses.
f.The £1.6b n of disposals reported within Wholesale loans include sale of debt securities as part of Group Treasury operations.

Reconciliation of ECL movement to credit impairment charge/(release) for the period | Stage 1 | Stage 2 | Stage 3 | Total
| £m | £m | £m | £m
Home loans | 3 | 1 | 25 | 29
Credit cards, unsecured loans and other retail lending | 1 | 26 | 36 | 63
Wholesale loans | 96 | 52 | 150 | 298
ECL movement excluding assets derecognised due to disposals and write-offs | 100 | 79 | 211 | 390
ECL movement on loan commitments and financial guarantees | 10 | (28) | 1 | (17)
ECL movement on other financial assets a | 3 | 8 | 37 | 48
Recoveries and reimbursements b | (113) | (45) | (17) | (175)
Total exchange and other adjustments c |  |  |  | (81)
Total credit impairment charge for the year |  |  |  | 165

Notes
a.Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other
comprehensive income, accrued income and sundry debtors. These have a total gross exposure of £127.7bn (2021: £120.8bn) and impairment allowance of £149m
(2021: £101m). This comprises £8m ECL (2021: £5m) on £126.4bn Stage 1 assets (2021: £120.7bn), £8m (2021: £0m) on £1,142m Stage 2 fair value through other
comprehensive income assets, cash collateral and settlement assets (2021: £65m) and £133m (2021: £96m) on £137m Stage 3 other assets (2021: £96m).
b.Recoveries and reimbursements includes £174m of reimbursements expected to be received under the arrangement where the Bank has entered into financial guarantee
contracts which provide credit protection over certain assets with third parties and cash recoveries of previously written off amounts of £1m.
c.Includes foreign exchange and interest and fees in suspense.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 80

Loan commitments and financial guarantees (audited) | Stage 1 | Stage 2 | Stage 3 | Total
Barclays Bank PLC | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL
| £m | £m | £m | £m | £m | £m | £m | £m
Home loans |  |  |  |  |  |  |  |
As at 1 January 2022 | 34 | — | — | — | — | — | 34 | —
Net transfers between stages | (5) | — | 1 | — | 4 | — | — | —
Business activity in the year | 16 | — | — | — | — | — | 16 | —
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | (1) | — | — | — | — | — | (1) | —
Limit management and final repayments | (17) | — | — | — | — | — | (17) | —
As at 31 December 2022 | 27 | — | 1 | — | 4 | — | 32 | —
Credit cards, unsecured loans and other retail lending |  |  |  |  |  |
As at 1 January 2022 | 5,419 | 7 | 523 | 4 | 21 | 19 | 5,963 | 30
Net transfers between stages | (216) | 6 | 119 | — | 97 | (6) | — | —
Business activity in the year | 1,433 | 1 | 40 | — | 12 | 2 | 1,485 | 3
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | (698) | (8) | 217 | 2 | (66) | 8 | (547) | 2
Limit management and final repayments | (488) | — | (54) | — | (6) | (2) | (548) | (2)
As at 31 December 2022 | 5,450 | 6 | 845 | 6 | 58 | 21 | 6,353 | 33
Wholesale loans |  |  |  |  |  |  |  |
As at 1 January 2022 | 202,582 | 156 | 23,918 | 231 | 857 | 3 | 227,357 | 390
Net transfers between stages | 5,638 | 58 | (5,681) | (62) | 43 | 4 | — | —
Business activity in the year | 41,519 | 25 | 3,415 | 51 | 14 | — | 44,948 | 76
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 32,781 | (43) | 5,284 | 45 | 139 | (3) | 38,204 | (1)
Limit management and final repayments | (51,532) | (29) | (8,879) | (64) | (307) | (2) | (60,718) | (95)
As at 31 December 2022 | 230,988 | 167 | 18,057 | 201 | 746 | 2 | 249,791 | 370

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 81

Loans and advances at amortised cost (audited) | Stage 1 | Stage 2 | Stage 3 | Total
Barclays Bank Group | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL
| £m | £m | £m | £m | £m | £m | £m | £m
Home loans |  |  |  |  |  |  |  |
As at 1 January 2021 | 9,627 | 6 | 901 | 52 | 1,099 | 376 | 11,627 | 434
Transfers from Stage 1 to Stage 2 | (253) | — | 253 | — | — | — | — | —
Transfers from Stage 2 to Stage 1 | 331 | 22 | (331) | (22) | — | — | — | —
Transfers to Stage 3 | (80) | — | (52) | (5) | 132 | 5 | — | —
Transfers from Stage 3 | 22 | — | 49 | 4 | (71) | (4) | — | —
Business activity in the year a | 1,745 | 2 | — | — | — | — | 1,745 | 2
Refinements to models used for calculation b | — | — | — | (4) | — | 38 | — | 34
Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | (742) | (22) | (25) | 11 | (70) | (50) | (837) | (61)
Final repayments c | (890) | — | (142) | (1) | (114) | (4) | (1,146) | (5)
Disposals | — | — | — | — | — | — | — | —
Write-offs d | — | — | — | — | (18) | (18) | (18) | (18)
As at 31 December 2021 e | 9,760 | 8 | 653 | 35 | 958 | 343 | 11,371 | 386
Credit cards, unsecured loans and other retail lending
As at 1 January 2021 | 18,923 | 399 | 5,571 | 1,327 | 1,853 | 1,253 | 26,347 | 2,979
Transfers from Stage 1 to Stage 2 | (897) | (41) | 897 | 41 | — | — | — | —
Transfers from Stage 2 to Stage 1 | 2,520 | 548 | (2,520) | (548) | — | — | — | —
Transfers to Stage 3 | (307) | (13) | (362) | (165) | 669 | 178 | — | —
Transfers from Stage 3 | 21 | 5 | 13 | 9 | (34) | (14) | — | —
Business activity in the year a | 4,731 | 84 | 106 | 23 | 16 | 5 | 4,853 | 112
Refinements to models used for calculation b | — | (3) | — | (27) | — | — | — | (30)
Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 509 | (360) | (514) | 147 | (96) | 337 | (101) | 124
Final repayments c | (1,489) | (14) | (409) | (16) | (76) | (5) | (1,974) | (35)
Disposals f | — | — | — | — | (37) | (22) | (37) | (22)
Write-offs d | — | — | — | — | (826) | (826) | (826) | (826)
As at 31 December 2021 e | 24,011 | 605 | 2,782 | 791 | 1,469 | 906 | 28,262 | 2,302
Wholesale loans |  |  |  |  |  |  |  |
As at 1 January 2021 | 83,254 | 280 | 15,938 | 533 | 2,167 | 840 | 101,359 | 1,653
Transfers from Stage 1 to Stage 2 | (4,122) | (14) | 4,122 | 14 | — | — | — | —
Transfers from Stage 2 to Stage 1 | 5,454 | 179 | (5,454) | (179) | — | — | — | —
Transfers to Stage 3 | (32) | (1) | (164) | (12) | 196 | 13 | — | —
Transfers from Stage 3 | 363 | 3 | 145 | 5 | (508) | (8) | — | —
Business activity in the year a | 27,946 | 74 | 1,674 | 15 | 37 | 23 | 29,657 | 112
Refinements to models used for calculation b | — | — | — | 3 | — | — | — | 3
Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 2,448 | (301) | 1,072 | (14) | (82) | 47 | 3,438 | (268)
Final repayments c | (19,481) | (29) | (4,322) | (168) | (504) | (125) | (24,307) | (322)
Disposals f | (588) | (8) | (49) | (4) | (71) | (41) | (708) | (53)
Write-offs d | — | — | — | — | (314) | (314) | (314) | (314)
As at 31 December 2021 e | 95,242 | 183 | 12,962 | 193 | 921 | 435 | 109,125 | 811

Notes
a.Business activity during the year does not include additional drawdowns on the existing facility which are reported under 'Net drawdowns, repayments, net re-
measurement and movements due to exposure and risk parameter changes'.
b.Refinements to models used for calculation include £34m movement in Home loans, £(30)m in Credit cards, unsecured loans and other retail lending and £3m in
Wholesale loans. These reflect enhancements made during the year. Barclays continually review the output of models to determine accuracy of the ECL calculation
including review of model monitoring, external benchmarking and experience of model operation over an extended period of time. This ensures that the models used
continue to reflect the risks inherent across the businesses.
c.Final repayments include repayment from the facility closed during the year whereas partial repayments from existing facility are reported under 'Net drawdowns,
repayments, net remeasurement and movements due to exposure and risk parameter changes'.
d.In 2021, gross write-offs amounted to £1,158m (2020: £1,337m) and post write-off recoveries amounted to £31m (2020: £4m). Net write-offs represent gross write-
offs less post write-off recoveries and amounted to £1,127m (2020: £1,333m).
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 82

e.Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other
comprehensive income, accrued income and sundry debtors. These have a total gross exposure of £135.5b n (2020: £150.3b n) and impairment allowance of £104m
(2020: £145m). This comprises £4m (2020 £7m) ECL on £135.3b n (2020: £146.3b n) stage 1 assets , £0m (2020: £6m) on £65m (2020: £3.8b n) stage 2 fair value
through other comprehensive income assets, cash collateral and settlement assets and £100m (2020: £132m) on £100m (2020: £132m) Stage 3 other assets .
f.The £37m of disposals reported within Credit cards, unsecured loans and other retail lending portfolio relate to debt sales undertaken during the year. The £708m of
disposal reported within Wholesale loans include debt sales and sale of Barclays Asset Finance.

Reconciliation of ECL movement to credit impairment (release)/charge for the period | Stage 1 | Stage 2 | Stage 3 | Total
| £m | £m | £m | £m
Home loans | 2 | (17) | (15) | (30)
Credit cards, unsecured loans and other retail lending | 206 | (536) | 501 | 171
Wholesale loans | (89) | (336) | (50) | (475)
ECL movement excluding assets derecognised due to disposals and write-offs | 119 | (889) | 436 | (334)
ECL movement on loan commitments and financial guarantees | (36) | (205) | (29) | (270)
ECL movement on other financial assets a | (3) | (6) | (4) | (13)
Recoveries and reimbursements b | 47 | 220 | (8) | 259
Total exchange and other adjustments c |  |  |  | 81
Total credit impairment release for the year |  |  |  | (277)

Notes
a.Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other
comprehensive income, accrued income and sundry debtors. These have a total gross exposure of £135.5b n (2020: £150.3b n) and impairment allowance of £104m
(2020: £145m). This comprises £4m ECL (2020 £7m) on £135.3b n stage 1 assets (2020: £146.3b n), £0m (2020: £6m) on £65m (2020: £3.8b n) stage 2 fair value
through other comprehensive income assets, cash collateral and settlement assets and £100m (2020: £132m) on £100m (2020: £132m) Stage 3 other assets.
b.Recoveries and reimbursements includes a net reduction in amounts recoverable from financial guarantee contracts held with third parties of £290m and cash
recoveries of previously written off amounts to £31m.
c.Includes foreign exchange and interest and fees in suspense.

Loan commitments and financial guarantees (audited) | Stage 1 | Stage 2 | Stage 3 | Total
Barclays Bank Group | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL
| £m | £m | £m | £m | £m | £m | £m | £m
Home loans |  |  |  |  |  |  |  |
As at 1 January 2021 | 125 | — | 2 | — | 4 | — | 131 | —
Net transfers between stages | — | — | — | — | — | — | — | —
Business activity in the year | 19 | — | — | — | — | — | 19 | —
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | (4) | — | — | — | — | — | (4) | —
Limit management and final repayments | (87) | — | (2) | — | (3) | — | (92) | —
As at 31 December 2021 | 53 | — | — | — | 1 | — | 54 | —
Credit cards, unsecured loans and other retail lending
As at 1 January 2021 | 68,211 | 34 | 6,244 | 33 | 30 | 23 | 74,485 | 90
Net transfers between stages | 2,992 | (4) | (3,431) | (2) | 439 | 6 | — | —
Business activity in the year | 10,628 | — | 410 | — | 2 | — | 11,040 | —
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 3,712 | 6 | 585 | 2 | (437) | (9) | 3,860 | (1)
Limit management and final repayments | (6,888) | — | (594) | — | (2) | — | (7,484) | —
As at 31 December 2021 | 78,655 | 36 | 3,214 | 33 | 32 | 20 | 81,901 | 89
Wholesale loans
As at 1 January 2021 | 160,404 | 205 | 39,426 | 446 | 2,031 | 28 | 201,861 | 679
Net transfers between stages | 7,801 | 220 | (6,730) | (214) | (1,071) | (6) | — | —
Business activity in the year | 45,395 | 14 | 4,658 | 102 | 9 | — | 50,062 | 116
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 10,551 | (232) | 2 | 12 | 539 | (13) | 11,092 | (233)
Limit management and final repayments | (46,145) | (40) | (8,939) | (105) | (491) | (7) | (55,575) | (152)
As at 31 December 2021 | 178,006 | 167 | 28,417 | 241 | 1,017 | 2 | 207,440 | 410

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 83

Loans and advances at amortised cost (audited) | Stage 1 | Stage 2 | Stage 3 | Total
Barclays Bank PLC | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL
| £m | £m | £m | £m | £m | £m | £m | £m
Home loans |  |  |  |  |  |  |  |
As at 1 January 2021 | 4,630 | 2 | 146 | 1 | 863 | 338 | 5,639 | 341
Transfers from Stage 1 to Stage 2 | (169) | — | 169 | — | — | — | — | —
Transfers from Stage 2 to Stage 1 | 48 | 1 | (48) | (1) | — | — | — | —
Transfers to Stage 3 | (64) | — | (26) | — | 90 | — | — | —
Transfers from Stage 3 | 16 | — | 17 | 2 | (33) | (2) | — | —
Business activity in the year a | 1,526 | 1 | — | — | — | — | 1,526 | 1
Refinements to models used for calculation b | — | — | — | (3) | — | 30 | — | 27
Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | (173) | 1 | 35 | 2 | (74) | (41) | (212) | (38)
Final repayments c | (464) | — | (73) | — | (106) | (3) | (643) | (3)
Disposals | — | — | — | — | — | — | — | —
Write-offs d | — | — | — | — | (16) | (16) | (16) | (16)
As at 31 December 2021 e | 5,350 | 5 | 220 | 1 | 724 | 306 | 6,294 | 312
Credit cards, unsecured loans and other retail lending
As at 1 January 2021 | 3,576 | 54 | 568 | 43 | 205 | 64 | 4,349 | 161
Transfers from Stage 1 to Stage 2 | (262) | (3) | 262 | 3 | — | — | — | —
Transfers from Stage 2 to Stage 1 | 60 | 12 | (60) | (12) | — | — | — | —
Transfers to Stage 3 | (45) | (1) | (9) | (5) | 54 | 6 | — | —
Transfers from Stage 3 | 3 | — | — | 1 | (3) | (1) | — | —
Business activity in the year a | 1,364 | 7 | 29 | 1 | 9 | — | 1,402 | 8
Refinements to models used for calculation b | — | (3) | — | (1) | — | — | — | (4)
Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | 190 | (28) | (7) | (2) | 6 | 15 | 189 | (15)
Final repayments c | (519) | (2) | (324) | (6) | (48) | (1) | (891) | (9)
Disposals | — | — | — | — | — | — | — | —
Write-offs d | — | — | — | — | (22) | (22) | (22) | (22)
As at 31 December 2021 e | 4,367 | 36 | 459 | 22 | 201 | 61 | 5,027 | 119
Wholesale loans |  |  |  |  |  |  |  |
As at 1 January 2021 | 166,521 | 280 | 15,081 | 499 | 2,020 | 791 | 183,622 | 1,570
Transfers from Stage 1 to Stage 2 | (3,649) | (13) | 3,649 | 13 | — | — | — | —
Transfers from Stage 2 to Stage 1 | 5,126 | 162 | (5,126) | (162) | — | — | — | —
Transfers to Stage 3 | (31) | (1) | (134) | (5) | 165 | 6 | — | —
Transfers from Stage 3 | 363 | 4 | 113 | 5 | (476) | (9) | — | —
Business activity in the year a | 37,978 | 74 | 1,836 | 12 | 37 | 23 | 39,851 | 109
Refinements to models used for calculation b | — | — | — | 2 | — | — | — | 2
Net drawdowns, repayments, net re- measurement and movements due to exposure and risk parameter changes | (1,553) | (289) | 1,056 | (19) | (75) | 72 | (572) | (236)
Final repayments c | (27,421) | (29) | (4,285) | (167) | (502) | (123) | (32,208) | (319)
Transfer to Barclays Bank Ireland | (45) | — | — | — | (3) | — | (48) | —
Disposals f | (588) | (8) | (49) | (4) | (44) | (42) | (681) | (54)
Write-offs d | — | — | — | — | (316) | (316) | (316) | (316)
As at 31 December 2021 e | 176,701 | 180 | 12,141 | 174 | 806 | 402 | 189,648 | 756

Notes
a.Business activity during the year does not include additional drawdowns on the existing facility which are reported under 'Net drawdowns, repayments, net re-
measurement and movements due to exposure and risk parameter changes'.
b.Refinements to models used for calculation include £27m movement in Home loans, £(4)m in Credit cards, unsecured loans and other retail lending and £2m in Wholesale
loans. These reflect methodology changes made during the year. Barclays continually review the output of models to determine accuracy of the ECL calculation including
review of model monitoring, external benchmarking and experience of model operation over an extended period of time. This ensures that the models used continue to
reflect the risks inherent across the businesses.
c.Final repayments include repayment from the facility closed during the year whereas partial repayments from existing facility are reported under 'Net drawdowns,
repayments, net remeasurement and movements due to exposure and risk parameter changes'.
d.In 2021, gross write-offs amounted to £354m (2020: £301m) and post write-off recoveries amounted to £3m (2020: £4m). Net write-offs represent gross write-offs less
post write-off recoveries and amounted to £351m (£297m).
e.Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other
comprehensive income, accrued income and sundry debtors. These have a total gross exposure of £120.8bn (2020: £138.9bn) and impairment allowance of £101m
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 84

(2020: £146m). This comprises £5m ECL (2020: £13m) on £120.7bn (2020: £134.9bn) stage 1 assets , £0m (2020: £5m) on £65m stage 2 fair value through other
comprehensive income assets, cash collateral and settlement (2020: £3.8bn) and £96m (2020: £128m) on £96m Stage 3 other assets (2020: £128m).
f.The £681m of disposal reported within Wholesale loans include debt sales and sale of Barclays Asset Finance.

Reconciliation of ECL movement to credit impairment (release)/charge for the period | Stage 1 | Stage 2 | Stage 3 | Total
| £m | £m | £m | £m
Home loans | 3 | — | (16) | (13)
Credit cards, unsecured loans and other retail lending | (18) | (21) | 19 | (20)
Wholesale loans | (92) | (321) | (31) | (444)
ECL movement excluding assets derecognised due to disposals and write-offs | (107) | (342) | (28) | (477)
Credit impairment release on loan commitments and financial guarantees | (35) | (170) | (29) | (234)
Credit impairment release on other financial assets a | (8) | (5) | (4) | (17)
Recoveries and reimbursements b | 36 | 217 | 21 | 274
Total exchange and other adjustments c |  |  |  | 40
Total credit impairment release for the year |  |  |  | (414)

Notes
a.Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other
comprehensive income, accrued income and sundry debtors. These have a total gross exposure of £120.8bn (2020: £138.9bn) and impairment allowance of £101m
(2020: £146m). This comprises £5m ECL (2020: £13m) on £120.7bn stage 1 assets (2020: £134.9bn), £0m (2020: £5m) on £65m stage 2 fair value through other
comprehensive income assets, cash collateral and other settlement assets (2020: £3.8bn) and £96m (2020: £128m) on £96m Stage 3 other assets (2020: £128m).
b.Recoveries and reimbursements includes a net reduction in amounts recoverable from financial guarantee contracts held with third parties of £277 m and cash recoveries
of previously written off amounts of £3 m.
c.Includes foreign exchange and interest and fees in suspense.

Loan commitments and financial guarantees (audited) | Stage 1 | Stage 2 | Stage 3 | Total
Barclays Bank PLC | Gross | ECL | Gross | ECL | Gross | ECL | Gross | ECL
| £m | £m | £m | £m | £m | £m | £m | £m
Home loans |  |  |  |  |  |  |  |
As at 1 January 2021 | 26 | — | 2 | — | — | — | 28 | —
Net transfers between stages | — | — | — | — | — | — | — | —
Business activity in the year | 14 | — | — | — | — | — | 14 | —
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | — | — | — | — | — | — | — | —
Limit management and final repayments | (6) | — | (2) | — | — | — | (8) | —
As at 31 December 2021 | 34 | — | — | — | — | — | 34 | —
Credit cards, unsecured loans and other retail lending |  |  |  |  |  |
As at 1 January 2021 | 5,173 | 11 | 667 | 7 | 29 | 23 | 5,869 | 41
Net transfers between stages | 142 | (4) | (181) | (2) | 39 | 6 | — | —
Business activity in the year | 1,018 | — | 13 | — | 1 | — | 1,032 | —
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | (222) | — | 139 | (1) | (46) | (10) | (129) | (11)
Limit management and final repayments | (692) | — | (115) | — | (2) | — | (809) | —
As at 31 December 2021 | 5,419 | 7 | 523 | 4 | 21 | 19 | 5,963 | 30
Wholesale loans d |  |  |  |  |  |  |  |
As at 1 January 2021 | 174,115 | 187 | 35,279 | 398 | 1,926 | 28 | 211,320 | 613
Net transfers between stages | 7,926 | 189 | (6,922) | (182) | (1,004) | (7) | — | —
Business activity in the year | 53,175 | 17 | 3,923 | 98 | 9 | — | 57,107 | 115
Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes | 11,827 | (201) | 457 | 17 | 404 | (12) | 12,688 | (196)
Transfer to Barclays Bank Ireland | (952) | — | (155) | — | (3) | — | (1,110) | —
Limit management and final repayments | (43,509) | (36) | (8,664) | (100) | (475) | (6) | (52,648) | (142)
As at 31 December 2021 | 202,582 | 156 | 23,918 | 231 | 857 | 3 | 227,357 | 390

d.Barclays Bank PLC has issued £14.5b n (2020: £13.9b n) of guarantees to its subsidiaries and other subsidiaries of Barclays PLC. These guarantees were not reported in prior
periods and the comparatives have been restated.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 85

Stage 2 decomposition

Loans and advances at amortised cost a |  |  |  |  |  |  |
| Gross Exposure |  | Impairment Allowance
| Quantitative test | Qualitative test | 30 days past due backstop | Total Stage 2 |  | Quantitative test | Qualitative test | 30 days past due backstop | Total Stage 2
As at 31 December 2022 | £m | £m | £m | £m |  | £m | £m | £m | £m
Home Loans | 225 | 73 | 64 | 362 |  | 20 | 2 | 3 | 25
Credit cards, unsecured loans and other retail lending | 3,286 | 1,200 | 100 | 4,586 |  | 855 | 323 | 24 | 1,202
Wholesale loans | 11,683 | 2,177 | 141 | 14,001 |  | 192 | 68 | 2 | 262
Total Stage 2 | 15,194 | 3,450 | 305 | 18,949 |  | 1,067 | 393 | 29 | 1,489

Loans and advances at amortised cost a |  |  |  |  |  |  |
| Gross Exposure |  | Impairment Allowance
| Quantitative test | Qualitative test | 30 days past due backstop | Total Stage 2 |  | Quantitative test | Qualitative test | 30 days past due backstop | Total Stage 2
As at 31 December 2021 | £m | £m | £m | £m |  | £m | £m | £m | £m
Home Loans | 530 | 83 | 40 | 653 |  | 23 | 4 | 8 | 35
Credit cards, unsecured loans and other retail lending | 1,627 | 1,079 | 76 | 2,782 |  | 505 | 273 | 13 | 791
Wholesale loans | 11,132 | 1,431 | 399 | 12,962 |  | 151 | 37 | 5 | 193
Total Stage 2 | 13,289 | 2,593 | 515 | 16,397 |  | 679 | 314 | 26 | 1,019

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 probability of default (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 include £2.2b n (2021: £1.4b n) relating to Corporate and Investment Bank and
£1.2b n (2021: £1.1b n) relating to Consumer, Cards and Payments.
A small number of other accounts (2% of impairment allowances and 0% 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 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.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 86

Stage 3 decomposition

Loans and advances at amortised cost |  |  |  |  |  |  |
| Gross Exposure |  | Impairment Allowance
| Exposures not charged-off including within cure period a | Exposures individually assessed or in recovery book | Total Stage 3 |  | Exposures not charged-off including within cure period a | Exposures individually assessed or in recovery book | Total Stage 3
As at 31 December 2022 | £m | £m | £m |  | £m | £m | £m
Home Loans | 280 | 698 | 978 |  | 24 | 332 | 356
Credit cards, unsecured loans and other retail lending | 755 | 919 | 1,674 |  | 421 | 583 | 1,004
Wholesale loans | 100 | 818 | 918 |  | 1 | 277 | 278
Total Stage 3 | 1,135 | 2,435 | 3,570 |  | 446 | 1,192 | 1,638

Loans and advances at amortised cost |  |  |  |  |  |  |
| Gross Exposure |  | Impairment Allowance
| Exposures not charged-off including within cure perioda | Exposures individually assessed or in recovery book | Total Stage 3 |  | Exposures not charged-off including within cure perioda | Exposures individually assessed or in recovery book | Total Stage 3
As at 31 December 2021 | £m | £m | £m |  | £m | £m | £m
Home Loans | 274 | 684 | 958 |  | 21 | 322 | 343
Credit cards, unsecured loans and other retail lending | 592 | 877 | 1,469 |  | 297 | 609 | 906
Wholesale loans | 38 | 883 | 921 |  | 1 | 434 | 435
Total Stage 3 | 904 | 2,444 | 3,348 |  | 319 | 1,365 | 1,684

Notes
a Includes £0.4b n (2021: £0.7b n) of gross exposure in a cure period that must remain in Stage 3 for a minimum of 12 months before moving to Stage 2.
Stage 3 is comprised of exposures that are considered to be credit impaired. An asset is considered credit impaired when one or more events occur that
have a detrimental impact on the estimated future cash flows of the financial asset. This comprises assets defined as defaulted and other individually
assessed exposures where imminent default or actual loss is identified. Stage 3 exposures have increased compared to 2021 due to a gradual increase
in delinquencies in retail unsecured lending.
Management adjustments to models for impairment (audited)
Management adjustments to impairment models are applied in order to factor in certain conditions or changes in policy that are not fully incorporated
into the impairment models, or to reflect additional facts and circumstances at the period end. Management adjustments are reviewed and incorporated
into future model development where applicable.
Management adjustments are captured through “Economic uncertainty” and “Other” adjustments presented by product below:

Management adjustments to models for impairment allowance presented by product (audited)a
| Impairment allowance pre management adjustments b | Economic uncertainty adjustments (a) | Other adjustments (b) | Management adjustments (a+b) | Total impairment allowance c | Proportion of Management adjustments to total impairment allowance
As at 31 December 2022 | £m | £m | £m | £m | £m | %
Home loans | 393 | — | — | — | 393 | —
Credit cards, unsecured loans and other retail lending | 2,627 | 2 | 90 | 92 | 2,719 | 3.4
Wholesale loans | 1,354 | 95 | (209) | (114) | 1,240 | (9.2)
Total | 4,374 | 97 | (119) | (22) | 4,352 | (0.5)

As at 31 December 2021 | £m | £m | £m | £m | £m | %
Home loans | 352 | 34 | — | 34 | 386 | 0.088
Credit cards, unsecured loans and other retail lending | 1,425 | 771 | 195 | 966 | 2,391 | 0.404
Wholesale loans | 1,079 | 244 | (102) | 142 | 1,221 | 0.116
Total | 2,856 | 1,049 | 93 | 1,142 | 3,998 | 0.286

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 87

Economic uncertainty adjustments are presented by stage (audited)
| Stage 1 | Stage 2 | Stage 3 | Total
As at 31 December 2022 | £m | £m | £m | £m
Home loans | — | — | — | —
Credit cards, unsecured loans and other retail lending | — | 2 | — | 2
Wholesale loans | 97 | (2) | — | 95
Total | 97 | — | — | 97

As at 31 December 2021 | £m | £m | £m | £m
Home loans | — | 23 | 11 | 34
Credit cards, unsecured loans and other retail lending | 369 | 394 | 8 | 771
Wholesale loans | 176 | 68 | — | 244
Total | 545 | 485 | 19 | 1,049

Notes:
a.Positive values reflect an increase in impairment allowance and negative values reflect a reduction in the impairment allowance.
b.Includes £3.7bn (2021: £2.3bn) of modelled ECL, £0.3b n (2021: £0.5bn) of individually assessed impairments and £0.4b n (2021: £0.1bn) ECL from non-modelled
exposures.
c.Total impairment allowance consists of ECL stock on drawn and undrawn exposures.
Economic uncertainty adjustments
Models have been developed with data from non-inflationary periods establishing a relationship between input variables and customer delinquency
based on past behaviour. Additionally, models are trying to interpret significant rates of change in macroeconomic variables and applying these to
stable probability of default (PD) levels. As such there is a risk that the modelled output fails to capture the appropriate response to changes in
macroeconomic variables and rising costs with modelled impairment provisions impacted by uncertainty.
This uncertainty continues to be captured in two ways. Firstly, customer uncertainty: the identification of customers and clients who may be more
vulnerable to economic instability; and secondly, model uncertainty: to capture the impact from model limitations and sensitivities to specific
macroeconomic parameters which are applied at a portfolio level.
In 2022, previously established economic uncertainty adjustments have been partially released, informed by some normalisation of customer behaviour,
refreshed macroeconomic scenarios and a rebuild of certain models to better capture the macroeconomic outlook.
The balance as at 31 December 2022 is £97 m (FY21: £1,049 m) and includes:
Customer and client uncertainty provisions of £193m (FY21: £906m) includes:
•Credit cards and unsecured loans and other retail lending: £2m (FY21: £758m)
The decrease in the adjustment of £(756)m is attributable to some normalisation of customer behaviour and macroeconomic deterioration now
approp riately captured within the modelled output post model enhancements made during the year.
•Wholesale loans: £191m (FY21: £148m) includes an adjustment for exposures considered most at risk from inflationary concerns, supply chain
constraints and consumer demand headwinds. The adjustment involves applying stage 2 coverage rates to stage 1 exposures assessed as most
vulnerable.
Model uncertainty provisions of £(96)m (FY21: £143m) includes:
•Wholesale loans: £(96)m (FY21: £96m) includes an adjustment to correct for the deterioration in wholesale PDs impacted by model over-
sensitivity to certain macroeconomic variable s. In 2021, this adjustment was held at £96m driven by an unintuitive model output from certain
Q421 macroeconomic variables.
Other adjustments
Other adjustments are operational in nature and are expected to remain in place until they can be reflected in the underlying models. These adjustments
result from data limitations and model performance related issues identified through model monitoring and other established governance processes.
Other adjustments of £(119)m (FY21: £93m) include:
•Credit cards and unsecured loan and other retail lending: £90m (FY21: £195m) primarily includes an adjustment to the qualitative measures
used in identification of high-risk account management (HRAM) accounts for US cards and an adjustment for adoption of the new definition of
default under the Capital Requirements Regulation.
The £195m adjustments held in FY21 primarily included adjustments for model performance informed by model monitoring. These adjustments
are no longer required due to model enhancements made during the year.
•Wholesale loans: £(209)m (FY21: £(102)m) primarily includes adjustments for model performance informed by model monitoring.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 88

Measurement uncertainty and sensitivity analysis
The measurement of modelled ECL involves complexity and judgement, including estimation of probabilities of default (PD), loss given default (LGD), a
range of unbiased future economic scenarios, estimation of expected lives, estimation of exposures at default (EAD) and assessing significant increases
in credit risk. The Barclays Bank Group uses a five-scenario model to calculate ECL. An external consensus forecast is assembled from key sources,
including HM Treasury (short and medium term forecasts), and Bloomberg (based on median of economic forecasts) which forms the Baseline
scenario. In addition, two adverse scenarios (Downside 1 and Downside 2) and two favourable scenarios (Upside 1 and Upside 2) are derived, with
associated probability weightings. The adverse scenarios are calibrated to a broadly similar severity to the Barclays Bank Group's internal stress tests and
stress scenarios provided by regulators whilst also considering IFRS 9 specific sensitivities and non-linearity. The favourable scenarios are designed to
reflect plausible upside risks to the Baseline scenario which are broadly consistent with the economic narrative approved by the Senior Scenario Review
Committee. All scenarios are regenerated at a minimum semi-annually. The scenarios include key economic varia bles (inc luding GDP, unemployment,
House Price Index (HPI) and base rates in both the UK and US markets), and expanded variables using statistical models based on historical correlations.
The upside and downside shocks are designed to evolve over a five-year stress horizon, with all five scenarios converging to a steady state after
approximately seven years.
Scenarios used to calculate the Barclays Bank Group’s ECL charge were refreshed in Q422 with the Baseline scenario reflecting the latest consensus
macroeconomic forecasts available at the time of the scenario refresh. In the Baseline scenario, further deterioration in major economies, as inflation
pressures continue to squeeze household income, along with significant monetary policy tightening, contribute to lower growth prospects. UK GDP is
expected to continue falling into 2023 and the US economy dips into mild recession in 2023. Slight increases in the UK and US unemployment rates are
expected, peaking at 4.9% in Q423 and 4.7% in Q124 respectively. Central banks continue raising interest rates, peaking during 2023, and consumer
price inflation eases over 2023.
In the Downside 2 scenario, inflation continues to accelerate amid increasing gas and oil prices and persistent supply-chain pressures as a result of the
Russian invasion of Ukraine. Central banks are forced to raise interest rates sharply with the UK bank rate reaching 8.0% and the US federal funds rate
peaking at 7.0%. Unemployment peaks at 8.5% in the UK and 8.6% in the US. Given already stretched valuations, the sharp increase in borrowing costs
sees house prices decrease significantly. In the Upside 2 scenario, lower energy prices add downward pressure on prices globally, while recovering
labour force participation limits wage growth. As a result of easing inflation, central banks lower interest rates to support the economic recovery.
The methodology for estimating scenario probability weights involves simulating a range of future paths for UK and US GDP using historical data with
the five scenarios mapped against the distribution of these future paths. The median is centred around the Baseline with scenarios further from the
Baseline attracting a lower weighting before the five weights are normalised to total 100%. The same scenarios used in the estimation of expected
credit losses are also used to inform the Barclays Bank Group's internal planning purposes. The impacts across the portfolios are different because of
the sensitivities of each of the portfolios to specific macroeconomic variables, for example, mortgages are highly sensitive to house prices, credit cards
and unsecured consumer loans are highly sensitive to unemployment. The increase in the Downside weightings and the decrease in the Upside
weightings reflected the deteriorating economic outlook which moved the Baseline UK/US GDP paths closer to the Downside scenarios For further
details see page 92.
The economic uncertainty adjustments of £0.1bn (2021: £1.0bn) have been applied as overlays to the modelled ECL output. These adjustments consist
of a customer and client uncertainty provision of £0.2bn (2021: £0.9bn), which has been applied to customers and clients considered most vulnerable
to affordability pressures, and a model uncertainty adjustment of £(0.1)bn (2021: £0.1bn). For further details see page 88.
The tables below show the key macroeconomic variables used in the five scenarios (five year annual paths), the probability weights applied to each
scenario and the macroeconomic variables by scenario using ‘specific bases’ i.e. the most extreme position of each variable in the context of the
scenario, for example, the highest unemployment for downside scenarios and the lowest unemployment for upside scenarios. five year average tables
and movement over time graphs provide additional transparency. Annual paths show quarterly averages for the year (unemployment and base rate) or
change in the year (GDP and HPI).
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 89

Baseline average macroeconomic variables used in the calculation of ECL
| 2022 | 2023 | 2024 | 2025 | 2026
As at 31 December 2022 | % | % | % | % | %
UK GDP a | 3.3 | (0.8) | 0.9 | 1.8 | 1.9
UK unemployment b | 3.7 | 4.5 | 4.4 | 4.1 | 4.2
UK HPI c | 8.4 | (4.7) | (1.7) | 2.2 | 2.2
UK bank rate | 1.8 | 4.4 | 4.1 | 3.8 | 3.4
US GDP a | 1.8 | 0.5 | 1.2 | 1.5 | 1.5
US unemployment d | 3.7 | 4.3 | 4.7 | 4.7 | 4.7
US HPI e | 11.2 | 1.8 | 1.5 | 2.3 | 2.4
US federal funds rate | 2.1 | 4.8 | 3.6 | 3.1 | 3.0
| 2021 | 2022 | 2023 | 2024 | 2025
As at 31 December 2021 | % | % | % | % | %
UK GDP a | 6.2 | 4.9 | 2.3 | 1.9 | 1.7
UK unemployment b | 4.8 | 4.7 | 4.5 | 4.3 | 4.2
UK HPI c | 4.7 | 1.0 | 1.9 | 1.9 | 2.3
UK bank rate | 0.1 | 0.8 | 1.0 | 1.0 | 0.8
US GDP a | 5.5 | 3.9 | 2.6 | 2.4 | 2.4
US unemployment d | 5.5 | 4.2 | 3.6 | 3.6 | 3.6
US HPI e | 11.8 | 4.5 | 5.2 | 4.9 | 5.0
US federal funds rate | 0.2 | 0.3 | 0.9 | 1.2 | 1.3
Downside 2 average macroeconomic variables used in the calculation of ECL
| 2022 | 2023 | 2024 | 2025 | 2026
As at 31 December 2022 | % | % | % | % | %
UK GDP a | 3.3 | (3.4) | (3.8) | 2.0 | 2.3
UK unemployment b | 3.7 | 6.0 | 8.4 | 8.0 | 7.4
UK HPI c | 8.4 | (18.3) | (18.8) | (7.7) | 8.2
UK bank rate | 1.8 | 7.3 | 7.9 | 6.6 | 5.5
US GDP a | 1.8 | (2.7) | (3.4) | 2.0 | 2.6
US unemployment d | 3.7 | 6.0 | 8.5 | 8.1 | 7.1
US HPI e | 11.2 | (3.1) | (4.0) | (1.9) | 4.8
US federal funds rate | 2.1 | 6.6 | 6.9 | 5.8 | 4.6
| 2021 | 2022 | 2023 | 2024 | 2025
As at 31 December 2021 | % | % | % | % | %
UK GDP a | 6.2 | 0.2 | (4.0) | 2.8 | 4.3
UK unemployment b | 4.8 | 7.2 | 9.0 | 7.6 | 6.3
UK HPI c | 4.7 | (14.3) | (21.8) | 11.9 | 15.2
UK bank rate | 0.1 | 2.2 | 3.9 | 3.1 | 2.2
US GDP a | 5.5 | (0.8) | (3.5) | 2.5 | 3.2
US unemployment d | 5.5 | 6.4 | 9.1 | 8.1 | 6.4
US HPI e | 11.8 | (6.6) | (9.0) | 5.9 | 6.7
US federal funds rate | 0.2 | 2.1 | 3.4 | 2.6 | 2.0

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 90

Downside 1 average macroeconomic variables used in the calculation of ECL
| 2022 | 2023 | 2024 | 2025 | 2026
As at 31 December 2022 | % | % | % | % | %
UK GDP a | 3.3 | (2.1) | (1.5) | 1.9 | 2.1
UK unemployment b | 3.7 | 5.2 | 6.4 | 6.0 | 5.8
UK HPI c | 8.4 | (11.7) | (10.6) | (2.8) | 5.2
UK bank rate | 1.8 | 5.9 | 6.1 | 5.3 | 4.6
US GDP a | 1.8 | (1.1) | (1.1) | 1.7 | 2.1
US unemployment d | 3.7 | 5.1 | 6.6 | 6.4 | 5.9
US HPI e | 11.2 | (0.7) | (1.3) | 0.2 | 3.6
US federal funds rate | 2.1 | 5.8 | 5.4 | 4.4 | 3.9
| 2021 | 2022 | 2023 | 2024 | 2025
As at 31 December 2021 | % | % | % | % | %
UK GDP a | 6.2 | 2.8 | (0.7) | 2.3 | 2.9
UK unemployment b | 4.8 | 6.2 | 6.8 | 6.0 | 5.3
UK HPI c | 4.7 | (6.8) | (10.5) | 6.9 | 8.6
UK bank rate | 0.1 | 1.6 | 2.7 | 2.3 | 1.6
US GDP a | 5.5 | 1.6 | (0.4) | 2.4 | 2.7
US unemployment d | 5.5 | 5.4 | 6.6 | 6.1 | 5.2
US HPI e | 11.8 | (1.2) | (2.1) | 4.8 | 5.2
US federal funds rate | 0.2 | 1.3 | 2.3 | 2.1 | 1.8
Upside 2 average macroeconomic variables used in the calculation of ECL
| 2022 | 2023 | 2024 | 2025 | 2026
As at 31 December 2022 | % | % | % | % | %
UK GDP a | 3.3 | 2.8 | 3.7 | 2.9 | 2.4
UK unemployment b | 3.7 | 3.5 | 3.4 | 3.4 | 3.4
UK HPI c | 8.4 | 8.7 | 7.5 | 4.4 | 4.2
UK bank rate | 1.8 | 3.1 | 2.6 | 2.5 | 2.5
US GDP a | 1.8 | 3.3 | 3.5 | 2.8 | 2.8
US unemployment d | 3.7 | 3.3 | 3.3 | 3.3 | 3.3
US HPI e | 11.2 | 5.8 | 5.1 | 4.5 | 4.5
US federal funds rate | 2.1 | 3.6 | 2.9 | 2.8 | 2.8
| 2021 | 2022 | 2023 | 2024 | 2025
As at 31 December 2021 | % | % | % | % | %
UK GDP a | 6.2 | 7.2 | 4.0 | 2.7 | 2.1
UK unemployment b | 4.8 | 4.5 | 4.1 | 4.0 | 4.0
UK HPI c | 4.7 | 8.5 | 9.0 | 5.2 | 4.2
UK bank rate | 0.1 | 0.2 | 0.5 | 0.5 | 0.3
US GDP a | 5.5 | 5.3 | 4.1 | 3.5 | 3.4
US unemployment d | 5.5 | 3.9 | 3.4 | 3.3 | 3.3
US HPI e | 11.8 | 10.6 | 8.5 | 7.2 | 6.6
US federal funds rate | 0.2 | 0.3 | 0.4 | 0.7 | 1.0

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 91

Upside 1 average macroeconomic variables used in the calculation of ECL
| 2022 | 2023 | 2024 | 2025 | 2026
As at 31 December 2022 | % | % | % | % | %
UK GDP a | 3.3 | 1.0 | 2.3 | 2.4 | 2.1
UK unemployment b | 3.7 | 4.0 | 3.9 | 3.8 | 3.8
UK HPI c | 8.4 | 1.8 | 2.9 | 3.3 | 3.2
UK bank rate | 1.8 | 3.5 | 3.3 | 3.0 | 2.8
US GDP a | 1.8 | 1.9 | 2.3 | 2.2 | 2.2
US unemployment d | 3.7 | 3.8 | 4.0 | 4.0 | 4.0
US HPI e | 11.2 | 3.8 | 3.3 | 3.4 | 3.4
US federal funds rate | 2.1 | 3.9 | 3.4 | 3.0 | 3.0
| 2021 | 2022 | 2023 | 2024 | 2025
As at 31 December 2021 | % | % | % | % | %
UK GDP a | 6.2 | 6.0 | 3.1 | 2.3 | 1.9
UK unemployment b | 4.8 | 4.6 | 4.3 | 4.2 | 4.1
UK HPI c | 4.7 | 5.0 | 5.0 | 3.9 | 3.3
UK bank rate | 0.1 | 0.6 | 0.8 | 0.8 | 0.5
US GDP a | 5.5 | 4.6 | 3.4 | 2.9 | 2.9
US unemployment d | 5.5 | 4.0 | 3.5 | 3.5 | 3.5
US HPI e | 11.8 | 8.3 | 7.0 | 6.0 | 5.7
US federal funds rate | 0.2 | 0.3 | 0.6 | 1.0 | 1.1

Notes
a Average Real GDP seasonally adjusted change in year.
b Average UK unemployment rate 16-year+.
c Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end.
d Average US civilian unemployment rate 16-year+.
e Change in year end US HPI = FHFA house price index, relative to prior year end.

Scenario probability weighting (audited)a
| Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2
| % | % | % | % | %
As at 31 December 2022 |  |  |  |  |
Scenario probability weighting | 10.9 | 23.1 | 39.4 | 17.6 | 9.0
As at 31 December 2021 |  |  |  |  |
Scenario probability weighting | 20.9 | 27.2 | 30.1 | 14.8 | 7.0

Note
a For further details on changes to scenario weights see page 89.
Specific bases show the most extreme position of each variable in the context of the downside/upside scenarios, for example, the highest
unemployment for downside scenarios, average unemployment for baseline scenarios and lowest unemployment for upside scenarios. GDP and HPI
downside and upside scenario data represents the lowest and highest points relative to the start point in the 20 quarter period.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 92

Macroeconomic variables used in the calculation of ECL (specific bases) (audited)a
| Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2
| % | % | % | % | %
As at 31 December 2022 |  |  |  |  |
UK GDP b | 13.9 | 9.4 | 1.4 | (3.2) | (6.8)
UK unemployment c | 3.4 | 3.6 | 4.2 | 6.6 | 8.5
UK HPI d | 37.8 | 21.0 | 1.2 | (17.9) | (35.0)
UK bank rate c | 0.5 | 0.5 | 3.5 | 6.3 | 8.0
US GDP b | 14.1 | 9.6 | 1.3 | (2.5) | (6.3)
US unemployment c | 3.3 | 3.6 | 4.4 | 6.7 | 8.6
US HPI d | 35.0 | 27.5 | 3.8 | 3.7 | 0.2
US federal funds rate c | 0.1 | 0.1 | 3.3 | 6.0 | 7.0
As at 31 December 2021 |  |  |  |  |
UK GDP b | 21.4 | 18.3 | 3.4 | (1.6) | (1.6)
UK unemployment c | 4.0 | 4.1 | 4.5 | 7.0 | 9.2
UK HPI d | 35.7 | 23.8 | 2.4 | (12.7) | (29.9)
UK bank rate c | 0.1 | 0.1 | 0.7 | 2.8 | 4.0
US GDP b | 22.8 | 19.6 | 3.4 | 1.5 | (1.3)
US unemployment c | 3.3 | 3.5 | 4.1 | 6.8 | 9.5
US HPI d | 53.3 | 45.2 | 6.2 | 2.2 | (5.0)
US federal funds rate c | 0.1 | 0.1 | 0.8 | 2.3 | 3.5

Average basis represents the average quarterly value of variables in the 20 quarter period with GDP and HPI based on yearly average and quarterly
CAGRs respectively.

Macroeconomic variables used in the calculation of ECL (5 year averages) (audited)a
| Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2
| % | % | % | % | %
As at 31 December 2022 |  |  |  |  |
UK GDP e | 3.0 | 2.2 | 1.4 | 0.7 | 0.0
UK unemployment f | 3.5 | 3.8 | 4.2 | 5.4 | 6.7
UK HPI g | 6.6 | 3.9 | 1.2 | (2.6) | (6.4)
UK bank rate f | 2.5 | 2.9 | 3.5 | 4.7 | 5.8
US GDP e | 2.9 | 2.1 | 1.3 | 0.7 | 0.0
US unemployment f | 3.4 | 3.9 | 4.4 | 5.5 | 6.7
US HPI g | 6.2 | 5.0 | 3.8 | 2.5 | 1.2
US federal funds rate f | 2.8 | 3.1 | 3.3 | 4.3 | 5.2
As at 31 December 2021 |  |  |  |  |
UK GDP e | 4.4 | 3.9 | 3.4 | 2.7 | 1.8
UK unemployment f | 4.3 | 4.4 | 4.5 | 5.8 | 7.0
UK HPI g | 6.3 | 4.4 | 2.4 | 0.3 | (2.0)
UK bank rate f | 0.3 | 0.5 | 0.7 | 1.7 | 2.3
US GDP e | 4.4 | 3.9 | 3.4 | 2.4 | 1.3
US unemployment f | 3.9 | 4.0 | 4.1 | 5.7 | 7.1
US HPI g | 8.9 | 7.7 | 6.2 | 3.6 | 1.4
US federal funds rate f | 0.5 | 0.6 | 0.8 | 1.5 | 2.1

Notes
a UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK unemployment rate 16-year+; UK HPI = Halifax All Houses, All Buyers Index; US GDP = Real GDP
growth seasonally adjusted; US unemployment = US civilian unemployment rate 16-year+; US HPI = FHFA house price index. 20 quarter period starts from Q121 (2020:
Q120).
b Maximum growth relative to Q420 (2021: Q419), based on 20 quarter period in Upside scenarios; 5-year yearly average CAGR in Baseline; minimum growth relative to
Q 420 (2021: Q 419), based on 20 quarter period in Downside scenarios.
c Lowest quarter in Upside scenarios; 5-year average in Baseline; highest quarter in Downside scenarios. Period based on 20 quarters from Q 121 (2021: Q120).
d Maximum growth relative to Q420 (2021: Q419), based on 20 quarter period in Upside scenarios; 5-year quarter end CAGR in Baseline; minimum growth relative to Q 420
(2021: Q 419), based on 20 quarter period in Downside scenarios.
e 5-year yearly average CAGR, starting 2021 (2021: 2020).
f 5-year average. Period based on 20 quarters from Q 121 (2021: Q 120).
g 5-year quarter end CAGR, starting Q 420 (2021: Q 419).
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 93

The graphs below plot the historical data for GDP growth rate and unemployment rate in the UK and US as well as the forecasted data under each of the
five scenarios.
GDP growth based on year on year growth each quarter (Q/(Q-4))
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 94

ECL under 100% weighted scenarios for modelled portfolios (audited)
The table below shows the Expected Credit Loss (ECL) assuming scenarios have been 100% weighted with the dispersion of results around the Baseline,
highlighting the impact on exposure and ECL across the scenarios.
Model exposure uses exposure at default (EAD) values and is not directly comparable to gross exposure used in prior disclosures.

| Scenarios
As at 31 December 2022 | Weighted a | Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2
Stage 1 Model exposure (£m) |  |  |  |  |  |
Home loans | 3,622 | 3,652 | 3,642 | 3,627 | 3,593 | 3,557
Credit cards, unsecured loans and other retail lending b, c | 55,016 | 54,797 | 54,789 | 54,855 | 55,062 | 55,197
Wholesale loans | 167,476 | 171,642 | 170,664 | 169,325 | 163,888 | 152,417
Stage 1 Model ECL (£m) |  |  |  |  |  |
Home loans | 3 | 3 | 3 | 3 | 3 | 4
Credit cards, unsecured loans and other retail lending | 436 | 415 | 427 | 438 | 445 | 452
Wholesale loans | 287 | 220 | 243 | 273 | 337 | 379
Stage 1 Coverage (%) |  |  |  |  |  |
Home loans | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1
Credit cards, unsecured loans and other retail lending | 0.8 | 0.8 | 0.8 | 0.8 | 0.8 | 0.8
Wholesale loans | 0.2 | 0.1 | 0.1 | 0.2 | 0.2 | 0.2
Stage 2 Model exposure (£m) |  |  |  |  |  |
Home loans | 252 | 223 | 233 | 248 | 281 | 317
Credit cards, unsecured loans and other retail lending b, c | 4,865 | 4,411 | 4,713 | 4,996 | 5,250 | 5,657
Wholesale loans | 18,850 | 14,684 | 15,662 | 17,001 | 22,438 | 33,909
Stage 2 Model ECL (£m) |  |  |  |  |  |
Home loans | 24 | 14 | 18 | 22 | 34 | 45
Credit cards, unsecured loans and other retail lending | 1,173 | 1,037 | 1,105 | 1,173 | 1,269 | 1,402
Wholesale loans | 521 | 360 | 411 | 482 | 682 | 1,092
Stage 2 Coverage (%) |  |  |  |  |  |
Home loans | 9.5 | 6.3 | 7.7 | 8.9 | 12.1 | 14.2
Credit cards, unsecured loans and other retail lending | 24.1 | 23.5 | 23.4 | 23.5 | 24.2 | 24.8
Wholesale loans | 2.8 | 2.5 | 2.6 | 2.8 | 3.0 | 3.2
Stage 3 Model exposure (£m)d |  |  |  |  |  |
Home loans | 583 | 583 | 583 | 583 | 583 | 583
Credit cards, unsecured loans and other retail lending | 1,194 | 1,194 | 1,194 | 1,194 | 1,194 | 1,194
Wholesale loans | — | — | — | — | — | —
Stage 3 Model ECL (£m) |  |  |  |  |  |
Home loans | 319 | 308 | 313 | 317 | 328 | 337
Credit cards, unsecured loans and other retail lending | 895 | 877 | 886 | 895 | 907 | 917
Wholesale loans e | — | — | — | — | — | —
Stage 3 Coverage (%) |  |  |  |  |  |
Home loans | 54.7 | 52.8 | 53.7 | 54.4 | 56.3 | 57.8
Credit cards, unsecured loans and other retail lending | 75.0 | 73.5 | 74.2 | 75.0 | 76.0 | 76.8
Wholesale loans e | — | — | — | — | — | —
Total Model ECL (£m) |  |  |  |  |  |
Home loans | 346 | 325 | 334 | 342 | 365 | 386
Credit cards, unsecured loans and other retail lending | 2,504 | 2,329 | 2,418 | 2,506 | 2,621 | 2,771
Wholesale loans e | 808 | 580 | 654 | 755 | 1,019 | 1,471
Total ECL | 3,658 | 3,234 | 3,406 | 3,603 | 4,005 | 4,628

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 95

Reconciliation to total ECL | £m
Total weighted model ECL | 3,658
ECL from individually assessed impairments e | 316
ECL from non-modelled and others | 400
ECL from post model management adjustments f | (22)
Of which: ECL from economic uncertainty adjustments | 97
Total ECL | 4,352

Note
a Model exposures are allocated to a stage based on an individual scenario rather than a probability-weighted approach, as required for Barclays reported impairment
allowances. As a result, it is not possible to back solve the final reported weighted ECL from individual scenarios given balances may be assigned to a different stage
dependent on the scenario.
b For Credit cards, unsecured loans and other retail lending, the model exposure movement between stages 1 and 2 across scenarios differs due to additional impacts from
the undrawn exposure.
c For Credit cards, unsecured loans and other retail lending, the dispersion of results around Baseline has narrowed following model enhancements made during the year.
d Model exposures allocated to Stage 3 does not change in any of the scenarios as the transition criteria relies only on an observable evidence of default as at 31st December
2022 and not on macroeconomic scenario.
e Material wholesale loan defaults are individually assessed across different recovery strategies. As a result, E CL of £316m is r eported as an individually assessed impairment
in the reconciliation table.
f Post Model Adjustments include negative adjustments reflecting operational post model adjustments.
The use of five scenarios with associated weightings results in a total weighted ECL uplift from the Baseline ECL of 1.5%.
Home loans: Total weighted ECL of £346m represents a 1.2% increase over the Baseline ECL (£342m) reflecting the nature of the Italy portfolio.
Credit cards, unsecured loans and other retail lending: Total weighted ECL of £2,504m is aligned to the Baseline ECL (£2,506m). The impact of the
deteriorated Baseline scenario relative to the severity of the Downside scenarios is greater than the impact of the higher weights applied to the
Downside scenarios when compared to 2021. This results in a convergence between Baseline and Weighted ECL in 2022. Total ECL increases to
£2,771m under the Downside 2 scenario, mainly driven by significant increase in US unemployment rate to 6.0% in 2023.
Wholesale loans: Total weighted ECL of £808m represents a 7.0% increase over the Baseline ECL (£755m) reflecting the range of economic scenarios
used, with exposures in the Investment Bank being particularly sensitive to the Downside 2 scenario.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 96

| Scenarios
As at 31 December 2021 | Weighted a | Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2
Stage 1 Model exposure (£m) |  |  |  |  |  |
Home loans | 3,905 | 3,915 | 3,911 | 3,906 | 3,885 | 3,868
Credit cards, unsecured loans and other retail lending b, c | 30,282 | 27,945 | 29,092 | 30,271 | 32,013 | 30,280
Wholesale loans | 142,804 | 145,097 | 144,688 | 143,967 | 140,402 | 135,764
Stage 1 Model ECL (£m) |  |  |  |  |  |
Home loans | 2 | 2 | 2 | 2 | 3 | 3
Credit cards, unsecured loans and other retail lending | 221 | 157 | 164 | 173 | 254 | 332
Wholesale loans | 219 | 189 | 200 | 216 | 250 | 282
Stage 1 Coverage (%) |  |  |  |  |  |
Home loans | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1
Credit cards, unsecured loans and other retail lending | 0.7 | 0.6 | 0.6 | 0.6 | 0.8 | 1.1
Wholesale loans | 0.2 | 0.1 | 0.1 | 0.2 | 0.2 | 0.2
Stage 2 Model exposure (£m) |  |  |  |  |  |
Home loans | 228 | 219 | 222 | 227 | 249 | 266
Credit cards, unsecured loans and other retail lending b, c | 2,291 | 1,771 | 1,919 | 2,082 | 4,586 | 11,493
Wholesale loans | 29,124 | 26,831 | 27,240 | 27,961 | 31,525 | 36,163
Stage 2 Model ECL (£m) |  |  |  |  |  |
Home loans | 12 | 10 | 10 | 11 | 18 | 24
Credit cards, unsecured loans and other retail lending | 365 | 264 | 295 | 333 | 599 | 2,278
Wholesale loans | 506 | 395 | 420 | 462 | 712 | 1,229
Stage 2 Coverage (%) |  |  |  |  |  |
Home loans | 5.3 | 4.6 | 4.5 | 4.8 | 7.2 | 9.0
Credit cards, unsecured loans and other retail lending | 15.9 | 14.9 | 15.4 | 16.0 | 13.1 | 19.8
Wholesale loans | 1.7 | 1.5 | 1.5 | 1.7 | 2.3 | 3.4
Stage 3 Model exposure (£m)d |  |  |  |  |  |
Home loans | 610 | 610 | 610 | 610 | 610 | 610
Credit cards, unsecured loans and other retail lending | 1,028 | 1,028 | 1,028 | 1,028 | 1,028 | 1,028
Wholesale loans | 0 | 0 | 0 | 0 | 0 | 0
Stage 3 Model ECL (£m) |  |  |  |  |  |
Home loans | 297 | 290 | 292 | 296 | 310 | 320
Credit cards, unsecured loans and other retail lending | 696 | 685 | 690 | 696 | 710 | 722
Wholesale loans e | 0 | 0 | 0 | 0 | 0 | 0
Stage 3 Coverage (%) |  |  |  |  |  |
Home loans | 48.7 | 47.5 | 47.9 | 48.5 | 50.8 | 52.5
Credit cards, unsecured loans and other retail lending | 67.7 | 66.6 | 67.1 | 67.7 | 69.1 | 70.2
Wholesale loans e | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0
Total Model ECL (£m) |  |  |  |  |  |
Home loans | 311 | 302 | 304 | 309 | 331 | 347
Credit cards, unsecured loans and other retail lending | 1,282 | 1,106 | 1,149 | 1,202 | 1,563 | 3,332
Wholesale loans e | 725 | 584 | 620 | 678 | 962 | 1,511
Total ECL | 2,318 | 1,992 | 2,073 | 2,189 | 2,856 | 5,190

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 97

Reconciliation to total ECL | £m
Total weighted model ECL | 2,318
ECL from individually assessed impairments e | 463
ECL from non-modelled and others | 75
ECL from post model management adjustments | 1,142
Of which: ECL from economic uncertainty adjustments | 1,049
Total ECL | 3,998

Notes
a Model exposures are allocated to a stage based on an individual scenario rather than a probability-weighted approach, as required for Barclays reported impairment
allowances. As a result, it is not possible to back solve the final reported weighted ECL from individual scenarios given balances may be assigned to a different stage
dependent on the scenario.
b For Credit cards, unsecured loans and other retail lending, the model exposure movement between stages 1 and 2 across scenarios differs due to additional impacts from
the undrawn exposure.
c In 2021, Loans & Advances at amortised cost were used as model exposure for the International Consumer Bank within this disclosure. The process was revised in 2022 to
incorporate Exposure at Default (EAD) with no impact to ECL. This has been represented in prior year comparatives.
d Model exposures allocated to Stage 3 does not change in any of the scenarios as the transition criteria relies only on an observable evidence of default as at 31st December
2021 and not on macroeconomic scenario.
e Material wholesale loan defaults are individually assessed across different recovery strategies. As a result, ECL of £463m is re ported as an individually assessed impairment
in the reconciliation table.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 98

Analysis of the concentration of credit risk
A concentration of credit risk exists when a number of counterparties are located in a common geographical region or are engaged in similar activities
and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic
or other conditions. Barclays Bank Group implements limits on concentrations in order to mitigate the risk. The analyses of credit risk concentrations
presented below are based on the location of the counterparty or customer or the industry in which they are engaged.
Geographic concentrations
Exposure is concentrated in the Americas 45% (2021: 44%), in the UK 26% (2021: 25%) and Europe 22% (2021: 24%).

Credit risk concentrations by geography (audited)
Barclays Bank Group | United Kingdom | Americas | Europe | Asia | Africa and Middle East | Total
As at 31 December 2022 | £m | £m | £m | £m | £m | £m
On-balance sheet: |  |  |  |  |  |
Cash and balances at central banks | 74,792 | 49,830 | 73,677 | 3,552 | 291 | 202,142
Cash collateral and settlement balances | 37,994 | 36,503 | 21,962 | 10,345 | 1,058 | 107,862
Loans and advances at amortised cost | 67,271 | 72,633 | 31,532 | 5,958 | 5,113 | 182,507
Reverse repurchase agreements and other similar secured lending | — | 127 | 329 | 262 | 7 | 725
Trading portfolio assets | 9,341 | 35,481 | 16,925 | 5,300 | 1,581 | 68,628
Financial assets at fair value through the income statement | 28,769 | 106,715 | 41,355 | 20,535 | 8,820 | 206,194
Derivative financial instruments | 99,695 | 101,402 | 77,106 | 22,299 | 2,474 | 302,976
Financial assets at fair value through other comprehensive income | 5,228 | 17,950 | 15,929 | 5,718 | 258 | 45,083
Other assets | 1,367 | 118 | 13 | 3 | 2 | 1,503
Total on-balance sheet | 324,457 | 420,759 | 278,828 | 73,972 | 19,604 | 1,117,620
Off-balance sheet: |  |  |  |  |  |
Contingent liabilities | 7,530 | 11,297 | 4,811 | 1,760 | 402 | 25,800
Loan commitments | 45,027 | 240,343 | 42,533 | 4,321 | 2,753 | 334,977
Total off-balance sheet | 52,557 | 251,640 | 47,344 | 6,081 | 3,155 | 360,777
Total | 377,014 | 672,399 | 326,172 | 80,053 | 22,759 | 1,478,397
As at 31 December 2021 |  |  |  |  |  |
On-balance sheet: |  |  |  |  |  |
Cash and balances at central banks | 45,470 | 38,735 | 76,846 | 7,789 | 245 | 169,085
Cash collateral and settlement balances | 30,107 | 28,272 | 21,754 | 7,210 | 742 | 88,085
Loans and advances at amortised cost | 62,269 | 50,718 | 23,576 | 4,775 | 3,921 | 145,259
Reverse repurchase agreements and other similar secured lending | 9 | 123 | 351 | 2,508 | 186 | 3,177
Trading portfolio assets | 12,852 | 29,478 | 15,062 | 4,943 | 890 | 63,225
Financial assets at fair value through the income statement | 26,096 | 95,456 | 30,080 | 21,798 | 9,998 | 183,428
Derivative financial instruments | 78,449 | 91,992 | 75,245 | 14,709 | 1,896 | 262,291
Financial assets at fair value through other comprehensive income | 4,525 | 20,750 | 15,603 | 4,666 | 363 | 45,907
Other assets | 747 | 224 | 17 | 6 | — | 994
Total on-balance sheet | 260,524 | 355,748 | 258,534 | 68,404 | 18,241 | 961,451
Off-balance sheet: |  |  |  |  |  |
Contingent liabilities | 7,926 | 10,329 | 3,957 | 1,131 | 403 | 23,746
Loan commitments | 46,616 | 192,270 | 38,567 | 5,079 | 1,919 | 284,451
Total off-balance sheet | 54,542 | 202,599 | 42,524 | 6,210 | 2,322 | 308,197
Total | 315,066 | 558,347 | 301,058 | 74,614 | 20,563 | 1,269,648

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 99

Credit risk concentrations by geography (audited)
Barclays Bank PLC | United Kingdom | Americas | Europe | Asia | Africa and Middle East | Total
As at 31 December 2022 | £m | £m | £m | £m | £m | £m
On-balance sheet: |  |  |  |  |  |
Cash and balances at central banks | 74,793 | 45,862 | 46,340 | 3,021 | 291 | 170,307
Cash collateral and settlement balances | 33,456 | 26,188 | 13,444 | 8,419 | 864 | 82,371
Loans and advances at amortised cost | 146,876 | 42,880 | 24,257 | 8,150 | 3,620 | 225,783
Reverse repurchase agreements and other similar secured lending | 196 | 2,823 | 1,608 | 1,274 | 7 | 5,908
Trading portfolio assets | 8,914 | 20,209 | 10,489 | 3,260 | 1,509 | 44,381
Financial assets at fair value through the income statement | 82,347 | 89,815 | 44,060 | 22,292 | 8,652 | 247,166
Derivative financial instruments | 111,149 | 79,178 | 43,917 | 21,991 | 2,473 | 258,708
Financial assets at fair value through other comprehensive income | 5,228 | 17,868 | 14,228 | 5,505 | 257 | 43,086
Other assets | 1,511 | 65 | 115 | 34 | — | 1,725
Total on-balance sheet | 464,470 | 324,888 | 198,458 | 73,946 | 17,673 | 1,079,435
Off-balance sheet: |  |  |  |  |  |
Contingent liabilities | 35,878 | 13,230 | 11,009 | 1,713 | 373 | 62,203
Loan commitments | 42,769 | 141,333 | 16,835 | 4,244 | 2,155 | 207,336
Total off-balance sheet | 78,647 | 154,563 | 27,844 | 5,957 | 2,528 | 269,539
Total | 543,117 | 479,451 | 226,302 | 79,903 | 20,201 | 1,348,974
As at 31 December 2021 |  |  |  |  |  |
On-balance sheet: |  |  |  |  |  |
Cash and balances at central banks | 45,470 | 35,829 | 56,056 | 7,364 | 245 | 144,964
Cash collateral and settlement balances | 40,278 | 20,257 | 10,270 | 4,121 | 645 | 75,571
Loans and advances at amortised cost | 144,342 | 30,232 | 16,760 | 5,653 | 2,795 | 199,782
Reverse repurchase agreements and other similar secured lending | 11 | 491 | 922 | 3,372 | 186 | 4,982
Trading portfolio assets | 12,672 | 20,092 | 9,010 | 2,879 | 853 | 45,506
Financial assets at fair value through the income statement | 83,822 | 79,636 | 34,951 | 28,245 | 9,785 | 236,439
Derivative financial instruments | 88,631 | 72,823 | 56,779 | 14,283 | 1,893 | 234,409
Financial assets at fair value through other comprehensive income | 4,524 | 20,524 | 14,123 | 4,629 | 363 | 44,163
Other assets | 970 | 25 | 12 | 10 | 1 | 1,018
Total on-balance sheet | 420,720 | 279,909 | 198,883 | 70,556 | 16,766 | 986,834
Off-balance sheet: |  |  |  |  |  |
Contingent Liabilities | 32,496 | 12,491 | 9,310 | 1,085 | 392 | 55,774
Loan Commitments | 44,850 | 126,170 | 17,558 | 5,001 | 1,524 | 195,103
Total off-balance sheet | 77,346 | 138,661 | 26,868 | 6,086 | 1,916 | 250,877
Total | 498,066 | 418,570 | 225,751 | 76,642 | 18,682 | 1,237,711

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 100

Industry concentrations
Total exposure concentrated in banks and other financial institutions is 48% (2021: 48%), predominantly within derivative financial instruments and
financial assets. The proportion of the overall exposure concentrated in governments and central banks is 22% (2021: 22%). Further details on material
and emerging risks can be found on pages 43 to 55.

Credit risk concentrations by industry (audited)
Barclays Bank Group | Banks | Other financial insti- tutions | Manu- facturing | Const- ruction and property | Govern- ment and central bank | Energy and water | Wholesale and retail distribution and leisure | Business and other services | Home loans | Cards, unsecured loans and other personal lending | Other | Total
As at 31 December 2022 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
On-balance sheet: |  |  |  |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 675 | — | — | — | 201,467 | — | — | — | — | — | — | 202,142
Cash collateral and settlement balances | 14,965 | 78,705 | 229 | 67 | 12,739 | 269 | 136 | 166 | — | — | 586 | 107,862
Loans and advances at amortised cost | 8,753 | 49,102 | 7,346 | 16,460 | 17,828 | 5,541 | 8,164 | 16,810 | 11,405 | 34,483 | 6,615 | 182,507
Reverse repurchase agreements and other similar secured lending | 583 | 92 | — | — | 50 | — | — | — | — | — | — | 725
Trading portfolio assets | 4,638 | 9,314 | 5,007 | 1,405 | 36,335 | 2,330 | 789 | 2,782 | — | — | 6,028 | 68,628
Financial assets at fair value through the income statement | 30,982 | 149,917 | 705 | 1,707 | 16,598 | 184 | 479 | 3,897 | 1,255 | — | 470 | 206,194
Derivative financial instruments | 128,161 | 152,840 | 4,095 | 597 | 3,027 | 4,778 | 1,541 | 3,175 | — | — | 4,762 | 302,976
Financial assets at fair value through other comprehensive income | 9,293 | 2,444 | — | 592 | 32,372 | — | — | 112 | — | — | 270 | 45,083
Other assets | 345 | 1,020 | 9 | — | 1 | 1 | — | 118 | — | — | 9 | 1,503
Total on-balance sheet | 198,395 | 443,434 | 17,391 | 20,828 | 320,417 | 13,103 | 11,109 | 27,060 | 12,660 | 34,483 | 18,740 | 1,117,620
Off-balance sheet: |  |  |  |  |  |  |  |  |  |  |  |
Contingent liabilities | 1,108 | 8,075 | 3,695 | 1,430 | 1,008 | 3,891 | 1,138 | 3,177 | — | 143 | 2,135 | 25,800
Loan commitments | 1,779 | 63,801 | 44,808 | 11,887 | 1,501 | 29,594 | 16,308 | 24,672 | 120 | 114,820 | 25,687 | 334,977
Total off-balance sheet | 2,887 | 71,876 | 48,503 | 13,317 | 2,509 | 33,485 | 17,446 | 27,849 | 120 | 114,963 | 27,822 | 360,777
Total | 201,282 | 515,310 | 65,894 | 34,145 | 322,926 | 46,588 | 28,555 | 54,909 | 12,780 | 149,446 | 46,562 | 1,478,397
As at 31 December 2021 |  |  |  |  |  |  |  |  |  |  |  |
On-balance sheet: |  |  |  |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 28 | — | — | — | 169,057 | — | — | — | — | — | — | 169,085
Cash collateral and settlement balances | 14,605 | 61,252 | 320 | 79 | 10,684 | 390 | 60 | 354 | — | — | 341 | 88,085
Loans and advances at amortised cost | 7,955 | 33,563 | 5,821 | 13,714 | 15,462 | 4,244 | 7,266 | 13,881 | 10,985 | 26,477 | 5,891 | 145,259
Reverse repurchase agreements and other similar secured lending | 595 | 2,049 | — | — | 533 | — | — | — | — | — | — | 3,177
Trading portfolio assets | 2,560 | 8,818 | 4,881 | 1,048 | 32,483 | 4,043 | 1,734 | 4,716 | — | — | 2,942 | 63,225
Financial assets at fair value through the income statement | 26,239 | 131,232 | 763 | 5,444 | 13,935 | 76 | 181 | 3,547 | 1,595 | — | 416 | 183,428
Derivative financial instruments | 120,607 | 117,050 | 4,168 | 1,898 | 7,233 | 3,544 | 1,172 | 2,825 | — | — | 3,794 | 262,291
Financial assets at fair value through other comprehensive income | 9,942 | 2,972 | — | 514 | 31,975 | — | — | 444 | — | — | 60 | 45,907
Other assets | 401 | 474 | 1 | — | 8 | — | — | 105 | — | — | 5 | 994
Total on-balance sheet | 182,932 | 357,410 | 15,954 | 22,697 | 281,370 | 12,297 | 10,413 | 25,872 | 12,580 | 26,477 | 13,449 | 961,451
Off-balance sheet: |  |  |  |  |  |  |  |  |  |  |  |
Contingent liabilities | 1,005 | 7,772 | 3,080 | 1,342 | 1,092 | 3,284 | 1,182 | 3,118 | — | 73 | 1,798 | 23,746
Loan commitments | 1,340 | 53,212 | 42,434 | 15,752 | 1,360 | 26,447 | 15,811 | 25,201 | 341 | 76,759 | 25,794 | 284,451
Total off-balance sheet | 2,345 | 60,984 | 45,514 | 17,094 | 2,452 | 29,731 | 16,993 | 28,319 | 341 | 76,832 | 27,592 | 308,197
Total | 185,277 | 418,394 | 61,468 | 39,791 | 283,822 | 42,028 | 27,406 | 54,191 | 12,921 | 103,309 | 41,041 | 1,269,648

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 101

Credit risk concentrations by industry (audited)
Barclays Bank PLC | Banks | Other financial insti- tutions | Manu- facturing | Const- ruction and property | Govern- ment and central bank | Energy and water | Wholesale and retail distribution and leisure | Business and other services | Home loans | Cards, unsecured loans and other personal lending | Other | Total
As at 31 December 2022 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
On-balance sheet: |  |  |  |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 646 | — | — | — | 169,661 | — | — | — | — | — | — | 170,307
Cash collateral and settlement balances | 12,913 | 57,722 | 161 | 49 | 10,955 | 158 | 126 | 102 | — | — | 185 | 82,371
Loans and advances at amortised cost | 15,169 | 126,991 | 6,577 | 14,662 | 17,438 | 5,205 | 7,578 | 14,741 | 6,512 | 5,048 | 5,862 | 225,783
Reverse repurchase agreements and other similar secured lending | 1,736 | 4,122 | — | — | 50 | — | — | — | — | — | — | 5,908
Trading portfolio assets | 2,495 | 3,872 | 4,748 | 1,297 | 21,005 | 2,087 | 713 | 2,386 | — | — | 5,778 | 44,381
Financial assets at fair value through the income statement | 31,937 | 194,349 | 665 | 1,566 | 13,769 | 64 | 479 | 2,910 | 957 | — | 470 | 247,166
Derivative financial instruments | 116,901 | 124,050 | 3,195 | 545 | 2,078 | 3,243 | 1,469 | 3,046 | — | — | 4,181 | 258,708
Financial assets at fair value through other comprehensive income | 7,635 | 2,444 | — | 592 | 32,033 | — | — | 112 | — | — | 270 | 43,086
Other assets | 441 | 1,218 | — | — | — | — | — | 66 | — | — | — | 1,725
Total on-balance sheet | 189,873 | 514,768 | 15,346 | 18,711 | 266,989 | 10,757 | 10,365 | 23,363 | 7,469 | 5,048 | 16,746 | 1,079,435
Off-balance sheet: |  |  |  |  |  |  |  |  |  |  |  |
Contingent Liabilities | 10,901 | 37,937 | 2,149 | 1,169 | 1,008 | 3,275 | 1,040 | 2,735 | — | 115 | 1,874 | 62,203
Loan commitments | 1,334 | 70,710 | 37,585 | 10,891 | 1,501 | 23,059 | 15,159 | 22,563 | 86 | 1,736 | 22,712 | 207,336
Total off-balance sheet | 12,235 | 108,647 | 39,734 | 12,060 | 2,509 | 26,334 | 16,199 | 25,298 | 86 | 1,851 | 24,586 | 269,539
Total | 202,108 | 623,415 | 55,080 | 30,771 | 269,498 | 37,091 | 26,564 | 48,661 | 7,555 | 6,899 | 41,332 | 1,348,974
As at 31 December 2021 |  |  |  |  |  |  |  |  |  |  |  |
On-balance sheet: |  |  |  |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 2 | — | — | — | 144,962 | — | — | — | — | — | — | 144,964
Cash collateral and settlement balances | 11,687 | 53,084 | 273 | 74 | 9,873 | 183 | 46 | 135 | — | — | 216 | 75,571
Loans and advances at amortised cost | 13,186 | 114,520 | 5,410 | 12,284 | 15,090 | 3,419 | 6,781 | 12,438 | 5,979 | 5,345 | 5,330 | 199,782
Reverse repurchase agreements and other similar secured lending | 1,073 | 3,376 | — | — | 533 | — | — | — | — | — | — | 4,982
Trading portfolio assets | 1,691 | 4,081 | 4,344 | 941 | 22,429 | 3,968 | 1,625 | 4,010 | — | — | 2,417 | 45,506
Financial assets at fair value through the income statement | 29,023 | 184,547 | 610 | 5,433 | 12,300 | 16 | 149 | 2,691 | 1,303 | — | 367 | 236,439
Derivative financial instruments | 115,445 | 99,649 | 3,616 | 1,759 | 4,232 | 2,581 | 1,106 | 2,700 | — | — | 3,321 | 234,409
Financial assets at fair value through other comprehensive income | 8,499 | 2,972 | — | 514 | 31,674 | — | — | 443 | — | — | 61 | 44,163
Other assets | 412 | 547 | — | — | — | — | — | 59 | — | — | — | 1,018
Total on-balance sheet | 181,018 | 462,776 | 14,253 | 21,005 | 241,093 | 10,167 | 9,707 | 22,476 | 7,282 | 5,345 | 11,712 | 986,834
Off-balance sheet: |  |  |  |  |  |  |  |  |  |  |  |
Contingent Liabilities | 9,282 | 33,733 | 2,096 | 1,076 | 1,092 | 2,960 | 1,043 | 2,892 | — | 47 | 1,553 | 55,774
Loan commitments | 1,216 | 56,124 | 36,469 | 14,708 | 1,360 | 22,303 | 14,806 | 23,477 | 62 | 1,592 | 22,986 | 195,103
Total off-balance sheet | 10,498 | 89,857 | 38,565 | 15,784 | 2,452 | 25,263 | 15,849 | 26,369 | 62 | 1,639 | 24,539 | 250,877
Total | 191,516 | 552,633 | 52,818 | 36,789 | 243,545 | 35,430 | 25,556 | 48,845 | 7,344 | 6,984 | 36,251 | 1,237,711

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 102

Approach to management and representation of credit quality
Asset credit quality
The credit quality distribution is based on the IFRS 9 12 month probability of default (PD) at the reporting date to ensure comparability with other ECL
disclosures in Expected Credit Losses section on pages 75 to 88.
The Barclays Bank Group uses the following internal measures to determine credit quality for loans:

PD Range % | Internal DG Band | Default Probability | Credit Quality description | Moody’s | Standard and Poor’s
>Min | Mid | <=Max
0.00 to < 0.15 | 1 | 0.00% | 0.01% | 0.02% | Strong | Aaa, Aa1, Aa2 | AAA, AA+, AA
2 | 0.02% | 0.03% | 0.03% | Aa3 | AA-
3 | 0.03% | 0.04% | 0.05% | A1 | A+
4 | 0.05% | 0.08% | 0.10% | A2, A3 | A, A-
5 | 0.10% | 0.13% | 0.15% | Baa1 | BBB+
0.15 to < 0.25 | 6 | 0.15% | 0.18% | 0.20% | Strong | Baa2 | BBB
7 | 0.20% | 0.23% | 0.25% | Baa2 | BBB
0.25 to < 0.50 | 8 | 0.25% | 0.28% | 0.30% | Strong | Baa3 | BBB-
9 | 0.30% | 0.35% | 0.40% | Baa3 | BBB-
10 | 0.40% | 0.45% | 0.50% | Ba1 | BB+
0.50 to < 0.75 | 11 | 0.50% | 0.55% | 0.60% | Strong | Ba1 | BB+
12 | 0.60% | 0.68% | 0.75% | Satisfactory | Ba2 | BB
0.75 to < 2.50 | 12 | 0.75% | 0.98% | 1.20% | Satisfactory | Ba2 | BB
13 | 1.20% | 1.38% | 1.55% | Ba3 | BB-
14 | 1.55% | 1.85% | 2.15% | Ba3 | B+
15 | 2.15% | 2.33% | 2.50% | B1 | B+
2.50 to < 10.00 | 15 | 2.50% | 2.78% | 3.05% | Satisfactory | B1 | B+
16 | 3.05% | 3.75% | 4.45% | B2 | B+
17 | 4.45% | 5.40% | 6.35% | B3, Caa1 | B
18 | 6.35% | 7.50% | 8.65% | B3, Caa1 | B-
19 | 8.65% | 10.00% | 10.00% | B3, Caa1 | CCC+
10.00 to < 100.00 | 19 | 10.00% | 10.68% | 11.35% | Higher risk | Caa2 | CCC+
20 | 11.35% | 15.00% | 18.65% | Caa2 | CCC
21 | 18.65% | 30.00% | 99.99% | Caa3, Ca, C | CCC-, CC+ ,CC, C
100.00 (Default) | 22 | 100% |  |  |  | D | D

For retail clients, a range of analytical tools is used to derive the probability of default of clients at inception and on an ongoing basis.
These credit quality descriptions can be summarised as follows:
Strong: there is a very high likelihood of the asset being recovered in full.
Satisfactory: while there is a high likelihood that the asset will be recovered and therefore, of no cause for concern to the Barclays Bank Group, the asset
may not be collateralised, or may relate to unsecured retail facilities. At the lower end of this grade there are customers that are being more carefully
monitored, for example, corporate customers which are indicating some evidence of deterioration, mortgages with a high loan to value, and unsecured
retail loans operating outside normal product guidelines.
Higher risk: there is concern over the obligor’s ability to make payments when due. However, these have not yet converted to actual delinquency. There
may also be doubts over the value of collateral or security provided. However, the borrower or counterparty is continuing to make payments when due
and is expected to settle all outstanding amounts of principal and interest.
Debt securities
For assets held at fair value, the carrying value on the balance sheet will include, among other things, the credit risk of the issuer. Most listed and some
unlisted securities are rated by external rating agencies. The Barclays Bank Group mainly uses external credit ratings provided by Standard & Poor’s,
Fitch or Moody’s. Where such ratings are not available or are not current, the Barclays Bank Group will use its own internal ratings for the securities.
Balance sheet credit quality
The following tables present the credit quality of Barclays Bank Group assets exposed to credit risk.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 103

Overview
As at 31 December 2022, the ratio of the Barclays Bank Group’s on-balance sheet assets classified as strong (0.0 < 0.60%) remained stable at 86%
(2021: 86%) of total assets exposed to credit risk.

Balance sheet credit quality (audited)
Barclays Bank Group | PD Range | 0.0 to <0.60% | 0.60 to <11.35% | 11.35% to 100% | Total | 0.0 to <0.60% | 0.60 to <11.35% | 11.35% to 100% | Total
As at 31 December 2022 |  | £m | £m | £m | £m | % | % | % | %
Cash and balances at central banks |  | 202,142 |  |  | 202,142 | 100 | — | — | 100
Cash collateral and settlement balances |  | 96,688 | 10,886 | 288 | 107,862 | 90 | 10 | — | 100
Loans and advances at amortised cost |  |  |  |  |  |  |  |  |
Home loans |  | 10,096 | 636 | 673 | 11,405 | 88 | 6 | 6 | 100
Credit cards, unsecured loans and other retail lending |  | 15,376 | 17,140 | 1,646 | 34,162 | 45 | 50 | 5 | 100
Wholesale loans |  | 108,267 | 26,397 | 2,276 | 136,940 | 79 | 19 | 2 | 100
Total loans and advances at amortised cost |  | 133,739 | 44,173 | 4,595 | 182,507 | 73 | 24 | 3 | 100
Reverse repurchase agreements and other similar secured lending |  | 725 |  |  | 725 | 100 | — | — | 100
Trading portfolio assets: |  |  |  |  |  |  |  |  |
Debt securities |  | 50,208 | 4,891 | 331 | 55,430 | 90 | 9 | 1 | 100
Traded loans |  | 3,214 | 8,273 | 1,711 | 13,198 | 24 | 63 | 13 | 100
Total trading portfolio assets |  | 53,422 | 13,164 | 2,042 | 68,628 | 79 | 19 | 3 | 100
Financial assets at fair value through the income statement: |  |  |  |  |  |  |  |  |
Loans and advances |  | 13,508 | 24,573 | 109 | 38,190 | 36 | 64 | — | 100
Debt securities |  | 2,097 | 1,055 | 65 | 3,217 | 65 | 33 | 2 | 100
Reverse repurchase agreements |  | 124,811 | 38,339 | 1,548 | 164,698 | 76 | 23 | 1 | 100
Other financial assets |  | 68 | 21 | — | 89 | 76 | 24 | — | 100
Total financial assets at fair value through the income statement |  | 140,484 | 63,988 | 1,722 | 206,194 | 68 | 31 | 1 | 100
Derivative financial instruments |  | 285,087 | 17,606 | 283 | 302,976 | 94 | 6 | — | 100
Financial assets at fair value through other comprehensive income |  | 45,081 | 3 |  | 45,084 | 100 | — | — | 100
Other assets |  | 1,455 | 47 |  | 1,502 | 97 | 3 | — | 100
Total on-balance sheet |  | 958,823 | 149,867 | 8,930 | 1,117,620 | 86 | 13 | 1 | 100
As at 31 December 2021 |  |  |  |  |  |  |  |  |
Cash and balances at central banks |  | 169,085 | — | — | 169,085 | 100 | — | — | 100
Cash collateral and settlement balances |  | 78,881 | 9,194 | 10 | 88,085 | 90 | 10 | — | 100
Loans and advances at amortised cost |  |  |  |  |  |  |  |  |
Home loans |  | 9,519 | 809 | 657 | 10,985 | 87 | 7 | 6 | 100
Credit cards, unsecured loans and other retail lending |  | 18,460 | 6,178 | 1,322 | 25,960 | 71 | 24 | 5 | 100
Wholesale loans |  | 78,239 | 26,992 | 3,083 | 108,314 | 72 | 25 | 3 | 100
Total loans and advances at amortised cost |  | 106,218 | 33,979 | 5,062 | 145,259 | 73 | 23 | 4 | 100
Reverse repurchase agreements and other similar secured lending |  | 3,091 | 86 | — | 3,177 | 97 | 3 | — | 100
Trading portfolio assets: |  |  |  |  |  |  |  |  |
Debt securities |  | 44,488 | 5,735 | 477 | 50,700 | 88 | 11 | 1 | 100
Traded loans |  | 2,172 | 10,144 | 209 | 12,525 | 17 | 81 | 2 | 100
Total trading portfolio assets |  | 46,660 | 15,879 | 686 | 63,225 | 74 | 25 | 1 | 100
Financial assets at fair value through the income statement: |  |  |  |  |  |  |  |  |
Loans and advances |  | 16,977 | 18,896 | 28 | 35,901 | 47 | 53 | — | 100
Debt securities |  | 1,346 | 858 | 52 | 2,256 | 60 | 38 | 2 | 100
Reverse repurchase agreements |  | 108,609 | 36,047 | 530 | 145,186 | 75 | 25 | — | 100
Other financial assets |  | 67 | 18 | — | 85 | 79 | 21 | — | 100
Total financial assets at fair value through the income statement |  | 126,999 | 55,819 | 610 | 183,428 | 70 | 30 | — | 100
Derivative financial instruments |  | 246,347 | 15,678 | 266 | 262,291 | 94 | 6 | — | 100
Financial assets at fair value through other comprehensive income |  | 45,901 | 6 | — | 45,907 | 100 | — | — | 100
Other assets |  | 948 | 46 | — | 994 | 95 | 5 | — | 100
Total on-balance sheet |  | 824,130 | 130,687 | 6,634 | 961,451 | 86 | 13 | 1 | 100

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 104

Balance sheet credit quality (audited) |  |  |  |  |
Barclays Bank PLC | PD Range | 0.0 to <0.60% | 0.60 to <11.35% | 11.35% to 100% | Total | 0.0 to <0.60% | 0.60 to <11.35% | 11.35% to 100% | Total
As at 31 December 2022 |  | £m | £m | £m | £m | % | % | % | %
Cash and balances at central banks |  | 170,307 |  |  | 170,307 | 100 | — | — | 100
Cash collateral and settlement balances |  | 76,648 | 5,582 | 141 | 82,371 | 93 | 7 | — | 100
Loans and advances at amortised cost |  |  |  |  |  |  |  |  |
Home loans |  | 6,004 | 92 | 446 | 6,542 | 92 | 1 | 7 | 100
Credit cards, unsecured loans and other retail lending |  | 3,534 | 920 | 261 | 4,715 | 74 | 20 | 6 | 100
Wholesale loans |  | 188,224 | 24,223 | 2,079 | 214,526 | 88 | 11 | 1 | 100
Total loans and advances at amortised cost |  | 197,762 | 25,235 | 2,786 | 225,783 | 88 | 11 | 1 | 100
Reverse repurchase agreements and other similar secured lending |  | 5,908 | — |  | 5,908 | 100 | — | — | 100
Trading portfolio assets: |  |  |  |  |  |  |  |  |
Debt securities |  | 26,440 | 4,639 | 331 | 31,410 | 84 | 15 | 1 | 100
Traded loans |  | 3,050 | 8,265 | 1,656 | 12,971 | 24 | 63 | 13 | 100
Total trading portfolio assets |  | 29,490 | 12,904 | 1,987 | 44,381 | 67 | 29 | 4 | 100
Financial assets at fair value through the income statement: |  |  |  |  |  |  |  |  |
Loans and advances |  | 33,907 | 11,841 | 82 | 45,830 | 74 | 26 | — | 100
Debt securities |  | 2,935 | 889 | 45 | 3,869 | 76 | 23 | 1 | 100
Reverse repurchase agreements |  | 164,833 | 31,185 | 1,422 | 197,440 | 83 | 16 | 1 | 100
Other financial assets |  | 27 |  |  | 27 | 100 | — | — | 100
Total financial assets at fair value through the income statement |  | 201,702 | 43,915 | 1,549 | 247,166 | 81 | 18 | 1 | 100
Derivative financial instruments |  | 242,838 | 15,613 | 257 | 258,708 | 94 | 6 | — | 100
Financial assets at fair value through other comprehensive income |  | 43,083 | 3 |  | 43,086 | 100 | — | — | 100
Other assets |  | 1,701 | 24 |  | 1,725 | 99 | 1 | — | 100
Total on-balance sheet |  | 969,439 | 103,276 | 6,720 | 1,079,435 | 89 | 10 | 1 | 100
As at 31 December 2021 |  |  |  |  |  |  |  |  |
Cash and balances at central banks |  | 144,964 | — | — | 144,964 | 100 | 0 | 0 | 100
Cash collateral and settlement balances |  | 70,264 | 5,301 | 6 | 75,571 | 93 | 7 | 0 | 100
Loans and advances at amortised cost |  |  |  |  |  |  |  |  |
Home loans |  | 5,343 | 219 | 420 | 5,982 | 89 | 4 | 7 | 100
Credit cards, unsecured loans and other retail lending |  | 3,997 | 756 | 155 | 4,908 | 82 | 15 | 3 | 100
Wholesale loans |  | 160,262 | 25,717 | 2,913 | 188,892 | 84 | 14 | 2 | 100
Total loans and advances at amortised cost |  | 169,602 | 26,692 | 3,488 | 199,782 | 85 | 13 | 2 | 100
Reverse repurchase agreements and other similar secured lending |  | 4,896 | 86 | — | 4,982 | 98 | 2 | 0 | 100
Trading portfolio assets: |  |  |  |  |  |  |  |  |
Debt securities |  | 28,100 | 4,952 | 465 | 33,517 | 84 | 15 | 1 | 100
Traded loans |  | 2,058 | 9,728 | 203 | 11,989 | 17 | 81 | 2 | 100
Total trading portfolio assets |  | 30,158 | 14,680 | 668 | 45,506 | 66 | 32 | 2 | 100
Financial assets at fair value through the income statement: |  |  |  |  |  |  |  |  |
Loans and advances |  | 36,709 | 8,600 | 2 | 45,311 | 81 | 19 | 0 | 100
Debt securities |  | 2,443 | 574 | 36 | 3,053 | 80 | 19 | 1 | 100
Reverse repurchase agreements |  | 155,374 | 32,158 | 521 | 188,053 | 83 | 17 | 0 | 100
Other financial assets |  | 22 | — | — | 22 | 100 | 0 | 0 | 100
Total financial assets at fair value through the income statement |  | 194,548 | 41,332 | 559 | 236,439 | 83 | 17 | 0 | 100
Derivative financial instruments |  | 220,905 | 13,239 | 265 | 234,409 | 94 | 6 | 0 | 100
Financial assets at fair value through other comprehensive income |  | 44,157 | 6 | — | 44,163 | 100 | 0 | 0 | 100
Other assets |  | 978 | 40 | — | 1,018 | 96 | 4 | 0 | 100
Total on-balance sheet |  | 880,472 | 101,376 | 4,986 | 986,834 | 89 | 10 | 1 | 100

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 105

Credit exposures by internal PD grade
The below tables represent credit risk profile by PD grade for loans and advances at amortised cost, contingent liabilities and loan commitments.
Stage 1 higher risk assets, presented gross of associated collateral held, are of weaker credit quality but have not significantly deteriorated since
origination.
IFRS 9 Stage 1 and Stage 2 classification is not dependent solely on the absolute probability of default but on elements that determine a Significant
Increase in Credit Risk (see Note 8 to the financial statements on page 189), including relative movement in probability of default since initial
recognition. There is therefore no direct relationship between credit quality and IFRS 9 stage classification.

Barclays Bank Group
As at 31 December 2022
Credit risk profile by internal PD grade for loans and advances at amortised cost (audited)
|  |  | Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 57,324 | 845 | 5 | 58,174 | 2 | 15 | 3 | 20 | 58,154 | —
4-5 | 0.05 to < 0.15% | Strong | 24,545 | 235 | — | 24,780 | 11 | 1 | — | 12 | 24,768 | —
6-8 | 0.15 to < 0.30% | Strong | 14,893 | 4,348 | — | 19,241 | 24 | 16 | — | 40 | 19,201 | 0.2
9-11 | 0.30 to < 0.60% | Strong | 30,577 | 1,139 | — | 31,716 | 87 | 13 | — | 100 | 31,616 | 0.3
12-14 | 0.60 to < 2.15% | Satisfactory | 17,488 | 3,096 | — | 20,584 | 169 | 124 | — | 293 | 20,291 | 1.4
15-19 | 2.15 to < 10% | Satisfactory | 12,130 | 3,859 | — | 15,989 | 147 | 532 | — | 679 | 15,310 | 4.2
19 | 10 to < 11.35% | Satisfactory | 6,227 | 2,640 | — | 8,867 | 199 | 96 | — | 295 | 8,572 | 3.3
20-21 | 11.35 to < 100% | Higher Risk | 624 | 2,787 | — | 3,411 | 54 | 692 | — | 746 | 2,665 | 21.9
22 | 100% | Credit Impaired | — | — | 3,565 | 3,565 | — | — | 1,635 | 1,635 | 1,930 | 45.9
Total |  |  | 163,808 | 18,949 | 3,570 | 186,327 | 693 | 1,489 | 1,638 | 3,820 | 182,507 | 2.1

As at 31 December 2021
Credit risk profile by internal PD grade for loans and advances at amortised cost (audited)
|  |  | Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % |  | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 52,756 | 855 | — | 53,611 | 280 | 6 | — | 286 | 53,325 | 0.5
4-5 | 0.05 to < 0.15% | Strong | 17,797 | 211 | — | 18,008 | 6 | 2 | — | 8 | 18,000 | —
6-8 | 0.15 to < 0.30% | Strong | 10,764 | 1,220 | — | 11,984 | 15 | 7 | — | 22 | 11,962 | 0.2
9-11 | 0.30 to < 0.60% | Strong | 21,865 | 1,136 | — | 23,001 | 55 | 15 | — | 70 | 22,931 | 0.3
12-14 | 0.60 to < 2.15% | Satisfactory | 16,429 | 3,508 | — | 19,937 | 160 | 116 | — | 276 | 19,661 | 1.4
15-19 | 2.15 to < 10% | Satisfactory | 6,653 | 4,995 | — | 11,648 | 169 | 302 | — | 471 | 11,177 | 4.0
19 | 10 to < 11.35% | Satisfactory | 2,156 | 1,276 | — | 3,432 | 39 | 252 | — | 291 | 3,141 | 8.5
20-21 | 11.35 to < 100% | Higher Risk | 593 | 3,196 | — | 3,789 | 72 | 319 | — | 391 | 3,398 | 10.3
22 | 100% | Credit Impaired | — | — | 3,348 | 3,348 | — | — | 1,684 | 1,684 | 1,664 | 50.3
Total |  |  | 129,013 | 16,397 | 3,348 | 148,758 | 796 | 1,019 | 1,684 | 3,499 | 145,259 | 2.4

As at 31 December 2022
Credit risk profile by internal PD grade for contingent liabilities a (audited)
| Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 7,290 | 149 | — | 7,439 | 2 | 1 | — | 3 | 7,436 | —
4-5 | 0.05 to < 0.15% | Strong | 4,210 | 348 | — | 4,558 | 2 | 1 | — | 3 | 4,555 | 0.1
6-8 | 0.15 to < 0.30% | Strong | 2,733 | 180 | — | 2,913 | 3 | 3 | — | 6 | 2,907 | 0.2
9-11 | 0.30 to < 0.60% | Strong | 3,161 | 214 | — | 3,375 | 8 | 1 | — | 9 | 3,366 | 0.3
12-14 | 0.60 to < 2.15% | Satisfactory | 1,989 | 751 | — | 2,740 | 21 | 6 | — | 27 | 2,713 | 1.0
15-19 | 2.15 to < 10% | Satisfactory | 910 | 496 | — | 1,406 | 8 | 17 | — | 25 | 1,381 | 1.8
19 | 10 to < 11.35% | Satisfactory | 716 | 190 | — | 906 | 41 | 18 | — | 59 | 847 | 6.5
20-21 | 11.35 to < 100% | Higher Risk | 58 | 440 | — | 498 | 2 | 64 | — | 66 | 432 | 13.3
22 | 100% | Credit Impaired | — | — | 542 | 542 | — | — | 3 | 3 | 539 | 0.6
Total |  |  | 21,067 | 2,768 | 542 | 24,377 | 87 | 111 | 3 | 201 | 24,176 | 0.8

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 106

As at 31 December 2021
Credit risk profile by internal PD grade for contingent liabilities a (audited)
| Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 8,240 | 172 | — | 8,412 | 2 | 1 | — | 3 | 8,409 | —
4-5 | 0.05 to < 0.15% | Strong | 3,479 | 503 | — | 3,982 | 2 | 2 | — | 4 | 3,978 | 0.1
6-8 | 0.15 to < 0.30% | Strong | 1,996 | 199 | — | 2,195 | 2 | 2 | — | 4 | 2,191 | 0.2
9-11 | 0.30 to < 0.60% | Strong | 2,794 | 216 | — | 3,010 | 4 | 1 | — | 5 | 3,005 | 0.2
12-14 | 0.60 to < 2.15% | Satisfactory | 1,990 | 286 | — | 2,276 | 19 | 8 | — | 27 | 2,249 | 1.2
15-19 | 2.15 to < 10% | Satisfactory | 817 | 479 | — | 1,296 | 5 | 10 | — | 15 | 1,281 | 1.2
19 | 10 to < 11.35% | Satisfactory | 607 | 254 | — | 861 | 21 | 42 | — | 63 | 798 | 7.3
20-21 | 11.35 to < 100% | Higher Risk | 141 | 1,162 | — | 1,303 | 3 | 77 | — | 80 | 1,223 | 6.1
22 | 100% | Credit Impaired | — | — | 180 | 180 | — | — | 1 | 1 | 179 | 0.6
Total |  |  | 20,064 | 3,271 | 180 | 23,515 | 58 | 143 | 1 | 202 | 23,313 | 0.9

As at 31 December 2022
Credit risk profile by internal PD grade for loan commitments a (audited)
| Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 69,737 | 725 | — | 70,462 | 6 | — | — | 6 | 70,456 | 0.1
4-5 | 0.05 to < 0.15% | Strong | 72,221 | 3,649 | — | 75,870 | 5 | 1 | — | 6 | 75,864 | 0.1
6-8 | 0.15 to < 0.30% | Strong | 59,350 | 2,258 | — | 61,608 | 12 | 2 | — | 14 | 61,594 | 0.2
9-11 | 0.30 to < 0.60% | Strong | 40,750 | 1,878 | — | 42,628 | 13 | 4 | — | 17 | 42,611 | 0.4
12-14 | 0.60 to < 2.15% | Satisfactory | 26,100 | 4,355 | — | 30,455 | 47 | 14 | — | 61 | 30,394 | 0.2
15-19 | 2.15 to < 10% | Satisfactory | 18,925 | 3,653 | — | 22,578 | 32 | 38 | — | 70 | 22,508 | 0.3
19 | 10 to < 11.35% | Satisfactory | 10,241 | 2,754 | — | 12,995 | 29 | 27 | — | 56 | 12,939 | 0.4
20-21 | 11.35 to < 100% | Higher Risk | 678 | 3,886 | — | 4,564 | 3 | 78 | — | 81 | 4,483 | 1.8
22 | 100% | Credit Impaired | — | — | 346 | 346 | — | — | 20 | 20 | 326 | 5.8
Total |  |  | 298,002 | 23,158 | 346 | 321,506 | 147 | 164 | 20 | 331 | 321,175 | 1.0

As at 31 December 2021
Credit risk profile by internal PD grade for loan commitments a (audited)
| Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 92,864 | 3,002 | — | 95,866 | 5 | 3 | — | 8 | 95,858 | —
4-5 | 0.05 to < 0.15% | Strong | 55,979 | 5,345 | — | 61,324 | 10 | 5 | — | 15 | 61,309 | —
6-8 | 0.15 to < 0.30% | Strong | 22,345 | 2,079 | — | 24,424 | 7 | 6 | — | 13 | 24,411 | 0.1
9-11 | 0.30 to < 0.60% | Strong | 23,445 | 2,312 | — | 25,757 | 5 | 5 | — | 10 | 25,747 | —
12-14 | 0.60 to < 2.15% | Satisfactory | 23,189 | 3,240 | — | 26,429 | 79 | 23 | — | 102 | 26,327 | 0.4
15-19 | 2.15 to < 10% | Satisfactory | 6,362 | 2,749 | — | 9,111 | 20 | 21 | — | 41 | 9,070 | 0.5
19 | 10 to < 11.35% | Satisfactory | 10,270 | 2,964 | — | 13,234 | 8 | 13 | — | 21 | 13,213 | 0.2
20-21 | 11.35 to < 100% | Higher Risk | 2,196 | 6,669 | — | 8,865 | 11 | 55 | — | 66 | 8,799 | 0.7
22 | 100% | Credit Impaired | — | — | 870 | 870 | — | — | 21 | 21 | 849 | 2.4
Total |  |  | 236,650 | 28,360 | 870 | 265,880 | 145 | 131 | 21 | 297 | 265,583 | 0.1

Notes
a Excludes loan commitments and financial guarantees carried at fair value of £14.9bn (2021: £18.8bn) for Barclays Bank Group.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 107

Barclays Bank PLC
As at 31 December 2022 |  |  |  |  |  |  |  |  |  |
Credit risk profile by internal PD grade for loans and advances at amortised cost (audited)
| Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 143,039 | 1,107 | 5 | 144,151 | 14 | 1 | 3 | 18 | 144,133 | —
4-5 | 0.05 to < 0.15% | Strong | 18,823 | 234 | — | 19,057 | 8 | 1 | — | 9 | 19,048 | —
6-8 | 0.15 to < 0.30% | Strong | 9,883 | 4,238 | — | 14,121 | 15 | 15 | — | 30 | 14,091 | 0.2
9-11 | 0.30 to < 0.60% | Strong | 19,556 | 999 | — | 20,555 | 55 | 10 | — | 65 | 20,490 | 0.3
12-14 | 0.60 to < 2.15% | Satisfactory | 13,347 | 1,965 | — | 15,312 | 136 | 24 | — | 160 | 15,152 | 100.0
15-19 | 2.15 to < 10% | Satisfactory | 3,919 | 2,930 | — | 6,849 | 45 | 52 | — | 97 | 6,752 | 1.4
19 | 10 to < 11.35% | Satisfactory | 2,170 | 1,250 | — | 3,420 | 41 | 48 | — | 89 | 3,331 | 2.6
20-21 | 11.35 to < 100% | Higher Risk | 264 | 1,471 | — | 1,735 | 7 | 125 | — | 132 | 1,603 | 7.6
22 | 100% | Credit Impaired | — | — | 1,797 | 1,797 | — | — | 614 | 614 | 1,183 | 34.2
Total |  |  | 211,001 | 14,194 | 1,802 | 226,997 | 321 | 276 | 617 | 1,214 | 225,783 | 0.5

As at 31 December 2021 |  |  |  |  |  |  |  |  |  |
Credit risk profile by internal PD grade for loans and advances at amortised cost (audited)
|  |  | Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % |  | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 113,131 | 533 | — | 113,664 | 5 | 1 | — | 6 | 113,658 | —
4-5 | 0.05 to < 0.15% | Strong | 14,859 | 176 | — | 15,035 | — | 1 | — | 1 | 15,034 | —
6-8 | 0.15 to < 0.30% | Strong | 8,541 | 949 | — | 9,490 | 13 | 3 | — | 16 | 9,474 | 0.2
9-11 | 0.30 to < 0.60% | Strong | 30,377 | 1,106 | — | 31,483 | 37 | 10 | — | 47 | 31,436 | 0.1
12-14 | 0.60 to < 2.15% | Satisfactory | 12,785 | 2,942 | — | 15,727 | 102 | 30 | — | 132 | 15,595 | 0.8
15-19 | 2.15 to < 10% | Satisfactory | 4,464 | 3,938 | — | 8,402 | 34 | 57 | — | 91 | 8,311 | 1.1
19 | 10 to < 11.35% | Satisfactory | 2,058 | 773 | — | 2,831 | 27 | 18 | — | 45 | 2,786 | 1.6
20-21 | 11.35 to < 100% | Higher Risk | 203 | 2,403 | — | 2,606 | 3 | 77 | — | 80 | 2,526 | 3.1
22 | 100% | Credit Impaired | — | — | 1,731 | 1,731 | — | — | 769 | 769 | 962 | 44.4
Total |  |  | 186,418 | 12,820 | 1,731 | 200,969 | 221 | 197 | 769 | 1,187 | 199,782 | 0.6

As at 31 December 2022 |  |  |  |  |  |  |  |  |  |
Credit risk profile by internal PD grade for contingent liabilities a (audited)
| Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 47,460 | 147 | — | 47,607 | 7 | 1 | — | 8 | 47,599 | —
4-5 | 0.05 to < 0.15% | Strong | 3,198 | 344 | — | 3,542 | 2 | 1 | — | 3 | 3,539 | 0.1
6-8 | 0.15 to < 0.30% | Strong | 2,026 | 134 | — | 2,160 | 2 | 3 | — | 5 | 2,155 | 0.2
9-11 | 0.30 to < 0.60% | Strong | 2,615 | 50 | — | 2,665 | 5 | — | — | 5 | 2,660 | 0.2
12-14 | 0.60 to < 2.15% | Satisfactory | 1,564 | 323 | — | 1,887 | 16 | 4 | — | 20 | 1,867 | 1.1
15-19 | 2.15 to < 10% | Satisfactory | 745 | 303 | — | 1,048 | 6 | 9 | — | 15 | 1,033 | 1.4
19 | 10 to < 11.35% | Satisfactory | 707 | 179 | — | 886 | 41 | 17 | — | 58 | 828 | 0.7
20-21 | 11.35 to < 100% | Higher Risk | 55 | 431 | — | 486 | 2 | 63 | — | 65 | 421 | 13.4
22 | 100% | Credit Impaired | — | — | 499 | 499 | — | — | 3 | 3 | 496 | 0.6
Total |  |  | 58,370 | 1,911 | 499 | 60,780 | 81 | 98 | 3 | 182 | 60,598 | 0.3

Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 108

As at As at 31 December 2021 |  |  |  |  |  |  |  |  |  |
Credit risk profile by internal PD grade for contingent liabilities a (audited)
| Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 42,632 | 162 | — | 42,794 | 8 | 1 | — | 9 | 42,803 | —
4-5 | 0.05 to < 0.15% | Strong | 3,024 | 413 | — | 3,437 | 1 | 2 | — | 3 | 3,440 | 0.1
6-8 | 0.15 to < 0.30% | Strong | 1,407 | 168 | — | 1,575 | 1 | 2 | — | 3 | 1,578 | 0.2
9-11 | 0.30 to < 0.60% | Strong | 2,346 | 124 | — | 2,470 | 3 | 1 | — | 4 | 2,474 | 0.2
12-14 | 0.60 to < 2.15% | Satisfactory | 1,663 | 242 | — | 1,905 | 19 | 8 | — | 27 | 1,932 | 1.4
15-19 | 2.15 to < 10% | Satisfactory | 742 | 346 | — | 1,088 | 5 | 8 | — | 13 | 1,101 | 1.2
19 | 10 to < 11.35% | Satisfactory | 607 | 253 | — | 860 | 21 | 42 | — | 63 | 923 | 7.3
20-21 | 11.35 to < 100% | Higher Risk | 139 | 1,144 | — | 1,283 | 3 | 76 | — | 79 | 1,362 | 6.2
22 | 100% | Credit Impaired | — | — | 131 | 131 | — | — | 1 | 1 | 132 | 0.8
Total |  |  | 52,560 | 2,852 | 131 | 55,543 | 61 | 140 | 1 | 202 | 55,745 | —

As at 31 December 2022 |  |  |  |  |  |  |  |  |  |
Credit risk profile by internal PD grade for loan commitments a (audited)
| Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 69,839 | 473 | — | 70,312 | 2 | — | — | 2 | 70,310 | —
4-5 | 0.05 to < 0.15% | Strong | 41,526 | 2,405 | — | 43,931 | 3 | 1 | — | 4 | 43,927 | —
6-8 | 0.15 to < 0.30% | Strong | 21,669 | 1,699 | — | 23,368 | 4 | 2 | — | 6 | 23,362 | —
9-11 | 0.30 to < 0.60% | Strong | 14,176 | 1,328 | — | 15,504 | 5 | 2 | — | 7 | 15,497 | —
12-14 | 0.60 to < 2.15% | Satisfactory | 19,218 | 2,637 | — | 21,855 | 39 | 9 | — | 48 | 21,807 | 0.2
15-19 | 2.15 to < 10% | Satisfactory | 3,554 | 2,229 | — | 5,783 | 19 | 23 | — | 42 | 5,741 | 0.7
19 | 10 to < 11.35% | Satisfactory | 7,596 | 2,727 | — | 10,323 | 20 | 26 | — | 46 | 10,277 | 0.4
20-21 | 11.35 to < 100% | Higher Risk | 517 | 3,494 | — | 4,011 | — | 46 | — | 46 | 3,965 | 1.1
22 | 100% | Credit Impaired | — | — | 309 | 309 | — | — | 20 | 20 | 289 | 6.5
Total |  |  | 178,095 | 16,992 | 309 | 195,396 | 92 | 109 | 20 | 221 | 195,175 | 0.1

As at 31 December 2021 |  |  |  |  |  |  |  |  |  |
Credit risk profile by internal PD grade for loan commitments a (audited)
| Gross carrying amount | Allowance for ECL | Net exposure | Coverage ratio
| PD range | Credit quality description | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Grading | % | £m | £m | £m | £m | £m | £m | £m | £m | £m | %
1-3 | 0.0 to < 0.05% | Strong | 48,591 | 1,836 | — | 50,427 | 1 | 1 | — | 2 | 50,425 | —
4-5 | 0.05 to < 0.15% | Strong | 43,714 | 3,706 | — | 47,420 | 3 | 3 | — | 6 | 47,414 | —
6-8 | 0.15 to < 0.30% | Strong | 15,777 | 1,697 | — | 17,474 | 3 | 2 | — | 5 | 17,469 | —
9-11 | 0.30 to < 0.60% | Strong | 14,440 | 1,602 | — | 16,042 | 1 | 2 | — | 3 | 16,039 | —
12-14 | 0.60 to < 2.15% | Satisfactory | 15,731 | 2,541 | — | 18,272 | 60 | 9 | — | 69 | 18,203 | 0.4
15-19 | 2.15 to < 10% | Satisfactory | 4,855 | 1,914 | — | 6,769 | 17 | 14 | — | 31 | 6,738 | 0.5
19 | 10 to < 11.35% | Satisfactory | 10,249 | 2,790 | — | 13,039 | 8 | 11 | — | 19 | 13,020 | 0.1
20-21 | 11.35 to < 100% | Higher Risk | 2,118 | 5,503 | — | 7,621 | 9 | 53 | — | 62 | 7,559 | 0.8
22 | 100% | Credit Impaired | — | — | 747 | 747 | — | — | 21 | 21 | 726 | 2.8
Total |  |  | 155,475 | 21,589 | 747 | 177,811 | 102 | 95 | 21 | 218 | 177,593 | 0.1

Notes
a Excludes loan commitments and financial guarantees carried at fair value of £13.4 bn (2021: £17.5bn) for Barclays Bank PLC.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 109

Analysis of specific portfolios and asset types
Credit cards, unsecured loans and other retail lending
The principal portfolios listed below accounted for 81% (2021: 76%) of Barclays Bank Group’s total credit cards, unsecured loans and other retail
lending.

Principal portfolios
| Gross Exposure | 30 Day Arrears, excluding recoveries book | 90 Day Arrears, excluding recoveries book | Annualised Gross Write-off Rates | Annualised Net Write-off Rates
| £m | % | % | % | %
As at 31 December 2022 |  |  |  |  |
US cards | 25,554 | 2.2 | 1.2 | 2.4 | 2.3
Germany consumer lending | 4,269 | 1.7 | 0.7 | 0.7 | 0.6
As at 31 December 2021 |  |  |  |  |
US cards | 17,779 | 1.6 | 0.8 | 4.3 | 4.2
Germany consumer lending | 3,559 | 1.5 | 0.7 | 0.9 | 0.8

US cards: Balances increased due to the acquisition of the Gap portfolio in June 2022, movement in the USD/GBP exchange rate and core portfolio
growth. 30 and 90 day arrears rates increased to 2.2% (2021: 1.6%) and 1.2% (2021: 0.8%) due to the partial normalisation of customer behaviour and
the acquisition of the Gap portfolio, though rates remain below pre-pandemic levels. Write-off rates decreased reflecting portfolio growth and the
impact of lower charge offs in 2021 due to the benefit of government support schemes.
Germany consumer lending: 30 day arrears rate increased to 1.7% (2021: 1.5%) due to increased macroeconomic uncertainty in Europe, though the
rate was consistent with pre-pandemic levels.
Government supported loans
Throughout the COVID-19 pandemic Barclays Bank Group has supported its customers and clients by participating in the UK Government's Coronavirus
Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) and Recovery Loan Scheme (RLS).

Government supported loans |  |  |  |  |  |  |  |  |  |  |
| Gross exposure | Impairment allowance | Impairment coverage | Government guaranteed exposure |  |  |  |  |  |  |  |  |  |  |
| Stage 1 | Stage 2 | Stage 3 | Total | Modelled Impairment | Management adjustment | Impairment post Management adjustment | Pre Management adjustment | Post Management adjustment | Total |  |  |  |  |  |  |  |  |  |  |
| £m | £m | £m | £m | £m | £m | £m | % | % | £m |  |  |  |  |  |  |  |  |  |  |
As at 31 December 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CBILS | 306 | 154 | 8 | 468 | 5 | — | 5 | 1.1 | 1.1 | 375 |  |  |  |  |  |  |  |  |  |  |
CLBILS | 67 | 32 | 13 | 112 | 2 | — | 2 | 2.1 | 2.1 | 89 |  |  |  |  |  |  |  |  |  |  |
RLS | 17 | 3 | 1 | 21 | — | — | — | 1.5 | 1.5 | 16 |  |  |  |  |  |  |  |  |  |  |
Total | 390 | 189 | 22 | 601 | 7 | — | 7 | 1.2 | 1.2 | 480 |  |  |  |  |  |  |  |  |  |  |
As at 31 December 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CBILS | 619 | 146 | 6 | 771 | 5 | — | 5 | 0.6 | 0.6 | 617 |  |  |  |  |  |  |  |  |  |  |
CLBILS | 163 | 56 | 2 | 221 | 1 | — | 1 | 0.4 | 0.4 | 177 |  |  |  |  |  |  |  |  |  |  |
RLS | 1 | — | — | 1 | — | — | — | 4.7 | 4.7 | 1 |  |  |  |  |  |  |  |  |  |  |
Total | 783 | 202 | 8 | 993 | 6 | — | 6 | 0.6 | 0.6 | 795 |  |  |  |  |  |  |  |  |  |  |

The CBILS scheme was launched to provide financial support to smaller and medium-sized businesses and CLBILS for larger businesses in the UK who
may experience financial difficulties as a result of the COVID-19 outbreak. The RLS aims to help UK businesses access finance as they recover and grow
following the COVID-19 pandemic. These loans are guaranteed by the Government at 80% for CBILS, CLBILS and RLS (70% for RLS issued post January
1, 2022) as at the balance sheet date.
Risk review
Risk performance
Credit risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 110

Summary of Contents | Page |
■Market risk overview | 112 | Outlines key measures used to summarise the market risk profile of the Barclays Bank Group such as VaR.
■Measures of market risk in the Barclays Bank Group and accounting measures | 112
■Summary of performance in the period | 112
■Traded market risk review | 112 | The Barclays Bank Group discloses details on management measures of market risk. Total management VaR includes all trading positions and is presented on a diversified basis by risk factor.
■Review of management measures | 112
–The daily average, maximum and minimum values of management VaR | 112
–Business scenario stresses | 113 | This section also outlines the macroeconomic conditions modelled as part of the Barclays Bank Group’s risk management framework.

Risk review
Risk performance
Market risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 111

All disclosures in this section, pages 112 to 113, are unaudited unless otherwise stated.
Overview
This section contains key statistics describing the market risk profile of the Barclays Bank Group:
•The market risk management section on page 60 provides a description of management VaR. Management measures are shown below.
Measures of market risk in the Barclays Bank Group and accounting measures
Traded market risk measures such as VaR and balance sheet exposure measures have fundamental differences:
•Balance sheet measures show accruals-based balances or marked to market values as at the reporting date.
•VaR measures also take account of current marked to market values but, in addition, hedging effects between positions are considered.
•Market risk measures are expressed in terms of changes in value or volatilities as opposed to static values.
For these reasons, it is not possible to present direct reconciliations of traded market risk and accounting measures.
Summary of performance in the period
Average management VaR increased 89% to £36 m (2021: £19 m) driven by higher market volatility. The Russian invasion of Ukraine and elevated
inflation increased volatility across all asset classes as central banks increased base rates, equity markets declined, and credit spreads widened during
this period. T he Global Markets business maintained a generally short and defensive risk profile (i.e. positioned to gain as the market sells off) for most
of 2022. VaR increased in Q4 2022 from an increase in funded, fair-value leverage loan exposure in Investment Banking. Risk taking remained within
agreed risk appetite limits at all times in 2022.
Traded market risk review
Review of management measures
The following disclosures provide details of management measures of market risk.
The table below shows the total management VaR on a diversified basis by risk factor. Total management VaR includes all trading positions in CIB and
the supporting Barclays Bank Group Treasury desks, measured to a confidence level of 95%.
Limits are applied against each risk factor VaR as well as total management VaR, which are then cascaded further by risk managers to each business.
The daily average, high and low values of management VaR

Management VaR (95%, one day) (audited)
| 2022 | 2021
| Average | High | Low | Average | High | Low
For the year ended 31 December | £m | £m | £m | £m | £m | £m
Credit risk | 25 | 71 | 8 | 14 | 30 | 7
Interest rate risk | 13 | 23 | 4 | 7 | 14 | 4
Equity risk | 10 | 29 | 4 | 9 | 29 | 4
Basis risk | 12 | 24 | 4 | 5 | 10 | 3
Spread risk | 7 | 11 | 3 | 4 | 6 | 3
Foreign exchange risk | 7 | 25 | 2 | 4 | 16 | 1
Commodity risk | — | 1 | — | — | 1 | —
Inflation risk | 7 | 17 | 3 | 3 | 5 | 2
Diversification effect a | (45) | n/a | n/a | (27) | n/a | n/a
Total management VaR | 36 | 72 | 14 | 19 | 36 | 6

Note
a Diversification effects recognise that forecast losses from different assets or businesses are unlikely to occur concurrently, hence the expected aggregate loss is lower than
the sum of the expected losses from each area. Historical correlations between losses are taken into account in making these assessments. The high and low VaR figures
reported for each category did not necessarily occur on the same day as the high and low VaR reported as a whole. Consequently, a diversification effect balance for the
high and low VaR figures would not be meaningful and is therefore omitted from the above table.
Risk review
Risk performance
Market risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 112

Barclays Bank Group Management VaR (£m)
Business scenario stresses
As part of the Barclays Bank Group’s risk management framework, on a regular basis the performance of the trading business in hypothetical scenarios
characterised by severe macroeconomic conditions is modelled. Up to seven global scenarios are modelled on a regular basis, for example, a sharp
deterioration in liquidity, a slowdown in the global economy, global recession and a sharp increase in economic growth.
In 2022, the scenario analyses showed that the largest market risk related impacts would be due to a severe deterioration in financial liquidity and a
global recession.
Risk review
Risk performance
Market risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 113

Summary of Contents | Page |
Liquidity risk performance |  |
■Liquidity risk overview | 114 | The risk that the firm is unable to meet its contractual or contingent obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. This section provides an overview of the Barclays Bank Group’s liquidity risk.
■Liquidity risk stress testing | 115
■Contractual maturity of financial assets and liabilities | 117 | Provides details on the contractual maturity of all financial instruments and other assets and liabilities.
Capital risk performance |  |
■Capital risk overview | 125 | Capital risk is the risk that the firm has an insufficient level or composition of capital to support its normal business activities and to meet its regulatory capital requirements under normal operating environments or stressed conditions (both actual and as defined for internal planning or regulatory testing purposes). This also includes the risk from the firm’s pension plans. This section details Barclays Bank Group’s capital and leverage position.
–Capital ratios | 125
–Capital resources | 125
–L everage ratio | 126
■Foreign exchange risk | 127 | Barclays Bank Group discloses the two sources of foreign exchange risk that it is exposed to.
–Transactional foreign currency exposure | 127
–Translational foreign exchange exposure | 127
–Functional currency of operations | 127
■Pension risk review | 128 | A review focusing on the UK retirement fund, which represents the majority of Barclays Bank Group’s total retirement benefit obligation.
–Assets | 128
–Liabilities | 128
–IAS 19 position | 128
–Risk measurement | 129
Interest rate risk in the banking book performance |  |
■Interest rate risk in the banking book overview and summary of performance | 130 | A description of the non-traded market risk framework is provided. Barclays Bank Group discloses a sensitivity analysis on pre-tax net interest income for non-trading financial assets and liabilities. The analysis is carried out by currency. Barclays Bank Group discloses the overall impact of a parallel shift in interest rates on other comprehensive income and cash flow hedges. Barclays Bank Group measures the volatility of the value of the FVOCI instruments in the liquidity pool through non-traded market risk VaR.
■Net interest income sensitivity | 130
■Analysis of equity sensitivity | 131
■Volatility of the FVOCI portfolio in the liquidity pool | 131

Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 114

Liquidity risk
All disclosures in this section, pages 115 to 135, are unaudited unless otherwise stated.
Overview
The efficient management of liquidity is essential to the Barclays Bank Group in order to retain the confidence of markets and maintain the sustainability
of the business. The liquidity risk control framework is used to manage all liquidity risk exposures under both business-as-usual and stressed conditions.
The liquidity risk framework is designed to maintain liquidity resources that are sufficient in amount, quality and funding tenor profile to support the
liquidity risk appetite as expressed by the Barclays Bank PLC Board. The liquidity risk appetite is monitored against both internal and regulatory liquidity
metrics.
For the purpose of liquidity management, Barclays Bank PLC and its subsidiary Barclays Capital Securities Limited, a UK broker dealer entity, are
monitored on a combined basis by the PRA under a Domestic Liquidity Sub-Group (Barclays Bank PLC DoLSub) arrangement.
Liquidity regulation
Certain Basel III standards including those relating to the introduction of the liquidity adequacy requirement measured through the Liquidity Coverage
Ratio (LCR) were implemented in EU law through CRR, as amended by CRRII, and the Capital Requirements Directive IV. These standards were retained
in the UK regulatory framework via a series of onshoring instruments as part of the UK’s withdrawal from the EU. In October 2021, the PRA published
the final policy statement setting out its planned implementation of supplementary Basel III standards, including the Net Stable Funding Ratio (NSFR).
These came into effect in the UK on 1 January 2022 from which date the Barclays Bank Group and its UK subsidiaries monitored their positions against
both the LCR and NSFR. The LCR requirement takes into account the relative stability of different sources of funding and potential incremental funding
requirements in a stress. The NSFR has been developed to promote a sustainable and stable structure of assets and liabilities.
Liquidity risk stress testing
The internal liquidity stress test measures the potential contractual and contingent stress outflows under a range of stress scenarios, which are then
used to determine the size of the liquidity pool that is immediately available to meet anticipated outflows if a stress occurs. The scenarios include a 30
day Barclays-specific stress event, a 90 day market-wide stress event and a 30 day combined scenario consisting of both a Barclays specific and market-
wide stress event.
As at 31 December 2022, Barclays Bank PLC DoLSub held eligible liquid assets well above 100% of net stressed outflows to its internal and regulatory
requirements. The split of the liquidity pool between cash and deposits with central banks, government bonds and other eligible securities is broadly
similar to the Barclays Group.
The liquidity pool increased to £191bn (December 2021: £167bn), while the LCR remained above the 100% regulatory requirement at 148% (December
2021:140%). The liquidity pool movement was driven by further growth in deposits, and an increase in wholesale funding, which were partly offset by
an increase in business funding consumption.

| 2022 | 2021
As at 31 December | £bn | £bn
Barclays Bank PLC DoLSub Liquidity Pool 1 | 191 | 167
| % | %
Barclays Bank PLC DoLSub Liquidity Coverage Ratio | 148 | 140

Note
1.In 2021 the Barclays Bank Group Liquidity Pool which included Barclays Bank Ireland PLC and the US subsidiaries was disclosed.
The Barclays Bank Group has direct access to US, European and Asian capital markets through its global investment banking operations and to long-
term investors through its clients worldwide. Key sources of wholesale funding include money markets, certificates of deposit, commercial paper,
medium term issuances (including structured notes) and securitisations. This funding capacity enables the Barclays Bank Group to maintain a stable
and diversified funding base.
The Barclays Bank Group also supports various central bank monetary initiatives, such as the Bank of England’s Term Funding Scheme (TFS) and Term
Funding Scheme with additional incentives for SMEs (TFSME), and the European Central Bank’s Targeted Long-Term Refinancing Operations (TLTRO).
These are reported under ‘repurchase agreements and other similar secured borrowing’ on the balance sheet. In 2022, Barclays Bank Group repaid
£1.1bn of TLTRO drawings reducing its outstanding balance to £1.4bn as at 31 December 2022. Barclays Bank Group had £7.0bn TFSME balances
outstanding at the year-end.
Net Stable Funding Ratio (NSFR)
The external NSFR metric requires banks to maintain a stable funding profile taking into account both on and certain off balance sheet exposures over a
medium to long term period. The ratio is defined as the Available Stable Funding (capital and certain liabilities which are defined as stable sources of
funding) relative to the Required Stable Funding (assets on balance sheet and certain off balance sheet exposures). The NSFR (average of last four
quarter ends) was 108% at December 2022, equivalent to a surplus of £20bn above the regulatory requirement and demonstrates Barclays Bank PLC’s
stable funding profile in relation to our on and certain off-balance sheet activiti es.
Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 115

| 2022
Net Stable Funding Ratio 2 | £bn
Total Available Stable Funding | 310
Total Required Stable Funding | 288
Surplus | 22
Net Stable Funding Ratio | 108%

Note
2. Average represents the last four spot quarter end positions.
As part of the liquidity risk app etite, Barclays Bank PLC DoLSub establishes minimum LCR, NSFR and internal liquidity stress test limits. Barclays Bank
PLC DoLSub plans to maintain its surplus to the internal and regulatory requirements at an efficient level. Risks to market funding conditions, the
Group’s liquidity position and funding profile are assessed continuously, and actions are taken to manage the size of the liquidity pool and the funding
profile as appropriate.
Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 116

Contractual maturity of financial assets and liabilities
The table below provides detail on the contractual maturity of all financial instruments and other assets and liabilities. Derivatives (other than those
designated in a hedging relationship) and trading portfolio assets and liabilities are included in the ‘on demand’ column at their fair value. Liquidity risk
on these items is not managed on the basis of contractual maturity since these items are not held for settlement according to such maturity and will
frequently be settled before contractual maturity at fair value. Derivatives designated in a hedging relationship are included according to their
contractual maturity.

Contractual maturity of financial assets and liabilities (audited)
Barclays Bank Group | On demand | Not more than three months | Over three months but not more than six months | Over six months but not more than nine months | Over nine months but not more than one year | Over one year but not more than two years | Over two years but not more than three years | Over three years but not more than five years | Over five years but not more than ten years | Over ten years | Total
As at 31 December 2022 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Assets |  |  |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 201,888 | 254 | — | — | — | — | — | — | — | — | 202,142
Cash collateral and settlement balances | 3,010 | 104,852 | — | — | — | — | — | — | — | — | 107,862
Loans and advances at amortised cost | 15,961 | 11,458 | 7,606 | 7,082 | 10,261 | 29,637 | 23,135 | 39,498 | 17,385 | 20,484 | 182,507
Reverse repurchase agreements and other similar secured lending | 127 | 597 | — | — | — | — | — | — | — | 1 | 725
Trading portfolio assets | 133,771 | — | — | — | — | — | — | — | — | — | 133,771
Financial assets at fair value through the income statement | 32,032 | 147,655 | 7,003 | 4,842 | 2,036 | 6,361 | 4,561 | 2,909 | 1,769 | 1,960 | 211,128
Derivative financial instruments | 302,665 | 91 | 19 | — | 4 | — | 174 | — | — | 23 | 302,976
Financial assets at fair value through other comprehensive income | 8 | 3,391 | 2,871 | 583 | 132 | 6,991 | 4,654 | 11,493 | 8,161 | 6,800 | 45,084
Other financial assets | 285 | 1,062 | 112 | — | 43 | — | — | 1 | — | — | 1,503
Total financial assets | 689,747 | 269,360 | 17,611 | 12,507 | 12,476 | 42,989 | 32,524 | 53,901 | 27,315 | 29,268 | 1,187,698
Other assets |  |  |  |  |  |  |  |  |  |  | 15,839
Total assets |  |  |  |  |  |  |  |  |  |  | 1,203,537
Liabilities |  |  |  |  |  |  |  |  |  |  |
Deposits at amortised cost | 196,398 | 62,314 | 18,918 | 4,384 | 6,425 | 911 | 373 | 621 | 996 | 239 | 291,579
Cash collateral and settlement balances | 3,013 | 93,798 | — | — | — | — | — | — | — | — | 96,811
Repurchase agreements and other similar secured borrowing | 256 | 9,578 | — | — | 943 | 1,105 | — | — | — | 83 | 11,965
Debt securities in issue | — | 27,136 | 12,516 | 4,691 | 5,368 | 3,528 | 1,241 | 1,501 | 3,663 | 368 | 60,012
Subordinated liabilities | — | 17 | 240 | 974 | 1,105 | 4,369 | 4,782 | 9,001 | 10,288 | 7,477 | 38,253
Trading portfolio liabilities | 72,460 | — | — | — | — | — | — | — | — | — | 72,460
Financial liabilities designated at fair value | 10,844 | 187,160 | 14,352 | 5,292 | 3,812 | 13,992 | 10,547 | 8,528 | 6,708 | 10,820 | 272,055
Derivative financial instruments | 288,398 | 15 | 58 | 4 | — | 137 | 85 | 112 | 56 | 341 | 289,206
Other financial liabilities | 56 | 7,176 | 17 | 18 | 17 | 164 | 59 | 117 | 161 | 21 | 7,806
Total financial liabilities | 571,425 | 387,194 | 46,101 | 15,363 | 17,670 | 24,206 | 17,087 | 19,880 | 21,872 | 19,349 | 1,140,147
Other liabilities |  |  |  |  |  |  |  |  |  |  | 4,437
Total liabilities |  |  |  |  |  |  |  |  |  |  | 1,144,584
Cumulative liquidity gap | 118,322 | 488 | (28,002) | (30,858) | (36,052) | (17,269) | (1,832) | 32,189 | 37,632 | 47,551 | 58,953

Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 117

Contractual maturity of financial assets and liabilities (audited)
Restated a
Barclays Bank Group | On demand | Not more than three months | Over three months but not more than six months | Over six months but not more than nine months | Over nine months but not more than one year | Over one year but not more than two years | Over two years but not more than three years | Over three years but not more than five years | Over five years but not more than ten years | Over ten years | Total
As at 31 December 2021 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Assets |  |  |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 168,881 | 204 | — | — | — | — | — | — | — | — | 169,085
Cash collateral and settlement balances | 2,743 | 85,342 | — | — | — | — | — | — | — | — | 88,085
Loans and advances at amortised cost | 17,470 | 7,855 | 6,745 | 4,238 | 9,611 | 19,162 | 20,813 | 27,416 | 14,420 | 17,529 | 145,259
Reverse repurchase agreements and other similar secured lending | 58 | 2,934 | — | — | — | 184 | — | — | — | 1 | 3,177
Trading portfolio assets | 146,871 | — | — | — | — | — | — | — | — | — | 146,871
Financial assets at fair value through the income statement | 24,174 | 127,244 | 9,280 | 7,036 | 3,336 | 5,351 | 5,376 | 2,062 | 1,996 | 2,371 | 188,226
Derivative financial instruments | 262,046 | 36 | 1 | — | — | — | — | 184 | 15 | 9 | 262,291
Financial assets at fair value through other comprehensive income | — | 3,194 | 1,080 | 449 | 547 | 2,656 | 5,389 | 10,093 | 13,823 | 8,677 | 45,908
Other financial assets | 607 | 255 | 130 | 2 | — | — | — | — | — | — | 994
Total financial assets | 622,850 | 227,064 | 17,236 | 11,725 | 13,494 | 27,353 | 31,578 | 39,755 | 30,254 | 28,587 | 1,049,896
Other assets |  |  |  |  |  |  |  |  |  |  | 11,882
Total assets |  |  |  |  |  |  |  |  |  |  | 1,061,778
Liabilities |  |  |  |  |  |  |  |  |  |  |
Deposits at amortised cost | 201,501 | 41,632 | 12,380 | 1,920 | 2,898 | 558 | 435 | 242 | 1,031 | 231 | 262,828
Cash collateral and settlement balances | 2,951 | 76,096 | — | — | — | — | — | — | — | — | 79,047
Repurchase agreements and other similar secured borrowing | 20 | 5,022 | — | — | — | 3,216 | 4,424 | — | — | 87 | 12,769
Debt securities in issue | — | 18,274 | 12,150 | 5,845 | 3,254 | 463 | 3,319 | 1,792 | 2,654 | 637 | 48,388
Subordinated liabilities | — | 1,005 | — | 74 | 1,243 | 7,030 | 2,251 | 5,714 | 8,490 | 6,378 | 32,185
Trading portfolio liabilities | 53,291 | — | — | — | — | — | — | — | — | — | 53,291
Financial liabilities designated at fair value | 21,339 | 158,078 | 16,857 | 10,267 | 3,588 | 6,534 | 6,114 | 7,734 | 7,366 | 13,254 | 251,131
Derivative financial instruments | 255,471 | 4 | 22 | — | 2 | 121 | 151 | 279 | 111 | 362 | 256,523
Other financial liabilities | 87 | 3,656 | 15 | 15 | 12 | 443 | 52 | 102 | 183 | 27 | 4,592
Total financial liabilities | 534,660 | 303,767 | 41,424 | 18,121 | 10,997 | 18,365 | 16,746 | 15,863 | 19,835 | 20,976 | 1,000,754
Other liabilities |  |  |  |  |  |  |  |  |  |  | 4,707
Total liabilities |  |  |  |  |  |  |  |  |  |  | 1,005,461
Cumulative liquidity gap | 88,190 | 11,487 | (12,701) | (19,097) | (16,600) | (7,612) | 7,220 | 31,112 | 41,531 | 49,142 | 56,317

Note
a.2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details. The contractual maturity profile of financial liabilities designated at fair value has been restated to reflect the impact of the Over-issuance of Securities.
Securities issued by the Company in excess of the maximum aggregate offering price registered under the Company’s 2019 F-3 with a valu e of £6,997m hav e been
classified as "on demand".
Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 118

Contractual maturity of financial assets and liabilities (audited)
Barclays Bank PLC | On demand | Not more than three months | Over three months but not more than six months | Over six months but not more than nine months | Over nine months but not more than one year | Over one year but not more than two years | Over two years but not more than three years | Over three years but not more than five years | Over five years but not more than ten years | Over ten years | Total
As at 31 December 2022 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Assets |  |  |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 170,053 | 254 | — | — | — | — | — | — | — | — | 170,307
Cash collateral and settlement balances | 1,219 | 81,152 | — | — | — | — | — | — | — | — | 82,371
Loans and advances at amortised cost | 11,398 | 59,934 | 7,810 | 11,403 | 11,669 | 23,583 | 25,262 | 36,106 | 28,058 | 10,560 | 225,783
Reverse repurchase agreements and other similar secured lending | — | 5,907 | — | — | — | — | — | — | — | 1 | 5,908
Trading portfolio assets | 83,043 | — | — | — | — | — | — | — | — | — | 83,043
Financial assets at fair value through the income statement | 96 | 209,570 | 9,016 | 6,500 | 2,574 | 5,877 | 6,003 | 4,907 | 1,822 | 960 | 247,325
Derivative financial instruments | 258,254 | 168 | 10 | — | 4 | 76 | 175 | — | — | 21 | 258,708
Financial assets at fair value through other comprehensive | — | 1,421 | 2,854 | 582 | 132 | 6,990 | 4,654 | 11,492 | 8,161 | 6,800 | 43,086
Other financial assets | 272 | 948 | 496 | — | 9 | — | — | — | — | — | 1,725
Total financial assets | 524,335 | 359,354 | 20,186 | 18,485 | 14,388 | 36,526 | 36,094 | 52,505 | 38,041 | 18,342 | 1,118,256
Other assets |  |  |  |  |  |  |  |  |  |  | 29,656
Total assets |  |  |  |  |  |  |  |  |  |  | 1,147,912
Liabilities |  |  |  |  |  |  |  |  |  |  |
Deposits at amortised cost | 176,787 | 79,878 | 16,077 | 3,600 | 5,754 | 746 | 2,847 | 3,534 | 2,689 | 21,983 | 313,895
Cash collateral and settlement balances | 1,712 | 63,243 | — | — | — | — | — | — | — | — | 64,955
Repurchase agreements and other similar secured borrowing | — | 15,824 | 601 | 1,070 | 1,224 | 639 | 5,315 | 1,551 | — | 83 | 26,307
Debt securities in issue | — | 16,118 | 10,548 | 4,113 | 4,606 | 1,027 | 193 | 366 | 3,195 | — | 40,166
Subordinated liabilities | — | — | 240 | 891 | 970 | 4,162 | 4,696 | 9,000 | 10,264 | 7,433 | 37,656
Trading portfolio liabilities | 52,093 | — | — | — | — | — | — | — | — | — | 52,093
Financial liabilities designated at fair value | 24 | 230,343 | 14,722 | 5,055 | 3,502 | 11,224 | 9,871 | 10,022 | 6,479 | 9,609 | 300,851
Derivative financial instruments | 249,760 | 14 | 59 | 4 | — | 136 | 85 | 112 | 56 | 341 | 250,567
Other financial liabilities | 29 | 6,409 | 6 | 6 | 6 | 173 | 24 | 50 | 106 | 7 | 6,816
Total financial liabilities | 480,405 | 411,829 | 42,253 | 14,739 | 16,062 | 18,107 | 23,031 | 24,635 | 22,789 | 39,456 | 1,093,306
Other liabilities |  |  |  |  |  |  |  |  |  |  | 2,139
Total liabilities |  |  |  |  |  |  |  |  |  |  | 1,095,445
Cumulative liquidity gap | 43,930 | (8,545) | (30,612) | (26,866) | (28,540) | (10,121) | 2,942 | 30,812 | 46,064 | 24,950 | 52,467

Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 119

Contractual maturity of financial assets and liabilities (audited)
Barclays Bank PLC |  |  |  |  |  |  |  |  |  |  | Restated a
| On demand | Not more than three months | Over three months but not more than six months | Over six months but not more than nine months | Over nine months but not more than one year | Over one year but not more than two years | Over two years but not more than three years | Over three years but not more than five years | Over five years but not more than ten years | Over ten years | Total
As at 31 December 2021 | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Assets |  |  |  |  |  |  |  |  |  |  |
Cash and balances at central banks | 144,760 | 204 | — | — | — | — | — | — | — | — | 144,964
Cash collateral and settlement balances | 8,058 | 67,513 | — | — | — | — | — | — | — | — | 75,571
Loans and advances at amortised cost | 17,520 | 57,990 | 10,915 | 8,812 | 10,383 | 17,666 | 18,948 | 26,642 | 20,916 | 9,990 | 199,782
Reverse repurchase agreements and other similar secured lending | — | 4,503 | — | — | — | 184 | — | 294 | — | 1 | 4,982
Trading portfolio assets | 96,724 | — | — | — | — | — | — | — | — | — | 96,724
Financial assets at fair value through the income statement | 105 | 185,447 | 14,221 | 9,949 | 4,176 | 7,281 | 5,456 | 3,638 | 4,715 | 1,589 | 236,577
Derivative financial instruments | 234,195 | 36 | 1 | — | — | — | — | 153 | 15 | 9 | 234,409
Financial assets at fair value through other comprehensive income | — | 1,520 | 1,021 | 439 | 547 | 2,654 | 5,389 | 10,093 | 13,823 | 8,677 | 44,163
Other financial assets | 589 | 67 | 362 | — | — | — | — | — | — | — | 1,018
Total financial assets | 501,951 | 317,280 | 26,520 | 19,200 | 15,106 | 27,785 | 29,793 | 40,820 | 39,469 | 20,266 | 1,038,190
Other assets |  |  |  |  |  |  |  |  |  |  | 26,481
Total assets |  |  |  |  |  |  |  |  |  |  | 1,064,671
Liabilities |  |  |  |  |  |  |  |  |  |  |
Deposits at amortised cost | 186,425 | 57,965 | 12,328 | 1,618 | 2,468 | 356 | 2,023 | 1,670 | 2,714 | 19,194 | 286,761
Cash collateral and settlement balances | 1,849 | 54,570 | — | — | — | — | — | — | — | — | 56,419
Repurchase agreements and other similar secured borrowing | — | 13,258 | 2,014 | 297 | 1,993 | 1,921 | 3,966 | 5,666 | — | 87 | 29,202
Debt securities in issue | — | 10,931 | 10,342 | 4,514 | 3,009 | 69 | 1,049 | 558 | 2,113 | — | 32,585
Subordinated liabilities | — | 932 | — | — | 1,158 | 7,030 | 2,173 | 5,714 | 8,490 | 6,378 | 31,875
Trading portfolio liabilities | 50,116 | — | — | — | — | — | — | — | — | — | 50,116
Financial liabilities designated at fair value | 7,018 | 204,266 | 19,340 | 12,889 | 4,188 | 8,822 | 5,568 | 9,314 | 7,786 | 11,871 | 291,062
Derivative financial instruments | 226,920 | 4 | 22 | — | 2 | 121 | 151 | 279 | 111 | 381 | 227,991
Other financial liabilities | 44 | 3,143 | 4 | 4 | 4 | 133 | 19 | 43 | 117 | 14 | 3,525
Total financial liabilities | 472,372 | 345,069 | 44,050 | 19,322 | 12,822 | 18,452 | 14,949 | 23,244 | 21,331 | 37,925 | 1,009,536
Other liabilities |  |  |  |  |  |  |  |  |  |  | 2,443
Total liabilities |  |  |  |  |  |  |  |  |  |  | 1,011,979
Cumulative liquidity gap | 29,579 | 1,790 | (15,740) | (15,862) | (13,578) | (4,245) | 10,599 | 28,175 | 46,313 | 28,654 | 52,692

Note
a.2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details. The contractual maturity profile of financial liabilities designated at fair value has been restated to reflect the impact of the Over-issuance of Securities.
Securities issued by the Company in excess of the maximum aggregate offering price registered under the Company’s 2019 F-3 with a value of £6,997m have been
classified as "on demand".
Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 120

Expected maturity date may differ from the contractual date, to account for:
▪Trading portfolio assets and liabilities and derivative financial instrum ents which may not be held to maturity as part of the Barclays Bank Group’s
trading strategies.
▪Corporate and retail deposits, reported under deposits at amortised cost, are repayable on demand or at short notice on a contractual basis. In
practice, their behavioural maturity is typically longer than their contractual maturity, and therefore provide stable funding for the Barclays Bank
Group’s operations and liquidity needs.
▪Loans to corporate and retail customers, which are included within loans and advances at amortised cost and financial assets at fair value, may be
repaid earlier in line with terms and conditions of the contrac t.
▪Debt securities in issue, subordinated liabilities, and financial liabilities designated at fair v alue may inclu de early redemption features.
Contractual maturity of financial liabilities on an undiscounted basis
The following table presents the cash flows payable by the Barclays Bank Group under financial liabilities by remaining contractual maturities at the
balance sheet date. The amounts disclosed in the table are the contractual undiscounted cash flows of all financial liabilities (i.e. nominal values).
The balances in the below table do not agree directly to the balances in the consolidated balance sheet as the table incorporates all cash flows, on an
undiscounted basis, related to both principal as well as those associated with all future coupon payments.
Derivative financial instruments held for trading and trading portfolio liabilities are included in the on demand column at their fair value.

Contractual maturity of financial liabilities - undiscounted (audited)
Restated a
Barclays Bank Group | On demand | Not more than three months | Over three months but not more than six months | Over six months but not more than one year | Over one year but not more than three years | Over three years but not more than five years | Over five years but not more than ten years | Over ten years | Total
| £m | £m | £m | £m | £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |  |  |  |  |
Deposits at amortised cost | 196,398 | 62,524 | 18,918 | 10,943 | 1,302 | 621 | 1,113 | 376 | 292,195
Cash collateral and settlement balances | 3,013 | 93,986 | — | — | — | — | — | — | 96,999
Repurchase agreements and other similar secured borrowing | 256 | 9,587 | — | 946 | 1,184 | — | — | 252 | 12,225
Debt securities in issue | — | 27,234 | 12,615 | 10,301 | 4,932 | 1,732 | 4,773 | 651 | 62,238
Subordinated liabilities | — | 17 | 245 | 2,108 | 9,504 | 10,165 | 12,961 | 14,063 | 49,063
Trading portfolio liabilities | 72,460 | — | — | — | — | — | — | — | 72,460
Financial liabilities designated at fair value | 10,844 | 187,553 | 14,905 | 9,399 | 25,654 | 9,847 | 8,345 | 23,853 | 290,400
Derivative financial instruments | 288,398 | 19 | 60 | 4 | 244 | 131 | 71 | 722 | 289,649
Other financial liabilities | 56 | 7,179 | 21 | 43 | 251 | 139 | 180 | 24 | 7,893
Total financial liabilities | 571,425 | 388,099 | 46,764 | 33,744 | 43,071 | 22,635 | 27,443 | 39,941 | 1,173,122
As at 31 December 2021 |  |  |  |  |  |  |  |  |
Deposits at amortised cost | 201,501 | 41,632 | 12,380 | 4,818 | 996 | 240 | 1,048 | 261 | 262,876
Cash collateral and settlement balances | 2,951 | 76,096 | — | — | — | — | — | — | 79,047
Repurchase agreements and other similar secured borrowing | 20 | 5,022 | — | — | 7,798 | — | — | 146 | 12,986
Debt securities in issue | — | 18,293 | 12,168 | 9,075 | 3,879 | 1,832 | 2,938 | 744 | 48,929
Subordinated liabilities | — | 1,061 | 0 | 1,404 | 9,328 | 5,917 | 8,918 | 8,752 | 35,380
Trading portfolio liabilities | 53,291 | — | — | — | — | — | — | — | 53,291
Financial liabilities designated at fair value | 21,339 | 158,249 | 16,887 | 13,945 | 12,939 | 8,043 | 7,544 | 21,098 | 260,044
Derivative financial instruments | 255,471 | 4 | 22 | 2 | 276 | 291 | 122 | 449 | 256,637
Other financial liabilities | 87 | 3,658 | 19 | 38 | 526 | 122 | 208 | 29 | 4,687
Total financial liabilities | 534,660 | 304,015 | 41,476 | 29,282 | 35,742 | 16,445 | 20,778 | 31,479 | 1,013,877

Note
a.2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details. The contractual maturity profile of financial liabilities designated at fair value has been restated to reflect the impact of the Over-issuance of Securities.
Securities issued by the Company in excess of the maximum aggregate offering price registered under the Company’s 2019 F-3 with a value of £6,997m h ave been
classified as "on demand".
Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 121

Contractual maturity of financial liabilities - undiscounted (audited)
Restated a
| On demand | Not more than three months | Over three months but not more than six months | Over six months but not more than one year | Over one year but not more than three years | Over three years but not more than five years | Over five years but not more than ten years | Over ten years | Total
Barclays Bank PLC | £m | £m | £m | £m | £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |  |  |  |  |
Deposits at amortised cost | 176,787 | 79,975 | 16,077 | 9,485 | 3,733 | 3,683 | 3,130 | 38,304 | 331,174
Cash collateral and settlement balances | 1,712 | 63,698 | — | — | — | — | — | — | 65,410
Repurchase agreements and other similar secured borrowing | — | 15,857 | 617 | 2,388 | 6,662 | 1,759 | — | 252 | 27,535
Debt securities in issue | — | 16,186 | 10,668 | 8,917 | 1,306 | 432 | 4,214 | — | 41,723
Subordinated liabilities | — | — | 245 | 1,890 | 9,211 | 10,164 | 12,936 | 14,019 | 48,465
Trading portfolio liabilities | 52,093 | — | — | — | — | — | — | — | 52,093
Financial liabilities designated at fair value | 24 | 231,656 | 15,082 | 8,776 | 22,178 | 11,443 | 8,006 | 21,381 | 318,546
Derivative financial instruments | 249,760 | 14 | 60 | 4 | 244 | 131 | 70 | 722 | 251,005
Other financial liabilities | 29 | 6,411 | 9 | 17 | 214 | 63 | 118 | 9 | 6,870
Total financial liabilities | 480,405 | 413,797 | 42,758 | 31,477 | 43,548 | 27,675 | 28,474 | 74,687 | 1,142,821
As at 31 December 2021 |  |  |  |  |  |  |  |  |
Deposits at amortised cost | 186,425 | 57,965 | 12,328 | 4,086 | 2,400 | 1,785 | 2,949 | 25,785 | 293,723
Cash collateral and settlement balances | 1,849 | 54,570 | — | — | — | — | — | — | 56,419
Repurchase agreements and other similar secured borrowing | — | 13,258 | 2,014 | 2,290 | 6,041 | 5,740 | — | 146 | 29,489
Debt securities in issue | — | 10,930 | 10,355 | 7,502 | 1,195 | 592 | 2,380 | — | 32,954
Subordinated liabilities | — | 988 | — | 1,245 | 9,251 | 5,917 | 8,918 | 8,752 | 35,071
Trading portfolio liabilities | 50,116 | — | — | — | — | — | — | — | 50,116
Financial liabilities designated at fair value | 7,018 | 204,409 | 19,369 | 12,657 | 17,956 | 10,014 | 8,387 | 19,544 | 299,354
Derivative financial instruments | 226,920 | 4 | 22 | 2 | 276 | 291 | 122 | 468 | 228,105
Other financial liabilities | 44 | 3,147 | 7 | 14 | 169 | 58 | 134 | 15 | 3,588
Total financial liabilities | 472,372 | 345,271 | 44,095 | 27,796 | 37,288 | 24,397 | 22,890 | 54,710 | 1,028,819

Note
a.2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details. The contractual maturity profile of financial liabilities designated at fair value has been restated to reflect the impact of the Over-issuance of Securities.
Securities issued by the Company in excess of the maximum aggregate offering price registered under the Company’s 2019 F-3 with a value of £6,997m have been
classified as "on demand".
Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 122

Maturity of off-balance sheet commitments received and given
The table below presents the maturity split of the Barclays Bank Group’s off-balance sheet commitments received and given at the balance sheet date.
The amounts disclosed in the table are the undiscounted cash flows (i.e. nominal values) on the basis of earliest opportunity at which they are available.

Maturity analysis of off-balance sheet commitments received (audited)
| On demand | Not more than three months | Over three months but not more than six months | Over six months but not more than nine months | Over nine months but not more than one year | Over one year but not more than two years | Over two years but not more than three years | Over three years but not more than five years | Over five years but not more than ten years | Over ten years | Total
Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |  |  |  |  |  |  |
Guarantees, letters of credit and credit insurance | 7,222 | 92 | 102 | 10 | 46 | 16 | 37 | 76 | 96 | 1 | 7,698
Other commitments received | 7,473 | — | — | — | — | — | — | — | — | — | 7,473
Total off-balance sheet commitments received | 14,695 | 92 | 102 | 10 | 46 | 16 | 37 | 76 | 96 | 1 | 15,171
As at 31 December 2021 |  |  |  |  |  |  |  |  |  |  |
Guarantees, letters of credit and credit insurance | 7,258 | 31 | 21 | 10 | 12 | 4 | 12 | 83 | 65 | 19 | 7,515
Other commitments received | 455 | — | — | — | — | — | — | — | — | — | 455
Total off-balance sheet commitments received | 7,713 | 31 | 21 | 10 | 12 | 4 | 12 | 83 | 65 | 19 | 7,970

Maturity analysis of off-balance sheet commitments given (audited)
| On demand | Not more than three months | Over three months but not more than six months | Over six months but not more than nine months | Over nine months but not more than one year | Over one year but not more than two years | Over two years but not more than three years | Over three years but not more than five years | Over five years but not more than ten years | Over ten years | Total
Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |  |  |  |  |  |  |
Contingent liabilities and financial guarantees | 25,698 | 86 | 14 | 1 | — | 1 | — | — | — | — | 25,800
Documentary credits and other short-term trade related transactions | 1,740 | 3 | 5 | — | — | — | — | — | — | — | 1,748
Standby facilities, credit lines and other commitments | 333,192 | — | — | — | — | 37 | — | — | — | — | 333,229
Total off-balance sheet commitments given | 360,630 | 89 | 19 | 1 | — | 38 | — | — | — | — | 360,777
As at 31 December 2021 |  |  |  |  |  |  |  |  |  |  |
Contingent liabilities and financial guarantees | 23,607 | 135 | 4 | 0 | 0 | 0 | — | — | — | — | 23,746
Documentary credits and other short-term trade related transactions | 1,582 | 2 | — | — | — | — | — | — | — | — | 1,584
Standby facilities, credit lines and other commitments | 282,867 | — | — | — | — | — | — | — | — | — | 282,867
Total off-balance sheet commitments given | 308,056 | 137 | 4 | — | — | — | — | — | — | — | 308,197

Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 123

Maturity analysis of off-balance sheet commitments received (audited)
| On demand | Not more than three months | Over three months but not more than six months | Over six months but not more than one year | Over one year but not more than three years | Over three years but not more than five years | Over five years but not more than ten years | Over ten years | Total
Barclays Bank PLC | £m | £m | £m | £m | £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |  |  |  |  |
Guarantees, letters of credit and credit insurance | 7,199 | 3 | 1 | 1 | 29 | 2,147 | 1,696 | 1 | 11,077
Other commitments received | 6,976 | — | — | — | — | — | — | — | 6,976
Total off balance sheet commitments received | 14,175 | 3 | 1 | 1 | 29 | 2,147 | 1,696 | 1 | 18,053
As at 31 December 2021 |  |  |  |  |  |  |  |  |
Guarantees, letters of credit and credit insurance | 7,128 | 3 | 2 | 4 | 10 | 9 | 657 | 1 | 7,814
Other commitments received | — | — | — | — | — | — | — | — | —
Total off balance sheet commitments received | 7,128 | 3 | 2 | 4 | 10 | 9 | 657 | 1 | 7,814

Maturity analysis of off-balance sheet commitments given (audited)
| On demand | Not more than three months | Over three months but not more than six months | Over six months but not more than nine months | Over nine months but not more than one year | Over one year but not more than two years | Over two years but not more than three years | Over three years but not more than five years | Over five years but not more than ten years | Over ten years | Total
Barclays Bank PLC | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |  |  |  |  |  |  |
Contingent liabilities and financial guarantees | 62,101 | 86 | 14 | 1 | — | 1 | — | — | — | — | 62,203
Documentary credits and other short-term trade related transactions | 1,678 | 3 | 5 | — | — | — | — | — | — | — | 1,686
Standby facilities, credit lines and other commitments | 205,612 | — | — | — | — | 37 | — | — | — | — | 205,649
Total off-balance sheet commitments given | 269,391 | 89 | 19 | 1 | — | 38 | — | — | — | — | 269,538
As at 31 December 2021 |  |  |  |  |  |  |  |  |  |  |
Contingent liabilities and financial guarantees | 55,635 | 135 | 4 | — | — | — | — | — | — | — | 55,774
Documentary credits and other short-term trade related transactions | 1,460 | 2 | — | — | — | — | — | — | — | — | 1,462
Standby facilities, credit lines and other commitments | 193,641 | — | — | — | — | — | — | — | — | — | 193,641
Total off-balance sheet commitments given | 250,736 | 137 | 4 | — | — | — | — | — | — | — | 250,877

Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 124

Capital risk
All disclosures in this section, (pages 125 to 126), are unaudited unless otherwise stated.
Overview
Barclays Bank PLC is currently regulated by the PRA on a solo-consolidated basis. Barclays Bank PLC solo-consolidated comprises Barclays Bank PLC
plus certain additional subsidiaries, whose inclusion within the consolidation is subject to PRA approval. The disclosures below provide key capital
metrics for Barclays Bank PLC solo-consolidated with further information on its risk profile to be included in the Barclays PLC Pillar 3 Report 2022, due
to be published on 15 Februar y 2023, and which will be available at home.barclays/investor-relations/reports-and-events/annual-reports.
Significant regulatory updates in the period
On 1 January 2022 the PRA’s implementation of Basel III standards took effect including the introduction of the Standardised Approach for Counterparty
Credit Risk (SA-CCR), which replaces the Current Exposure Method (CEM) for Standardised derivative exposures as a more risk sensitive approach. In
addition, the PRA also implemented IRB roadmap changes which include revisions to the criteria for definition of default, probability of default (PD) and
loss given default (LGD) estimation to ensure supervisory consistency and increase transparency of IRB models.
From 1 January 2022, UK banks became subject to a single UK leverage ratio requirement meaning that the CRR leverage ratio no longer applies. Under
the revised UK leverage ratio framework, central bank claims have been excluded from the UK leverage exposure measure where they are matched by
qualifying liabilities (rather than deposits).
On 20 December 2022, the PRA granted permission for leverage minimum requirements to be set at the sub-consolidated level for Barclays Bank PLC
effective from 1 January 2023. This replaced the individual requirement that was due to be set at that time. The Barclays Bank PLC sub-consolidated
leverage ratio will be monitored and managed above minimum requirements in accordance with Barclays Bank PLC’s risk management strategy. As a
result, the Barclays Bank PLC leverage disclosures in future quarterly Pillar 3 reports, half year results announcements and Annual Reports will reflect the
Barclays Bank PLC sub-consolidated basis. Capital requirements remain set at the Barclays Bank PLC solo-consolidated level.
References to CRR, as amended by CRR II, mean the ca pital regulatory requirements, as they form part of domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended.
Impact of Over-issuance of Securities in the US
Basis of preparation
In March 2022, Barclays Bank PLC became aware that it had issued securities materially in excess of the amount it had registered with the SEC under
Barclays Bank PLC’s 2019 F-3. Subsequently, Barclays Bank PLC became aware that securities had also been issued in excess of the amount it had
registered with the SEC under the Predecessor Shelf. The securities issued in excess of the registered amount included structured products and
exchange traded notes. As these securities were not issued in compliance with the Securities Act, a right of rescission arose for certain purchasers of the
securities. A portion of the costs associated with the right of rescission (as defined in Note 1a Rest atement of financial statements on page 180) was
attributable to the financial statements for the year ended 31 December 2021, resulting in the restatement of the 2021 figures in the tables below.
Prior to the restatement, litigation and conduct charges in the income statement in relation to 2021 were underreported by £170m (post-tax). Due to
the restatement total CET1 decreased by £200m from £24,128m to £23,928m, inclusive of the impact on regulatory threshold deductions. This resulted
in reductions in the transitional CET1 ratio (13.0% to 12.9%), fully loaded CET1 ratio (12.7% to 12.6%), T1 ratio (17.6% to 17.5%) and total capital ratio
(20.6% to 20.5%). Leverage exposure increased £1.9bn to recognise, on a regulatory basis, the potential commitment relating to th e Rescission Offer.
The CRR leverage ratio remained unchanged at 3.7%.
As at 31 December 2022, Barclays Bank PLC solo-consolidated CET1 ratio was 12.7% which is above its minimum regulatory requirement of 9.9%.

Capital ratios b,c |  |
|  | Restated a
As at 31 December | 2022 | 2021
CET1 | 12.7% | 12.9%
Tier 1 (T1) | 16.7% | 17.5%
Total regulatory capital | 20.8% | 20.5%

Capital resources (audited) |  |
|  | Restated a
| 2022 | 2021
As at 31 December | £m | £m
CET1 capital | 25,907 | 23,928
T1 capital | 34,139 | 32,395
Total regulatory capital | 42,321 | 37,954
Total risk weighted assets (RWAs) (unaudited) | 203,833 | 185,467

Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 125

UK Leverage ratio b,d |  |
|  | Restated a
| 2022 | 2021
As at 31 December | £m | £m
UK leverage ratio | 4.6% | 3.7%
T1 capital | 34,139 | 32,395
UK leverage exposure | 742,730 | 883,371

Notes
a Capital and leverage metrics as at 31 December 2021 have been restated. See Basis of preparation on page 125 for further details.
b Capital, RWAs and leverage are calculated applying the transitional arrangements of the CRR as amended by CRR II. This includes IFRS 9 transitional arrangements and the
grandfathering of CRR II non-compliant capital instruments. December 2021 comparatives include the grandfathering of CRR non-compliant capital instruments.
c The fully loaded CET1 ratio was 12.6%, with £25.6bn of CET1 capital and £203.5bn of RWAs, calculated without applying the transitional arrangements of the CRR as
amended by CRR II.
d Prior period comparatives are on a CRR leverage basis as Barclays Bank PLC solo-consolidated was not subject to the UK Leverage framework until 1 January 2022. Had the
UK framework been applied as at 31 December 2021, the Barclays Bank PLC solo-consolidated UK leverage exposure would have been £767.6bn and the UK Leverage ratio
would have been 4.1%.
Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 126

Foreign exchange risk (audited)
The Barclays Bank Group is exposed to two sources of foreign exchange risk.
a)Transactional foreign currency exposure
Transactional foreign currency exposures represent exposures on banking assets and liabilities, denominated in currencies other than the functional
currency of the transacting entity.
The Barclays Bank Group’s risk management policies are designed to prevent the holding of significant open positions in foreign currencies outside the
trading portfolio which is monitored through VaR.
Banking book transactional foreign exchange risk is monitored on a daily basis by the market risk function and minimised by the businesses.
b)Translational foreign exchange exposure
The Barclays Bank Group's investments in overseas subsidiaries and branches create capital resources denominated in foreign currencies, principally
USD and EUR. Changes in the GBP value of the net investments due to foreign currency movements are captured in the currency translation reserve,
resulting in a movement in shareholders’ equity.

Functional currency of operations (audited)
| Foreign currency net investments | Borrowings which hedge the net investments | Derivatives which hedge the net investments | Structural currency exposures pre- economic hedges | Economic hedges | Remaining structural currency exposures
| £m | £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |  |
USD | 27,523 | (5,973) | (2,086) | 19,464 | (8,376) | 11,088
EUR | 9,673 | (2,395) | (3) | 7,275 | (283) | 6,992
JPY | 689 | — | (197) | 492 | — | 492
Other | 3,010 | — | (1,602) | 1,408 | (279) | 1,129
Total | 40,895 | (8,368) | (3,888) | 28,639 | (8,938) | 19,701
As at 31 December 2021 |  |  |  |  |  |
USD | 26,023 | (5,512) | (2,356) | 18,155 | (7,111) | 11,044
EUR | 8,342 | (1,324) | (3) | 7,015 | (267) | 6,748
JPY | 614 | (97) | — | 517 | — | 517
Other | 2,085 | — | (64) | 2,021 | — | 2,021
Total | 37,064 | (6,933) | (2,423) | 27,708 | (7,378) | 20,330

Economic hedges relate to exposures arising on foreign currency denominated preference share and AT1 instruments. These instruments are
accounted for at historical cost under IFRS and do not qualify as hedges for accounting purposes. The gain or loss arising from changes in the GBP value
of these instruments is recognised on redemption in retained earnings.
During 2022, total structural currency exposure net of hedging instruments decreased by £0.6b n to £19.7b n (2021: £20.3b n). Foreign currency
net investments incr eased by £3.8b n to £40.9b n (2021: £37.1b n) driven predominantly by a £1.5b n increase in US dollars, £1.3b n increase in Euro and
£1.0b n increase in other currencies. The hedges associated with these foreign currency investments increased by £2.9b n to £12.3b n (2021: £9.4b n).
Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 127

Pension risk review
The UK Retirement Fund (UKRF) represents approximately 96% (2021: 97%) of t he Barclays Bank Group’s total retirement benefit obligations globally.
As such this risk review section focuses exclusively on the UKRF. The UKRF is closed to new entrants and there is no new final salary benefit being
accrued. Existing active members accrue a combination of a cash balance benefit and a defined contribution element. Pension risk arises as the market
value of the pension fund assets may decline, investment returns may reduce or the estimated value of the pension liabilities may increa se.
Assets
The Trustee Board of the UKRF defines its overall long-term investment strategy with investments across a broad range of asset classes. This results in
an appropriate mix of return seeking assets as well as liability matching assets to better match future pension obligations. The two largest market risk
exposures within the asset portfolio come from the credit portfolio and growth assets. The split of scheme assets is shown within Note 31 to the
financial statements. The fair value of the UKRF assets wa s £24.7b n as at 31 December 2022 (2021: £34.7b n).
Liabilities
The UKRF retirement benefit obligations are a series of future cash flows with relatively long duration. On an IAS 19 basis these cash flows are sensitive
to changes in the expected long-term price inflation rate (RPI) and the discount rate (GBP AA corporate bond yield):
▪An increase in long-term expected inflation corresponds to an increase in liabilities.
▪A decrease in the discount rate corresponds to an increase in liabilities.
Pension risk is generated through the Barclays Bank Group’s defined benefit schemes and this risk is set to reduce over time as the main defined benefit
scheme is closed to new entrants. The chart below outlines the shape of the UKRF’s liability cash flow profile as at 31 December 2022 that takes
account of the future inflation indexing of payments to beneficiaries. The majority of the cash flows (approximately 95%) fall between 0 and 40 years,
peaking between 11 and 20 years and reducing thereafter. The shape may vary depending on changes to inflation and longevity expectations and any
members who elect to transfer out. Transfers out will bring forward the liability cash flows.
For more detail on the UKRF’s financial and demographic valuation assumptions see Note 31 to the financial statements.
The graph below shows the evolution of the UKRF’s net IAS 19 position over the last two years. During 2022 the increase in the IAS 19 pension surplus
was primarily driven by scheduled deficit reduction contributions, including payments made to unwind Heron transactions as explained in Note 31 to
the financial statements. The significant increase in interest rates over 2022 has had a broadly neutral impact on the net funding position. Benefit
obligation reductions due to higher discount rates have been broadly offset by the changes in the fair value of scheme assets. Higher realised inflation
over the year had a negative impact by increasing the projected liabilities, which was partially offset by updates to the demographic assumptions.
Refer to Note 31 to the financial statements for the sensitivity of the UKRF to changes in key assumptions.

Proportion of liability cash flows (%)

n | 0-10 years | 28.62
n | 11-20 years | 31.35
n | 21-30 years | 23.15
n | 31-40 years | 12.1
n | 41-50 years | 4.28
n | 51+ years | 0.5

IAS 19 pension position from 2020 to 2022 (£bn)

6
5
4
3
2
1
0

Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 128

Risk measurement
In line with the Barclays Bank Group's risk management framework the assets and liabilities of the UKRF are modelled within a VaR framework to show
the volatility of the pension position at a total portfolio level. This enables the risks, diversification and liability matching characteristics of the UKRF
obligations and investments to be adequately captured. VaR is measured and monitored on a monthly basis. Risks are reviewed and reported regularly
at forums including the Barclays PLC Board Risk Committee, the Barclays Group Risk Committee and the Pension Executive Board. The VaR model takes
into account the valuation of the liabilities on an IAS 19 basis (see Note 31 to the financial statements). The Trustee receives quarterly VaR measures on
a funding basis.
The pension liability is also sensitive to post-retirement mortality assumptions which are reviewed regularly (See Note 31 to the financial statements).
To mitigate part of this risk the UKRF has entered into a longevity swap hedging approximately three quarters of current pensioner liabilities.
In addition, the impact of pension risk to the Barclays Bank Group is taken into account as part of the stress testing process. Stress testing is performed
internally on at least an annual basis. The UKRF exposure is also included as part of regulatory stress tests.
The Barclays Bank Group's defined benefit pension schemes affect capital in two ways:
•An IAS 19 deficit is treated as a liability on the Barclays Bank Group’s balance sheet. Movement in a deficit due to remeasurements, including
actuarial losses, are recognised immediately through Other Comprehensive Income and as such reduce shareholders’ equity and CET1 capital. An
IAS 19 surplus is treated as an asset on the balance sheet and increases shareholders’ equity; however, it is deducted for the purposes of
determining CET1 capital.
•In the Barclays Bank Group’s statutory balance sheet an IAS 19 surplus or deficit is partially offset by a deferred tax liability or asset respectively.
These may or may not be recognised for calculating CET1 capital depending on the overall deferred tax position of the Barclays Bank Group at the
particular time.
Pension risk is taken into account in the Pillar 2A capital assessment undertaken by the PRA at least annually. The Pillar 2A requirement forms part of
the Barclays Bank Group’s Overall Capital Requirement for CET1 capital, Tier 1 capital and total capital. More detail on minimum regulatory
requirements can be found in the Overall capital requirements section.
Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 129

Interest rate risk in the banking book
All disclosures in this section, (pages 130 to 131), are unaudited unless otherwise stated.
Overview
The treasury and capital risk framework covers interest rate sensitive exposures held in the banking book, mostly relating to accrual accounted and
FVOCI instruments. The potential volatility of net interest income (NII) is measured by an Annual Earnings at Risk (AEaR) metric which is monitored
regularly and reported to senior management and the Barclays Bank PLC Board Risk Committee as part of the limit monitoring framework.
Summary of performance in the period
NII sensitivity to a -25bps shock to rates has decreased year on year due to reduced margin compression exposure driven by actual and expected
market rate increases.
Key metrics

-£29m

AEaR across the Barclays Bank Group from a -25 bps shock to forward interest rate curves.
Net interest income sensitivity
The table below shows a sensitivity analysis on pre-tax net interest income for non-traded financial assets and liabilities, including the effect of any
hedging. This analysis is not a forward guidance on NII and is intended as a quantification of risk exposure utilising the Net Interest Income (NII) metric
as described on page 162 of the Barclays PLC Pillar 3 Report 2022(unaudited), which includes documentation of the main model assumptions.

Net Interest Income sensitivity (AEaR) by currency (audited) | 2022 | 2021
| +25 basis points | -25 basis points | +25 basis points | -25 basis points
Barclays Bank Group | £m | £m | £m | £m
GBP | (6) | 4 | 21 | (37)
USD | 38 | (41) | 55 | (59)
EUR | 4 | (4) | (5) | (4)
Other currencies | (11) | 12 | (3) | 1
Total | 25 | (29) | 68 | (99)

Net Interest Income sensitivity (AEaR) by currency (audited) | 2022 | 2021
| +25 basis points | -25 basis points | +25 basis points | -25 basis points
Barclays Bank PLC | £m | £m | £m | £m
GBP | (6) | 5 | 23 | (39)
USD | 22 | (23) | 48 | (52)
EUR | 0 | (1) | (9) | 6
Other currencies | (15) | 15 | (5) | 3
Total | 1 | (4) | 57 | (82)

Change in NII sensitivity to both shocks is due to the current and forward implied rate levels which has removed the impact of embedded floors on
product margins.
Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 130

Analysis of equity sensitivity
The analysis of equity sensitivity table measures the overall impact of a +/- 25bps movement in interest rates on retained earnings, FVOCI, cash flow
hedge reserves and pensions. For non-NII items a DV01 metric is used, which is an indicator of the shift in value for a 1bp movement in the yield curve.

Analysis of equity sensitivity (audited) | 31 December 2022 | 31 December 2021
|  |  |  | Restated a
| +25 basis points | -25 basis points | +25 basis points | -25 basis points
Barclays Bank Group | £m | £m | £m | £m
Net interest income | 25 | (29) | 68 | (99)
Taxation effects on the above | (4) | 5 | (12) | 18
Effect on profit for the year | 21 | (24) | 56 | (81)
As percentage of net profit after tax | 0.5% | (0.5%) | 1.2% | (1.8%)
Effect on profit for the year (per above) | 21 | (24) | 56 | (81)
Fair value through other comprehensive income reserve | (367) | 368 | (449) | 380
Cash flow hedge reserve | (625) | 625 | (626) | 626
Taxation effects on the above | 268 | (268) | 290 | (272)
Effect on equity | (703) | 701 | (729) | 653
As percentage of equity | (1.2%) | 1.2% | (1.3%) | 1.2%

Analysis of equity sensitivity (audited) | 31 December 2022 | 31 December 2021
| +25 basis points | -25 basis points | +25 basis points | -25 basis points
Barclays Bank PLC | £m | £m | £m | £m
Net interest income | 1 | (4) | 57 | (82)
Taxation effects on the above | — | 1 | (10) | 15
Effect on profit for the year | 1 | (3) | 47 | (67)
As percentage of net profit after tax | 0.0% | (0.1%) | 1.3% | (1.9%)
Effect on profit for the year (per above) | 1 | (3) | 47 | (67)
Fair value through other comprehensive income reserve | (367) | 368 | (450) | 379
Cash flow hedge reserve | (576) | 576 | (587) | 587
Taxation effects on the above | 255 | (255) | 280 | (261)
Effect on equity | (687) | 686 | (710) | 638
As percentage of equity | (1.3%) | 1.3% | (1.3%) | 1.2%

Movements in the FVOCI reserve impact CET1 capital. However, movements in the cash flow hedge reserve and pensions remeasurement reserve
recognised in FVOCI do not affect CET1 capital.
Volatility of the FVOCI portfolio in the liquidity pool
Changes in value of FVOCI exposures flow directly through capital via the FVOCI reserve. The volatility in the value of the FVOCI investments in the
liquidity pool is captured and managed through a value measure rather than an earning measure, i.e. non-traded market risk VaR.
Although the underlying methodology to calculate the non-traded VaR is identical to the one used in traded management VaR, the two measures are
not directly comparable. The non-traded VaR represents the volatility to capital driven by the FVOCI exposures. These exposures are in the banking
book and do not meet the criteria for trading book treatment.

Analysis of volatility of the FVOCI portfolio in the liquidity pool |  |
| 2022 | 2021
| Average | High | Low | Average | High | Low
For the year ended 31 December | £m | £m | £m | £m | £m | £m
Non-traded market value at risk (daily, 95%) | 40 | 51 | 31 | 47 | 57 | 34

Value at risk decreased in the first half of the year driven by a reduction in interest rate risk positioning. This was partially offset by an increase in H2 due
to elevated market volatility.
Risk review
Risk performance
Treasury and Capital risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 131

All disclosures in this section, (pages 132 - 133), are unaudited unless otherwise stated.
Overview
Operational risks are inherent in the Barclays Bank Group’s business activities and it is not cost effective or possible to attempt to eliminate all
operational risks. The Operational Risk Framework is therefore focused on identifying operational risks, assessing them and managing them within the
Barclays Bank Group’s approved risk appetite.
The Operational Risk principal risk comprises the following risks: Change Delivery Management Risk; Data Management Risk; Financial Reporting Risk;
Fraud Risk; Information Security Risk; Operational Recovery Planning Risk; Payments Process Risk; People Risk; Physical Security Risk; Premises Risk;
Risk Reporting; Supplier Risk; Tax Risk; Technology Risk and Transaction Operations Risk. The operational risk profile is also informed by a number of
connected risks: Cyber; Data; and Resilience. These themes represent threats to the Barclays Bank Group that extend across multiple risk types, and
therefore require an integrated risk management approach.
For definitions of these risks refer to the Management of Operational Risk section of the Barclays PLC Pillar 3 Report 2022. To provide complete
coverage of the potential adverse impacts on the Barclays Bank Group arising from operational risk, the operational risk taxonomy extends beyond the
risks listed above to cover operational risks associated with other principal risks too.
This section provides an analysis of the Barclays Bank Group’s operational risk profile, including events above the Barclays Bank Group’s reportable
threshold, which have had a financial impact in 2022. The Barclays Bank Group’s operational risk profile is informed by bottom-up risk assessments
undertaken by each business unit and top-down qualitative review for each risk type. Fraud, Transaction Operations, Information Security and
Technology continue to be highlighted as key operational risk exposures.
For information on conduct risk events, see the conduct risk section.
Summary of performance in the period
During 2022, total operational risk losses a increased to £72m (2021: £55m) and the number of recorded events for 2022 increased to 923 from 580
events recorded during the prior year. The increase in events year-over-year is largely driven by Fraud losses in Barclays US Consumer Bank exceeding
forecasts. This is due to a shift in fraud attack types that have a lower recoverability rate, fraud operational challenges and increased sales volumes. The
total operational risk losses for the year were mainly driven by events falling within the Execution, Delivery & Process Management and External Fraud
BASEL Event Type categories, which tend to be high volume but low impact events.
Key metrics

80%
of the Barclays Bank Group’s net reportable operational risk events had a loss value of £50,000 or less

34%
of events by number are due to Execution, Delivery and Process Management

65%
of events by number are due to External Fraud

79%
of losses are from events aligned to Execution, Delivery and Process Management

Operational risk profile
Within operational risk, there are a large number of small value risk events. In 2022, 80% (2021: 70%) of the Barclays Bank Group’s reportable
operational risk events by volume had a value of less than £50,000 each. Cumulatively, events under this £50,000 threshold accounted for only 18%
(2021: 15%) of the Barclays Bank Group’s total net operational risk losses. A small proportion of operational risk events have a material impact on the
financial results of the Barclays Bank Group.
Risk review
Risk performance
Operational risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 132

The analysis below presents the Bar clays Bank Group’s o perational risk events by Basel event category:
Note
a The data disclose d includes operational ris k losses for reportable events impacting the Barclays Bank Group business areas, having impact of > £10,000 and excludes Gain
or Insurance Recovery impacts, events that are Conduct or Legal risk, aggregate and boundary events. A boundary event is an operational risk event that results in a credit
risk impact. Due to the nature of risk events that keep evolving, data for prior year losses are updated.
▪Execution, Delivery and Process Management impacts during 2022 increased to £56m (2021: £45m) and accounted for 79% of total operational risk
losses (2021: 81%). The events in this category are typical of the banking industry as a whole where high volumes of transactions are processed on a
daily basis, mapping mainly to Barclays Transaction Operations risk type. The overall frequency of events in this category in 2022 decreased to 34%
of total events by volume (2021: 52%).
▪External Fraud impacts during 2022 increased to £15m (2021: £8m) and accounted for 21% of total events by value (2021: 15%). Volume of events
increased to 598 accounting for 65% of total event volume (2021: 240 / 41%). In this category, high volume, low value events are driven by
transactional fraud often related to debit and credit card usage.
Investment continues to be made in improving the control environment across the Barclays Bank Group. Particular areas of focus include new and
enhanced fraud prevention systems and tools to combat the increasing level of fraud attempts being made whilst minimising disruption to genuine
transactions. Fraud remains an industry wide threat and the Barclays Bank Group continues to work closely with external partners on various prevention
initiatives. Additionally, the Barclays Bank Group continues to invest in its processing infrastructure to manage the risk of processing errors as well as
ensuring scalability of operations.
Operational Resilience remains a key area of focus for the Barclays Bank Group, having been reinforced in recent years due to potential operational
disruption from the COVID-19 pandemic. The Barclays Bank Group continues to strengthen its resilience approach across its most important business
services to improve recoverability and assurance thereof by reviewing scenarios based on current global climates.
Operational risk associated with cybersecurity remains a top focus for the Barclays Bank Group. The sophistication of threat actors continues to grow as
noted by multiple external risk events observed throughout the year. Ransomware attacks across the global Barclays supplier base were observed and
we worked closely with the affected suppliers to manage potential impacts to the Barclays Bank Group and its clients and customers. The Barclays Bank
Group’s cybersecurity events were managed within its risk tolerances and there were no material loss events associated with cybersecurity recorded
within the event categories above.
For further information, refer to the operational risk management section.
Risk review
Risk performance
Operational risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 133

All disclosures in these model risk, conduct risk, reputation risk and legal risk sections on pages 134 to 135 are unaudited unless otherwise stated.
Model risk
The Barclays Bank Group is committed to continuously improving model risk management and made a number of enhancements in 2022, including:
•I mproved transpar ency and oversight of model risk through implementation of upgrades to model risk governance structure.
•Upgraded model risk standards to improve readability, consistency and framework cohesiveness.
•Refreshed the model risk controls suite, providing additional clarity on several controls and ensuring evidentiary requirements are aligned to
MRM’s BAU processes.
•Enhanced the Group Model Risk Appetite Statement, incorporating model quality and uncertainty around a model’s output.
•Strengthened validation practices through expansion of model-level validation procedures, implementation of an on-going validation training
program and embedment of a validation quality assurance process.
•Executed on hiring strategy by expanding the model risk team to support a wider range of model validation demand and newly emerging model
risks.
•Progressed model inception validation by bringing more than 95% of model risk (by model output) into compliance with the model risk
management framework.
Conduct risk
The Barclays Bank Group is committed to continuing to drive the right culture throughout all levels of the organisation. The Barclays Bank Group will
continue to enhance effective management of conduct risk and appropriately consider the relevant tools, governance and management information in
decision-making processes. Focus on management of conduct risk is ongoing and, alongside other relevant business and control management
information, the Barclays Bank Group conduct risk dashboards is a key component of this.
The Barclays Bank Group continues to review the role and impact of conduct risk events and issues in remuneration decisions at both the individual and
business level.
Throughout 2022, the Barclays Bank Group maintained focus on new and heightened inherent conduct risks, including those relating to the cost of
living crisis, and continues to monitor these on an ongoing basis.
Businesses have continued to assess the potential customer, client and market impacts of strategic change. As part of the 2022 Medium-Term Planning
Process and associated Strategic Risk Assessment, material conduct risks associated with strategic and financial plans were assessed.
Throughout 2022, conduct risks were raised by each business area for consideration by the Barclays PLC and Barclays Bank PLC Board Risk
Committees. The Committees reviewed the risks raised and whether management’s proposed actions were appropriate to mitigate the risks effectively.
The Barclays Bank Group continued to incur costs in relation to litigation and conduct matters, please refer to Note 25 to the financial statements
(Legal, competition and regulatory matters) and Note 23 to the financial statements (Provisions), for further details. Related costs include customer
redress and remediation, as well as fines and settlements. Resolution of these litigation and conduct matters remains a necessary and important part of
delivering the Barclays Bank Group’s strategy and an ongoing commitment to improve oversight of culture and conduct.
The Barclays Bank PLC Board Risk Committee and senior management received conduct risk dashboards setting out key indicators in relation to
conduct risk. These continue to be evolved and enhanced to allow effective oversight and decision-making. Work is ongoing to enhance the Conduct
Risk Control Environment in a timely and effective manner to ensure the Group operates within Risk Appetite. The tolerance adherence is assessed by
the business through key indicators and reported to the Barclays Bank PLC Board Risk Committee as part of the conduct risk dashboard governance
process.
The Barclays Bank Group remains focused on continuous improvements being made to manage risk effectively with an emphasis on enhancing
governance and management information to identify risk at earlier stages.
Reputation risk
The Barclays Bank Group is committed to continuing to drive the right culture throughout all levels of the organisation. The Barclays Bank Group will
continue to enhance effective management of reputation risk and appropriately consider the relevant tools, governance and management information
in decision-making processes.
The Barclays Bank PLC Board considers reputation risks raised by businesses. The Board has also considered whether management’s proposed actions
have been appropriate to mitigate the risks effectively.
The Barclays Bank Group continued to incur costs in relation to litigation and conduct matters, please refer to Note 25 to the financial statements
(Legal, competition and regulatory matters) and Note 23 to the financial statements (Provisions), for further details. Related costs include customer
redress and remediation, as well as fines and settlements. Resolution of these matters remain an ongoing commitment to improve oversight of culture
and conduct and management of reputation risks.
The Barclays Bank Group remains focused on the continuous improvements being made to manage risk effectively, with an emphasis on enhancing
governance and management information to help identify risks at earlier stages.
Risk review
Risk performance
Model risk, Conduct risk, Reputation risk and Legal risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 134

Legal risk
The Barclays Bank Group remains committed to continuous improvements in managing legal risk effectively. At the end of 2022, enhancements were
made to the Barclays Group-wide legal risk management framework primarily relating to the Legal Function's responsibility for the identification of legal
risks and the escalation of legal risk as necessary.
Other improvements during 2022 included a review and update of the established supporting legal risk policies, standards and mandatory training,
reinforced by ongoing engagement with and education of the Barclays Group’s businesses and functions by Legal function colleagues. Legal risk
tolerances and legal risk appetite have also been reviewed.
Tolerances adherence is assessed through key indicators, which are also used to evaluate the legal risk profile and are reviewed, at least annually,
through the relevant risk and control committees. Mandatory controls to manage legal risks are set out in the legal risk standards and are subject to
ongoing monitoring. The changes to the legal risk management framework referred to above are intended to provide continuing improvements to the
effectiveness of the legal risk control environment as they are implemented through 2023.
Risk review
Risk performance
Model risk, Conduct risk, Reputation risk and Legal risk

home.barclays/annualreport | Barclays Bank PLC Annual Report | 135

Supervision of the Barclays Bank Group
The Barclays Bank Group’s operations, including its overseas branches, subsidiaries and associates, are subject to a large number of rules and
regulations applicable to the conduct of banking and financial services business in each of the jurisdictions in which the Barclays Bank Group operates.
These apply to business operations, impact financial returns and include capital, leverage and liquidity requirements, authorisation, registration and
reporting requirements, restrictions on certain activities, conduct of business regulations and many others.
Regulatory developments impact the Barclays Bank Group globally. We focus particularly on UK, US and EU regulation due to the location of the Barclays
Bank Group’s principal areas of business. Regulations elsewhere may also have a significant impact on the Barclays Bank Group due to the location of its
branches, subsidiaries and, in some cases, clients. For more information on the risks related to the supervision and regulation of the Barclays Bank
Group, including regulatory change, see the material existing and emerging risk entitled ‘Regulatory Change agenda and impact on Business Model’ in
the Material existing and emerging risks section.
Supervision in the UK
In the UK, day-to-day regulation and supervision of the Barclays Bank Group is divided between the Prudential Regulation Authority (PRA) (a division of
the Bank of England (BoE)) and the Financial Conduct Authority (FCA). In addition, the Financial Policy Committee (FPC) of the BoE has influence on the
prudential requirements that may be imposed on the banking system through its powers of direction and recommendation. Certain members of the
Barclays Bank Group are also subject to regulatory initiatives undertaken by the UK Payment Systems Regulator (PSR), as a participant in payment
systems regulated by the PSR.
Barclays Bank PLC is an authorised person, with permission to accept deposits, amongst other things, and subject to prudential supervision by the PRA
and subject to conduct regulation and supervision by the FCA. Barclays Bank PLC is subject to prudential supervision on a solo-consolidated basis. The
Barclays Group is also subject to prudential supervision by the PRA on a group consolidated basis. Barclays PLC has been approved by the PRA as a
financial holding company. Barclays Capital Securities Limited is authorised and subject to prudential supervision by the PRA as a PRA-designated
investment firm and subject to conduct regulation and supervision by the FCA. Barclays Execution Services Limited is an appointed representative of
Barclays Bank PLC, Barclays Bank UK PLC and Clydesdale Financial Services Limited.
The PRA’s supervision of the Barclays Bank Group is conducted through a variety of regulatory tools, including the collection of information by way of
prudential returns or cross-firm reviews, reports obtained from skilled persons, regular supervisory visits to firms and regular meetings with
management and directors to discuss issues such as strategy, governance, financial resilience, operational resilience, risk management, and recovery
and resolution.
Further, the BoE, as the UK resolution authority, informs prudential requirements and sets requirements for the Barclays Group relating to resolution
preparedness.
The FCA’s supervision of the UK firms in the Barclays Bank Group is carried out through a combination of proactive engagement, regular thematic work
and project work based on the FCA’s sector assessments, which analyse the different areas of the market and the risks that may lie ahead.
The FCA and the PRA also apply the Senior Managers and Certification Regime (the SMCR) which imposes a regulatory approval, individual
accountability and fitness and propriety framework in respect of senior or key individuals within relevant firms.
FCA supervision has focused on conduct risk and customer/client outcomes, including product design, customer behaviour, market operations, fair
pricing, affordability, access to cash, and fair treatment of vulnerable customers.
PRA supervision has focused on financial resilience, credit risk management, Board effectiveness, operational resilience, climate risk and resolvability,
where resolvability is reviewed in conjunction with the Resolution Directorate (a separate division of the BoE).
Both the PRA and the FCA apply standards that generally either anticipate or go beyond requirements established by global or EU standards, whether in
relation to capital, leverage and liquidity, resolvability and resolution or matters of conduct. The UK is in the process of reviewing and revising the EU
legislation that was onshored into English law following the UK's departure from the EU. This process is at a very early stage, but based on current
indications, it is not expected to result in a materially different standard of regulation with respect to PRA and FCA standards. The medium term outlook
for the costs and impact of operating under the post-Brexit UK regime remains unclear until details of any changes are confirmed. There is potential for
an increase in regulatory implementation costs in the near term to adapt systems and controls.
Both the PRA and the FCA have assessed the impact of COVID-19 and Brexit on UK financial markets and customers as well as the orderly transition
away from LIBOR and have issued guidance for regulated entities accordingly. In each case, the guidance focussed on customer / client outcomes and
conduct risk, as well as ensuring fair and orderly markets.
Supervision in the EU
The Barclays Bank Group’s operations in Europe are authorised and regulated by a combination of its home regulators and host regulators in the
European countries where the Barclays Bank Group operates.
Barclays Bank Ireland PLC is licensed as a credit institution by the Central Bank of Ireland (CBI) and is designated as a significant institution falling under
direct supervision on a solo basis by the European Central Bank (ECB) for prudential purposes. Barclays Bank Ireland PLC’s EU branches are supervised
by the ECB and are also subject to direct supervision for local conduct purposes by national supervisory authorities in the jurisdictions where they are
established. Barclays Bank Ireland PLC is subject to the requirements set by the Single Resolution Board (SRB) as the host resolution authority of
Barclays Bank Ireland PLC. Barclays Bank Ireland PLC is also subject to supervision by the CBI as home state or competent authority under various EU
financial services directives and regulations.
The Barclays Group provides the majority of its cross-border banking and investment services to EEA clients via Barclays Bank Ireland PLC (a subsidiary
of Barclays Bank PLC). Additionally, in certain EEA Member States, Barclays Bank PLC and Barclays Capital Securities Limited (BCSL) have cross-border
licences to enable them to continue to conduct a limited range of activities, including accessing EEA trading venues and interdealer trading. Barclays
Bank PLC also has a Paris branch (to facilitate access to Target 2), which is regulated by the ACPR.
Risk review
Supervision and regulation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 136

Supervision in the US
Barclays PLC, Barclays Bank PLC and its New York branch, and Barclays Bank PLC’s US subsidiaries are subject to a comprehensive regulatory
framework involving numerous statutes, rules and regulations in the US. For example, the Barclays Bank Group’s US activities and operations are subject
to supervision and regulation by the Board of Governors of the Federal Reserve System (FRB), as well as additional supervision, requirements and
restrictions imposed by other federal and state regulators and self-regulatory organisations (SROs). In some cases, US requirements may impose
restrictions on the Barclays Bank Group’s global activities, in addition to its activities in the US.
Barclays PLC, Barclays Bank PLC, Barclays US Holdings Limited (BUSHL), Barclays US LLC (BUSL) and Barclays Group US Inc. (BGUS) are regulated as
bank holding companies (BHCs) by the FRB. BUSL is the Barclays Bank Group’s ultimate US holding company that holds substantially all of the Barclays
Bank Group’s US subsidiaries (including Barclays Capital Inc. (BCI) and Barclays Bank Delaware). BUSL is subject to requirements in respect of capital
adequacy, capital planning and stress testing, risk management and governance, liquidity, leverage limits, large exposure limits, activities restrictions
and financial regulatory reporting. Barclays Bank PLC’s New York branch is also subject to enhanced prudential standards relating to, among other
things, liquidity and risk management.
Barclays PLC, Barclays Bank PLC, BUSHL and BUSL have financial holding company (FHC) status under the Bank Holding Company Act of 1956. FHC
status allows these entities to engage in a variety of financial and related activities, directly or through subsidiaries, including underwriting, dealing and
market making in securities. Failure to maintain FHC status could result in increasingly stringent penalties and, ultimately, in the closure or cessation of
certain operations in the US.
In addition to oversight by the FRB, Barclays Bank PLC’s New York branch and many of the Barclays Bank Group’s subsidiaries are regulated by
additional US authorities based on the location or activities of those entities. The New York branch of Barclays Bank PLC is subject to supervision and
regulation by the New York State Department of Financial Services (NYSDFS). Barclays Bank Delaware, a Delaware chartered bank, is subject to
supervision and regulation by the Delaware Office of the State Bank Commissioner, the Federal Deposit Insurance Corporation (FDIC), the FRB and the
Consumer Financial Protection Bureau (CFPB). The deposits of Barclays Bank Delaware are insured by the FDIC, up to applicable limits. Barclays PLC,
Barclays Bank PLC, BUSHL, BUSL, and BGUS are required to act as a source of strength for Barclays Bank Delaware. This could, among other things,
require these entities to provide capital support to Barclays Bank Delaware if it fails to meet applicable regulatory capital requirements.
The Barclays Bank Group’s US securities broker/dealer and investment banking operations, are conducted primarily through BCI and are also subject to
ongoing supervision and regulation by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and other
government agencies and SROs under US federal and state securities laws. BCI is also registered as a Futures Commission Merchant with the
Commodity Futures Trading Commission (CFTC), through which the Barclays Group conducts its US futures and options on futures business, including
client clearing operations, which are subject to ongoing supervision and regulation by the CFTC, the National Futures Association and other SROs.
Under the US framework for regulating swaps and security-based swaps established under Title VII of the Dodd-Frank Act, the CFTC has regulatory
authority over swaps, the SEC has regulatory authority over security-based swaps and the CFTC and SEC jointly regulate mixed swaps (as such terms
are defined in the relevant legislation). Accordingly, the Barclays Group’s activities related to US swaps and security-based swaps are principally
conducted by Barclays Bank PLC and are subject to ongoing supervision and regulation by the CFTC and the SEC, respectively. Barclays Bank PLC is
provisionally registered as a swap dealer with the CFTC and conditionally registered as a Security-based swap dealer with the SEC. Barclays Bank PLC is
also subject to the FRB swaps rules with respect to margin and capital requirements. In addition, Barclays Bank Ireland PLC is provisionally registered as
a swap dealer with the CFTC and is subject to the FRB swaps rules with respect to margin and capital.
Supervision in Asia Pacific
The Barclays Bank Group’s operations in Asia Pacific are supervised and regulated by a broad range of national banking and financial services
regulators.
Prudential regulation
Certain Basel III standards were implemented in EU law through the Capital Requirements Regulation (CRR) and the Capital Requirements Directive IV
(CRD IV), as amended by CRR II and CRD V. These standards were retained in the UK regulatory framework via a series of onshoring instruments as part
of the UK’s withdrawal from the European Union. Beyond the minimum standards required by CRR, the PRA has expected the Barclays Group, in
common with other major UK banks and building societies, to meet a 7% Common Equity Tier 1 (CET1) ratio at the level of the consolidated group
since 1 January 2016. The 7% CET1 ratio is made up of a Pillar 1 minimum capital requirement of 4.5% CET1 and a capital conservation buffer which
must be met entirely with CET1 capital.
Global systemically important banks (G-SIBs), such as the Barclays Group, are subject to a number of additional prudential requirements, including the
requirement to hold additional loss-absorbing capacity and additional capital buffers above the level required by Basel III standards. The level of the G-
SIB buffer is set by the Financial Stability Board (FSB) according to a bank’s systemic importance and can range from 1% to 3.5% of risk-weighted
assets (RWAs). The G-SIB buffer must be met with CET1. In November 2022, the FSB published an update to its list of G-SIBs, maintaining the 1.5% G-
SIB buffer that applies to the Barclays Group.
The Barclays Group is also subject to a ‘combined buffer requirement’ consisting of (i) a capital conservation buffer of 2.5%, and (ii) a countercyclical
capital buffer (CCyB). The CCyB is based on rates determined by the regulatory authorities in each jurisdiction in which the Barclays Group maintains
exposures. In March 2020, th e FPC cut the UK CCyB rate to 0% with immediate effect in order to support the supply of credit expected as a result of the
COVID-19 pandemic. In December 2021, the FPC raised the UK CCyB to 1% with effect from 13 December 2022. In July 2022, the FPC announced that it
would raise the UK CCyB rate to 2% with effect from 5 July 2023.
The PRA requires UK firms to hold additional capital to cover risks which the PRA assesses are not fully captured by the Pillar 1 capital requirement. The
PRA sets this additional capital requirement (Pillar 2A) at least annually, derived from each firm's individual capital guidance. Under current PRA rules,
the Pillar 2A must be met with at least 56.25% CET1 capital and no more than 25% tier 2 capital. In addition, the capital that firms use to meet their
minimum requirements (Pillar 1 and Pillar 2A) cannot be counted towards meeting the combined buffer requirement.
The PRA may also impose a confidential 'PRA buffer' to cover risks over a forward looking planning horizon, including with regard to firm-specific
stresses or management and governance weaknesses. If the PRA buffer is imposed on a specific firm, it must be met separately to the combined buffer
requirement, and must be met fully with CET1 capital.
Risk review
Supervision and regulation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 137

In addition, Barclays Bank PLC is subject to prudential regulation by the PRA on a solo-consolidated basis and is required to meet a minimum Common
Equity Tier 1 (CET1) ratio of 9.9% comprising a 4.5% Pillar 1 requirement, a 2.5% capital conservation buffer, a 0.3% countercyclical buffer and a 2.5%
Pillar 2A add on. Barclays Bank Ireland PLC is identified as a O-SII (Other Systemically Important Institutions) by the CBI, who have imposed an O-SII
buffer on Barclays Bank Ireland PLC.
In July 2021 and October 2021, the PRA, respectively, published a policy statement and confirmation, setting out its planned implementation of certain
Basel III standards, including the net stable funding ratio (NSFR), the new counterparty credit risk standard (SA-CCR) and rules on large exposures. As
part of this policy statement, the PRA also confirmed that it would maintain its approach of requiring the deduction of software assets from capital. On
30 November 2022, the PRA published consultation paper CP16/22 concerning the implementation of the remaining Basel III standards, which include
a revised standardised approach for credit risk, the elimination of modelled approaches for certain credit risk exposure categories, a new standardised
approach for operational risk, a new market risk approach and the implementation of an output floor requiring reported RWAs calculated under
standardised and modelled approaches to be a minimum of 72.5% of fully standardised calculations. The EU has also launched its legislative process for
implementing these remaining Basel III reforms. In October 2021, the FPC and PRA published a policy statement setting out changes to the leverage
ratio framework, including applying the leverage ratio requirement on an individual basis and making sub-consolidation available as an alternative to
individual application where a firm has subsidiaries that can be consolidated, which apply from 1 January 2023.
In the US, in October 2019, the FRB and other US regulatory agencies released final rules to tailor the applicability of prudential requirements for large
domestic US banking organisations, foreign banking organisations and their intermediate holding companies (IHCs), including BUSL. BUSL is a
“Category III” IHC. BUSL (and Barclays Bank Delaware) is therefore subject to reduced (calibrated at 85%) standardised liquidity requirements, including
the liquidity coverage ratio and NSFR.
In June 2018 and October 2019, the FRB finalised rules regarding single counterparty credit limits (SCCL). The SCCL apply to the largest US BHCs and
foreign banks’ (including the Barclays Bank Group’s) US operations. The SCCL creates two separate limits for foreign banks, the first on combined US
operations (CUSO) and the second on the US IHC (BUSL). The SCCL for US BHCs, including BUSL, requires that exposure to an unaffiliated counterparty
of BUSL not exceed 25% of BUSL’s tier 1 capital. With respect to the CUSO, the SCCL rule allows certification to the FRB that a foreign bank complies
with comparable home country regulation.
Barclays Bank PLC was not required to comply with the CUSO requirement until 1 January 2022, with the first certification applicable for Q1 2022
results.
Stress testing
The Barclays Group and certain of its members, including Barclays Bank PLC, are subject to supervisory stress testing exercises in a number of
jurisdictions, designed to assess the resilience of banks to adverse economic or financial developments and ensure that they have robust, forward-
looking capital planning processes that account for the risks associated with their business profile. Assessment by regulators is on both a quantitative
and qualitative basis, the latter focusing on such elements as data provision, stress testing capability including model risk management and internal
management processes and controls.
Recovery and Resolution
Stabilisation and resolution framework
The UK framework for recovery and resolution was established by the Banking Act 2009, as amended. The EU framework was established by the 2014
Bank Recovery and Resolution Directive (BRRD), as amended by BRRD II.
The BoE, as the UK resolution authority, has the power to resolve a UK financial institution that is failing or likely to fail by exercising certain stabilisation
tools, including (i) bail-in: the cancellation, transfer or dilution of a relevant entities’ equity and write-down or conversion of the claims of a relevant
entities' unsecured creditors (including holders of capital instruments) and conversion of those claims into equity as necessary to restore solvency; (ii)
the transfer of all or part of a relevant entities' business to a private sector purchaser; and (iii) the transfer of all or part of a relevant entities' business to
a “bridge bank” controlled by the BoE. When exercising any of its stabilisation powers, the BoE must generally provide that shareholders bear first losses,
followed by creditors in accordance with the priority of their claims in insolvency.
In order to enable the exercise of its stabilisation powers, the BoE may impose a temporary stay on the rights of creditors to terminate, accelerate or
close out contracts, or override events of default or termination rights that might otherwise be invoked as a result of a resolution action and modify
contractual arrangements in certain circumstances (including a variation of the terms of any securities). HM Treasury may also amend the law for the
purpose of enabling it to use its powers under this regime effectively, potentially with retrospective effect.
In addition, the BoE has the power, under the Banking Act, to permanently write-down or convert into equity tier 1 capital instruments, tier 2 capital
instruments and internal eligible liabilities at the point of non-viability of an institution.
The BoE’s preferred approach for the resolution of the Barclays Group is a bail-in strategy with a single point of entry at Barclays PLC. Under such a
strategy, Barclays PLC’s subsidiaries (including entities within Barclays Bank Group) would remain operational while Barclays PLC’s capital instruments
and eligible liabilities would be written down or converted to equity in order to recapitalise the Barclays Group and allow for the continued provision of
services and operations throughout the resolution. The order in which the bail-in tool is applied reflects the hierarchy of capital instruments under UK
CRD IV and otherwise respecting the hierarchy of claims in an ordinary insolvency. Accordingly, the more subordinated the claim, the more likely losses
will be suffered by owners of the claim.
The PRA has made rules that require authorised firms to draw up recovery plans and resolution packs, as required by the BRRD. Recovery plans are
designed to outline credible actions that authorised firms could implement in the event of severe stress in order to restore their business to a stable and
sustainable condition. Removal of potential impediments to an orderly resolution of a banking group or one or more of its subsidiaries is considered as
part of the BoE’s and PRA’s supervisory strategy for each firm, and the PRA can require firms to make significant changes in order to enhance
resolvability. The submission of resolution packs was suspended by the PRA in 2018 until further notice and replaced by annual EBA resolution
reporting. The Barclays Group has provided the PRA with a recovery plan annually, however, the PRA notified in October 2022 that it has moved
submission to a biennial submission cycle. The Barclays Group continues to maintain the recovery plan annually.
Risk review
Supervision and regulation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 138

Under the Resolvability Assessment Framework (RAF), firms are required to have in place capabilities covering three resolvability outcomes: (i) adequate
financial resources; (ii) being able to continue to do business through resolution and restructuring; and (iii) being able to communicate and co-ordinate
within the firm and with authorities. The first self-assessment report on these capabilities was submitted by the Barclays Group to the PRA/BoE in 2021
and public disclosures by both firms and the PRA/BoE were made in June 2022 (and are required every two years thereafter). The Bank of England’s
assessment concluded that there are no shortcomings, deficiencies or substantive impediments identified in the Barclays Group’s resolution capabilities
that could impede its ability to execute the preferred resolution strategy. In future, should any such issues be identified, the PRA/BoE could exercise its
various powers to direct the Barclays Group to address the relevant issues.
While regulators in many jurisdictions have indicated a preference for single point of entry resolution for the Barclays Group, additional resolution or
bankruptcy provisions may apply to certain Barclays Bank Group entities or branches.
In the US, BUSL is subject to the Orderly Liquidation Authority established by Title II of the Dodd-Frank Act (DFA), a regime for the orderly liquidation of
systemically important financial institutions by the FDIC, as an alternative to proceedings under the US Bankruptcy Code. In addition, the licensing
authorities of Barclays Bank PLC New York branch and of Barclays Bank Delaware have the authority to take possession of the business and property of
the applicable branch or entity they license and/or to revoke or suspend such licence.
In the US, Title I of the DFA, as amended, and the implementing regulations issued by the FRB and the FDIC require each bank holding company with
assets of $250bn or more, including those within the Barclays Group, to prepare and submit a plan for the orderly resolution of subsidiaries and
operations in the event of future material financial distress or failure. The Barclays Group submitted a “targeted plan” in December 2021. The agencies
did not identify any shortcomings or deficiencies with the Barclays Group’s 2021 US Resolution Plan. The Barclays Group’s next submission of the US
Resolution Plan in respect of its US operations will be a “full plan” due in 2024.
Barclays Bank Ireland PLC is required by the ECB to submit a standalone BRRD compliant recovery plan on an annual basis. As a Significant Institution
under direct ECB supervision, Barclays Bank Ireland PLC falls within the remit of the EU Single Resolution Board (SRB), as the resolution authority for the
Eurozone. Under the provisions of the BRRD and EU Single Resolution Mechanism Regulation (SRMR), the SRB is required to determine the optimal
resolution strategy for Barclays Bank Ireland PLC and, also, to prepare a resolution plan for the bank. The SRB undertakes this work within the context of
the BoE’s preferred resolution strategy of single point of entry with bail in at Barclays PLC. In order to carry out its mandate, the SRB collects detailed
structural and other information from Barclays Bank Ireland PLC on a regular basis, as well as engaging with the bank to identify and address
impediments to resolution. This work is done in coordination with the BoE, as the Barclays Group resolution authority. Barclays Bank Ireland PLC will
need to meet the SRB’s requirements for resolution as set out in the SRB’s ‘Expectations for Banks’ document by 31 December 2023.
TLAC and MREL
The Barclays Group is under the supervision of the BoE, as the UK resolution authority, and is subject to a Minimum Requirement for own funds and
Eligible Liabilities (MREL), which includes a component reflecting the FSB’s standards on total loss absorbency capacity (TLAC).
The MREL requirements were fully implemented by 1 January 2022, from which time G-SIBs with resolution entities incorporated in the UK are required
to meet an MREL equivalent to the higher of: (i) two times the sum of their Pillar 1 and Pillar 2A requirements; or (ii) the higher of two times their
leverage ratio requirement or 6.75% of leverage exposures. Internal MREL for operating subsidiaries is subject to a scalar in the 75-90% range of the
external requirement that would apply to the subsidiary if it were a resolution entity. The starting point for the scalar is 90% for ring-fenced bank sub-
groups.
Barclays Bank Ireland PLC is subject to the SRB’s MREL policy, as issued in June 2022, in respect of the internal MREL that it will be required to issue to
Barclays Bank Group. The SRB’s current calibration of internal MREL for non-resolution entities is expressed as two ratios that have to be met in parallel:
(a) two times the sum of: (i) the firm’s Pillar 1 requirement; and (ii) its Pillar 2 requirement; and (b) two times the leverage ratio requirement. The SRB’s
policy does not apply any scalar in respect of the internal MREL requirement. Under the SRB MREL policy, a bank specific adjustment can be applied by
the SRB to MREL requirements.
In the US, the FRB’s TLAC rule includes provisions that require BUSL to have: (i) a specified outstanding amount of eligible long-term debt; (ii) a specified
outstanding amount of TLAC (consisting of common and preferred equity regulatory capital plus eligible long-term debt); and (iii) a specified common
equity buffer. In addition, the FRB’s TLAC rule prohibits BUSL, for so long as the Barclays Group’s overall resolution plan treats BUSL as a non-resolution
entity, from issuing TLAC to entities other than those within the Barclays Group.
Bank Levy and FSCS
The BRRD established a requirement for EU member states to set up a pre-funded resolution financing arrangement with funding equal to 1% of
covered deposits by 31 December 2024 to cover the costs of bank resolutions. The UK has implemented this requirement by way of a tax on the balance
sheets of banks known as the ‘Bank Levy’.
In addition, the UK has a statutory compensation fund called the Financial Services Compensation Scheme (FSCS), which is funded by way of annual
levies on most authorised financial services firms.
Structural reform
In the UK, the Financial Services (Banking Reform) Act 2013 put in place a framework for ring-fencing certain operations of large banks. Ring-fencing
requires, among other things, the separation of the retail and smaller deposit-taking business activities of UK banks into a legally distinct, operationally
separate and economically independent entity, which is not permitted to undertake a range of activities. This regime was independently reviewed in
2021, with the final report published in March 2022. The review recommended that HM Treasury should review the practicalities of aligning the ring-
fencing and resolution regimes, amongst other things, and the government has stated that it intends to issue a public call for evidence on this issue in
the first quarter of 2023 and to consult on reforms to the ring-fencing regime in mid 2023 in line with the recommendations in the independent review.
US regulation places further substantive limits on the activities that may be conducted by banks and holding companies, including foreign banking
organisations such as the Barclays Group. The ‘Volcker Rule’, which was part of the DFA and which came into effect in the US in 2015, prohibits banking
entities from undertaking certain proprietary trading activities and limits such entities’ ability to sponsor or invest in certain private equity funds and
Risk review
Supervision and regulation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 139

hedge funds (in each case broadly defined). As required by the rule, the Barclays Group has developed and implemented an extensive compliance and
monitoring programme addressing proprietary trading and covered fund activities (both inside and outside of the US).
Market infrastructure regulation
In recent years, regulators as well as global-standard setting bodies such as the International Organisation of Securities Commissions (IOSCO) have
focused on improving transparency and reducing risk in markets, particularly risks related to over-the-counter (OTC) derivative transactions. This focus
has resulted in a variety of new regulations across the G20 countries and beyond that require or encourage on-venue trading, clearing, posting of
margin and disclosure of pre-trade and post-trade information.
In particular, the Markets in Financial Instruments Directive and Markets in Financial Instruments Regulation (collectively referred to as MiFID II) have
affected many of the markets in which the Barclays Bank Group operates, the instruments in which it trades and the way it transacts with market
counterparties and other customers. MiFID II is currently undergoing a review process in both the EU and the UK, including as part of the EU’s ongoing
focus on the development of a stronger Capital Markets Union and the UK’s Wholesale Markets Review.
Regulation of benchmarks
The EU and UK Benchmarks Regulation apply to the administration, contribution and use of benchmarks within the EU and the UK, respectively.
Financial institutions within the EU or the UK, as applicable, are prohibited from using benchmarks unless their administrators are authorised, registered
or otherwise recognised in the EU or the UK, respectively. The FCA has also been working to phase out use of LIBOR, with GBP LIBOR ceasing to be
published in its original form from the end of 2021 and synthetic versions of GBP LIBOR being made available only for a limited period of time. Similarly,
USD LIBOR will cease to be published in its current form in June 2023 and other LIBOR and IBOR rates are also being wound down. Global regulators in
conjunction with the industry have developed and are continuing to develop alternative benchmarks and risk-free rate fallback arrangements, including
updates to existing, as well as new, applicable legislation.
Regulation of the derivatives market
The European Market Infrastructure Regulation (EMIR) has introduced requirements designed to improve transparency and reduce the risks associated
with the derivatives market. EMIR has operational and financial impacts on the Barclays Bank Group, including by imposing new collateral requirements
on a broader range of market participants with effect from 2022. Access to the clearing services of certain Central Clearing Counterparties (CCPs) used
by Barclays Bank Group entities is currently permitted under temporary equivalence and recognition regimes and decisions in the UK and EU. If not
extended or made permanent, the EU’s equivalence decision for UK Central Clearing Counterparties (CCPs), and exemption for certain intragroup
transactions from the EMIR derivatives clearing and margin obligations, both due to expire at the end of June 2025, could also have operational and
financial impacts on the Barclays Bank Group, as could the removal of temporary recognition of non-UK CCPs by the UK. EMIR is currently undergoing a
review process in the EU which may result in changes to the intragroup transactions exemption, potentially making it easier to rely on. However, the
review is in its very early stages so it is not yet certain what changes may result from it.
US regulators have imposed similar rules as the EU with respect to the mandatory on-venue trading and clearing of certain derivatives, and post-trade
transparency, as well as in relation to the margining of OTC derivatives. US regulators have finalised certain aspects of their rules with respect to their
application on a cross-border basis, including with respect to their registration requirements in relation to non-US swap dealers and security-based
swap dealers. The regulators may adopt further rules, or provide further guidance, regarding cross-border applicability. In December 2017, the CFTC
and the European Commission recognised the trading venues of each other’s jurisdiction to allow market participants to comply with mandatory on-
venue trading requirements while trading on certain venues recognised by the other jurisdiction. In December 2022, the CFTC extended temporary relief
that would permit trading venues and market participants located in the UK to continue to rely on this mutual recognition framework following the
withdrawal of the UK from the EU.
Certain participants in US swap markets are required to register with the CFTC as ‘swap dealers’ or ‘major swap participants’ and/or, with the SEC as
‘security-based swap dealers’ or ‘major security-based swap participants’. Such registrants are subject to CFTC and/or SEC regulation and oversight.
Entities required to register as swap dealers and/or security-based swap dealers are subject to business conduct, record-keeping and reporting
requirements under either or both CFTC and SEC rules. Barclays Bank PLC is also subject to regulation by the FRB, and is both provisionally registered
with the CFTC as a swap dealer and conditionally registered with the SEC as a security-based swap dealer. In addition, Barclays Bank Ireland PLC is
provisionally registered as a Swap Dealer with the CFTC.
Accordingly, Barclays Bank PLC and Barclays Bank Ireland PLC are subject to CFTC rules on business conduct, record-keeping and reporting and to FRB
rules on capital and margin. The CFTC has approved certain comparability determinations that permit substituted compliance with non-US regulatory
regimes for certain swap regulations. Substituted compliance is a recognition program whereby compliance with a comparable regulatory requirement
of a foreign jurisdiction is deemed to serve as a substitute for compliance with comparable requirements of the U.S. Commodity Exchange Act and the
CFTC’s regulations. Substituted compliance has been granted only in respect of certain requirements promulgated by regulatory authorities in certain
identified jurisdictions that the CFTC believes are sufficiently comparable to its own requirements. Substituted compliance was granted in respect of
certain European Union requirements in December 2013. In December 2022, the CFTC extended temporary relief that would permit swap dealers
located in the UK to continue to rely on existing CFTC substituted compliance determinations with respect to EU requirements in the event of a
withdrawal of the UK from the EU. Barclays Bank PLC and Barclays Bank Ireland PLC rely upon the CFTC’s grant of substituted compliance as a means to
comply with certain swap dealer requirements.
Barclays Bank PLC conditionally registered as a security-based swap dealer with the SEC as of 1 November 2021. As a registered security-based swap
dealer, Barclays Bank PLC is subject to SEC business conduct, recordkeeping and reporting rules similar to the CFTC rules noted above. Like the CFTC,
the SEC approved certain comparability determinations that permit conditional substituted compliance with non-US regulatory regimes for certain
security-based swap regulations. Due to the imposition by the SEC of more stringent requirements on which its grant of substituted compliance is
conditioned, Barclays Bank PLC is relying on substituted compliance only with respect to a limited number of SEC security-based swap dealer rules.
Many of the regulations under the CFTC and SEC regimes are similar in scope of application. The rules of both the SEC and the CFTC are roughly divided
into “transaction-level rules” and “entity-level rules”. Transaction-level rules apply only in circumstances in which at least one of the parties to the swap
or security-based swap transaction has sufficient nexus to the United States. Entity-level rules apply to swap dealers or security-based swap dealers
across all their swap or security-based swaps without distinction as to the counterparty or location of the transaction. Unlike the CFTC, certain SEC rules
apply to transactions entered into by non-US security-based swap dealers based on the location from which certain activities are undertaken. These SEC
Risk review
Supervision and regulation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 140

rules apply to security-based swap transactions facing non-US person counterparties that are “arranged, negotiated or executed” by US-based security-
based swap dealer personnel. This distinction expands the scope and impact of the SEC regime to transactions with a greater number of non-US
counterparties.
As noted above, Barclays Bank PLC and Barclays Bank Ireland PLC are subject to FRB rules on capital and margin.
In 2022, the SEC proposed Rule 10B-1 that would require any person with a security-based swap position (aggregated across all affiliated persons) that
exceeds any of the thresholds specified by the SEC to promptly report certain information by the next business day, including the identity of the
reporting person and the security-based swap position, as well as the ownership of securities positions related to the security-based swap position.
Such reports would be available publicly. If adopted as proposed, this rule could increase the burden and cost to Barclays Bank PLC of utilising security-
based swaps.
Other regulatory developments in the US
The SEC has also put forth a number of other recent proposals that, if adopted, could have a significant impact on the Barclays Bank Group’s business
and operations, including: (i) proposed amendments to Exchange Act Rule 15c6-1 that would shorten the standard settlement cycle for most broker-
dealer transactions in securities from two business days after the trade (T+2) to one business day after the trade (T+1), which could require significant
changes to BCI’s settlement procedures and practices, and new Exchange Act Rule 15c6-2 which would generally require market-wide improvements in
the rate of same-day affirmations and on central matching service providers; (ii) a proposed rule that would mandate central clearing of many US
Treasury securities transactions and would amend the broker-dealer customer protection rule as it applies to margin posted for transactions in US
Treasury securities, which could impose additional costs on the Barclays Bank Group’s Treasury securities trading activity; and (iii) a series of market
structure proposals which would have a significant impact on securities trading activity by BCI and other Barclays Bank Group entities, as the SEC
proposals would (a) impose a new SEC best execution obligation on securities broker-dealers, including BCI, (b) require that certain individual investor
orders be exposed to auctions before they could be executed internally by certain trading centres, and (c) amend certain rules under Regulation NMS
(National Market System) to adopt variable minimum pricing increments, reduce access fee caps for protected quotations, require that the amount of
exchange fees and rebates be determinable at the time of execution, and update and expand to certain broker-dealers the disclosures required for order
executions in NMS stocks, among other changes.
Other regulation
Consumer protection, culture and diversity and inclusion
In May 2021, the FCA published a consultation paper proposing the imposition of a new consumer duty on firms. The duty looks to set higher
expectations for the standard of care that firms provide to customers and will impact all aspects of Barclays’ retail businesses, including every customer
journey, product and service as well as our relationships with partners, suppliers and third parties. This will result in significant implementation costs
and there will also be higher ongoing costs for the industry as a result of extensive monitoring and evidential requirements. Final rules were published in
July 2022 and will come into force on 31 July 2023 for new and existing products or services that are open to sale or renewal, and on 31 July 2024 for
closed products or services.
Our regulators have enhanced their focus on the promotion of cultural values as a key area for banks, although they generally view the responsibility for
reforming culture as primarily sitting with the industry. The UK regulators have also begun focusing on diversity and inclusion in financial services firms,
with the Bank of England, PRA and FCA having published a joint discussion paper and the FCA having published a policy statement on this topic in April
2022.
Data protection
Most countries where Barclays Bank Group operates have comprehensive laws requiring openness and transparency about the collection and use of
personal information, and protection against loss and unauthorised or improper access. Regulations regarding data protection are increasing in number,
as well as levels of enforcement, as manifested in increased amounts of fines and the severity of other penalties. We expect that personal privacy and
data protection will continue to receive attention and focus from regulators, as well as public scrutiny and attention.
The EU’s General Data Protection Regulation (GDPR) created a broadly harmonised privacy regime across EU member states, introducing mandatory
breach notification, enhanced individual rights, a need to openly demonstrate compliance, and significant penalties for breaches. The extraterritorial
effect of the GDPR means entities established outside the EU may fall within the Regulation’s ambit when offering goods or services to European based
customers or clients. Following the UK’s withdrawal from the EU, the UK continues to apply the GDPR framework (as onshored into UK law and hence
now referred to as the ‘UK GDPR’ - this sits alongside an amended version of the UK Data Protection Act 2018). Following the invalidation by the
European Court of Justice (CJEU) of the EU-US Privacy Shield as a mechanism for transferring EU personal data to the US, the European Commission
published new standard contractual clauses (SCCs) in 2021 to meet the requirements of GDPR and the CJEU decision, known as Schrems II. In early
2022, the UK Information Commissioner set out its own international data transfer agreement, and the international data transfer addendum to the
European Commission’s SCCs for international data transfers. Implementing the new EU SCCs and/or the UK addendum, which involve case-by-case
transfer impact assessments and other safeguards, is likely to result in increased compliance costs for the Barclays Group. In 2021, China adopted its
first comprehensive law in relation to personal information called the Personal Information Protection Law (PIPL). The PIPL applies to processing
activities within mainland China, but similar to the GDPR, the PIPL has extraterritorial reach. As the global data protection regulatory landscape
develops, noncompliance with any such requirements could lead to regulatory fines and other penalties.
In the US, Barclays Bank Delaware is subject to the US Federal Gramm-Leach-Bliley Act (GLBA) and the California Privacy Rights Act of 2020, which
amended the California Consumer Privacy Act of 2018 and came into effect on 1 January 2023 (CPRA). The GLBA limits the use and disclosure of non-
public personal information to non-affiliated third parties, and requires financial institutions to provide written notice of their privacy policies and
practices and implement certain information security policies and practices. Any violations of the GLBA could subject Barclays Bank Delaware to
additional reporting requirements or regulatory investigation or audits by the financial regulators. More broadly, the Barclays Bank Group's US
operations are subject to the CPRA which applies to personal information that is not collected, processed, sold or disclosed subject to the GLBA. The
CPRA requires applicable members of the Barclays Bank Group to both provide California residents with additional disclosures regarding the collection,
use and sharing of personal information and grant California residents access, deletion, correction and other rights, including the right to opt-out of
certain sales or transfers of personal information and the right to limit the processing of sensitive personal information to certain purposes. Any
violations of the CPRA may be subject to enforcement by the California Privacy Protection Agency and the California Attorney General and the
imposition of monetary penalties, as well as potential lawsuits arising from the private right of action provided to California residents in the case of
Risk review
Supervision and regulation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 141

certain data breaches. Bills proposed in the United States Congress and in the legislatures of various US states, if enacted, may have further impact on
the data privacy practices of Barclays’ US operations. In addition, all 50 states have laws including obligations to provide notification of security breaches
of computer databases that contain personal information to affected individuals, state officers and others.
Cybersecurity and operational resilience
Regulators globally continue to focus on cybersecurity risk management, organisational operational resilience and overall soundness across all financial
services firms, with customer and market expectations of uninterrupted access to financial services remaining at an all-time high.
The regulatory focus has been further heightened by the increasing number of high-profile ransomware and other supply chain attacks seen across the
industry in recent years and the growing reliance of financial services on Cloud and other third party service providers. This is evidenced by the
continuing introduction of new laws and regulatory frameworks directed at enhancing resilience of both firms and their critical third party providers. A
new UK framework introduced last year requires firms to be able to remain within impact tolerances set for their important business services by no later
than 31 March 2025, with further legislation focusing on the resilience of critical third party providers now in the pipeline. The European Union’s Digital
Operational Resilience Act (DORA) entered into force in January 2023 and will apply in early 2025 (after a two-year implementation period), introducing
comprehensive and sector specific regulation on Information Communication Technologies (ICT) incident reporting, testing and third party risk
management, and providing for direct oversight of critical third party providers servicing the EU financial services sector. The existing and anticipated
requirements for increased controls will serve to improve industry standardisation and resilience capabilities, enhancing our ability to deliver services
during periods of potential disruption. However, such measures are likely to result in increased technology and compliance costs for the Barclays Bank
Group.
In 2022, the SEC published proposed disclosure rules and amendments regarding cybersecurity risk management, governance and incident reporting by
US-listed companies, including foreign private issuers such as Barclays PLC and Barclays Bank PLC. Also in 2022, NYDFS both increased enforcement of
and published proposed amendments to its main cybersecurity regulation applying to the New York Branch of Barclays Bank PLC. Final versions of the
SEC proposed disclosure rules and NYDFS proposed amendments are expected in 2023.
Regulatory initiatives on ESG disclosure
The EU Regulation on Sustainability-Related Disclosures introduces disclosure obligations requiring financial institutions to explain how they integrate
environmental, social and governance factors in their investment decisions for certain financial products. In addition, the EU Taxonomy Regulation
provides for a general framework for the development of an EU-wide classification system for environmentally sustainable economic activities. The EU
Corporate Sustainability Reporting Directive will introduce sustainability related reporting obligations for various entities including EU banks and certain
listed companies, with reporting to commence on a phased basis from the financial year 2024. Draft sustainability reporting standards are being
developed by the European Financial Reporting Advisory Group.
From June 2022, the EU’s Capital Requirements Regulation requires certain large financial institutions to disclose information on environmental, social
and governance risks, including physical risks and transition risks.
The EU has also proposed a Directive on Corporate Sustainability Due Diligence which, if adopted, would require EU firms, including financial
institutions, to carry out due diligence on companies in their value chain and identify and prevent, bring to an end or mitigate the impact of their
activities on human rights and the environment.
In the UK, the UK Government has confirmed its intention to develop a UK Green Taxonomy, and the Green Technical Advisory Group has published
advice on development of a Green Taxonomy with further advice expected to follow. Reporting against the Taxonomy will form part of the UK’s new
Sustainability Disclosure Requirements (SDR). Certain companies will be required to disclose which portion of their activities are Taxonomy-aligned. The
structure of the Taxonomy draws on the EU approach and has six environmental objectives (climate change mitigation, climate change adaptation,
sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control and protection and
restoration of biodiversity). The UK regulators are also consulting on a new SDR Framework for firms as well as investment product disclosures,
including a new sustainable investment labelling regime.
In March 2022, the SEC proposed climate related-disclosure requirements for US-listed companies (which would include Barclays Bank PLC) that would,
among other things, require disclosure of direct and indirect greenhouse gas emissions, with certain emissions disclosures subject to third-party
attestation requirements; climate-related scenario analysis (if the issuer conducts scenario analysis), together with qualitative and quantitative
information about the hypothetical future climate scenarios used in its analysis; climate transition plans or climate-related targets or goals, along with
disclosure of progress against any such plans, targets or goals; climate-related risks over the short-, medium- and long-term; qualitative and
quantitative information regarding climate-related risks and historical impacts in audited financial statements; corporate governance of climate-related
risks; and climate-related risk-management processes.
Sanctions and financial crime
The UK Bribery Act 2010 introduced a new form of corporate criminal liability focused broadly on a company’s failure to prevent bribery on its behalf.
The Criminal Finances Act 2017 introduced new corporate criminal offences of failing to prevent the facilitation of UK and overseas tax evasion. Both
pieces of legislation have broad application and in certain circumstances may have extraterritorial impact on entities, persons or activities located
outside the UK, including Barclays PLC’s subsidiaries outside the UK. The UK Bribery Act requires the Barclays Bank Group to have adequate procedures
to prevent bribery which, due to the extraterritorial nature of the Act, makes this both complex and costly. Additionally, the Criminal Finances Act
requires the Barclays Bank Group to have reasonable prevention procedures in place to prevent the criminal facilitation of tax evasion by persons acting
for, or on behalf of, the Barclays Bank Group.
The Sanctions and Anti-Money Laundering Act (the Sanctions Act) became law in the UK in 2018. The Sanctions Act allows for the adoption of an
autonomous UK sanctions regime, as well as a more flexible licensing regime post-Brexit. On 6 July 2020, the UK Government announced the first
sanctions that have been implemented independently by the UK outside the auspices of the UN and EU. The autonomous UK sanctions regime came
into force on 1 January 2021. The sanctions apply within the UK and in relation to the conduct of all UK persons wherever they are in the world; they also
apply to overseas branches of UK companies (including the Barclays Bank PLC New York branch).
In the US, the Bank Secrecy Act, the USA PATRIOT Act 2001, the Anti-Money Laundering Act of 2020 and regulations thereunder contain numerous
anti-money laundering and anti-terrorist financing requirements for financial institutions. In addition, the Barclays Bank Group is subject to the US
Risk review
Supervision and regulation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 142

Foreign Corrupt Practices Act, which prohibits, among other things, corrupt payments to foreign government officials. It is also subject to various
economic sanctions laws, regulations and executive orders administered by the US government, which prohibit or restrict some or all business activities
and other dealings with or involving certain individuals, entities, groups, countries and territories.
In some cases, US state and federal regulations addressing sanctions, money laundering and other financial crimes may impact entities, persons or
activities located or undertaken outside the US, including Barclays PLC and its subsidiaries. US government authorities have aggressively enforced these
laws against financial institutions in recent years. As a result of the conflict in Ukraine, there has been an increased regulatory focus on sanctions
compliance in various jurisdictions, including in the US, UK and EU. Failure of a financial institution to ensure compliance with such laws could have
serious legal, financial and reputational consequences for the institution.
Risk review
Supervision and regulation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 143

Detailed analysis of our financial statements, independently audited and providing in-depth disclosure of the financial performance of the Barclays Bank
PLC.

Consolidated financial statements |  | Page | Note
| ▪Independent Auditor’s Report | 145 |
| ▪Consolidated income statement | 166 |
| ▪Consolidated statement of comprehensive income | 167 |
| ▪Consolidated balance sheet | 168 |
| ▪Consolidated statement of changes in equity | 169 |
| ▪Consolidated cash flow statement | 171 |
Parent company accounts | ▪Parent company accounts | 172 |
Notes to the financial statements |  |  |
| ▪Significant accounting policies | 176 | 1
Financial performance and returns | ▪Segmental reporting | 183 | 2
| ▪Net interest income | 184 | 3
| ▪Net fee and commission income | 185 | 4
| ▪Net trading income | 187 | 5
| ▪Net investment expense | 188 | 6
| ▪Operating expenses | 188 | 7
| ▪Credit impairment charges | 189 | 8
| ▪Tax | 193 | 9
| ▪Dividends on ordinary shares and preference shares | 197 | 10
Assets and liabilities held at fair value | ▪Trading portfolio | 198 | 11
| ▪Financial assets at fair value through the income statement | 198 | 12
| ▪Derivative financial instruments | 200 | 13
| ▪Financial assets at fair value through other comprehensive income | 212 | 14
| ▪Financial liabilities designated at fair value | 212 | 15
| ▪Fair value of financial instruments | 213 | 16
| ▪Offsetting financial assets and financial liabilities | 226 | 17
Assets at amortised cost and other investments | ▪Loans and advances and deposits at amortised cost | 228 | 18
▪Property, plant and equipment | 229 | 19
| ▪Leases | 230 | 20
| ▪Goodwill and intangible assets | 232 | 21
Accruals, provisions, contingent liabilities and legal proceedings | ▪Other liabilities | 236 | 22
▪Provisions | 236 | 23
| ▪Contingent liabilities and commitments | 238 | 24
| ▪Legal, competition and regulatory matters | 238 | 25
Capital instruments, equity and reserves | ▪Subordinated liabilities | 244 | 26
| ▪Ordinary shares, preference shares and other equity | 248 | 27
| ▪Reserves | 250 | 28
Employee benefits | ▪Staff costs | 251 | 29
| ▪Share-based payments | 251 | 30
| ▪Pensions and post-retirement benefits | 253 | 31
Scope of consolidation | ▪Principal subsidiaries | 262 | 32
| ▪Structured entities | 263 | 33
| ▪Investments in associates and joint ventures | 266 | 34
| ▪Securitisations | 267 | 35
| ▪Assets pledged, collateral received and assets transferred | 268 | 36
Other disclosure matters | ▪Related party transactions and Directors’ remuneration | 271 | 37
| ▪Disposal of businesses | 274 | 38
| ▪Auditor’s remuneration | 274 | 39
| ▪Interest rate benchmark reform | 274 | 40
| ▪Related undertakings | 278 | 41

Financial statements
Contents

home.barclays/annualreport | Barclays Bank PLC Annual Report | 144

1.OUR OPINION IS UNMODIFIED In our opinion: •the financial statements of Barclays Bank PLC give a true and fair view of the Group’s and of the Parent Company’s affairs as at 31 December 2022, and of the Group’s profit for the year then ended; •the Group financial statements have been properly prepared in accordance with UK-adopted international accounting standards; •the Parent Company financial statements have been properly prepared in accordance with UK-adopted international accounting standards as applied in accordance with the provisions of the Companies Act 2006; •the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

WHAT OUR OPINION COVERS
We have audited the Group and Parent Company financial statements of Barclays Bank PLC for the year ended 31 December 2022 (FY22) included in the
Annual Report and Accounts, which comprise:

Group (Barclays Bank PLC and its subsidiaries) | Parent Company (Barclays Bank PLC)
Consolidated income statement | Balance sheet
Consolidated statement of comprehensive income | Statement of changes in equity
Consolidated balance sheet | Cash flow statement
Consolidated statement of changes in equity |
Consolidated cash flow statement |
Notes 1 to 41 of the Consolidated Financial Statements, including the summary of significant accounting policies |

ADDITIONAL OPINION IN RELATION TO IFRS AS ADOPTED BY THE EUROPEAN UNION
As explained in note 1 to the group financial statements, the Group and the Parent company, in addition to complying with its legal obligation to apply
UK-adopted international accounting standards, has also applied International Financial Reporting Standards adopted pursuant to Regulation (EC) No
1606/2002 as it applies in the European Union (“IFRSs as adopted by the EU”). In our opinion the group and the parent company financial statements
have been properly prepared in accordance with IFRSs as adopted by the EU.
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are
described below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion and
matters included in this report are consistent with those discussed and included in our reporting to the Board Audit Committee (“BAC”).
We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements including the
FRC Ethical Standard as applied to public interest entities.
Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 145

2.OVERVIEW OF OUR AUDIT

|  |  | Key Audit Matters |  |  |  |
FACTORS DRIVING OUR VIEW OF RISKS | Following our FY21 audit and considering developments affecting the Barclays Bank PLC Group since then, we have updated our risk assessment. The macro-economic environment continues to drive our risk assessment as the uncertainty which arose during the COVID-19 pandemic has evolved into increasing affordability pressures associated with rising inflation and interest rates. The economic uncertainty and change has brought both pressures and opportunities. Fee income across the equity and debt capital markets is down versus the prior year but income in the markets business has risen versus 2021 due to a higher volume of trading activity linked to volatility across various asset classes. In addition, the increasing interest rate environment and changes in portfolio mix have led to an increase in the net interest margin. As part of our risk assessment, we have maintained our focus on future economic assumptions used by the Group in its key estimates both at the year end and, where relevant, on a forward-looking basis. Our risk assessment also considered instances of non- compliance with laws and regulations and enforcement actions against the Group during the year and specifically those that could reasonably be expected to have a material effect on the financial statements. We considered management’s assessment of how these occurred, their assessment of whether the risk could be more pervasive, and actions taken to remediate and prevent recurrences or similar issues. |  |  |  | Item |
| Impairment allowance on loans and advances at amortised cost |  | 4.1 |
| Valuation of financial instruments held at fair value |  | 4.2 |
| UK Pension scheme valuation |  | 4.3 |
| User access management |  | 4.4 |
| Recoverability of Parent Company's investment in subsidiaries | New | 4.5 |
|  | Similar risk to FY21 |  |  |  |
|  | Increased risk since FY21 |  |  |  |

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 146

OUR USE OF SPECIALISTS AND INNOVATION | Using the work of specialists and specific team members with expertise in a specialised area of accounting or auditing: We used our specialists and specific team members with expertise in a specialised area of accounting or auditing to assist us in various aspects of our audit. This includes, for example: –Credit risk modellers for our testing of the ECL models –Economics specialists for our work related to the macro economic variables and scenarios used in the determination of the ECL provisions –Valuation specialists for our independent repricing of samples of financial instruments –Actuarial pensions specialists for our work on the valuation of the defined benefit obligation –Tax specialists for our work over the tax charge, the effective tax rate and uncertain tax positions. Incorporating unpredictability into our audit: A requirement of the auditing standards is that we undertake procedures which are deliberately unexpected and could not have reasonably been predicted by Barclays Bank PLC's management. As an example, we update our criteria for selecting journals with a higher risk of management override each year so that the selection criteria do not become predictable. This year we added additional key words we searched for in journal descriptions and also introduced new search criteria for journals posted and approved by the same individuals. Innovation in the audit: Our audit is committed to driving innovation and the increased use of technology. In 2022 we have continued to deploy a large number of data and analytics tools across our audit. We have also continued to innovate our audit of the estimation of expected credit losses through independently recalculating a selection of model assumptions using more recent data for certain portfolios. This is used to develop a range for ECL which we then compare to management’s own point estimate. |
BOARD AUDIT COMMITTEE (“BAC”) INTERACTION | During the year, the BAC met 14 times. KPMG are invited to attend all BAC meetings and are provided an opportunity to meet with the BAC in private sessions without the Executive Directors being present. For each Key Audit Matter, we have set out communications with the BAC in section 4, including matters that required particular judgement for each. In addition, our audit team includes a senior partner who has specific responsibility for ensuring audit quality (our “Audit Quality partner”). The Board Audit Committee met with the Audit Quality Partner, without the audit team present, to receive a report on his assessment of audit quality. The matters included in the BAC Chair’s report on page 18 are consistent with our observations of those meetings. |
OUR INDEPENDENCE | We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements including the FRC Ethical Standard as applied to public interest entities. Apart from the matter noted below, we have not performed any non-audit services during the year ended 31 December 2022 or subsequently which are prohibited by the FRC Ethical Standard. During 2023, we identified that a KPMG member firm had provided preparation of local GAAP financial statement services over the period 2019 to 2022 to entities not in scope for the group audit. The services involved administrative preparation of the local statutory financial statements and did not involve any management decision- making or bookkeeping. The work was undertaken after the group audit opinion was signed by KPMG LLP for each of the impacted financial years and had no direct or indirect effect on Barclays Bank PLC’s consolidated financial statements. In our professional judgment, we confirm that based on our assessment of the breach, our integrity and objectivity as auditor has not been compromised and we believe that an objective, reasonable and informed third party would conclude that the provision of this service would not impair our integrity or objectivity for any of the impacted financial years. The audit committee have concurred with this view. We were first appointed as auditor by the shareholders for the year ended 31 December 2017. The period of total uninterrupted engagement is for the six financial years ended 31 December 2022. The Group lead engagement partner is required to rotate after five years. This is the first set of UK Financial Statements that Stuart Crisp has signed. The average tenure of key audit partners who are responsible for component audits, as set out in section 7 below, is three years, with the shortest being their first year of involvement and longest being five years. |  |  | Total audit fee | £38m |
|  | Other audit related fees | £8m |
|  | Other services | £1m |
|  | Date first appointed | 31 March 2017 |
|  | Uninterrupted audit tenure | 6 years |
|  | Next financial period which require a tender | 31 December 2027 |
|  | Tenure of Group lead engagement partner | 1 year |
|  | Average tenure of key audit partners | 3 years |

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 147

MATERIALITY (ITEM 6 BELOW) | The scope of our work is influenced by our view of materiality and our assessed risk of material misstatement. We have determined overall materiality for the Barclays Bank PLC Group to be £170m (FY21: £170m). A key judgement in determining materiality (and performance materiality) is the appropriate benchmark to select, based on our perception of the needs of shareholders. We considered which benchmarks and key performance indicators have the greatest bearing on shareholder decisions. We determined that profit before tax remains the key benchmark for the Barclays Bank PLC Group. For FY21 we normalised profit before tax downward by £1.4bn to adjust for the fact that ECL charges were considered abnormally low as the economy recovered from the COVID-19 pandemic. For FY22 we did not normalise profit before tax. This is reflective of the impact of COVID-19 on ECL being less pronounced in the current period. As such, for FY22 we based our materiality on profit before tax, of which it represents 3.5% (FY21: 3.8% of normalised PBT). We have determined overall materiality for the Parent Company to be £130m (FY21: £130m). Materiality for the Parent Company financial statements was determined with reference to a benchmark of profit before tax of which it represents 4.7% (FY21: 4% of normalised PBT). |  | Profit before tax £4,867m (2021 normalised PBT: £4,438m) |
| £170m Whole financial statements materiality (2021: £170m) |
| £130m Biggest component materiality Range of materiality for the seven components (£40m-£130m) (2021: £40m to £130m) |
| £8m Misstatements reported to Board Audit Committee (2021: £8m) |
| In line with our audit methodology, our procedures on individual account balances and disclosures were performed to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that individually immaterial misstatements in individual account balances add up to a material amount across the financial statements as a whole. Performance materiality was set at 65% (2021: 74%) of materiality for the financial statements as a whole, which equates to £111m (2021: £125m) for the group and £85m (2021: £98m) for the parent company. We applied this percentage in our determination of performance materiality based on the level of control deficiencies during the prior period. |

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 148

GROUP SCOPE (ITEM 7 BELOW) | We have performed top down risk assessment and planning to determine which of the Group’s components are likely to include risks of material misstatement to the Group financial statements, the type of procedures to be performed at these components and the extent of involvement required from component auditors around the world for the purpose of our opinion on the consolidated financial statements. We have also considered the extent to which the Group has established central hubs in shared service centre structures in India. The outputs from these hubs are included in the financial information of the reporting components and so the India operations are not considered to be a separate component. We have performed certain audit procedures centrally across the Group, set out in more detail in Section 7. In addition, we have performed Group level analysis on the remaining components to determine whether further risks of material misstatement exist in those components. We consider the scope of our audit, as agreed with the Board Audit Committee, to be an appropriate basis for our audit opinion. The components within the scope of our work accounted for the following percentages: ■2022 Full scope audit ■2022 Audit of account balances ■2022 Other procedures ■2021 Full scope audit ■2021 Audit of account balances ■2021 Other procedures |  |  |
|  |  | *Percentage of Group total income and assets over which we performed full scope audit of account balances. |

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 149

THE IMPACT OF CLIMATE CHANGE ON OUR AUDIT | In planning our audit, we have considered the potential impact of risks arising from climate change on the Group’s business and its financial statements. The Group has set out its ambition under the Paris Accord to be a net zero bank by 2050. Further information is provided in the Group’s Environment, Social and Governance report which has been incorporated into the 2022 Annual Report. Climate change risks, opportunities and the Group’s own commitments and changing regulations could have a significant impact on the Group’s business and operations. There is the possibility that climate change risks, both physical and transitional, could affect financial statement balances, through estimates such as credit risk and market risk. There is enhanced narrative in the Annual Report on climate matters. As part of our audit we performed a risk assessment of the impact of climate change risk and the commitments made by the Group in respect of climate change on the financial statements and our audit approach. As a part of this we held discussions with our own climate change professionals to challenge our risk assessment. In doing this we performed the following: –Understanding management’s processes: we made enquiries to understand management’s assessment of the potential impact of climate change risk on the Group’s Annual Report and Accounts and the Group’s preparedness for this. As a part of this we made enquiries to understand management’s risk assessment process as it relates to possible effects of climate change on the Annual Report and Accounts including the way in which the accounting policies of the Group (including those relating to products with specific climate features) are updated to reflect climate change risks. –Corporate credit risk: We assessed how the Group considers the impact of climate risk on corporate counterparties through our individual loan assessments where, for performing counterparties, we assessed how climate change risk impacts certain counterparties within the commercial and investment bank, including the impact on their credit rating as applicable. The focus of our procedures was on certain counterparties who operate in industries with greater exposure to climate risk - the energy, transportation, materials and buildings, agriculture, food and forest product sectors. –Market risk: we incorporated a consideration of the climate change impact on unobservable inputs used in the valuation of certain financial instruments in elevated risk sectors including energy, metals and mining. –Annual report narrative: We made enquiries of management to understand the process by which climate related narrative is developed including the primary sources of data used and the governance process in place over the narrative. As a part of our risk assessment, we read the climate related information in the front half of the Annual Report and considered consistency with the financial statements and our audit knowledge. On the basis of the procedures performed above, we concluded that, while climate change posed a risk to the determination of asset values in the current year, the risk was not significant when we considered the nature of the assets and the relevant contractual terms. As a result, there was no material impact from climate change on our key audit matters. |

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 150

3.GOING CONCERN
The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Parent Company or the Group or
to cease their operations, and they have concluded that the Parent Company’s and the Group’s financial position means that this is realistic. They have
also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least
a year from the date of approval of the financial statements (“the going concern period”).

GOING CONCERN
We used our knowledge of the Group and Parent Company, the financial services industry, and the general economic environment to identify the inherent risks to the business model and analysed how those risks might affect the Group’s and Parent Company’s financial resources or ability to continue operations over the going concern period. The risks that management considered most likely to adversely affect the Group’s and Parent Company’s available financial resources over this period and which we challenged were: –the availability of funding and liquidity in the event of a market wide stress scenario; and –the impact on regulatory capital requirements in the event of an economic slowdown. We considered whether these risks could plausibly affect the availability of financial resources in the going concern period by comparing severe, but plausible downside scenarios that could arise from these risks individually and collectively against the level of available financial resources indicated by the Group’s financial forecasts. Our procedures also included an assessment of whether the going concern disclosure in note 1 to the financial statements gives a complete and accurate description of the Directors’ assessment of going concern. Accordingly, based on these procedures, we found the directors' use of the going concern basis of preparation without any material uncertainty for the Group and Parent Company to be acceptable. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Group or the Parent Company will continue in operation. | Our conclusions ▪We consider that the Directors’ use of the going concern basis of accounting in the preparation of the Group’s and Parent Company’s financial statements is appropriate; ▪We have not identified, and concur with the Directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Group’s or Parent Company's ability to continue as a going concern for the going concern period; ▪We have nothing material to add or draw attention to in relation to the Directors’ statement in Note 1 to the financial statements on the use of the going concern basis of accounting with no material uncertainties that may cast significant doubt over the Group and Parent Company’s use of that basis for the going concern period, and we found the going concern disclosure in note 1 to be acceptable.

4.KEY AUDIT MATTERS

What we mean

Key Audit Matters are those matters that, in our professional judgment, were of most significance in the audit of the financial statements and include
the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest
effect on:
▪the overall audit strategy;
▪the allocation of resources in the audit;
▪and directing the efforts of the engagement team.

We include below the Key Audit Matters in decreasing order of audit significance together with our key audit procedures to address those matters and
our results from those procedures. These matters were addressed, and our results are based on procedures undertaken for the purpose of our audit of
the financial statements as a whole. We do not provide a separate opinion on these matters.

4.1.IMPAIRMENT ALLOWANCES ON LOANS AND ADVANCES AT AMORTISED COST, INCLUDING OFF-BALANCE SHEET ELEMENTS
Financial Statement Elements | Our assessment of risk vs FY21 | Our results
| FY22 | FY21 |  |  |
Impairment allowances on loans and advances at amortised cost, including off-balance sheet elements | £4.4bn | £4.0bn |  | Our assessment is that the risk has increased since FY21. This is due to rising interest rates and inflationary pressures and increased macroeconomic environment uncertainty during the year. | FY22: Acceptable FY21: Acceptable

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 151

Description of the Key Audit Matter | Our response to the risk
Subjective estimate The estimation of expected credit losses (“ECL”) on financial instruments, involves significant judgement and estimates. The key areas where we identified greater levels of management judgement and therefore increased levels of audit focus in the Group and Parent Company’s estimation of ECLs are: ▪Model estimations – Inherently judgemental modelling and assumptions are used to estimate ECL which involves determining Probabilities of Default (“PD”), Loss Given Default (“LGD”), and Exposures at Default (“EAD”). ECLs may be inappropriate if certain models or underlying assumptions do not accurately predict defaults or recoveries over time, become out of line with wider industry experience, or fail to reflect the credit risk of financial assets. As a result, certain IFRS 9 models and model assumptions are the key drivers of complexity and uncertainty in the Group and Parent’s calculation of the ECL estimate. ▪Economic scenarios – IFRS 9 requires the Group and Parent to measure ECLs on an unbiased forward-looking basis reflecting a range of future economic conditions. Significant management judgement is applied in determining the forward-looking economic scenarios used as an input to calculate ECL, the probability weightings associated with the scenarios and the complexity of models used to derive the probability weightings. ▪Qualitative adjustments – Adjustments to the model-driven ECL results are raised by management to address known impairment model limitations or emerging trends as well as risks not captured by models. They represent approximately (0.5%)% of the ECL. These adjustments are inherently uncertain and significant management judgement is involved in estimating certain post model adjustments (“PMA’s”) and management overlays. The effect of these matters is that, as part of our risk assessment, we determined that the impairment of loans and advances to customers including off balance sheet elements has a high degree of estimation uncertainty, with a potential range of reasonable outcomes greater than our materiality for the financial statements as a whole, and possibly many times that amount. The credit risk sections of the financial statements (page 66-110) disclose the sensitivities estimated by the Group and Parent. Disclosure quality The disclosures regarding the Group and Parent's application of IFRS 9 are key to explaining the key judgements and material inputs to the IFRS 9 ECL results. | Our procedures to address the risk included: Risk assessment: We performed granular and detailed risk assessment procedures over the entirety of the loan and advances at amortised cost including off-balance sheet elements within the Group and Parent Company’s financial statements. As part of these risk assessment procedures, we identified which portfolios are associated with a risk of material misstatement including those arising from significant judgements over estimation of ECL either due to inputs, methods or assumptions. Controls testing: We performed end to end process walkthroughs to identify the key systems, applications and controls used in the ECL processes. We tested the relevant manual, general IT and application controls over key systems used in the ECL process. Key aspects of our controls testing involved evaluating the design and testing the operating effectiveness of the key controls over the: •completeness and accuracy of the key inputs into the IFRS 9 impairment models; •application of the staging criteria; •model validation, implementation and monitoring; •authorisation and calculation of post model adjustments and management overlays; •selection and implementation of economic variables and the controls over the economic scenario selection and probabilities; and •credit reviews that determine customer risk ratings used in the models for wholesale customers. Our credit risk modelling expertise: We involved our own credit risk modellers specialists who assisted in the following: •evaluating the Group and Parent’s impairment methodologies for compliance with IFRS 9; •inspecting model code for the calculation of certain components of the ECL model to assess its consistency with the Group and Parent’s model methodology; •evaluating for a selection of models which were changed or updated during the year as to whether the changes (including the updated model code) were appropriate by assessing the updated model methodology against the applicable accounting standard; •reperforming the calculation of certain qualitative adjustments to assess consistency with the qualitative adjustment methodologies; •assessing and reperforming, for a selection of models, the reasonableness of the model predictions by comparing them against actual results and evaluating the resulting differences; •evaluating the model output for a selection of models by inspecting the corresponding model functionality and independently implementing the model by rebuilding the model code and comparing our independent output with management’s output; and •independently recalculating a selection of model assumptions using more recent data for certain portfolios. This is used to develop a range for ECL which is compared to management’s point estimate. Our economics expertise: We involved our own economic specialists who assisted us in: •assessing the reasonableness of the Group and Parent’s methodology and models for determining the economic scenarios used and the probability weightings applied to them; •assessing key economic variables which included comparing samples of economic variables to external sources; •assessing the overall reasonableness of the economic forecasts by comparing the Group and Parent’s forecasts to our own modelled forecasts; and •assessing the reasonableness of the Group and Parent’s qualitative adjustments by challenging key economic assumptions applied in their calculation based on external sources. Other test of details: Key aspects of our testing in addition to those set out above involved: •sample testing over key inputs into the ECL calculations; •selecting a sample of post model adjustments, considering the size and complexity of management overlays, in order to assess the reasonableness of the adjustments by challenging key assumptions, inspecting the calculation methodology and tracing a sample of the data used back to source data; and •selecting a sample of credit reviews in order to assess the reasonableness of customer risk ratings by challenging key judgements and considering disconfirming or contradictory evidence. Assessing transparency: We assessed whether the disclosure appropriately describes the uncertainty which exists when determining the ECL. In addition, we assessed whether the disclosure of the key judgements and assumptions was sufficiently clear whether the disclosure appropriately describes the uncertainty which exists when determining the ECL. In addition, we assessed whether the disclosure of the key judgements and assumptions was sufficiently clear.

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 152

Communications with the Barclays Bank PLC Board Audit Committee Our discussions with and reporting to the Board Audit Committee included: •the effectiveness of the control environment operating over the calculation of the ECL provisions; •the determination of judgemental post model adjustments recognised; •model monitoring results and adjustments made; •management’s economic forecast and associated scenario probability weights; and •the disclosures made to explain ECL, including explaining the resulting estimation uncertainty. Areas of particular auditor judgement We identified the following as the areas of particular auditor judgement: •The appropriateness of the model estimations and adjustments recorded to the modelled driven ECL calculations to reflect the economic uncertainty. Our results Based on the risk identified and our procedures performed we considered the impairment allowances on loans and advances at amortised cost, including off- balance sheet elements and the related disclosures to be acceptable (2021 result: acceptable)

Further information in the Annual Report and Accounts: See the Board Audit Committee Report on page 28 for details on how the Board Audit
Committee considered impairment as an area of focus, page 177 for the accounting policy on accounting for the impairment of financial assets under
IFRS 9, pages 66 - 110 for the credit risk disclosures, and page 189 for the financial disclosure note 8; Credit Impairment charges/(releases).

4.2 VALUATION OF FINANCIAL INSTRUMENTS HELD AT FAIR VALUE
Financial Statement Elements | Our assessment of risk vs FY21 | Our results
| FY22 | FY21 |  |  |
Level 2 assets at fair value* (note 16) | £582bn | £523bn |  | Our assessment is that the risk is similar to FY21. | FY22: Acceptable FY21: Acceptable
Level 2 liabilities at fair value* (note 16) | £572bn | £521bn
Level 3 assets at fair value (note 16) | £17.8bn | £12.4bn
Level 3 liabilities at fair value (note 16) | £7.5bn | £6.5bn
*The key audit matter identified relates to one derivatives portfolio within these balances, and xVA adjustments made to derivative valuations, both of which we considered to be harder to value. |  |  |

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 153

Description of the Key Audit Matter | Our response to the risk
Subjective valuation The fair value of the Group’s and Parent’s financial instruments is determined through the application of valuation techniques which can involve the exercise of significant judgement by the Group in relation to the choice of the valuation models, pricing inputs and post- model pricing adjustments, including fair value adjustments (FVAs) and credit and funding adjustments (together referred to as XVAs). Where significant pricing inputs are unobservable, management has limited reliable, relevant market data available in determining the fair value and hence estimation uncertainty can be high. These financial instruments are classified as Level 3, with management having controls in place over the boundary between Level 2 and 3 positions. Our significant audit risk is therefore primarily over significant Level 3 portfolios. In addition, there may also be valuation complexity associated with Level 2 portfolios, specifically where valuation modelling techniques result in significant limitations or where there is greater uncertainty around the choice of an appropriate pricing methodology, and consequently more than one valuation methodology could be used for that product across the market. We identified two areas of such complexity. The first a derivatives portfolio that we considered to be harder to value Level 2 due to an element of modelling complexity associated with the product, and the second the XVA adjustments made to uncollateralised and partially collateralised derivative valuations. The effect of these matters is that, as part of our risk assessment, we determined that the subjective estimates in fair value measurement of Level 3 portfolios and harder-to-value Level 2 portfolios, have a high degree of estimation uncertainty, with a potential range of reasonable outcomes greater than our materiality for the financial statements as a whole, and possibly many times that amount. The financial statements (note 16) disclose the sensitivity estimated by the Group and Parent. Disclosure quality For the Level 3portfolios, the disclosures are key to explaining the valuation techniques, key judgements, assumptions and material inputs. | Our procedures to address the risk included: Risk assessment: We performed granular and detailed risk assessment procedures throughout the audit period over the entirety of the balances within the Group and Parent’s financial statements (i.e. all of the fair value financial instruments held by the Group and Parent). As part of these risk assessment procedures, we identified which portfolios and the associated valuation inputs have a risk of material misstatement including those arising from significant judgements over valuation either due to unobservable inputs or complex models. Control testing: We attended management’s valuation committee throughout the year and observed discussion and challenge over valuation themes including items related to the valuation of certain difficult-to-value financial instruments recorded at fair value. We performed end to end process walkthroughs to identify the key systems, applications and controls used in the valuations processes. We tested the design and operating effectiveness of key controls relating specifically to these portfolios. Key aspects of our controls testing involved evaluating the design and testing the operating effectiveness of the key controls over: ▪independent price verification (IPV), performed by a control function, of key market pricing inputs, including completeness of positions and valuation inputs subject to the IPV process; ▪FVAs, including exit adjustments (to mark the portfolio to bid or offer prices), model shortcoming reserves to address model limitations and XVAs; ▪the validation, completeness, implementation and usage of valuation models. This included controls over assessment of model limitations and assumptions; and ▪the assessment of the observability of a product and their unobservable inputs. Our valuations expertise: We involved our own valuations specialists in the following: ▪independently re-pricing a selection of fair value financial instruments and challenging management on the valuations where they were outside our tolerance; and ▪challenging the appropriateness of significant models and methodologies used in calculating fair values, risk exposures and in calculating FVAs, including comparison to industry practice. Seeking contradictory evidence: For a selection of collateral disputes identified through management’s control we challenged management’s valuation where significant fair value differences were observable with the market participant on the other side of the trade. We also utilised collateral dispute data to identify fair value financial instruments with significant fair value differences against market counterparties and selected these to independently reprice. Inspection of movements: We inspected trading revenue arising on level 3 positions to assess whether material gains or losses generated were in line with the accounting standards. Historical comparison: We performed a retrospective review by inspecting significant gains and losses on a selection of new fair value financial instruments, position exits, novations and restructurings throughout the audit period and evaluated whether these data points indicated elements of fair value not incorporated in the current valuation methodologies. We also inspected movements in unobservable inputs throughout the period to challenge whether any gain or loss generated was appropriate. Assessing transparency: For the Level 3 portfolios, we assessed the adequacy of the Group and Parent’s financial statements disclosures in the context of the relevant accounting standards.

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 154

Communications with the Barclays PLC Board Audit Committee Our discussions with and reporting to the Board Audit Committee included: ▪Our approach to the audit of the fair value of Level 3 and harder-to-value Level 2 financial instrument assets and liabilities. This included details of our risk assessment, controls and substantive procedures. ▪Our conclusions on the appropriateness of the Group’s fair value methodology, models, pricing inputs, and fair value adjustments. Areas of particular auditor judgement We identified the following as the areas of particular auditor judgement: ▪The appropriateness of the valuation of harder to value Level 2 and Level 3 financial instruments, and particularly the selection of market data inputs and valuation models. Based on the risk identified and our procedures performed we consider the fair value of Level 3 and harder-to-value Level 2 financial instrument assets and liabilities recognised and the related disclosures for the Level 3 portfolios to be acceptable (2021 result: acceptable).

Further information in the Annual Report and Accounts: See the Board Audit Committee Report on page 28 for details on how the Board Audit
Committee considered Valuations as an area of focus, page 177 for the accounting policy on financial assets and liabilities, and page 213 for the
financial disclosure note 16; Fair value of financial instruments.

4.3.VALUATION OF THE GROSS DEFINED BENEFIT PENSION OBLIGATION IN RESPECT OF THE UK RETIREMENT FUND (‘UKRF’)
Financial Statement Elements | Our assessment of risk vs FY21 | Our results
| FY22 | FY21 |  |  |
Defined benefit obligation related to UKRF (note 31) | £20.0bn | £30.9bn |  | Our assessment is that the risk is similar to FY21. | FY22: Acceptable FY21: Acceptable

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 155

Description of the Key Audit Matter | Our response to the risk
Subjective valuation The valuation of the defined benefit obligation in respect of the UKRF is dependent on key actuarial assumptions, including the discount rates, retail price index (‘RPI’) and mortality assumptions. Small changes to these assumptions may still have a significant impact on the measurement of the defined benefit pension obligation. As part of our risk assessment, we determined that the defined benefit pension obligation has a high degree of estimation uncertainty, with a potential range of reasonable outcomes greater than our materiality for the financial statements, and possibly many times that amount. At 31 December 2022, Barclays Bank PLC Group and Parent reported a gross defined benefit pension obligation of £20bn relating to UKRF. Disclosure quality The disclosures regarding the Group and Parent’s application of IAS 19 (including assumptions and sources of estimation uncertainty) are key to explaining the key judgements applied in the IAS 19 Defined Benefit Obligation calculation. | Our procedures to address the risk included: Control testing: We performed end to end process walkthroughs to identify the key systems, applications and controls used in the defined benefit obligation process. We tested the design and operating effectiveness of key controls relating to the process. These included: ▪controls over management’s review of IAS19 assumptions including the discount rate, RPI and mortality assumptions; ▪reconciliation controls of the IAS19 disclosures to underlying data. Evaluation of management’s expert: We evaluated the objectivity and competence of management’s actuarial expert involved in the valuation of the defined benefit pension obligation. Our actuarial expertise: we involved our own actuarial professionals in the following: ▪evaluating the judgements made and the appropriateness of methodologies used by management and management’s actuarial expert in determining the key actuarial assumptions; ▪comparing the assumptions the assumptions used by Barclays Bank PLC to our independently compiled expected ranges based on market observable indices and our market experience; ▪evaluating the output from the triennial funding valuation as at 30 September 2022 and the impact on demographic assumptions and future funding requirements. Assessing transparency: We assessed the adequacy of the Group and Parent's financial statements disclosures in the context of the relevant accounting standards.
Communications with the Barclays Bank PLC Board Audit Committee Our discussions with and reporting to the Board Audit Committee included; ▪Our definition of the Key Audit Matter relating to the valuation of the defined benefit pension obligation Including the rationale for not including the valuation of the pension scheme assets in the key audit matter. ▪We also discussed our audit response to the key audit matter which included the use of specialists to challenge key aspects of management’s actuarial valuation. Areas of particular auditor judgement We identified the following as areas of particular auditor judgement: ▪Subjective and complex auditor judgement was required in evaluating the key actuarial assumptions used by the Group and Parent (including the discount rate, retail price index and mortality assumptions). Our results Based on the risk identified and our procedures performed we consider the valuation of the defined benefit pension obligation in respect of UKRF and the related disclosures to be acceptable (2021 result: acceptable).

Further information in the Annual Report and Accounts: See page 176 for the accounting policy on defined benefit schemes, and page 253 for the
financial disclosure note 31; Pensions and post-retirement benefits.
Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 156

4.4.USER ACCESS MANAGEMENT
Financial Statement Elements | Our assessment of risk vs FY21 | Our results
User access management has a potential impact throughout the financial statements. |  | Our assessment is the risk is similar to FY21 | FY22 and FY21: Our testing did not identify unauthorised user activities in the systems relevant to financial reporting which would have required us to significantly expand the extent of our planned detailed testing.
Description of the Key Audit Matter | Our response to the risk
Control Performance Operations across several countries support a wide range of products and services resulting in a large and complex IT infrastructure are relevant to the financial reporting processes and related internal controls. User access management controls are an integral part of the IT environment to ensure both system access and changes made to systems and data are authorised and appropriate. Our audit approach relies on the effectiveness of IT access management controls. Our audit procedures identified deficiencies in certain IT access controls for systems relevant to financial reporting. More specifically, control deficiencies continue to be identified around monitoring of activities performed by privileged users on a small percentage of infrastructure components. Management has ongoing programmes to remediate the deficiencies. Since these deficiencies were open during the year, we performed additional procedures to respond to the risk of unauthorised changes to automated controls over financial reporting. | Our procedures to address the risk included: Control testing: We tested the design, implementation and operating effectiveness of automated controls that support material balances in the financial statements. We also tested the design and operating effectiveness of the relevant preventative and detective general IT controls over user access management including: ▪authorising access rights for new joiners ▪timely removal of user access rights ▪logging and monitoring of user activities ▪privileged user access management and monitoring ▪developer access to transaction and balance information ▪segregation of duties; and ▪re-certification of user access rights. We performed procedures to assess whether additional detective compensating controls operate at the required level of precision to support our assessed risk of unauthorised activities and we tested management’s incremental detective controls.
Communications with the Barclays Bank PLC Board Audit Committee Our discussions with and reporting to the Board Audit Committee included: ▪Our response to the Key Audit Matter. Areas of particular auditor judgement We identified the following as the areas of particular auditor judgement: ▪The Key Audit Matter relates to determining whether user access management controls were designed and implemented and operated effectively. Limited auditor judgement was required relative to the other Key Audit Matters which have been identified. Our results Based on the risk identified and our procedures performed, we did not identify unauthorised user activities in the systems relevant to financial reporting which would have required us to significantly expand the extent of our planned detailed testing.

4.5.RECOVERABILITY OF PARENT COMPANY'S INVESTMENT IN SUBSIDIARIES
Financial Statement Elements | Our assessment of risk vs FY21 | Our results
| FY22 | FY21 |  |  |
Investment in subsidiaries (Parent company accounts) | £19.3bn | £19.1bn | NEW | This is the first year we have considered the risk to be a Key Audit Matter. This reflects the identification of a significant risk as a result of the impairment of the cost of investment in Barclays Bank Ireland PLC identified during FY22. | FY22: Acceptable
Impairment/ investment in BBI (Note 32) | £2.5bn | £0bn

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 157

Description of the Key Audit Matter | Our response to the risk
Subjective assessment The Parent Company’s investment in subsidiaries may be misstated if the carrying value of the investment in the balance sheet is not supported by the future cash flows of the underlying business (the value in use (“VIU”)). As a result of the annual impairment review Barclays Bank PLC perform, it was identified that the recoverable amount for Barclays Bank Ireland (‘BBI’) was below the Parent Company’s investment in BBI. As a result management performed an impairment assessment where they calculated the value in use of the subsidiary, recognising an impairment against the Parent Company’s investment in BBI. The calculation of VIU is dependent on certain key assumptions including the discount rate which is applied to the forecasted cashflows used in the value in use calculation. The discount rate, which is judgemental is derived from a combination of management estimates, market data and other information obtained from external sources. The discount rate continues to be impacted by the economic uncertainty in the wider economic environment. This has contributed to the complexity and subjectivity in the impairment assessment process. Our work focused on the Parent Company’s investment in BBI given the material size of the cost of investment and impairment loss recognised during 2022. The effect of these matters is that, as part of our risk assessment, we determined that the recoverable amount of the cost of investment in subsidiaries has a high degree of estimation uncertainty, with a potential range of reasonable outcomes greater than our materiality for the financial statements as a whole. | Our procedures to address the risk included: Control testing: We performed end to end process walkthroughs to identify the key systems, applications and controls used in the process. We tested the design and operating effectiveness of the key controls relating to the process. These included controls over the identification of indicators of impairment or reversal of impairment and review of the key assumptions, including the discount rate, which is used in determining the value in use. Test of details: We compared the carrying amount of each subsidiary to its draft balance sheet to identify whether their net assets, being an approximation of their minimum recoverable amount, were in excess of their carrying amount. We assessed for potential indicators that investments in subsidiaries might be impaired. Benchmarking assumptions: We compared key BBI assumptions including those underlying certain estimated future cash flows, the discount rate and the terminal growth rate to externally derived data including analyst broker reports, peer bank data and projected economic growth. Our valuations expertise: We involved our own valuations specialists to assist us in the following: ▪evaluating the appropriateness of the discount rate used in the BBI impairment assessment by independently developing discount rate ranges using external data sources and peer bank data; and ▪assessing whether the methodology over management’s calculation of the BBI VIU is compliant with the requirements of the accounting standard. Our business understanding: We used our business understanding to evaluate the reasonableness of certain key assumptions and considerations made when developing BBI’s MTP estimated future cash flows. Historical comparison: We performed a retrospective review by comparing the BBI MTP from previous years to actual results to assess the entity’s ability to accurately prepare cash flow forecasts at the individual subsidiary level.
Communications with the Barclays Bank PLC Board Audit Committee Our discussions with and reporting to the Board Audit Committee included: ▪Our audit response to the Key Audit Matter which included the use of specialists to challenge key aspects of management’s BBI impairment assessment and the range of reasonably possible alternatives for significant assumptions. Areas of particular auditor judgement We identified the following as the areas of particular judgement: ▪We identified the reasonableness of the assumptions underlying the estimated future cash flows and appropriateness of the discount rate, which was used in the BBI impairment assessment, as the areas of particular judgement. Our results Based on our procedures performed, we consider the Parent Company’s investment in subsidiaries balance, impairment balance and the related disclosures to be acceptable.

Further information in the Annual Report and Accounts: See page 262 for the accounting policy on the recoverability of the investment in subsidiaries
and page 262 for the financial disclosure note 32; Principal subsidiaries.
Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 158

5.OUR ABILITY TO DETECT IRREGULARITIES, AND OUR RESPONSE

FRAUD - IDENTIFYING AND RESPONDING TO RISKS OF MATERIAL MISSTATEMENT DUE TO FRAUD
FRAUD RISK ASSESSMENT | To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. In this risk assessment we considered the following: ▪Our meetings throughout the year with the Group Head of Risk, Group Head of Compliance and Group Head of Legal and inspection of Barclays’ internal ethics and compliance reporting summaries, including those concerning investigations and regulatory correspondence; ▪Enquiries of operational managers, internal audit, and the Board Audit Committee and inspection of policy documentation as to the Group’s high-level policies and procedures relating to: ◦detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and ◦the internal controls established to mitigate risks related to fraud, including the appropriateness and impact of changes made to these controls to facilitate remote/hybrid working; ▪The Group’s remuneration policies and key drivers for remuneration and bonus levels; ▪Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. The engagement team includes audit partners and staff who have extensive experience of working with banks, and this experience was relevant to the discussion about where fraud risks may arise. The discussions also involved our forensic specialists to assist us in identifying fraud risks based on discussions of the circumstances of the Group and Company, including consideration of fraudulent schemes that had arisen in similar sectors and industries. The forensic specialists participated in the initial fraud risk assessment discussions and were consulted throughout the audit where further guidance was deemed necessary.
FRAUD RISK COMMUNICATION | We communicated identified fraud risks throughout the audit team and we remained alert to any indications of fraud throughout the audit. This included communication from the Group to component audit teams of relevant fraud risks identified at the Group level.
FRAUD RISKS AND OUR PROCEDURES TO ADDRESS THEM | We identified five fraud risks which were communicated to component audit teams. The nature of these fraud risks is substantially unchanged from the prior year. The fraud risks we identified are set out below: 1)IFRS 9 ECL: Judgemental qualitative adjustments made to the ECL provision 2)Valuations- risk relating to unobservable pricing inputs used to price level 3 fair value instruments 3)Revenue recognition: Cut-off of the recognition of revenue from investment banking advisory fees 4)Existence and accuracy of unconfirmed over-the-counter bilateral derivatives 5)The risk of management override of controls, common with all audits under ISAs (UK). As required by auditing standards and taking into account our overall knowledge of the control environment, we perform procedures to address the above risks, the risk that Group and component management may be in a position to make inappropriate accounting entries and the risk of bias in accounting estimates and judgements. Our audit procedures included evaluating the design and implementation and operating effectiveness of relevant internal controls, assessing significant accounting estimates for bias, as well as substantive procedures to address the fraud risks. These procedures also included identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. Incorporating unpredictability into our audit: A requirement of the auditing standards is that we undertake procedures which are deliberately unexpected and could not have reasonably been predicted by Barclays’ management. As an example, we update our criteria for selecting journals with a higher risk of management override for testing each year so that the selection criteria do not become predictable. This year we added additional key words we searched for in journal descriptions and also introduced new search criteria for journals posted and approved by the same individuals.
LINK TO KEY AUDIT MATTERS | Further details of the testing we perform over the identified fraud risks for ECL and fair value of financial instruments are included in the respective key audit matters sections 4.1 and 4.2 of this report, as the procedures relating to those estimates also address the risk of fraud.

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 159

LAWS AND REGULATIONS - IDENTIFYING AND RESPONDING TO RISKS OF MATERIAL MISSTATEMENT DUE TO NON- COMPLIANCE WITH LAWS AND REGULATIONS
RISK ASSESSMENT | We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements. For this risk assessment, matters considered included the following: ▪our general commercial and sector experience; ▪inquiries with the directors and other management (as required by auditing standards); ▪inspection of the Group’s key regulatory and legal correspondence; ▪inspection of the policies and procedures regarding compliance with laws and regulations; ▪relevant discussions with the Group’s external legal counsel; ▪relevant discussions with the Group’s key regulatory supervisors including the Prudential Regulation Authority, Financial Conduct Authority, Federal Reserve Board, Federal Deposit Insurance Corporation and the Joint Supervisory Team; and ▪the Group’s own assessment of the risks of non-compliance with laws and regulations, and the internal controls established to mitigate these. This assessment was considered and approved by the Board. Our risk assessment also considered instances of non-compliance with laws and regulations and enforcement actions against the Group during the year and specifically those that could reasonably be expected to have a material effect on the financial statements. We considered management’s assessment of how these occurred, their assessment of whether the risk could be more pervasive, and actions taken to remediate and prevent recurrences or similar issues. As the Group operates in a highly regulated environment, our assessment of risks of material misstatement also considered the control environment, including the Group’s higher-level procedures for complying with regulatory requirements. Our assessment included inspection of key frameworks, policies and standards in place, understanding and evaluating the role of the compliance function in establishing these and monitoring compliance and testing of related controls around whistleblowing and complaints.
RISK COMMUNICATION | Our identified laws and regulations risks was communicated throughout our team and we remained alert to any indications of non-compliance throughout the audit. This included communication from the Group to component audit teams of relevant laws and regulations identified at Group level.
DIRECT LAWS CONTEXT AND LINK TO AUDIT | The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Group is subject to laws and regulations that directly impact the financial statements including: ▪financial reporting legislation (including related companies’ legislation); ▪distributable profits legislation; and ▪taxation legislation (direct and indirect). We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
MOST SIGNIFICANT INDIRECT LAW/ REGULATION AREAS | Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the Group’s permission to operate in countries where the non-adherence to laws could prevent trading in such countries. We identified the following areas as those most likely to have such an effect: ▪Specific aspects of regulatory capital and liquidity ▪Other banking laws and regulations ▪Customer conduct rules ▪Money laundering ▪Sanctions list and financial crime ▪Market abuse regulations ▪Certain aspects of company legislation recognising the financial and regulated nature of the Group’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. If a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 160

AUDIT RESPONSE | In relation to the legal, competition and regulatory matters disclosed in note 25 we performed audit procedures which included making enquiries of Barclays internal counsel and inspection of minutes of meetings and regulatory correspondence. For a subset of these matters which we deemed to be more significant we also made enquiries of external counsel and obtained legal confirmations from Barclays’ external counsel. In respect of regulatory matters relating to conduct risk as disclosed in note 40 our procedures included inspection of regulatory correspondence, independent enquiry of the Group’s main regulators and performing audit procedures to respond to risks of material misstatement identified in recognised conduct provisions. We also specifically considered the sale of securities in excess of the amount of securities registered with the SEC under Barclays Bank PLC’s shelf registration statements, as disclosed by management in note 25, and which resulted in a restatement of the 2021 comparatives. Our audit approach in respect of the over-issuance included the following procedures and we reported the results of these to the Board Audit Committee: –Performance of risk assessment procedures which included inspecting correspondence with regulators and making enquires of Barclays internal and external counsel. –Testing the design and operating effectiveness of the controls covering the calculation and utilisation of the recission right provision and the identification of debt-issuance programme issuance limits and the monitoring of the utilisation against these. –Performing substantive procedures over the determination and utilisation of the recission right provision.
CONTEXT OF THE ABILITY OF THE AUDIT TO DETECT FRAUD OR BREACHES OF LAW OR REGULATION | Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

6.OUR DETERMINATION OF MATERIALITY
The scope of our audit was influenced by our application of materiality. We set quantitative thresholds and overlay qualitative considerations to help us
determine the scope of our audit and the nature, timing and extent of our procedures, and in evaluating the effect of misstatements, both individually
and in the aggregate, on the financial statements as a whole.

MATERIALITY FOR THE FINANCIAL STATEMENTS AS A WHOLE 2022: £170m 2021: £170m | What we mean A quantitative reference for the purpose of planning and performing our audit
Basis for determining materiality and judgements applied We have determined overall materiality for the Barclays Bank PLC Group to be £170m (FY21: £170m). A key judgement in determining materiality (and performance materiality) is the appropriate benchmark to select, based on our perception of the needs of shareholders. We considered which benchmarks and key performance indicators have the greatest bearing on shareholder decisions We determined that profit before tax remains the key benchmark for the Barclays Bank PLC Group. For FY21 we normalised profit before tax downward by £1.4bn to adjust for the fact that ECL charges were considered abnormally low as the economy recovered from the COVID-19 pandemic. For FY22 we did not normalise profit before tax. This is reflective of the impact of COVID-19 on ECL being less pronounced in the current period. We determined that no adjustments to profit before tax were required for FY22. Our materiality of £170m (2021: £170m) was determined by applying a percentage to Profit Before Tax. When using a profit-related measure to determine overall materiality, KPMG’s approach is to apply a percentage between 3% and 5% to the pre-tax measure. In setting overall materiality, we applied a rate of 3.5% (2021: 3.8%) which is lower than the top end of the allowable percentage range. Materiality for the Parent Company financial statements was set at £130m (2021: £130m), determined with reference to a benchmark of Parent Company profit before tax from continuing operations (of which it represents 4.7% (2021: 4% of the referenced benchmark of normalised profit before tax from continuing operations).

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 161

PERFORMANCE MATERIALITY 2021: £111m 2020: £125m | What we mean Our procedures on individual account balances and disclosures were performed to performance materiality, so as to reduce to an acceptable level the risk that individually immaterial misstatements in individual account balances add up to a material amount across the financial statements as a whole.
Basis for determining performance materiality and judgements applied We have considered performance materiality at a level of 65% (2021: 74%) of materiality for Barclays Bank PLC Group’s financial statements as a whole to be appropriate. We applied this percentage in our determination of performance materiality because we did not identify any factors indicating an elevated level of risk. The Group performance materiality was set at £111m (2021: £125m) and £85m (2021: £98m) for the parent company.
AUDIT MISSTATEMENT POSTING THRESHOLD 2022: £8m 2021: £8m |
What we mean This is the amount below which identified misstatements are considered to be clearly trivial from a quantitative point of view. We may become aware of differences below this threshold which could alter the nature, timing and scope of our audit procedures, for example if we identify smaller differences which are indicators of fraud. This is also the amount above which all differences identified are communicated to Barclays Bank PLC’s Board Audit Committee.
Basis for determining the audit misstatement reporting threshold and judgements applied The audit misstatement posting threshold has been set at a level of 5% (2021: 5%) of materiality for Barclays Bank PLC’s Group financial statements. We consider this appropriate based on the number and nature of audit differences (adjusted and unadjusted) identified during previous audits. We also report to the Audit Committee any other identified misstatements that warrant reporting on qualitative grounds.

The overall materiality for the Group of £170m (2021: £170m) compares as follows to the other main financial statement elements amounts.

| Total Revenue | Total Assets | Net Assets
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021
| £18,194m | £15,408m | £1,203,537m | £1,061,778m | £58,953m | £56,317m
Group Materiality as % of caption | 0.93% | 1.10% | 0.01% | 0.02% | 0.29% | 0.30%

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 162

7.THE SCOPE OF OUR AUDIT

GROUP SCOPE |  |  |  |
| What we mean How the Group audit team determined the procedures to be performed across the Group.
| We have subjected three (2021: three) of the Group’s seven components to full scope audits for Group purposes. Our approach to scoping the three components was as follows: for two components, Barclays Bank Delaware and Barclays Capital Inc, we directly instructed the component audit teams to conduct and report to us on full scope audits; the third full scope component, Barclays Bank Solus, was subjected to a full scope audit by us. We have subjected four (2021: four) of the Group’s components to an audit of certain account balances. For Barclays Bank Ireland PLC and Barclays Capital Securities Ltd, we directly instructed the component audit team to conduct and report to us on an audit of certain account balances. We have subjected Barclays Bank Subsidiaries and Barclays Bank Intermediate Holding Companies (IHC) Subsidiaries to an audit of certain account balances carried out by us, these components represent less than 2% of total Barclays Bank PLC Group assets.
| Scope | Number of components | Range of materiality applied
| Full scope audit | 3 | £50m - £130m
| Audit of account balance | 4 | £40 - £50m
| Barclays Bank PLC has centralised certain Group-wide processes in India, the outputs of which are included in the financial information of the reporting components it services and therefore is not a separate reporting component. These Group-wide procedures are subject to specified audit procedures, predominantly the testing of transaction processing, reconciliations and review controls. Additional procedures are performed at certain reporting components to address the audit risks not covered by the work performed over the shared service centres. The Group audit team have also performed audit procedures centrally across the Group in the following areas: ▪Testing of IT systems and automated business controls. and ▪Operating expenses and Group recharges. In addition, outside of the components subject to audit procedures set out above, we have performed Group level analysis on the remaining components to determine whether further risks of material misstatement exist in those components. We were able to rely upon the Group's internal control over financial reporting in all areas of our audit, and where our controls testing supported this approach, which enabled us to reduce the scope of our substantive audit work.
GROUP AUDIT TEAM OVERSIGHT |  |  |  |
| What we mean The extent of the Group audit team’s involvement in component audits.
| A hybrid communication and oversight strategy was implemented between the Group audit team and the components during the year as opposed to virtual oversight during the COVID 19 pandemic. This included: –A virtual global planning conference led by the Group audit team to discuss key audit risks and obtain input from component teams and other participating locations; –The components in scope for Group reporting purposes were either visited by the Group audit team to assess the audit risk and strategy, or such review occurred remotely. Conference meetings and calls were also held with these component auditors throughout the conduct of the audit. At these visits and meetings, we reviewed the components’ key working papers, the findings reported to the Group team were discussed in more detail, and any further work required by the Group team was then performed by the component auditors; –Instructions issued by the Group audit team to component auditors setting out the significant areas to be covered, including the relevant key audit matters identified above and the information to be reported back to the Group audit team. For example, minimum criteria for high-risk journals were set by the Group team and applied consistently across the audit; –Review and approval by the Group audit team of the component materiality for all components; –Risk assessment and challenge sessions with each component audit team in the planning and final phases of the audit led by the Group engagement partner and audit quality partner. This was carried out through a combination of in person and virtual meetings and file review; –Fortnightly video conferences with the partners and directors of the Group and component audit teams along with regular ad-hoc contact in person and via video calls and email exchanges to challenge the component audit approach and findings; –Stuart Crisp, the Group Lead Engagement Partner (and Senior Statutory Auditor), attended each Board Audit Committee for Barclays Bank PLC and at least one Board Audit Committee for each of the IHC covering Barclays Capital Inc. and Barclays Bank Delaware, and Barclays Bank Europe; –Review of key working papers within component audit files (using remote technology capabilities) to understand and challenge the audit approach and audit findings of each component.

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 163

8.OTHER INFORMATION IN THE ANNUAL REPORT
The directors are responsible for the other information presented in the Annual Report together with the financial statements. Our opinion on the
financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any
form of assurance conclusion thereon.

ALL OTHER INFORMATION

Our responsibility Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge | Our reporting Based solely on that work we have not identified material misstatements or inconsistencies in the other information
STRATEGIC REPORT AND THE DIRECTORS' REPORT |
Our responsibility and reporting Based solely on that work on the other information described above we report to you as follows: •we have not identified material misstatements in the strategic report and the directors’ reports; •in our opinion the information given in the strategic report and the directors’ report for the financial year is consistent with the financial statements; and •in our opinion those reports have been prepared in accordance with the Companies Act 2006. |

OTHER MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

Our responsibility Under the Companies Act 2006, we are required to report to you if, in our opinion: ▪adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ▪the Parent Company financial statements are not in agreement with the accounting records and returns; or ▪certain disclosures of directors’ remuneration specified by law are not made; or ▪we have not received all the information and explanations we require for our audit. | Our reporting We have nothing to report in these respects

9.EUROPEAN SINGLE ELECTRONIC FORMAT (ESEF)
Barclays Bank PLC has prepared its consolidated financial statements, which comprise the consolidated income statement, consolidated statement of
comprehensive income, consolidated statement of changes in equity, consolidated balance sheet, and consolidated cash flow statement and the related
notes, in ESEF. The requirements for this format are set out in the Commission Delegated Regulation (EU) 2019/815 with regard to regulatory technical
standards on the specification of a single electronic reporting format (“the ESEF Regulation”).
The Directors are responsible for preparing the financial statements in accordance with the ESEF regulation. We were engaged by Barclays Bank PLC to
report on whether the consolidated financial statements are prepared, in all material respects, in accordance with the ESEF regulation.
We have examined the consolidated financial statements in order to determine whether the consolidated financial statements of the Group as at 31
December 2022 have been prepared in compliance with the relevant requirements in the ESEF Regulation that are applicable to financial statements.
This relates to financial statements prepared in a valid xHTML format, and the XBRL markup of the consolidated financial statements using the core
taxonomy and the common rules on markups specified in the ESEF Regulation.
In our opinion the consolidated financial statements of Barclays Bank PLC as at 31 December 2022, identified as bbplc-2022-12-31 have been prepared,
in all material respects, in compliance with the requirements of the ESEF Regulation.
10.RESPECTIVE RESPONSIBILITIES
Directors’ responsibilities
As explained more fully in their statement set out on page 30 and 31, the Directors are responsible for: the preparation of the financial statements
including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error; assessing the Group and Parent Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to
liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 164

Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due
to fraud or other irregularities, or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance but does not
guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise
from fraud, other irregularities or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.
11.THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and the terms of
our engagement by the Company. Our audit work has been undertaken so that we might state to the Company’s members those matters we are
required to state to them in an auditor’s report and the further matters we are required to state to them in accordance with the terms agreed with the
Company, and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.
Stuart Crisp
(Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square
London
E14 5GL
14 February 2023
Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank PLC

home.barclays/annualreport | Barclays Bank PLC Annual Report | 165

|  |  | Restated a |
|  | 2022 | 2021 | 2020
For the year ended 31 December | Notes | £m | £m | £m
Continuing operations |  |  |  |
Interest and similar income | 3 | 11,779 | 5,672 | 6,006
Interest and similar expense | 3 | (6,381) | (2,599) | (2,846)
Net interest income |  | 5,398 | 3,073 | 3,160
Fee and commission income | 4 | 8,171 | 8,581 | 7,417
Fee and commission expense | 4 | (2,745) | (1,994) | (1,758)
Net fee and commission income |  | 5,426 | 6,587 | 5,659
Net trading income | 5 | 7,624 | 5,788 | 7,076
Net investment expense | 6 | (323) | (80) | (121)
Other income |  | 69 | 40 | 4
Total income |  | 18,194 | 15,408 | 15,778
Staff costs | 29 | (5,192) | (4,456) | (4,365)
Infrastructure costs | 7 | (900) | (1,054) | (816)
Administration and general expenses | 7 | (4,879) | (4,375) | (4,202)
Litigation and conduct | 7 | (1,427) | (374) | (76)
Operating expenses | 7 | (12,398) | (10,259) | (9,459)
Share of post-tax results of associates and joint ventures |  | 3 | 4 | 7
Profit/(loss) on disposal of subsidiaries, associates and joint ventures |  | 1 | (12) | 126
Profit before Impairment |  | 5,800 | 5,141 | 6,452
Credit impairment (charges)/releases | 8 | (933) | 277 | (3,377)
Profit before tax |  | 4,867 | 5,418 | 3,075
Taxation | 9 | (485) | (830) | (624)
Profit after tax |  | 4,382 | 4,588 | 2,451
Attributable to: |  |  |  |
Equity holders of the parent |  | 3,650 | 3,957 | 1,774
Other equity instrument holders |  | 732 | 631 | 677
Total equity holders of the parent |  | 4,382 | 4,588 | 2,451
Profit after tax |  | 4,382 | 4,588 | 2,451

Note
a.2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
Note
As permitted by section 408 of the Companies Act 2006 an income statement for the parent company has not been presented. Included in shareholders’ equity for Barclays
Bank PLC is a profit after tax for the year ended 31 December 2022 of £2,784m (2021: £3,436m).
Consolidated financial statements
Consolidated income statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 166

|  | Restated b |
| 2022 | 2021 | 2020
For the year ended 31 December | £m | £m | £m
Profit after tax | 4,382 | 4,588 | 2,451
Other comprehensive income/(loss) that may be recycled to profit or loss: |  |  |
Currency translation reserve |  |  |
Currency translation differences a | 2,411 | (155) | (647)
Fair value through other comprehensive income reserve movement relating to debt securities |  |  |
Net (losses)/gains from changes in fair value | (6,376) | (1,383) | 2,402
Net losses/(gains) transferred to net profit on disposal | 68 | (248) | (251)
Net losses/(gains) related to (releases of) impairment | 8 | (6) | 1
Net gains/(losses) due to fair value hedging | 4,627 | 1,105 | (1,640)
Tax | 449 | 170 | (130)
Cash flow hedging reserve |  |  |
Net (losses)/gains from changes in fair value | (7,290) | (2,212) | 1,366
Net gains/(losses) transferred to net profit | 543 | (327) | (282)
Tax | 1,808 | 740 | (291)
Other | — | — | 3
Other comprehensive (loss)/income that may be recycled to profit or loss | (3,752) | (2,316) | 531
Other comprehensive income/(loss) not recycled to profit or loss: |  |  |
Retirement benefit remeasurements | (755) | 1,299 | (77)
Fair value through other comprehensive income reserve movements relating to equity instruments | — | — | 1
Own credit | 2,092 | (105) | (810)
Tax | (156) | (563) | 198
Other comprehensive income/(loss) not recycled to profit or loss | 1,181 | 631 | (688)
Other comprehensive loss for the year | (2,571) | (1,685) | (157)
Total comprehensive income for the year | 1,811 | 2,903 | 2,294
Attributable to: |  |  |
Equity holders of the parent | 1,811 | 2,903 | 2,294
Total comprehensive income for the year | 1,811 | 2,903 | 2,294

Notes
a Includes £1m gain (2021: £20m loss; 2020: £8m loss) on recycling of currency translation differences.
b 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
Consolidated financial statements
Consolidated statement of comprehensive income

home.barclays/annualreport | Barclays Bank PLC Annual Report | 167

|  |  | Restated a
|  | 2022 | 2021
As at 31 December | Notes | £m | £m
Assets |  |  |
Cash and balances at central banks |  | 202,142 | 169,085
Cash collateral and settlement balances |  | 107,862 | 88,085
Loans and advances at amortised cost | 18 | 182,507 | 145,259
Reverse repurchase agreements and other similar secured lending |  | 725 | 3,177
Trading portfolio assets | 11 | 133,771 | 146,871
Financial assets at fair value through the income statement | 12 | 211,128 | 188,226
Derivative financial instruments | 13 | 302,976 | 262,291
Financial assets at fair value through other comprehensive income | 14 | 45,084 | 45,908
Investments in associates and joint ventures | 34 | 26 | 24
Goodwill and intangible assets | 21 | 1,665 | 1,449
Property, plant and equipment | 19 | 1,379 | 1,248
Current tax assets |  | 737 | 589
Deferred tax assets | 9 | 4,583 | 2,981
Retirement benefit assets | 31 | 4,743 | 3,879
Other assets |  | 4,209 | 2,706
Total assets |  | 1,203,537 | 1,061,778
Liabilities |  |  |
Deposits at amortised cost | 18 | 291,579 | 262,828
Cash collateral and settlement balances |  | 96,811 | 79,047
Repurchase agreements and other similar secured borrowing |  | 11,965 | 12,769
Debt securities in issue |  | 60,012 | 48,388
Subordinated liabilities | 26 | 38,253 | 32,185
Trading portfolio liabilities | 11 | 72,460 | 53,291
Financial liabilities designated at fair value | 15 | 272,055 | 251,131
Derivative financial instruments | 13 | 289,206 | 256,523
Current tax liabilities |  | 422 | 688
Deferred tax liabilities | 9 | — | 6
Retirement benefit liabilities | 31 | 184 | 246
Other liabilities | 22 | 10,779 | 7,249
Provisions | 23 | 858 | 1,110
Total liabilities |  | 1,144,584 | 1,005,461
Equity |  |  |
Called up share capital and share premium | 27 | 2,348 | 2,348
Other equity instruments | 27 | 10,691 | 9,693
Other reserves | 28 | (1,464) | 861
Retained earnings |  | 47,378 | 43,415
Total equity |  | 58,953 | 56,317
Total liabilities and equity |  | 1,203,537 | 1,061,778

Notes
a.2021 financial metrics have been restated to reflect the impact of the O ver-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
The Board of Directors approved the financial statements on pages 148 to 262 on 14 February 2023
CS Venkatakrishnan
Barclays Bank Group – Chief Executive Officer
Steven Ewart
Barclays Bank Group – Chief Financial Officer
Consolidated financial statements
Consolidated balance sheet

home.barclays/annualreport | Barclays Bank PLC Annual Report | 168

|  |  |  | Restated c | Restated c
| Called up share capital and share premium a | Other equity instruments a | Other reserves b | Retained earnings | Total equity
| £m | £m | £m | £m | £m
Balance as at 1 January 2022 | 2,348 | 9,693 | 861 | 43,415 | 56,317
Profit after tax | — | 732 | — | 3,650 | 4,382
Currency translation movements | — | — | 2,411 | — | 2,411
Fair value through other comprehensive income reserve | — | — | (1,224) | — | (1,224)
Cash flow hedges | — | — | (4,939) | — | (4,939)
Retirement benefit remeasurement | — | — | — | (282) | (282)
Own credit reserve | — | — | 1,463 | — | 1,463
Total comprehensive income for the year | — | 732 | (2,289) | 3,368 | 1,811
Issue and redemption of other equity instruments | — | 998 | — | 38 | 1,036
Other equity instruments coupons paid | — | (732) | — | — | (732)
Employee share schemes | — | — | — | 419 | 419
Vesting of Barclays PLC shares under share-based payment schemes | — | — | — | (413) | (413)
Dividends on ordinary shares | — | — | — | (200) | (200)
Dividends on preference shares and other shareholders equity | — | — | — | (31) | (31)
Own credit realisation | — | — | (36) | 36 | —
Capital contribution from Barclays PLC | — | — | — | 750 | 750
Other reserve movements | — | — | — | (4) | (4)
Balance as at 31 December 2022 | 2,348 | 10,691 | (1,464) | 47,378 | 58,953

Notes
a For further details refer to Note 27.
b For further details refer to Note 28.
c 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
Consolidated financial statements
Consolidated statement of changes in equity

home.barclays/annualreport | Barclays Bank PLC Annual Report | 169

|  |  |  | Restated c | Restated c
| Called up share capital and share premium a | Other equity instruments a | Other reserves b | Retained earnings | Total equity
| £m | £m | £m | £m | £m
Balance as at 1 January 2021 | 2,348 | 8,621 | 3,183 | 39,558 | 53,710
Profit after tax | — | 631 | — | 3,957 | 4,588
Currency translation movements | — | — | (155) | — | (155)
Fair value through other comprehensive income reserve | — | — | (362) | — | (362)
Cash flow hedges | — | — | (1,799) | — | (1,799)
Retirement benefit remeasurement | — | — | — | 644 | 644
Own credit reserve | — | — | (13) | — | (13)
Total comprehensive income for the year | — | 631 | (2,329) | 4,601 | 2,903
Issue and redemption of other equity instruments | — | 1,072 | — | 3 | 1,075
Other equity instruments coupons paid | — | (631) | — | — | (631)
Employee share schemes | — | — | — | 436 | 436
Vesting of Barclays PLC shares under share-based payment schemes | — | — | — | (356) | (356)
Dividends on ordinary shares | — | — | — | (794) | (794)
Dividends on preference shares and other shareholders equity | — | — | — | (27) | (27)
Other reserve movements | — | — | 7 | (6) | 1
Balance as at 31 December 2021 | 2,348 | 9,693 | 861 | 43,415 | 56,317

Notes
a For further details refer to Note 27.
b For further details refer to Note 28.
c 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
Consolidated financial statements
Consolidated statement of changes in equity

home.barclays/annualreport | Barclays Bank PLC Annual Report | 170

|  |  | Restated a |
|  | 2022 | 2021 | 2020
For the year ended 31 December | Notes | £m | £m | £m
Reconciliation of profit before tax to net cash flows from operating activities: |  |  |  |
Profit before tax |  | 4,867 | 5,418 | 3,075
Adjustment for non-cash items: |  |  |  |
Credit impairment charges/(releases) |  | 933 | (277) | 3,377
Depreciation, amortisation and impairment of property, plant, equipment and intangibles |  | 483 | 683 | 441
Other provisions, including pensions |  | 1,188 | 85 | 634
Net loss/(profit) on disposal of investments and property, plant and equipment |  | 8 | 12 | (119)
Other non-cash movements including exchange rate movements |  | (13,491) | 1,968 | (2,362)
Changes in operating assets and liabilities |  |  |  |
Net (increase)/decrease in cash collateral and settlement balances |  | (1,078) | 3,633 | 4,098
Net (increase)/decrease in loans and advances at amortised cost |  | (30,617) | (7,190) | 7,142
Net decrease/(increase) in reverse repurchase agreements and other similar secured lending |  | 2,452 | 5,804 | (7,250)
Net increase in deposits at amortised cost |  | 28,751 | 18,132 | 31,148
Net increase/(decrease) in debt securities in issue |  | 11,624 | 18,965 | (4,113)
Net (decrease)/increase in repurchase agreements and other similar secured borrowing |  | (804) | 2,326 | 8,411
Net increase in derivative financial instruments |  | (8,002) | (3,655) | (1,604)
Net decrease/(increase) in trading portfolio assets |  | 13,100 | (19,207) | (14,327)
Net increase in trading portfolio liabilities |  | 19,169 | 7,152 | 10,927
Net (increase)/decrease in financial assets and liabilities at fair value through the income statement |  | (1,978) | (14,960) | 2,889
Net increase in other assets |  | (3,311) | (2,235) | (93)
Net increase in other liabilities |  | 1,834 | 2,082 | 13
Corporate income tax paid |  | (144) | (1,239) | (12)
Net cash from operating activities |  | 24,984 | 17,497 | 42,275
Purchase of debt securities at amortised cost |  | (20,014) | (6,931) | (7,890)
Proceeds from redemption or sale of debt securities at amortised cost |  | 12,925 | 2,424 | 3,527
Purchase of financial assets at fair value through other comprehensive income |  | (43,139) | (44,058) | (57,640)
Proceeds from sale or redemption of financial assets at fair value through other comprehensive income |  | 42,157 | 47,601 | 53,367
Purchase of property, plant and equipment and intangibles |  | (540) | (758) | (303)
Disposal of subsidiaries and associates, net of cash disposed |  | — | 65 | 736
Other cash flows associated with investing activities |  | — | 4 | 11
Net cash from investing activities |  | (8,611) | (1,653) | (8,192)
Dividends paid and other coupon payments on equity instruments |  | (963) | (1,452) | (982)
Issuance of subordinated liabilities | 26 | 15,381 | 9,099 | 3,856
Redemption of subordinated liabilities | 26 | (8,367) | (7,241) | (4,746)
Issue of shares and other equity instruments |  | 3,134 | 1,072 | 1,134
Repurchase of shares and other equity instruments |  | (2,136) | — | (903)
Capital contribution |  | 750 | — | —
Vesting of employee share schemes |  | (413) | (356) | (300)
Net cash from financing activities |  | 7,386 | 1,122 | (1,941)
Effect of exchange rates on cash and cash equivalents |  | 10,235 | (4,231) | 1,669
Net increase in cash and cash equivalents |  | 33,994 | 12,735 | 33,811
Cash and cash equivalents at beginning of year |  | 185,860 | 173,125 | 139,314
Cash and cash equivalents at end of year |  | 219,854 | 185,860 | 173,125
Cash and cash equivalents comprise: |  |  |  |
Cash and balances at central banks |  | 202,142 | 169,085 | 155,902
Loans and advances to banks with original maturity less than three months |  | 6,229 | 6,473 | 7,281
Cash collateral balances with central banks with original maturity less than three months |  | 10,625 | 9,690 | 9,086
Treasury and other eligible bills with original maturity less than three months |  | 858 | 612 | 856
Cash and cash equivalents at end of year |  | 219,854 | 185,860 | 173,125

Note
a 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
Interest received by the Barclays Bank Group was £33,657m (2021: £11,616m) and interest paid by the Barclays Bank Group was £26,566m (2021:
£7,493m). These amounts include interest paid and received arising from trading activities.
The Barclays Bank Group is required to maintain balances with central banks and other regulatory authorities and these amounted to £3,038m (2021:
£4,260m).
Consolidated financial statements
Consolidated cash flow statement

home.barclays/annualreport | Barclays Bank PLC Annual Report | 171

Balance sheet |  |  |
|  |  | Restated b
|  | 2022 | 2021
As at 31 December | Notes | £m | £m
Assets |  |  |
Cash and balances at central banks |  | 170,307 | 144,964
Cash collateral and settlement balances |  | 82,371 | 75,571
Loans and advances at amortised cost | 18 | 225,783 | 199,782
Reverse repurchase agreements and other similar secured lending |  | 5,908 | 4,982
Trading portfolio assets | 11 | 83,043 | 96,724
Financial assets at fair value through the income statement | 12 | 247,325 | 236,577
Derivative financial instruments | 13 | 258,708 | 234,409
Financial assets at fair value through other comprehensive income | 14 | 43,086 | 44,163
Investments in associates and joint ventures | 34 | 12 | 12
Investment in subsidiaries | 32 | 19,264 | 19,134
Goodwill and intangible assets | 21 | 107 | 109
Property, plant and equipment | 19 | 110 | 128
Current tax assets |  | 891 | 671
Deferred tax assets | 9 | 3,114 | 1,679
Retirement benefit assets | 31 | 4,695 | 3,825
Other assets |  | 3,188 | 1,941
Total assets |  | 1,147,912 | 1,064,671
Liabilities |  |  |
Deposits at amortised cost | 18 | 313,895 | 286,761
Cash collateral and settlement balances |  | 64,955 | 56,419
Repurchase agreements and other similar secured borrowing |  | 26,307 | 29,202
Debt securities in issue |  | 40,166 | 32,585
Subordinated liabilities | 26 | 37,656 | 31,875
Trading portfolio liabilities | 11 | 52,093 | 50,116
Financial liabilities designated at fair value | 15 | 300,851 | 291,062
Derivative financial instruments | 13 | 250,567 | 227,991
Current tax liabilities |  | 303 | 342
Deferred tax liabilities | 9 | — | 6
Retirement benefit liabilities | 31 | 80 | 104
Other liabilities | 22 | 7,980 | 4,597
Provisions | 23 | 592 | 919
Total liabilities |  | 1,095,445 | 1,011,979
Equity |  |  |
Called up share capital and share premium | 27 | 2,348 | 2,348
Other equity instruments | 27 | 15,398 | 14,400
Other reserves | 28 | (4,552) | (1,236)
Retained earnings |  | 39,273 | 37,180
Total equity |  | 52,467 | 52,692
Total liabilities and equity |  | 1,147,912 | 1,064,671

Notes
a As permitted by section 408 of the Companies Act 2006 an income statement for the parent company has not been presented. Included in shareholders’ equity for
Barclays Bank plc is a profit after tax for the year ended 2022 of £2,784m (2021: £3,436m).
b 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
The Board of Directors approved the financial statements on pages 148 to 262 on 14 February 2023.
CS Venkatakrishnan
Barclays Bank Group – Chief Executive Officer
Steven Ewart
Barclays Bank Group – Chief Financial Officer
Financial statements of Barclays Bank PLC
Parent company accounts

home.barclays/annualreport | Barclays Bank PLC Annual Report | 172

Statement of changes in equity |  |  |
|  |  |  | Restated d | Restated d
| Called up share capital and share premium a | Other equity instruments a, b | Other reserves c | Retained earnings | Total equity
| £m | £m | £m | £m | £m
Balance as at 1 January 2022 | 2,348 | 14,400 | (1,236) | 37,180 | 52,692
Profit after tax | — | 982 | — | 1,802 | 2,784
Currency translation movements | — | — | 1,149 | — | 1,149
Fair value through other comprehensive income reserve | — | — | (1,232) | — | (1,232)
Cash flow hedges | — | — | (4,556) | — | (4,556)
Retirement benefit remeasurement | — | — | — | (315) | (315)
Own credit reserve | — | — | 1,359 | — | 1,359
Total comprehensive income for the year | — | 982 | (3,280) | 1,487 | (811)
Issue and redemption of other equity instruments | — | 998 | — | 38 | 1,036
Other equity instruments coupons paid | — | (982) | — | — | (982)
Employee share schemes | — | — | — | 425 | 425
Vesting of Barclays PLC shares under share-based payment schemes | — | — | — | (413) | (413)
Dividends paid on ordinary shares | — | — | — | (200) | (200)
Dividends paid on preference shares and other shareholders' equity | — | — | — | (31) | (31)
Own credit realisation | — | — | (36) | 36 | —
Capital contribution from Barclays PLC | — | — | — | 750 | 750
Other reserve movements | — | — | — | 1 | 1
Balance as at 31 December 2022 | 2,348 | 15,398 | (4,552) | 39,273 | 52,467

Notes
a For further details refer to Note 27.
b Other equity instruments includes AT1 securities issued by Barclays Bank PLC and borrowings of $6bn from a wholly-owned, indirect subsidiary of Barclays Bank PLC. The
borrowings have been recorded as equity since, under their terms, interest payments are non cumulative and discretionary whilst repayment of principal is perpetually
deferrable by Barclays Bank PLC. Should Barclays Bank PLC make a discretionary dividend payment on its ordinary shares in the six months preceding the date of an
interest payment, it will be obliged to make that interest payment. In 2022, interest paid on these borrowings was £250m.
c For further details refer to Note 28.
d 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
Financial statements of Barclays Bank PLC
Parent company accounts

home.barclays/annualreport | Barclays Bank PLC Annual Report | 173

Statement of changes in equity |  |  |
|  |  |  | Restated d | Restated d
| Called up share capital and share premium a | Other equity instruments a, b | Other reserves c | Retained earnings | Total equity
| £m | £m | £m | £m | £m
Balance as at 1 January 2021 | 2,348 | 13,328 | 776 | 34,691 | 51,143
Profit after tax | — | 795 | — | 2,641 | 3,436
Currency translation movements | — | — | 128 | — | 128
Fair value through other comprehensive income reserve | — | — | (363) | — | (363)
Cash flow hedges | — | — | (1,815) | — | (1,815)
Retirement benefit remeasurement | — | — | — | 612 | 612
Own credit reserve | — | — | 31 | — | 31
Total comprehensive income for the year | — | 795 | (2,019) | 3,253 | 2,029
Issue and redemption of other equity instruments | — | 1,072 | — | 3 | 1,075
Other equity instruments coupons paid | — | (795) | — | — | (795)
Employee share schemes | — | — | — | 418 | 418
Vesting of Barclays PLC shares under share-based payment schemes | — | — | — | (356) | (356)
Dividends paid on ordinary shares | — | — | — | (794) | (794)
Dividends paid on preference shares and other shareholders' equity | — | — | — | (27) | (27)
Other reserve movements | — | — | 7 | (8) | (1)
Balance as at 31 December 2021 | 2,348 | 14,400 | (1,236) | 37,180 | 52,692

Notes
a For further details refer to Note 27.
b Other equity instruments includes AT1 securities issued by Barclays Bank PLC and borrowings of $6bn from a wholly-owned, indirect subsidiary of Barclays Bank PLC. The
borrowings have been recorded as equity since, under their terms, interest payments are non cumulative and discretionary whilst repayment of principal is perpetually
deferrable by Barclays Bank PLC. Should Barclays Bank PLC make a discretionary dividend payment on its ordinary shares in the six months preceding the date of an
interest payment, it will be obliged to make that interest payment. In 2021, interest paid on these borrowings was £164m.
c For further details refer to Note 28.
d 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
Financial statements of Barclays Bank PLC
Parent company accounts

home.barclays/annualreport | Barclays Bank PLC Annual Report | 174

Cash flow statement |  |  | Restated a |
|  | 2022 | 2021 | 2020
For the year ended 31 December | Notes | £m | £m | £m
Reconciliation of profit before tax to net cash flows from operating activities: |  |  |  |
Profit before tax |  | 2,744 | 3,323 | 2,155
Adjustment for non-cash items: |  |  |  |
Credit impairment charges/(releases) |  | 165 | (414) | 1,577
Impairment of Investments in subsidiaries |  | 2,533 | 107 | 27
Depreciation, amortisation and impairment of property, plant, equipment and intangibles |  | 72 | 331 | 66
Other provisions, including pensions |  | 996 | 75 | 505
Net profit on disposal of investments and property, plant and equipment |  | (115) | (49) | (397)
Other non-cash movements including exchange rate movements |  | (11,858) | 1,002 | (2,072)
Changes in operating assets and liabilities |  |  |  |
Net decrease in cash collateral and settlement balances |  | 2,671 | 313 | 1,863
Net increase in loans and advances at amortised cost |  | (19,764) | (10,255) | (29,049)
Net (increase)/decrease in reverse repurchase agreements and other similar secured lending |  | (926) | 6,553 | (6,596)
Net increase in deposits at amortised cost |  | 27,134 | 14,571 | 32,059
Net increase/(decrease) in debt securities in issue |  | 7,581 | 15,364 | (2,662)
Net (decrease)/increase in repurchase agreements and other similar secured |  | (2,895) | 1,480 | 18,537
Net increase in derivative financial instruments |  | (1,723) | (1,827) | (860)
Net decrease/(increase) in trading portfolio assets |  | 13,681 | (12,635) | (5,010)
Net increase in trading portfolio liabilities |  | 1,977 | 2,023 | 2,963
Net (increase)/decrease in financial assets and liabilities at fair value through the income statement |  | (959) | (9,579) | 18,799
Net increase in other assets |  | (3,035) | (1,989) | (83)
Net increase in other liabilities |  | 2,196 | 1,557 | 380
Corporate income tax received/(paid) |  | 422 | (373) | 354
Net cash from operating activities |  | 20,897 | 9,578 | 32,556
Purchase of debt securities at amortised cost |  | (18,519) | (5,442) | (7,129)
Proceeds from redemption or sale of debt securities at amortised cost |  | 12,107 | 1,278 | 3,054
Purchase of financial assets at fair value through other comprehensive income |  | (36,084) | (37,842) | (51,368)
Proceeds from sale or redemption of financial assets at fair value through other comprehensive income |  | 35,066 | 41,544 | 47,254
Purchase of property, plant and equipment and intangibles |  | (28) | (20) | (27)
Disposal of subsidiaries and associates, net of cash disposed |  | 125 | 65 | 736
Increase in investment in subsidiaries |  | (2,667) | (1,473) | (1,907)
Other cash flows associated with investing activities |  | (1) | — | 8
Net cash from investing activities |  | (10,001) | (1,890) | (9,379)
Dividends paid and other coupon payments on equity instruments |  | (1,213) | (1,616) | (1,134)
Issuance of subordinated liabilities | 26 | 14,904 | 8,788 | 3,700
Redemption of subordinated liabilities | 26 | (8,104) | (7,095) | (4,580)
Issue of shares and other equity instruments |  | 3,134 | 1,072 | 3,075
Repurchase of shares and other equity instruments |  | (2,136) | — | (903)
Capital contribution |  | 750 |  |
Vesting of shares under employee share schemes |  | (413) | (356) | (300)
Net cash from financing activities |  | 6,922 | 793 | (142)
Effect of exchange rates on cash and cash equivalents |  | 8,166 | (2,913) | 1,169
Net increase in cash and cash equivalents |  | 25,984 | 5,568 | 24,204
Cash and cash equivalents at beginning of year |  | 159,059 | 153,491 | 129,287
Cash and cash equivalents at end of year |  | 185,043 | 159,059 | 153,491
Cash and cash equivalents comprise: |  |  |  |
Cash and balances at central banks |  | 170,307 | 144,964 | 133,386
Loans and advances to banks with original maturity less than three months |  | 3,466 | 3,793 | 10,174
Cash collateral balances with central banks with original maturity less than three months |  | 10,625 | 9,690 | 9,086
Treasury and other eligible bills with original maturity less than three months |  | 645 | 612 | 845
Cash and cash equivalents at end of year |  | 185,043 | 159,059 | 153,491

a 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
Interest received by Barclays Bank PLC was £25,048m (2021: £7,284m) and interest paid by Barclays Bank PLC was £21,325m (2021: £5,496m). These
amounts include interest paid and received arising from trading activities. Dividends received were £1,862m (2021: £1,174m).
Barclays Bank PLC was required to maintain balances with central banks and other regulatory authorities of £1,070m (2021: £1,585m).
Financial statements of Barclays Bank PLC
Parent company accounts

home.barclays/annualreport | Barclays Bank PLC Annual Report | 175

This section describes the Barclays Bank Group’s significant policies and critical accounting estimates that relate to the financial statements and notes as a whole. If an accounting policy or a critical accounting estimate relates to a particular note, the accounting policy and/or critical accounting estimate is contained with the relevant note.

1 Significant accounting policies
1.Reporting entity
Barclays Bank PLC is a public company limited by shares registered in England under company number 1026167, having its registered office at 1
Churchill Place, London, E14 5HP.
These financial statements are prepared for Barclays Bank PLC and its subsidiaries (the Barclays Bank Group) under Section 399 of the Companies Act
2006. The Barclays Bank Group is a major global financial services provider engaged in credit cards, wholesale banking, investment banking, wealth
management and investment management services. In addition, separate financial statements have been presented for the holding company.
2.Compliance with International Financial Reporting Standards
The consolidated financial statements of the Barclays Bank Group, and the separate financial statements of Barclays Bank PLC, have been prepared in
accordance with UK-adopted international accounting standards.
The consolidated financial statements of the Barclays Bank Group, and the separate financial statements of Barclays Bank PLC, have also been prepared
in accordance with (1) International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), including
interpretations issued by the IFRS Interpretations Committee, as there are no applicable differences from IFRS as issued by the IASB for the periods
presented; and (2) IFRS adopted pursuant to Regulation (EC) No. 1606/2002 as it applies in the European Union (“IFRS as adopted by the EU”).
There are currently no differences between UK-adopted international accounting standards and IFRS as adopted by the EU and therefore no
reconciliation of variances is provided.
T he principal accounting policies applied in the preparation of the consolidated and separate financial statements are set out below, and in the relevant
notes to the financial statements. These policies have been consistently applied.
3.Basis of preparation
The consolidated and separate financial statements have been prepared under the historical cost convention modified to include the fair valuation of
investment property, and particular financial instruments, to the extent required or permitted under IFRS as set out in the relevant accounting policies.
The financial statements are stated in millions of Pounds Sterling (£m), the functional currency of Barclays Bank PLC.
The financial statements have been prepared on a going concern basis, in accordance with the Companies Act 2006 as applicable to companies using
IFRS. The financial statements are prepared on a going concern basis as the Board is satisfied that the Barclays Bank Group and parent company have
the resources to continue in business for a period of at least 12 months from approval of the financial statements.
In making this assessment, the Board has considered a wide range of information relating to present and future conditions and has reviewed o f a
working capital report (WCR). The WCR is used by the Board to assess the future performance of the Barclays Bank Group and whether it has the
resources in place that are required to meet its ongoing regulatory requirements. The WCR assessment is based upon business plans which contain
future forecasts of profitability taken from the Barclays Bank Group’s medium term plan as well as projections of regulatory capital requirements and
business funding needs. The WCR also includes an assessment of the impact of internally generated stress testing scenarios on the liquidity and capital
requirement forecasts. The stress tests used were based upon an assessment of reasonably possible downside economic scenarios that the Barclays
Bank Group could experience.
The WCR showed that the Barclays Bank Group had sufficient capital and liquidity in place to support its future business requirements and remained
above its regulatory minimum requirements in the stress scenarios. Accordingly, the Board concluded that there was a reasonable expectation that the
Barclays Bank Group has adequate resources to continue as a going concern for a period of at least 12 months from the date of approval of the financial
statements.
4.Accounting policies
The Barclays Bank Group prepares financial statements in accordance with IFRS. The Barclays Bank Group’s significant accounting policies relating to
specific financial statement items, together with a description of the accounting estimates and judgements that were critical to preparing those items,
are set out under the relevant notes. Accounting policies that affect the financial statements as a whole are set out below.
(i)Consolidation
The Barclays Bank Group applies IFRS 10 Consolidated financial statements.
The consolidated financial statements combine the financial statements of Barclays Bank PLC and all its subsidiaries. Subsidiaries are entities over which
Barclays Bank PLC has control. The Barclays Bank Group has control over another entity when the Barclays Bank Group has all of the following:
1)power over the relevant activities of the investee, for example through voting or other rights
2)exposure to, or rights to, variable returns from its involvement with the investee and
3)the ability to affect those returns through its power over the investee.
The assessment of control is based on the consideration of all facts and circumstances. The Barclays Bank Group reassesses whether it controls an
investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.
Intra-group transactions and balances are eliminated on consolidation. Consistent accounting policies are used throughout the Barclays Bank Group for
the purposes of the consolidation.
Changes in ownership interests in subsidiaries are accounted for as equity transactions if they occur after control has already been obtained and they do
not result in loss of control.
Notes to the financial statements
For the year ended 31 December 202 2

home.barclays/annualreport | Barclays Bank PLC Annual Report | 176

As the consolidated financial statements include partnerships where the Barclays Bank Group member is a partner, advantage has been taken of the
exemption under Regulation 7 of the Partnership (Accounts) Regulations 2008 with regard to preparing and filing of individual partnership financial
statements.
Details of the principal subsidiaries are given in Note 32.
(ii)Foreign currency translation
The Barclays Bank Group applies IAS 21T he Effects of Changes in Foreign Exchange Rates. Transactions in foreign currencies are translated into Sterling
at the rate ruling on the date of the transaction. Foreign currency monetary balances are translated into Sterling at the period end exchange rates.
Exchange gains and losses on such balances are taken to the income statement. Non-monetary foreign currency balances in relation to items measured
in terms of historical cost are carried at historical transaction date exchange rates. Non-monetary foreign currency balances in relation to items
measured at fair value are translated using the exchange rate at the date when the fair value was measured.
The Barclays Bank Group’s foreign operations (including subsidiaries, joint ventures, associates and branches) based mainly outside the UK may have
different functional currencies. The functional currency of an operation is the currency of the main economy to which it is exposed.
Prior to consolidation (or equity accounting) the assets and liabilities of non-Sterling operations are translated at the period end exchange rate and
items of income, expense and other comprehensive income are translated into Sterling at the rate on the date of the transactions. Exchange differences
arising on the translation of foreign operations are included in currency translation reserves within equity. These are transferred to the income
statement when the Barclays Bank Group disposes of the entire interest in a foreign operation, when partial disposal results in the loss of control of an
interest in a subsidiary, when an investment previously accounted for using the equity method is accounted for as a financial asset, or on the disposal of
a foreign operation within a branch.
(iii)Financial assets and liabilities
The Barclays Bank Group applies IFRS 9 Financial Instruments to the recognition, classification and measurement, and derecognition of financial assets
and financial liabilities and the impairment of financial assets. The Barclays Bank Group applies the requirements of IAS 39 Financial Instruments:
Recognition and Measurement for hedge accounting purposes.
Recognition
The Barclays Bank Group recognises financial assets and liabilities when it becomes a party to the terms of the contract. Trade date or settlement date
accounting is applied depending on the classification of the financial asset.
Classification and measurement
Financial assets are classified on the basis of two criteria:
i)the business model within which financial assets are managed; and
ii)their contractual cash flow characteristics (whether the cash flows represent ‘solely payments of principal and interest’ (SPPI)).
The Barclays Bank Group assesses the business model criteria at a portfolio level. Information that is considered in determining the applicable business
model includes (i) policies and objectives for the relevant portfolio, (ii) how the performance and risks of the portfolio are managed, evaluated and
reported to management, and (iii) the frequency, volume and timing of sales in prior periods, sales expectation for future periods, and the reasons for
such sales.
The contractual cash flow characteristics of financial assets are assessed with reference to whether the cash flows represent SPPI. In assessing whether
contractual cash flows are SPPI compliant, interest is defined as consideration primarily for the time value of money and the credit risk of the principal
outstanding. The time value of money is defined as the element of interest that provides consideration only for the passage of time and not
consideration for other risks or costs associated with holding the financial asset. Terms that could change the contractual cash flows so that it would
not meet the condition for SPPI are considered, including: (i) contingent and leverage features, (ii) non-recourse arrangements and (iii) features that
could modify the time value of money.
Financial assets are measured at amortised cost if they are held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows, and their contractual cash flows represent SPPI.
Financial assets are measured at fair value through other comprehensive income if they are held within a business model whose objective is achieved by
both collecting contractual cash flows and selling financial assets, and their contractual cash flows represent SPPI.
Other financial assets are measured at fair value through profit and loss. There is an option to make an irrevocable election on initial recognition for non
traded equity investments to be measured at fair value through other comprehensive income, in which case dividends are recognised in profit or loss,
but gains or losses are not reclassified to profit or loss upon derecognition, and the impairment requirements of IFRS 9 do not apply.
The accounting policy for each type of financial asset or liability is included within the relevant note for the item. The Barclays Bank Group’s policies for
determining the fair values of the assets and liabilities are set out in Note 16.
Derecognition
The Barclays Bank Group derecognises a financial asset, or a portion of a financial asset, from its balance sheet where (i) the contractual rights to cash
flows from the asset have expired, or (ii) the contractual rights to the cash flows from the asset have been transferred (usually by sale) and with them
either (a) substantially all the risks and rewards of the asset have been transferred, or (b) where neither substantially all the risks and rewards have been
transferred or retained, where control over the asset has been lost.
Financial liabilities are de-recognised when the liability has been settled, has expired or has been extinguished. An exchange of an existing financial
liability for a new liability with the same lender on substantially different terms – generally a difference of 10% or more in the present value of the cash
flows or a substantive qualitative amendment – is accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability.
Transactions in which the Barclays Bank Group transfers assets and liabilities, portions of them, or financial risks associated with them can be complex
and it may not be obvious whether substantially all of the risks and rewards have been transferred. It is often necessary to perform a quantitative
Notes to the financial statements
For the year ended 31 December 202 2

home.barclays/annualreport | Barclays Bank PLC Annual Report | 177

analysis. Such an analysis compares the Barclays Bank Group’s exposure to variability in asset cash flows before the transfer with its retained exposure
after the transfer.
A cash flow analysis of this nature may require judgement. In particular, it is necessary to estimate the asset’s expected future cash flows as well as
potential variability around this expectation. The method of estimating expected future cash flows depends on the nature of the asset, with market and
market-implied data used to the greatest extent possible. The potential variability around this expectation is typically determined by stressing underlying
parameters to create reasonable alternative upside and downside scenarios. Probabilities are then assigned to each scenario. Stressed parameters may
include default rates, loss severity, or prepayment rates.
Accounting for reverse repurchase and repurchase agreements including other similar lending and borrowing
Reverse repurchase agreements (and stock borrowing or similar transactions) are a form of secured lending whereby the Barclays Bank Group provides
a loan or cash collateral in exchange for the transfer of collateral, generally in the form of marketable securities subject to an agreement to transfer the
securities back at a fixed price in the future. Repurchase agreements are where the Barclays Bank Group obtains such loans or cash collateral, in
exchange for the transfer of collateral.
The Barclays Bank Group purchases (a reverse repurchase agreement) or borrows securities subject to a commitment to resell or return them. The
securities are not included in the balance sheet as the Barclays Bank Group does not acquire the risks and rewards of ownership. Consideration paid (or
cash collateral provided) is accounted for as a loan asset at amortised cost, unless it is designated or mandatorily at fair value through profit and loss.
The Barclays Bank Group may also sell (a repurchase agreement) or lend securities subject to a commitment to repurchase or redeem them. The
securities are retained on the balance sheet as the Barclays Bank Group retains substantially all the risks and rewards of ownership. Consideration
received (or cash collateral provided) is accounted for as a financial liability at amortised cost, unless it is designated at fair value through profit and loss.
(iv)Issued debt and equity instruments
The Barclays Bank Group applies IAS 32, Financial Instruments: Presentation, to determine whether funding is either a financial liability (debt) or equity.
Issued financial instruments or their components are classified as liabilities if the contractual arrangement results in the Barclays Bank Group having an
obligation to either deliver cash or another financial asset, or a variable number of equity shares, to the holder of the instrument. If this is not the case,
the instrument is generally an equity instrument and the proceeds included in equity, net of transaction costs. Dividends and other returns to equity
holders are recognised when paid or declared by the members at the Annual General Meeting and treated as a deduction from equity.
Where issued financial instruments contain both liability and equity components, these are accounted for separately. The fair value of the debt is
estimated first and the balance of the proceeds is included within equity.
(v) Changes in the basis for determining contractual cash flows resulting from interest rate benchmark reform
A change in the basis for determining the contractual cash flows of a financial instrument that is required by interest rate benchmark reform is
accounted for by updating the effective interest rate, without the recognition of an immediate gain or loss. This practical expedient is only applied where
(1) the change to the contractual cash flows is necessary as a direct consequence of the reform and (2) the new basis for determining the contractual
cash flows is economically equivalent to the previous basis. For changes made in addition to those required by the interest rate benchmark reform, the
practical expedient is applied first, after which the normal IFRS 9 requirements for modifications of financial instruments is applied.
Refer to Note 13 for further details regarding hedge accounting policies in respect of interest rate benchmark reform.
Refer to Note 40 for further disclosure related to interest rate benchmark reform.
(vi) Cash flow statement
Cash comprises cash on hand and balances at central banks. Cash equivalents comprise loans and advances to banks, cash collateral balances with
central banks related to payment schemes and treasury and other eligible bills, all with original maturities of three months or less. Repurchase and
reverse repurchase agreements are not considered to be part of cash equivalents.
Investments in debt securities at amortised cost, presented within loans and advances on the balance sheet, are deemed to be investing activities for the
purposes of the cash flow statement, except those instruments considered to be cash equivalents.
5.New an d amended standar ds and interpretations
The accounting policies adopted have been consistently applied.
Future accounting developments
The following accounting standards have been issued by the IASB but are not yet effective:
IFRS 17 – Insurance contracts
In May 2017, the IASB issued IFRS 17 Insurance Contracts, a comprehensive new accounting standard for insurance contracts covering recognition and
measurement, presentation and disclosure. IFRS 17 will replace IFRS 4 Insurance Contracts that was issued in 2005. In June 2020, the IASB published
amendments to IFRS 17, to include scope exclusion for certain credit card contracts and similar contracts that provide insurance coverage, the optional
scope exclusion for loan contracts that transfer significant insurance risk, and the clarification that only financial guarantees issued are in scope of IFRS
9.
IFRS 17 applies to all types of insurance contracts (i.e. life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them,
as well as to certain guarantees and financial instruments with discretionary participation features. A few scope exceptions will apply.
IFRS 17 is effective for accounting periods beginning on or after 1 January 2023. The Barclays Bank Group does not expect the impact of IFRS 17 to be
material.
Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
In January 2020 the IASB issued amendments to IAS 1 to clarify the presentation of liabilities in the balance sheet, with an effective date of 1 January
2024.
Notes to the financial statements
For the year ended 31 December 202 2

home.barclays/annualreport | Barclays Bank PLC Annual Report | 178

The amendments clarify that a liability should be classified as non-current only if the entity has the right to defer settlement of the liability for at least 12
months after the reporting period, and that (i) the right to defer settlement must exist at the end of the reporting period and (ii) management’s
intentions or expectations about whether it will exercise its right to defer settlement does not affect the classification. Further clarifications include how
lending conditions affect classification and classification of liabilities the entity will or may settle by issuing its own equity instruments.
In October 2022, the IASB also issued further amendments to IAS 1 to improve the information an entity provides when its right to defer settlement of a
liability for at least twelve months is subject to compliance with covenants, and to respond to stakeholders’ concerns about the classification of such a
liability as current or non-current.
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2
In February 2021 the IASB issued amendments to IAS 1 that require entities to disclose their material accounting policies rather than their significant
accounting policies. The amendments to IFRS Practice Statement 2 provide guidance on the concept of materiality and its application to accounting
policy information.
Under the amendments, accounting policy information is material if, when considered together with other information included in an entity’s financial
statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of
those financial statements.
The amendments are effective for annual periods beginning on or after 1 January 2023, and will be applied from that date.
Definition of Accounting Estimate - Amendments to IAS 8
In February 2021 the IASB issued amendments to IAS 8 that replace the definition of a change in accounting estimates with a definition of accounting
estimates.
Under the new definition, accounting estimates are clarified as monetary amounts in financial statements that are subject to measurement uncertainty.
Where an entity's accounting policy requires an item to be measured at monetary amounts that cannot be observed directly, it should develop an
accounting estimate to achieve this objective.
The amendments are effective for annual periods beginning on or after 1 January 2023, and will be applied from that date.
6.Critical accounting estimates and judgements
The preparation of financial statements in accordance with IFRS requires the use of estimates. It also requires management to exercise judgement in
applying the accounting policies. The key areas involving a higher degree of judgement or complexity or areas where assumptions are significant to the
consolidated and individual financial statements are highlighted under the relevant note. Critical accounting estimates and judgements are disclosed in:
▪Credit impairment charges on pages 189 to 192
▪Tax on pages 193 to 197
▪Fair value of financial instruments on pages 213 to 225
▪Pensions and post-retirement benefit obligations on pages 253 to 261
▪Provisions including conduct and legal, competition and regulatory matters on pages 236 to 243
7.Other disclosures
To improve transparency and ease of reference, by concentrating related information in one place, certain disclosures required under IFRS have been
included within the Risk review section as follows:
▪Credit risk on pages 59 to 60 and on pages 70 to 110
▪Market risk on page 60 to 61 and on pages 112 to 113
▪Treasury and capital risk – capital on page 61 to 62 and on pages 125 to 126
▪Treasury and capital risk – liquidity on pages 61 to 62 and on pages 115
These disclosures are covered by the Audit opinion (included on pages 145 to 165) where referenced as audited.
Notes to the financial statements
For the year ended 31 December 202 2

home.barclays/annualreport | Barclays Bank PLC Annual Report | 179

1a Restatement of financial statements
The comparatives in these consolidated financial statements f or the year ended 31 December 2022 (the financial statements) have been restated to
reflect both a provision and contingent liability disclosure in respect o f the impact of an over-issuance of securities (the Over-issuance of Securities) in
excess of the maximum aggregate offering price registered under Barclays Bank PLC’s shelf registration statement on Form F-3, as declared effective by
the SEC in August 2019 (2019 F-3) and Barclays Bank PLC’s prior shelf registration statement (Predecessor Statement). The comparatives have been
restated so as to align them to those reported in the restated 2021 20-F filing for Barclays Bank PLC for 2021.
Due to an SEC settlement order in 2017, at the time the 2019 F-3 was filed and the Predecessor Shelf was amended, Barclays Bank PLC had ceased to
be a “well-known seasoned issuer” (or WKSI) and had become an “ineligible issuer”, as defined in Rule 405 under the Securities Act of 1933, as
amended (Securities Act), thus being required to register upfront a certain amount of securities with the SEC.
In March 2022, Barclays Bank PLC became aware that it had issued securities in the US materially in excess of the amount it had registered with the SEC
under the 2019 F-3. Subsequently Barclays Bank PLC became aware that securities had also been issued in excess of the amount it had registered with
the SEC under the Predecessor Statement. The securities that were over-issued comprised structured notes and exchange traded notes (ETNs). As such,
certain offers and sales of these securities were not made in compliance with the Securities Act, giving rise to rights of rescission for certain purchasers
of the securities. Under Section 12(a)(1) of the Securities Act, certain purchasers of unregistered securities have a right to recover, upon the tender of
such security, the consideration paid for such security with interest, less the amount of any income received, or damages if the purchaser sold the
securities at a loss (the Rescission Price). As a result, Barclays Bank PLC made a rescission offer to eligible purchasers of the relevant affected securities
at the Rescission Price (the Rescission Offer).
A portion of the costs associated with the rights of rescission of certain investors was attributable to Barclays Bank PLC’s financial statements for the
year ended 31 December 2021. Accordingly, the comparatives in these financial statements have been restated. The restatement impacts the
consolidated inco me statement, the consolidated statement of comprehensive income, the parent company statement of comprehensive income, the
consolidated balance sheet, the parent company balance sheet, the consolidated statement of changes in equity, the parent company statement of
changes in equity, the consolidated cash flow statement, and the parent company cash flow statement for the year ended 31 December 2021. There
was no material effect on Barclays Bank PLC’s previously reported financial statements for the year ended 31 December 2020.
The impact of the restat ement is as follows:
•Litigation and conduct charges in the consolidated income statement for the year ended 31 December 2021 were underreported by £220m,
increasing total operating expenses from a reported £10,039m to £10,259m.
•Provisions on the consolidated balance sheet increased from a reported £890m to £1,110m.
•Provisions on the parent company balance sheet increased from a reported £699m to £919m.
•The taxation charge in the consolidated income statement reduced by £50m from a reported £880m to £830m with a corresponding decrease in
current tax liabilities on the consolidated balance sheet from £738m to £688m.
•C urrent tax liabilities on the parent balance sheet decreased from £392m to £342m.
•The overall impact of the restatement reduced reported Barclays Bank Group profit after tax from £4,758m to £4,588m.
•The overall impact of the restatement reduced reported Barclays Bank PLC profit after tax from £3,606m to £3,436m.
•The consolidated financial statements and parent company financial statements were restated for the increased provision of £220m and lower tax
charge of £50m.
•The contractual maturity profile of financial liabilities designated at fair value was restated to reflect the impact of the Over-issuance of Securities.
Notes to the financial statements
For the year ended 31 December 202 2

home.barclays/annualreport | Barclays Bank PLC Annual Report | 180

The table below reflects each of the consolidated financial statement line items that were affected by the restatement:

For the year ended 31 December 2021 | As reported £m |  | Restatement £m |  | As restated £m
Impact on the consolidated income statement
Litigation and conduct | (154) |  | (220) |  | (374)
Total operating expenses | (10,039) |  | (220) |  | (10,259)
Profit before tax | 5,638 |  | (220) |  | 5,418
Taxation | (880) |  | 50 |  | (830)
Profit after tax | 4,758 |  | (170) |  | 4,588
Impact on the consolidated statement of comprehensive income
Profit after tax | 4,758 |  | (170) |  | 4,588
Total comprehensive income for the year | 3,073 |  | (170) |  | 2,903
Impact on the consolidated balance sheet
Liabilities |  |  |  |  |
Current tax liabilities | 738 |  | (50) |  | 688
Provisions | 890 |  | 220 |  | 1,110
Total liabilities | 1,005,291 |  | 170 |  | 1,005,461
Equity |  |  |  |  |
Retained earnings | 43,585 |  | (170) |  | 43,415
Total equity | 56,487 |  | (170) |  | 56,317
Impact on the consolidated cash flow statement
Profit before tax | 5,638 |  | (220) |  | 5,418
Adjustment for non-cash items |  |  |  |  |
Other provisions, including pensions | (135) |  | 220 |  | 85

The financial impact of the restatement has been reflected in Notes 2, 7, 9, and 23. Further, Note 25 (Legal, competition and regulatory matters) has
also been amended to reflect the Over-issuance of Securities.
Notes to the financial statements
For the year ended 31 December 202 2

home.barclays/annualreport | Barclays Bank PLC Annual Report | 181

The table below reflects each of the p arent company financial statement line items that were affected by the restatement:

For the year ended 31 December 2021 | As reported £m |  | Restatement £m |  | As restated £m
Impact on the parent company balance sheet
Liabilities |  |  |  |  |
Current tax liabilities | 392 |  | (50) |  | 342
Provisions | 699 |  | 220 |  | 919
Total liabilities | 1,011,809 |  | 170 |  | 1,011,979
Equity |  |  |  |  |
Retained earnings | 37,350 |  | (170) |  | 37,180
Total equity | 52,862 |  | (170) |  | 52,692
Impact on the parent company statement of changes in equity
Profit after tax | 3,606 |  | (170) |  | 3,436
Total comprehensive income for the year | 2,199 |  | (170) |  | 2,029
Impact on the parent company cash flow statement
Profit before tax | 3,543 |  | (220) |  | 3,323
Adjustment for non-cash items |  |  |  |  |
Other provisions, including pensions | (145) |  | 220 |  | 75

Notes to the financial statements
For the year ended 31 December 202 2

home.barclays/annualreport | Barclays Bank PLC Annual Report | 182

The notes included in this section focus on the results and performance of the Barclays Bank Group. Information on the segmental performance,
income generated, expenditure incurred, tax, and dividends are included here.
2 Segmental reporting

Presentation of segmental reporting The Barclays Bank Group’s segmental reporting is in accordance with IFRS 8 Operating Segments. Operating segments are reported in a manner consistent with the internal reporting provided to the Executive Committee, which is responsible for allocating resources and assessing performance of the operating segments, and has been identified as the chief operating decision maker. All transactions between business segments are conducted on an arm’s-length basis, with intra-segment revenue and costs being eliminated in Head Office. Income and expenses directly associated with each segment are included in determining business segment performance.

The Barclays Bank Group divisions have been, for segmental reporting purposes, defined as Corporate and Investment Bank and Consumer, Cards and
Payments.
▪Corporate and Investment Bank which includes the Global Markets, Investment Banking and Corporate Banking businesses.
▪Consumer, Cards and Payments which includes the International Cards and Consumer Bank, Private Bank and Payments businesses.
The below table also includes Head Office which comprises head office and certain central support functions including the Barclays Bank Group service
company full time equivalent employees.

Analysis of results by business
| Corporate and Investment Bank | Consumer, Cards and Payments | Head Office | Barclays Bank Group
| £m | £m | £m | £m
For the year ended 31 December 2022 |  |  |  |
Total income | 13,722 | 4,547 | (75) | 18,194
Operating expenses | (8,011) | (2,800) | (160) | (10,971)
Litigation and conduct | (1,189) | (230) | (8) | (1,427)
Total operating expenses | (9,200) | (3,030) | (168) | (12,398)
Other net income a | 3 | 1 | — | 4
Profit before impairment | 4,525 | 1,518 | (243) | 5,800
Credit impairment charges | (119) | (814) | — | (933)
Profit/(loss) before tax | 4,406 | 704 | (243) | 4,867
Total assets (£bn) | 1,111.2 | 79.9 | 12.4 | 1,203.5
Number of employees (full time equivalent) | 8,000 | 2,900 | 11,000 | 21,900
Average number of employees (full time equivalent) |  |  |  | 21,100

| Restated b |  |  | Restated b |
| Corporate and Investment Bank | Consumer, Cards and Payments | Head Office | Barclays Bank Group |
| £m | £m | £m | £m |
For the year ended 31 December 2021 |  |  |  |  |
Total income | 12,481 | 3,337 | (410) | 15,408 |
Operating expenses | (7,169) | (2,316) | (400) | (9,885) |
Litigation and conduct | (237) | (108) | (29) | (374) |
Total operating expenses | (7,406) | (2,424) | (429) | (10,259) |
Other net income/(expenses)a | (8) | 1 | (1) | (8) |
Profit before impairment | 5,067 | 914 | (840) | 5,141 |
Credit impairment(charges)/releases | 461 | (185) | 1 | 277 |
Profit/(loss) before tax | 5,528 | 729 | (839) | 5,418 |
Total assets (£bn) | 986.2 | 64.4 | 11.2 | 1,061.8 |
Number of employees (full time equivalent) | 7,800 | 2,600 | 9,800 | 20,200 |
Average number of employees (full time equivalent) |  |  |  | 20,300 |

Notes
a Other net income/(expenses) repre sents the share of post-tax results of associates and joint ventures, and profit (o r loss) on disposal of subsidiaries, associates and joint
v entures.
b 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. Se e Restatement of financial statements (Note 1a) on page 180 for
further details.
Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 183

| Corporate and Investment Bank | Consumer, Cards and Payments | Head Office | Barclays Bank Group
| £m | £m | £m | £m
For the year ended 31 December 2020 |  |  |  |
Total income | 12,607 | 3,490 | (319) | 15,778
Operating expenses | (7,125) | (2,132) | (126) | (9,383)
Litigation and conduct | (4) | (44) | (28) | (76)
Total operating expenses | (7,129) | (2,176) | (154) | (9,459)
Other net income a | 16 | 114 | 3 | 133
Profit before impairment | 5,494 | 1,428 | (470) | 6,452
Credit impairment charges | (1,565) | (1,720) | (92) | (3,377)
Profit/(loss) before tax | 3,929 | (292) | (562) | 3,075
Total assets (£bn) | 990.9 | 57.8 | 11.0 | 1,059.7
Number of employees (full time equivalent) | 7,800 | 3,000 | 10,100 | 20,900
Average number of employees (full time equivalent) |  |  |  | 20,145

Note
a Other net income/(expenses) represents the share of post-tax results of associates and joint ventures, and profit (or loss) on disposal of subsidiaries, associates and joint
ventures.

Income by geographic region b |  |  |
| 2022 | 2021 | 2020
For the year ended 31 December | £m | £m | £m
United Kingdom | 7,962 | 4,585 | 4,954
Europe | 2,320 | 2,358 | 2,119
Americas | 6,516 | 7,326 | 7,590
Africa and Middle East | 63 | 45 | 37
Asia | 1,333 | 1,094 | 1,078
Total | 18,194 | 15,408 | 15,778
Income from individual countries which represent more than 5% of total income b |  |  |
| 2022 | 2021 | 2020
For the year ended 31 December | £m | £m | £m
United Kingdom | 7,962 | 4,585 | 4,954
United States | 6,340 | 7,162 | 7,471

Note
b The geographical analysis is based on the location of the office where the transactions are recorded.
3 Net interest income

Accounting for interest income and expenses Interest income on loans and advances at amortised cost and financial assets at fair value through other comprehensive income, and interest expense on financial liabilities held at amortised cost, are calculated using the effective interest method which allocates interest, and direct and incremental fees and costs, over the expected lives of the assets and liabilities. The effective interest method requires the Barclays Bank Group to estimate future cash flows, in some cases based on its experience of customers’ behaviour, considering all contractual terms of the financial instrument, as well as the expected lives of the assets and liabilities. The Barclays Bank Group incurs certain costs to originate credit card balances with the most significant being co-brand partner fees. To the extent these costs are attributed to customers that continuously carry an outstanding balance (revolvers) and incremental to the origination of credit card balances, they are capitalised and subsequently included within the calculation of the effective interest rate. They are amortised to interest income over the period of expected repayment of the originated balance. Costs attributed to customers that settle their outstanding balances each period (transactors) are deferred on the balance sheet as a cost of obtaining a contract and amortised to fee and commission expense over the life of the customer relationship (refer to Note 4). There are no other individual estimates involved in the calculation of effective interest rates that are material to the results or financial position.

Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 184

| 2022 | 2021 | 2020
| £m | £m | £m
Cash and balances at central banks | 2,097 | 128 | 226
Loans and advances at amortised cost | 7,454 | 4,265 | 4,510
Fair value through other comprehensive income | 1,493 | 380 | 604
Negative interest on liabilities | 208 | 248 | 68
Other | 527 | 651 | 598
Interest and similar income | 11,779 | 5,672 | 6,006
Deposits at amortised cost | (3,104) | (331) | (644)
Debt securities in issue | (1,473) | (413) | (424)
Subordinated liabilities | (966) | (934) | (1,112)
Negative interest on assets | (208) | (374) | (325)
Other | (630) | (547) | (341)
Interest and similar expense | (6,381) | (2,599) | (2,846)
Net interest income | 5,398 | 3,073 | 3,160

I nterest and similar income presented above represents interest revenue calculated using the effective interest method. Costs to originate credit card
balances of £747m (2021: £623m; 2020: £687m) have been amortised to interest and similar income during the year. Interest and similar income
includes £38m (2021: £7m; 2020: £9m) accrued on impaired loans. Other interest expense include s £18m (2021: £20m, 2020: £23 m) relating to IFRS
16 lease interest expenses.
4 Net fee and commission income

Accounting for net fee and commission income The Barclays Bank Group applies IFRS 15 Revenue from Contracts with Customers. IFRS 15 establishes a five-step model governing revenue recognition. The five-step model requires the Barclays Bank Group to (i) identify the contract with the customer, (ii) identify each of the performance obligations included in the contract, (iii) determine the amount of consideration in the contract, (iv) allocate the consideration to each of the identified performance obligations and (v) recognise revenue as each performance obligation is satisfied. The Barclays Bank Group recognises fee and commission income charged for services provided by the Barclays Bank Group as and when performance obligations are satisfied, for example, on completion of the underlying transaction. Where the contractual arrangements also result in the Barclays Bank Group recognising financial instruments in scope of IFRS 9, such financial instruments are initially recognised at fair value in accordance with IFRS 9 before applying the provisions of IFRS 15.

Fee and commission income is disaggregated below by fee types that reflect the nature of the services offered across the Barclays Bank Group and
operating segments, in accordance with IFRS 15. The below table includes a total for fees in scope of IFRS 15. Refer to Note 2 for more detailed
information about operating segments.

| 2022
| Corporate and Investment Bank | Cards & Payments and Private Bank | Head Office | Total
| £ | £ | £ | £
Fee type |  |  |  |
Transactional | 449 | 2,803 | — | 3,252
Advisory | 820 | 144 | — | 964
Brokerage and execution | 1,465 | 56 | — | 1,521
Underwriting and syndication | 2,036 | 1 | — | 2,037
Other | 99 | 134 | 22 | 255
Total revenue from contracts with customers | 4,869 | 3,138 | 22 | 8,029
Other non-contract fee income | 138 | 4 | — | 142
Fee and commission income | 5,007 | 3,142 | 22 | 8,171
Fee and commission expense | (966) | (1,778) | (1) | (2,745)
Net fee and commission income | 4,041 | 1,364 | 21 | 5,426

Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 185

| 2021
| Corporate and Investment Bank | Consumer, Cards and Payments | Head Office | Total
| £m | £m | £m | £m
Fee type |  |  |  |
Transactional | 390 | 2,158 | — | 2,548
Advisory | 968 | 128 | — | 1,096
Brokerage and execution | 1,082 | 53 | — | 1,135
Underwriting and syndication | 3,425 | — | — | 3,425
Other | 80 | 155 | 21 | 256
Total revenue from contracts with customers | 5,945 | 2,494 | 21 | 8,460
Other non-contract fee income | 116 | 5 | — | 121
Fee and commission income | 6,061 | 2,499 | 21 | 8,581
Fee and commission expense | (781) | (1,207) | (6) | (1,994)
Net fee and commission income | 5,280 | 1,292 | 15 | 6,587

| 2020
| Corporate and Investment Bank | Consumer, Cards and Payments | Head Office | Total
| £m | £m | £m | £m
Fee type |  |  |  |
Transactional | 357 | 1,973 | — | 2,330
Advisory | 593 | 100 | — | 693
Brokerage and execution | 1,116 | 57 | — | 1,173
Underwriting and syndication | 2,867 | — | — | 2,867
Other | 54 | 152 | 29 | 235
Total revenue from contracts with customers | 4,987 | 2,282 | 29 | 7,298
Other non-contract fee income | 114 | 5 | — | 119
Fee and commission income | 5,101 | 2,287 | 29 | 7,417
Fee and commission expense | (768) | (988) | (2) | (1,758)
Net fee and commission income | 4,333 | 1,299 | 27 | 5,659

Fee types
Transactional
Transactional fees are service charges on deposit accounts, cash management services fees and transactional processing fees. These include
interchange and merchant fee income generated from credit and bank card usage. Transaction and processing fees are recognised at the point in time
the transaction occurs or service is performed. Interchange and merchant fees are recognised upon settlement of the card transaction payment.
The Barclays Bank Group incurs certain card related costs including those related to cardholder reward programmes and payments to co-brand
partners. Cardholder reward programme costs related to customers that settle their outstanding balance each period (transactors) are expensed when
incurred and presented in fee and commission expense, while costs related to customers that continuously carry an outstanding balance (revolvers) are
included in the effective interest rate of the receivable (refer to Note 3). Payments to partners for new cardholder account originations related to
transactor accounts are deferred as costs to obtain a contract under IFRS 15, while costs related to revolver accounts are included in the effective
interest rate of the receivable (refer to Note 3). Those costs deferred under IFRS 15 are capitalised and amortised over the estimated life of the customer
relationship. Payments to co-brand partners based on revenue sharing to the extent the revenue share relates to "revolvers" are included in the effective
interest rate of the receivable and to the extent revenue share relates to “transactors” it must be presented in fee and commission expense. Payments
based on profitability are presented in fee and commission expense.
Advisory
Advisory fees are generated from wealth management services and investment banking advisory services related to mergers, acquisitions and financial
restructurings. Wealth management advisory fees are earned over the period the services are provided and are generally recognised quarterly when the
market value of client assets is determined. Investment banking advisory fees are recognised at the point in time when the services related to the
transaction have been completed under the terms of the engagement. Investment banking advisory costs are recognised as incurred in fee and
commission expense if direct and incremental to the advisory services or are otherwise recognised in operating expenses.
Brokerage and execution
Brokerage and execution fees are earned for executing client transactions with various exchanges and over-the-counter markets and
assisting clients in clearing transactions and facilitating foreign exchange transactions for spot/forward contracts. Brokerage and
execution fees are recognised at the point in time the associated service has been completed which is generally the trade date of the transaction.
Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 186

Underwriting and syndication
Underwriting and syndication fees are earned for the distribution of client equity or debt securities and the arrangement and administration of a loan
syndication. This includes commitment fees to provide loan financing. Underwriting fees are generally recognised on trade date if there is no remaining
contingency, such as the transaction being conditional on the closing of an acquisition or another transaction. Underwriting costs are deferred and
recognised in fee and commission expense when the associated underwriting fees are recorded. Syndication fees are earned for arranging and
administering a loan syndication; however, the associated fee may be subject to variability until the loan has been syndicated to other syndicate
members or until other contingencies have been resolved and therefore the fee revenue is deferred until the uncertainty is resolved.
Included in underwriting and syndication fees are loan commitment fees, when the draw down is not probable, which are not presented as part of the
carrying value of the loan in accordance with IFRS 9. Such commitment fees are recognised over time through to the contractual maturity of the
commitment.
Contract assets and contract liabilities
The Barclays Bank Group had no material contract assets or contract liabilities as at 31 December 2022 (2021: £nil; 2020: £nil).
Impairment of fee receivables and contract assets
During 2022, there have been no material impairments recognised in relation to fees receivable and contract assets (2021: £nil; 2020: £nil). Fees in
relation to transactional business can be added to outstanding customer balances. These amounts may be subsequently impaired as part of the overall
loans and advances balance.
Remaining performance obligations
The Barclays Bank Group applies the practical expedient of IFRS 15 and does not disclose information about remaining performance obligations that
have original expected durations of one year or less or because the Barclays Bank Group has a right to consideration that corresponds directly with the
value of the service provided to the client or customer.
Costs incurred in obtaining or fulfilling a contract
The Barclays Bank Group expects that incremental costs of obtaining a contract such as success fee and commission fees paid are recoverable and
therefore capitalise such contract costs. Capitalised contract costs net of amortisation as at 31 December 2022 are £190m (2021: £148m; 2020:
£135m).
Capitalised contract costs are amortised over the customer relationship period depending on the transfer of services to which the asset pertains. In
2022, the amount of amortisation was £45m (2021: £35m; 2020: £35m) and there was no impairment loss recognised in connection with the
capitalised contract costs (2021: £nil; 2020: £nil).
5 Net trading income

Accounting for net trading income In accordance with IFRS 9, trading positions are held at fair value, and the resulting gains and losses are included in net trading income, together with interest and dividends arising from long and short positions and funding costs relating to trading activities. Income arises from both the sale and purchase of trading positions, margins which are achieved through market making and customer business and from changes in fair value caused by movements in interest and exchange rates, equity prices and other market variables. Gains or losses on non-trading financial instruments designated or mandatorily at fair value with changes in fair value recognised in the income statement are included in net trading income where the business model is to manage assets and liabilities on a fair value basis which includes use of derivatives or where an instrument is designated at fair value to eliminate an accounting mismatch and the related instrument's gain and losses are reported in net trading income.

| 2022 | 2021 | 2020
| £m | £m | £m
Net gains on financial instruments held for trading | 5,603 | 3,999 | 5,392
Net gains on financial instruments designated at fair value | 501 | 682 | 695
Net gains on financial instruments mandatorily at fair value | 1,520 | 1,107 | 989
Net trading income | 7,624 | 5,788 | 7,076

Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 187

6 Net investment expense

Accounting for net investment income/(expense) Dividends are recognised when the right to receive the dividend has been established. Other accounting policies relating to net investment income are set out in Note 12 and Note 14.

| 2022 | 2021 | 2020
| £m | £m | £m
Net gains/(losses) from financial assets mandatorily at fair value | 19 | (116) | (39)
Net (losses)/gains from disposal of debt instruments at fair value through other comprehensive income | (68) | 248 | 251
Net (losses)/gains from disposal of financial assets and liabilities measured at amortised cost | (66) | 22 | (128)
Net losses on other investments | (208) | (234) | (205)
Net investment expense | (323) | (80) | (121)

7 Operating expenses

|  | Restated c |
| 2022 | 2021 | 2020
| £m | £m | £m
Infrastructure costs |  |  |
Property and equipment | 417 | 371 | 374
Depreciation and amortisation | 470 | 403 | 421
Impairment of property, equipment and intangible assets a | 13 | 280 | 21
Total infrastructure costs | 900 | 1,054 | 816
Administration and general expenses |  |  |
Consultancy, legal and professional fees | 403 | 390 | 345
Marketing and advertising | 312 | 235 | 176
UK bank levy | 150 | 134 | 249
Other administration and general expenses | 4,014 | 3,616 | 3,432
Total administration and general expenses | 4,879 | 4,375 | 4,202
Staff costs b | 5,192 | 4,456 | 4,365
Litigation and conduct | 1,427 | 374 | 76
Operating expenses | 12,398 | 10,259 | 9,459

Notes
a In 2021, Impairment of property, equipment and intangible assets included £266m relating to structural cost actions taken as part of the real e state review.
b For further details on staff costs including accounting policies, refer to Note 29.
c 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 188

8 Credit impairment charges/(releases)
Accounting for the impairment of financial assets
Impairment
In accordance with IFRS 9, the Barclays Bank Group is required to recognise expected credit losses (ECLs) based on unbiased forward-looking
information for all financial assets at amortised cost, lease receivables, debt financial assets at fair value through other comprehensive income, loan
commitments and financial guarantee contracts. Intercompany exposures in the individual financial statements, including loan commitments and
financial guarantee contracts, are also in scope of IFRS 9 for ECL purposes.
At the reporting date, an allowance (or provision for loan commitments and financial guarantees) is required for the 12 month (Stage 1) ECLs. If the
credit risk has significantly increased since initial recognition (Stage 2), or if the financial instrument is credit impaired (Stage 3), an allowance (or
provision) should be recognised for the lifetime ECLs.
The measurement of ECL is calculated using three main components: (i) probability of default (PD) (ii) loss given default (LGD) and (iii) the exposure at
default (EAD).
The 12 month and lifetime ECLs are calculated by multiplying the respective PD, LGD and the EAD. The 12 month and lifetime PDs represent the PD
occurring over the next 12 months and the remaining maturity of the instrument respectively. The EAD represents the expected balance at default,
taking into account the repayment of principal and interest from the balance sheet date to the default event together with any expected drawdowns of
committed facilities. The LGD represents expected losses on the EAD given the event of default, taking into account, among other attributes, the
mitigating effect of collateral value at the time it is expected to be realised and the time value of money.
Expected credit loss measurement is based on the ability of borrowers to make payments as they fall due. The Barclays Bank Group also considers
sector specific risks and whether additional adjustments are required in the measurement of ECL. Credit risk may be impacted by climate considerations
for certain sectors, such as oil and gas.
Determining a significant increase in credit risk since initial recognition:
The Barclays Bank Group assesses when a significant increase in credit risk has occurred based on quantitative and qualitative assessments. The credit
risk of an exposure is considered to have significantly increased when:
i)Quantitative test
The annualised lifetime PD has increased by more than an agreed threshold relative to the equivalent at origination.
PD deterioration thresholds are defined as percentage increases, and are set at an origination score band and segment level to ensure the test
appropriately captures significant increases in credit risk at all risk levels. Generally, thresholds are inversely correlated to the origination PD, i.e. as the
origination PD increases, the threshold value reduces.
The assessment of the point at which a PD increase is deemed ‘significant’ is ba sed upon analysis of the portfolio’s risk profile against a common set of
principles and performance metrics (consistent across both retail and wholesale businesses), incorporating expert credit judgement where appropriate.
Application of quantitative PD floors does not represent the use of the low credit risk exemption as exposures can separately move into stage 2 via the
qualitative route described below.
Wholesale assets apply a 100% increase in PD and 0.2% PD floor to determine a significant increase in credit risk.
Retail assets apply bespoke relative increase and absolute PD thresholds based on product type and origination PD. Thresholds are subject to
maximums defined by Barclays Bank Group policy and typically apply minimum relative thresholds of 50%-100% and a maximum relative threshold of
400%.
For existing/historical exposures where origination point scores or data are no longer available or do not represent a comparable estimate of lifetime
PD, a proxy origination score is defined, based upon:
▪back-population of the approved lifetime PD score either to origination date or, where this is not feasible, as far back as possible (subject to a data
start point no later than 1 January 2015); or
▪use of available historical account performance data and other customer information, to derive a comparable ‘proxy’ estimation of origination PD.
ii)Qualitative test
This is relevant for accounts that meet the portfolio’s ‘high risk’ criteria and are subject to closer credit monitoring.
High risk customers may not be in arrears but either through an event or an observed behaviour exhibit credit distress. The definition and assessment of
high risk includes as wide a range of information as reasonably available, such as industry and Barclays Bank Group-wide customer level data, including
but not limited to bureau scores and high consumer indebtedness index, wherever possible or relevant.
Whilst the high risk populations applied for IFRS 9 impairment purposes are aligned with risk management processes, they are also regularly reviewed
and validated to ensure that they capture any incremental segments where there is evidence of credit deterioration.
iii)Backstop criteria
This is relevant for accounts that are more than 30 calendar days past due. The 30 days past due criteria is a backstop rather than a primary driver of
moving exposures into Stage 2.
The criteria for determining a significant increase in credit risk for assets with bullet repayments follows the same principle as all other assets, i.e.
quantitative, qualitative and backstop tests are all applied.
Exposures will move back to Stage 1 once they no longer meet the criteria for a significant increase in credit risk. This means that, at a minimum all
payments must be up-to-date, the PD deterioration test is no longer met, the account is no longer classified as high risk, and the customer has
evidenced an ability to maintain future payments.
Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 189

Exposures are only removed from Stage 3 and re-assigned to Stage 2 once the original default trigger event no longer applies. Exposures being removed
from Stage 3 must no longer qualify as credit impaired, and:
a)the obligor will also have demonstrated consistently good payment behaviour over a 12-month period, by making all consecutive contractual
payments due and, for forborne exposures, the relevant EBA defined probationary period has also been successfully complete d; or
b)(for non-forborne exposures) the performance conditions are defined and approved within an appropriately sanctioned restructure plan, including 12
months’ payment history have been met.
Management overlays and other exceptions to model outputs are applied only if consistent with the objective of identifying significant increases in
credit risk.
Forward-looking information
The measurement of ECL involves complexity and judgement, including estimation of PD, LGD, a range of unbiased future economic scenarios,
estimation of expected lives (where contractual life is not appropriate), and estimation of EAD and assessing significant increases in credit risk.
Credit losses are the expected cash shortfalls from what is contractually due over the expected life of the financial instrument, discounted at the original
effective interest rate (EIR). ECLs are the unbiased probability-weighted credit losses determined by evaluating a range of possible outcomes and
considering future economic conditions.
The Barclays Bank Group uses a five-scenario model to calculate ECL. An external consensus forecast is assembled from key sources, including HM
Treasury (short and medium term forecasts) and Bloomberg (based on median of economic forecasters), which forms the Baseline scenario. In
addition, two adverse scenarios (Downside 1 and Downside 2) and two favourable scenarios (Upside 1 and Upside 2) are derived, with associated
probability weightings. The adverse scenarios are calibrated to a broadly similar severity to the Barclays Bank Group's internal stress tests and stress
scenarios provided by regulators, whilst also considering IFRS 9 specific sensitivities and non-linearity. The favourable scenarios are designed to reflect
plausible upside risks to the Baseline scenario which are broadly consistent with the economic narrative approved by the Senior Scenario Review
Committee. All scenarios are regenerated at a minimum semi-annually. The scenarios include key economic variables (including GDP, unemployment,
House Price Index (HPI) and base rates in both the UK and US markets) and expanded variables using statistical models based on historical correlations.
The upside and downside shocks are designed to evolve over a five-year stress horizon, with all five scenarios converging to a steady state after
approximately seven years.
The methodology for estimating probability weights for each of the scenarios involves a comparison of the distribution of key historical UK and US
macroeconomic variables against the forecast paths of the five scenarios. The methodology works such that the baseline (reflecting current consensus
outlook) has the highest weight and the weights of adverse and favourable scenarios depend on the deviation from the baseline; the further from the
baseline, the smaller the weight. A single set of five scenarios is used across all portfolios and all five weights are normalised to equate to 100%. The
same scenarios used in the estimation of expected credit losses are also used to inform Barclays' internal planning. The impacts across the portfolios are
different because of the sensitivities of each of the portfolios to specific macroeconomic variables, for example, mortgages are highly sensitive to house
prices, and credit cards and unsecured consumer loans are highly sensitive to unemployment.
Definition of default, credit impaired assets, write-offs, and interest income recognition
The definition of default for the purpose of determining ECLs, and for internal credit risk management purposes, has been aligned to the Regulatory
Capital CRR Article 178 definition of default, to maintain a consistent approach with IFRS 9 and associated regulatory guidance. The Regulatory Capital
CRR Article 178 definition of default considers indicators that the debtor is unlikely to pay, includes exposures in forbearance and is no later than when
the exposure is more than 90 days past due. When exposures are identified as credit impaired at the time when they are purchased or originated,
interest income is calculated on the carrying value net of the impairment allowance.
An asset is considered credit impaired when one or more events occur that have a detrimental impact on the estimated future cash flows of the
financial asset. This comprises assets defined as defaulted and other individually assessed exposures where imminent default or actual loss is identified.
Uncollectible loans are written off against the related allowance for loan impairment on completion of the Barclays Bank Group’s internal processes and
when all reasonably expected recoverable amounts have been collected. Subsequent recoveries of amounts previously written off are credited to the
income statement. The timing and extent of write-offs may involve some element of subjective judgement. Nevertheless, a write-off will often be
prompted by a specific event, such as the inception of insolvency proceedings or other formal recovery action, which makes it possible to establish that
some or the entire advance is beyond realistic prospect of recovery.
Accounting for purchased financial guarantee contracts
The Barclays Bank Group may enter into a financial guarantee contract which requires the issuer of such contract to reimburse the Barclays Bank Group
for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. For these separate
financial guarantee contracts, the Barclays Bank Group recognises a reimbursement asset aligned with the recognition of the underlying ECLs, if it is
considered virtually certain that a reimbursement would be received if the specified debtor fails to make payment when due in accordance with the
terms of the debt instrument.
Loan modifications and renegotiations that are not credit-impaired
When modification of a loan agreement occurs as a result of commercial restructuring activity rather than due to the credit risk of the borrower, an
assessment must be performed to determine whether the terms of the new agreement are substantially different from the terms of the existing
agreement. This assessment considers both the change in cash flows arising from the modified terms as well as the change in overall instrument risk
profile. In respect of payment holidays granted to borrowers which are not due to forbearance, if the revised cash flows on a present value basis (based
on the original EIR) are not substantially different from the original cash flows, the loan is not considered to be substantially modified.
Where terms are substantially different, the existing loan will be derecognised and a new loan will be recognised at fair value, with any difference in
valuation recognised immediately within the income statement, subject to observability criteria.
Where terms are not substantially different, the loan carrying value will be adjusted to reflect the present value of modified cash flows discounted at the
original EIR, with any resulting gain or loss recognised immediately within the income statement as a modification gain or loss.
Note 1 sets out details for changes in the basis of determining the contractual cash flows of a financial instrument that are required by interest rate
benchmark reform.
Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 190

Expected life
Lifetime ECLs must be measured over the expected life. This is restricted to the maximum contractual life and takes into account expected prepayment,
extension, call and similar options. The exceptions are certain revolver financial instruments, such as credit cards and bank overdrafts, that include both
a drawn and an undrawn component where the entity’s contractual ability to demand repayment and cancel the undrawn commitment does not limit
the entity’s exposure to credit losses to the contractual notice period. For revolving facilities, expected life is analytically derived to reflect the
behavioural life of the asset, i.e. the full period over which the business expects to be exposed to credit risk. Behavioural life is typically based upon
historical analysis of the average time to default, closure or withdrawal of facility. Where data is insufficient or analysis inconclusive, an additional
‘maturity factor’ may be incorporated to reflect the full estimated life of the exposures, based upon experienced judgement and/or peer analysis.
Potential future modifications of contracts are not taken into account when determining the expected life or EAD until they occur.
Discounting
ECLs are discounted at the EIR at initial recognition or an approximation thereof and consistent with income recognition. For loan commitments the EIR
is the rate that is expected to apply when the loan is drawn down and a financial asset is recognised. Issued financial guarantee contracts are
discounted at the risk free rate. Lease receivables are discounted at the rate implicit in the lease. For variable/floating rate financial assets, the spot rate
at the reporting date is used and projections of changes in the variable rate over the expected life are not made to estimate future interest cash flows or
for discounting.
Modelling techniques
The regulatory Basel Committee of Banking Supervisors (BCBS) ECL calculations are leveraged for IFRS 9 modelling but adjusted for key differences
which include:
▪BCBS requires 12 month through the economic cycle losses whereas IFRS 9 requires 12 months or lifetime point in time losses based on conditions at
the reporting date and multiple forecasts of the future economic conditions over the expected lives;
▪IFRS 9 models do not include certain conservative BCBS model floors and downturn assessments and require discounting to the reporting date at the
original EIR rather than using the cost of capital to the date of default;
▪management adjustments are made to modelled output to account for situations where known or expected risk factors and information have not
been considered in the modelling process, for example forecast economic scenarios for uncertain political events; and
▪ECL is measured at the individual financial instrument level, however a collective approach where financial instruments with similar risk
characteristics are grouped together, with apportionment to individual financial instruments, is used where effects can only be seen at a collective
level, for example for forward-looking information.
For the IFRS 9 impairment assessment, the Barclays Bank Group’s risk models are used to determine the PD, LGD and EAD. For Stage 2 and 3, the
Barclays Bank Group applies lifetime PDs but uses 12 month PDs for Stage 1. The ECL drivers of PD, EAD and LGD are modelled at an account level
which considers vintage, among other credit factors. Also, the assessment of significant increase in credit risk is based on the initial lifetime PD curve,
which accounts for the different credit risk underwritten over time.
Forbearance
A financial asset is subject to forbearance when it is modified due to the credit distress of the borrower. A modification made to the terms of an asset
due to forbearance will typically be assessed as a non-substantial modification that does not result in derecognition of the original loan, except in
circumstances where debt is exchanged for equity.
Both performing and non-performing forbearance assets are classified as Stage 3 except where it is established that the concession granted has not
resulted in diminished financial obligation and that no other regulatory definitions of default criteria have been triggered, in which case the asset is
classified as Stage 2. The minimum probationary period for non-performing forbearance is 12 months and for performing forbearance, 24 months.
Hence, a minimum of 36 months is required for non-performing forbearance to move out of a forborne state.
No financial instrument in forbearance can transfer back to Stage 1 until all of the Stage 2 thresholds are no longer met and can only move out of Stage
3 when no longer credit impaired.
Critical accounting estimates and judgements
IFRS 9 impairment involves several important areas of judgement, including estimating forward looking modelled parameters (PD, LGD and EAD),
developing a range of unbiased future economic scenarios, estimating expected lives and assessing significant increases in credit risk, based on the
Barclays Bank Group’s experience of managing credit risk. The determination of expected life is most material for Barclays credit card portfolios which is
obtained via behavioural life analysis to materially capture the risk of these facilities.
Within the retail and small businesses portfolios, which comprise large numbers of small homogenous assets with similar risk characteristics where
credit scoring techniques are generally used, the impairment allowance is calculated using forward looking modelled parameters which are typically run
at account level. There are many models in use, each tailored to a product, line of business or customer category. Judgement and knowledge is needed
in selecting the statistical methods to use when the models are developed or revised. Management adjustments to impairment models, which contain
an element of subjectivity, are applied in order to factor in certain conditions or changes in policy that are not fully incorporated into the impairment
models, or to reflect additional facts and circumstances at the period end. Management adjustments are reviewed and incorporated into future model
development where appropriate.
For individually significant assets in Stage 3, impairment allowances are calculated on an individual basis and all relevant considerations that have a
bearing on the expected future cash flows across a range of economic scenarios are taken into account. These considerations can be particularly
subjective and can include the business prospects for the customer, the realisable value of collateral, the Barclays Bank Group’s position relative to other
claimants, the reliability of customer information and the likely cost and duration of the work-out process. The level of the impairment allowance is the
difference between the value of the discounted expected future cash flows (discounted at the loan’s original effective interest rate), and its carrying
amount. Furthermore, judgements change with time as new information becomes available or as work-out strategies evolve, resulting in frequent
revisions to the impairment allowance as individual decisions are taken. Changes in these estimates would result in a change in the allowances and have
a direct impact on the impairment charge.
Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 191

Temporary adjustments to calculated IFRS 9 impairment allowances may be applied in limited circumstances to account for situations where known or
expected risk factors or information have not been considered in the ECL assessment or modelling process. For further information please see page 87
in credit risk performance.
Information about the potential impact of the physical and transition risks of climate change on borrowers is considered, taking into account reasonable
and supportable information to make accounting judgements and estimates. Climate change is inherently of a long-term nature, with significant levels
of uncertainty, and consequently requires judgement in determining the possible impact in the next financial year, if any.

| 2022 | 2021 | 2020
| Impairment Charges/ (Releases) | Recoveries and Reimbursements a | Total | Impairment Charges/ (Releases) | Recoveries and Reimbursements | Total | Impairment Charges/ (Releases) | Recoveries and Reimbursements | Total
| £m | £m | £m | £m | £m | £m | £m | £m | £m
Loans and advances at amortised cost | 1,118 | (228) | 890 | (264) | 259 | (5) | 3,060 | (368) | 2,692
Off-balance sheet loan commitments and financial guarantee contracts | 7 | — | 7 | (257) | — | (257) | 547 | — | 547
Total | 1,125 | (228) | 897 | (521) | 259 | (262) | 3,607 | (368) | 3,239
Cash collateral and settlement balances | 28 | — | 28 | (4) | — | (4) | 2 | — | 2
Financial instruments at fair value through other comprehensive income | 8 | — | 8 | (6) | — | (6) | — | — | —
Other financial assets measured at cost | — | — | — | (5) | — | (5) | 136 | — | 136
Credit impairment charges/(releases) | 1,161 | (228) | 933 | (536) | 259 | (277) | 3,745 | (368) | 3,377

Note
a.Recoveries and reimbursements include a net increase in amounts recoverable from financial guarantee contracts held with third parties of £195m (20 21: £(290)m) and
cash recoveries of previously written off amounts of £33m (2021: £31 m).
Write-offs that can be subjected to enforcement activity
The contractual amount outstanding on financial assets that were written off during the year and that can still be subjected to enforcement activity is
£512m (2021: £752m). This is lower than the write-offs presented in the movement in gross exposures and impairment allowance table due to assets
sold during the year post write-offs and post write-off recoveries.
Modification of financial assets
Financial assets of £2,237m (2021: £3,260m), with a loss allowance measured at an amount equal to lifetime ECL, were subject to non-substantial
modification during the year, with a resulting loss of £1m (2021: £2m). The gross carrying amount at 31 December 2022 of financial assets subject to
non-substantial modification for which the loss allowance has changed to a 12 month ECL during the year amounts to £1,077m (2021: £419m).
Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 192

9 Tax
Accounting for income taxes
The Barclays Bank Group applies IAS 12 Income Taxes in accounting for taxes on income. Income tax payable on taxable profits (current tax) is
recognised as an expense in the periods in which the profits arise. Withholding taxes are also treated as income taxes. Income tax recoverable on tax
allowable losses is recognised as a current tax asset only to the extent that it is regarded as recoverable by offsetting against taxable profits arising in
the current or prior periods. Current tax is measured using tax rates and tax laws that have been enacted or substantively enacted at the balance sheet
date.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and unused tax losses can be utilised. Deferred tax liabilities are recognised for all taxable
temporary differences except for the initial recognition of goodwill. Deferred tax is not recognised where the temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss. Deferred tax is determined using tax rates and legislation enacted or substantively enacted by the balance sheet date
which are expected to apply when the deferred tax asset is realised or the deferred tax liability is settled. Deferred tax assets and liabilities are only offset
when there is both a legal right to set-off and an intention to settle on a net basis.
The Barclays Bank Group considers an uncertain tax position to exist when it considers that ultimately, in the future, the amount of profit subject to tax
may be greater than the amount initially reflected in the Barclays Bank Group’s tax returns. The Barclays Bank Group accounts for provisions in respect
of uncertain tax positions in two different ways.
A current tax provision is recognised when it is considered probable that the outcome of a review by a tax authority of an uncertain tax position will
alter the amount of cash tax due to, or from, a tax authority in the future. From recognition, the current tax provision is then measured at the amount
the Barclays Bank Group ultimately expects to pay the tax authority to resolve the position. The accrual of interest and penalty amounts in respect of
uncertain income tax positions is recognised as an expense within profit before tax.
Deferred tax provisions are adjustments made to the carrying value of deferred tax assets in respect of uncertain tax positions. A deferred tax provision
is recognised when it is considered probable that the outcome of a review by a tax authority of an uncertain tax position will result in a reduction in the
carrying value of the deferred tax asset. From recognition of a provision, measurement of the underlying deferred tax asset is adjusted to take into
account the expected impact of resolving the uncertain tax position on the loss or temporary difference giving rise to the deferred tax asset.
The approach taken to measurement takes account of whether the uncertain tax position is a discrete position that will be reviewed by the tax authority
in isolation from any other position, or one of a number of issues which are expected to be reviewed together concurrently and resolved simultaneously
with a tax authority. The Barclays Bank Group’s measurement of provisions is based upon its best estimate of the additional profit that will become
subject to tax. For a discrete position, consideration is given only to the merits of that position. Where a number of issues are expected to be reviewed
and resolved together, the Barclays Bank Group will take into account not only the merits of its position in respect of each particular issue but also the
overall level of provision relative to the aggregate of the uncertain tax positions across all the issues that are expected to be resolved at the same time. In
addition, in assessing provision levels, it is assumed that tax authorities will review uncertain tax positions and that all facts will be fully and
transparently disclosed.
Critical accounting estimates and judgements
There are two key areas of judgement that impact the reported tax position. Firstly, the level of provisioning for uncertain tax positions; and secondly,
the recognition and measurement of deferred tax assets.
The Barclays Bank Group does not consider there to be a significant risk of a material adjustment to the carrying amount of current and deferred tax
balances, including provisions for uncertain tax positions in the next financial year. The provisions for uncertain tax positions cover a diverse range of
issues and reflect advice from external counsel where relevant. It should be noted that only a proportion of the total uncertain tax positions will be
under audit at any point in time, and could therefore be subject to challenge by a tax authority over the next year.
Deferred tax assets have been recognised based on business profit forecasts. Details on the recognition of deferred tax assets are provided in this note.

|  | Restated a |
| 2022 | 2021 | 2020
| £m | £m | £m
Current tax charge/(credit) |  |  |
Current year | 623 | 904 | 993
Adjustments in respect of prior years | (625) | 393 | 3
| (2) | 1,297 | 996
Deferred tax charge/(credit) |  |  |
Current year | 19 | (179) | (563)
Adjustments in respect of prior years | 468 | (288) | 191
| 487 | (467) | (372)
Tax charge | 485 | 830 | 624

a.2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
In 2022 the adjustments in respect of prior years are principally a result of various steps taken in the US tax group that have affected the timing of the
tax deductibility of expenditure related to fixed assets. Across the Barclays Bank PLC’s US Branch Tax Group and US Intermediate Holding Company Tax
Group ("IHC Tax Group") elections have been made in 2022 to advance tax deductions in relation to fixed assets that would otherwise have arisen in
later periods. Those elections resulted in a current tax credit in respect of prior years of £556m an d a deferred tax charge in respect of prior years of a
similar amount.
Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 193

The table below shows the reconciliation between the actual tax charge and the tax charge that would result from applying the standard UK corporation
tax rate to the Barclays Bank Group’s profit before tax.

|  |  | Restated a | Restated a |  |
| 2022 | 2022 | 2021 | 2021 | 2020 | 2020
| £m | % | £m | % | £m | %
Profit before tax from continuing operations | 4,867 |  | 5,418 |  | 3,075 |
Tax charge based on the standard UK corporation tax rate of 19% (2021: 19%, 2020: 19%) | 925 | 19.0% | 1,029 | 19.0% | 584 | 19.0%
Impact of profits/losses earned in territories with different statutory rates to the UK (weighted average tax rate is 22.3% (2021: 24.0%, 2020: 25.0%)) | 160 | 3.3% | 273 | 5.0% | 183 | 6.0%
Recurring items: |  |  |  |  |  |
Non-creditable taxes including withholding taxes | 117 | 2.4% | 124 | 2.3% | 107 | 3.4%
Non-deductible expenses | 28 | 0.6% | 61 | 1.1% | 28 | 0.9%
Impact of UK bank levy being non-deductible | 28 | 0.6% | 25 | 0.5% | 48 | 1.6%
Impact of Barclays Bank PLC's overseas branches being taxed both locally and in the UK | 17 | 0.3% | 25 | 0.5% | 25 | 0.8%
Tax adjustments in respect of share-based payments | 10 | 0.2% | (5) | (0.1%) | 14 | 0.5%
Banking surcharge b and other items | (39) | (0.8%) | (48) | (0.9%) | (70) | (2.3%)
Non-taxable gains and income | (129) | (2.6%) | (152) | (2.8%) | (180) | (5.9%)
Tax relief on payments made under AT1 instruments | (136) | (2.8%) | (113) | (2.1%) | (124) | (4.0%)
Changes in recognition of deferred tax and effect of unrecognised tax losses | (146) | (3.0%) | (140) | (2.6%) | (123) | (4.0%)
Adjustments in respect of prior years | (157) | (3.2%) | 105 | 1.9% | 194 | 6.3%
Tax relief on holdings of inflation-linked government bonds | (510) | (10.5%) | (157) | (2.9%) | (20) | (0.6%)
Non-recurring items: |  |  |  |  |  |
Remeasurement of UK deferred tax assets due to tax rate changes | 183 | 3.8% | (218) | (4.0%) | (43) | (1.4%)
Non-deductible provisions for investigations and litigation | 85 | 1.7% | — | — | (6) | (0.2%)
Non-deductible provisions for UK customer redress | 49 | 1.0% | 21 | 0.4% | 7 | 0.2%
Total tax charge | 485 | 10.0% | 830 | 15.3% | 624 | 20.3%

a.2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
b.Banking surcharge includes the impact of the 8% UK banking surcharge rate on profits/losses and tax adjustments relating to UK banking entities.
Factors driving the effective tax rate
The effective tax rate of 10.0% is lower than the UK corporation tax rate of 19.0% primarily due to tax relief on holdings of inflation-linked government
bonds, beneficial prior year adjustments, the utilisation of unrecognised tax losses in the period, tax relief on payments made under AT 1 instruments
and non-taxable gains and income. These factors, which have each decreased the effective tax rate, are partially offset by adjustments for the
remeasurement of UK deferred tax assets as a result of the enactment in 2022 of a reduction in the banking surcharge rate to 3% from 1 April 2023,
profits earned outside the UK being taxed at local statutory tax rates that are higher than the UK tax rate and non-creditable taxes.
The Barclays Bank Group’s future tax charge will be sensitive to the geographic mix of profits earned, the tax rates in force and changes to the tax rules
in the jurisdictions that the Barclays Bank Group operates in.
In its Autumn Statement held in November 2022, the UK Government confirmed that, as currently enacted, the banking surcharge rate will be reduced
from 8% to 3% from 1 April 2023. UK deferred tax assets as at 31 December 2022 are measured at this rate, having been remeasured when the 3% rate
was substantively enacted in 2022. The statutory tax rate applicable to banks' UK profits will therefore be 28% (comprising a rate of 25% for
corporation tax and of 3% for banking surcharge) from 1 April 2023.
The OECD and G20 Inclusive Framework on Base Erosion and Profit Shifting announced plans to introduce a global minimum tax rate of 15% and the
OECD issued model rules in 2021. During 2022 further OECD guidance has been released and draft legislation to implement the global minimum tax
regime has been published by the UK Government. The UK Government has stated that it intends to enact legislation in 2023 to apply for accounting
periods beginning on or after 31 December 2023. The Barclays Bank Group has reviewed the published OECD model rules and further guidance along
with the draft UK legislation and has been assessing the expected impact ahead of the implementation of the new regime. The Barclays Bank Group will
review further guidance as well as new legislation expected to be released by governments implementing this new tax regime and continue to assess
the potential impact.
In the USA, the Inflation Reduction Act was enacted in August 2022. The Act does not include changes to the US corporate income tax rate or to US
international tax provisions included in the previously proposed Build Back Better Act but does introduce a corporate alternative minimum tax on
adjusted financial statements income, effective from 1 January 2023. Further regulations and guidance are expected to be published in 2023, however
the Barclays Bank Group’s preliminary view is that the alternative minimum tax is not expected to materially increase the Barclays Bank Group’s effective
tax rate. The Barclays Bank Group will review future guidance when it is published and continue to monitor other legislative developments and assess
the potential impact.
Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 194

Tax in the consolidated statement of comprehensive income
Tax relating to each component of other comprehensive income can be found in the consolidated statement of comprehensive income. The total
amount recognised in relation to the remeasurement of UK deferred tax through other comprehensive income was a £83 m credit (2021: £148 m
charge).
Tax included directly in equity
Tax included directly in equity comprises a £1 m debit (2021: £38m credit) relating to share-based payments and deductible costs on issuing other
equity instruments.
Deferred tax assets and liabilities
The deferred tax amounts on the balance sheet were as follows:

| Barclays Bank Group
| 2022 | 2021
| £m | £m
IHC Tax Group | 1,094 | 1,004
Barclays Bank PLC's US Branch Tax Group | 482 | 1,002
UK Tax Group | 2,557 | 576
Other (outside the UK and US tax groups) | 450 | 399
Deferred tax asset | 4,583 | 2,981
Deferred tax liability - UK Tax Group | — | (6)
Net deferred tax | 4,583 | 2,975

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
Barclays Bank PLC's US Branch Tax Group | 482 | 1,002
UK Tax Group | 2,553 | 578
Other (outside the UK and US tax groups) | 79 | 99
Deferred tax asset | 3,114 | 1,679
Deferred tax liability - UK Tax Group | — | (6)
Net deferred tax | 3,114 | 1,673

US deferred tax assets in the IHC and the US Branch Tax Groups
The deferred tax asset in the IHC Tax Group of £1,094 m (2021: £1,004m) includes £21 m (2021: £1m) relating to tax losses, with the balance relating to
temporary differences. The deferred tax asset in Barclays Bank PLC’s US Branch Tax Group of £482 m (2021: £1,002m) relates entirely to temporary
differences.
In relation to the IHC Tax Group, these temporary differences include £434m (2021: £301m) arising from New York State and City prior net operating
loss conversion which can be carried forward and will expire in 2034. Business profit forecasts indicate these amounts will be fully recovered before
expiry.
UK Tax Group deferred tax assets and liabilities
The net deferred tax asset in the UK Tax Group of £2,557 m (2021: £576m) includes a deferred tax asset of £1,237m (2021: £1,074m) relating to tax
losses with the balance relatin g to temporary differences. There is no time limit on utilisation of UK tax losses and business profit forecasts indicate
these losses will be fully recovered.
Other deferred tax assets (outside the UK and US tax groups)
The deferred tax asset of £450m (2021: £399m) in other entities within the Barclays Bank Group includes £90m (2021: £121m) relating to tax losses.
These deferred tax assets relate to a number of different territories and their recognition is based on profit forecasts or local country law which indicate
that it is probable that those deferred tax assets will be fully recovered.
Of the deferred tax asset of £450m (2021: £399m), an amount of £33m (2021: £9m) relates to entities which have suffered a loss in either the current
or prior year and the utilisation of which is dependent upon future taxable profits. This has been taken into account in reaching the above conclusion
that these deferred tax assets will be fully recovered in the future.
Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 195

The table below shows movements on deferred tax assets and liabilities during the year. The amounts are different from those disclosed on the balance
sheet and in the preceding table as they are presented before offsetting asset and liability balances where there is a legal right to set-off and an intention
to settle on a net basis.

Barclays Bank Group |  |  |  |  |  |  |  |  |  |
| Fixed asset timing differences | Fair value through other comprehensive income | Cash flow hedges | Retirement benefit obligations | Loan impairment allowance | Own credit | Share based payments and deferred compensation | Other temporary differences | Tax losses carried forward | Total
| £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Assets | 678 | 144 | 309 | 24 | 481 | 426 | 327 | 1,134 | 1,196 | 4,719
Liabilities | (30) | — | — | (1,674) | — | — | — | (40) | — | (1,744)
As at 1 January 2022 | 648 | 144 | 309 | (1,650) | 481 | 426 | 327 | 1,094 | 1,196 | 2,975
Income statement | (531) | (6) | — | (7) | 47 | — | (2) | (140) | 152 | (487)
Other comprehensive income and reserves | — | 449 | 1,731 | 357 | — | (616) | (17) | — | — | 1,904
Other movements | 33 | 3 | — | 6 | 20 | — | 21 | 108 | — | 191
| 150 | 590 | 2,040 | (1,294) | 548 | (190) | 329 | 1,062 | 1,348 | 4,583
Assets | 215 | 590 | 2,040 | 21 | 548 | — | 329 | 1,138 | 1,348 | 6,229
Liabilities | (65) | — | — | (1,315) | — | (190) | — | (76) | — | (1,646)
As at 31 December 2022 | 150 | 590 | 2,040 | (1,294) | 548 | (190) | 329 | 1,062 | 1,348 | 4,583
Assets | 659 | — | — | 30 | 455 | 329 | 317 | 1,187 | 711 | 3,688
Liabilities | (33) | (21) | (441) | (826) | — | — | — | (40) | — | (1,361)
As at 1 January 2021 | 626 | (21) | (441) | (796) | 455 | 329 | 317 | 1,147 | 711 | 2,327
Income statement | 14 | (6) | — | 1 | 38 | — | (13) | (52) | 485 | 467
Other comprehensive income and reserves | — | 170 | 750 | (855) | — | 98 | 20 | (1) | — | 182
Other movements | 8 | 1 | — | — | (12) | (1) | 3 | — | — | (1)
| 648 | 144 | 309 | (1,650) | 481 | 426 | 327 | 1,094 | 1,196 | 2,975
Assets | 678 | 144 | 309 | 24 | 481 | 426 | 327 | 1,134 | 1,196 | 4,719
Liabilities | (30) | — | — | (1,674) | — | — | — | (40) | — | (1,744)
As at 31 December 2021 | 648 | 144 | 309 | (1,650) | 481 | 426 | 327 | 1,094 | 1,196 | 2,975

Barclays Bank PLC | Fixed asset timing differences | Fair value through other comprehensive income | Cash flow hedges | Retirement benefit obligations | Loan impairment allowance | Own credit | Share based payments and deferred compensation | Other temporary differences | Tax losses carried forward | Total
| £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Assets | 555 | 147 | 307 | — | 200 | 411 | 128 | 536 | 1,076 | 3,360
Liabilities | (14) | — | — | (1,673) | — | — | — | — | — | (1,687)
As at 1 January 2022 | 541 | 147 | 307 | (1,673) | 200 | 411 | 128 | 536 | 1,076 | 1,673
Income statement | (488) | — | — | — | (19) | — | 1 | (144) | 161 | (489)
Other comprehensive income and reserves | (30) | 449 | 1,707 | 360 | — | (601) | (7) | — | — | 1,878
Other movements | 16 | — | — | — | — | — | — | 36 | — | 52
| 39 | 596 | 2,014 | (1,313) | 181 | (190) | 122 | 428 | 1,237 | 3,114
Assets | 51 | 596 | 2,014 | — | 181 | — | 122 | 922 | 1,237 | 5,123
Liabilities | (12) | — | — | (1,313) | — | (190) | — | (494) | — | (2,009)
As at 31 December 2022 | 39 | 596 | 2,014 | (1,313) | 181 | (190) | 122 | 428 | 1,237 | 3,114
Assets | 538 | — | — | — | 263 | 318 | 106 | 476 | 543 | 2,244
Liabilities | (7) | (25) | (441) | (825) | — | — | — | — | — | (1,298)
As at 1 January 2021 | 531 | (25) | (441) | (825) | 263 | 318 | 106 | 476 | 543 | 946
Income statement | 3 | — | — | — | (51) | — | 11 | 59 | 533 | 555
Other comprehensive income and reserves | — | 172 | 748 | (848) | — | 92 | 11 | (2) | — | 173
Other movements | 7 | — | — | — | (12) | 1 | — | 3 | — | (1)
| 541 | 147 | 307 | (1,673) | 200 | 411 | 128 | 536 | 1,076 | 1,673
Assets | 555 | 147 | 307 | — | 200 | 411 | 128 | 536 | 1,076 | 3,360
Liabilities | (14) | — | — | (1,673) | — | — | — | — | — | (1,687)
As at 31 December 2021 | 541 | 147 | 307 | (1,673) | 200 | 411 | 128 | 536 | 1,076 | 1,673

Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 196

Other movements include the impact of changes in foreign exchange rates as well as deferred tax amounts relating to acquisitions and disposals.
The amount of deferred tax asset expected to be recovered after more than 12 months for the Barclays Bank Group is £5,514m (2021: £4,328m) and
for Barclays Bank PLC is £4,335 m (2021: £3,017 m). The amount of deferred tax liability expected to be settled after more than 12 months for the
Barclays Bank Group is £1,545m (2021: £1,740m) and for Barclays Bank PLC is £1,505 m (2021: £1,687 m). These amounts are before offsetting asset
and liability balances where there is a legal right to set-off and an intention to settle on a net basis.
Unrecognised deferred tax
Tax losses and temporary differences
The Barclays Bank Group has deferred tax assets not recognised in respect of gross deductible temporary differences of £111m (2021: £110m), unused
tax credits of £323 m (2021: £283m), and gross tax losses of £22,263m (2021: £22,496m). The tax losses include capital losses of £3,661m (2021:
£3,642m). Of these tax losses, £149m (2021: £63m) expire within five years, £401m (2021: £370m) expire within six to ten years, £10,393m (2021:
£10,529m) expire within 11 to 20 years and £11,320m (2021: £11,534m) can be carried forward indefinitely. Deferred tax assets have not been
recognised in respect of these items because it is not probable that future taxable profits and gains will be available against which they can be utilised.
For Barclays Bank PLC, deferred tax assets have not been recognised in respect of gross deductible temporary differences of £48 m (2021: £11 m),
unused tax credits of £206 m (2021: £206 m), and gross tax losses of £4,277 m (2021: £4,138 m) which includes capital losses of £2,905 m (2021:
£2,883 m). Of these tax losses, £138 m (2021: £56m) expire within five years and £4,139 m (2021: £4,082 m) can be carried forward indefinitely. Deferred
tax assets have not been recognised in respect of these items because it is not probable that future taxable profits and gains will be available against
which they can be utilised.
Barclays Bank Group investments in subsidiaries, branches and associates
Deferred tax is not recognised in respect of the value of Barclays Bank Group's investments in subsidiaries, branches and associates where the Barclays
Bank Group is able to control the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the
foreseeable future. The aggregate amount of these temporary differences for which deferred tax liabilities have not been recognised was £852 m (2021:
£857m).
10 Dividends on ordinary shares and preference shares
The 2022 financial statements include £200m (2021: £794m) of dividends paid on ordinary shares. This comprises one interim dividend declared in
re lation to the prior year of £200m (2021: £174m) and no interim dividends in relation to 2022 (2021: two interim dividends totalling £620m).
This results in a total dividend for the year of £0.09 (2021: £0.34) per ordinary share.
Dividends paid on preference shares amounted to £31m (2021: £27m). Dividends paid on the Euro preference shares amounted to £53.42 per share
(2021: £14.37). Dividends paid on the US Dollar preference shares amounted to £511.27 per share (2021: £459.69).
The Directors have approved an interim dividend in respect of 2022 of £700m. The financial statements for the year ended 31 December 2022 do not
reflect this dividend, which will be accounted for in shareholders’ equity as an appropriation of retained profits in the year ending 31 December 2023.
Notes to the financial statements
Financial performance and returns

home.barclays/annualreport | Barclays Bank PLC Annual Report | 197

The notes included in this section focus on assets and liabilities the Barclays Bank Group holds and recognises at fair value. Fair value refers to the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date, which may be an observable market price or, where there is no quoted price for the instrument, may be an estimate based on available market data. Details regarding the Barclays Bank Group’s approach to managing market risk can be found on page 60-61.

11 Trading portfolio

Accounting for trading portfolio assets and liabilities In accordance with IFRS 9, all assets and liabilities held for trading purposes are held at fair value with gains and losses in the changes in fair value taken to the income statement in net trading income (Note 5).

| Barclays Bank Group
| 2022 | 2021
| £m | £m
Debt securities and other eligible bills | 55,430 | 50,700
Equity securities | 65,034 | 83,113
Traded loans | 13,198 | 12,525
Commodities | 109 | 533
Trading Portfolio Assets | 133,771 | 146,871
Debt securities and other eligible bills | (39,068) | (34,079)
Equity securities | (33,392) | (19,212)
Trading Portfolio Liabilities | (72,460) | (53,291)

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
Debt securities and other eligible bills | 31,410 | 33,517
Equity securities | 38,662 | 50,837
Traded loans | 12,971 | 11,989
Commodities | — | 381
Trading Portfolio assets | 83,043 | 96,724
Debt securities and other eligible bills | (22,977) | (21,307)
Equity securities | (29,116) | (28,809)
Trading Portfolio liabilities | (52,093) | (50,116)

12 Financial assets at fair value through the income statemen t

Accounting for financial assets mandatorily at fair value Financial assets that are held for trading are recognised at fair value through profit or loss. In addition, financial assets are held at fair value through profit or loss if they do not contain contractual terms that give rise on specified dates to cash flows that are Solely Payments of Principal and Interest (SPPI), or if the financial asset is not held in a business model that is either (i) a business model to collect the contractual cash flows or (ii) a business model that is achieved by both collecting contractual cash flows and selling.
Accounting for financial assets designated at fair value Financial assets, other than those held for trading, are classified in this category if they are so irrevocably designated at inception and the use of the designation removes or significantly reduces an accounting mismatch. Subsequent changes in fair value for these instruments are recognised in the income statement in net investment income, except if reporting it in trading income reduces an accounting mismatch. The details on how the fair value amounts are derived for financial assets at fair value are described in Note 16.

Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 198

| Barclays Bank Group
| 2022 | 2021
| £m | £m
Loans and advances | 1,679 | 2,813
Debt securities | 205 | 318
Other financial assets | 1 | —
Financial assets designated at fair value | 1,885 | 3,131
Loans and advances | 36,511 | 33,089
Debt securities | 3,012 | 1,937
Equity securities | 4,934 | 4,798
Reverse repurchase agreements and other similar secured lending | 164,698 | 145,186
Other financial assets | 88 | 85
Financial assets mandatorily at fair value | 209,243 | 185,095
Total | 211,128 | 188,226

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
Loans and advances | 1,679 | 2,813
Other financial assets | 1 | —
Financial assets designated at fair value | 1,680 | 2,813
Loans and advances | 44,151 | 42,498
Debt securities | 3,869 | 3,053
Equity securities | 159 | 138
Reverse repurchase agreements and other similar secured lending | 197,440 | 188,053
Other financial assets | 26 | 22
Financial assets mandatorily at fair value | 245,645 | 233,764
Total | 247,325 | 236,577

Credit risk of financial assets designated at fair value and related credit derivatives
The following table shows the maximum exposure to credit risk, the changes in fair value attributable to changes in credit risk, and the cumulative
changes in fair value since initial recognition for loans and advances. The table does not include debt securities and reverse repurchase agreements and
other similar secured lending designated at fair value as they have minimal exposure to credit risk. Reverse repurchase agreements are collateralised
and debt securities are primarily relating to high quality sovereigns.

| Barclays Bank Group
| Maximum exposure as at 31 December | Changes in fair value during the year ended | Cumulative changes in fair value from inception
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021
| £m | £m | £m | £m | £m | £m
Loans and advances designated at fair value, attributable to credit risk | 1,679 | 2,813 | — | 1 | (3) | (3)
Value mitigated by related credit derivatives | 855 | 1,617 | (1) | (3) | (1) | (3)

| Barclays Bank PLC
| Maximum exposure as at 31 December | Changes in fair value during the year ended | Cumulative changes in fair value from inception
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021
| £m | £m | £m | £m | £m | £m
Loans and advances designated at fair value, attributable to credit risk | 1,679 | 2,813 | — | 1 | (3) | (3)
Value mitigated by related credit derivatives | 855 | 1,617 | (1) | (3) | (1) | (3)

Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 199

13 Derivative financial instruments
Accounting for derivatives
Derivative instruments are contracts whose value is derived from one or more underlying financial instruments or indices defined in the contract. They
include swaps, forward-rate agreements, futures, options and combinations of these instruments and primarily affect the Barclays Bank Group’s net
interest income, net trading income and derivative assets and liabilities. Notional amounts of the contracts are not recorded on the balance sheet.
Derivatives are used to hedge interest rate, credit risk, inflation risk, exchange rate, commodity, equity exposures and exposures to certain indices such
as house price indices and retail price indices related to non-trading positions.
All derivative instruments are held at fair value through profit or loss, except for derivatives that are in a designated cash flow or net investment hedge
accounting relationship. Derivatives are classified as assets when their fair value is positive or as liabilities when their fair value is negative. This includes
terms included in a contract or financial liability (the host) which, had they been a standalone contract, would have met the definition of a derivative. If
these are separated from the host, i.e. when the economic characteristics of the embedded derivative are not closely related with those of the host
contract and the combined instrument is not measured at fair value through profit or loss, then they are accounted for in the same way as derivatives.
For financial assets, the requirements are whether the financial assets contain contractual terms that give rise on specified dates to cash flows that are
SPPI, and consequently the requirements for accounting for embedded derivatives are not applicable to financial assets.
Hedge accounting
The Barclays Bank Group applies the requirements of IAS 39 Financial Instruments: Recognition and Measurement for hedge accounting purposes. The
Barclays Bank Group applies hedge accounting to represent the economic effects of its interest rate, currency and contractually linked inflation risk
management strategies. Where derivatives are held for risk management purposes, and when transactions meet the required criteria for documentation
and hedge effectiveness, the Barclays Bank Group applies fair value hedge accounting, cash flow hedge accounting, or hedging of a net investment in a
foreign operation, as appropriate to the risks being hedged.
The Barclays Bank Group applies the ‘Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform’ issued in September 2019 (the Phase
1 amendments).
The amendments provide temporary relief from applying specific hedge accounting requirements to hedging relationships directly affected by IBOR
(‘Interbank Offered Rates’) reform. The reliefs have the effect that IBOR reform should not generally cause hedge accounting to terminate. However, any
hedge ineffectiveness continues to be recorded in the income statement. Furthermore, the amendments set out triggers for when the reliefs will end,
which include the uncertainty arising from interest rate benchmark reform no longer being present.
In summary, the reliefs provided by the Phase 1 amendments are:
▪When considering the ‘highly probable’ requirement, the Barclays Bank Group has assumed that the IBOR interest rates upon which our hedged items
are based do not change as a result of IBOR reform.
▪In assessing whether the hedge is expected to be highly effective on a forward-looking basis the Barclays Bank Group has assumed that the IBOR
interest rates upon which the cash flows of the hedged items and the interest rate swaps that hedge them are based are not altered by IBOR reform.
▪The Barclays Bank Group will not discontinue hedge accounting during the period of IBOR-related uncertainty solely because the retrospective
effectiveness falls outside the required 80% –125% range.
▪The Barclays Bank Group has not recycled the cash flow hedge reserve relating to the period after the reforms are expected to take effect.
▪The Barclays Bank Group has assessed whether the hedged IBOR risk component is a separately identifiable risk only when it first designates a
hedged item in a fair value hedge and not on an ongoing basis.
The Barclays Bank Group also applies the ‘Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2’ issued
in August 2020. The Phase 2 amendments provide relief when changes are made to hedge relationships as a result of the interest rate benchmark
reform.
In summary, the reliefs provided by the Phase 2 amendments are:
▪Under a temporary exception, the Barclays Bank Group has considered that changes to the hedge designation and hedge documentation due to the
interest rate benchmark reform would not constitute the discontinuation of the hedge relationship nor the designation of a new hedging relationship.
▪In respect of the retrospective hedge effectiveness assessment, the Barclays Bank Group may elect, on a hedge-by-hedge basis, to reset the
cumulative fair value changes to zero when the exception to the retrospective assessment ends (Phase 1 relief). Any hedge ineffectiveness will
continue to be measured and recognised in full in profit or loss.
▪The Barclays Bank Group has deemed the amounts accumulated in the cash flow hedge reserve to be based on the alternative benchmark rate (on
which the hedge future cash flows are determined) when there is a change in basis for determining the contractual cash flows.
▪For hedges of groups of items (such as those forming part of a macro cash flow hedging strategy), the amendments provide relief for items within a
designated group of items that are amended for changes directly required by the reform.
▪In respect of whether a risk component of a hedged item is separately identifiable, the amendments provide temporary relief to entities to meet this
requirement when an alternative risk free rate (RFR) financial instrument is designated as a risk component. These amendments allow the Barclays
Bank Group upon designation of the hedge to assume that the separately identifiable requirement is met if the Barclays Bank Group reasonably
expects the RFR risk will become separately identifiable within the next 24 months. The Barclays Bank Group applies this relief to each RFR on a rate-
by-rate basis and starts when the Barclays Bank Group first designates the RFR as a non-contractually specified risk component.
Fair value hedge accounting
Changes in fair value of derivatives that qualify and are designated as fair value hedges are recorded in the income statement, together with changes in
the fair value of the hedged asset or liability that are attributable to the hedged risk. The fair value changes adjust the carrying value of the hedged asset
or liability held at amortised cost.
If hedge relationships no longer meet the criteria for hedge accounting, hedge accounting is discontinued. For fair value hedges of interest rate risk, the
fair value adjustment to the hedged item is amortised to the income statement over the period to maturity of the previously designated hedge
relationship using the effective interest method. If the hedged item is sold or repaid, the unamortised fair value adjustment is recognised immediately in
the income statement. For items classified as fair value through other comprehensive income, the hedge accounting adjustment is included in other
comprehensive income.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 200

C ash flow hedge accou nting
For qualifying cash flow hedges, the fair value gain or loss associated with the effective portion of the cash flow hedge is recognised initially in other
comprehensive income, and then recycled to the income statement in the periods when the hedged item will affect profit or loss. Any ineffective portion
of the gain or loss on the hedging instrument is recognised in the income statement immediately.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing
in equity at that time remains in equity and is recognised when the hedged item is ultimately recognised in the income statement. When a forecast
transaction is no longer expected to occur, the cumulative gain or loss that was recognised in equity is immediately transferred to the income
statement.
Hedges of net investments
The Barclays Bank Group’s net investments in foreign operations, including monetary items accounted for as part of the net investment, are hedged for
foreign currency risks using both derivatives and foreign currency borrowings. Hedges of net investments are accounted for similarly to cash flow
hedges; the effective portion of the gain or loss on the hedging instrument is being recognised directly in other comprehensive income and the
ineffective portion being recognised immediately in the income statement. The cumulative gain or loss recognised in other comprehensive income is
recognised in the income statement on the disposal or partial disposal of the foreign operation, or other reductions in the Barclays Bank Group’s
investment in the operation.

Barclays Bank Group | 2022 | 2021
| Notional contract amount | Fair value | Notional contract amount | Fair value
| Assets | Liabilities | Assets | Liabilities
| £m | £m | £m | £m | £m | £m
Total derivative assets/(liabilities) held for trading | 52,164,242 | 302,665 | (288,398) | 47,286,623 | 262,046 | (255,471)
Total derivative assets/(liabilities) held for risk management | 178,628 | 311 | (808) | 126,292 | 245 | (1,052)
Derivative assets/(liabilities) | 52,342,870 | 302,976 | (289,206) | 47,412,915 | 262,291 | (256,523)

Barclays Bank PLC | 2022 | 2021
| Notional contract amount | Fair value | Notional contract amount | Fair value
| Assets | Liabilities | Assets | Liabilities
| £m | £m | £m | £m | £m | £m
Total derivative assets/(liabilities) held for trading | 42,452,511 | 258,254 | (249,760) | 37,699,677 | 234,195 | (226,920)
Total derivative assets/(liabilities) held for risk management | 177,532 | 454 | (807) | 125,747 | 214 | (1,071)
Derivative assets/(liabilities) | 42,630,043 | 258,708 | (250,567) | 37,825,424 | 234,409 | (227,991)

Further information on netting arrangements of derivative financial instruments can be found within Note 17.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 201

The fair values and notional amounts of derivatives held for trading are set out in the following table:

Derivatives held for trading and risk management | 2022 | 2021
Barclays Bank Group | Notional contract amount | Fair value | Notional contract amount | Fair value
| Assets | Liabilities | Assets | Liabilities
| £m | £m | £m | £m | £m | £m
Derivatives held for trading |  |  |  |  |  |
Foreign exchange derivatives |  |  |  |  |  |
OTC derivatives | 5,773,814 | 108,865 | (103,040) | 5,700,055 | 76,055 | (74,014)
Derivatives cleared by central counterparty | 113,455 | 440 | (473) | 99,664 | 171 | (208)
Exchange traded derivatives | 19,426 | 15 | (6) | 20,084 | 10 | (3)
Foreign exchange derivatives | 5,906,695 | 109,320 | (103,519) | 5,819,803 | 76,236 | (74,225)
Interest rate derivatives |  |  |  |  |  |
OTC derivatives | 14,938,526 | 130,917 | (117,016) | 14,229,139 | 124,187 | (113,098)
Derivatives cleared by central counterparty | 21,390,094 | 2,317 | (2,340) | 18,865,670 | 1,055 | (762)
Exchange traded derivatives | 5,654,126 | 2,257 | (2,167) | 5,200,838 | 905 | (907)
Interest rate derivatives | 41,982,746 | 135,491 | (121,523) | 38,295,647 | 126,147 | (114,767)
Credit derivatives |  |  |  |  |  |
OTC derivatives | 619,843 | 4,262 | (4,731) | 606,504 | 4,007 | (4,752)
Derivatives cleared by central counterparty | 1,107,377 | 1,161 | (1,321) | 665,600 | 1,675 | (1,809)
Credit derivatives | 1,727,220 | 5,423 | (6,052) | 1,272,104 | 5,682 | (6,561)
Equity and stock index derivatives |  |  |  |  |  |
OTC derivatives | 410,002 | 12,670 | (16,715) | 278,370 | 18,793 | (24,440)
Exchange traded derivatives | 1,924,613 | 35,986 | (36,774) | 1,469,078 | 32,901 | (33,174)
Equity and stock index derivatives | 2,334,615 | 48,656 | (53,489) | 1,747,448 | 51,694 | (57,614)
Commodity derivatives |  |  |  |  |  |
OTC derivatives | 4,411 | 14 | (51) | 4,670 | 56 | (107)
Exchange traded derivatives | 208,555 | 3,761 | (3,764) | 146,951 | 2,231 | (2,197)
Commodity derivatives | 212,966 | 3,775 | (3,815) | 151,621 | 2,287 | (2,304)
Derivative assets/(liabilities) held for trading | 52,164,242 | 302,665 | (288,398) | 47,286,623 | 262,046 | (255,471)
Total OTC derivatives | 21,746,596 | 256,728 | (241,553) | 20,818,738 | 223,098 | (216,411)
Total derivatives cleared by central counterparty | 22,610,926 | 3,918 | (4,134) | 19,630,934 | 2,901 | (2,779)
Total exchange traded derivatives | 7,806,720 | 42,019 | (42,711) | 6,836,951 | 36,047 | (36,281)
Derivative assets/(liabilities) held for trading | 52,164,242 | 302,665 | (288,398) | 47,286,623 | 262,046 | (255,471)
Derivatives held for risk management |  |  |  |  |  |
Derivatives designated as cash flow hedges |  |  |  |  |  |
Currency Swaps | 2,000 | 175 | (12) | 1,000 | 155 | —
Interest rate swaps | 266 | 12 | — | 465 | — | (3)
Interest rate derivatives cleared by central counterparty | 92,366 | — | — | 63,584 | — | —
Derivatives designated as cash flow hedges | 94,632 | 187 | (12) | 65,049 | 155 | (3)
Derivatives designated as fair value hedges |  |  |  |  |  |
Interest rate swaps | 4,561 | 27 | (776) | 5,856 | 53 | (1,045)
Forward foreign exchange | — | — | — | — | — | —
Interest rate derivatives cleared by central counterparty | 75,547 | — | — | 52,964 | — | —
Derivatives designated as fair value hedges | 80,108 | 27 | (776) | 58,820 | 53 | (1,045)
Derivatives designated as hedges of net investments |  |  |  |  |  |
Forward foreign exchange | 3,888 | 97 | (20) | 2,423 | 37 | (4)
Derivatives designated as hedges of net investments | 3,888 | 97 | (20) | 2,423 | 37 | (4)
Derivative assets/(liabilities) held for risk management | 178,628 | 311 | (808) | 126,292 | 245 | (1,052)
Total OTC derivatives | 10,715 | 311 | (808) | 9,744 | 245 | (1,052)
Total derivatives cleared by central counterparty | 167,913 | — | — | 116,548 | — | —
Derivative assets/(liabilities) held for risk management | 178,628 | 311 | (808) | 126,292 | 245 | (1,052)

Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 202

Derivatives held for trading and risk management | 2022 | 2021
Barclays Bank PLC | Notional contract amount | Fair value | Notional contract amount | Fair value
| Assets | Liabilities | Assets | Liabilities
| £m | £m | £m | £m | £m | £m
Derivatives held for trading |  |  |  |  |  |
Foreign exchange derivatives |  |  |  |  |  |
OTC derivatives | 5,437,740 | 101,837 | (97,212) | 5,352,739 | 71,484 | (69,675)
Derivatives cleared by central counterparty | 113,455 | 440 | (473) | 99,664 | 171 | (208)
Exchange traded derivatives | 5,366 | — | — | 11,745 | — | —
Foreign exchange derivatives | 5,556,561 | 102,277 | (97,685) | 5,464,148 | 71,655 | (69,883)
Interest rate derivatives |  |  |  |  |  |
OTC derivatives | 9,769,803 | 102,226 | (95,119) | 9,363,973 | 104,588 | (94,109)
Derivatives cleared by central counterparty | 15,000,610 | 1,442 | (1,561) | 13,538,082 | 809 | (539)
Exchange traded derivatives | 3,296,390 | 198 | (159) | 2,607,494 | 154 | (66)
Interest rate derivatives | 28,066,803 | 103,866 | (96,839) | 25,509,549 | 105,551 | (94,714)
Credit derivatives |  |  |  |  |  |
OTC derivatives | 420,996 | 4,060 | (4,439) | 433,015 | 3,776 | (4,245)
Derivatives cleared by central counterparty | 905,621 | 1,144 | (1,301) | 504,601 | 1,646 | (1,763)
Credit derivatives | 1,326,617 | 5,204 | (5,740) | 937,616 | 5,422 | (6,008)
Equity and stock index derivatives |  |  |  |  |  |
OTC derivatives | 383,041 | 12,089 | (15,933) | 254,932 | 18,355 | (23,423)
Exchange traded derivatives | 389,046 | 3,359 | (4,078) | 371,161 | 3,459 | (3,789)
Equity and stock index derivatives | 772,087 | 15,448 | (20,011) | 626,093 | 21,814 | (27,212)
Commodity derivatives |  |  |  |  |  |
OTC derivatives | 3,989 | 12 | (50) | 4,120 | 55 | (103)
Exchange traded derivatives | 25,435 | 446 | (665) | 20,436 | 419 | (311)
Commodity derivatives | 29,424 | 458 | (715) | 24,556 | 474 | (414)
Derivatives with subsidiaries | 6,701,019 | 31,001 | (28,770) | 5,137,715 | 29,279 | (28,689)
Derivative assets/(liabilities) held for trading | 42,452,511 | 258,254 | (249,760) | 37,699,677 | 234,195 | (226,920)
Total OTC derivatives | 16,015,569 | 220,224 | (212,753) | 15,408,779 | 198,258 | (191,555)
Total derivatives cleared by central counterparty | 16,019,686 | 3,026 | (3,335) | 14,142,347 | 2,626 | (2,510)
Total exchange traded derivatives | 3,716,237 | 4,003 | (4,902) | 3,010,836 | 4,032 | (4,166)
Derivatives with subsidiaries | 6,701,019 | 31,001 | (28,770) | 5,137,715 | 29,279 | (28,689)
Derivative assets/(liabilities) held for trading | 42,452,511 | 258,254 | (249,760) | 37,699,677 | 234,195 | (226,920)
Derivatives held for risk management |  |  |  |  |  |
Derivatives designated as cash flow hedges |  |  |  |  |  |
Currency Swaps | 2,000 | 175 | (12) | 1,000 | 155 | —
Interest rate swaps | 229 | 4 | (4) | 359 | — | (5)
Interest rate derivatives cleared by central counterparty | 91,457 | — | — | 62,482 | — | —
Derivatives designated as cash flow hedges | 93,686 | 179 | (16) | 63,841 | 155 | (5)
Derivatives designated as fair value hedges |  |  |  |  |  |
Interest rate swaps | 4,479 | 25 | (776) | 5,758 | 36 | (1,045)
Forward foreign exchange | 2,019 | 145 | (8) | 2,312 | — | (20)
Interest rate derivatives cleared by central counterparty | 74,548 | — | — | 52,530 | — | —
Derivatives designated as fair value hedges | 81,046 | 170 | (784) | 60,600 | 36 | (1,065)
Derivatives designated as hedges of net investments |  |  |  |  |  |
Forward foreign exchange | 2,800 | 105 | (7) | 1,306 | 23 | (1)
Derivatives designated as hedges of net investments | 2,800 | 105 | (7) | 1,306 | 23 | (1)
Derivative assets/(liabilities) held for risk management | 177,532 | 454 | (807) | 125,747 | 214 | (1,071)
Total OTC derivatives | 11,527 | 454 | (807) | 10,735 | 214 | (1,071)
Total derivatives cleared by central counterparty | 166,005 | — | — | 115,012 | — | —
Derivative assets/(liabilities) held for risk management | 177,532 | 454 | (807) | 125,747 | 214 | (1,071)

Hedge accounting
Hedge accounting is applied predominantly for the following risks:
▪Interest rate risk – arises due to a mismatch between fixed interest rates and floating interest rates.
▪Currency risk – arises due to assets or liabilities being denominated in different currencies than the functional currency of the relevant entity. At a
consolidated level, currency risk also arises when the functional currency of subsidiaries are different from the parent.
▪Contractually linked inflation risk – arises from financial instruments within contractually specified inflation risk. The Barclays Bank Group does not
hedge inflation risk that arises from other activities.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 203

In order to hedge these risks, the Barclays Bank Group uses the following hedging instruments:
▪Interest rate derivatives to swap interest rate exposure into either fixed or variable rates.
▪Currency derivatives to swap foreign currency exposures into the entity’s functional currency, and net investment exposure to local currency.
▪Inflation derivatives to swap inflation exposure into either fixed or variable interest rates.
In some cases, certain items which are economically hedged may be ineligible hedged items for the purposes of IAS 39, such as core deposits and
equity. In these instances, a proxy hedging solution can be utilised whereby portfolios of floating rate assets are designated as eligible hedged items in
cash flow hedges.
In some hedging relationships, the Barclays Bank Group designates risk components of hedged items as follows:
▪Benchmark interest rate risk as a component of interest rate risk, such as the LIBOR or Risk Free Rate (RFR) component.
▪Inflation risk as a contractually specified component of a debt instrument.
▪Spot exchange rate risk for foreign currency financial assets or financial liabilities.
▪Components of cash flows of hedged items, for example certain interest payments for part of the life of an instrument.
Using the benchmark interest rate risk results in other risks, such as credit risk and liquidity risk, being excluded from the hedge accounting relationship.
Following market-wide interest rate benchmark reform, sensitivity to risk-free rates is considered to be the predominant interest rate risk and therefore
the hedged items (which often reference risk-free or similar 'overnight' rates) change in fair value on a proportionate basis with reference to this risk.
In respect of many of the Barclays Bank Group’s hedge accounting relationships, the hedged item and hedging instrument change frequently due to the
dynamic nature of the risk management and hedge accounting strategy. The Barclays Bank Group applies hedge accounting to dynamic scenarios,
predominantly in relation to interest rate risk, with a combination of hedged items in order for its financial statements to reflect as closely as possible the
economic risk management undertaken. In some cases, if the hedge accounting objective changes, the relevant hedge accounting relationship is de-
designated and is replaced with a different hedge accounting relationship.
Changes in the GBP value of net investments due to foreign currency movements are captured in the currency translation reserve, resulting in a
movement in CET 1 capital. The Barclays Bank Group mitigates this by matching the CET 1 capital movements to the revaluation of the foreign currency
RWA exposures. Net investment hedges are designated where necessary to reduce the exposure to movement in a particular exchange rate to within
limits mandated by Risk. As far as possible, existing external currency liabilities are designated as the hedging instruments.
The hedging instruments share the same risk exposures as the hedged items. Hedge effectiveness is determined with reference to quantitative tests,
predominantly regression testing, but to the extent hedging instruments are exposed to different risks than the hedged items, this could result in hedge
ineffectiveness or hedge accounting failures.
Sources of ineffectiveness include the following:
▪Mismatches between the contractual terms of the hedged item and hedging instrument, including basis differences.
▪Changes in credit risk of the hedging instruments.
▪If a hedging relationship becomes over-hedged, for example in hedges of net investments if the net asset value designated at the start of the period
falls below the amount of the hedging instrument.
▪Cash flow hedges using external swaps with non-zero fair values.
▪The effects of the reforms to IBOR, because these might take effect at a different time and have a different impact on hedged items and hedging
instruments.
The Barclays Bank Group's risk exposure continues, in part, to be affected by interest rate benchmark reform. In most cases, hedged items and hedging
instruments are expected to transition to relevant risk-free rates at the end of their current cash flow period. USD LIBOR, Canadian Dollar Offered Rate
(CDOR) and Singapore Swap Offered Rate (SOR) linked hedge accounting relationships are still exposed to uncertainty regarding the precise timing and
effects of benchmark reform. USD LIBOR and SOR benchmarks will cease to be published after 30 June 2023, CDOR - after 28 June 2024, but certain
hedged items and hedging instruments continue to contractually reference these benchmarks beyond the cessation date.
The following table summarises the significant hedge accounting exposures impacted by the IBOR reform as at 31 December 2022:

Barclays Bank Group |  | Nominal amount of hedged items directly impacted by IBOR reform | Nominal amount of hedging instruments directly impacted by IBOR reform
Current benchmark rate | Expected convergence to RFR | £m | £m
USD LIBOR | Secured Overnight Financing Rate (SOFR) | 19,286 | 20,104
Canadian Dollar Offered Rate (CDOR) | Overnight Repo Rate Average (CORRA) | 980 | 980
Singapore Swap Offered Rate (SOR) | Singapore Overnight Rate Average (SORA) | 124 | 124
Total IBOR Notionals |  | 20,390 | 21,208

Barclays Bank PLC |  | Nominal amount of hedged items directly impacted by IBOR reform | Nominal amount of hedging instruments directly impacted by IBOR reform
Current benchmark rate | Expected convergence to RFR | £m | £m
USD LIBOR | Secured Overnight Financing Rate (SOFR) | 19,375 | 20,484
Canadian Dollar Offered Rate (CDOR) | Overnight Repo Rate Average (CORRA) | 980 | 980
Singapore Swap Offered Rate (SOR) | Singapore Overnight Rate Average (SORA) | 124 | 124
Total IBOR Notionals |  | 20,479 | 21,588

The hedged items and hedging instruments are expected to be transitioned to SOFR and SORA by 30 June 2023 and to C ORRA b y 28 June 2024.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 204

Hedged items in fair value hedges
Barclays Bank Group |  | Accumulated fair value adjustment included in carrying amount |  |
| Carrying amount | Total | Of which: Accumulated fair value adjustment on items no longer in a hedge relationship | Change in fair value used as a basis to determine ineffectiveness | Hedge ineffectiveness recognised in the income statement a
Hedged item statement of financial position classification and risk category | £m | £m | £m | £m | £m
2022 |  |  |  |  |
Assets |  |  |  |  |
Loans and advances at amortised cost |  |  |  |  |
- Interest rate risk | 1,950 | (135) | 3 | (325) | (3)
- Inflation risk | 445 | 243 | — | (111) | 2
Debt securities classified as amortised cost |  |  |  |  |
- Interest rate risk | 159 | (19) | (11) | (133) | (20)
- Inflation risk | 3,854 | (1,287) | — | (1,658) | (18)
Financial assets at fair value through other comprehensive income b |  |  |  |  |
- Interest rate risk | 25,044 | (3,132) | (228) | (3,833) | 145
- Inflation risk | 6,019 | (181) | 17 | (690) | (26)
Total Assets | 37,471 | (4,511) | (219) | (6,750) | 80
Liabilities |  |  |  |  |
Debt securities in issue |  |  |  |  |
- Interest rate risk | (34,260) | 2,746 | (26) | 3,577 | 22
Total Liabilities | (34,260) | 2,746 | (26) | 3,577 | 22
Total Hedged Items | 3,211 | (1,765) | (245) | (3,173) | 102
2021 |  |  |  |  |
Assets |  |  |  |  |
Loans and advances at amortised cost |  |  |  |  |
- Interest rate risk | 1,257 | 24 | 6 | (77) | (1)
- Inflation risk | 556 | 354 | — | 9 | —
Debt securities classified as amortised cost |  |  |  |  |
- Interest rate risk | 1,378 | (39) | — | (75) | (18)
- Inflation risk | 4,087 | 400 | — | (16) | (1)
Financial assets at fair value through other comprehensive income b |  |  |  |  |
- Interest rate risk | 22,895 | (293) | 28 | (1,122) | 35
- Inflation risk | 6,271 | 386 | (32) | 81 | 10
Total Assets | 36,444 | 832 | 2 | (1,200) | 25
Liabilities |  |  |  |  |
Debt securities in issue |  |  |  |  |
- Interest rate risk | (26,691) | (622) | (320) | 769 | 6
Total Liabilities | (26,691) | (622) | (320) | 769 | 6
Total Hedged Items | 9,753 | 210 | (318) | (431) | 31

Notes
a Hedge ineffectiveness is recognised in net interest income.
b For items classified as fair value through other comprehensive income, the hedge accounting adjustment is not included in the carrying amount, but rather adjusts other
comprehensive income.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 205

Hedged items in fair value hedges
Barclays Bank PLC |  | Accumulated fair value adjustment included in carrying amount |  |
| Carrying amount | Total | Of which: Accumulated fair value adjustment on items no longer in a hedge relationship | Change in fair value used as a basis to determine ineffectiveness | Hedge ineffectiveness recognised in the income statement a
Hedged item statement of financial position classification and risk category | £m | £m | £m | £m | £m
2022 |  |  |  |  |
Assets |  |  |  |  |
Loans and advances at amortised cost |  |  |  |  |
- Interest rate risk | 1,946 | (139) | 1 | (325) | (1)
- Inflation risk | 445 | 243 | — | (111) | 2
Debt securities classified as amortised cost |  |  |  |  |
- Interest rate risk | 159 | (19) | (11) | (133) | (20)
- Inflation risk | 3,854 | (1,287) | — | (1,658) | (18)
Financial assets at fair value through other comprehensive income b |  |  |  |  |
- Interest rate risk | 25,044 | (3,134) | (229) | (3,833) | 145
- Inflation risk | 6,019 | (182) | 17 | (690) | (26)
Investments in subsidiaries |  |  |  |  |
- Foreign exchange risk | 1,581 | — | — | 236 | —
- Other risk | 4,457 | 187 | 85 | 273 | —
Total Assets | 43,505 | (4,331) | (137) | (6,241) | 82
Liabilities |  |  |  |  |
Debt securities in issue |  |  |  |  |
- Interest rate risk | (33,154) | 2,734 | (20) | 3,462 | 21
Total Liabilities | (33,154) | 2,734 | (20) | 3,462 | 21
Total Hedged items | 10,351 | (1,597) | (157) | (2,779) | 103
2021 |  |  |  |  |
Assets |  |  |  |  |
Loans and advances at amortised cost |  |  |  |  |
- Interest rate risk | 1,257 | 24 | 6 | (77) | (1)
- Foreign exchange risk | 556 | 354 | — | 9 | —
- Inflation risk |  |  |  |  |
Debt securities classified as amortised cost |  |  |  |  |
- Interest rate risk | 1,378 | (39) | — | (75) | (18)
- Inflation risk | 4,087 | 400 | — | (16) | (1)
Financial assets at fair value through other comprehensive income b |  |  |  |  |
- Interest rate risk | 22,895 | (299) | 25 | (1,122) | 31
- Inflation risk | 6,271 | 386 | (32) | 81 | 10
Investments in subsidiaries |  |  |  |  |
- Foreign exchange risk | 1,607 | — | — | 35 | —
- Other risk | 1,455 | (1) | 1 | 19 | —
Total Assets | 39,506 | 825 | — | (1,146) | 21
Liabilities |  |  |  |  |
Debt securities in issue |  |  |  |  |
- Interest rate risk | (26,138) | (523) | (318) | 722 | 10
Total Liabilities | (26,138) | (523) | (318) | 722 | 10
Total Hedged items | 13,368 | 302 | (318) | (424) | 31

Notes
a Hedge ineffectiveness is recognised in net interest income.
b For items classified as fair value through other comprehensive income, the hedge accounting adjustment is not included in the carrying amount, but rather adjusts other
com prehensive in come.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 206

Amount, timing and uncertainty of future cash flows
The following table shows the fair value hedging instruments which are carr ied on the balance shee t:

Barclays Bank Group |  | Carrying value | Nominal amount | Change in fair value used as a basis to determine ineffectiveness | Nominal amount directly impacted by IBOR reform
|  | Derivative assets | Derivative liabilities | Loan liabilities
Hedge type | Risk category | £m | £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |  |  |
Fair value | Interest rate risk | — | — | — | 67,613 | 858 | 11,987
| Inflation risk | 27 | (776) | — | 12,495 | 2,417 | 2,493
| Total | 27 | (776) | — | 80,108 | 3,275 | 14,480
As at 31 December 2021 |  |  |  |  |  |  |
Fair value | Interest rate risk | 53 | — | — | 51,219 | 527 | 8,855
| Inflation risk | — | (1,045) | — | 7,601 | (65) | 1,624
| Total | 53 | (1,045) | — | 58,820 | 462 | 10,479

Barclays Bank PLC |  | Carrying value | Nominal amount | Change in fair value used as a basis to determine ineffectiveness | Nominal amount directly impacted by IBOR reform
|  | Derivative assets | Derivative liabilities | Loan liabilities
Hedge type | Risk category | £m | £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |  |  |
Fair value | Interest rate risk | 72 | — | — | 66,532 | 974 | 11,987
| Foreign exchange risk | 72 | (8) | (1,342) | 3,361 | (509) | —
| Inflation risk | 26 | (776) | — | 12,495 | 2,417 | 2,493
| Total | 170 | (784) | (1,342) | 82,388 | 2,882 | 14,480
As at 31 December 2021 |  |  |  |  |  |  |
Fair value | Interest rate risk | 36 | — | — | 50,669 | 574 | 8,855
| Foreign exchange risk | — | (20) | (1,199) | 3,529 | (54) | —
| Inflation risk | — | (1,045) | — | 7,601 | (65) | 1,624
| Total | 36 | (1,065) | (1,199) | 61,799 | 455 | 10,479

The following table profiles the expected notional values of current hedging instruments for fair value hedging in future years:

| 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 and later
As at 31 December 2022 | £m | £m | £m | £m | £m | £m | £m
Barclays Bank Group |  |  |  |  |  |  |
Fair value hedges of: |  |  |  |  |  |  |
Interest rate risk (outstanding notional amount) | 67,613 | 63,902 | 54,595 | 47,000 | 40,170 | 28,497 | 26,131
Inflation risk (outstanding notional amount) | 12,495 | 12,064 | 9,873 | 8,824 | 7,477 | 7,449 | 6,779

For Barclays Bank Group, there are 712 (2021: 618) interest rate risk fair value hedges with an average fixed rate of 1.77% (2021: 1.1%) across the
relationships and 49 (2021: 60) inflation risk fair value hedges with an average rate of 0.55% (2021: 0.59%) across the relationships.

| 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 and later
As at 31 December 2022 | £m | £m | £m | £m | £m | £m | £m
Barclays Bank PLC |  |  |  |  |  |  |
Fair value hedges of |  |  |  |  |  |  |
Interest rate risk (outstanding notional amount) | 66,532 | 62,826 | 53,523 | 46,667 | 39,958 | 28,255 | 25,897
Inflation risk (outstanding notional amount) | 12,495 | 12,064 | 9,873 | 8,824 | 7,477 | 7,449 | 6,779
Foreign exchange risk (outstanding notional amount) | 3,361 | 1,348 | 1,345 | 1,342 | 1,342 | — | —

Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 207

Hedged items in cash flow hedges and hedges of net investments in foreign operations
Barclays Bank Group |  |  |  |  |  |  |
| Change in value of hedged item used as the basis for recognising ineffectiveness | Balance in cash flow hedging reserve for continuing hedges | Balance in currency translation reserve for continuing hedges | Balances remaining in cash flow hedging reserve for which hedge accounting is no longer applied | Balances remaining in currency translation reserve for which hedge accounting is no longer applied | Hedging gains or losses recognised in other comprehensive income | Hedge ineffectiveness recognised in the income statement a
Description of hedge relationship and hedged risk | £m | £m | £m | £m | £m | £m | £m
2022 |  |  |  |  |  |  |
Cash flow hedge of: |  |  |  |  |  |  |
Interest rate risk |  |  |  |  |  |  |
Loans and advances at amortised cost | 7,182 | 4,625 | — | 2,900 | — | 7,182 | (197)
Foreign exchange risk |  |  |  |  |  |  |
Loans and advances at amortised cost | 3 | (13) | — | — | — | 3 | 2
Inflation risk |  |  |  |  |  |  |
Debt securities classified at amortised cost | 362 | 142 | — | 16 | — | 98 | 33
Total cash flow hedges | 7,547 | 4,754 | — | 2,916 | — | 7,283 | (162)
Hedge of net investment in foreign operations |  |  |  |  |  |  |
USD foreign operations | 922 | — | 1,767 | — | — | 922 | —
EUR foreign operations | 170 | — | 127 | — | — | 170 | —
Other foreign operations | 38 | — | 180 | — | 88 | 38 | —
Total foreign operations | 1,130 | — | 2,074 | — | 88 | 1,130 | —
2021 |  |  |  |  |  |  |
Cash flow hedge of: |  |  |  |  |  |  |
Interest rate risk |  |  |  |  |  |  |
Loans and advances at amortised cost | 2,042 | 935 | — | (192) | — | 2,042 | (211)
Foreign exchange risk |  |  |  |  |  |  |
Loans and advances at amortised cost | (88) | (16) | — | — | — | (88) | 1
Inflation risk |  |  |  |  |  |  |
Debt securities classified at amortised cost | 252 | 204 | — | (12) | — | 252 | (22)
Total cash flow hedges | 2,206 | 1,123 | — | (204) | — | 2,206 | (232)
Hedge of net investment in foreign operations |  |  |  |  |  |  |
USD foreign operations | 143 | — | 1,184 | — | — | 143 | —
EUR foreign operations | (49) | — | (39) | — | — | (49) | —
Other foreign operations | (3) | — | 44 | — | 186 | (3) | —
Total foreign operations | 91 | — | 1,189 | — | 186 | 91 | —

Note
a Hedge ineffectiveness is recognised in net interest income
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 208

Hedged items in cash flow hedges and hedges of net investments in foreign operations
Barclays Bank PLC |  |  |  |  |  |  |
| Change in value of hedged item used as the basis for recognising ineffectiveness | Balance in cash flow hedging reserve for continuing hedges | Balance in currency translation reserve for continuing hedges | Balances remaining in cash flow hedging reserve for which hedge accounting is no longer applied | Balances remaining in currency translation reserve for which hedge accounting is no longer applied | Hedging gains or losses recognised in other comprehensive income | Hedge ineffectivenes s recognised in the income statement a
Description of hedge relationship and hedged risk | £m | £m | £m | £m | £m | £m | £m
2022 |  |  |  |  |  |  |
Cash flow hedge of: |  |  |  |  |  |  |
Interest rate risk |  |  |  |  |  |  |
Loans and advances at amortised cost | 6,632 | 4,480 | — | 2,570 | — | 6,632 | (146)
Foreign exchange risk |  |  |  |  |  |  |
Loans and advances at amortised cost | 3 | (13) | — | — | — | 3 | 2
Inflation risk |  |  |  |  |  |  |
Debt securities classified at amortised cost | 362 | 142 | — | 16 | — | 98 | 33
Total cash flow hedges | 6,997 | 4,609 | — | 2,586 | — | 6,733 | (111)
Hedge of net investment in foreign operations |  |  |  |  |  |  |
USD foreign operations | 328 | — | 1,377 | — | — | 328 | —
EUR foreign operations | 5 | — | (3) | — | 2 | 5 | —
Other foreign operations | 24 | — | 24 | — | — | 24 | —
Total foreign operations | 357 | — | 1,398 | — | 2 | 357 | —
2021 |  |  |  |  |  |  |
Cash flow hedge of: |  |  |  |  |  |  |
Interest rate risk |  |  |  |  |  |  |
Loans and advances at amortised cost | 2,051 | 964 | — | (209) | — | 2,051 | (168)
Foreign exchange risk |  |  |  |  |  |  |
Loans and advances at amortised cost | (88) | (16) | — | — | — | (88) | 1
Inflation risk |  |  |  |  |  |  |
Debt securities classified at amortised cost | 252 | 204 | — | (12) |  | 252 | (23)
Total cash flow hedges | 2,215 | 1,152 | — | (221) | — | 2,215 | (190)
Hedge of net investment in foreign operations |  |  |  |  |  |  |
USD foreign operations | 34 | — | 1,050 | — | — | 34 | —
EUR foreign operations | 2 | — | (2) | — | 2 | 2 | —
Other foreign operations | — | — | — | — | — | — | —
Total foreign operations | 36 | — | 1,048 | — | 2 | 36 | —

Note
a Hedge ineffectiveness is recognised in net interest income.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 209

The following table shows the cash flow and net investment hedging instruments which are carried on the bala nce sheet:

Barclays Bank Group |  | Carrying value | Nominal amount | Change in fair value used as a basis to determine ineffectiveness | Nominal amount directly impacted by IBOR reform
|  | Derivative assets | Derivative liabilities | Loan liabilities
Hedge type | Risk category | £m | £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |  |  |
Cash flow | Interest rate risk | 12 | — | — | 89,996 | (7,379) | 6,728
| Foreign exchange risk | 175 | (12) | — | 2,000 | (1) | —
| Inflation risk | — | — | — | 2,636 | (329) | —
| Total | 187 | (12) | — | 94,632 | (7,709) | 6,728
Net investment | Foreign exchange risk | 97 | (20) | (8,368) | 12,256 | (1,130) | —
As at 31 December 2021 |  |  |  |  |  |  |
Cash flow | Interest rate risk | — | — | — | 59,957 | (2,253) | 9,896
| Foreign exchange risk | 155 | — | — | 1,000 | 89 | —
| Inflation risk | — | (3) | — | 4,092 | (274) | —
| Total | 155 | (3) | — | 65,049 | (2,438) | 9,896
Net investment | Foreign exchange risk | 37 | (4) | (6,933) | 9,356 | (91) | —

Barclays Bank PLC |  | Carrying value | Nominal amount | Change in fair value used as a basis to determine ineffectiveness | Nominal amount directly impacted by IBOR reform
|  | Derivative assets | Derivative liabilities | Loan liabilities
Hedge type | Risk category | £m | £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |  |  |
Cash flow | Interest rate risk | 4 | (4) | — | 88,990 | (6,778) | 7,108
| Foreign exchange risk | 175 | (12) | — | 2,000 | (1) | —
| Inflation risk | — | — | — | 2,696 | (329) | —
| Total | 179 | (16) | — | 93,686 | (7,108) | 7,108
Net investment | Foreign exchange risk | 105 | (7) | (52) | 2,852 | (357) | —
As at 31 December 2021 |  |  |  |  |  |  |
Cash flow | Interest rate risk | — | (2) | — | 58,689 | (2,219) | 7,567
| Foreign exchange risk | 155 | — | — | 1,000 | 89 | —
| Inflation risk | — | (3) | — | 4,152 | (275) | —
| Total | 155 | (5) | — | 63,841 | (2,405) | 7,567
Net investment | Foreign exchange risk | 23 | (1) | (1,335) | 2,641 | (36) | —

For Barclays Bank Group, ther e are two (2021: one) foreign exchange risk cash flow hedges with an a verage foreign exchange rate of JPY 147.80: GBP 1
(2021: JPY 133.03: GBP 1) and for Barclays Bank PLC, there are two (2021: one) foreign exchange risk cash flow hedges with an average foreign
exchange rate of JPY 147.80: GBP 1 (2021: JPY 133.03: GBP 1).
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 210

The effect on the income statement and other comprehensive income of recycling amounts in respect of cash flow hedges and net investment hedges
of foreign operations is set out in the following table:

Barclays Bank Group | 2022 | 2021
| Amount recycled from other comprehensive income due to hedged item affecting income statement | Amount recycled from other comprehensive income due to sale of investment, or cash flows no longer expected to occur | Amount recycled from other comprehensive income due to hedged item affecting income statement | Amount recycled from other comprehensive income due to sale of investment, or cash flows no longer expected to occur
Description of hedge relationship and hedged risk | £m | £m | £m | £m
Cash flow hedge of interest rate risk |  |  |  |
Recycled to net interest income | (496) | (46) | 228 | 13
Cash flow hedge of foreign exchange risk |  |  |  |
Recycled to net interest income | (1) | — | 87 | —
Hedge of net investment in foreign operations |  |  |  |
Recycled to other income | — | (58) | — | (28)

Barclays Bank PLC | 2022 | 2021
| Amount recycled from other comprehensive income due to hedged item affecting income statement | Amount recycled from other comprehensive income due to sale of investment, or cash flows no longer expected to occur | Amount recycled from other comprehensive income due to hedged item affecting income statement | Amount recycled from other comprehensive income due to sale of investment, or cash flows no longer expected to occur
Description of hedge relationship and hedged risk | £m | £m | £m | £m
Cash flow hedge of interest rate risk |  |  |  |
Recycled to net interest income | (406) | (61) | 235 | 11
Cash flow hedge of foreign exchange risk |  |  |  |
Recycled to net interest income | (1) | — | 87 | —
Hedge of net investment in foreign operations |  |  |  |
Recycled to other income | — | — | — | —

A detailed reconciliation of the movements of the cash flow hedging reserve and the currency translation reserve is as follows:

Barclays Bank Group | 2022 | 2021
| Cash flow hedging reserve | Currency translation reserve | Cash flow hedging reserve | Currency translation reserve
| £m | £m | £m | £m
Balance on 1 January | (618) | 2,581 | 1,181 | 2,736
Currency translation movements | (7) | 3,483 | (6) | (92)
Hedging losses for the year | (7,283) | (1,130) | (2,206) | (91)
Amounts reclassified in relation to cash flows affecting profit or loss | 543 | 58 | (327) | 28
Tax | 1,808 | — | 740 | —
Balance on 31 December | (5,557) | 4,992 | (618) | 2,581

Barclays Bank PLC | 2022 | 2021
| Cash flow hedging reserve | Currency translation reserve | Cash flow hedging reserve | Currency translation reserve
| £m | £m | £m | £m
Balance on 1 January | (624) | 268 | 1,191 | 140
Currency translation movements | 2 | 1,506 | (15) | 164
Hedging losses for the year | (6,733) | (357) | (2,215) | (36)
Amounts reclassified in relation to cash flows affecting profit or loss | 468 | — | (333) | —
Tax | 1,707 | — | 748 | —
Balance on 31 December | (5,180) | 1,417 | (624) | 268

Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 211

14 Financial assets at fair value through other comprehensive income

Accounting for financial assets at fair value through other comprehensive income (FVOCI) Financial assets that are debt instruments held in a business model that is achieved by both collecting contractual cash flows and selling and that contain contractual terms that give rise on specified dates to cash flows that are SPPI are measured at FVOCI. They are subsequently re-measured at fair value and changes therein (except for those relating to impairment, interest income and foreign currency exchange gains and losses) are recognised in other comprehensive income until the assets are sold. Interest (calculated using the effective interest method) is recognised in the income statement in net interest income (Note 3). Upon disposal, the cumulative gain or loss recognised in other comprehensive income is included in net investment income (Note 6). In determining whether the business model is achieved by both collecting contractual cash flows and selling financial assets, it is determined that both collecting contractual cash flows and selling financial assets are integral to achieving the objective of the business model. The Barclays Bank Group will consider past sales and expectations about future sales to establish if the business model is achieved. For equity securities that are not held for trading, the Barclays Bank Group may make an irrevocable election on initial recognition to present subsequent changes in the fair value of the instrument in other comprehensive income (except for dividend income which is recognised in profit or loss). Gains or losses on the de-recognition of these equity securities are not transferred to profit or loss. These assets are also not subject to the impairment requirements and therefore no amounts are recycled to the income statement. Where the Barclays Bank Group has not made the irrevocable election to present subsequent changes in the fair value of the instrument in other comprehensive income, equity securities are measured at fair value through profit or loss.

| Barclays Bank Group
| 2022 | 2021
| £m | £m
Debt securities and other eligible bills | 44,861 | 45,854
Equity securities | 1 | 1
Loans and advances | 222 | 53
Financial assets at fair value through other comprehensive income | 45,084 | 45,908

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
Debt securities and other eligible bills | 42,864 | 44,110
Loans and advances | 222 | 53
Financial assets at fair value through other comprehensive income | 43,086 | 44,163

15 Financial liabilities designated at fair value

Accounting for liabilities designated at fair value through profit and loss In accordance with IFRS 9, financial liabilities may be designated at fair value, with gains and losses taken to the income statement within net trading income (Note 5) and net investment income (Note 6). Movements in own credit are reported through other comprehensive income, unless the effects of changes in the liability's credit risk would create or enlarge an accounting mismatch in profit and loss. In these scenarios, all gains and losses on that liability (including the effects of changes in the credit risk of the liability) are presented in profit and loss. On derecognition of the financial liability no amounts relating to own credit risk are recycled to the income statement. The Barclays Bank Group has the ability to make the fair value designation when holding the instruments at fair value reduces an accounting mismatch (caused by an offsetting liability or asset being held at fair value), or is managed by the Barclays Bank Group on the basis of its fair value, or includes terms that have substantive derivative characteristics (Note 13). The details on how the fair value amounts are arrived at for financial liabilities designated at fair value are described in Note 16.

| Barclays Bank Group
| 2022 | 2021
| Fair value | Contractual amount due on maturity | Fair value | Contractual amount due on maturity
| £m | £m | £m | £m
Debt securities | 57,325 | 72,728 | 53,164 | 61,333
Deposits | 41,037 | 42,455 | 29,409 | 29,836
Repurchase agreements and other similar secured borrowing | 173,172 | 173,938 | 168,075 | 168,144
Subordinated debt a | 521 | 1,029 | 483 | 613
Financial liabilities designated at fair value | 272,055 | 290,150 | 251,131 | 259,926

Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 212

| Barclays Bank PLC
| 2022 | 2021
| Fair value | Contractual amount due on maturity | Fair value | Contractual amount due on maturity
| £m | £m | £m | £m
Debt securities | 50,522 | 65,256 | 52,362 | 60,335
Deposits | 26,157 | 26,928 | 20,722 | 20,836
Repurchase agreements and other similar secured borrowing | 223,651 | 225,331 | 217,495 | 217,547
Subordinated debt a | 521 | 1,029 | 483 | 613
Financial liabilities designated at fair value | 300,851 | 318,544 | 291,062 | 299,331

The cumulative own credit net gain recognised for Barclays Bank Group is £674m (2021: £960m) and for Barclays Bank PLC it is £689 m (2021: £837 m)
Note
a.Subordinated debt measured at fair value was previously disclosed in Note 26 Subordinated Liabilities. From 2021, it is disclosed within Financial Liabilities designated at
fair value to better reflect that it is accounted for at fair value.
16 Fair value of financial instruments
Accounting for financial assets and liabilities – fair values
Financial instruments that are held for trading are recognised at fair value through profit or loss. In addition, financial assets are held at fair value
through profit or loss if they do not contain contractual terms that give rise on specified dates to cash flows that are SPPI, or if the financial asset is not
held in a business model that is either (i) a business model to collect the contractual cash flows or (ii) a business model that is achieved by both
collecting contractual cash flows and selling. Subsequent changes in fair value for these instruments are recognised in the income statement in net
investment income, except if reporting it in trading income reduces an accounting mismatch.
All financial instruments are initially recognised at fair value on the date of initial recognition (including transaction costs, other than financial
instruments held at fair value through profit or loss) and depending on the subsequent classification of the financial asset or liability, may continue to be
held at fair value either through profit or loss or other comprehensive income. The fair value of a financial instrument is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Wherever possible, fair value is determined by reference to a quoted market price for that instrument. For many of the Barclays Bank Group’s financial
assets and liabilities, especially derivatives, quoted prices are not available and valuation models are used to estimate fair value. The models calculate the
expected cash flows under the terms of each specific contract and then discount these values back to a present value. These models use as their basis
independently sourced market inputs including, for example, interest rate yield curves, equities and commodities prices, option volatilities and currency
rates.
For financial liabilities measured at fair value, the carrying amount reflects the effect on fair value of changes in own credit spreads derived from
observable market data such as in primary issuance and redemption activity for structured notes.
On initial recognition, it is presumed that the transaction price is the fair value unless there is observable information available in an active market to the
contrary. The best evidence of an instrument’s fair value on initial recognition is typically the transaction price. However, if fair value can be evidenced
by comparison with other observable current market transactions in the same instrument, or is based on a valuation technique whose inputs include
only data from observable markets, then the instrument should be recognised at the fair value derived from such observable market data.
For valuations that have made use of unobservable inputs, the difference between the model valuation and the initial transaction price (Day One profit)
is recognised in profit or loss either: on a straight-line basis over the term of the transaction; or over the period until all model inputs will become
observable where appropriate; or released in full when previously unobservable inputs become observable.
Various factors influence the availability of observable inputs and these may vary from product to product and change over time. Factors include the
depth of activity in the relevant market, the type of product, whether the product is new and not widely traded in the marketplace, the maturity of
market modelling and the nature of the transaction (bespoke or generic). To the extent that valuation is based on models or inputs that are not
observable in the market, the determination of fair value can be more subjective, dependent on the significance of the unobservable input to the overall
valuation. Unobservable inputs are determined based on the best information available, for example by reference to similar assets, similar maturities or
other analytical techniques.
The sensitivity of valuations used in the financial statements to possible changes in significant unobservable inputs is shown on page 223.
Critical accounting estimates and judgements
The valuation of financial instruments often involves a significant degree of judgement and complexity, in particular where valuation models make use
of unobservable inputs (‘Level 3’ assets and liabilities). This note provides information on these instruments, including the related unrealised gains and
losses recognised in the period, a description of significant valuation techniques and unobservable inputs, and a sensitivity analysis.
Climate related risks are assumed to be included in the fair values of assets and liabilities traded in active markets.
Valuation
IFRS 13 Fair value measurement requires an entity to classify its assets and liabilities according to a hierarchy that reflects the observability of significant
market inputs. The three levels of the fair value hierarchy are defined below.
Quoted market prices – Level 1
Assets and liabilities are classified as Level 1 if their value is observable in an active market. Such instruments are valued by reference to unadjusted
quoted prices for identical assets or liabilities in active markets where the quoted price is readily available, and the price represents actual and regularly
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 213

occurring market transactions. An active market is one in which transactions occur with sufficient volume and frequency to provide pricing information
on an ongoing basis.
Valuation technique using observable inputs – Level 2
Assets and liabilities classified as Level 2 have been valued using models whose inputs are observable either directly or indirectly. Valuations based on
observable inputs include assets and liabilities such as swaps and forwards which are valued using market standard pricing techniques, and options that
are commonly traded in markets where all the inputs to the market standard pricing models are observable.
Valuation technique using significant unobservable inputs – Level 3
Assets and liabilities are classified as Level 3 if their valuation incorporates significant inputs that are not based on observable market data
(unobservable inputs). A valuation input is considered observable if it can be directly observed from transactions in an active market, or if there is
compelling external evidence demonstrating an executable exit price. Unobservable input levels are generally determined via reference to observable
inputs, historical observations or using other analytical techniques.
The following table shows Barclays Bank Group’s assets and liabilities that are held at fair value disaggregated by valuation technique (fair value
hierarchy) and balance sheet classification:

Assets and liabilities held at fair value
| 2022 | 2021
| Valuation technique using | Valuation technique using
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total
Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m
Trading portfolio assets | 62,469 | 64,822 | 6,480 | 133,771 | 80,836 | 63,754 | 2,281 | 146,871
Financial assets at fair value through the income statement | 5,647 | 199,370 | 6,111 | 211,128 | 4,953 | 177,194 | 6,079 | 188,226
Derivative financial assets | 10,054 | 287,749 | 5,173 | 302,976 | 6,150 | 252,131 | 4,010 | 262,291
Financial assets at fair value through other comprehensive income | 15,029 | 30,051 | 4 | 45,084 | 16,070 | 29,800 | 38 | 45,908
Investment property | — | — | 5 | 5 | — | — | 7 | 7
Total assets | 93,199 | 581,992 | 17,773 | 692,964 | 108,009 | 522,879 | 12,415 | 643,303
Trading portfolio liabilities | (43,679) | (28,725) | (56) | (72,460) | (26,701) | (26,563) | (27) | (53,291)
Financial liabilities designated at fair value | (133) | (270,880) | (1,042) | (272,055) | (174) | (250,553) | (404) | (251,131)
Derivative financial liabilities | (10,823) | (272,020) | (6,363) | (289,206) | (6,571) | (243,893) | (6,059) | (256,523)
Total liabilities | (54,635) | (571,625) | (7,461) | (633,721) | (33,446) | (521,009) | (6,490) | (560,945)

The following table shows Barclays Bank PLC’s assets and liabilities that are held at fair value disaggregated by valuation technique (fair value hierarchy)
and balance sheet classification:

Assets and liabilities held at fair value |  |
| 2022 | 2021
| Valuation technique using | Valuation technique using
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total
Barclays Bank PLC | £m | £m | £m | £m | £m | £m | £m | £m
Trading portfolio assets | 33,165 | 43,904 | 5,974 | 83,043 | 48,365 | 46,372 | 1,987 | 96,724
Financial assets at fair value through the income statement | 923 | 240,951 | 5,451 | 247,325 | 344 | 230,870 | 5,363 | 236,577
Derivative financial assets | 3 | 253,837 | 4,868 | 258,708 | 4 | 231,034 | 3,371 | 234,409
Financial assets at fair value through other comprehensive income | 13,245 | 29,838 | 3 | 43,086 | 14,363 | 29,762 | 38 | 44,163
Investment property | — | — | 2 | 2 | — | — | 3 | 3
Total assets | 47,336 | 568,530 | 16,298 | 632,164 | 63,076 | 538,038 | 10,762 | 611,876
Trading portfolio liabilities | (35,857) | (16,188) | (48) | (52,093) | (34,148) | (15,948) | (20) | (50,116)
Financial liabilities designated at fair value | (24) | (299,871) | (956) | (300,851) | (21) | (290,650) | (391) | (291,062)
Derivative financial liabilities | — | (244,442) | (6,125) | (250,567) | (2) | (222,539) | (5,450) | (227,991)
Total liabilities | (35,881) | (560,501) | (7,129) | (603,511) | (34,171) | (529,137) | (5,861) | (569,169)

Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 214

The following table shows Barclays Bank Group’s Level 3 assets and liabilities that are held at fair value disaggregated by product type:

Level 3 Assets and liabilities held at fair value by product type
| 2022 | 2021
| Assets | Liabilities | Assets | Liabilities
Barclays Bank Group | £m | £m | £m | £m
Interest rate derivatives | 2,361 | (2,858) | 1,091 | (1,351)
Foreign exchange derivatives | 1,513 | (1,474) | 376 | (374)
Credit derivatives | 290 | (603) | 323 | (709)
Equity derivatives | 1,009 | (1,428) | 2,220 | (3,625)
Corporate debt | 1,677 | (49) | 1,205 | (21)
Reverse repurchase and repurchase agreements | 37 | (434) | 13 | (172)
Non-asset backed loans | 8,105 | — | 3,743 | —
Private equity investments | 140 | — | 148 | —
Other a | 2,641 | (615) | 3,296 | (238)
Total | 17,773 | (7,461) | 12,415 | (6,490)

Note
a Other includes commercial real estate loans, asset backed loans, funds and fund-linked products, issued debt, Government and Government sponsored debt, asset backed
securities, equities cash products and investment property.
Valuation techniques and sensitivity analysis
Sensitivity analysis is performed on products with significant unobservable inputs (Level 3) to generate a range of reasonably possible alternative
valuations. The sensitivity methodologies applied take account of nature of the valuation techniques used, as well as availability and reliability of
observable proxy and historical data and impact of using alternative models.
Sensitivities are dynamically calculated on a monthly basis. The calculation is based on range or spread data of a reliable reference source or a scenario
based on relevant market analysis alongside the impact of using alternative models. Sensitivities are calculated without reflecting the impact of any
diversification in the portfolio.
The valuation techniques used, observability and sensitivity analysis for material products within Level 3, are described below.
Interest rate derivatives
Description: Derivatives linked to interest rates or inflation indices. The category includes futures, interest rate and inflation swaps, swaptions, caps,
floors, inflation options, balance guaranteed swaps and other exotic interest rate derivatives.
Valuation: Interest rate and inflation derivatives are generally valued using curves of forward rates constructed from market data to project and discount
the expected future cash flows of trades. Instruments with optionality are valued using volatilities implied from market inputs, and use industry standard
or bespoke models depending on the product type.
Observability: In general, inputs are considered observable up to liquid maturities which are determined separately for each input and underlying.
Unobservable inputs are generally set by referencing liquid market instruments and applying extrapolation techniques or inferred via another reasonable
method.
Foreign exchange derivatives
Description: Derivatives linked to the foreign exchange (FX) market. The category includes FX forward contracts, FX swaps and FX options. The majority
are traded as over the counter (OTC) derivatives.
Valuation: FX derivatives are valued using industry standard and bespoke models depending on the product type. Valuation inputs include FX rates,
interest rates, FX volatilities, interest rate volatilities, FX interest rate correlations and others as appropriate.
Observability: FX correlations, forwards and volatilities are generally observable up to liquid maturities which are determined separately for each input
and underlying. Unobservable inputs are set by referencing liquid market instruments and applying extrapolation techniques, or inferred via another
reasonable method.
Credit derivatives
Description: Derivatives linked to the credit spread of a referenced entity, index or basket of referenced entities or a pool of referenced assets (e.g. a
securitised product). The category includes single name and index credit default swaps (CDS) and total return swaps (TRS).
Valuation: CDS are valued on industry standard models using curves of credit spreads as the principal input. Credit spreads are observed directly from
broker data, third party vendors or priced to proxies.
Observability: CDS contracts referencing entities that are actively traded are generally considered observable. Other valuation inputs are considered
observable if products with significant sensitivity to the inputs are actively traded in a liquid market. Unobservable valuation inputs are generally
determined with reference to recent transactions or inferred from observable trades of the same issuer or similar entities.
Equity derivatives
Description: Exchange traded or OTC derivatives linked to equity indices and single names. The category includes vanilla and exotic equity products.
Valuation: Equity derivatives are valued using industry standard models. Valuation inputs include stock prices, dividends, volatilities, interest rates,
equity repurchase curves and, for multi-asset products, correlations.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 215

Observability: In general, valuation inputs are observable up to liquid maturities which are determined separately for each input and underlying.
Unobservable inputs are set by referencing liquid market instruments and applying extrapolation techniques, or inferred via another reasonable method.
Corporate debt
Description: Primarily corporate bonds.
Valuation: Corporate bonds are valued using observable market prices sourced from broker quotes, inter-dealer prices or other reliable pricing sources.
Observability: Prices for actively traded bonds are considered observable. Unobservable bonds prices are generally determined by reference to bond
yields or CDS spreads for actively traded instruments issued by or referencing the same (or a similar) issuer.
Reverse repurchase and repurchase agreements
Description: Includes securities purchased under resale agreements, securities sold under repurchase agreements, and other similar secured lending
agreements. The agreements are primarily short-term in nature.
Valuation: Repurchase and reverse repurchase agreements are generally valued by discounting the expected future cash flows using industry standard
models that incorporate market interest rates and repurchase rates, based on the specific details of the transaction.
Observability: Inputs are deemed observable up to liquid maturities or for consensus pricing with low pricing-range, and are determined based on the
specific features of the transaction. Unobservable inputs are generally set by referencing liquid market instruments and applying extrapolation
techniques, or inferred via another reasonable method.
Non-asset backed loans
Description: Largely made up of fixed rate loans.
Valuation: Fixed rate loans are valued using models that discount expected future cash flows based on interest rates and loan spreads.
Observability: Within this loan population, the loan spread is generally unobservable. Unobservable loan spreads are determined by incorporating
funding costs, the level of comparable assets such as gilts, issuer credit quality and other factors.
Private equity investments
Description: Includes investments in equity holdings in operating companies not quoted on a public exchange.
Valuation: Private equity investments are valued in accordance with the ‘International Private Equity and Venture Capital Valuation Guidelines’ which
require the use of a number of individual pricing benchmarks such as the prices of recent transactions in the same or similar entities, discounted cash
flow analysis and comparison with the earnings or revenue multiples of listed companies. While the valuation of unquoted equity instruments is
subjective by nature, the relevant methodologies are commonly applied by other market participants and have been consistently applied over time.
Observability: Inputs are considered observable if there is active trading in a liquid market of products with significant sensitivity to the inputs.
Unobservable inputs include earnings or revenue estimates, multiples of comparative companies, marketability discounts and discount rates.
Other
Description: Other includes commercial real estate loans, funds and fund-linked products, asset backed loans, issued debt, Government sponsored debt,
asset backed securities, equity cash products and investment property.
Assets and liabilities reclassified between Level 1 and Level 2
During the year, there were no material transfers between Level 1 to Level 2. (2021: there were no material transfers between Level 1 and Level 2).
Level 3 movement analysis
The following table summarises the movements in the Level 3 balances during the year. Transfers have been reflected as if they had taken place at the
beginning of the year.
Assets and liabilities included in disposal groups classified as held for sale and measured at fair value less cost to sell are not included as these are
measured at fair value on a non-recurring basis.
Asset and liability transfers between Level 2 and Level 3 are primarily due to 1) an increase or decrease in observable market activity related to an input
or 2) a change in the significance of the unobservable input, with assets and liabilities classified as Level 3 if an unobservable input is deemed significant.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 216

Analysis of movements in Level 3 assets and liabilities
| As at 1 January 2022 |  |  |  |  | Total gains and (losses) in the period recognised in the income statement | Total gains or (losses) recognised in OCI | Transfers | As at 31 December 2022
| Purchases | Sales | Issues | Settlements | Trading income b | Other income | In | Out
Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Corporate debt | 389 | 392 | (182) | — | (18) | (39) | — | — | 87 | (34) | 595
Non-asset backed loans | 758 | 7,009 | (2,635) | — | (19) | (264) | — | — | 10 | (22) | 4,837
Other | 1,134 | 667 | (412) | — | (298) | (43) | — | — | 275 | (275) | 1,048
Trading portfolio assets | 2,281 | 8,068 | (3,229) | — | (335) | (346) | — | — | 372 | (331) | 6,480
Non-asset backed loans | 2,985 | 2,739 | (1,019) | — | (1,203) | (262) | — | — | 49 | (21) | 3,268
Private equity investments | 148 | 35 | (59) | — | (3) | 7 | 12 | — | — | — | 140
Other | 2,946 | 6,483 | (6,540) | — | (188) | 1 | 2 | — | 17 | (18) | 2,703
Financial assets at fair value through the income statement | 6,079 | 9,257 | (7,618) | — | (1,394) | (254) | 14 | — | 66 | (39) | 6,111
Other | 38 | — | — | — | (32) | — | — | (2) | — | — | 4
Financial assets at fair value through other comprehensive income | 38 | — | — | — | (32) | — | — | (2) | — | — | 4
Investment property | 7 | — | (1) | — | — | — | (1) | — | — | — | 5
Trading portfolio liabilities | (27) | (23) | 8 | — | — | 9 | — | — | (27) | 4 | (56)
Financial liabilities designated at fair value | (404) | (285) | — | (98) | 82 | 70 | 1 | — | (448) | 40 | (1,042)
Interest rate derivatives | (260) | (217) | — | — | 54 | (467) | — | — | 431 | (38) | (497)
Foreign exchange derivatives | 2 | — | — | — | (6) | 27 | — | — | — | 16 | 39
Credit derivatives | (386) | (4) | (2) | — | 57 | 23 | — | — | 11 | (12) | (313)
Equity derivatives | (1,405) | (213) | — | — | 332 | 307 | — | — | (11) | 571 | (419)
Net derivative financial instruments a | (2,049) | (434) | (2) | — | 437 | (110) | — | — | 431 | 537 | (1,190)
Total | 5,925 | 16,583 | (10,842) | (98) | (1,242) | (631) | 14 | (2) | 394 | 211 | 10,312

Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 217

Analysis of movements in Level 3 assets and liabilities
| As at 1 January 2021 |  |  |  |  | Total gains and (losses) in the period recognised in the income statement | Total gains or (losses) recognised in OCI | Transfers | As at 31 December 2021
| Purchases | Sales | Issues | Settlements | Trading income b | Other income | In | Out
Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Corporate debt | 151 | 310 | (123) | — | (12) | 38 | — | — | 41 | (16) | 389
Non-asset backed loans | 709 | 1,580 | (1,409) | — | (85) | (1) | — | — | 45 | (81) | 758
Other | 1,003 | 371 | (425) | — | (57) | (49) | — | — | 442 | (151) | 1,134
Trading portfolio assets | 1,863 | 2,261 | (1,957) | — | (154) | (12) | — | — | 528 | (248) | 2,281
Non-asset backed loans | 2,280 | 1,379 | (306) | — | (248) | (59) | (174) | — | 113 | — | 2,985
Private equity investments | 88 | 68 | (7) | — | (8) | — | 10 | — | 35 | (38) | 148
Other | 2,024 | 11,256 | (10,228) | — | (184) | 2 | 28 | — | 49 | (1) | 2,946
Financial assets at fair value through the income statement | 4,392 | 12,703 | (10,541) | — | (440) | (57) | (136) | — | 197 | (39) | 6,079
Non-asset backed loans | 106 | — | — | — | — | — | — | — | — | (106) | —
Other | 47 | — | — | — | (7) | — | — | (2) | — | — | 38
Financial assets at fair value through other comprehensive income | 153 | — | — | — | (7) | — | — | (2) | — | (106) | 38
Investment property | 10 | — | (2) | — | — | — | (1) | — | — | — | 7
Trading portfolio liabilities | (28) | (5) | 23 | — | — | (6) | — | — | (12) | 1 | (27)
Financial liabilities designated at fair value | (341) | (4) | — | (101) | 66 | 21 | — | — | (68) | 23 | (404)
Interest rate derivatives | (2) | 20 | — | — | 105 | (255) | — | — | 90 | (218) | (260)
Foreign exchange derivatives | 1 | — | — | — | 40 | (2) | — | — | 10 | (47) | 2
Credit derivatives | (155) | (239) | 9 | — | (45) | 34 | — | — | 10 | — | (386)
Equity derivatives | (1,615) | 90 | (1) | — | (15) | (3) | — | — | (3) | 142 | (1,405)
Net derivative financial instruments a | (1,771) | (129) | 8 | — | 85 | (226) | — | — | 107 | (123) | (2,049)
Total | 4,278 | 14,826 | (12,469) | (101) | (450) | (280) | (137) | (2) | 752 | (492) | 5,925

Notes
a The derivative financial instruments are represented on a net basis. On a gross basis, derivative financial assets are £5,173m (2021: £4,010m) and derivative financial
liabilities are £6,363m (2021: £6,059m).
b Trading income represents gains and (losses) on Level 3 financial instruments which in the majority are offset by losses and gains on financial instruments disclosed in
level 2
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 218

Analysis of movements in Level 3 assets and liabilities
| As at 1 January 2022 |  |  |  |  | Total gains and (losses) in the period recognised in the income statement | Total gains or (losses) recognised in OCI | Transfers | 31 December 2022
| Purchases | Sales | Issues | Settlements | Trading income b | Other income | In | Out
Barclays Bank PLC | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Trading portfolio assets | 1,987 | 7,567 | (2,822) | — | (324) | (308) | — | — | 132 | (258) | 5,974
Financial assets at fair value through the income statement | 5,363 | 8,921 | (7,559) | — | (1,229) | (261) | 188 | — | 66 | (38) | 5,451
Fair value through other comprehensive income | 38 | — | — | — | (32) | — | — | (3) | — | — | 3
Investment property | 3 | — | (1) | — | — | — | — | — | — | — | 2
Trading portfolio liabilities | (20) | (20) | 1 | — | — | 9 | — | — | (22) | 4 | (48)
Financial liabilities designated at fair value | (391) | (285) | — | (97) | 82 | 70 | — | — | (366) | 31 | (956)
Net derivative financial instruments a | (2,079) | (463) | (2) | — | 443 | (132) | — | — | 427 | 549 | (1,257)
Total | 4,901 | 15,720 | (10,383) | (97) | (1,060) | (622) | 188 | (3) | 237 | 288 | 9,169

Analysis of movements in Level 3 assets and liabilities |  |  |  |  |  |
| As at 1 January 2021 |  |  |  |  | Total gains and (losses) in the period recognised in the income statement | Total gains or (losses) recognised in OCI | Transfers | As at 31 December 2021
| Purchases | Sales | Issues | Settlements | Trading income b | Other income | In | Out
Barclays Bank PLC | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Trading portfolio assets | 1,392 | 1,989 | (1,543) | — | (158) | (23) | — | — | 457 | (127) | 1,987
Financial assets at fair value through the income statement | 3,486 | 12,486 | (10,266) | — | (278) | (71) | (159) | 7 | 158 | — | 5,363
Fair value through other comprehensive income | 153 | — | — | — | (7) | — | — | (2) | — | (106) | 38
Investment property | 5 | — | (2) | — | — | — | — | — | — | — | 3
Trading portfolio liabilities | (28) | (5) | 27 | — | — | (6) | — | — | (9) | 1 | (20)
Financial liabilities designated at fair value | (321) | (13) | — | (92) | 67 | 21 | — | — | (68) | 15 | (391)
Net derivative financial instruments a | (1,614) | (129) | 6 | — | 20 | (322) | — | — | 97 | (137) | (2,079)
Total | 3,073 | 14,328 | (11,778) | (92) | (356) | (401) | (159) | 5 | 635 | (354) | 4,901

Notes
a The derivative financial instruments are represented on a net basis. On a gross basis, derivative financial assets are £4,868m (2021: £3,371 m) and derivative financial
liabilities are £6,125m (2021: £5,450 m).
b Trading income represents gains and (losses) on Level 3 financial instruments which in the majority are offset by losses and gains on financial instruments disclosed in
level 2
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 219

Unrealised gains and losses on Level 3 financial assets and liabilities
The following tables disclose the unrealised gains and losses recognised in the year arising on Level 3 financial assets and liabilities held at year end.

Unrealised gains and (losses) recognised during the period on Level 3 assets and liabilities held at year end
| 2022 | 2021
| Income statement | Other compre- hensive income |  | Income statement | Other compre- hensive income |
Barclays Bank Group | Trading income a | Other income | Total | Trading income a | Other income | Total
As at 31 December | £m | £m | £m | £m | £m | £m | £m | £m
Trading portfolio assets | (290) | — | — | (290) | (67) | — | — | (67)
Financial assets at fair value through the income statement | (152) | 9 | — | (143) | (53) | 22 | — | (31)
Fair value through other comprehensive income | — | — | — | — | — | — | — | —
Investment property | — | (1) | — | (1) | — | — | — | —
Trading portfolio liabilities | 8 | — | — | 8 | (5) | — | — | (5)
Financial liabilities designated at fair value | 55 | — | — | 55 | 16 | (1) | — | 15
Net derivative financial instruments | (80) | — | — | (80) | (196) | — | — | (196)
Total | (459) | 8 | — | (451) | (305) | 21 | — | (284)

Unrealised gains and (losses) recognised during the period on Level 3 assets and liabilities held at year end
| 2022 | 2021
| Income statement | Other compre- hensive income | Total | Income statement | Other compre- hensive income | Total
Barclays Bank PLC | Trading income a | Other income | Trading income a | Other income
As at 31 December | £m | £m | £m | £m | £m | £m | £m | £m
Trading portfolio assets | (261) | — |  | (261) | (55) | — | — | (55)
Financial assets at fair value through the income statement | (159) | 4 |  | (155) | (68) | 17 | — | (51)
Fair value through other comprehensive income | — | — |  | — | — | — | — | —
Trading portfolio liabilities | 8 | — |  | 8 | (5) | — | — | (5)
Financial liabilities designated at fair value | 55 | — |  | 55 | 9 | — | — | 9
Net derivative financial instruments | (101) | — |  | (101) | (276) | — | — | (276)
Total | (458) | 4 | — | (454) | (395) | 17 | — | (378)

Note
a.Trading income represents gains and (losses) on Level 3 financial instruments which in the majority are offset by losses and gains on financial instruments disclosed in
level 2
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 220

Significant unobservable inputs
The following table discloses the valuation techniques and significant unobservable inputs for assets and liabilities recognised at fair value and classified
as Level 3 along with the range of values used for those significant unobservable inputs:

| Valuation technique(s)a | Significant unobservable inputs | 2022 | 2021 |
| Range | Range |
Barclays Bank Group | Min | Max | Min | Max | Units b
Derivative financial instruments c |  |  |  |  |  |  |
Interest rate derivatives | Discounted cash flows | Inflation forwards | 3 | 5 | 0 | 3 | %
|  | Credit spread | 17 | 2,159 | 9 | 1,848 | bps
|  | Yield | (3) | 56 | — | — | %
| Correlation Model | Inflation forwards | (20) | (13) | (20) | (13) | %
| Option model | Inflation volatility | 49 | 315 | 31 | 130 | bps vol
|  | Interest rate volatility | 36 | 430 | 5 | 600 | bps vol
|  | Option volatility | 57 | 60 | — | — | £m
|  | FX - IR correlation | (20) | 78 | (20) | 78 | %
|  | IR - IR correlation | 12 | 99 | (100) | 99 | %
Credit derivatives | Discounted cash flows | Credit spread | 3 | 2,943 | 2 | 2,925 | bps
| Comparable pricing | Price | 79 | 92 | — | — | points
Equity derivatives | Option model | Equity volatility | 3 | 140 | 2 | 108 | %
|  | Equity - equity correlation | 40 | 100 | 10 | 100 | %
| Discounted cash flow | Discounted margin | (205) | 634 | (129) | 93 | bps
Foreign exchange derivatives | Option Model | Option Volatility | 0 | 100 | 0 | 100 | points
| Discount cash flows | Yield | (3) | 4 | — | — | %
Non-derivative financial instruments |  |  |  |  |  |  |
Non-asset backed loans | Discounted cash flows | Loan spread | 51 | 801 | 31 | 811 | bps
|  | Credit spread | 200 | 300 | 200 | 300 | bps
|  | Yield | 5 | 34 | 3 | 10 | %
| Comparable pricing | Price | 0 | 101 | 0 | 145 | points
Corporate debt | Comparable pricing | Price | 0 | 232 | 0 | 284 | points
| Discounted cash flows | Loan spread | 229 | 834 | 229 | 854 | bps
Commercial Real Estate loans | Discounted cash flows | Credit spread | 267 | 426 | 68 | 543 | bps
Reverse repurchase and repurchase agreements | Discounted cash flows | Repo spread | 321 | 502 | — | — | bps
Issued debt | Discounted cash flows | Credit spread | 73 | 548 | — | — | bps
| Option model | Equity volatility | 3 | 111 | — | — | %
|  | Interest rate volatility | 42 | 261 | — | — | bps vol

Notes
a A range has not been provided for Net Asset Value as there would be a wide range reflecting the diverse nature of the positions.
b The units used to disclose ranges for significant unobservable inputs are percentages, points and basis points. Points are a percentage of par; for example, 100 points
equals 100% of par. A basis point equals 1/100 th of 1%; for example, 150 basis points equals 1.5%.
c Certain derivative instruments are classified as Level 3 due to a significant unobservable credit spread input into the calculation of the Credit Valuation Adjustment for the
instruments. The range of significant unobservable credit spreads is between 17bps- 2,159bps (2021: 32bps-1,848bps).
The following section describes the significant unobservable inputs identified in the table above, and the sensitivity of fair value measurement of the
instruments categorised as Level 3 assets or liabilities to increases in significant unobservable inputs. Where sensitivities are described, the inverse
relationship will also generally apply.
Where reliable interrelationships can be identified between significant unobservable inputs used in fair value measurement, a description of those
interrelationships is included below.
Forwards
A price or rate that is applicable to a financial transaction that will take place in the future.
In general, a significant increase in a forward in isolation will result in a fair value increase for the contracted receiver of the underlying (currency, bond,
commodity, etc.), but the sensitivity is dependent on the specific terms of the instrument.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 221

Credit spread
Credit spreads typically represent the difference in yield between an instrument and a benchmark security or reference rate. Credit spreads reflect the
additional yield that a market participant demands for taking on exposure to the credit risk of an instrument and form part of the yield used in a
discounted cash flow calculation.
In general, a significant increase in credit spread in isolation will result in a fair value decrease for a cash asset.
For a derivative instrument, a significant increase in credit spread in isolation can result in a fair value increase or decrease depending on the specific
terms of the instrument.
Volatility
Volatility is a measure of the variability or uncertainty in return for a given derivative underlying. It is an estimate of how much a particular underlying
instrument input or index will change in value over time. In general, volatilities are implied from observed option prices. For unobservable options the
implied volatility may reflect additional assumptions about the nature of the underlying risk, and the strike/maturity profile of a specific contract.
In general a significant increase in volatility in isolation will result in a fair value increase for the holder of a simple option, but the sensitivity is dependent
on the specific terms of the instrument.
There may be interrelationships between unobservable volatilities and other unobservable inputs (e.g. when equity prices fall, implied equity volatilities
generally rise) but these are generally specific to individual markets and may vary over time.
Correlation
Correlation is a measure of the relationship between the movements of two variables. Correlation can be a significant input into valuation of derivative
contracts with more than one underlying instrument. Credit correlation generally refers to the correlation between default processes for the separate
names that make up the reference pool of a collateralised debt obligation (CDO) structure.
A significant increase in correlation in isolation can result in a fair value increase or decrease depending on the specific terms of the instrument.
Comparable price
Comparable instrument prices are used in valuation by calculating an implied yield (or spread over a liquid benchmark) from the price of a comparable
observable instrument, then adjusting that yield (or spread) to account for relevant differences such as maturity or credit quality. Alternatively, a price-
to-price basis can be assumed between the comparable and unobservable instruments in order to establish a value.
Non-asset backed loans includes a portfolio of loans extended to clients within the Barclays Bank Group’s leveraged finance business. Leveraged finance
loans are originated where Barclays Bank Group provides financing commitments to clients to facilitate strategic transactions such as leverage buyouts
and acquisitions. The sensitivity of the portfolio to unobservable inputs is judgmental reflecting their illiquid nature and the significance of unobservable
price inputs to the valuation.
In general, a significant increase in comparable price in isolation will result in an increase in the price of the unobservable instrument. For derivatives, a
change in the comparable price in isolation can result in a fair value increase or decrease depending on the specific terms of the instrument.
Loan spread
Loan spreads typically represent the difference in yield between an instrument and a benchmark security or reference rate. Loan spreads typically reflect
credit quality, the level of comparable assets such as gilts and other factors, and form part of the yield used in a discounted cash flow calculation.
Non-asset backed loans contains a portfolio primarily consisting of long-dated fixed rate loans extended to counterparties in the UK Education, Social
Housing and Local Authority sectors (ESHLA). The loans are categorised as Level 3 in the fair value hierarchy due to their illiquid nature and the
significance of unobservable loan spreads to the valuation. Valuation uncertainty arises from the long-dated nature of the portfolio, the lack of
secondary market in the loans and the lack of observable loan spreads. The majority of ESHLA loans are to borrowers in heavily regulated sectors that
are considered extremely low credit risk, and have a history of near zero defaults since inception. While the overall loan spread range is from 51bps to
297bps (2021: 31bps to 601bps), the vast majority of spreads are concentrated towards the bottom end of this range, with 97% (2021: 99%) of the
loan notional being valued with spreads less than 200bps consistently for both years.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 222

In general, a significant increase in loan spreads in isolation will result in a fair value decrease for a loan.

Sensitivity analysis of valuations using unobservable inputs
| 2022 | 2021
| Favourable changes | Unfavourable changes | Favourable changes | Unfavourable changes
| Income statement | Equity | Income statement | Equity | Income statement | Equity | Income statement | Equity
Barclays Bank Group | £m | £m | £m | £m | £m | £m | £m | £m
Interest rate derivatives | 119 | — | (155) | — | 51 | — | (79) | —
Foreign exchange derivatives | 16 | — | (22) | — | 20 | — | (28) | —
Credit derivatives | 79 | — | (71) | — | 112 | — | (103) | —
Equity derivatives | 161 | — | (168) | — | 181 | — | (190) | —
Corporate debt | 45 | — | (27) | — | 38 | — | (28) | —
Non asset backed loans | 244 | — | (450) | — | 99 | — | (150) | —
Private equity investments | 10 | — | (10) | — | 10 | — | (11) | —
Other a | 53 | — | (64) | — | 44 | — | (62) | —
Total | 727 | — | (967) | — | 555 | — | (651) | —

Note
a Other includes asset backed loans, equity cash products and funds and fund-linked products.
The effect of stressing unobservable inputs to a range of reasonably possible alternatives, alongside considering the impact of using alternative models,
would be to increase fair values by up to £727m (2021: £555m) or to decrease fair values by up to £967m (2021: £651m) with all the potential effect
impacting profit and loss.
Fair value adjustments
Key balance sheet valuation adjustments are quantified below:

| 2022 | 2021
Barclays Bank Group | £m | £m
Exit price adjustments derived from market bid-offer spreads | (566) | (498)
Uncollateralised derivative funding | (11) | (127)
Derivative credit valuation adjustments | (319) | (212)
Derivative debit valuation adjustments | 208 | 91

Exit price adjustments derived from market bid-offer spreads
Barclays Bank Group uses mid-market pricing where it is a market maker and has the ability to transact at, or better than, mid price (which is the case
for certain equity, bond and vanilla derivative markets). For other financial assets and liabilities, bid-offer adjustments are recorded to reflect the exit
level for the expected close out strategy. The methodology for determining the bid-offer adjustment for a derivative portfolio involves calculating the net
risk exposure by offsetting long and short positions by strike and term in accordance with the risk management and hedging strategy.
Bid-offer levels are generally derived from market quotes such as broker data. Less liquid instruments may not have a directly observable bid-offer level.
In such instances, an exit price adjustment may be derived from an observable bid-offer level for a comparable liquid instrument, or determined by
calibrating to derivative prices, or by scenario or historical analysis.
Exit price adjustments derived from market bid-offer spreads have increased on a gross basis by £68m to £566m.
Discounting approaches for derivative instruments
Collateralised
In line with market practice, the methodology for discounting collateralised derivatives takes into account the nature and currency of the collateral that
can be posted within the relevant credit support annex (CSA). The CSA aware discounting approach recognises the ‘cheapest to deliver’ option that
reflects the ability of the party posting collateral to change the currency of the collateral.
Uncollateralised
A fair value adjustment of £11m has been applied to account for the impact of incorporating the cost of funding into the valuation of uncollateralised
and partially collateralised derivative portfolios and collateralised derivatives where the terms of the agreement do not allow the rehypothecation of
collateral received. This adjustment is referred to as the Uncollateralised derivative funding. The u ncollateralised derivative funding adjustment has
decreased by £116m to £11m as a result of underlying moves in the exposure profile of the derivative portfolio in scope.
Derivative credit and debit valuation adjustments
Derivative credit valuation adjustments and Derivative debit valuation adjustments are incorporated into derivative valuations to reflect the impact on
fair value of counterparty credit risk and Barclays Bank Group’s own credit quality respectively. These adjustments are calculated for uncollateralised
and partially collateralised derivatives across all asset classes. Derivative credit valuation adjustments and Derivative debit valuation adjustments are
calculated using estimates of exposure at default, probability of default and recovery rates, at a counterparty level. Counterparties include (but are not
limited to) corporates, sovereigns and sovereign agencies and supranationals.
Exposure at default is generally estimated through the simulation of underlying risk factors through approximating with a more vanilla structure, or by
using current or scenario-based mark to market as an estimate of future exposure.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 223

Probability of default and recovery rate information is generally sourced from the Credit Default Swap (CDS) markets. Where this information is not
available, or considered unreliable, alternative approaches are taken based on mapping internal counterparty ratings onto historical or market-based
default and recovery information.
Derivative credit valuation adjustments increased by £107m to £319m as a result of widening of input counterparty credit spreads. Derivative debit
valuation adjustments increased by £117m to £208m, as a result of widening of input own credit spreads.
Correlation between counterparty credit and underlying derivative risk factors, termed ‘wrong-way,’ or ‘right-way’ risk, is not systematically
incorporated into the Derivative credit valuation adjustments calculation but is adjusted where the underlying exposure is directly related to the
counterparty.
Barclays Bank Group continues to monitor market practices and activity to ensure the approach to uncollateralised derivative valuation remains
appropriate.
Portfolio exemptions
Barclays Bank Group uses the portfolio exemption in IFRS 13 Fair Value Measurement to measure the fair value of groups of financial assets and
liabilities. Instruments are measured using the price that would be received to sell a net long position (i.e. an asset) for a particular risk exposure or to
transfer a net short position (i.e. a liability) for a particular risk exposure in an orderly transaction between market participants at the balance sheet date
under current market conditions. Accordingly, Barclays Bank Group measures the fair value of the group of financial assets and liabilities consistently
with how market participants would price the net risk exposure at the measurement date.
Unrecognised gains as a result of the use of valuation models using unobservable inputs
The amount that has yet to be recognised in income that relates to the difference between the transaction price (the fair value at initial recognition) and
the amount that would have arisen had valuation models using unobservable inputs been used on initial recognition, less amounts subsequently
recognised, is £106m (2021: £122m) for financial instruments measured at fair value and £25m (2021: £28m) for financial instruments carried at
amortised cost. There are additions and FX gains of £49m (2021: £59m) and amortisation and releases of £65m (2021: £40m) for financial instruments
measured at fair value and additions of £nil (2021: £nil) and amortisation and releases of £3m (2021: £2m) for financial instruments carried at
amortised cost.
Third party credit enhancements
Structured and brokered certificates of deposit issued by Barclays Bank Group are insured up to $250,000 per depositor by the Federal Deposit
Insurance Corporation (FDIC) in the US. The FDIC is funded by premiums that Barclays Bank Group and other banks pay for deposit insurance coverage.
The carrying value of these issued certificates of deposit that are designated under the IFRS 9 fair value option includes this third party credit
enhancement. The on-balance sheet value of these brokered certificates of deposit amounted to £5,197m (2021: £790m).
Comparison of carrying amounts and fair values
The following tables summarises the fair value of financial assets and liabilities measured at amortised cost on Barclays Bank Group’s and Barclays Bank
PLC's balance sheet:

Barclays Bank Group | 2022 | 2021
| Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Carrying amount | Fair value | Level 1 | Level 2 | Level 3
As at 31 December | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Financial assets |  |  |  |  |  |  |  |  |  |
Loans and advances at amortised cost | 182,507 | 181,727 | 14,210 | 86,559 | 80,958 | 145,259 | 145,665 | 15,406 | 63,948 | 66,311
Reverse repurchase agreements and other similar secured lending | 725 | 725 | — | 725 | — | 3,177 | 3,177 | — | 3,177 | —
Financial liabilities |  |  |  |  |  |  |  |  |  |
Deposits at amortised cost | (291,579) | (291,552) | (176,959) | (114,267) | (326) | (262,828) | (262,843) | (180,829) | (82,014) | —
Repurchase agreements and other similar secured borrowing | (11,965) | (11,966) | — | (11,966) | — | (12,769) | (12,776) | — | (12,776) | —
Debt securities in issue | (60,012) | (59,895) | — | (57,954) | (1,941) | (48,388) | (48,350) | — | (46,201) | (2,149)
Subordinated liabilities | (38,253) | (38,686) | — | (38,465) | (220) | (32,185) | (33,598) | — | (33,598) | —

Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 224

Barclays Bank PLC | 2022 | 2021
| Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Carrying amount | Fair value | Level 1 | Level 2 | Level 3
As at 31 December | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
Financial assets |  |  |  |  |  |  |  |  |  |
Loans and advances at amortised cost | 225,783 | 223,668 | 10,360 | 171,952 | 41,356 | 199,782 | 198,943 | 11,891 | 150,019 | 37,033
Reverse repurchase agreements and other similar secured lending | 5,908 | 5,908 | — | 5,908 | — | 4,982 | 4,982 | — | 4,982 | —
Financial liabilities |  |  |  |  |  |  |  |  |  |
Deposits at amortised cost | (313,895) | (313,895) | (146,958) | (166,612) | (326) | (286,761) | (286,756) | (152,350) | (134,406) | —
Repurchase agreements and other similar secured borrowing | (26,307) | (26,309) | — | (26,309) | — | (29,202) | (29,208) | — | (29,208) | —
Debt securities in issue | (40,166) | (40,115) | — | (40,096) | (19) | (32,585) | (32,542) | — | (32,542) | —
Subordinated liabilities | (37,656) | (30,818) | — | (30,598) | (220) | (31,875) | (33,287) | — | (33,287) | —

The fair value is an estimate of the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. As a wide range of valuation techniques are available, it may not be appropriate to directly compare this fair value
information to independent market sources or other financial institutions. Different valuation methodologies and assumptions can have a significant
impact on fair values which are based on unobservable inputs.
Financial assets
The carrying value of financial assets held at amortised cost (including loans and advances to banks and customers, and other lending such as reverse
repurchase agreements and cash collateral on securities borrowed) is determined in accordance with the relevant accounting policy in Note 18.
Loans and advances at amortised cost
The fair value of loans and advances, for the purpose of this disclosure, is derived from discounting expected cash flows in a way that reflects the
current market price for lending to issuers of similar credit quality. Where market data or credit information on the underlying borrowers is unavailable,
a number of proxy/extrapolation techniques are employed to determine the appropriate discount rates.
Reverse repurchase agreements and other similar secured lending
The fair value of reverse repurchase agreements approximates carrying amount as these balances are generally short dated and fully collateralised.
Financial liabilities
The carrying value of financial liabilities held at amortised cost (including customer accounts, other deposits, repurchase agreements and cash collateral
on securities lent, debt securities in issue and subordinated liabilities) is determined in accordance with the accounting policy in Note 1.
Deposits at amortised cost
In many cases, the fair value disclosed approximates carrying value because the instruments are short term in nature or have interest rates that reprice
frequently, such as customer accounts and other deposits and short-term debt securities.
The fair value for deposits with longer-term maturities, mainly time deposits, are estimated using discounted cash flows applying either market rates or
current rates for deposits of similar remaining maturities. Consequently the fair value discount is minimal.
Repurchase agreements and other similar secured borrowing
The fair value of repurchase agreements approximates carrying amounts as these balances are generally short dated.
Debt securities in issue
Fair values of other debt securities in issue are based on quoted prices where available, or where the instruments are short dated, carrying amount
approximates fair value.
Subordinated liabilities
Fair values for dated and undated convertible and non-convertible loan capital are based on quoted market rates for the issuer concerned or issuers
with similar terms and conditions.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 225

17 Offsetting financial assets and financial liabilities
In accordance with IAS 32 Financial Instruments: Presentation, the Barclays Bank Group reports financial assets and financial liabilities on a net basis on
the balance sheet only if there is a legally enforceable right to set-off the recognised amounts and there is intention to settle on a net basis, or to realise
the asset and settle the liability simultaneously. The following table shows the impact of netting arrangements on:
▪All financial assets and liabilities that are reported net on the balance sheet.
▪All derivative financial instruments and reverse repurchase and repurchase agreements and other similar secured lending and borrowing agreements
that are subject to enforceable master netting arrangements or similar agreements, but do not qualify for balance sheet netting.
The ‘Net amounts’ presented in the table below are not intended to represent the Barclays Bank Group’s actual exposure to credit risk, as a variety of
credit mitigation strategies are employed in addition to netting and collateral arrangements.

Barclays Bank Group | Amounts subject to enforceable netting arrangements | Amounts not subject to enforceable netting arrangements c | Balance sheet total d
| Effects of offsetting on-balance sheet | Related amounts not offset
| Gross amounts | Amounts offset a | Net amounts reported on the balance sheet | Financial instruments | Financial collateral b | Net amount
As at 31 December 2022 | £m | £m | £m | £m | £m | £m | £m | £m
Derivative financial assets | 374,848 | (76,429) | 298,419 | (238,062) | (45,920) | 14,437 | 4,557 | 302,976
Reverse repurchase agreements and other similar secured lending e | 560,060 | (397,439) | 162,621 | — | (161,992) | 629 | 2,802 | 165,423
Total assets | 934,908 | (473,868) | 461,040 | (238,062) | (207,912) | 15,066 | 7,359 | 468,399
Derivative financial liabilities | (360,242) | 76,530 | (283,712) | 238,062 | 26,407 | (19,243) | (5,494) | (289,206)
Repurchase agreements and other similar secured borrowing e | (573,332) | 397,439 | (175,893) | — | 175,893 | — | (9,244) | (185,137)
Total liabilities | (933,574) | 473,969 | (459,605) | 238,062 | 202,300 | (19,243) | (14,738) | (474,343)
As at 31 December 2021 |  |  |  |  |  |  |  |
Derivative financial assets | 279,286 | (24,137) | 255,149 | (202,347) | (39,953) | 12,849 | 7,142 | 262,291
Reverse repurchase agreements and other similar secured lending e | 519,855 | (375,376) | 144,479 | — | (143,976) | 503 | 3,884 | 148,363
Total assets | 799,141 | (399,513) | 399,628 | (202,347) | (183,929) | 13,352 | 11,026 | 410,654
Derivative financial liabilities | (273,996) | 23,606 | (250,390) | 202,347 | 34,151 | (13,892) | (6,133) | (256,523)
Repurchase agreements and other similar secured borrowing e | (540,462) | 375,376 | (165,086) | — | 165,086 | — | (15,758) | (180,844)
Total liabilities | (814,458) | 398,982 | (415,476) | 202,347 | 199,237 | (13,892) | (21,891) | (437,367)

Notes
a Amounts offset for derivative financial assets additionally includes cash collateral netted of £15,199m (2021: £3,815m). Amounts offset for derivative financial liabilities
additionally includes cash collateral netted of £15,098m (2021: £4,346m). Settlements assets and liabilities have been offset amounting to £24,250m (2021: £22,837m).
b Financial collateral of £45,920m (2021: £39,953m) was received in respect of derivative assets, including £34,496m (2021: £34,149m) of cash collateral and £11,424m
(2021: £5,804m) of non-cash collateral. Financial collateral of £26,407m (2021: £34,151m) was placed in respect of derivative liabilities, including £24,990m (2021:
£31,861m) of cash collateral and £1,417m (2021: £2,290m) of non-cash collateral. The collateral amounts are limited to net balance sheet exposure so as to not include
over-collateralisation.
c This column includes contractual rights of set-off that are subject to uncertainty under the laws of the relevant jurisdiction.
d The balance sheet total is the sum of ‘Net amounts reported on the balance sheet’ that are subject to enforceable netting arrangements and ‘Amounts not subject to
enforceable netting arrangements’.
e Reverse Repurchase agreements and other similar secured lending of £165,423m (2021: £148,363m) is split by fair value £164,698m (2021: £145,186m) and amortised
cost £725m (2021: £3,177m). Repurchase agreements and other similar secured borrowing of £185,137m (2021: £180,844m) is split by fair value £173,172m (2021:
£168,075m) and amortised cost £11,965m (2021: £12,769m).
Derivative assets and liabilities
The ‘Financial instruments’ column identifies financial assets and liabilities that are subject to set off under netting agreements, such as the ISDA Master
Agreement or derivative exchange or clearing counterparty agreements, whereby all outstanding transactions with the same counterparty can be offset
and close-out netting applied across all outstanding transactions covered by the agreements if an event of default or other predetermined events occur.
Financial collateral refers to cash and non-cash collateral obtained, typically daily or weekly, to cover the net exposure between counterparties by
enabling the collateral to be realised in an event of default or if other predetermined events occur.
Reverse repurchase and repurchase agreements and other similar secured lending and borrowing
The ‘Financial instruments’ column identifies financial assets and liabilities that are subject to set off under netting agreements, such as Global Master
Repurchase Agreements and Global Master Securities Lending Agreements, whereby all outstanding transactions with the same counterparty can be
offset and close-out netting applied across all outstanding transactions covered by the agreements if an event of default or other predetermined events
occur.
Financial collateral typically comprises highly liquid securities which are legally transferred and can be liquidated in the event of counterparty default.
These offsetting collateral arrangements and other credit risk mitigation strategies used by the Barclays Bank Group are further explained in the Credit
risk mitigation section on page 60.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 226

Barclays Bank PLC | Amounts subject to enforceable netting arrangements | Amounts not subject to enforceable netting arrangements c | Balance sheet total d
| Effects of offsetting on-balance sheet | Related amounts not offset
| Gross amounts | Amounts offset a | Net amounts reported on the balance sheet | Financial instruments | Financial collateral b | Net amount
As at 31 December 2022 | £m | £m | £m | £m | £m | £m | £m | £m
Derivative financial assets | 302,076 | (47,480) | 254,596 | (209,530) | (32,520) | 12,546 | 4,112 | 258,708
Reverse repurchase agreements and other similar secured lending e | 607,414 | (406,040) | 201,374 | — | (201,374) | — | 1,974 | 203,348
Total assets | 909,490 | (453,520) | 455,970 | (209,530) | (233,894) | 12,546 | 6,086 | 462,056
Derivative financial liabilities | (292,493) | 46,654 | (245,839) | 209,530 | 20,758 | (15,551) | (4,728) | (250,567)
Repurchase agreements and other similar secured borrowing e | (648,513) | 406,040 | (242,473) | — | 242,473 | — | (7,485) | (249,958)
Total liabilities | (941,006) | 452,694 | (488,312) | 209,530 | 263,231 | (15,551) | (12,213) | (500,525)
As at 31 December 2021 | £m | £m | £m | £m | £m | £m | £m | £m
Derivative financial assets | 244,885 | (17,415) | 227,470 | (183,718) | (31,320) | 12,432 | 6,939 | 234,409
Reverse repurchase agreements and other similar secured lending e | 561,851 | (372,048) | 189,803 | — | (189,803) | — | 3,232 | 193,035
Total assets | 806,736 | (389,463) | 417,273 | (183,718) | (221,123) | 12,432 | 10,171 | 427,444
Derivative financial liabilities | (239,385) | 17,208 | (222,177) | 183,718 | 26,460 | (11,999) | (5,814) | (227,991)
Repurchase agreements and other similar secured borrowing e | (606,183) | 372,048 | (234,135) | — | 234,135 | — | (12,562) | (246,697)
Total liabilities | (845,568) | 389,256 | (456,312) | 183,718 | 260,595 | (11,999) | (18,376) | (474,688)

Notes
a Amounts offset for derivative financial assets additionally includes cash collateral netted of £8,771 m (2021: £2,736 m). Amounts offset for derivative financial liabilities
additionally includes cash collateral netted of £9,597 m (2021: £2,943 m). Settlements assets and liabilities have been offset amounting to £17,683 m (2021: £16,459 m).
b Financial collateral of £32,520 m (2021: £31,320 m) was received in respect of derivative assets, including £23,212 m (2021: £26,166 m) of cash collateral and £9,308 m
(2021: £5,154 m) of non-cash collateral. Financial collateral of £20,758 m (2021: £26,460 m) was placed in respect of derivative liabilities, including £19,624 m (2021:
£24,860 m) of cash collateral and £1,134 m (2021: £1,600 m) of non-cash collateral. The collateral amounts are limited to net balance sheet exposure so as to not include
over-collateralisation.
c This column includes contractual rights of set-off that are subject to uncertainty under the laws of the relevant jurisdiction.
d The balance sheet total is the sum of ‘Net amounts reported on the balance sheet’ that are subject to enforceable netting arrangements and ‘Amounts not subject to
enforceable netting arrangements’.
e Reverse Repurchase agreements and other similar secured lending of £203,348 m (2021: £193,035 m) is split by fair value £197,440 m (2021: £188,053 m) and amortised
cost £5,908 m (2021: £4,982 m). Repurchase agreements and other similar secured borrowing of £249,958 m (2021: £246,697 m) is split by fair value £223,651 m (2021:
£217,495 m) and amortised cost £26,307 m (2021: £29,202 m).
Derivative assets and l iabilities
The ‘Financial instruments’ column identifies financial assets and liabilities that are subject to set off under netting agreements, such as the ISDA Master
Agreement or derivative exchange or clearing counterparty agreements, whereby all outstanding transactions with the same counterparty can be offset
and close-out netting applied across all outstanding transactions covered by the agreements if an event of default or other predetermined events occur.
Financial collateral refers to cash and non-cash collateral obtained, typically daily or weekly, to cover the net exposure between counterparties by
enabling the collateral to be realised in an event of default or if other predetermined events occur.
Reverse repurchase and repurchase agreements and other similar secured lending and borrowing
The ‘Financial instruments’ column identifies financial assets and liabilities that are subject to set off under netting agreements, such as Global Master
Repurchase Agreements and Global Master Securities Lending Agreements, whereby all outstanding transactions with the same counterparty can be
offset and close-out netting applied across all outstanding transactions covered by the agreements if an event of default or other predetermined events
occur.
Financial collateral typically comprises highly liquid securities which are legally transferred and can be liquidated in the event of counterparty default.
These offsetting collateral arrangements and other credit risk mitigation strategies used by the Barclays Bank PLC are further explained in the Credit risk
mitigation section on page 60.
Notes to the financial statements
Assets and liabilities held at fair value

home.barclays/annualreport | Barclays Bank PLC Annual Report | 227

The notes included in this section focus on the Barclays Bank Group’s loans and advances and deposits at amortised cost, leases, property, plant and equipment and goodwill and intangible assets. Details regarding the Barclays Bank Group’s liquidity and capital position can be found on pages 115 to 126.

18 Loans and advances and deposits at amortised cost
Accounting for loans and advances and deposits held at amortised cost
Loans and advances to customers and banks, customer accounts, debt securities and most financial liabiliti es are hel d at amortised cost. That is, the
initial fair value (which is normally the amount advanced or borrowed) is adjusted for repayments and the amortisation of coupon, fees and expenses to
represent the effective interest rate of the asset or liability. Balances deferred on-balance sheet as effective interest rate adjustments are amortised to
interest income over the life of the financial instrument to which they relate.
Financial assets that are held in a business model to collect the contractual cash flows and that contain contractual terms that give rise on specified
dates to cash flows that are SPPI are measured at amortised cost. The carrying value of these financial assets at initial recognition includes any directly
attributable transaction costs. Refer to Note 1 for details of ‘solely payments of principal and interest’.
In determining whether the business model is a ‘hold to collect’ model, the objective of the business model must be to hold the financial asset to collect
contractual cash flows rather than holding the financial asset for trading or short-term profit taking purposes. While the objective of the business model
must be to hold the financial asset to collect contractual cash flows this does not mean the Barclays Bank Group is required to hold the financial assets
until maturity. When determining if the business model objective is to collect contractual cash flows the Barclays Bank Group will consider past sales
and expectations about future sales.

Loans and advances and deposits at amortised cost
| Barclays Bank Group
| 2022 | 2021
As at 31 December | £m | £m
Loans and advances at amortised cost to banks | 8,961 | 8,750
Loans and advances at amortised cost to customers | 146,243 | 117,014
Debt securities at amortised cost | 27,303 | 19,495
Total loans and advances at amortised cost | 182,507 | 145,259
Deposits at amortised cost from banks | 20,124 | 17,911
Deposits at amortised cost from customers | 271,455 | 244,917
Total deposits at amortised cost | 291,579 | 262,828

Loans and advances and deposits at amortised cost |  |
| Barclays Bank PLC
| 2022 | 2021
As at 31 December | £m | £m
Loans and advances at amortised cost to banks | 15,377 | 13,969
Loans and advances at amortised cost to customers | 186,529 | 168,665
Debt securities at amortised cost | 23,877 | 17,148
Total loans and advances at amortised cost | 225,783 | 199,782
Deposits at amortised cost from banks | 18,615 | 16,364
Deposits at amortised cost from customers | 295,280 | 270,397
Total deposits at amortised cost | 313,895 | 286,761

Notes to the financial statements
Assets at amortised cost and other investments

home.barclays/annualreport | Barclays Bank PLC Annual Report | 228

19 Property, p lant and equipment
Accounting for property, plant and equipment
The Barclays Bank Group applies IAS 16 Property Plant and Equipment and IAS 40 Investment Properties.
Property, plant and equipment is stated at cost, which includes direct and incremental acquisition costs less accumulated depreciation and provisions
for impairment, if required. Subsequent costs are capitalised if these result in enhancement of the asset.
Depreciation is provided on the depreciable amount of items of property, plant and equipment on a straight-line basis over their estimated useful
economic lives. Depreciation rates, methods and the residual values underlying the calculation of depreciation of items of property, plant and
equipment are kept under review to take account of any change in circumstances. The Barclays Bank Group uses the following annual rates in
calculating depreciation:

Annual rates in calculating depreciation | Depreciation rate
Freehold land | Not depreciated
Freehold buildings and long-leasehold property (more than 50 years to run) | 2%-3.3%
Leasehold property over the remaining life of the lease (less than 50 years to run) | Over the remaining life of the lease
Costs of adaptation of freehold and leasehold property | 6%-10%
Equipment installed in freehold and leasehold property | 6%-10%
Computers and similar equipment | 17%-33%
Fixtures and fittings and other equipment | 9%-20%

Costs of adaptation and installed equipment are depreciated over the shorter of the life of the lease or the depreciation rates noted in the table above.
Investment property
The Barclays Bank Group initially recognises investment property at cost, and subsequently at fair value at each balance sheet date, reflecting market
conditions at the reporting date. Gains and losses on remeasurement are included in the income statement.

| Barclays Bank Group
| Investment property | Property | Equipment | Right of use assets a | Total
| £m | £m | £m | £m | £m
Cost |  |  |  |  |
As at 1 January 2022 | 7 | 1,702 | 1,058 | 715 | 3,482
Additions | — | 93 | 79 | 20 | 192
Disposals b | (1) | (269) | (212) | (14) | (496)
Exchange and other movements | (1) | 98 | 114 | 60 | 271
As at 31 December 2022 | 5 | 1,624 | 1,039 | 781 | 3,449
Accumulated depreciation and impairment |  |  |  |  |
As at 1 January 2022 | — | (920) | (877) | (437) | (2,234)
Depreciation charge | — | (70) | (61) | (69) | (200)
Impairment charge | — | — | — | (13) | (13)
Disposals | — | 269 | 209 | 16 | 494
Exchange and other movements | — | (61) | (46) | (10) | (117)
As at 31 December 2022 | — | (782) | (775) | (513) | (2,070)
Net book value | 5 | 842 | 264 | 268 | 1,379
Cost |  |  |  |  |
As at 1 January 2021 | 10 | 1,619 | 987 | 688 | 3,304
Additions | — | 85 | 70 | 27 | 182
Disposals | (2) | (32) | (12) | (58) | (104)
Exchange and other movements | (1) | 30 | 13 | 58 | 100
As at 31 December 2021 | 7 | 1,702 | 1,058 | 715 | 3,482
Accumulated depreciation and impairment |  |  |  |  |
As at 1 January 2021 | — | (730) | (821) | (216) | (1,767)
Depreciation charge | — | (70) | (55) | (68) | (193)
Impairment charge | — | (108) | — | (160) | (268)
Disposals | — | 27 | 10 | 9 | 46
Exchange and other movements | — | (39) | (11) | (2) | (52)
As at 31 December 2021 | — | (920) | (877) | (437) | (2,234)
Net book value | 7 | 782 | 181 | 278 | 1,248

Notes to the financial statements
Assets at amortised cost and other investments

home.barclays/annualreport | Barclays Bank PLC Annual Report | 229

| Barclays Bank PLC
| Investment property | Property | Equipment | Right of use assets a | Total
| £m | £m | £m | £m | £m
Cost |  |  |  |  |
As at 1 January 2022 | 3 | 295 | 281 | 323 | 902
Additions | — | 8 | 19 | 6 | 33
Disposals b | (1) | (243) | (139) | (5) | (388)
Exchange and other movements | — | 1 | 18 | 7 | 26
As at 31 December 2022 | 2 | 61 | 179 | 331 | 573
Accumulated depreciation and impairment |  |  |  |  |
As at 1 January 2022 | — | (272) | (246) | (256) | (774)
Depreciation charge | — | (15) | (13) | (26) | (54)
Impairment charge | — | — | — | (13) | (13)
Disposals b | — | 243 | 139 | 5 | 387
Exchange and other movements | — | (1) | (15) | 7 | (9)
As at 31 December 2022 | — | (45) | (135) | (283) | (463)
Net book value | 2 | 16 | 44 | 48 | 110
Cost |  |  |  |  |
As at 1 January 2021 | 5 | 278 | 265 | 308 | 856
Additions | — | 4 | 12 | 1 | 17
Disposals | (1) | (6) | (2) | (4) | (13)
Exchange and other movements | (1) | 19 | 6 | 18 | 42
As at 31 December 2021 | 3 | 295 | 281 | 323 | 902
Accumulated depreciation and impairment |  |  |  |  |
As at 1 January 2021 | — | (135) | (227) | (69) | (431)
Depreciation charge | — | (15) | (15) | (28) | (58)
Impairment charge | — | (106) | — | (160) | (266)
Disposals | — | 3 | 2 | 1 | 6
Exchange and other movements | — | (19) | (6) | — | (25)
As at 31 December 2021 | — | (272) | (246) | (256) | (774)
Net book value | 3 | 23 | 35 | 67 | 128

Notes
a.Right of use (ROU) asset balances relate to Property Leases under IFRS 16. Refer to Note 20 for further details.
b.Disposals pertain to fully depreciated assets which are not in use.
Property rentals of £8m (2021: £6m) have been included in other income within the Barclays Bank Group.
The fair value of investment property is determined by reference to current market prices for similar properties, adjusted as necessary for condition and
location, or by reference to recent transactions updated to reflect current economic conditions. Discounted cash flow techniques may be employed to
calculate fair value where there have been no recent transactions, using current external market inputs such as market rents and interest rates.
Valuations are carried out by management with the support of appropriately qualified independent valuers.
20 Leases
Accounting for leases
IFRS 16 applies to all leases with the exception of licenses of intellectual property, rights held by licensing agreement within the scope of IAS 38
Intangible Assets, service concession arrangements, leases of biological assets within the scope of IAS 41 Agriculture and leases of minerals, oil, natural
gas and similar non-regenerative resources. IFRS 16 includes an accounting policy choice for a lessee to elect not to apply IFRS 16 to remaining assets
within the scope of IAS 38 Intangible Assets which the Barclays Bank Group has decided to apply.
When the Barclays Bank Group is the lessee, it is required to recognise both:
▪a lease liability, measured at the present value of remaining cash flows on the lease; and
▪a right of use (ROU) asset, measured at the amount of the initial measurement of the lease liability, plus any lease payments made prior to
commencement date, initial direct costs, and estimated costs of restoring the underlying asset to the condition required by the lease, less any lease
incentives received.
Subsequently the lease liability will increase for the accrual of interest, resulting in a constant rate of return throughout the life of the lease, and reduce
when payments are made. The right of use asset will amortise to the income statement over the life of the lease. The lease liability is remeasured when
there is a change in the one of the following:
▪future lease payments arising from a change in an index or rate;
▪the Barclays Bank Group’s estimate of the amount expected to be payable under a residual value guarantee; or
▪the Barclays Bank Group’s assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured a corresponding adjustment is made to the carrying amount of the ROU asset, or is recorded in the income
statement if the carrying amount of the ROU asset has been reduced to nil.
Notes to the financial statements
Assets at amortised cost and other investments

home.barclays/annualreport | Barclays Bank PLC Annual Report | 230

On the balance sheet, the ROU assets are included within property, plant and equipment and the lease liabilities are included within other liabilities.
The Barclays Bank Group applies the recognition exemption in IFRS 16 for leases with a term not exceeding 12 months. For these leases the lease
payments are recognised as an expense on a straight line basis over the lease term unless another systematic basis is more appropriate.
When the Barclays Bank Group is the lessor, the lease must be classified as either a finance lease or an operating lease. A finance lease is a lease which
confers substantially all the risks and rewards of the leased assets on the lessee. An operating lease is a lease where substantially all of the risks and
rewards of the leased asset remain with the lessor.
When the lease is deemed a finance lease, the leased asset is not held on the balance sheet; instead a finance lease receivable is recognised representing
the minimum lease payments receivable under the terms of the lease, discounted at the rate of interest implicit in the lease.
When the lease is deemed an operating lease, the lease income is recognised on a straight-line basis over the period of the lease unless another
systematic basis is more appropriate. The Barclays Bank Group holds the leased assets on balance sheet within property, plant and equipment.
As a Lessor
The Barclays Bank Group and Barclays Bank PLC do not have any material operating and finance leases as a lessor.
As a Lessee
The Barclays Bank Group leases various offices, branches and other premises under non-cancellable lease arrangements to meet its operational
business requirements. In some instances, the Barclays Bank Group will sublease property to third parties when it is no longer needed to meet business
requirements. Currently, the Barclays Bank Group does not have any material subleasing arrangements.
ROU asset balances relate to property leases only. Refer to Note 19 for the carrying amount of ROU assets.
The Barclays Bank Group has not recognised any expense related to short term leases during the current and previous year.

Lease liabilities | Barclays Bank Group
| 2022 | 2021
| £m | £m
As at 1 January | 495 | 515
Interest expense | 18 | 20
New leases | 18 | 38
Disposals | (4) | (45)
Cash payments | (89) | (92)
Exchange and other movements | 58 | 59
As at 31 December (see Note 22) | 496 | 495

Lease liabilities | Barclays Bank PLC
| 2022 | 2021
| £m | £m
As at 1 January | 247 | 259
Interest expense | 9 | 11
New leases | 6 | 12
Disposals | — | (8)
Cash payments | (37) | (43)
Exchange and other movements | 14 | 16
As at 31 December (see Note 22) | 239 | 247

The below table sets out a maturity analysis of undiscounted lease liabilities, showing the lease payments after the reporting date.

Undiscounted lease liabilities maturity analysis | Barclays Bank Group
| 2022 | 2021
| £m | £m
Not more than one year | 91 | 81
One to two years | 94 | 77
Two to three years | 80 | 74
Three to four years | 66 | 66
Four to five years | 66 | 60
Five to ten years | 181 | 210
Greater than ten years | 19 | 30
Total undiscounted lease liabilities as at 31 December | 597 | 598

Notes to the financial statements
Assets at amortised cost and other investments

home.barclays/annualreport | Barclays Bank PLC Annual Report | 231

Undiscounted lease liabilities maturity analysis | Barclays Bank PLC
| 2022 | 2021
| £m | £m
Not more than one year | 36 | 34
One to two years | 36 | 33
Two to three years | 35 | 32
Three to four years | 31 | 31
Four to five years | 29 | 29
Five to ten years | 119 | 134
Greater than ten years | 7 | 16
Total undiscounted lease liabilities as at 31 December | 293 | 309

In addition to the cash flows identified above, the Barclays Bank Group is exposed to:
•Variable lease payments: This variability will typically arise from either inflation index instruments or market-based pricing adjustments.
Currently, Barclays Bank Group has 41 leases (2021: 47 leases) out of the total 106 leases (2021: 110 leases) which have variable lease payment
terms based on market based pricing adjustments. Of the gross cash flows identified above, £418m (2021: £362m) is attributable to leases with
some degree of variability predominately linked to market based pricing adjustments.
Currently, Barclays B ank PLC has 21 leases (2021: 31 leases) out of the total 46 leases (2021: 53 leases) which have variable lease payment terms
based on market based pricing adjustments. Of the gross cash flows identified above, £266m (2021: £282m) is attributable to leases with some
degree of variability predominately linked to market based pricing adjustments.
•Extension and termination options: The table above represents the Barclays Bank Group’s and the Barclays Bank PLC’s best estimate of future cash
out flows for leases, including assumptions regarding the exercising of contractual extension and termination options. The above gross cash flows
have been reduced by £486m (2021: £408m) and £11m (2021: £10m) respectively for leases where the Barclays Bank Group and the Barclays Bank
PLC are highly expected to exercise an early termination option. However, there is no significant impact where the Barclays Bank Group or Barclays
Bank PLC are expected to exercise an extension option.
The Barclays Bank Group and Barclays Bank PLC currently do not have any sale and leaseback transaction (2021: £33m gain).The Barclays Bank
Group and Barclays Bank PLC does not have any restrictions or covenants imposed by the lessor on its property leases which restrict its businesses.
21 Goodwill and intangible assets
Accounting for goodwill and intangible assets
Goodwill
The carrying value of goodwill is determined in accordance with IFRS 3 Business Combinations and IAS 36 Impairment of Assets.
Goodwill arising on the acquisition of subsidiaries represents the excess of the fair value of the purchase consideration over the fair value of the Barclays
Bank Group’s share of the assets acquired and the liabilities and contingent liabilities assumed on the date of the acquisition.
Goodwill is reviewed annually for impairment, or more frequently when there are indications that impairment may have occurred. The test involves
comparing the carrying value of the cash generating unit (CGU) including goodwill with the present value of the pre-tax cash flows, discounted at a rate
of interest that reflects the inherent risks, of the CGU to which the goodwill relates, or the CGU's fair value if this is higher.
Intangible assets
Intangible assets other than goodwill are accounted for in accordance with IAS 38 Intangible Assets.
Intangible assets are initially recognised when they are separable or arise from contractual or other legal rights, the cost can be measured reliably and, in
the case of intangible assets not acquired in a business combination, where it is probable that future economic benefits attributable to the assets will
flow from their use.
For internally generated intangible assets, only costs incurred during the development phase are capitalised. Expenditure in the research phase is
expensed when it is incurred.
Intangible assets are stated at cost (which is, in the case of assets acquired in a business combination, the acquisition date fair value) less accumulated
amortisation and provisions for impairment, if any, and are amortised over their useful lives in a manner that reflects the pattern to which they
contribute to future cash flows, generally using the amortisation periods set out below:

Annual rates in calculating amortisation | Amortisation period
Goodwill | Not amortised
Internally generated software a | 12 months to 6 years
Other software | 12 months to 6 years
Customer lists | 12 months to 25 years
Licences and other | 12 months to 25 years

Note
a Exceptions to the above period relate to useful lives of certain core banking platforms that are assessed individually and, if appropriate, amortised over longer periods
ranging from 10 years to 15 years.
Notes to the financial statements
Assets at amortised cost and other investments

home.barclays/annualreport | Barclays Bank PLC Annual Report | 232

Intangible assets are reviewed for impairment when there are indications that impairment may have occurred. Intangible assets not yet available for use
are reviewed annually for impairment.

|  | Intangible assets |
| Goodwill | Internally generated software | Other software | Customer lists | Licences and other | Total
| £m | £m | £m | £m | £m | £m
Barclays Bank Group |  |  |  |  |  |
Cost |  |  |  |  |  |
As at 1 January 2022 | 326 | 1,508 | 95 | 1,339 | 876 | 4,144
Additions | — | 275 | — | 76 | 17 | 368
Disposals a | — | (427) | (13) | (12) | (33) | (485)
Exchange and other movements | 19 | 121 | 9 | 159 | 96 | 404
As at 31 December 2022 | 345 | 1,477 | 91 | 1,562 | 956 | 4,431
Accumulated amortisation and impairment |  |  |  |  |  |
As at 1 January 2022 | (68) | (966) | (52) | (1,207) | (402) | (2,695)
Disposals a | — | 427 | 13 | 12 | 33 | 485
Amortisation charge | — | (153) | (6) | (44) | (67) | (270)
Impairment charge | — | — | — | — | — | —
Exchange and other movements | — | (95) | (4) | (143) | (44) | (286)
As at 31 December 2022 | (68) | (787) | (49) | (1,382) | (480) | (2,766)
Net book value | 277 | 690 | 42 | 180 | 476 | 1,665

| Goodwill | Internally generated software | Other software | Customer lists | Licences and other | Total
| £m | £m | £m | £m | £m | £m
Barclays Bank Group |  |  |  |  |  |
Cost |  |  |  |  |  |
As at 1 January 2021 | 324 | 1,539 | 106 | 1,325 | 457 | 3,751
Additions b | — | 195 | 1 | — | 405 | 601
Disposals a | — | (148) | (12) | (5) | (2) | (167)
Exchange and other movements | 2 | (78) | 0 | 19 | 16 | (41)
As at 31 December 2021 | 326 | 1,508 | 95 | 1,339 | 876 | 4,144
Accumulated amortisation and impairment |  |  |  |  |  |
As at 1 January 2021 | (68) | (964) | (55) | (1,158) | (352) | (2,597)
Disposals a | — | 148 | 12 | 5 | 2 | 167
Amortisation charge | — | (126) | (6) | (36) | (42) | (210)
Impairment charge | — | (12) | — | — | — | (12)
Exchange and other movements | — | (12) | (3) | (18) | (10) | (43)
As at 31 December 2021 | (68) | (966) | (52) | (1,207) | (402) | (2,695)
Net book value | 258 | 542 | 43 | 132 | 474 | 1,449

Notes
a.Disposals pertain to fully amortised assets which are not in use.
b.Additions in 'Licences and other' primarily relate to new and renewed long-term partnership agreements.
Notes to the financial statements
Assets at amortised cost and other investments

home.barclays/annualreport | Barclays Bank PLC Annual Report | 233

|  | Intangible assets |
| Goodwill | Internally generated software | Other software | Customer lists | Licences and other | Total
| £m | £m | £m | £m | £m | £m
Barclays Bank PLC |  |  |  |  |  |
Cost |  |  |  |  |  |
As at 1 January 2022 | 164 | 26 | 3 | 11 | 22 | 226
Additions | — | — | — | — | 1 | 1
Disposals | — | — | — | — | — | —
Exchange and other movements | — | 1 | — | 1 | 1 | 3
As at 31 December 2022 | 164 | 27 | 3 | 12 | 24 | 230
Accumulated amortisation and impairment |  |  |  |  |  |
As at 1 January 2022 | (69) | (22) | (1) | (11) | (14) | (117)
Amortisation charge | — | (2) | — | — | (3) | (5)
Exchange and other movements | — | (1) | — | — | — | (1)
As at 31 December 2022 | (69) | (25) | (1) | (11) | (17) | (123)
Net book value | 95 | 2 | 2 | 1 | 7 | 107

| Goodwill | Internally generated software | Other software | Customer lists | Licences and other | Total
| £m | £m | £m | £m | £m | £m
Barclays Bank PLC |  |  |  |  |  |
Cost |  |  |  |  |  |
As at 1 January 2021 | 164 | 27 | 3 | 11 | 18 | 223
Additions | — | — | — | — | 4 | 4
Disposals | — | — | — | — | — | —
Exchange and other movements | — | (1) | — | — | — | (1)
As at 31 December 2021 | 164 | 26 | 3 | 11 | 22 | 226
Accumulated amortisation and impairment |  |  |  |  |  |
As at 1 January 2021 | (69) | (21) | (1) | (11) | (9) | (111)
Amortisation charge | — | (2) | — | — | (5) | (7)
Exchange and other movements | — | 1 | — | — | — | 1
As at 31 December 2021 | (69) | (22) | (1) | (11) | (14) | (117)
Net book value | 95 | 4 | 2 | — | 8 | 109

Goodwill
Goodwill is allocated to business operations according to business segments as follows:

| Barclays Bank Group
| 2022 | 2021
| £m | £m
Consumer, Cards and Payments | 277 | 258
Total net book value of goodwill | 277 | 258

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
Consumer, Cards and Payments | 95 | 95
Total net book value of goodwill | 95 | 95

2022 impairment review
The 2022 impairment review was performed during Q4 2022. A detailed assessment has been performed, with the approach and results of this analysis
set out below.
Determining the carrying value of CGUs
The carrying value for each CGU is the sum of the tangible equity, goodwill and intangible asset balances associated with that CGU.
Notes to the financial statements
Assets at amortised cost and other investments

home.barclays/annualreport | Barclays Bank PLC Annual Report | 234

The Barclays Bank Group manages the assets and liabilities of its CGUs with reference to the tangible equity of the respective businesses. That tangible
equity is derived from the level of risk weighted assets (RWAs) and capital required to be deployed in the CGU and therefore reflects its relative risk, as
well as the level of capital that management considers a market participant would be required to hold and retain to support business growth.
The goodwill held across the Barclays Bank Group has been allocated to the CGU where it originated, based upon historical records. The intangible asset
balances are allocated to the CGUs based upon their expected usage of these assets.
Cash flows
The five-year cash f lows use d in the calculation of value in use are based on the formally agreed medium-term plans approved by the Board. These are
prepared using macroeconomic assumptions which management considers reasonable and supportable, and reflect business agreed initiatives for the
forecast period.
Discount rates
IAS 36 requires that the discount rate used in a value in use calculation reflects the pre-tax rate an investor would require if they were to choose an
investment that would generate similar cash flows to those that the entity expects to generate from the asset. In determining the discount rate,
management have in previous years identified the cost of equity associated with market participants that closely resemble the Barclays Bank Group's
CGUs and adjusted them for tax to arrive at the pre-tax equivalent rate. This method assumed a static rate of tax that was applicable to the pre-tax cash
flows of the CGU. The cost of equity without adjusting for the tax rate has been used as the discount rate in the 2022 impairment assessment and
applied to the post tax cash flows of the CGU. This post-tax method incorporates the impact of changing tax rates on the cash flows and is expected to
produce the same VIU result as the pre-tax method adjusted for varying tax rates. Using the resultant VIU the equivalent pre-tax discount rates have
been calculated. The range of equivalent pre-tax discount rates applicable across the CGUs range from 14.1% to 16.0% (2021: 12.5% to 14.7%).
Terminal growth rate
The terminal growth rate is used to estimate the effect of projecting cash flows to the end of an asset’s useful economic life. It is management’s
judgement that the cash flows associated with the CGUs will grow in line with the major economies in which the Barclays Bank Group operates. The UK
inflation rate is used as an approximation for the future growth rates. The terminal growth rate used is 2.0% (2021: 2.0%).
Outcome of goodwill and intangibles review
Based on management’s plans and assumptions the value in use exceeds the carrying value of the CGUs and no impairment has been indicated by the
2022 impairment review.
Other intangible assets
Determining the estimated useful lives of intangible assets (such as those arising from contractual relationships) requires an analysis of circumstances.
The assessment of whether an asset is exhibiting indicators of impairment as well as the calculation of impairment, which requires the estimate of
future cash flows and fair values less costs to sell, also requires the preparation of cash flow forecasts and fair values for assets that may not be regularly
bought and sold.
Notes to the financial statements
Assets at amortised cost and other investments

home.barclays/annualreport | Barclays Bank PLC Annual Report | 235

The notes included in this section focus on the Barclays Bank Group’s accruals, provisions and contingent liabilities. Provisions are recognised for
present obligations arising as consequences of past events where it is probable that a transfer of economic benefit will be necessary to settle the
obligation, and it can be reliably estimated. Contingent liabilities reflect potential liabilities that are not recognised on the balance sheet.
22 Other liabilities

| Barclays Bank Group
| 2022 | 2021
| £m | £m
Accruals and deferred income | 2,973 | 2,657
Other creditors | 7,255 | 4,030
Items in the course of collection due to other banks | 55 | 67
Lease liabilities (refer to Note 20) | 496 | 495
Other liabilities | 10,779 | 7,249

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
Accruals and deferred income | 1,164 | 1,072
Other creditors | 6,548 | 3,252
Items in the course of collection due to other banks | 29 | 26
Lease liabilities (refer to Note 20) | 239 | 247
Other liabilities | 7,980 | 4,597

23 Provisions
Accounting for provisions
The Barclays Bank Group applies IAS 37 Provisions, Contingent Liabilities and Contingent Assets in accounting for non-financial liabilities.
Provisions are recognised for present obligations arising as consequences of past events where it is more likely than not that a transfer of economic
benefit will be necessary to settle the obligation, which can be reliably estimated. Provision is made for the anticipated cost of restructuring, including
redundancy costs, when an obligation exists; for example, when the Barclays Bank Group has a detailed formal plan for restructuring a business and has
raised valid expectations in those affected by the restructuring by announcing its main features or starting to implement the plan.
Critical accounting estimates and judgements
The financial reporting of provisions involves a significant degree of judgement and is complex. Identifying whether a present obligation exists and
estimating the probability, timing, nature and quantum of the outflows that may arise from past events requires judgements to be made based on the
specific facts and circumstances relating to individual events and often requires specialist professional advice. When matters are at an early stage,
accounting judgements and estimates can be difficult because of the high degree of uncertainty involved. Management continues to monitor matters as
they develop to re-evaluate on an ongoing basis whether provisions should be recognised, however there can remain a wide range of possible
outcomes and uncertainties, particularly in relation to legal, competition and regulatory matters, and as a result it is often not practicable to make
meaningful estimates even when matters are at a more advanced stage.
The complexity of such matters often requires the input of specialist professional advice in making assessments to produce estimates. Customer redress
and legal, competition and regulatory matters are areas where a higher degree of professional judgement is required. The amount that is recognised as
a provision can also be very sensitive to the assumptions made in calculating it. This gives rise to a large range of potential outcomes which require
judgement in determining an appropriate provision level. See Note 25 for more detail of legal, competition and regulatory matters.
Notes to the financial statements
Accruals, provisions, contingent liabilities and legal proceedings

home.barclays/annualreport | Barclays Bank PLC Annual Report | 236

|  |  |  | Restated b |  |  | Restated b
| Onerous contracts | Redundancy and restructuring | Undrawn contractually committed facilities and guarantees provided a | Customer redress | Legal, competition and regulatory matters | Sundry provisions | Total
| £m | £m | £m | £m | £m | £m | £m
Barclays Bank Group |  |  |  |  |  |  |
As at 1 January 2022 | 2 | 46 | 499 | 266 | 211 | 86 | 1,110
Additions | — | 59 | 133 | 846 | 422 | 49 | 1,509
Amounts utilised | (1) | (42) | — | (1,154) | (542) | (9) | (1,748)
Unused amounts reversed | (1) | (19) | (123) | (76) | (15) | (13) | (247)
Exchange and other movements | — | 1 | 23 | 164 | 37 | 9 | 234
As at 31 December 2022 | — | 45 | 532 | 46 | 113 | 122 | 858

Notes
a.Undrawn contractually committed facilities and guarantees provisions are accounted for under IFRS 9
b.2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.

|  |  |  | Restated b |  |  | Restated b
| Onerous contracts | Redundancy and restructuring | Undrawn contractually committed facilities and guarantees provided a | Customer redress | Legal, competition and regulatory matters | Sundry provisions | Total
| £m | £m | £m | £m | £m | £m | £m
Barclays Bank PLC |  |  |  |  |  |  |
As at 1 January 2022 | — | 21 | 420 | 258 | 183 | 37 | 919
Additions | — | 22 | 63 | 842 | 324 | 2 | 1,253
Amounts utilised | — | (21) | — | (1,148) | (433) | (6) | (1,608)
Unused amounts reversed | — | (7) | (97) | (73) | (8) | 8 | (177)
Exchange and other movements | — | — | 17 | 165 | 24 | (1) | 205
As at 31 December 2022 | — | 15 | 403 | 44 | 90 | 40 | 592

Notes
a Undrawn contractually committed facilities and guarantees provisions are accounted for under IFRS 9
b 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 180 for
further details.
Provisions expected to be recovered or settled within no more than 12 months after 31 December 2022 for Barclays Bank Group were £764m (2021:
£1,023m) and for Barclays Bank PLC were £560 m (2021: £881 m).
Onerous contracts
Onerous contract provisions comprise an estimate of the costs involved with fulfilling the terms and conditions of contracts net of any expected benefits
to be received.
Redundancy and restructuring
These provisions comprise the estimated cost of restructuring, including redundancy costs where an obligation exists. Additions made during the year
relate to formal restructuring plans and have either been utilised or reversed w here total costs are now expected to be lower than the original provision
amount.
Undrawn contractually committed facilities and guarantees
Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment
allowance is allocated to the drawn exposure to the extent that the allowance does not exceed the exposure as ECL is not reported separately. Any
excess is reported on the liability side of the balance sheet as a provision. For wholesale portfolios the impairment allowance on the undrawn exposure
is reported on the liability side of the balance sheet as a provision. For further information, refer to the Credit Risk section for loan commitments and
financial guarantees on pages 78 to 81.
Customer redress
Customer redress provisions comprise the estimated cost of making redress payments to customers, clients and counterparties for losses or damages
associated with inappropriate judgement in the execution of the Barclays Bank Group’s business activities.
Legal, competition and regulatory matters
The Barclays Bank Group is engaged in various legal proceedings, both in the UK and a number of other overseas jurisdictions, including the US. For
further information in relation to legal proceedings and discussion of the associated uncertainties, please refer to Note 25.
Notes to the financial statements
Accruals, provisions, contingent liabilities and legal proceedings

home.barclays/annualreport | Barclays Bank PLC Annual Report | 237

Sundry provisions
This category includes provisions that do not fit into any of the other categories, such as fraud losses and dilapidation provisions.
24 Contingent liabilities and commitments
Accounting for contingent liabilities
Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events and present obligations where the
transfer of economic resources is uncertain or cannot be reliably measured. Contingent liabilities are not recognised on the balance sheet but are
disclosed unless the likelihood of an outflow of economic resources is remote.
The following table summarises the nominal principal amount of contingent liabilities and commitments which are not recorded on-balance sheet:

| Barclays Bank Group
| 2022 | 2021
| £m | £m
Guarantees and letters of credit pledged as collateral security | 17,700 | 15,759
Performance guarantees, acceptances and endorsements | 8,100 | 7,987
Total contingent liabilities and financial guarantees | 25,800 | 23,746
Of which: Financial guarantees carried at fair value | 1,423 | 231
Documentary credits and other short-term trade related transactions | 1,748 | 1,584
Standby facilities, credit lines and other commitments | 333,229 | 282,867
Total commitments | 334,977 | 284,451
Of which: Loan commitments carried at fair value | 13,471 | 18,571

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
Guarantees and letters of credit pledged as collateral security | 52,219 | 45,289
Performance guarantees, acceptances and endorsements | 9,984 | 10,485
Total contingent liabilities and financial guarantees | 62,203 | 55,774
Of which: Financial guarantees carried at fair value | 1,423 | 231
Documentary credits and other short-term trade related transactions | 1,686 | 1,462
Standby facilities, credit lines and other commitments | 205,650 | 193,641
Total commitments | 207,336 | 195,103
Of which: Loan commitments carried at fair value | 11,939 | 17,292

Provisions for e xpected credit losses held against contingent liabilities and commitments equal £532m (2021: £499m) for Barclays Bank Group and
£403 m (2021: £420 m) for Barclays Bank PLC and are reported in Note 23.
Further details on contingent liabilities relating to legal and competition and regulatory matters can be found in Note 25.
25 Legal, competition and regulatory matters
The Barclays Bank Group faces legal, competition and regulatory challenges, many of which are beyond our control. The extent of the impact of these
matters cannot always be predicted but may materially impact our operations, financial results, condition and prospects. Matters arising from a set of
similar circumstances can give rise to either a contingent liability or a provision, or both, depending on the relevant facts and circumstances.
The recognition of provisions in relation to such matters involves critical accounting estimates and judgments in accordance with the relevant
accounting policies applicable to Note 23 Provisions. We have not disclosed an estimate of the potential financial impact or effect on the Barclays Bank
Group of contingent liabilities where it is not currently practicable to do so. Various matters detailed in this note seek damages of an unspecified
amount. While certain matters specify the damages claimed, such claimed amounts do not necessarily reflect the Barclays Bank Group’s potential
financial exposure in respect of those matters.
Investigations into certain advisory services agreements
FCA proceedings
In 2008, Barclays Bank PLC and Qatar Holdings LLC entered into two advisory service agreements (the Agreements). The Financial Conduct Authority
(FCA) conducted an investigation into whether the Agreements may have related to Barclays PLC’s capital raisings in June and November 2008 (the
Capital Raisings) and therefore should have been disclosed in the announcements or public documents relating to the Capital Raisings. In 2013, the FCA
issued warning notices (the Warning Notices) finding that Barclays PLC and Barclays Bank PLC acted recklessly and in breach of certain disclosure-
related listing rules, and that Barclays PLC was also in breach of Listing Principle 3. The financial penalty provided in the Warning Notices was £50m.
Barclays PLC and Barclays Bank PLC contested the findings. In September 2022, the FCA’s Regulatory Decisions Committee (RDC) issued Decision
Notices finding that Barclays PLC and Barclays Bank PLC breached certain disclosure-related listing rules. The RDC also found that in relation to the
disclosures made in the Capital Raising of November 2008, Barclays PLC and Barclays Bank PLC acted recklessly, and that Barclays PLC breached Listing
Principle 3. The RDC upheld the combined penalty of £50m on Barclays PLC and Barclays Bank PLC, the same penalty as in the Warning Notices.
Barclays PLC and Barclays Bank PLC have referred the RDC’s findings to the Upper Tribunal for reconsideration.
Notes to the financial statements
Accruals, provisions, contingent liabilities and legal proceedings

home.barclays/annualreport | Barclays Bank PLC Annual Report | 238

Investigations into LIBOR and other benchmarks and related civil actions
Regulators and law enforcement agencies, including certain competition authorities, from a number of governments have conducted investigations
relating to Barclays Bank PLC’s involvement in allegedly manipulating certain financial benchmarks, such as LIBOR. Various individuals and corporates in
a range of jurisdictions have threatened or brought civil actions against the Barclays Bank Group and other banks in relation to the alleged manipulation
of LIBOR and/or other benchmarks.
USD LIBOR civil actions
The majority of the USD LIBOR cases, which have been filed in various US jurisdictions, have been consolidated for pre-trial purposes in the US District
Court in the Southern District of New York (SDNY). The complaints are substantially similar and allege, among other things, that Barclays PLC, Barclays
Bank PLC, Barclays Capital Inc. (BCI) and other financial institutions individually and collectively violated provisions of the US Sherman Antitrust Act
(Antitrust Act), the US Commodity Exchange Act (CEA), the US Racketeer Influenced and Corrupt Organizations Act (RICO), the US Securities Exchange
Act of 1934 and various state laws by manipulating USD LIBOR rates.
Putative class actions and individual actions seek unspecified damages with the exception of one lawsuit, in which the plaintiffs are seeking no less than
$100m in actual damages and additional punitive damages against all defendants, including Barclays Bank PLC. Some of the lawsuits also seek trebling
of damages under the Antitrust Act and RICO. Barclays Bank PLC has previously settled certain claims. In 2022, Barclays Bank PLC also settled one
further matter. The financial impact of the settlement is not material to the Barclays Bank Group’s operating results, cash flows or financial position.
Sterling LIBOR civil actions
In 2016, two putative class actions filed in the SDNY against Barclays Bank PLC, BCI and other Sterling LIBOR panel banks alleging, among other things,
that the defendants manipulated the Sterling LIBOR rate in violation of the Antitrust Act, CEA and RICO, were consolidated. The defendants’ motion to
dismiss the claims was granted in 2018. The plaintiffs have appealed the dismissal.
Japanese Yen LIBOR civil actions
In 2012, a putative class action was filed in the SDNY against Barclays Bank PLC and other Japanese Yen LIBOR panel banks by a lead plaintiff involved in
exchange-traded derivatives and members of the Japanese Bankers Association’s Euroyen Tokyo Interbank Offered Rate (Euroyen TIBOR) panel. The
complaint alleges, among other things, manipulation of the Euroyen TIBOR and Yen LIBOR rates and breaches of the CEA and the Antitrust Act. In 2014,
the court dismissed the plaintiff’s antitrust claims, and in 2020, the court dismissed the plaintiff’s remaining CEA claims.
In 2015, a second putative class action, making similar allegations to the above class action, was filed in the SDNY against Barclays PLC, Barclays Bank
PLC and BCI. Barclays and the plaintiffs have reached a settlement of $17.75m for both actions. A final court approval hearing has been scheduled for
March 2023.
SIBOR/SOR civil action
In 2016, a putative class action was filed in the SDNY against Barclays PLC, Barclays Bank PLC, BCI and other defendants, alleging manipulation of the
Singapore Interbank Offered Rate (SIBOR) and Singapore Swap Offer Rate (SOR). The plaintiffs and remaining defendants (which includes Barclays Bank
PLC) reached a joint settlement to resolve this matter for $91m, which received final court approval in November 2022. This matter is now concluded.
The financial impact o f Barclays’ share of the joint settlement is not material to the Barclays Bank Group’s operating results, cash flows or financial
position.
ICE LIBOR civil actions
In 2019, several putative class actions were filed in the SDNY against a panel of banks, including Barclays PLC, Barclays Bank PLC, BCI, other financial
institution defendants and Intercontinental Exchange Inc. and certain of its affiliates (ICE), asserting antitrust claims that the defendants manipulated
USD LIBOR through the defendants’ submissions to ICE. These actions have been consolidated. The defendants’ motion to dismiss was granted in 2020
and the plaintiffs appealed. In February 2022, the dismissal was affirmed on appeal. The plaintiffs did not seek US Supreme Court review. This matter is
now concluded.
In August 2020, an ICE LIBOR-related action was filed by a group of individual plaintiffs in the US District Court for the Northern District of California on
behalf of individual borrowers and consumers of loans and credit cards with variable interest rates linked to USD ICE LIBOR. The plaintiffs’ motion
seeking, among other things, preliminary and permanent injunctions to enjoin the defendants from continuing to set LIBOR or enforce any financial
instrument that relies in whole or in part on USD LIBOR was denied. The defendants’ motion to dismiss the case was granted in September 2022. The
plaintiffs have filed an amended complaint, which the defendants have moved to dismiss.
Non-US benchmarks civil actions
There remains one claim, issued in 2017, against Barclays Bank PLC and other banks in the UK in connection with alleged manipulation of LIBOR.
Proceedings have also been brought in a number of other jurisdictions in Europe, Argentina and Israel relating to alleged manipulation of LIBOR and
EURIBOR. Additional proceedings in other jurisdictions may be brought in the future.
Credit Default Swap civil action
A putative antitrust class action is pending in New Mexico federal court against Barclays Bank PLC, BCI and various other financial institutions. The
plaintiffs, the New Mexico State Investment Council and certain New Mexico pension funds, allege that the defendants conspired to manipulate the
benchmark price used to value Credit Default Swap (CDS) contracts at settlement (i.e. the CDS final auction price). The plaintiffs allege violations of US
antitrust laws and the CEA, and unjust enrichment under state law. The defendants have moved to dismiss the case.
Foreign Exchange investigations and related civil actions
The Barclays Bank Group has been the subject of investigations in various jurisdictions in relation to certain sales and trading practices in the Foreign
Exchange market. Settlements were reached in various jurisdictions in connection with these investigations, including the EU and US. The financial
impact of any remaining ongoing investigations is not expected to be material to the Barclays Bank Group’s operating results, cash flows or financial
position.
Various individuals and corporates in a range of jurisdictions have threatened or brought civil actions against the Barclays Bank Group and other banks
in relation to alleged manipulation of Foreign Exchange markets.
Notes to the financial statements
Accruals, provisions, contingent liabilities and legal proceedings

home.barclays/annualreport | Barclays Bank PLC Annual Report | 239

US FX opt out civil action
In 2018, Barclays Bank PLC and BCI settled a consolidated action filed in the SDNY, alleging manipulation of Foreign Exchange markets (Consolidated FX
Action), for a total amount of $384m. Also in 2018, a group of plaintiffs, who opted out of the Consolidated FX Action, filed a complaint in the SDNY
against Barclays PLC, Barclays Bank PLC, BCI and other defendants. Some of the plaintiffs’ claims were dismissed in 2020. Barclays PLC, Barclays Bank
PLC, and BCI have reached a settlement in principle of all claims against them in the matter. The financial impact of this settlement is not material to the
Barclays Bank Group’s operating results, cash flows or financial position.
US retail basis civil action
In 2015, a putative class action was filed against several international banks, including Barclays PLC and BCI, on behalf of a proposed class of individuals
who exchanged currencies on a retail basis at bank branches (Retail Basis Claims). The SDNY has ruled that the Retail Basis Claims are not covered by
the settlement agreement in the Consolidated FX Action. The Court subsequently dismissed all Retail Basis Claims against the Barclays Bank Group and
all other defendants. The plaintiffs have filed an amended complaint.
Non-US FX civil actions
Legal proceedings have been brought or are threatened against Barclays PLC, Barclays Bank PLC, BCI and Barclays Execution Services Limited (BX) in
connection with alleged manipulation of Foreign Exchange in the UK, a number of other jurisdictions in Europe, Israel, Brazil and Australia. Additional
proceedings may be brought in the future.
The above-mentioned proceedings include two purported class actions filed against Barclays PLC, Barclays Bank PLC, BX, BCI and other financial
institutions in the UK Competition Appeal Tribunal (CAT) in 2019. The CAT refused to certify these claims in the first quarter of 2022 although the
claimants have obtained permission to appeal and judicially review the CAT’s decisions. Also in 2019, a separate claim was filed in the UK in the High
Court of Justice (High Court), and subsequently transferred to the CAT, by various banks and asset management firms against Barclays Bank PLC and
other financial institutions alleging breaches of European and UK competition laws related to FX trading. This claim has been settled as part of the
settlement in principle referred to under the US FX opt out civil action above.
Metals-related civil actions
A number of US civil complaints, each on behalf of a proposed class of plaintiffs, have been consolidated and transferred to the SDNY. The complaints
allege that Barclays Bank PLC and other members of The London Gold Market Fixing Ltd. manipulated the prices of gold and gold derivative contracts in
violation of the Antitrust Act and other federal laws. The parties reached a joint settlement to resolve this matter for $50m. The settlement received final
court approval in August 2022. This matter is now concluded. The financial impact of Barclays’ share of the joint settlement is not material to the
Barclays Bank Group’s operating results, cash flows or financial position. A separate US civil complaint by a proposed class of plaintiffs against a number
of banks, including Barclays Bank PLC, BCI and BX, alleging manipulation of the price of silver in violation of the CEA, the Antitrust Act and state
antitrust and consumer protection laws, has been dismissed as against the Barclays entities. The plaintiffs have the option to seek the court’s permission
to appeal.
Civil actions have also been filed in Canadian courts against Barclays PLC, Barclays Bank PLC, Barclays Capital Canada, Inc. and BCI on behalf of
proposed classes of plaintiffs alleging manipulation of gold and silver prices.
US residential mortgage related civil actions
There are two pending US Residential Mortgage-Backed Securities (RMBS) related civil actions arising from unresolved repurchase requests submitted
by Trustees for certain RMBS, alleging breaches of various loan-level representations and warranties (R&Ws) made by Barclays Bank PLC and/or a
subsidiary acquired in 2007. In one action, the Barclays defendants’ motion for summary judgment was granted in June 2022 and the plaintiffs’ R&W
breach claim was dismissed. The plaintiffs are appealing the decision. The other repurchase action is pending.
Barclays Bank PLC reached settlements to resolve two other repurchase actions, which have received final court approval. Payment of the settlement
amounts was completed in July 2022. These matters are now concluded. The financial impact of the settlements is not material to the Barclays Bank
Group’s operating results, cash flows or financial position.
In 2020, a civil litigation claim was filed in the New Mexico First Judicial District Court by the State of New Mexico against six banks, including BCI, on
behalf of two New Mexico state pension funds and the New Mexico State Investment Council relating to legacy RMBS purchases. As to BCI, the
complaint alleges that the funds purchased approximately $22m in RMBS underwritten by BCI. The parties have reached a joint settlement to resolve
this matter for $32.5m. The settlement was paid in April 2022. The financial impact of BCI’s share of the joint settlement is not material to the Barclays
Bank Group’s operating results, cash flows or financial position.
Government and agency securities civil actions
Treasury auction securities civil actions
Consolidated putative class action complaints filed in US federal court against Barclays Bank PLC, BCI and other financial institutions under the Antitrust
Act and state common law allege that the defendants (i) conspired to manipulate the US Treasury securities market and/or (ii) conspired to prevent the
creation of certain platforms by boycotting or threatening to boycott such trading platforms. The court dismissed the consolidated action in March
2021. The plaintiffs filed an amended complaint. The defendants’ motion to dismiss the amended complaint was granted in March 2022. The plaintiffs
are appealing this decision.
In addition, certain plaintiffs have filed a related, direct action against BCI and certain other financial institutions, alleging that defendants conspired to
fix and manipulate the US Treasury securities market in violation of the Antitrust Act, the CEA and state common law.
Supranational, Sovereign and Agency bonds civil actions
Civil antitrust actions have been filed in the SDNY and Federal Court of Canada in Toronto against Barclays Bank PLC, BCI, BX, Barclays Capital Securities
Limited and, with respect to the civil action filed in Canada only, Barclays Capital Canada, Inc. and other financial institutions alleging that the
defendants conspired to fix prices and restrain competition in the market for US dollar-denominated Supranational, Sovereign and Agency bonds.
In one of the actions filed in the SDNY, the court granted the defendants’ motion to dismiss the 'plaintiffs’ complaint. The dismissal was affirmed on
appeal; however, the district court subsequently informed the parties of a potential conflict. The matter was assigned to a new district court judge and
the plaintiffs moved to vacate the dismissal order, which was denied. The plaintiffs’ time to appeal has expired and this matter is now concluded. The
plaintiffs have voluntarily dismissed the other SDNY action. In the Federal Court of Canada action, the parties have reached a settlement in principle,
Notes to the financial statements
Accruals, provisions, contingent liabilities and legal proceedings

home.barclays/annualreport | Barclays Bank PLC Annual Report | 240

which will require court approval. The financial impact of the settlement is not expected to be material to the Barclays Bank Group’s operating results,
cash flows or financial position.
Variable Rate Demand Obligations civil actions
Civil actions have been filed against Barclays Bank PLC and BCI and other financial institutions alleging the defendants conspired or colluded to
artificially inflate interest rates set for Variable Rate Demand Obligations (VRDOs). VRDOs are municipal bonds with interest rates that reset on a
periodic basis, most commonly weekly. Two actions in state court have been filed by private plaintiffs on behalf of the states of Illinois and California.
Three putative class action complaints have been consolidated in the SDNY. In the consolidated SDNY class action, certain of the plaintiffs' claims were
dismissed in November 2020 and June 2022. In the California action, the 'plaintiffs’ claims were dismissed in June 2021. The plaintiffs have appealed the
dismissal. In the Illinois action, trial has been scheduled for August 2023.
Odd-lot corporate bonds antitrust class action
In 2020, BCI, together with other financial institutions, were named as defendants in a putative class action. The complaint alleges a conspiracy to
boycott developing electronic trading platforms for odd-lots and price fixing. The plaintiffs demand unspecified money damages. The defendants’
motion to dismiss was granted in 2021 and the plaintiffs have appealed the dismissal.
Interest rate swap and credit default swap US civil actions
Barclays PLC, Barclays Bank PLC and BCI, together with other financial institutions that act as market makers for interest rate swaps (IRS), are named as
defendants in several antitrust class actions which were consolidated in the SDNY in 2016. The complaints allege the defendants conspired to prevent
the development of exchanges for IRS and demand unspecified money damages.
In 2018, trueEX LLC filed an antitrust class action in the SDNY against a number of financial institutions including Barclays PLC, Barclays Bank PLC and
BCI based on similar allegations with respect to trueEX LLC’s development of an IRS platform. In 2017, Tera Group Inc. filed a separate civil antitrust
action in the SDNY claiming that certain conduct alleged in the IRS cases also caused the plaintiff to suffer harm with respect to the Credit Default
Swaps market. In 2018 and 2019, respectively, the court dismissed certain claims in both cases for unjust enrichment and tortious interference but
denied motions to dismiss the federal and state antitrust claims, which remain pending.
BDC Finance L.L.C.
In 2008, BDC Finance L.L.C. (BDC) filed a complaint in the Supreme Court of the State of New York (NY Supreme Court), demanding damages of
$298m, alleging that Barclays Bank PLC had breached a contract in connection with a portfolio of total return swaps governed by an ISDA Master
Agreement (the Master Agreement). Following a trial, the court ruled in 2018 that Barclays Bank PLC was not a defaulting party, which was affirmed on
appeal. In April 2021, the trial court entered judgement in favour of Barclays Bank PLC for $3.3m and as yet to be determined legal fees and costs. BDC
appealed. In January 2022, the appellate court reversed the trial court’s summary judgment decision in favour of Barclays Bank PLC and remanded the
case to the lower court for further proceedings. The parties have filed cross-motions on the scope of trial. The trial has been adjourned pending a
decision on the motions and any subsequent appeal.
In 2011, BDC’s investment advisor, BDCM Fund Adviser, LLC and its parent company, Black Diamond Capital Holdings, LLC, also sued Barclays Bank PLC
and BCI in Connecticut State Court for unspecified damages allegedly resulting from Barclays Bank PLC’s conduct relating to the Master Agreement,
asserting claims for violation of the Connecticut Unfair Trade Practices Act and tortious interference with business and prospective business relations.
This case is currently stayed.
Civil actions in respect of the US Anti-Terrorism Act
There are a number of civil actions, on behalf of more than 4,000 plaintiffs, filed in US federal courts in the US District Court in the Eastern District of
New York (EDNY) and SDNY against Barclays Bank PLC and a number of other banks. The complaints generally allege that Barclays Bank PLC and those
banks engaged in a conspiracy to facilitate US dollar-denominated transactions for the Iranian Government and various Iranian banks, which in turn
funded acts of terrorism that injured or killed the plaintiffs or the plaintiffs’ family members. The plaintiffs seek to recover damages for pain, suffering
and mental anguish under the provisions of the US Anti-Terrorism Act, which allow for the trebling of any proven damages.
The court granted the defendants’ motions to dismiss three out of the six actions in the EDNY. The plaintiffs appealed in one action and the dismissal
was affirmed in January 2023. The remaining EDNY actions are stayed. Out of the two actions in the SDNY, the court granted the defendants’ motion to
dismiss the first action. That action is stayed, and the second SDNY action is stayed pending any appeal on the dismissal of the first.
Shareholder derivative action
In November 2020, a purported Barclays shareholder filed a putative derivative action in New York state court against BCI and a number of current and
former members of the Board of Directors of Barclays PLC and senior executives or employees of the Barclays Bank Group. The shareholder filed the
claim on behalf of nominal defendant Barclays PLC, alleging that the individual defendants harmed the company through breaches of their duties,
including under the Companies Act 2006. The plaintiff seeks damages on behalf of Barclays PLC for the losses that Barclays PLC allegedly suffered as a
result of these alleged breaches. An amended complaint was filed in April 2021, which BCI and certain other defendants moved to dismiss. The motion
to dismiss was granted in April 2022. The plaintiff is appealing the decision.
Derivative transactions civil action
In 2021, Vestia, a Dutch housing association, brought a claim against Barclays Bank PLC in the UK in the High Court in relation to a series of derivative
transactions entered into with Barclays Bank PLC between 2008 and 2011, seeking damages of £329m. Barclays Bank PLC is defending the claim and
has made a counterclaim.
Timeshare loans, skilled person review, and associated matters
In August 2020, the FCA granted an application by Clydesdale Financial Services Limited (CFS), which trades as Barclays Partner Finance and houses
Barclays’ point-of-sale finance business, for a validation order with respect to certain loans to customers brokered between April 2014 and April 2016 by
Azure Services Limited (ASL), a timeshare operator, which did not, at the point of sale, hold the necessary broker licence. As a condition to the validation
order, the FCA required CFS to undertake a skilled person review of the assessment of affordability processes for the loans brokered by ASL (ASL Loans)
as well as CFS’ policies and procedures for assessing affordability and oversight of brokers more generally, and dictated a remediation methodology in
the event that ASL Loans did not pass the affordability test. The skilled person made a number of observations, some of which were adverse, about both
current and historic affordability practices as well as current oversight practices. CFS is not required to conduct a full back book review but, following a
review of certain cohorts of loans to determine historic affordability and/or broker oversight practices that may have caused customer harm, where
harm is identified, CFS’ intention is to remediate. To date, CFS has identified a number of areas for remediation, but the scoping exercise is ongoing and
Notes to the financial statements
Accruals, provisions, contingent liabilities and legal proceedings

home.barclays/annualreport | Barclays Bank PLC Annual Report | 241

remediation will only begin once the scoping exercise is complete. As at 31 December 2022, CFS booked a provision in respect of the expected
remediation for these matters of £10.4m.
Separately, and notwithstanding this, CFS decided in March 2022 to extend the proactive remediation of ASL Loans beyond those brokered between
April 2014 and April 2016 to include the full portfolio of ASL Loans brokered between 2006 and 2018. In the first quarter of 2022, an additional
customer remediation provision was recognised in relation to the remediation of the ASL Loans originated outside the April 2014 to April 2016 period.
As at 31 December 2022, the provision recognised in relation to this matter by CFS is £183m. Remediation of the full portfolio of ASL Loans started in
October 2022 and is expected to be completed in 2023.
In addition, CFS completed a review of all other legacy timeshare retailers during 2022. No concerns were identified in relation to the majority of those
retailers, but where concerns were identified, CFS’ intention is to remediate. As at 31 December 2022, the provision recognised in relation to this matter
by CFS is £96m.
Over-issuance of securities in the US
Barclays Bank PLC maintains a US shelf registration statement with the US Securities and Exchange Commission (SEC) in order to issue securities to US
investors. In May 2017, Barclays Bank PLC lost its status as a “well-known seasoned issuer” (or WKSI) as a result of an SEC settlement order involving
BCI. Due to its loss of WKSI status, Barclays Bank PLC was required to register a specified amount of securities to be issued under certain US shelf
registration statements filed with the SEC. In March 2022, executive management became aware that Barclays Bank PLC had issued securities materially
in excess of the set amount under its 2019 US shelf registration statement and subsequently became aware that securities had also been issued in
excess of the set amount under the predecessor US shelf registration statement. The securities that were over-issued included structured notes and
exchange traded notes (ETNs). Securities issued in excess of the amount registered were considered to be “unregistered securities” for the purposes of
US securities laws, with certain purchasers of those securities having a right to recover, upon the tender of such security to Barclays Bank PLC, the
consideration paid for such security with interest, less the amount of any income received, or to recover damages from Barclays Bank PLC if the
purchaser sold the security at a loss (the Rescission Price). Barclays Bank PLC commenced its rescission offer on 1 August 2022, by which Barclays Bank
PLC offered to repurchase the relevant affected securities for the Rescission Price (the Rescission Offer). The Rescission Offer expired on 12 September
2022.
In September 2022, the SEC announced the resolution of its investigation of Barclays PLC and Barclays Bank PLC relating to the over-issuance of
securities by Barclays Bank PLC under certain of its US shelf registration statements. Pursuant to the terms of the resolution, Barclays PLC and Barclays
Bank PLC paid in the fourth quarter of 2022 a combined penalty of $200m (£165m 1), without admitting or denying the SEC’s findings. The SEC found
that the independent Rescission Offer made by Barclays Bank PLC to holders of the relevant over-issued securities satisfied its requirements for
disgorgement and related prejudgment interest.
The Barclays Bank Group is engaged with, and responding to inquiries and requests for information from, various other regulators who may seek to
impose fines, penalties and/or other sanctions as a result of this matter. Furthermore, Barclays Bank PLC and/or its affiliates may incur costs and
liabilities in relation to private civil claims which have been filed and may face other potential private civil claims, class actions or other enforcement
actions in relation to this matter. By way of example, in September 2022, a purported class action claim was filed in the US District Court in Manhattan
seeking to hold Barclays PLC and former and current executives responsible for declines in the prices of its American depositary receipts, which the
plaintiffs claim occurred as a result of alleged misstatements and omissions in its public disclosures; and in February 2023, a claim was brought in a
New York federal court by holders of a series of ETNs alleging that Barclays’ failure to disclose that these ETNs were unregistered securities misled
investors and that, as a result, Barclays is liable for the holders’ alleged losses following the suspension of further sales and issuances of such series of
ETNs.
Following completion of the R escission Offer on 12 September 2022, Barclays utilised a provision of £1,008m in settlement of valid structured note
claims and paid a monetary penalty of $200m (£165m 1) to th e SEC. A contingent liability exists in relation to civil claims or any further enforcement
actions taken against Barclays Bank PLC and/or its affiliates, but Barclays Bank PLC is unable to assess the likelihood of liabilities that may arise out of
such claims or actions.
Any liabilities, claims or actions in connection with the over-issuance of securities under Barclays Bank PLC’s US shelf registration statements could have
an adverse effect on Barclays Bank PLC’s and the Barclays Bank Group’s business, financial condition, results of operations and reputation as a frequent
issuer in the securities markets.
Investigation into the use of unapproved communications platforms
In September 2022, the SEC and the Commodity Futures Trading Commission (CFTC) announced settlements with a number of financial institutions,
including Barclays Bank PLC and BCI, of financial industry-wide investigations regarding compliance with record-keeping obligations in connection with
business-related communications sent over unapproved electronic messaging platforms. The SEC and the CFTC found that Barclays Bank PLC and BCI
failed to comply with their respective record-keeping rules, where such communications were sent or received by employees over electronic messaging
platforms that had not been approved by the bank for business use by employees. As part of the settlement, in the third quarter of 2022, Barclays Bank
PLC and BCI paid a combined $125m civil monetary penalty to the SEC and a $75m civil monetary penalty to the CFTC. There are also non-financial
components to the settlements, including the retention of an independent compliance consultant and certain ongoing undertakings. This matter is now
concluded.
HM Revenue & Customs (HMRC) assessments concerning UK Value Added Tax
In 2018, HMRC issued notices that have the effect of removing certain overseas subsidiaries that have operations in the UK from Barclays’ UK VAT
group, in which group supplies between members are generally free from VAT. The notices have retrospective effect and correspond to assessments of
£181m (inclusive of interest), of which Barclays would expect to attribute an amount of approximately £128m to Barclays Bank UK PLC and £53m to
Barclays Bank PLC. HMRC’s decision has been appealed to the First Tier Tribunal (Tax Chamber).
Local authority civil actions concerning LIBOR
Following settlement by Barclays Bank PLC of various governmental investigations concerning certain benchmark interest rate submissions referred to
above in ‘Investigations into LIBOR and other benchmarks and related civil actions’, in the UK, certain local authorities brought claims in 2018 against
Barclays Bank PLC and Barclays Bank UK PLC asserting that they entered into loans between 2006 and 2008 in reliance on misrepresentations made by
Barclays Bank PLC in respect of its conduct in relation to LIBOR. Barclays Bank PLC and Barclays Bank UK PLC were successful in their applications to
strike out the claims. The claims have been settled on terms such that the parties have agreed not to pursue these claims further and to bear their own
costs. The financial impact of the settlements is not material to the Barclays Bank Group's operating results, cash flows or financial position.
Note
1 Exchange rate USD/GBP 1.22 as at 30 June 2022
Notes to the financial statements
Accruals, provisions, contingent liabilities and legal proceedings

home.barclays/annualreport | Barclays Bank PLC Annual Report | 242

FCA investigation into transaction monitoring
The FCA has been investigating Barclays’ compliance with UK money laundering regulations and the FCA’s rules and Principles for Businesses in an
investigation which is focussed on aspects of Barclays’ transaction monitoring in relation to certain business lines now in Barclays Bank UK PLC. Barclays
has been co-operating with the investigation and responding to information requests.
General
The Barclays Bank Group is engaged in various other legal, competition and regulatory matters in the UK, the US and a number of other overseas
jurisdictions. It is subject to legal proceedings brought by and against the Barclays Bank Group which arise in the ordinary course of business from time
to time, including (but not limited to) disputes in relation to contracts, securities, debt collection, consumer credit, fraud, trusts, client assets,
competition, data management and protection, intellectual property, money laundering, financial crime, employment, environmental and other
statutory and common law issues.
The Barclays Bank Group is also subject to enquiries and examinations, requests for information, audits, investigations and legal and other proceedings
by regulators, governmental and other public bodies in connection with (but not limited to) consumer protection measures, compliance with legislation
and regulation, wholesale trading activity and other areas of banking and business activities in which the Barclays Bank Group is or has been engaged.
The Barclays Bank Group is cooperating with the relevant authorities and keeping all relevant agencies briefed as appropriate in relation to these matters
and others described in this note on an ongoing basis.
At the present time, Barclays Bank PLC does not expect the ultimate resolution of any of these other matters to have a material adverse effect on its
financial position. However, in light of the uncertainties involved in such matters and the matters specifically described in this note, there can be no
assurance that the outcome of a particular matter or matters (including formerly active matters or those matters arising after the date of this note) will
not be material to Barclays Bank PLC’s results, operations or cash flows for a particular period, depending on, among other things, the amount of the
loss resulting from the matter(s) and the amount of profit otherwise reported for the reporting period.
Notes to the financial statements
Accruals, provisions, contingent liabilities and legal proceedings

home.barclays/annualreport | Barclays Bank PLC Annual Report | 243

The notes included in this section focus on the Barclays Bank Group’s loan capital and shareholders’ equity including issued share capital, retained
earnings, other equity balances and interests of minority shareholders in our subsidiary entities (non-controlling interests). For more information on
capital management and how the Barclays Bank Group maintains sufficient capital to meet our regulatory requirements refer to pages 61 to 62.
26 Subordinated liabilities
Accounting for subordinated liabilities
Subordinated liabilities are measured at amortised cost using the effective interest method under IFRS 9, unless they are irrevocably designated at fair
value through profit or loss at initial recognition because such designation eliminates or significantly reduces an accounting mismatch. Refer to Note 15
for details about accounting for liabilities designated at fair value through profit or loss.

| Barclays Bank Group
| 2022 | 2021
| £m | £m
At amortised cost |  |
As at 1 January | 32,185 | 32,005
Issuances | 15,381 | 9,099
Redemptions | (8,367) | (7,241)
Other | (946) | (1,678)
As at 31 December | 38,253 | 32,185

Designated at fair value (Note 15) | 521 | 483
Total subordinated liabilities | 38,774 | 32,668

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
At amortised cost |  |
As at 1 January | 31,875 | 31,852
Issuances | 14,904 | 8,788
Redemptions | (8,104) | (7,095)
Other | (1,019) | (1,670)
As at 31 December | 37,656 | 31,875

Designated at fair value (Note 15) | 521 | 483
Total subordinated liabilities | 38,177 | 32,358

Issuances of £15,381m comprise £14,904m intra-group loans from Barclays PLC and £317m USD Floating Rate Notes, £89m ZAR Floating Rate Notes,
£42m EUR Floating Rate Notes and £29m JPY Floating Rate Notes issued externally by Barclays Bank PLC subsidiaries.
Redemptions of £8,367m comprise £5,734m intra-group loans from Barclays PLC, £2,370m notes issued externally by Barclays Bank PLC, £175m USD
Floating Rate Notes and £88m USD Fixed Rate Notes issued externally by a Barclays Bank PLC subsidiaries. £2,370m notes issued externally by Barclays
Bank PLC comprise £1,275m USD 7.625% Fixed Rate Contingent Capital Notes, £838m EUR 6.625% Fixed Rate Subordinated Notes, £147m USD 6.86%
Callable Perpetual Core Tier One Notes, £42m EUR Subordinated Floating Rate Notes, £35m GBP 5.3304% Step-up Callable Perpetual Reserve Capital
Ins truments, £21m GBP Undated Floating Rate Primary Capital Notes Series 3 and £12m GBP 6% Callable Perpetual Core Tier One No tes.
Other movements predominantly comprise foreign exchange movements and fair value hedge adjustments.
Subordinated liabilities include accrued interest and comprise undated and dated subordinated liabilities as follows:

| Barclays Bank Group
| 2022 | 2021
| £m | £m
Undated subordinated liabilities | 538 | 795
Dated subordinated liabilities | 38,236 | 31,873
Total subordinated liabilities | 38,774 | 32,668

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
Undated subordinated liabilities | 538 | 796
Dated subordinated liabilities | 37,639 | 31,562
Total subordinated liabilities | 38,177 | 32,358

None of the Barclays Bank Group’s or Barclays Bank PLC's sub ordinated liabilities are secured.
Notes to the financial statements
Capital instruments, equity and reserves

home.barclays/annualreport | Barclays Bank PLC Annual Report | 244

Undated subordinated liabilities |  | Barclays Bank Group
|  | 2022 | 2021
| Initial call date | £m | £m
Barclays Bank PLC externally issued subordinated liabilities |  |  |
Tier One Notes (TONs) |  |  |
6% Callable Perpetual Core Tier One Notes a | 2032 | — | 15
6.86% Callable Perpetual Core Tier One Notes (USD 179m) a | 2032 | — | 194
Reserve Capital Instruments (RCIs) |  |  |
5.3304% Step-up Callable Perpetual Reserve Capital Instruments a | 2036 | — | 51
Undated Notes |  |  |
6.125% Undated Subordinated Notes | 2027 | 34 | 39
Junior Undated Floating Rate Notes (USD 38m) | Any interest payment date | 32 | 28
Undated Floating Rate Primary Capital Notes Series 1 (USD 167m) | Any interest payment date | 102 | 90
Undated Floating Rate Primary Capital Notes Series 2 (USD 295m) | Any interest payment date | 210 | 189
Undated Floating Rate Primary Capital Notes Series 3 | Any interest payment date | — | 21
Bonds |  |  |
9% Permanent Interest Bearing Capital Bonds (GBP 40m) | At any time | 40 | 42
Loans |  |  |
5.03% Reverse Dual Currency Undated Subordinated Loan (JPY 8,000m) | 2028 | 49 | 51
5% Reverse Dual Currency Undated Subordinated Loan (JPY 12,000m) | 2028 | 71 | 75
Total undated subordinated liabilities |  | 538 | 795

Undated subordinated liabilities |  | Barclays Bank PLC
|  | 2022 | 2021
| Initial call date | £m | £m
Barclays Bank PLC externally issued subordinated liabilities |  |  |
Tier One Notes (TONs) |  |  |
6% Callable Perpetual Core Tier One Notes a | 2032 | — | 15
6.86% Callable Perpetual Core Tier One Notes (USD 179m)a | 2032 | — | 194
Reserve Capital Instruments (RCIs) |  |  |
5.3304% Step-up Callable Perpetual Reserve Capital Instruments a | 2036 | — | 51
Undated Notes |  |  |
6.125% Undated Subordinated Notes | 2027 | 34 | 40
Junior Undated Floating Rate Notes (USD 38m) | Any interest payment date | 32 | 28
Undated Floating Rate Primary Capital Notes Series 1 (USD 167m) | Any interest payment date | 102 | 90
Undated Floating Rate Primary Capital Notes Series 2 (USD 295m) | Any interest payment date | 210 | 189
Undated Floating Rate Primary Capital Notes Series 3 | Any interest payment date | — | 21
Bonds |  |  |
9% Permanent Interest Bearing Capital Bonds (GBP 40m) | At any time | 40 | 42
Loans |  |  |
5.03% Reverse Dual Currency Undated Subordinated Loan (JPY 8,000m) | 2028 | 49 | 51
5% Reverse Dual Currency Undated Subordinated Loan (JPY 12,000m) | 2028 | 71 | 75
Total undated subordinated liabilities |  | 538 | 796

Note
a The GBP 6% Callable Perpetual Core Tier One Notes, U SD 6.86% Callable Perpetual Core Tier O ne Notes and GBP 5.3304% Step-up Callable Perpetual Reserve Capital
Instruments were redeemed by exercising a regulatory call option in 2022.
Undated subordinated liabilities
Undated subordinated liabilities are issued by Barclays Bank PLC and its subsidiaries for the development and expansion of their businesses and to
strengthen their capital bases. The principal terms of the undated subordinated liabilities are described below:
Subordination
All undated subordinated liabilities rank behind the claims against the bank of depositors and other unsecured unsubordinated creditors and holders of
dated subordinated liabilities in the following order: Junior Undated Floating Rate Notes; followed by other issues of Undated Notes, Bonds and Loans.
Interest
All undated subordinated liabilities bear a fixed rate of interest until the initial call date, with the exception of the 9% Bonds which are fixed for the life of
the issue, and the Junior and Series 1 and Series 2 Undated Notes which are floating rate at rates fixed periodically in advance based on the related
market rate.
Notes to the financial statements
Capital instruments, equity and reserves

home.barclays/annualreport | Barclays Bank PLC Annual Report | 245

After the initial call date, in the event that they are not redeemed, the 6.125% Undated Notes will bear interest at rates fixed periodically in advance for
five-year periods based on market rates. All other undated subordinated liabilities will bear interest at rates fixed periodically in advance based on
market rates.
Payment of interest
Apart from the Junior Undated Floating Rate Notes, Barclays Bank PLC is not obliged to make a payment of interest on its Undated Notes, Bonds and
Loans if, in the preceding six months, a dividend has not been declared or paid on any class of shares of Barclays PLC or, in certain cases, any class of
preference shares of Barclays Bank PLC. Interest not paid becomes payable in each case if such a dividend is subsequently paid or in certain other
circumstances. During the year, Barclays Bank PLC paid interest on each of its Undated Notes, Bonds and Loans.
No payment of principal or any interest may be made unless Barclays Bank PLC satisfies a specified solvency test.
Repayment
All undated subordinated liabilities are repayable at the option of Barclays Bank PLC generally in whole at the initial call date and on any subsequent
coupon or interest payment date or in the case of the 6.125% Undated Notes on any fifth anniversary after the initial call date. In addition, each issue of
undated subordinated liabilities is repayable, at the option of Barclays Bank PLC, in whole for certain tax reasons, either at any time, or on an interest
payment date. There are no events of default except non-payment of principal or mandatory interest. Any repayments require the prior consent of the
PRA.
Other
All issues of undated subordinated liabilities are non-convertible.

Dated subordinated liabilities |  |  | Barclays Bank Group
|  |  | 2022 | 2021
| Initial call date | Maturity date | £m | £m
Barclays Bank PLC externally issued subordinated liabilities |  |  |  |
7.625% Contingent Capital Notes (USD 3,000m) |  | 2022 | — | 1,159
6.625% Fixed Rate Subordinated Notes (EUR 1,000m) |  | 2022 | — | 889
Subordinated Floating Rate Notes (EUR 50m) |  | 2022 | — | 42
Subordinated Floating Rate Notes (EUR 50m) |  | 2023 | 44 | 42
5.75% Fixed Rate Subordinated Notes |  | 2026 | 280 | 322
5.4% Reverse Dual Currency Subordinated Loan (JPY 15,000m) |  | 2027 | 93 | 97
6.33% Subordinated Notes (GBP 50m) |  | 2032 | 46 | 59
Subordinated Floating Rate Notes (EUR 68m) |  | 2040 | 60 | 57
External issuances by other subsidiaries |  | 2032 | 573 | 311
Barclays Bank PLC notes issued intra-group to Barclays PLC |  |  |  |
2% Fixed Rate Subordinated Callable Notes (EUR 1,500) | 2023 | 2028 | 1,354 | 1,288
3.75% Fixed Rate Resetting Subordinated Callable Notes (SGD 200m) | 2025 | 2030 | 120 | 113
5.20% Fixed Rate Subordinated Notes (USD 1,367m) |  | 2026 | 1,051 | 1,037
1.125% Fixed Rate Resetting Subordinated Callable Notes (EUR 1,000m) | 2026 | 2031 | 794 | 831
4.836% Fixed Rate Subordinated Callable Notes (USD 1,200m) | 2027 | 2028 | 931 | 937
8.407% Fixed Rate Resetting Subordinated Callable Loan (GBP 1,000m) | 2027 | 2032 | 1,009 | —
5.088% Fixed-to-Floating Rate Subordinated Callable Notes (USD 1,300m) | 2029 | 2030 | 966 | 1,005
7.437% Fixed Rate Resetting Subordinated Callable Notes (USD 2,000m) | 2032 | 2033 | 1,689 | —
5.262% Fixed Rate Resetting Subordinated Callable Notes (EUR 1,250 m) | 2033 | 2034 | 1,066 | —
3.811% Fixed Rate Resetting Subordinated Callable Notes (USD 1,000m) | 2041 | 2042 | 641 | 778
5.25% Fixed Rate Subordinated Notes (USD 827m) |  | 2045 | 488 | 618
4.95% Fixed Rate Subordinated Notes (USD 1,250m) |  | 2047 | 174 | 896
Floating Rate Subordinated Notes (USD 456m) |  | 2047 | 385 | 341
Barclays Bank PLC intra-group loans from Barclays PLC |  |  |  |
Various Fixed Rate Subordinated Loans |  |  | 8,042 | 7,184
Various Subordinated Floating Rate Loans |  |  | 677 | 646
Various Fixed Rate Subordinated Callable Loans |  |  | 16,105 | 11,013
Various Subordinated Floating Rate Callable Loans |  |  | 1,127 | 1,725
Zero Coupon Callable Loans |  | 2052 | 521 | 483
Total dated subordinated liabilities |  |  | 38,236 | 31,873

Notes to the financial statements
Capital instruments, equity and reserves

home.barclays/annualreport | Barclays Bank PLC Annual Report | 246

Dated subordinated liabilities |  |  | Barclays Bank PLC
|  |  | 2022 | 2021
| Initial call date | Maturity date | £m | £m
Barclays Bank PLC externally issued subordinated liabilities |  |  |  |
7.625% Contingent Capital Notes (USD 3,000m) |  | 2022 | — | 1,158
6.625% Fixed Rate Subordinated Notes (EUR 1,000m) |  | 2022 | — | 889
Subordinated Floating Rate Notes (EUR 50m) |  | 2022 | — | 42
Subordinated Floating Rate Notes (EUR 50m) |  | 2023 | 44 | 42
5.75% Fixed Rate Subordinated Notes |  | 2026 | 280 | 322
5.4% Reverse Dual Currency Subordinated Loan (JPY 15,000m) |  | 2027 | 93 | 97
6.33% Subordinated Notes (GBP 50m) |  | 2032 | 46 | 59
Subordinated Floating Rate Notes (EUR 68m) |  | 2040 | 60 | 57
Barclays Bank PLC notes issued intra-group to Barclays PLC |  |  |  |
2% Fixed Rate Subordinated Callable Notes (EUR 1,500m) | 2023 | 2028 | 1,354 | 1,288
3.75% Fixed Rate Resetting Subordinated Callable Notes (SGD 200m) | 2025 | 2030 | 120 | 113
5.20% Fixed Rate Subordinated Notes (USD 1,367m) |  | 2026 | 1,051 | 1,037
1.125% Fixed Rate Resetting Subordinated Callable Notes (EUR 1,000m) | 2026 | 2031 | 794 | 831
4.836% Fixed Rate Subordinated Callable Notes (USD 1,200m) | 2027 | 2028 | 931 | 937
8.407% Fixed Rate Resetting Subordinated Callable Loan (GBP 1,000m) | 2027 | 2032 | 1,009 | —
5.088% Fixed-to-Floating Rate Subordinated Callable Notes (USD 1,300m) | 2029 | 2030 | 966 | 1,005
7.437% Fixed Rate Resetting Subordinated Callable Notes (USD 2,000m) | 2032 | 2033 | 1,689 | —
5.262% Fixed Rate Resetting Subordinated Callable Notes (EUR 1,250m) | 2033 | 2034 | 1,066 | —
3.811% Fixed Rate Resetting Subordinated Callable Notes (USD 1,000m) | 2041 | 2042 | 641 | 778
5.25% Fixed Rate Subordinated Notes (USD 827m) |  | 2045 | 488 | 618
4.95% Fixed Rate Subordinated Notes (USD1,250m) |  | 2047 | 174 | 896
Floating Rate Subordinated Notes (USD 456m) |  | 2047 | 385 | 341
Barclays Bank PLC intra-group loans from Barclays PLC |  |  |  |
Various Fixed Rate Subordinated Loans |  |  | 8,018 | 7,183
Various Subordinated Floating Rate Loans |  |  | 677 | 646
Various Fixed Rate Subordinated Callable Loans |  |  | 16,105 | 11,015
Various Subordinated Floating Rate Callable Loans |  |  | 1,127 | 1,725
Zero Coupon Callable Notes |  | 2052 | 521 | 483
Total dated subordinated liabilities |  |  | 37,639 | 31,562

Dated subordinated liabilities
Dated subordinated liabilities are issued by Barclays Bank PLC and its subsidiaries for the development and expansion of their businesses and to
strengthen their respective capital bases. The principal terms of the dated subordinated liabilities are described below:
Currency and maturity
In addition to the individual dated subordinated liabilit ies listed in the Barclays Bank Group table, th e £26,472m (2021: £21,051m) of intra-group loans
is made up of various fixed, fixed to floating rate, floating and zero coupon loans from Barclays PLC with notional amounts denominated in USD
22,182m, EUR 7,325m, GBP 250m, JPY 252,600m, AUD 2,315m, SEK 500m, NOK 970m, CAD 450m and CHF 435m, with maturities ranging from 2023
to 2052. Certain intra-group loans have a call date one year prior to their maturity.
Subordination
All dated subordinated liabilities, both externally issued and issued intra-group to Barclays PLC, rank behind the claims against Barclays Bank PLC of
depositors and other unsecured unsubordinated creditors but before the claims of the undated subordinated liabilities and the holders of Barclays Bank
PLC equity. The Barclays Bank PLC intra-group loans from Barclays PLC rank pari passu amongst themselves but ahead of the Barclays Bank PLC notes
issued intra-group to Barclays PLC and the Barclays Bank PLC externally issued subordinated liabilities. The external dated subordinated liabilities issued
by subsidiaries are similarly subordinated as the external subordinated liabilities issued by Barclays Bank PLC.
Interest
Interest on floating rate notes and loans is set by reference to market rates at the time of issuance and fixed periodically in advance, based on the related
market rates.
Interest on fixed rate notes and loans is set by reference to market rates at the time of issuance and fixed until maturity.
Interest on fixed rate callable notes and loans is set by reference to market rates at the time of issuance and fixed until the call date or maturity as
applicable. After the call date (where relevant), in the event that the notes or loans are not redeemed, the interest rate will be re-set to either a fixed or
floating rate until maturity based on market rates.
No interest is paid on zero coupon notes.
Notes to the financial statements
Capital instruments, equity and reserves

home.barclays/annualreport | Barclays Bank PLC Annual Report | 247

Repayment
Those subordinated liabilities with a call date are repayable at the option of Barclays Bank PLC on such call date in accordance with the conditions
governing the respective debt obligations, some in whole or in part, and some only in whole, or otherwise on maturity. The remaining dated
subordinated liabilities outstanding at 31 December 2022 are redeemable only on maturity, subject, in particular cases, to provisions allowing an early
redemption in the event of certain changes in tax law or to certain changes in legislation or regulations.
Any repayments prior to maturity may require, in the case of Barclays Bank PLC, the prior consent of th e PRA or BoE or, in th e case of the overseas
issues, the consent of the local regulator for that jurisdiction and of the PRA in certain circumstances.
There are no committed facilities in existence at the balance sheet date which permit the refinancing of debt beyond the date of maturity.
27 Ordinary shares, preference shares and other equity

Called up share capital, allotted and fully paid and other equity instruments |  |  |  |  |
| Barclays Bank Group and Barclays Bank PLC | Barclays Bank Group | Barclays Bank PLC
| Ordinary share capital | Preference share capital | Total share capital | Other equity instruments | Other equity instruments
| £m | £m | £m | £m | £m
As at 1 January 2022 | 2,342 | 6 | 2,348 | 9,693 | 14,400
AT1 securities issuance | — | — | — | 3,134 | 3,134
AT1 securities redemption | — | — | — | (2,136) | (2,136)
As at 31 December 2022 | 2,342 | 6 | 2,348 | 10,691 | 15,398
As at 1 January 2021 | 2,342 | 6 | 2,348 | 8,621 | 13,328
AT1 securities issuance | — | — | — | 1,072 | 1,072
As at 31 December 2021 | 2,342 | 6 | 2,348 | 9,693 | 14,400

Ordinary shares
The issued ordinary share capital of Barclays Bank PLC, as at 31 December 2022, comprised 2,342m (2021: 2,342m) ordinary shares of £1 each.
Preference shares
The issued preference share capital of Barclays Bank PLC, as at 31 December 2022, comprised 31,856 Euro Preference Shares of €100 each (2021:
31,856) an d 58,133 US Dollar Preference Shares of $100 each (2021: 58,133). 1,000 Sterling Preference Shares of £1 each were redeemed during 2022.
Ordinary share capital and preference share capital constitutes 100% (2021: 100%) of total share capital issued.
Euro Preference Shares
140,000 Euro non-cumulative callable preference shares of €100 each (the Euro Preference Shares) were issued on 15 March 2005 for a consideration
of €1,383.3m (£966.7m), of which the nominal value was €14m and the balance was share premium. The Euro Preference Shares entitled the holders
thereof to receive Euro non-cumulative cash dividends out of distributable profits of Barclays Bank PLC, annually at a fixed rate of 4.75% per annum on
the amount of €10,000 per preference share until 15 March 2020, and since 15 March 2020 quarterly at a rate reset quarterly equal to 0.71% per
annum above the Euro interbank offered rate for three-month Euro deposits. The board of directors of Barclays Bank PLC may resolve, in its absolute
discretion, not to pay in full, or at all, the dividend on the Euro Preference Shares in respect of a particular dividend period.
The Euro Preference Shares are redeemable at the option of Barclays Bank PLC, in whole but not in part only, on each dividend payment date at €10,000
per share plus any dividends accrued for the then current dividend period to the date fixed for redemption.
US Dollar Preference Shares
100,000 US Dollar non-cumulative callable preference shares of $100 each (the US Dollar Preference Shares), represented by 100,000 American
Depositary Shares, Series 1, were issued on 8 June 2005 for a consideration of $995.4m (£548.1m), of which the nominal value was $10m and the
balance was share premium. The US Dollar Preference Shares entitle the holders thereof to receive US Dollar non-cumulative cash dividends out of
distributable profits of Barclays Bank PLC, semi-annually at a fixed rate of 6.278% per annum on the amount of $10,000 per preference share until 15
December 2034, and thereafter quarterly at a rate reset quarterly equal to 1.55% per annum above the London interbank offered rate for three-month
US Dollar deposits. The board of directors of Barclays Bank PLC may resolve, for any reason and in its absolute discretion, not to declare or pay in full or
in part any dividends on the US Dollar Preference Shares in respect of a particular dividend period.
The US Dollar Preference Shares are redeemable at the option of Barclays Bank PLC, in whole but not in part only, on 15 December 2034, and on each
dividend payment date thereafter at $10,000 per share plus any dividends accrued for the then current dividend period to the date fixed for redemption.
No redemption or purchase of any Euro Preference Shares and US Dollar Preference Shares (together, the Preference Shares) may be made by Barclays
Bank PLC without the prior consent of the PRA and any such redemption will be subject to the Companies Act 2006 and the Articles of Barclays Bank
PLC.
On a winding-up of Barclays Bank PLC or other return of capital (other than a redemption or purchase of shares of Barclays Bank PLC, or a reduction of
share capital), a holder of Preference Shares will rank in the application of assets of Barclays Bank PLC available to shareholders: (1) junior to the holder
of any shares of Barclays Bank PLC in issue ranking in priority to the Preference Shares; (2) equally in all respects with holders of other preference shares
and any other shares of Barclays Bank PLC in issue ranking pari passu with the Preference Shares; and (3) in priority to the holders of ordinary shares
and any other shares of Barclays Bank PLC in issue ranking junior to the Preference Shares.
Notes to the financial statements
Capital instruments, equity and reserves

home.barclays/annualreport | Barclays Bank PLC Annual Report | 248

Subject to such ranking, in such event, holders of the P reference Shares will be entitled to receive out of assets of Barclays Bank PLC available for
distributions to shareholders, liquidating distributions in the amount of €10,000 per Euro Preference Share and $10,000 per US Dollar Preference Share,
plus, in each case, an amount equal to the accrued dividend for the then current dividend period to the date of the commencement of the winding-up or
other such return of capital.
If a dividend is not paid in full on any preference shares on any dividend payment date, then a dividend restriction shall apply. This dividend restriction
will mean that neither Barclays Bank PLC nor Barclays PLC may (a) declare or pay a dividend (other than payment by Barclays PLC of a final dividend
declared by its shareholders prior to the relevant dividend payment date, or a dividend paid by Barclays Bank PLC to Barclays PLC) on any of their
respective ordinary shares, other preference shares or other share capital or (b) redeem, purchase, reduce or otherwise acquire any of their respective
share capital, other than shares of Barclays Bank PLC held by Barclays PLC or a wholly owned subsidiary, until the earlier of: (1) the date on which
Barclays Bank PLC next declares and pays in full a preference share dividend; and (2) the date on or by which all the preference shares are redeemed in
full or purchased by Barclays Bank PLC.
Holders of the P reference Shares are not entitled to receive notice of, or to attend, or vote at, any general meeting of Barclays Bank PLC. Barclays Bank
PLC is not permitted to create a class of shares ranking as regards participation in the profits or assets of Barclays Bank PLC in priority to the preference
shares, save with the sanction of a special resolution of a separate general meeting of the holders of the Preference Shares (requiring a majority of not
less than three-fourths of the holders of the Preference Shares voting at the separate general meeting) or with the consent in writing of the holders of
three-fourths of the Preference Shares.
Except as described above, the holders of the Preference Shares have no right to participate in the surplus assets of Barclays Bank PLC.
Other equity instruments
Other equity instruments issued by Barclays Bank PLC of £15,398m (2021: £14,400m) include AT1 securities issued to Barclays PLC and borrowings of
$6bn from a wholly-owned, indirect subsidiary of Barclays Bank PLC. As a result, the other equity instruments balance recorded by Barclays Bank Group
is £10,691m (2021: £9,693m).
The borrowings of $6bn from a wholly-owned, indirect subsidiary of Barclays Bank PLC have been recorded as equity since, under their terms, interest
payments are non cumulative and discretionary whilst repayment of principal is perpetually deferrable by Barclays Bank PLC. Should Barclays Bank PLC
make a discretionary dividend payment on its ordinary shares in the six months preceding the date of an interest payment, it will be obliged to make
that interest payment. In 2022, interest paid on these borrowings was £250m (2021: £164m).
Barclays PLC uses funds from its own market issuance of AT1 securities to purchase AT1 securities from the Barclays Bank Group. The AT1 securities
are perpetual securities with no fixed maturity and are structured to qualify as AT1 instruments under prevailing capital rules applicable as at the
relevant issue date.
In 2022, there were three issuances of AT1 instruments, in the form of Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities
for £3,134m (2021: one issuance for £1,072m) which includes issuance costs of £32m (2021: £11m). T here were two redemptions in 2022 totalling
£2,136m (2021: no redemptions).

AT1 equity instruments |  |  |
|  | 2022 | 2021
| Initial call date | £m | £m
AT1 equity instruments - Barclays Bank Group |  |  |
7.875% Perpetual Subordinated Contingent Convertible Securities | 2022 | — | 1,000
7.875% Perpetual Subordinated Contingent Convertible Securities (USD 1,500m) | 2022 | — | 1,136
7.25% Perpetual Subordinated Contingent Convertible Securities | 2023 | 500 | 500
7.75% Perpetual Subordinated Contingent Convertible Securities (USD 2,500m) | 2023 | 1,925 | 1,925
5.875% Perpetual Subordinated Contingent Convertible Securities | 2024 | 623 | 623
8% Perpetual Subordinated Contingent Convertible Securities (USD 2,000m) | 2024 | 1,509 | 1,509
7.125% Perpetual Subordinated Contingent Convertible Securities | 2025 | 299 | 299
6.375% Perpetual Subordinated Contingent Convertible Securities | 2025 | 495 | 495
6.125% Perpetual Subordinated Contingent Convertible Securities (USD 1,500m) | 2025 | 1,134 | 1,134
4.375% Perpetual Subordinated Contingent Convertible Securities (USD 1,500m) | 2028 | 1,072 | 1,072
8.300% Perpetual Subordinated Contingent Convertible Securities (SGD450m) | 2027 | 263 | —
8.875% Perpetual Subordinated Contingent Convertible Securities | 2027 | 1,237 | —
8.000% Perpetual Subordinated Contingent Convertible Securities (USD2,000 m) | 2029 | 1,634 | —
|  | 10,691 | 9,693

Notes to the financial statements
Capital instruments, equity and reserves

home.barclays/annualreport | Barclays Bank PLC Annual Report | 249

28 Reserves
Currency translation reserve
The currency translation reserve represents the cumulative gains and losses on the retranslation of the Barclays Bank Group's net investments in foreign
operations, net of the effects of hedging.
Fair value through other comprehensive income reserve
The fair value through other comprehensive income reserve represents the changes in the fair value of financial instruments accounted for at fair value
through other comprehensive income investments since initial recognition.
Cash flow hedging reserve
The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the
income statement when the hedged transactions affect profit or loss.
Own credit reserve
The own credit reserve reflects the cumulative own credit gains and losses on financial liabilities at fair value. Amounts in the own credit reserve are not
recycled to profit or loss in future periods.
Other reserves
Other reserves includes redeemed ordinary and preference shares issued by the Barclays Bank Group.

| Barclays Bank Group
| 2022 | 2021
| £m | £m
Currency translation reserve | 4,992 | 2,581
Fair value through other comprehensive income reserve | (1,342) | (118)
Cash flow hedging reserve | (5,557) | (618)
Own credit reserve | 467 | (960)
Other reserves | (24) | (24)
Total | (1,464) | 861

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
Currency translation reserve | 1,417 | 268
Fair value through other comprehensive income reserve | (1,347) | (115)
Cash flow hedging reserve | (5,180) | (624)
Own credit reserve | 486 | (837)
Other reserves | 72 | 72
Total | (4,552) | (1,236)

Notes to the financial statements
Capital instruments, equity and reserves

home.barclays/annualreport | Barclays Bank PLC Annual Report | 250

The notes included in this section focus on the costs and commitments associated with employing our staff.
29 Staff costs
Accounting for staff costs
The Barclays Bank Group applies IAS 19 Employee benefits in its accounting for most of the components of staff costs.
Short-term employee benefits – salaries, accrued performance costs and social security are recognised over the period in which the employees provide
the services to which the payments relate.
Performance costs – recognised to the extent that the Barclays Bank Group has a present obligation to its employees that can be measured reliably and
are recognised over the period of service that employees are required to work to qualify for the payments.
Deferred cash and share awards are made to employees to incentivise performance over the period employees provide services. To receive payment
under an award, employees must provide service over the vesting period. The period over which the expense for deferred cash and share awards is
recognised is based upon the period employees consider their services contribute to the awards. For past awards, the Barclays Bank Group considers
that it is appropriate to recognise the awards over the period from the date of grant to the date that the awards vest. In relation to awards granted from
2017, the Barclays Bank Group, taking into account the changing employee understanding surrounding those awards, considered it appropriate for
expense to be recognised over the vesting period including the financial year prior to the grant date.
The accounting policies for share-based payments, and pensions and other post-retirement benefits, are included in Note 30 and Note 31 respectively.

| 2022 | 2021 | 2020
| £m | £m | £m
Performance costs | 1,398 | 1,308 | 1,145
Salaries a | 2,637 | 2,245 | 2,285
Social security costs | 352 | 297 | 295
Post-retirement benefits b | 188 | 181 | 176
Other compensation costs | 205 | 172 | 208
Total compensation costs | 4,780 | 4,203 | 4,109
Other resourcing costs |  |  |
Outsourcing | 259 | 136 | 142
Redundancy and restructuring | 45 | 49 | 47
Temporary staff costs | 25 | 17 | 14
Other | 83 | 51 | 53
Total other resourcing costs | 412 | 253 | 256
Total staff costs | 5,192 | 4,456 | 4,365

Notes
a£197m (2021: £152m; 2020: £156m) of compensation was capitalised as internally generated software.
b Post-retirement benefits charge includes £140m (2021: £121m; 2020: £127m) in respect of defined contribution schemes and £48m (2021: £60m; 2020: £49m) in respect
of defined benefit schemes.
30 Share-based payments
Accounting for share-based payments
The Barclays Bank Group applies IFRS 2 Share-based Payments in accounting for employee remuneration in the form of shares.
Employee incentives include awards in the form of shares and share options, as well as offering employees the opportunity to purchase shares on
favourable terms. The cost of the employee services received in respect of the shares or share options granted is recognised in the income statement
over the period that employees provide services. The overall cost of the award is calculated using the number of shares and options expected to vest
and the fair value of the shares or options at the date of grant.
The number of shares and options expected to vest takes into account the likelihood that performance and service conditions included in the terms of
the awards will be met. Failure to meet the non-vesting condition is treated as a cancellation, resulting in an acceleration of recognition of the cost of
the employee services.
The fair value of shares is the market price ruling on the grant date, in some cases adjusted to reflect restrictions on transferability. The fair value of
options granted is determined using the Black Scholes model to estimate the numbers of shares likely to vest. The model takes into account the exercise
price of the option, the current share price, the risk-free interest rate, the expected volatility of the share price over the life of the option and other
relevant factors. Market conditions that must be met in order for the award to vest are also reflected in the fair value of the award, as are any other non-
vesting conditions – such as continuing to make payments into a share-based savings scheme.
Notes to the financial statements
Employee benefits

home.barclays/annualreport | Barclays Bank PLC Annual Report | 251

The charge for the year arising from share based payment schemes was as follows:

| Charge for the year
| 2022 | 2021 | 2020
| £m | £m | £m
Deferred Share Value Plan / Share Value Plan | 270 | 235 | 220
Others | 153 | 159 | 129
Total equity settled | 423 | 394 | 349
Cash settled | 3 | 4 | 2
Total share based payments | 426 | 398 | 351

The terms of the main current plans are as follows:
Share Value Plan (SVP)
The SVP was introduced in Barclays PLC Group in March 2010. SVP awards have been granted to participants in the form of a conditional right to
receive Barclays PLC shares or provisional allocations of Barclays PLC shares which vest or are considered for release over a period of three, four, five or
seven years. Participants do not pay to receive an award or to receive a release of shares. For awards granted before December 2017, the grantor may
also make a dividend equivalent payment to participants on release of a SVP award. SVP awards are also made to eligible employees for recruitment
purposes. All awards are subject to potential forfeiture in certain leaver scenarios.
Deferred Share Value Plan (DSVP)
The DSVP was introduced in February 2017. The terms of the DSVP are materially the same as the terms of the SVP as described above, save that
Executive Directors are not eligible to participate in the DSVP and the DSVP operates over market purchase shares only.
Other schemes
In addition to the SVP and DSVP, the Barclays PLC Group operates a number of other schemes settled in Barclays PLC Shares including Sharesave (both
UK and Ireland), Sharepurchase (both UK and Overseas), and the Barclays PLC Group Long Term Incentive Plan. A delivery of upfront shares to ‘Material
Risk Takers’ can be made as a Share Incentive Award (Holding Period) under the SVP.
Share option and award plans
The weighted average fair value per award granted, weighted average share price at the date of exercise/release of shares during the year, weighted
average contractual remaining life and number of options and awards outstanding (including those exercisable) at the balance sheet date were as
follows:

| 2022 | 2021
| Weighted average fair value per award granted in year | Weighted average share price at exercise/ release during year | Weighted average remaining contractual life in years | Number of options/ awards outstanding (000s) | Weighted average fair value per award granted in year | Weighted average share price at exercise/ release during year | Weighted average remaining contractual life in years | Number of options/ awards outstanding (000s)
| £ | £ |  |  | £ | £ |  |
DSVP / SVP a.b | 1.43 | 1.61 | 1 | 445,673 | 1.63 | 1.76 | 1 | 370,505
Others a | 0.38-1.65 | 1.59-1.7 | 0-2 | 47,610 | 0.64-1.81 | 1.76-1.92 | 0-3 | 47,480

SVP and DSVP are nil cost awards on which the performance conditions are substantially completed at the date of grant. Consequently, the fair value of
these awards is ba sed on the market value at that date.
Sharesave has a contractual life of 3 years and 5 years, the expected volatility is 31.10% for 3 years and 30.56% for 5 years. The risk free interest rates
used for valuations are 4.28% and 4.05% for 3 years and 5 years respectively. The pure dividend yield rates used for valuations are 4.01% and 3.93% for
3 years and 5 years respectively. The repo rates used for valuations are (0.47)% and (0.63)% for 3 years and 5 years respectively. The inputs into the
model such as risk free interest rate, expected volatility, pure dividend yield rates and repo rates are derived from the market data.
Notes to the financial statements
Employee benefits

home.barclays/annualreport | Barclays Bank PLC Annual Report | 252

Movements in options and awards
The movement in the number of options and awards for the major schemes and the weighted average exercise price of options was:

| DSVP / SVP a,b | Others a,c
| Number (000s) | Number (000s) | Weighted average ex. price (£)
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021
Outstanding at beginning of year/acquisition date | 370,505 | 370,006 | 47,480 | 53,767 | 0.95 | 0.95
Transfers in the year d | (3,742) | (2,214) | 2,048 | (2,697) | — | —
Granted in the year | 264,257 | 174,338 | 93,160 | 79,050 | 1.33 | 1.43
Exercised/released in the year | (162,958) | (144,943) | (90,696) | (78,273) | 1.18 | 1.36
Less: forfeited in the year | (22,389) | (26,682) | (4,017) | (3,395) | 0.99 | 0.95
Less: expired in the year | — | — | (365) | (972) | 1.19 | 1.69
Outstanding at end of year | 445,673 | 370,505 | 47,610 | 47,480 | 0.97 | 0.95
Of which exercisable: | — | — | 5,541 | 4,428 | 1.21 | 1.16

Notes
a Options/award granted over Barclays PLC shares.
b Weighted average exercise price is not applicable for SVP and DSVP awards as these are not share option schemes.
c The number of awards within Others at the end of the year principally relates to Sharesave (number of awards exercisable at end of year was 2,312,749). The weighted
average exercise price relates to Sharesave.
d Awards of employees transferred between the Barclays Bank Group and the rest of the Barclays PLC Group.
Awards and options granted to employees and former employees of the Barclays Bank Group under the Barclays PLC Group share plans may be
satisfied using new issue shares, treasury shares and market purchase shares of Barclays PLC. Awards granted to employees and former employees of
the Barclays Bank Group under DSVP may only be satisfied using market purchase shares of Barclays PLC.
There were no significant modifications to the share based payments arrangements in 2022 and 2021.
As at 31 December 2022, the total liability arising from cash-settled share based payments transactions was £5m (2021: £4m).
31 Pensions and post-retirement benefits
Accounting for pensions and post-retirement benefits
The Barclays Bank Group operates a number of pension schemes and post-employment benefit schemes.
Defined contribution schemes – the Barclays Bank Group recognises contributions due in respect of the accounting period in the income statement. Any
contributions unpaid at the balance sheet date are included as a liability.
Defined benefit schemes – the Barclays Bank Group recognises its obligations to members of each scheme at the period end, less the fair value of the
scheme assets after applying the asset ceiling test.
Each scheme’s obligations are calculated using the projected unit credit method. Scheme assets are stated at fair value as at the period end.
Changes in pension scheme liabilities or assets (remeasurements) that do not arise from regular pension cost, net interest on net defined benefit
liabilities or assets, past service costs, settlements or contributions to the sc heme are reco gnised in other comprehensive income. Remeasurements
comprise experience adjustments (differences between previous actuarial assumptions and what has actually occurred), the effects of changes in
actuarial assumptions, return on scheme assets (excluding amounts included in the interest on the assets) and any changes in the effect of the asset
ceiling restriction (excluding amounts included in the interest on the restriction).
Post-employment benefit schemes – the cost of providing healthcare benefits to retired employees is accrued as a liability in the financial statements
over the period that the employees provide services to the Barclays Bank Group, using a methodology similar to that for defined benefit pension
schemes.
Pension schemes
UK Retirement Fund (UKRF)
The UKRF is the Barclays Bank Group’s main scheme, representi ng 96% (2021: 97%) of the Barclays Bank Group’s total retirement benefit obligations.
Barclays Bank PLC is the principal employer of the UKRF. The UKRF was closed to new entrants on 1 October 2012, and comprises 10 sections, the two
most significant of which are:
▪Afterwork, which comprises a contributory cash balance defined benefit element, and a voluntary defined contribution element. The cash balance
element is accrued each year and revalued until Normal Retirement Age in line with the increase in Retail Price Index (RPI) (up to a maximum of 5%
p.a.). The main risks that the Barclays Bank Group runs in relation to Afterwork are limited although additional contributions are required if pre-
retirement investment returns are not sufficient to provide for the benefits.
▪The 1964 Pension Scheme. Most employees recruited before July 1997 built up benefits in this non-contributory defined benefit scheme in respect of
service up to 31 March 2010. Pensions were calculated by reference to service and pensionable salary. From 1 April 2010, members became eligible to
accrue future service benefits in either Afterwork or the Pension Investment Plan (PIP), a historic defined contribution section which is now closed to
future contributions. The risks that the Barclays Bank Group runs in relation to the 1964 section are typical of final salary pension schemes, principally
that investment returns fall short of expectations, that inflation exceeds expectations, and that retirees live longer than expected.
Notes to the financial statements
Employee benefits

home.barclays/annualreport | Barclays Bank PLC Annual Report | 253

Barclays Pension Savings Plan (BPSP)
The BPSP is a defined contribution scheme providing benefits for all new UK hires from 1 October 2012. BPSP is not subject to the same investment
return, inflation or life expectancy risks for the Barclays Bank Group that defined benefit schemes are. Members’ benefits reflect contributions paid and
the level of investment returns achieved.
Other
Apart from the UKRF and the BPSP, the Barclays Bank Group operates a number of smaller pension and long-term employee benefits and post-
retirement health care plans globally, the largest of which are the US defined benefit and defined contribution schemes. Many of the schemes are
funded, with assets backing the obligations held in separate legal vehicles such as trusts. Others are operated on an unfunded basis. The benefits
provided, the approach to funding, and the legal basis of the schemes, reflect local environments.
Governance
The UKRF operates under trust law and is managed and administered on behalf of the members in accordance with the terms of the Trust Deed and
Rules and all relevant legislation. The Corporate Trustee is Barclays Pension Funds Trustees Limited, a private limited company and a wholly owned
subsidiary of Barclays Bank PLC. The Trustee is the legal owner of the assets of the UKRF which are held separately from the assets of the Barclays Bank
Group.
The Trustee Board comprises six Management Directors selected by Barclays Bank PLC, of whom three are independent Directors with no relationship
with the Barclays Bank Group (and who are not members of the UKRF), plus three Member Nominated Directors selected from eligible active members
of the UKRF, deferred members or pensioner members who apply for the role.
The BPSP is a Group Personal Pension arrangement which operates as a collection of personal pension plans. Each personal pension plan is a direct
contract between the employee and the BPSP provider (Legal & General Assurance Society Limited), and is regulated by the FCA.
Similar principles of pension governance apply to the Barclays Bank Group’s other pension schemes, depending on local legislation.
Amounts recognised
The following tables include amounts recognised in the income statement and an analysis of benefit obligations and scheme assets for all Barclays Bank
Group defined benefit schemes. The net position is reconciled to the assets and liabilities recognised on the balance sheet. The tables include funded
and unfunded post-retirement benefits. The income statement charge with respect to defined contribution schemes is disclosed as part of footnotes to
Not e 29 “Staff costs”.

Income statement (credit)/charge |  |
| 2022 | 2021
| £m | £m
Current service cost | 28 | 58
Net finance (income)/cost | (122) | (26)
Past service cost | 20 | —
Other movements | — | 2
Total | (74) | 34

Barclays Bank PLC is the principal employer of the UKRF and hence Scheme Assets and Defined Benefit Obligations relating to the UKRF are recognised
within the Barclays Bank Group. Barclays Bank UK PLC and Barclays Execution Services Limited are participating employers in the UKRF and their share
of the UKRF service cost is borne by them. Of the £209m current service cost in the table below, £47m relates to Barclays Bank UK PLC and £134m
relates to Barclays Execution Services Limited. While the entire current service cost obligation is accounted for in the Barclays Bank Group, the income
statement charge is accounted for across all the participating employers.
Notes to the financial statements
Employee benefits

home.barclays/annualreport | Barclays Bank PLC Annual Report | 254

Balance sheet reconciliation
| 2022 | 2021
| Barclays Bank Group Total | Of which relates to UKRF | Barclays Bank Group Total | Of which relates to UKRF
| £m | £m | £m | £m
Benefit obligation at beginning of the year | (31,834) | (30,859) | (33,131) | (32,108)
Current service cost | (209) | (197) | (240) | (225)
Interest costs on scheme liabilities | (725) | (707) | (422) | (405)
Past service cost | (20) | (20) | — | —
Remeasurement gain/(loss) - financial | 10,995 | 10,734 | 849 | 820
Remeasurement gain/(loss) - demographic | 268 | 270 | 53 | 50
Remeasurement (loss)/gain - experience | (521) | (510) | (249) | (259)
Employee contributions | (4) | — | (4) | —
Benefits paid | 1,339 | 1,299 | 1,309 | 1,268
Exchange and other movements | (90) | — | 1 | —
Benefit obligation at end of the year | (20,801) | (19,990) | (31,834) | (30,859)
Fair value of scheme assets at beginning of the year | 35,467 | 34,678 | 34,713 | 33,915
Interest income on scheme assets | 847 | 829 | 448 | 434
Employer contribution | 1,807 | 1,785 | 971 | 955
Remeasurement - return on plan assets (less)/greater than discount rate | (11,510) | (11,313) | 653 | 642
Employee contributions | 4 | — | 4 | —
Benefits paid | (1,339) | (1,299) | (1,309) | (1,268)
Exchange and other movements | 84 | — | (13) | —
Fair value of scheme assets at the end of the year | 25,360 | 24,680 | 35,467 | 34,678
Net surplus | 4,559 | 4,690 | 3,633 | 3,819
Retirement benefit assets | 4,743 | 4,690 | 3,879 | 3,819
Retirement benefit liabilities | (184) | — | (246) | —
Net retirement benefit assets | 4,559 | 4,690 | 3,633 | 3,819

Notes to the financial statements
Employee benefits

home.barclays/annualreport | Barclays Bank PLC Annual Report | 255

Balance sheet reconciliation
| 2022 | 2021
| Barclays Bank PLC Total | Of which relates to UKRF | Barclays Bank PLC Total | Of which relates to UKRF
| £m | £m | £m | £m
Benefit obligation at beginning of the year | (31,020) | (30,859) | (32,270) | (32,108)
Current service cost | (198) | (197) | (226) | (225)
Interest costs on scheme liabilities | (709) | (707) | (407) | (405)
Past service cost | (20) | (20) | — | —
Remeasurement gain/(loss) - financial | 10,774 | 10,734 | 822 | 820
Remeasurement gain/(loss) - demographic | 268 | 270 | 50 | 50
Remeasurement gain/(loss) - experience | (509) | (510) | (256) | (259)
Benefits paid | 1,302 | 1,299 | 1,271 | 1,268
Exchange and other movements | (6) | — | (4) | —
Benefit obligation at end of the year | (20,118) | (19,990) | (31,020) | (30,859)
Fair value of scheme assets at beginning of the year | 34,741 | 34,678 | 33,978 | 33,915
Interest income on scheme assets | 830 | 829 | 434 | 434
Employer contribution | 1,788 | 1,785 | 956 | 955
Settlements | — | — | — | —
Remeasurement - return on plan assets (less)/greater than discount rate | (11,325) | (11,313) | 645 | 642
Employee contributions | — | — | — | —
Benefits paid | (1,302) | (1,299) | (1,271) | (1,268)
Exchange and other movements | 1 | — | (1) | —
Fair value of scheme assets at the end of the year | 24,733 | 24,680 | 34,741 | 34,678
Net surplus | 4,615 | 4,690 | 3,721 | 3,819
Retirement benefit assets | 4,695 | 4,690 | 3,825 | 3,819
Retirement benefit liabilities | (80) | — | (104) | —
Net retirement benefit assets | 4,615 | 4,690 | 3,721 | 3,819

Notes to the financial statements
Employee benefits

home.barclays/annualreport | Barclays Bank PLC Annual Report | 256

Included within the Barclays Bank Group’s benefit obligation is £690m (2021: £821m) relating to overseas pensions and £121m (2021: £154m) relating
to other post-employment benefits.
As at 31 December 2022, the UKRF’s scheme assets were in surplus versus IAS 19 obligations by £4,690m (2021: £3,819m). The increase in the UKRF
surplus during the year is driven by £294 m of deficit reduction contributions and the unwind of the Senior Notes (see later in note), partially offset by
higher than expected inflation experienced during the year. The UKRF assets and benefit obligation have reduced by c£10bn and c£11bn respectively
over the year, primarily due to higher gilt and bond yields. This is as expected from the investment strategy which aims to invest in assets that move in
value in line with changes in liability values.
The weighted average duration of the benefit payments reflected in the defined benefit obligation for the UKRF is 13 years (2021: 16 years). The
decrease in duration is primarily due to the increase in discount rate, driven by higher corporate bond yields. The UKRF expected benefits are projected
to be paid out for in excess of 50 years, although 30% of the total benefits are expected to be paid in the next 10 years; 30% in years 11 to 20 and 25%
in years 21 to 30. The remainder of the benefits are expected to be paid beyond 30 years.
Of the £1,299m (2021: £1,268m) UKRF benefits paid out, £390m (2021: £419m) related to transfers out of the fund.
Where a scheme’s assets exceed its obligations, an asset is recognised to the extent that it does not exceed the present value of future contribution
holidays or refunds of contributions (the asset ceiling). In the case of the UKRF the asset ceiling is not applied as, in certain specified circumstances such
as wind-up, the Barclays Bank Group expects to be able to recover any surplus. Similarly, a liability in respect of future minimum funding requirements is
not recognised. The UKRF Trustee does not have a substantive right to augment benefits, nor does it have the right to wind up the plan except in the
dissolution of Barclays Bank PLC or termination of contributions by Barclays Bank PLC. The application of the asset ceiling to other plans and
recognition of additional liabilities in respect of future minimum funding requirements is considered on an individual plan basis.
Critical accounting estimates and judgements
Actuarial valuation of the scheme's o bligations is dependent upon a series of assumptions. Below is a summary of the main financial and demographic
assumptions adopted for the UKRF.

Key UKRF financial assumptions | 2022 | 2021
| % p.a. | % p.a.
Discount rate | 4.80 | 1.84
Inflation rate (RPI) | 3.21 | 3.56

The UKRF discount rate assumption for 2022 was based on a standard WTW RATE Link model. The RPI inflation assumption for 2022 was set by
reference to the Bank of England’s implied inflation curve. The inflation assumption incorporates a deduction of 20 basis points as an allowance for an
inflation risk premium. The methodologies used to derive the discount rate and inflation assumptions are consistent with that used at the prior year end.
The UKRF’s post-retirement mortality assumptions are based on an updated best estimate assumption derived from an analysis in 2022 of the UKRF’s
own post-retirement mortality experience and taking account of recent evidence from published mortality surveys. An allowance has been made for
future mortality improvements based on the 2021 core projection model published by the Continuous Mortality Investigation Bureau subject to a long-
term trend of 1.25% per annum in future improvements (2021: 1.50% per annum). An additional allowance has been made within the mortality
assumptions to reflect the uncertain impact of COVID-19 in the long-term. The table below shows how the assumed life expectancy at 60, for members
of the UKRF, has varied over the past three years.

Assumed life expectancy | 2022 | 2021 | 2020
Life expectancy at 60 for current pensioners (years) |  |  |
– Males | 26.8 | 27.3 | 27.2
– Females | 29.5 | 29.6 | 29.4
Life expectancy at 60 for future pensioners currently aged 40 (years) |  |  |
– Males | 28.3 | 29.1 | 29.0
– Females | 31.0 | 31.4 | 31.2

The UKRF entered into a longevity reinsurance contract in 2022 covering £7b n of the pensioner liabilities. This is in addition to a £5b n transaction
executed in 2020. In total, over three-quarters of the longevity risk for current pensioners has been reinsured, and the transactions will provide income
to the UKRF in the event that pensions are paid out for longer than expected. The contracts form part of the UKRF’s investment portfolio. At 31
December 2022, the contracts are valued at £(123)m (2021: nil). The negative value placed on the longevity reinsurance contracts at 31 December
2022 reflects the estimated impact of changes in the reinsurance market, demographic assumptions and risk premia since the 2020 transaction was
entered into by the UKRF. The 2022 transaction is valued at nil as it is assessed to have been transacted recently at fair value.
Sensitivity analysis on actuarial assumptions
The sensitivity analysis has been calculated by valuing the UKRF liabilities using the amended assumptions shown in the table below and keeping the
remaining assumptions the same as disclosed in the table above, except in the case of the inflation sensitivity where other assumptions that depend on
assumed inflation have also been amended correspondingly. The difference between the recalculated liability figure and that stated in the balance sheet
reconciliation table above is the figure shown. The selection of these movements to illustrate the sensitivity of the defined benefit obligation to key
assumptions should not be interpreted as the Barclays Bank Group expressing any specific view of the probability of such movements happening.
Notes to the financial statements
Employee benefits

home.barclays/annualreport | Barclays Bank PLC Annual Report | 257

Change in key assumptions |  |
| 2022 | 2021
| (Decrease)/Increase in UKRF defined benefit obligation | (Decrease)/Increase in UKRF defined benefit obligation
| £bn | £bn
Discount rate |  |
0.50% p.a. increase | (1.1) | (2.3)
0.25% p.a. increase | (0.6) | (1.2)
0.25% p.a. decrease | 0.6 | 1.3
0.50% p.a. decrease | 1.2 | 2.6
Assumed RPI |  |
0.50% p.a. increase | 0.8 | 1.6
0.25% p.a. increase | 0.4 | 0.8
0.25% p.a. decrease | (0.4) | (0.8)
0.50% p.a. decrease | (0.8) | (1.6)
Life expectancy at 60 |  |
One year increase | 0.6 | 1.2
One year decrease | (0.5) | (1.2)

Assets
A long-term investment strategy has been set for the UKRF, with its asset allocation comprising a mixture of equities, bonds, property and other
appropriate assets. This recognises that different asset classes are likely to produce different long-term returns and some asset classes may be more
volatile than others. The long-term investment strategy ensures, among other aims, that investments are adequately diversified.
Notes to the financial statements
Employee benefits

home.barclays/annualreport | Barclays Bank PLC Annual Report | 258

The value of the assets of the schemes and their percentage in relation to total scheme assets were as follows:

Analysis of scheme assets |  |  |  |  |  |  |  |  |
| Barclays Bank Group Total | Of which relates to UKRF |
| Quoted | Unquoted a | Value | % of total fair value of scheme assets | Quoted | Unquoted a | Value | % of total fair value of scheme assets |
| £m | £m | £m | % | £m | £m | £m | % |
As at 31 December 2022 |  |  |  |  |  |  |  |  |
Equities | 113 | — | 113 | 0.5 | — | — | — | — |
Private equities | — | 2,734 | 2,734 | 10.8 | — | 2,734 | 2,734 | 11.1 |
Bonds - fixed government | 1,353 | — | 1,353 | 5.3 | 1,098 | — | 1,098 | 4.4 |
Bonds - index-linked government | 9,847 | — | 9,847 | 38.9 | 9,829 | — | 9,829 | 39.9 |
Bonds - corporate and other | 5,884 | 1,551 | 7,435 | 29.3 | 5,690 | 1,551 | 7,241 | 29.3 |
Property | 13 | 1,310 | 1,323 | 5.2 | — | 1,310 | 1,310 | 5.3 |
Infrastructure | 793 | 790 | 1,583 | 6.2 | 793 | 790 | 1,583 | 6.4 |
Hedge funds | 11 | 1,362 | 1,373 | 5.4 | — | 1,362 | 1,362 | 5.5 |
Derivatives | (20) | (1,837) | (1,857) | (7.3) | (20) | (1,837) | (1,857) | (7.5) |
Longevity reinsurance contracts | — | (123) | (123) | (0.5) | — | (123) | (123) | (0.5) |
Cash and liquid assets c | (1,776) | 3,286 | 1,510 | 6.0 | (1,789) | 3,286 | 1,497 | 6.1 |
Mixed investment funds | 11 | — | 11 | — | — | — | — | — |
Other | 7 | 51 | 58 | 0.2 | — | 6 | 6 | — |
Fair value of scheme assets | 16,236 | 9,124 | 25,360 | 100.0 | 15,601 | 9,079 | 24,680 | 100.0 |
As at 31 December 2021 |  |  |  |  |  |  |  |  |
Equities | 294 | — | 294 | 0.8 | 167 | — | 167 | 0.5 |
Private equities | — | 3,113 | 3,113 | 8.8 | — | 3,113 | 3,113 | 9.0 |
Bonds - fixed government | 2,384 | 161 | 2,545 | 7.2 | 2,080 | 161 | 2,241 | 6.5 |
Bonds - index-linked government | 15,375 | — | 15,375 | 43.5 | 15,352 | — | 15,352 | 44.4 |
Bonds - corporate and other | 7,451 | 1,498 | 8,949 | 25.2 | 7,214 | 1,498 | 8,712 | 25.1 |
Property | 14 | 1,490 | 1,504 | 4.2 | — | 1,490 | 1,490 | 4.3 |
Infrastructure | — | 1,815 | 1,815 | 5.1 | — | 1,815 | 1,815 | 5.2 |
Hedge funds | — | 1,365 | 1,365 | 3.8 | — | 1,365 | 1,365 | 3.9 |
Derivatives | 1 | 10 | 11 | — | 1 | 10 | 11 | — |
Longevity reinsurance contracts | — | — | — | — | — | — | — | — |
Cash and liquid assets c | (1,865) | 2,275 | 410 | 1.2 | (1,878) | 2,275 | 397 | 1.1 |
Mixed Investment funds | 9 | — | 9 | — | — | — | — | — |
Other | 20 | 57 | 77 | 0.2 | — | 15 | 15 | — |
Fair value of scheme assets b | 23,683 | 11,784 | 35,467 | 100.0 | 22,936 | 11,742 | 34,678 | 100.0 |

Notes to the financial statements
Employee benefits

home.barclays/annualreport | Barclays Bank PLC Annual Report | 259

Analysis of scheme assets
| Barclays Bank PLC Total | Of which relates to UKRF
| Quoted | Unquoted a | Value | % of total fair value of scheme assets | Quoted | Unquoted a | Value | % of total fair value of scheme assets
| £m | £m | £m | % | £m | £m | £m | %
As at 31 December 2022 |  |  |  |  |  |  |  |
Equities | 8 | — | 8 | — | — | — | — | —
Private equities | — | 2,734 | 2,734 | 11.1 | — | 2,734 | 2,734 | 11.1
Bonds - fixed government | 1,106 | — | 1,106 | 4.5 | 1,098 | — | 1,098 | 4.4
Bonds - index-linked government | 9,840 | — | 9,840 | 39.7 | 9,829 | — | 9,829 | 39.9
Bonds - corporate and other | 5,697 | 1,551 | 7,248 | 29.3 | 5,690 | 1,551 | 7,241 | 29.3
Property | — | 1,312 | 1,312 | 5.3 | — | 1,310 | 1,310 | 5.3
Infrastructure | 793 | 790 | 1,583 | 6.4 | 793 | 790 | 1,583 | 6.4
Hedge funds | — | 1,362 | 1,362 | 5.5 | — | 1,362 | 1,362 | 5.5
Derivatives | (20) | (1,837) | (1,857) | (7.5) | (20) | (1,837) | (1,857) | (7.5)
Longevity reinsurance contracts | — | (123) | (123) | (0.5) | — | (123) | (123) | (0.5)
Cash and liquid assets c | (1,788) | 3,286 | 1,498 | 6.1 | (1,789) | 3,286 | 1,497 | 6.1
Mixed investment funds | 3 | — | 3 | — | — | — | — | —
Other | — | 19 | 19 | 0.1 | — | 6 | 6 | —
Fair value of scheme assets | 15,639 | 9,094 | 24,733 | 100.0 | 15,601 | 9,079 | 24,680 | 100.0
As at 31 December 2021 |  |  |  |  |  |  |  |
Equities | 177 | — | 177 | 0.5 | 167 | — | 167 | 0.5
Private equities | — | 3,113 | 3,113 | 9.0 | — | 3,113 | 3,113 | 9.0
Bonds - fixed government | 2,090 | 161 | 2,251 | 6.5 | 2,080 | 161 | 2,241 | 6.5
Bonds - index-linked government | 15,366 | — | 15,366 | 44.3 | 15,352 | — | 15,352 | 44.4
Bonds - corporate and other | 7,223 | 1,498 | 8,721 | 25.1 | 7,214 | 1,498 | 8,712 | 25.1
Property | — | 1,492 | 1,492 | 4.3 | — | 1,490 | 1,490 | 4.3
Infrastructure | — | 1,815 | 1,815 | 5.2 | — | 1,815 | 1,815 | 5.2
Hedge funds | — | 1,365 | 1,365 | 3.9 | — | 1,365 | 1,365 | 3.9
Derivatives | 1 | 10 | 11 | — | 1 | 10 | 11 | —
Longevity reinsurance contracts | — | — | — | — | — | — | — | —
Cash and liquid assets c | (1,877) | 2,275 | 398 | 1.1 | (1,878) | 2,275 | 397 | 1.1
Mixed Investment funds | — | — | — | — | — | — | — | —
Other | 3 | 29 | 32 | 0.1 | — | 15 | 15 | —
Fair value of scheme assets b | 22,983 | 11,758 | 34,741 | 100.0 | 22,936 | 11,742 | 34,678 | 100.0

Notes
a Valuation of unquoted assets is provided by the underlying managers or qualified independent valuers. Valuations of complex instruments are based on UKRF custodian
valuations. The valuation for some of the unquoted assets, in particular Private equities, is based on valuations as at 30 September 2022 adjusted by cash flows, these
being the latest available valuations as at the point of publication. All valuations are determined in accordance with relevant industry guidance.
b The asset allocation for 2021 has been re-presented to reflect re-interpretation of the asset classifications as well as a reclassification of £1.2bn between unquoted/quoted
bonds and quoted/unquoted bonds, in a manner that management believes better represents the underlying nature of the assets.
c C ash and liquid assets for the UKRF consis ts of £521m (2021:£488m) Cash, £80m (2021:£93m) Receivables/payables, £3,286m (2021: £2,275m) Pooled cash funds and
£(2,390)m (2021: £(2,459)m) Repurchase agreements.
Included within the fair value of UKRF scheme assets was nil (2021: nil) relating to shares in Barclays PLC and nil (2021: nil) relating to bonds issued by
Barclays PLC or Barclays Bank PLC. The UKRF invests in pooled investment vehicles which may hold shares or debt issued by Barclays PLC.
There has been no significant change in the UKRF investment strategy over the year, however, given the movemen t in the gilt and bond yields over the
year, the relative weights of assets classes have changed. No additional support f rom the Barclays Bank Group was requi red in response to the market
volatility experienced over the year.
The UKRF assets as at 31 December 2021 do not include the Senior Notes referred to in the section below on Triennial Valuation, as these were non-
transferable instruments and not recognised under IAS19. The Senior Notes were redeemed in December 2022, and the redemption proceeds are now
included in Cash and Liquid Assets as at 31 December 2022.
Approximately 34% of the UKRF assets are invested in liability-driven investment strategies; primarily UK gilts as well as interest rate and inflation
swaps. These swaps are used to better match the assets to its liabilities. The swaps are used to reduce the scheme’s inflation and duration risks against
its liabilities.
Notes to the financial statements
Employee benefits

home.barclays/annualreport | Barclays Bank PLC Annual Report | 260

The UKRF employs derivative instruments, where appropriate, to match assets more closely to liabilities, or to achieve a desired exposure or return. The
value of assets shown reflects the assets held by the UKRF, with any derivative holdings reflected on a fair value basis. The UKRF uses repurchase
agreements and reverse repurchase agreements to achieve the Trustee’s liability hedging objective. Investment managers are allowed to undertake repo
transactions on the UKRF’s existing gilt holdings to raise cash with which to buy additional gilts for efficient portfolio management; and reverse repo
transactions to receive gilts and be paid a fee for providing cash.
For information on the UKRF Trustee’s approach to Responsible Investment and Climate Risk, in the context of managing the UKRF, please refer to the
UKRF Trustee website at https://epa.towerswatson.com/accounts/barclays/public/barclays-bank-responsible-investment-policy/.
Triennial Valuation
The latest triennial actuarial valuation of the UKRF showed a funding surplus of £2.0b n as at 30 September 2022 (2021 update: £0.6b n surplus). The
improvement was mainly due to £294m n of deficit reduction contributions, changes to views on life expectancy and inflationary returns on assets
relative to liabilities being better than expected.
The main differences between the funding and accounting assumptions are a different approach to setting the discount rate and a more conservative
longevity assumption for funding.
As the UKRF has a funding surplus, the 2023 deficit reduction contribution (£286m), agreed as part of the 2019 triennial actuarial valuation, is no longer
required, and a new recovery plan was not required.
As part of the 2022 triennial valuation, the Trustee and Barclays Bank PLC agreed an annual adequacy test on a basis more prudent than the IAS19 or
funding bases. Should the UKRF be sufficiently funded on this basis, the regular employer contributions to the UKRF to fund future Afterwork accrual
will not be required in the following calendar year. The test will be reviewed at the 2025 triennial valuation.
The next funding valuation of the UKRF is due to be completed in 2026 with an effective date of 30 September 2025.
Subscription for Fixed rate notes:
During 2019 and 2020 the UKRF subscribed for non-transferable listed senior fixed rate notes for £1,250m, backed by UK gilts (the Senior Notes). These
investments were partially financed by £1,000m deficit reduction contributions. The Senior Notes were issued by two entities consolidated in the
Barclays Bank Group under IFRS 10: Heron Issuer Limited (Heron) for £500m and Heron Issuer Number 2 Limited (Heron 2) for £750m. The Senior
Notes entitled the UKRF to semi-annual coupon payments for five years, and full repayment in cash in three tranches: £250m in 2023, £750m in 2024
and £250m at final maturity in 2025. Heron and Heron 2 acquired a total of £1,500m of gilts from Barclays Bank PLC for cash to support payments on
the Senior Notes. Barclays Bank PLC subscribed for the junior notes issued by Heron and Heron 2 for £250m. The regulatory capital impact, which
otherwise would have occurred in 2019 and 2020 from the regular deficit reduction contributions, would have been deferred until 2023, 2024 and 2025
upon maturity of the Senior Notes.
As part of the planned early unwind of these transactions disclosed in Barclays PLC’s Q1 2022 Results Announcement, Barclays Bank PLC purchased the
Senior Notes at fair value from the UKRF for cash in December 2022. The UKRF’s investment in the Senior Notes did not qualify as a plan asset under IAS
19; so the purchase of the Senior Notes for cash increased IAS 19 plan assets by £1,250m and thereby accelerated the regulatory capital impact of the
deficit reduction contributions to 2022 from 2023, 2024 and 2025. Barclays Bank PLC subsequently reacquired the gilts held by Heron and Heron 2 in
exchange for the redemption of all the fixed rate notes. The gilts were disposed of by Barclays Bank PLC prior to year-end.
Other support measures agreed which remain in place
Collateral – Barclays Bank PLC has entered into an agreement with the UKRF Trustee to provide collateral to cover at least 100% of any funding deficit
with an overall cap of £9b n, to provide security for the UKRF funding deficit as it increases or decreases over time. The collateral pool is currently zero
reflecting the surplus funding position. The arrangement provides the UKRF Trustee with dedicated access to the pool of assets in the event of Barclays
Bank PLC not paying a deficit reduction contribution to the UKRF or in the event of Barclays Bank PLC’s insolvency.
Participation – As permitted under the Financial Services and Markets Act 2000 (Banking Reform) (Pensions) Regulations 2015, Barclays Bank UK PLC is
a participating employer in the UKRF and will remain so during a transitional phase until September 2025 as set out in a deed of participation. Barclays
Bank UK PLC will make contributions for the future service of its employees who are currently Afterwork members and, in the event of Barclays Bank
PLC’s insolvency during this period, provision has been made to require Barclays Bank UK PLC to become the principal employer of the UKRF. Barclays
Bank PLC’s Section 75 debt would be triggered by the insolvency (the debt would be calculated after allowing for the payment to the UKRF of the
collateral above).
Defined benefit contributions paid with respect to the UKRF were as follows:

Contributions paid |
| £m
2022 | 1,785
2021 | 955
2020 | 748

There were nil (2021: nil) Section 75 contributions included within the Barclays Bank Group’s contributions paid as no participating employers left the
UKRF in 2022.
The Barclays Bank Group’s expected contribution to the UKRF in respect of defined benefits in 2023 is £38m (2022: £352m). In addition, the expected
contributions to UK defined contribution schemes in 2023 is £32m (2022: £6m) to the UKRF and £243m (2022: £42m) to the BPSP.
Notes to the financial statements
Employee benefits

home.barclays/annualreport | Barclays Bank PLC Annual Report | 261

The section presents inform ation on the Barclays Bank Group’s investments in subsidiaries, joint ventures and associates and its interests in structured
entities. Detail is also given on securitisation transactions the Barclays Bank Group has entered into and arrangements that are held off-balance sheet.
32 Principal subsidiaries
Barclays Bank Group applies IFRS 10 Consolidated Financial Statements. The consolidated financial statements combine the financial statements of
Barclays Bank PLC and all of its subsidiaries. Subsidiaries are entities over which Barclays Bank Group has control. Under IFRS 10, this is when Barclays
Bank Group is exposed to or has rights to variable returns from its involvement in an entity and has the ability to affect those returns through its power
over an entity.
Barclays Bank Group reassesses whether it controls an entity if facts and circumstances indicate that there have been changes to its power, its rights to
variable returns or its ability to use its power to affect the amount of its returns.
Intra-group transactions and balances are eliminated on consolidation and consistent accounting policies are used throughout the Barclays Bank Group
for the purposes of the consolidation. Changes in ownership interests in subsidiaries are accounted for as equity transactions if they occur after control
has been obtained and they do not result in loss of control.
The significant judgements used in applying this policy are set out below.
Accounting for investment in subsidiaries
In the individual financial statements of Barclays Bank PLC, investments in subsidiaries are stated at cost less impairment.
Investments in subsidiaries, the majority of which are engaged in banking related activities, are recorded on the balance sheet at historical cost less any
impairment. At 31 December 2022 the historical cost of investments in subsidiaries was £22,180m (2021: £19,517m), and impairment allowances
recognised against these investments totalled £2,916m (2021: £383m). The increase in the balance sheet value of £130 m in the year was driven by an
increase in the cost of investments in subsidiaries totalling £2,663m offset with an increase in impairment of £2,533m, predominantly relating to the
cost of investment in Barclays Bank Ireland PLC. The impairment of the investment in Barclays Bank Ireland PLC has been recognised in the income
statement of Barclays Bank PLC.
At the end of each reporting period an impairment review is undertaken in respect of investments in the ordinary shares of subsidiaries. Impairment is
indicated where the investment exceeds the recoverable amount. The recoverable amount is calculated as a value in use (VIU) which is derived from the
present value of future cash flows expected to be received from the investment. The VIU calculations use forecast attributable profit based on financial
budgets approved by management, covering a five-year period as an approximation of future cash flows discounted using a discount rate appropriate
to the subsidiary being tested. A terminal growth rate is then applied to the cash flows thereafter, which is based upon expectations of future inflation
rates.
The 2022 review identified impairment of the investment in Barclays Bank Ireland PLC of £2,489 m, reducing its carrying value to £2,548m. The VIU
calculation uses five-year profit after tax forecasts based on the formally agreed medium term plans approved by the Board. A post tax discount rate of
12.8% (pre-tax 16.6%) has been applied to the cash flow forecast. A terminal growth rate of 2% has been used to calculate a terminal value for the
investment. The terminal growth rate used has been based on inflation rates. A 1% increase in the discount rate would increase the impairment amount
in Barclays Bank PLC by £266m. A reduction in the terminal growth rate of 1% would increase the impairment amount by £194m. A reduction in the
forecasted cash flows by 10% per annum would increase impairment by £311m.
Principal subsidiaries of the Barclays Bank Group are set out below. This includes those subsidiaries that are most significant in the context of the
Barclays Bank Group’s business, results or financial position.

Company Name | Principal place of business or incorporation | Nature of business | Percentage of voting rights held | Non-controlling interests - proportion of ownership interests | Non-controlling interests - proportion of voting interests
% | % | %
Barclays Bank Delaware | United States | Credit card issuer | 100 | — | —
Barclays Bank Ireland PLC | Ireland | Banking | 100 | — | —
Barclays Capital Inc. | United States | Securities dealing | 100 | — | —
Barclays Capital Securities Limited | United Kingdom | Securities dealing | 100 | — | —
Barclays Securities Japan Limited | Japan | Securities dealing | 100 | — | —
Barclays US LLC | United States | Holding company | 100 | — | —

The country of registration or incorporation is also the principal area of operation of each of the above subsidiaries.
Ownership interests are in some cases different to voting interests due to the existence of non-voting equity interests, such as preference shares.
Significant judgements and assumptions used to determine the scope of the consolidation
Determining whether the Barclays Bank Group has control of an entity is generally straightforward based on ownership of the majority of the voting
capital. However, in certain instances, this determination will involve significant judgement, particularly in the case of structured entities where voting
rights are often not the determining factor in decisions over the relevant activities. This judgement will involve assessing the purpose and design of the
entity. It will also often be necessary to consider whether the Barclays Bank Group, or another involved party with power over the relevant activities, is
acting as a principal in its own right or as an agent on behalf of others.
There is also often considerable judgement involved in the ongoing assessment of control over structured entities. In this regard, where market
conditions have deteriorated such that the other investors’ exposures to the structure’s variable returns have been substantively eliminated, the Barclays
Bank Group may conclude that the managers of the structured entity are acting as its agent and therefore will consolidate the structured entity.
Notes to the financial statements
Scope of consolidation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 262

An interest in equity voting rights exceeding 50% would typically indicate that the Barclays Bank Group has control of an entity. However, the entity set
out below is excluded from consolidation because the Barclays Bank Group does not have exposure to its variable returns.

Company name | Country of registration or incorporation | Percentage of voting rights held (%) | Equity shareholders' funds (£m) | Retained profit for the year (£m)
Palomino Limited | Cayman Islands | 100 | — | —

This entity is managed by an external counterparty and consequently is not controlled by the Barclays Bank Group. Interests relating to this entity are
included in Note 33.
Significant restrictions
As is typical for a group of its size and international scope, there are restrictions on the ability of the Barclays Bank Group to obtain distributions of
capital, access the assets or repay the liabilities of members of the Barclays Bank Group due to the statutory, regulatory and contractual requirements of
its subsidiaries and due to the protective rights of non-controlling interests. These are considered below.
Regulatory requirements
The Barclays Bank Group’s principal subsidiary companies have assets and liabilities before intercompany eliminations of £491bn (2021: £439bn) and
£466bn (2021: £414bn) respectively. Certain classes of these assets and liabilities are subject to prudential regulation and regulatory capital
requirements in the countries in which the subsidiaries are regulated. These prudential and regulatory capital requirements require entities to maintain
minimum capital levels which cannot be returned to the parent company, Barclays Bank PLC, on a going concern basis.
In order to meet capital requirements, subsidiaries may issue certain equity accounted and debt accounted financial instruments such as Tier 1 and Tier
2 capital instruments and other forms of subordinated liabilities. Refer to Note 26 and Note 27 for particulars of these instruments. These instruments
may be subject to cancellation clauses or preference share restrictions that would limit the ability of the entity to repatriate the capital on a timely basis.
Liquidity requirements
Regulated subsidiaries of the Barclays Bank Group are required to meet PRA or local regulatory requirements pertaining to liquidity. Some of the
regulated subsidiaries include Barclays Capital Securities Limited (which is regulated for liquidity matters on a combined basis with Barclays Bank PLC
under a Domestic Liquidity Sub-Group (DoLSub) arrangement), Barclays Bank Ireland PLC, Barclays Capital Inc. and Barclays Bank Delaware Inc. See
page 115 for further details of liquidity requirements, including those of the Barclays Bank Group’s significant subsidiaries.
Statutory requirements
The Barclays Bank Group’s subsidiaries are subject to statutory requirements not to make distributions of capital and unrealised profits and generally to
maintain solvency. These requirements restrict the ability of subsidiaries to make remittances of dividends to Barclays Bank PLC, the parent, except in
the event of a legal capital reduction or liquidation. In most cases the regulatory restrictions referred to above exceed the statutory restrictions.
Asset encumbrance
The Barclays Bank Group uses its financial assets to raise finance in the form of securitisations and through the liquidity schemes of central banks, as
well as to provide security to the UK Retirement Fund. Once encumbered, the assets are not available for transfer around the Barclays Bank Group. The
assets typically affected are disclosed in Note 36.
Other restrictions
The Barclays Bank Group is required to maintain balances with central banks and other regulatory authorities and these amounted to £3,038m (2021:
£4,260m).
33 Structured entities
A structured entity is an entity in which voting or similar rights are not the dominant factor in deciding who controls the entity. An example is when
voting rights relate to administrate tasks only and the relevant activities are directed by means of contractual arrangements. Structured entities are
generally created to achieve a narrow and well-defined objective with restrictions around their ongoing activities.
Depending on the Barclays Bank Group’s power over the activities of the entity and its exposure to and ability to influence its own returns, it may
consolidate the entity. In other cases, it may sponsor or have exposure to such an entity but not consolidate it.
Consolidated structured entities
The Barclays Bank Group has contractual arrangements which may require it to provide financial support to the following types of consolidated
structured entities:
▪Securitisation: The Barclays Bank Group uses securitisation as a source of financing and a means of risk transfer. Where entities are controlled by
the Barclays Bank Group, they are consolidated. Refer to Note 35 for further detail.
▪Commercial paper (CP) conduits: These entities issue CP and use the proceeds to lend to clients as part of the Barclays Bank Group's multi-seller
conduit programme. The Barclays Bank Group has provided £20.8b n (2021: £17.2b n) in contractual liquidity facilities to the CP conduits that the
Barclays Bank Group consolidates. These amounts represent the maximum the conduits can lend externally. The amounts of CP conduit lending
(drawn and undrawn) to unconsolidated structured entities can be seen in Other interests in unconsolidated structured entities under multi-seller
conduit programme in the Summary of interests in unconsolidated structured entities table.
▪Tender Option Bond (TOB) trusts: During 2022, the Barclays Bank Group provided undrawn liquidity facilities of £3.8b n (2021: £3.3b n) to
consolidated TOB trusts. These trusts invest in fixed income instruments issued by state, local or other municipalities in the United States, funded
by long-term senior floating-rate notes and junior residual securities.
Notes to the financial statements
Scope of consolidation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 263

Unconsolidated structured entities
The term ‘unconsolidated structured entities’ refers to structured entities not controlled by the Barclays Bank Group, and are established either by
Barclays Bank Group or a third party. An interest in a structured entity is any form of contractual or non-contractual involvement which creates
variability in returns arising from the performance of the entity for the Barclays Bank Group. Such interests include holdings of debt or equity securities,
derivatives that transfer financial risks from the entity to the Barclays Bank Group, lending, loan commitments, financial guarantees and investment
management agreements.
Barclays Bank Group enters into transactions with unconsolidated structured entities in the normal course of business to facilitate customer
transactions, to provide risk management services and for specific investment opportunities. This is predominantly within t he Corporate and
Investment Bank. Struc tured entities may take the form of funds, trusts, securitisation vehicles, and private investment companies. The largest
transactions include loans and derivatives with hedge fund structures and special purpose entities, multi-seller conduit lending, holding notes issued by
securitisation vehicles and facilitating customer requirements through funds.
The nature and extent of the Barclays Bank Group’s interests in structured entities is summarised below:

Summary of interests in unconsolidated structured entities |  |  |  |  |
| Secured financing | Short-term traded interests | Traded derivatives | Other interests | Total
| £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |
Assets |  |  |  |  |
Trading portfolio assets | — | 8,632 | — | — | 8,632
Financial assets at fair value through the income statement | 75,166 | — | — | 2,406 | 77,572
Derivative financial instruments | — | — | 4,555 | — | 4,555
Financial assets at fair value through other comprehensive income | — | — | — | 423 | 423
Loans and advances at amortised cost | — | — | — | 36,842 | 36,842
Reverse repurchase agreements and other similar secured lending | 117 | — | — | — | 117
Other assets | — | — | — | 65 | 65
Total assets | 75,283 | 8,632 | 4,555 | 39,736 | 128,206
Liabilities |  |  |  |  |
Derivative financial instruments | — | — | 8,460 | — | 8,460
As at 31 December 2021 |  |  |  |  |
Assets |  |  |  |  |
Trading portfolio assets | — | 7,170 | — | — | 7,170
Financial assets at fair value through the income statement | 61,816 | — | — | 3,417 | 65,233
Derivative financial instruments | — | — | 5,160 | — | 5,160
Financial assets at fair value through other comprehensive income | — | — | — | 91 | 91
Loans and advances at amortised cost | — | — | — | 22,741 | 22,741
Reverse repurchase agreements and other similar secured lending | 104 | — | — | — | 104
Other assets | — | — | — | 12 | 12
Total assets | 61,920 | 7,170 | 5,160 | 26,261 | 100,511
Liabilities |  |  |  |  |
Derivative financial instruments | — | — | 9,543 | — | 9,543

Secured financing arrangements, short-term traded interests and traded derivatives are typically managed under market risk management policies
described in the Market risk management section which includes an indication of the change of risk measures compared to last year. For this reason,
the total assets of these entities are not considered meaningful for the purposes of understanding the related risks and so have not been presented.
Other interests include conduits and lending where the interest is driven by normal customer demand. As at 31 December 2022, there were 6,095
(2021: 5,696) structured entities that the Barclays Bank Group entered into transactions with.
Secured financing
The Barclays Bank Group routinely enters into reverse repurchase contracts, margin lending, stock borrowing and similar arrangements on normal
commercial terms where the counterparty to the arrangement is a structured entity. Due to the nature of these arrangements, especially the transfer of
collateral and ongoing margining, the Barclays Bank Group is able to manage its variable exposure to the performance of the structured entity
counterparty. The counterparties included in secured financing mainly include hedge fund limited structures, investment companies and special
purpose entities.
Short-term traded interests
As part of its market making activities, the Barclays Bank Group buys and sells interests in structured vehicles, which are predominantly debt securities
issued by asset securitisation vehicles. Such interests are typically held individually or as part of a larger portfolio for no more than 90 days. In such
cases, the Barclays Bank Group typically has no other involvement with the structured entity other than the securities it holds as part of trading activities
and its maximum exposure to loss is restricted to the carrying value of the asset.
Notes to the financial statements
Scope of consolidation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 264

Traded derivatives
The Barclays Bank Group enters into a variety of derivative contracts with structured entities which reference market risk variables such as interest rates,
equities, foreign exchange rates and credit indices among other things. The main derivative types which are considered interests in structured entities
include equity options, index-based and entity specific credit default swaps, and total return swaps. Interest rate swaps and foreign exchange
derivatives that are not complex and which expose the Barclays Bank Group to insignificant credit risk by being senior in the payment waterfall of a
securitisation and derivatives that are determined to introduce risk or variability to a structured entity are not considered to be an interest in an entity
and have been excluded from the disclosures.
A description of the types of derivatives and the risk management practices are detailed in Note 13. The risk of loss may be mitigated through ongoing
margining requirements as well as a right to cash flows from the structured entity which are senior in the payment waterfall. Such margining
requirements are consistent with market practice for many derivative arrangements and in line with the Barclays Bank Group’s normal credit policies.
Derivative transactions require the counterparty to provide cash or other collateral under margining agreements to mitigate counterparty credit risk. The
Barclays Bank Group is mainly exposed to settlement risk on these derivatives which is mitigated through daily margining. Total notional contract
amounts were £244,780m (2021: £217,055m).
Except for credit default swaps where the maximum exposure to loss is the swap notional amount, it is not possible to estimate the maximum exposure
to loss in respect of derivative positions as the fair value of derivatives is subject to changes in market rates of interest, exchange rates and credit indices
which by their nature are uncertain. In addition, the Barclays Bank Group’s losses would be subject to mitigating action under its traded market risk and
credit risk policies that require the counterparty to provide collateral in cash or other assets in most cases.
Other interests in unconsolidated structured entities
The Barclays Bank Group’s interests in structured entities not held for the purposes of short-term trading activities are set out below, summarised by the
nature of the interest and limited to significant categories, based on maximum exposure to loss.

Nature of interest |  |  |  |  |
| Multi-seller conduit programme | Lending | Other | Total | Of which: Barclays Bank Group owned, not consolidated entities a
| £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |
Financial assets at fair value through the income statement | — | 9 | 2,397 | 2,406 | 2,284
Financial assets at fair value through other comprehensive income | — | 220 | 203 | 423 | —
Loans and advances at amortised cost | 8,681 | 21,847 | 6,314 | 36,842 | —
Other assets | 32 | 33 | — | 65 | —
Total on-balance sheet exposures | 8,713 | 22,109 | 8,914 | 39,736 | 2,284
Total off-balance sheet notional amounts | 10,552 | 10,902 | — | 21,454 | —
Maximum exposure to loss | 19,265 | 33,011 | 8,914 | 61,190 | 2,284
Total assets of the entity | 66,504 | 154,501 | 63,798 | 284,803 | 8,690
As at 31 December 2021 |  |  |  |  |
Financial assets at fair value through the income statement | — | 2 | 3,415 | 3,417 | 3,335
Financial assets at fair value through other comprehensive income | — | 53 | 38 | 91 | —
Loans and advances at amortised cost | 5,184 | 14,294 | 3,263 | 22,741 | —
Other assets | 8 | 4 | — | 12 | —
Total on-balance sheet exposures | 5,192 | 14,353 | 6,716 | 26,261 | 3,335
Total off-balance sheet notional amounts | 11,015 | 9,394 | — | 20,409 | —
Maximum exposure to loss | 16,207 | 23,747 | 6,716 | 46,670 | 3,335
Total assets of the entity | 65,441 | 160,611 | 28,582 | 254,634 | 11,513

Note
a. Compr ises of Barcla ys Bank Group owned, not consolidated structured entities per IFRS 10 Consolidated Financial Statements, and Barclays Bank Group sponsored
entities. Refer to Note 32 Principal subsidiaries for more details on consolidation.
Maximum exposure to loss
Unless specified otherwise below, the Barclays Bank Group’s maximum exposure to loss is the total of its on-balance sheet positions and its off-balance
sheet arrangements, being loan commitments and financial guarantees. Exposure to loss is mitigated through collateral, financial guarantees, the
availability of netting and credit protection held.
Multi-seller conduit programme
The Barclays Bank Group's multi-seller conduit programme engages in providing financing to various clients and holds whole or partial interests in pools
of receivables or similar obligations. These instruments are protected from loss through over-collateralisation, seller guarantees, or other credit
enhancements provided to the conduit entity. The Barclays Bank Group’s off-balance sheet exposure included in the table above represents liquidity
facilities that are provided to the conduit for the benefit of the holders of the commercial paper issued by the conduit and will only be drawn where the
Notes to the financial statements
Scope of consolidation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 265

conduit is unable to access the commercial paper market. If these liquidity facilities are drawn, the Barclays Bank Group is protected from loss through
over-collateralisation, seller guarantees, or other credit enhancements provided to the conduit.
Lending
The portfolio includes lending provided by the Barclays Bank Group to unconsolidated structured entities in the normal course of its lending business to
earn income in the form of interest and lending fees and includes loans to structured entities that are generally collateralised by property, equipment or
other assets. All loans are subject to the Barclays Bank Group’s credit sanctioning process. Collateral arrangements are specific to the circumstances of
each loan with additional guarantees and collateral sought from the sponsor of the structured entity for certain arrangements. During the year the
Barclays Bank Group recorded impairment of £28m (2021: £25m) against such facilities.
Other
This includes fair value loans with structured entities where the market risk is materially hedged with corresponding derivative contracts, interests in
debt securities issued by securitisation vehicles and drawn and undrawn loan facilities to these entities. In addition, other includes investment funds
with interests restricted to management fees based on the performance of the fund and trusts held on behalf of beneficiaries with interests restricted to
unpaid fees.
Assets transferred to sponsored unconsolidated structured entities
The Barclays Bank Group is considered to sponsor another entity if, it had a key role in establishing that entity, it transferred assets to the entity, the
Barclays name appears in the name of the entity or it provides guarantees on the entity’s performance. As at 31 December 2022, a ssets transferred to
sponsored unconsolidated structured entities were £1,665m (2021: £1,662m).
34 Investments in associates and joint ventures
Accounting for associates and joint ventures
The Barclays Bank Group applies IAS 28 Investments in Associates and IFRS 11 Joint Arrangements. Associates are entities in which the Barclays Bank
Group has significant influence, but not control, over the operating and financial policies. Generally the Barclays Bank Group holds more than 20% but
less than 50% of their voting shares. Joint ventures are arrangements where the Barclays Bank Group has joint control and rights to the net assets of the
entity.
The Barclays Bank Group’s investments in associates and joint ventures are initially recorded at cost and increased (or decreased) each year by the
Barclays Bank Group’s share of the post acquisition profit/(loss). The Barclays Bank Group ceases to recognise its share of the losses of equity
accounted associates when its share of the net assets and amounts due from the entity have been written off in full, unless it has a contractual or
constructive obligation to make good its share of the losses. In some cases, investments in these entities may be held at fair value through profit or loss,
for example, those held by private equity businesses.
There are no individually significant investments in joint ventures or associates held by Barclays Bank Group.

| 2022 | 2021
| Associates | Joint ventures | Total | Associates | Joint ventures | Total
| £m | £m | £m | £m | £m | £m
Equity accounted (Group) | 26 | — | 26 | 24 | — | 24

| 2022 | 2021
| Associates | Joint ventures | Total | Associates | Joint ventures | Total
| £m | £m | £m | £m | £m | £m
Equity accounted (Parent) | 12 | — | 12 | 12 | — | 12

Summarised financial information for the Barclays Bank Group’s equity accounted associates and joint ventures is set out below. The amounts shown
are the Barclays Bank Group’s share of the comprehensive income of the investees for the year ended 31 December 2022, with the exception of certain
undertakings for which the amounts are based on accounts made up to dates not earlier than three months before the balance sheet date.

| Associates | Joint ventures
| 2022 | 2021 | 2022 | 2021
| £m | £m | £m | £m
Profit from continuing operations | 3 | — | — | —
Other comprehensive income | — | 1 | — | —
Total comprehensive income from continuing operations | 3 | 1 | — | —

Notes to the financial statements
Scope of consolidation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 266

35 Securitisations
Accounting for securitisations
The Barclays Bank Group uses securitisations as a source of finance and a means of risk transfer. Such transactions generally result in the transfer of
contractual cash flows from portfolios of financial assets to holders of issued debt securities.
Securitisations may, depending on the individual arrangement, result in continued recognition of the securitised assets and the recognition of the debt
securities issued in the transaction; lead to partial continued recognition of the assets to the extent of the Barclays Bank Group’s continuing involvement
in those assets or lead to derecognition of the assets and the separate recognition, as assets or liabilities, of any rights and obligations created or
retained in the transfer. Full derecognition only occurs when the Barclays Bank Group transfers both its contractual right to receive cash flows from the
financial assets, or retains the contractual rights to receive the cash flows, but assumes a contractual obligation to pay the cash flows to another party
without material delay or reinvestment, and also transfers substantially all the risks and rewards of ownership, including credit risk, prepayment risk and
interest rate risk.
In the course of its normal banking activities, the Barclays Bank Group makes transfers of financial assets, either where legal rights to the cash flows
from the asset are passed to the counterparty or beneficially, where the Barclays Bank Group retains the rights to the cash flows but assumes a
responsibility to transfer them to the counterparty. Depending on the nature of the transaction, this may result in derecognition of the assets in their
entirety, partial derecognition or no derecognition of the assets subject to the transfer.
A summary of the main transactions, and the assets and liabilities and the financial risks arising from these transactions, is set out below:
Transfers of financial assets that do not result in derecognition
Securitisations
The Barclays Bank Group is party to securitisation transactions involving its credit card and mortgage loan balances.
In these transactions, the assets, interests in the assets, or beneficial interests in the cash flows arising from the assets, are transferred to a special
purpose entity, which then issues interest bearing debt securities to third party investors.
Securitisations may, depending on the individual arrangement, result in continued recognition of the securitised assets and the recognition of the debt
securities issued in the transaction. Partial continued recognition of the assets to the extent of the Barclays Bank Group’s continuing involvement in
those assets can also occur or derecognition of the assets and the separate recognition, as assets or liabilities, of any rights and obligations created or
retained in the transfer.
The following table shows the carrying amount of securitised assets that have not resulted in full derecognition, together with the associated liabilities,
for each category of asset on the balance sheet:

| 2022 | 2021
| Assets | Liabilities | Assets | Liabilities
| Carrying amount | Fair value | Carrying amount | Fair value | Carrying amount | Fair value | Carrying amount | Fair value
| £m | £m | £m | £m | £m | £m | £m | £m
Barclays Bank Group |  |  |  |  |  |  |  |
Loans and advances at amortised cost |  |  |  |  |  |  |  |
Credit cards, unsecured loans and other retail lending | 4,846 | 5,283 | (1,433) | (1,356) | 1,262 | 1,382 | (1,225) | (1,219)
Financial assets at FVTPL |  |  |  |  |  |  |  |
Mortgage Loans | 330 | 330 | — | — | 41 | 41 | — | —
Total | 5,176 | 5,613 | (1,433) | (1,356) | 1,303 | 1,423 | (1,225) | (1,219)

Balances included within loans and advances at amortised cost represent securitisations where substantially all the risks and rewards of the assets have
been retained by Barclays Bank Group and balances included within Financial assets at FVTPL represent securitisations where the risks and rewards are
neither substantially transferred nor retained.
The relationship between the transferred assets and the associated liabilities is that holders of notes may only look to cash flows from the securitised
assets for payments of principal and interest due to them under the terms of their notes, although the contractual terms of their notes may be different
to the maturity and interest of the transferred assets.
If the Barclays Bank Group transfers a financial asset but does not transfer or retain substantially all the risk and rewards of the asset and retains control
over it, the transferred assets are recognised to the extent of Barclays Bank Group's’ continuing involvement. In 2022, financial assets of £828m (2021:
£249m) were transferred in this manner and the carrying value of the assets representing continued involvement is included in the table above.
For transfers of assets in relation to repurchase agreements, see Note 36.
Continuing involvement in financial assets that have been derecognised
In some cases, the Barclays Bank Group may have transferred a financial asset in its entirety but may have continuing involvement in it. This arises in
asset securitisations where loans and asset backed securities were derecognised as a result of the Barclays Bank Group’s involvement with asset backed
securities, residential mortgage backed securities and commercial mortgage securities. Continuing involvement largely arises from providing financing
into these structures in the form of retained notes, which do not bear first losses.
Notes to the financial statements
Scope of consolidation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 267

The table below shows the potential financial implications of such continuing involvement:

| Continuing involvement a | Gain from continuing involvement |
| Carrying amount | Fair value | Maximum exposure to loss | For the year ended | Cumulative to 31 December |
Type of transfer | £m | £m | £m | £m | £m |
2022 |  |  |  |  |  |
Asset backed securities | 8 | 8 | 8 | 1 | 3 |
Residential mortgage backed securities | 432 | 426 | 432 | 18 | 22 |
Commercial mortgage backed securities | 412 | 357 | 412 | 5 | 16 |
Total | 852 | 791 | 852 | 24 | 41 |
2021 |  |  |  |  |  |
Asset backed securities | 25 | 25 | 25 | 1 | 2 |
Residential mortgage backed securities | 78 | 78 | 78 | 3 | 4 |
Commercial mortgage backed securities | 311 | 307 | 311 | 5 | 11 |
Total | 414 | 410 | 414 | 9 | 17 |

Note
a Assets which represent the Barclays Bank Group’s continuing involvement in derecognised assets are recorded in Loans and advances at amortised cost and Debt
Securities at FVTP&L.
36 Assets pledged, collateral received and assets transferred
Assets are pledged or transferred as collateral to secure liabilities under repurchase agreements, securitisations and stock lending agreements or as
security deposits relating to derivatives. Assets transferred are non-cash assets transferred to a third party that do not qualify for derecognition from the
Barclays Bank Group’s balance sheet, for example because the Barclays Bank Group retains substantially all the exposure to those assets under an
agreement to repurchase them in the future for a fixed price.
Where non-cash assets are pledged or transferred as collateral for cash received, the asset continues to be recognised in full, and a related liability is also
recognised on the balance sheet. Where non-cash assets are pledged or transferred as collateral in an exchange for non-cash assets, the transferred
asset continues to be recognised in full, and there is no associated liability as the non-cash collateral received is not recognised on the balance sheet.
The Barclays Bank Group is unable to use, sell or pledge the transferred assets for the duration of the transaction and remains exposed to interest rate
risk and credit risk on these pledged assets. Unless stated, the counterparty's recourse is not limited to the transferred assets.
The following table summarises the nature and carrying amount of the assets pledged as security against these liabilities:

| Barclays Bank Group
| 2022 | 2021
| £m | £m
Cash collateral and settlement balances | 75,790 | 63,080
Loans and advances at amortised cost | 36,752 | 29,962
Trading portfolio assets | 63,914 | 71,201
Financial assets at fair value through the income statement | 7,747 | 5,595
Financial assets at fair value through other comprehensive income | 16,164 | 14,699
Assets pledged | 200,367 | 184,537

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
Cash collateral and settlement balances | 60,727 | 57,612
Loans and advances at amortised cost | 38,857 | 30,469
Trading portfolio assets | 38,870 | 47,616
Financial assets at fair value through the income statement | 5,714 | 3,390
Financial assets at fair value through other comprehensive income | 27,843 | 30,175
Assets pledged | 172,011 | 169,262

Notes to the financial statements
Scope of consolidation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 268

The following table summarises the transferred financial assets and the associated liabilities. The transferred assets represents the gross carrying value
of the assets pledged and the associated liabilities represents the IFRS balance sheet value of the related liability recorded on the balance sheet.

| Barclays Bank Group
| Transferred assets | Associated liabilities
| £m | £m
At 31 December 2022 |  |
Derivatives | 77,941 | (77,941)
Repurchase agreements | 54,509 | (31,220)
Securities lending arrangements | 62,741 | —
Other | 5,176 | (4,788)
| 200,367 | (113,949)
At 31 December 2021 |  |
Derivatives | 64,826 | (64,826)
Repurchase agreements | 48,504 | (28,494)
Securities lending arrangements | 66,703 | —
Other | 4,504 | (4,174)
| 184,537 | (97,494)

| Barclays Bank PLC
| Transferred assets | Associated liabilities
| £m | £m
At 31 December 2022 |  |
Derivatives | 62,932 | (62,932)
Repurchase agreements | 48,000 | (26,967)
Securities lending arrangements | 57,792 | —
Other | 3,287 | (3,287)
| 172,011 | (93,186)
At 31 December 2021 |  |
Derivatives | 59,730 | (59,730)
Repurchase agreements | 44,337 | (24,189)
Securities lending arrangements | 62,226 | —
Other | 2,969 | (2,969)
| 169,262 | (86,888)

For repurchase agreements the difference between transferred assets and associated liabilities is predominantly due to IFRS netting. Included within
Other are agreements where a counterparty's recourse is limited to the transferred assets. The relationship between the gross transferred assets and the
associated liabilities is that holders of notes may only look to cash flows from the securitised assets for payments of principal and interest due to them
under the terms of their notes.

| Carrying value | Fair value
| Transferred assets | Associated liabilities | Transferred assets | Associated liabilities | Net position
| £m | £m | £m | £m | £m
Barclays Bank Group |  |  |  |  |
2022 |  |  |  |  |
Recourse to transferred assets only | 5,176 | (1,433) | 5,613 | (1,356) | 4,257
2021 |  |  |  |  |
Recourse to transferred assets only | 1,303 | (1,225) | 1,423 | (1,219) | 204

The Barclays Bank Group has an additional £2.7bn (2021: £3.5bn) of loans and advances within its asset backed funding programmes that can readily
be used to raise additional secured funding and are available to support future issuances.
Notes to the financial statements
Scope of consolidation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 269

Collateral held as security for assets
Under certain transactions, including reverse repurchase agreements and stock borrowing transactions, the Barclays Bank Group is allowed to resell or
re-pledge the collateral held. The fair value at the balance sheet date of collateral accepted and re-pledged to others was as follows:

| Barclays Bank Group
| 2022 | 2021
| £m | £m
Fair value of securities accepted as collateral | 989,211 | 934,363
Of which fair value of securities re-pledged/transferred to others | 892,760 | 819,169

| Barclays Bank PLC
| 2022 | 2021
| £m | £m
Fair value of securities accepted as collateral | 980,685 | 941,774
Of which fair value of securities re-pledged/transferred to others | 883,441 | 847,046

Additional disclosure has been included in Credit risk on pages 71 to 74.
Notes to the financial statements
Scope of consolidation

home.barclays/annualreport | Barclays Bank PLC Annual Report | 270

The notes included in this section focus on related party transactions, Auditors’ remuneration, Directors’ remuneration and Transition disclosures.
Related parties include any subsidiaries, associates, joint ventures and Key Management Personnel.
37 Related party transactions and Directors’ remuneration
Related party transactions
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making
financial or operational decisions, or one other party controls both.
Parent company
The parent company, which is also the ultimate parent company, is Barclays PLC, which holds 100% of the issued ordinary shares of Barclays Bank PLC.
The largest group in which the results of the Company are consolidated is headed by Barclays PLC, 1 Churchill Place London E14 5HP. The consolidated
financial statements of the group are available to the public and may be obtained from Barclays Corporate Secretariat, 1 Churchill Place London E14
5HP.
Subsidiaries
Transactions between Barclays Bank PLC and its subsidiaries also meet the definition of related party transactions. Where these are eliminated on
consolidation, they are not disclosed in the Barclays Bank Group’s financial statements. A list of the Barclays Bank Group’s principal subsidiaries is
shown in Note 32.
Fellow subsidiaries
Transactions between the Barclays Bank Group and other subsidiaries of the parent company also meet the definition of related party transactions.
Associates and other entities
The Barclays Bank Group provides banking services to its associates and the Barclays Bank Group pension funds (principally the UK Retirement Fund),
providing loans, overdrafts, interest and non-interest bearing deposits and current accounts to these entities as well as other services. Barclays Bank
Group companies also provide investment management and custodian services to the Barclays Bank Group pension schemes. All of these transactions
are conducted on the same terms as third party transactions. Summarised financial information for the Barclays Bank Group’s investments in associates
and joint ventures is set out in Note 34.
Amounts included in the Barclays Bank Group’s financial statements, in aggregate, by category of related party entity are as follows:

| Parent | Fellow subsidiaries | Associates | Pension funds
| £m | £m | £m | £m
For the year ended and as at 31 December 2022 |  |  |  |
Total income | (751) | 199 | (2) | 3
Operating expenses | (69) | (3,459) | — | (1)
Total assets | 1,575 | 9,056 | — | 3
Total liabilities | 40,827 | 6,668 | 407 | 166
For the year ended and as at 31 December 2021 |  |  |  |
Total income | (611) | 20 | — | 3
Operating expenses | (64) | (3,195) | — | (1)
Total assets | 6,491 | 909 | — | 3
Total liabilities | 32,141 | 3,962 | 177 | 81

Total liabilities include derivatives transacted on behalf of the pensions funds of £110m (2021: £18m).
Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 271

Amounts included in Barclays Bank PLC’s financial statements, in aggregate, by category of related party entity are as follows:

| Parent | Subsidiaries | Fellow subsidiaries | Associates | Pension funds
| £m | £m | £m | £m | £m
As at 31 December 2022 |  |  |  |  |
Total assets | 1,575 | 279,031 | 5,914 | — | —
Total liabilities | 40,419 | 195,131 | 6,389 | 407 | 162
As at 31 December 2021 |  |  |  |  |
Total assets | 3,655 | 277,717 | 890 | — | —
Total liabilities | 31,669 | 196,743 | 3,783 | 177 | 78

It is the normal practice of Barclays Bank PLC to provide its subsidiaries with support and assistance by way of guarantees, indemnities, letters of
comfort and commitments, as may be appropriate, with a view to enabling them to meet their obligations and to maintain their good standing,
including commitment of capital and facilities. For dividends paid to Barclays PLC see Note 10.
Key Management Personnel
Key Management Personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of
Barclays Bank PLC (directly or indirectly) and comprise the Directors and Officers of Barclays Bank PLC, certain direct reports of the Chief Executive
Officer and the heads of major business units and functions.
The Barclays Bank Group provides banking services to Key Management Personnel and persons connected to them. Transactions during the year and
the balances outstanding were as follows:

Loans outstanding |  |
| 2022 | 2021
| £m | £m
As at 1 January | — | —
Loans issued during the year a | 0.1 | —
Loan repayments during the year b | 0.1 | —
As at 31 December | — | —

Notes
a Includes loans issued to existing Key Management Personnel and new or existing loans issued to newly appointed Key Management Personnel.
b Includes loan repayments by existing Key Management Personnel and loans to former Key Management Personnel.
No allowances for impairment were recognised in respect of loans to Key Management Personnel (or any connected person).

Deposits outstanding |  |
| 2022 | 2021
| £m | £m
As at 1 January | 2.1 | 3.4
Deposits received during the year a | 9.4 | 9.0
Deposits repaid during the year b | (9.5) | (10.3)
As at 31 December | 2.0 | 2.1

Notes
a Includes deposits received from existing Key Management Personnel and new or existing deposits received from newly appointed Key Management Personnel.
b Includes deposits repaid by existing Key Management Personnel and deposits of former Key Management Personnel.
Total commitments outstanding
Total commitments outstanding refer to the total of any undrawn amounts on credit card and/or overdraft facilities provided to Key Management
Personnel. Total commitments outstanding as at 31 December 2022 were £0.1 m (2021: £0.1m).
All loans to Key Management Personnel (and persons connected to them) were made in the ordinary course of business; were made on substantially
the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other persons; and did not
involve more than a normal risk of collectability or present other unfavourable features.
Remuneration of Key Management Personnel
Total remuneration awarded to Key Management Personnel below represents salaries, short term benefits and pensions contributions received during
the year and awards made as part of the latest remuneration decisions in relation to the year. Costs recognised in the income statement reflect the
accounting charge for the year included within operating expenses. The difference between the values awarded and the recognised income statement
charge principally relates to the recognition of costs for deferred awards. Figures are provided for the period that individuals met the definition of Key
Management Personnel.
Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 272

| 2022 | 2021
| £m | £m
Salaries and other short-term benefits | 44.2 | 35.2
Pension costs | 0.2 | 0.2
Other long-term benefits | 12.1 | 8.5
Share-based payments | 16.5 | 13.2
Employer social security charges on emoluments | 7.5 | 6.0
Costs recognised for accounting purposes | 80.5 | 63.1
Employer social security charges on emoluments | (7.5) | (6.0)
Other long-term benefits – difference between awards granted and costs recognised | 0.1 | 3.3
Share-based payments – difference between awards granted and costs recognised | 4.2 | 6.1
Total remuneration awarded | 77.3 | 66.5

Disclosure required by the Companies Act 2006
The following information regarding the Barclays Bank PLC Board of Directors is presented in accordance with the Companies Act 2006:

| 2022 | 2021
| £m | £m
Aggregate emoluments a | 7.1 | 6.3
Amounts paid under LTIPs b | 0.4 | 1.2
| 7.5 | 7.5

Notes
a The aggregate emoluments include amounts paid for the 2022 year. In addition, deferred share awards for 2022 with a total value at grant of £2.3m (2021: £1.4m) will be
made to Directors which will only vest subject to meeting certain conditions.
b The figure above for "Amounts paid under LTIPs" for 2022 relates to LTIP awards that were released to Directors in 2022. Dividend shares released on the awards are
excluded (where applicable).
There were no pension contributions paid to defined contribution schemes on behalf of Directors (2021: £nil). There were no notional pension
contributions to defined contribution schemes.
As at 31 December 2022, there were no Directors accruing benefits under a defined benefit scheme (2021: nil).
The aggregate amount of compensation payable to departing officers in respect of loss of office was £2,253,304 (2021: £426,139).
Of the figures in the table above, the amounts attributable to the highest paid Director in respect of qualifying services are as follows:

| 2022 | 2021
| £m | £m
Aggregate emoluments a | 3.6 | 2.1
Amounts paid under LTIPs | — | 0.7
| 3.6 | 2.8

Note
a The aggregate emoluments include amounts paid for the 2022 year. In addition, a deferred share award for 2022 with a value at grant of £1.5m (2021: £nil) will be made
to the highest paid Director which will only vest subject to meeting certain conditions.
There were no actual pension contributions paid to defined contribution schemes on behalf of the highest paid Director (2021: £nil). There were no
notional pension contributions to defined contribution schemes (2021: £nil).
Advances and credit to Directors and guarantees on behalf of Directors
In accordance with Section 413 of the Companies Act 2006, the total amount of advances and credits made available in 2022 to persons who served as
Directors during the year was £nil (2021: £nil). The total value of guarantees entered into on behalf of Directors during 2022 was £nil (2021: £nil).
Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 273

38 Disposals of business es
During the year, Barclays Bank PLC s old its dir ect owner ship of subsidiaries Capton Investments Limited and Hawkins to Roder Investment No 1 Limited
and Roder investment No 2 Limited recording gains of £43m and £75m respectively.
During 2021, Barclays Bank PLC sold its investment in Barclays Insurance Guernsey PCC to Barclays Principal Investments Limited, a fellow Barclays PLC
Group compa ny, at it s fair value of £65m. Barclays Bank PLC recorded profit on disposal of £50m in respect of this transaction. The Barclays Bank Group
recorded a loss on disposal of £10m.
During 2021, Barclays Bank PLC sold its investment in an SPV holding the lease to premises used by the Barclays Bank PLC Monaco Branch for
consideration of £52m. Barclays Bank PLC recorded a profit of £49m. Barclays Bank Group treats this transaction as a sale and leaseback and recorded a
gain on sale of £33m within other income.
Following a decision to transfer Barclays PLC Group’s European businesses to Barclays Bank Ireland PLC, Barclays Bank PLC transferred its German
business in Q4 2019 and its branches in France, Italy, Netherlands, Portugal, Spain and Sweden in Q1 2020. Throughout 2020 and 2021, Barclays Bank
PLC also transferred positions facing European clients to Barclays Bank Ireland PLC, at the clients’ request.
During 2021, Barclays Bank PLC transferred loans and advances at amortised cost of £49m (2020: £361m) to Barclays Bank Ireland PLC, in exchange
for cash consideration. Barclays Bank PLC also transferred derivative financial instrument assets of £5,886m (2020: £9,692 m) and derivative financial
instrument liabilities of £4,523m (2020: £12,337m) to Barclays Bank Ireland PLC. Concurrently, Barclays Bank PLC entered into new derivative positions
with Barclays Bank Ireland PLC to hedge the risk on the transferring positions. Therefore, there was no net impact on the balance sheet of Barclays Bank
PLC.
39 Auditor’s remuneration
Auditor’s remuneration is included within consultancy, legal and professional fees in administration and general expenses and comprises:

| 2022 | 2021 | 2020 |
| £m | £m | £m |
Audit of the Barclays Bank Group's annual accounts | 20 | 19 | 17 |
Other services: |  |  |  |
Audit of the Barclays Bank PLC subsidiaries a | 18 | 14 | 13 |
Other audit related fees b | 8 | 7 | 7 |
Other services | 1 | 1 | 1 |
Total Auditor's remuneration | 47 | 41 | 38 |

Notes
a Comprises the fees for the statutory audit of the subsidiaries both inside and outside UK and fees for the work performed by associates of KPMG in respect of the
consolidated financial statements of the Company.
b Comprises services in relation to statutory and regulatory filings. These include audit services for the review of the interim financial information under the Listing Rules of
the UK listing authority.
40 Interest rate benchmark reform
Following the financial crisis, the reform and replacement of benchmark interest rates such as LIBOR has been a priority for global regulators. As a
result, the UK’s Financial Conduct Authority (FCA) and other global regulators instructed market participants to prepare for the cessation of most LIBOR
rates after the end of 2021, and to adopt “Risk-Free Rates” (RFRs).
Pursuant to FCA announcements during 2021, panel bank submissions for all GBP, JPY, EUR and CHF LIBOR tenors ceased after 31 December 2021. For
USD, certain actively used tenors will continue to be provided until end June 2023 in their current form, however in line with the US banking regulators’
joint statement, Barclays ceased issuing or entering into new contracts that use USD LIBOR as a reference rate from 31 December 2021, other than in
relation to those allowable use cases set out under the FCA's prohibition notice (ref 21A). These include, amongst others, market making in support of
client activity; or transactions that reduce or hedge Barclays' or any client of Barclays' USD LIBOR exposure on contracts entered into before 1 January
2022.
The Barclays Bank Group’s expos ure to rates subject to benchmark interest rate reform has been predominantly to GBP, USD, JPY and CHF LIBOR and
Euro Overnight Index Average (EONIA) in addition to the GBP LIBOR ICE Swap Rate, JPY LIBOR Tokyo Swap Rate and USD LIBOR ICE Swap Rate, with
the vast majority concentrated in derivatives within the Global Markets business. Some additional exposure exists on floating rate loans and advances,
repurchase and securities lending agreements and debt securities held and issued within the Corporate and Investment Bank. Following transition
activity in late 2021 and early 2022, almost all GBP LIBOR, GBP LIBOR ICE Swap Rate, JPY LIBOR and JPY LIBOR Tokyo Swap Rate and CHF LIBOR and
EONIA positions (“2021 scope”) have transitioned onto RFRs and while there are a number of benchmarks yet to cease, the Barclays Bank Group's risk
exposure is now mainly to USD LIBOR and the USD LIBOR ICE Swap Rate.
There are key differences between IBORs and RFRs. IBORs are ‘term rates’, which means that they are published for a borrowing period (for example
three months) and they are ‘forward-looking’, because they are published at the beginning of a borrowing period, based upon an estimated inter-bank
borrowing cost for the period. RFRs are based upon overnight rates from actual transactions and are therefore published after the end of the overnight
borrowing period. Furthermore, IBORs include term and credit risk premiums. Therefore, to transition existing contracts and agreements to RFRs,
adjustments for term and credit differences may need to be applied to RFR-linked rates. The methodologies for these adjustments have been
determined through in-depth consultations by industry working groups, on behalf of the respective global regulators and related market participants.
How the Barclays Group is managing the transition to alternative benchmark rates
Barclays has established a Group-wide LIBOR Transition Programme. The Transition Programme spans all business lines and has cross-functional
governance which includes Legal, Compliance, Conduct Risk, Risk and Finance. The Transition Programme aims to drive strategic execution and
Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 274

identify, manage and resolve key risks and issues as they arise. Barclays continues to provide quarterly updates on progress and exposures to the PRA/
FCA and other regulators as required.
The Transition Programme follows a risk-based approach, using recognised ‘change delivery’ control standards. Accountable Executives are in place
within key working groups and workstreams, with overall Board oversight delegated to the Board Risk Committee.
Approaches to USD LIBOR and USD LIBOR ICE Swap Rate exposure transition vary by product and nature of counterparty. The Group has engaged with
counterparties to transition or include robust fallback provisions where not already agreed in contracts with maturities after June 2023, when USD
LIBOR and the USD LIBOR ICE Swap Rate will either cease to be published or cease to be published, in their current form. Any fallback provision will
provide the relevant replacement rate, in the case of the ISDA 2020 IBOR Fallbacks Protocol this is the RFR plus a credit adjustment spread. For bilateral
derivative exposure, adherence to the relevant ISDA Fallback Protocols have provided Barclays with an efficient mechanism to amend outstanding
trades to incorporate fallbacks. Beyond the ISDA 2020 IBOR Fallbacks Protocol and the ISDA 2021 Fallbacks Protocol, another option has been to
bilaterally amend terms with counterparties. Derivative contracts facing central clearing counterparties (CCP) will follow a market-wide, standardised
approach to reform through a series of CCP-led conversions, similar to those used for GBP, JPY and CHF LIBOR and EONIA.
GBP and JPY LIBOR ceased to be published in their original form from the end of 2021 and synthetic versions of GBP and JPY LIBOR have been made
available for a limited period of time. This is to help mitigate the risk of widespread disruption to legacy LIBOR contracts which had not transitioned by
end 2021, when the GBP and JPY panel bank submissions ended. The FCA has reiterated that any synthetic LIBOR tenors are only a bridge to give time
to transition to appropriate alternative RFRs and not a permanent solution. Barclays continues to monitor, assess and limit the reliance on synthetic
LIBOR.
On 29 Se ptember 2022 the FCA announced that the 1- and 6- month synthetic GBP LIBOR tenors would cease immediately after 31 March 2023 and
confirmed that the synthetic JPY LIBOR tenors would cease permanently at the end of 2022.
On 23 November 2022 the FCA announced that the 3-month synthetic GBP LIBOR tenor will cease at the end of M arch 2024 and that the overnight and
12-month USD LIBOR tenors will cease at the end of Ju ne 2023. The FCA also proposed that the 1-, 3- and 6-month USD LIBOR tenors should be
published under a synthetic methodology for a temporary period until the end of September 2024. A final decision from the FCA is expected by early in
the second quarter of 2023.
US Federal legislation (the Adjustable Interest Rate (LIBOR) Act) has been enacted which provides a solution for contracts governed under US law which
reference USD LIBOR but do not have adequate fallbacks. The effect of this legislation on in scope agreements will be to deem all references to USD
LIBOR to the replacement Secured Overnight Financing Rate (SOFR) with the additional benefit of statutory contract continuity and safe harbour
protection. This contrasts with the legislation implemented in the UK which provides for statutory contract continuity with safe harbour protection only
for the administrator and could expose market participants to additional litigation risk.
Progress made during 2022
During 2022, the Barclays Bank Group delivered technology and business process changes required to ensure operational readiness in preparation for
transitions to RFRs for those benchmark rates cea sing at the end of June 2 023; these included new RFR product capabilities and alternatives to LIBOR
across loans, bonds, repurchase and securities lending transactions and derivatives. Barclays continued to monitor and address its unremediated
exposure to 2021 scope; noting that this exposure, excluding secondary traded loans and bonds, was reduced to £2.0b n gross notional as at 31
December 2022, which accounts for less than 0.2% of baseline exposure for 2021 scope. Of this, £1.2b n relates to undrawn lending facilities with
£1.1b n of this made up of syndicated loans where transition is led by a third-party agent. The remaining £0.8b n is predominantly made up of bilateral
derivatives without appropriate fallbacks. Work is ongoing with clients and agents, as appropriate, to address the outstanding unremediated exposu res.
Ba rclays is now focused on transition of legacy positions related to USD LIBOR and the USD LIBOR ICE Swap Rate (and other in-scope IBORs) and
remains on track to meet the associated industry deadlines. In the first half of 2022, Barclays successfully transitioned all uncommitted USD LIBOR
lending exposures.
Risks to which the Barclays Bank Group is exposed as a result of the transition
Global regulators and central banks in the UK, US, EU and APAC have been driving international efforts to reform key benchmark interest rates and
indices, such as LIBOR, which are used to determine the amounts payable under a wide range of transactions and make them more reliable and robust.
These benchmark reforms have resulted in significant changes to the methodology and operation of certain benchmarks and indices, the adoption of
RFRs, the discontinuation of certain reference rates (including LIBOR), and the introduction of implementing legislation and regulations.
Notwithstanding these developments, given the unpredictable consequences of benchmark reform, any of these developments could have an adverse
impact on market participants, including the Barclays Bank Group, in respect of any financial instruments linked to, or referencing, any of these
benchmark interest rates.
Uncertainty associated with such potential changes include :
•the availability and/or suitability of alternative RFRs
•the participation of customers and third-party market participants in the transition process
•challenges with respect to required documentation changes
•impact of legislation to deal with ‘certain legacy’ contracts that cannot convert into RFRs or add RFR fallbacks language before cessation of
the benchmark they reference
This uncertainty may adversely affect a broad range of transactions (securities, loans, derivatives, repurchase and securities lending transactions which
use LIBOR or any other affected benchmark to determine the amount of interest payable (that are included in the Barclays Group’s financial assets and
liabilities)) that use these reference rates and indices, and present a number of risks for the Barclays Group, including, but not limited to:
•Conduct risk: in undertaking actions to transition away from using certain reference rates (such as LIBOR) to new alternative RFRs, the Barclays
Bank Group faces conduct risks. These may lead to customer complaints, regulatory sanctions or reputational impact if the Barclays Bank Group is
considered to be (among other things) (i) undertaking market activities that are manipulative or create a false or misleading impression, (ii)
Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 275

misusing sensitive information or not identifying or appropriately managing or mitigating conflicts of interest, (iii) providing customers with
inadequate advice, misleading information, unsuitable products or unacceptable service, (iv) not taking a consistent approach to remediation for
customers in similar circumstances, (v) unduly delaying the communication and migration activities in relation to client exposure, leaving them
insufficient time to prepare, or (vi) colluding or inappropriately sharing information with competitors.
•Litigation risk: members of the Barclays Bank Group may face legal proceedings, regulatory investigations and/or other actions or proceedings
regarding (among other things) (i) the conduct risks identified above, (ii) the interpretation and enforceability of provisions in LIBOR-based
contracts, and (iii) the Barclays Bank Group’s preparation and readiness for the replacement of LIBOR with alternative RFRs.
•Financial risk: the valuation of certain of the Barclays Bank Group’s financial assets and liabilities may change. Moreover, transitioning to
alternative RFRs may impact the ability of members of the Barclays Bank Group to calculate and model amounts receivable by them on certain
financial assets and determine the amounts payable on certain financial liabilities (such as debt securities issued by them) because certain
alternative RFRs (such as the SONIA and SOFR) are look-back rates whereas term rates (such as LIBOR) allow borrowers to calculate at the start of
any interest period exactly how much is payable at the end of such interest period. This may have a material adverse effect on the Barclays Bank
Group’s cash flows.
•Pricing risk: changes to existing reference rates and indices, discontinuation of any reference rate or indices and transition to alternative RFRs may
impact the pricing mechanisms used by the Barclays Bank Group on certain transactions.
•Operational risk: changes to existing reference rates and indices, discontinuation of any reference rate or index and transition to alternative RFRs
may require changes to the Barclays Bank Group’s IT systems, trade reporting infrastructure, operational processes, and controls. In addition, if any
reference rate or index (such as LIBOR) is no longer available to calculate amounts payable, the Barclays Bank Group may incur additional
expenses in amending documentation for new and existing transactions and/or effecting the transition from the original reference rate or index to
a new reference rate or index.
•Accounting risk: an inability to apply hedge accounting in accordance with IAS 39 could lead to increased volatility in the Barclays Bank Group’s
financial results and performance.
Any of these factors may have a material adverse effect on the Barclays Bank Group’s business, results of operations, financial condition, prospects and
reputation. While a number of the above risks in relation to transition of legacy 2021 scope onto RFRs have been substantially mitigated, they remain
relevant in relation to USD and related LIBOR transitions.
The Barclays Bank Group does not expect material changes to its risk management approach and strategy as a result of interest rate benchmark reform.
The following tables summarise USD LIBOR and USD LIBOR ICE Swap Rate non-derivatives exposures due to mature post 30 June 2023, when USD
LIBOR and the USD LIBOR ICE Swap Rate will either cease to be published or cease to be published, in its current form:

USD LIBOR | 2022 | 2021
| £m | £m
Non-derivative financial assets |  |
Loans and advances at amortised cost | 8,659 | 15,801
Reverse repurchase agreements and other similar secured lending | — | 186
Financial assets at fair value through the income statement | 4,282 | 8,538
Financial assets at fair value through other comprehensive income | — | —
Non-derivative financial assets | 12,941 | 24,525
Non-derivative financial liabilities |  |
Debt securities in issue | (2,493) | —
Subordinated liabilities | (344) | (3,774)
Financial liabilities designated at fair value | (1,740) | (212)
Non-derivative financial liabilities | (4,577) | (3,986)
Equity |  |
Other equity instruments | (295) | (3,062)
Standby facilities, credit lines and other commitments a | 68,118 | 42,767

Note
a.For year ended 20 21, m ulti currency loan facilities are reported in the currency which needs to be remediated first, which were mainly non-USD. As non-USD rates
transitioned, this has resulted in a corresponding increase in USD LIBOR exposure for year ended 2022 as USD LIBOR exposure is yet to transition.
Balances reported at amortised cost are disclosed at their gross carrying value and do not include any provisions for expected credit losses that may be
held against them.
The following tables summarise USD LIBOR and USD LIBOR ICE Swap Rate derivative exposures due to mature post 30 June 2023:
Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 276

USD LIBOR | 2022 | 2021
| £m | £m
Derivative notional contract amount |  |
OTC interest rate derivatives | 2,594,268 | 2,283,077
OTC interest rate derivatives - cleared by central counterparty | 2,119,420 | 2,211,729
Exchange traded interest rate derivatives | 337,535 | 466,339
OTC foreign exchange derivatives | 84 | 461,680
OTC equity and stock index derivatives | 1,261 | 9,949
Derivative notional contract amount | 5,052,568 | 5,432,774

Derivatives are reported by using the notional contract amount.
As at 31 December 2022 t he Barclays Bank Group also had £9bn (2021: £9b n) of Barclays issued debt retained by the Barclays Bank Group, impacted
by the interest rate benchmark reform, in USD LIBOR.
Fallback clauses
The USD LIBOR and USD LIBOR ICE Swap Rate derivative exposures as at 31 December 2022 have been broken up into those with robust fallbacks and
those without. Fallbacks here are defined as any mechanism involving a ‘switch’ or ‘hardwire’ or a contractual agreement to automatically transition to
an agreed rate. The most c ommonly used market solutions to incorporate fallback provisions into certain legacy non-cleared derivative agreements are
the ISDA Fallbacks Protocols, namely the ISDA 2020 IBOR Fallbacks Protocol and the ISDA 2021 Fallbacks Protocol published in October 2020. Market
participants who have adhered to the relevant ISDA Fallbacks Protocol agree, between adhering parties, that their legacy non-cleared contracts will be
amended to include the relevant fallback provisions.
The following table presents a breakdown of USD LIBOR and USD LIBOR ICE Swap Rate non-derivative exposures with robust fallbacks in place and
those without as at 31 December 2022:

USD LIBOR | With robust fallback clause | Without robust fallback clause
As at 31 December 2022 | £m | £m
Non-derivative financial assets |  |
Loans and advances at amortised cost | 7,770 | 889
Financial assets at fair value through the income statement | 4,282 | —
Non-derivative financial assets | 12,052 | 889
Non-derivative financial liabilities |  |
Debt securities in issue | (2,493) | —
Subordinated liabilities | — | (344)
Financial liabilities designated at fair value | (1,740) | —
Non-derivative financial liabilities | (4,233) | (344)
Equity |  |
Other equity instruments | — | (295)
Standby facilities, credit lines and other commitments | 64,632 | 3,486

The following table presents a breakdown of USD LIBOR and USD LIBOR ICE Swap Rate derivative exposures with robust fallbacks in place and those
without as at 31 December 2022:

USD LIBOR | With appropriate fallback clause | Without appropriate fallback clause
As at 31 December 2022 | £m | £m
Derivative notional contract amount |  |
OTC interest rate derivatives | 2,538,218 | 56,050
OTC interest rate derivatives - cleared by central counterparty | 2,119,420 | —
Exchange traded interest rate derivatives | 337,535 | —
OTC foreign exchange derivatives | 84 | —
OTC equity and stock index derivatives | 770 | 491
Derivative notional contract amount | 4,996,027 | 56,541

The majority of USD LIBOR and USD LIBOR ICE Swap Rate exposures are already covered by fallbacks as a result of the 2020 ISDA IBOR Fallbacks
Protocol and the June 2022 Benchmark Module of the ISDA 2021 Fallbacks Protocol which relevant Barclays entities have adhered to.
Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 277

41. Related undertakings The Barclays Bank PLC Group’s corporate structure consists of a number of related undertakings, comprising, subsidiary undertakings, joint ventures, associated undertakings and significant holdings. A full list of these related undertakings, is set out below, together with the country of incorporation, registered office (or principal place of business) and the identity and percentage of each share class held by the Barclays Bank Group. The information is provided as at 31 December 2022. The entities are grouped by the countries in which they are incorporated. The profits earned by the activities of these entities are in some cases taxed in countries other than the country of incorporation for example where the entity carries on business through a branch in a territory outside of its country of incorporation. Barclays PLC Country Snapshot provides details of where the Barclays PLC Group carries on its business, where its profits are subject to tax and the taxes it pays in each country it operates in. Wholly owned subsidiaries Unless otherwise stated the undertakings below are wholly owned and included in the consolidation; and the share capital held by Barclays Bank PLC Group comprises ordinary and/or common shares, which are held by the Barclays Bank PLC Group. Unless otherwise stated, the Barclays Bank PLC Group holds 100% of the nominal value of each share class. | Notes |  |  |  |  |  |
A | Directly held by Barclays Bank PLC | O | Capital Contribution Shares
B | Partnership Interest | P | Redeemable Class B Shares
C | Membership Interest | Q | Non-Redeemable Ordinary Shares
D | Preference Shares | R | Class A Shares
E | A Preference Shares | S | Class B Shares
F | B Preference Shares | T | Class C Shares
G | Ordinary/Common Shares in addition to other | U | Class D Shares
| shares | V | Class E Shares
H | A Ordinary Shares | W | First Class Common Shares, Second Class
I | B Ordinary Shares |  | Common Shares
J | C Ordinary Shares | X | Redeemable Class A Shares
K | F Ordinary Shares | Y | Not Consolidated (see Note 33 Structured
L | First Preference Shares, Second Preference Shares |  | entities)
M | Registered Address not in country of incorporation | Z | Tracker 1 Euro, GBP, USD Shares
N | USD Linked Ordinary Shares |  |

Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 278

Wholly owned subsidiaries | Note | Wholly owned subsidiaries | Note | Wholly owned subsidiaries | Note
United Kingdom |  | Finpart Nominees Limited | A | - 1 Churchill Place, London, E14 5HP |
- 1 Churchill Place, London, E14 5HP |  | Foltus Investments Limited |  | Alynore Investments Limited Partnership | B
Aequor Investments Limited |  | Hawkins Funding Limited |  | - 1 Churchill Place, London, E14 5HP |
Ardencroft Investments Limited | A | Heraldglen Limited | G, L | Leonis Investments LLP | A, B
B D & B Investments Limited |  | Isle of Wight Home Loans Limited | A | - 9, allée Scheffer, L-2520, Luxembourg |
B.P.B. (Holdings) Limited | A | J.V. Estates Limited | A | Barclays Claudas Investments Partnership | B, M
Barclays Aldersgate Investments Limited | A | Kirsche Investments Limited | A | Barclays Pelleas Investments Limited Partnership | B, M
Barclays Capital Asia Holdings Limited | A | Long Island Assets Limited |  |  |
Barclays Capital Finance Limited | A | Maloney Investments Limited |  | Argentina |
Barclays Capital Japan Securities Holdings |  | Menlo Investments Limited | A | - 855 Leandro N.Alem Avenue, 8th Floor, |
Limited (In liquidation) |  | Mercantile Credit Company Limited | A | Buenos Aires |
Barclays Capital Nominees (No.2) Limited |  | Mercantile Leasing Company (No.132) | A | Compañía Sudamerica S.A. | A
Barclays Capital Nominees (No.3) Limited | A | Limited |  | - Marval, O’Farrell & Mairal, Av. Leandro N. |
Barclays Capital Nominees Limited | A | MK Opportunities LP | B | Alem 882, Buenos Aires, C1001AAQ |
Barclays Capital Securities Client Nominee | A |  |  | Compañia Regional del Sur S.A. | A
Limited |  |  |  |  |
Barclays Capital Securities Limited | A, D, G | Naxos Investments Limited | A |  |
Barclays CCP Funding LLP | A, B | Northwharf Nominees Limited | A, AA |  |
Barclays Directors Limited | A | Real Estate Participation Management Limited |  |  |
Barclays Executive Schemes Trustees Limited | A | Real Estate Participation Services Limited |  |  |
Barclays Group Holdings Limited | A | Relative Value Investments UK Limited | B |  |
Barclays International Holdings Limited | A | Liability Partnership |  |  |
Barclays Investment Management Limited | A | Relative Value Trading Limited |  |  |
Barclays Long Island Limited | A | Roder Investments No. 1 Limited | A, G, Z |  |
Barclays Marlist Limited (In liquidation) | A | Roder Investments No. 2 Limited | A, G, Z |  |
Barclays Nominees (George Yard) Limited | A, Y |  |  |  |
Barclays OCIO Services Limited | A |  |  |  |
Barclays Pension Funds Trustees Limited | A | RVT CLO Investments LLP | B |  |
Barclays Private Bank |  | Surety Trust Limited | A |  |
Barclays Services (Japan) Limited | A | Swan Lane Investments Limited |  |  |
Barclays Shea Limited | A | US Real Estate Holdings No.1 Limited | A |  |
Barclays Term Funding Limited Liability | B | US Real Estate Holdings No.2 Limited |  |  |  |  |
Partnership |  | US Real Estate Holdings No.3 Limited | A |  |  |  |
Barclays Wealth Nominees Limited | A | US Real Estate Holdings No.4 Limited |  |  |  |  |
Barcosec Limited | A | US Real Estate Holdings No.5 Limited | A |  |  |  |
Barsec Nominees Limited | A | US Real Estate Holdings No.6 Limited | A |  |  |  |
BB Client Nominees Limited | A | Wedd Jefferson (Nominees) Limited | A |  |  |  |
Chapelcrest Investments Limited |  | Westferry Investments Limited | A |  |  |  |
Cobalt Investments Limited (In liquidation) | A | Woolwich Qualifying Employee Share | A |  |  |  |
Cornwall Home Loans Limited | A | Ownership Trustee Limited |  |  |  |  |
DMW Realty Limited | A | Zeban Nominees Limited | A |  |  |  |
Dorset Home Loans Limited | A |  |  |  |  |  |  |  |
Durlacher Nominees Limited | A |  |  |  |  |  |  |  |
Eagle Financial and Leasing Services (UK) | A |  |  |  |  |  |  |  |
Limited |  |  |  |  |  |  |  |  |

Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 279

Wholly owned subsidiaries | Note | Wholly owned subsidiaries | Note | Wholly owned subsidiaries | Note |
Brazil |  | Hong Kong |  | - 5 Esplanade, St. Helier, JE2 3QA |  |
– Av. Brigadeiro Faria Lima, No. 4.440, 12th |  | - 42nd floor Citibank Tower, Citibank Plaza, |  | Barclays Wealth Management Jersey Limited | A |
Floor, Bairro Itaim Bibi, Sao Paulo, CEP, |  | 3 Garden Road |  | BIFML PTC Limited | A |
04538-132 |  | Barclays Bank (Hong Kong Nominees) Limited | A | – 13 Library Place, St Helier, JE4 8NE |  |
Barclays Brasil Assessoria Financeira Ltda | A | (in Liquidation) |  | Barclays Nominees (Jersey) Limited | A, Y |
BNC Brazil Consultoria Empresarial Ltda | A | Barclays Capital Asia Nominees Limited (In |  | Barclaytrust Channel Islands Limited | A, Y |
|  | Liquidation) |  | – Estera Trust (Jersey) Limited, 13-14 |  |
Canada |  | - Level 41, Cheung Kong Center, 2 Queen's |  | Esplanade, St Helier, JE1 1EE |  |
– 333 Bay Street, Suite 4910, Toronto ON M5H |  | Road, Central |  | MK Opportunities GP Ltd | A |
2R2 |  | Barclays Capital Asia Limited | A |  |  |
Barclays Capital Canada Inc. |  |  |  | Luxembourg |  |
– Stikeman Elliot LLP, 199 Bay Street, 5300 |  | India |  | - 9, allée Scheffer, L-2520 |  |
Commerce Court West, Toronto ON M5L 1B9 |  | - 208 Ceejay House, Shivsagar Estate, Dr A |  | Barclays Alzin Investments S.à r.l. | R, S, T, U,V |
Barclays Corporation Limited | A | Beasant Road, Worli, Mumbai, 400 018 |  | Barclays Bedivere Investments S.à r.l. |  |
|  | Barclays Securities (India) Private Limited |  | Barclays Bordang Investments S.à r.l. | R, S, T |
Cayman Islands |  | Barclays Wealth Trustees (India) Private |  | Barclays BR Investments S.à r.l. |  |
PO Box |  | Limited |  | Barclays Cantal Investments S.à r.l. |  |
309, Ugland House, George Town, Grand |  | - Level 9, Block B6, Nirlon Knowledge |  | Barclays Capital Luxembourg S.à r.l. |  |
Cayman, KY1-1104 |  | Park, Off Western Express Highway |  | Barclays Capital Trading Luxembourg S.à r.l. | R, S |
Alymere Investments Limited | E, F, G | Goregaon (East), Mumbai, 40063 |  | Barclays Claudas Investments S.à r.l. |  |
Analytical Trade UK Limited | A | Barclays Investments & Loans (India) | A, D, G | Barclays Equity Index Investments S.à r.l. |  |
Barclays US Holdings Limited | A, D, H | Private Limited |  | Barclays International Luxembourg Dollar |  |
Barclays Capital (Cayman) Limited | A |  |  | Holdings S.à r.l. |  |
Barclays Securities Financing Limited | E, F, G | Ireland |  | Barclays Lamorak Investments S.à r.l. | D, Q |
Braven Investments No.1 Limited |  | - One Molesworth Street, Dublin 2, |  | Barclays Leto Investments S.à r.l. | G, I |
Calthorpe Investments Limited |  | D02RF29 |  | Barclays Luxembourg EUR Holdings S.à r.l | Q |
Capton Investments Limited |  | Barclays Bank Ireland Public Limited | A | Barclays Luxembourg Finance S.à r.l. |  |
Claudas Investments Limited | A, G, P, X | Company |  | Barclays Luxembourg GBP Holdings S.à r.l. | Q |
Claudas Investments Two Limited |  | Barclays Europe Client Nominees | Y | Barclays Luxembourg Global Funding S.à r.l. |  |
Gallen Investments Limited |  | Designated Activity Company |  | Barclays Luxembourg Holdings S.à r.l. | G, N |
Hurley Investments No.1 Limited |  | Barclays Europe Firm Nominees Designated | Y | Barclays Luxembourg Holdings SSC | B |
JV Assets Limited (In liquidation) |  | Activity Company |  | Barclays Pelleas Investments S.à r.l. |  |
Mintaka Investments No. 4 Limited |  | Barclays Europe Nominees Designated | Y | - 68-70 Boulevard de la Petrusse, L-2320 |  |
OGP Leasing Limited |  | Activity Company |  | Adler Toy Holding Sarl |  |
Palomino Limited | A, Y | -70 Sir John Rogerson’s Quay, Dublin 2 |  | -10 rue du Château d’Eau, Leudelange, |  |
Pelleas Investments Limited | A | Barclays Finance Ireland |  | Grand Duchy of Luxembourg, L-3364 |  |
Pippin Island Investments Limited | A | - 25-28 North Wall Quay, Dublin 1, |  | BPM Management GP SARL | A |
Razzoli Investments Limited | A, D, G | D01H104 |  |  |  |
RVH Limited | A, D, G | Erimon Home Loans Ireland Limited | A | Mauritius |  |
Wessex Investments Limited |  |  |  | - C/O Rogers Capital Corporate Services |  |
- Walkers Corporate Limited, Cayman |  | Isle of Man |  | Limited, 3rd Floor, Rogers House, No.5 |  |
Corporate Centre, 27 Hospital Road, George |  | - P O Box 9, Victoria Street, |  | President John Kennedy Street, Port Louis |  |
Town, KY1- 9008 |  | Douglas, IM99 1AJ |  | Barclays Capital Mauritius Limited (In Liquidation) | A |
Long Island Holding B Limited | A | Barclays Holdings (Isle of Man) Limited (In | A | Barclays Capital Securities Mauritius Limited | A |
|  | Liquidation) |  | - Fifth Floor, Ebene Esplanade, 24 |  |
Germany |  | Barclays Nominees (Manx) Limited | A | Cybercity, Ebene |  |
- TaunusTurm, Taunustor 1, 60310, |  | Barclays Private Clients International Limited | A, H, I | Barclays Mauritius Overseas Holdings Limited | A |
Frankfurt |  |  |  |  |  |
Barclays Capital Effekten GmbH (In liquidation) | A | Japan |  | Mexico |  |
- Stuttgarter Straße 55-57, 73033 |  | - 10-1, Roppongi 6-chome, Minato-ku, |  | – Paseo de la Reforma 505, 41 Floor, Torre |  |
Göppingen |  | Tokyo |  | Mayor, Col. Cuauhtemoc, CP 06500 |  |
Holding Stuttgarter Straße GmbH (In Liquidation) |  | Barclays Funds and Advisory Japan Limited |  | Barclays Bank Mexico, S.A. | A, I, K |
|  | Barclays Securities Japan Limited | E, G | Barclays Capital Casa de Bolsa, S.A. de C.V. | A, I, K |
Guernsey |  | Barclays Wealth Services Limited |  | Grupo Financiero Barclays Mexico, S.A. de C.V. | A, I, K |
- PO BOX 41, Floor 2, Le Marchant House, Le |  |  |  | Servicios Barclays, S.A. de C.V. |  |
Truchot, St Peter Port, GY1 3BE |  | Jersey |  |  |  |
Barclays Nominees (Guernsey) Limited (In | A | - 2nd Floor, Gaspé House, 66-72 |  |  |  |
Liquidation) |  | Esplanade, St. Helier, JE1 1GH |  |  |  |
|  | Barclays Services Jersey Limited | A |  |  |

Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 280

Wholly owned subsidiaries | Note | Wholly owned subsidiaries | Note | Other Related Undertakings Unless otherwise stated, the undertakings below are included in the consolidation and the share capital held by the Barclays Bank PLC Group comprises ordinary and/or common shares which are held by subsidiaries of Barclays Bank PLC. The percentage of the nominal value of each share class held by the Barclays Bank PLC Group is provided below.
Monaco |  | Barclays Receivables LLC | C
– 31 Avenue de la Costa, Monte Carlo |  | Barclays Services Corporation |
BP 339 |  | Barclays Services LLC | C
Barclays Private Asset Management |  | Barclays US CCP Funding LLC | C
(Monaco) S.A.M |  | Barclays US Investments Inc. | H, I
|  | Barclays US LLC | D, G
Saudi Arabia |  | BCAP LLC | C
- 3rd Floor Al Dahna Center, 114 Al-Ahsa |  | Curve Investments GP | B
Street, PO Box 1454, Riyadh 11431 |  | Gracechurch Services Corporation |
Barclays Saudi Arabia (In Liquidation) | A | Lagalla Investments LLC |  | Other Related Undertakings | % | Note
|  | Long Island Holding A LLC | C | United Kingdom |  |
Singapore |  | Marbury Holdings LLC |  | – 1 Churchill Place, London, E14 5HP |  |
- 10 Marina Boulevard, #25-01 Marina Bay |  | Procella Investments No.2 LLC | C | PSA Credit Company Limited (In Liquidation) | 100.00 | A,H, I, J
Financial Centre, Tower 2, 018983 |  | Procella Investments No.3 LLC | C | – 3 - 5 London Road, Rainham, Kent, ME8 7RG |  |
Barclays Capital Futures (Singapore) Private |  | Preferred Liquidity, LLC | H | Trade Ideas Limited | 20.00 | A,Y
Limited (In Liquidation) |  | Relative Value Holdings, LLC |  | – 50 Lothian Road, Festival Square, |  |
Barclays Capital Holdings (Singapore) | A | Surrey Funding Corporation |  | Edinburgh, EH3 9WJ |  |
Private Limited (In Liquidation) |  | Sussex Purchasing Corporation |  | Equistone Founder Partner II L.P. | 20.00 | A,B,Y
Barclays Merchant Bank (Singapore) Ltd |  | Sutton Funding LLC | C | Equistone Founder Partner III L.P. | 35.00 | A,B,Y
|  | US Secured Investments LLC | O | – Enigma, Wavendon Business Park |  |
Spain |  | Verain Investments LLC |  | Milton Keynes, MK17 8LX |  |
- Calle Jose, Abascal 51, 28003, Madrid |  | Wilmington Riverfront Receivables LLC | R, S | Intelligent Processing Solutions Limited | 19.50 | A,Y
Barclays Tenedora De Inmuebles SL. | A | - Corporation Service Company, 100 Pearl Street |  |  |  |
BVP Galvani Global, S.A.U. | A | 17th Floor, MC-CSC1, Hartford, CT 06103 |  | Korea, Republic of |  |
|  | Barclays Capital Inc. |  | - 18th Floor, Daishin Finance Center, |  |
Switzerland |  | - Corporation Service Company, 80 State Street |  | 343, Samil-daero, Jung-go, Seoul |  |
- Chemin de Grange Canal 18-20, PO Box |  | Albany, NY, 12207-2543 |  | Woori BC Pegasus |  |
3941, 1211, Geneva |  | Barclays Equity Holdings Inc. |  | Securitization Specialty Co. Limited | 70.00 | A, W
Barclays Bank (Suisse) SA |  | -CorporationServiceCompany,2626 |  |  |  |
BPB Holdings SA |  | Glenwood Ave, Suite 550, Raleigh, NC, 27608 |  | Luxembourg |  |
|  | Barclays US GPF Inc. |  | - 9, allée Scheffer, L-2520 |  |
Taiwan (Province of China) |  | Equifirst Corporation (In Liquidation) |  | Preferred Funding S.à r.l. | 100.00 | P
19F-1, No. 7 , Xinyi Road, Sec. 5, Taipei, |  | -Aon Insurance Managers, 76 Paul Street |  | Preferred Investments S.à r.l. | 100.00 | G, P
11049, Taiwan |  | Suite, 500, Burlington VT 05401 |  |  |  |
Barclays Securities Taiwan Limited |  | Barclays Insurance U.S. Inc. |  | Malta |  |
|  |  |  | - RS2 Buildings, Fort Road, |  |
United States |  | Zimbabwe |  | Mosta MST 1859 |  |
- Corporation Service Company, |  | - 2 Premium Close, Mount Pleasant Business |  | RS2 Software PLC | 18.25 | A,Y
251 Little Falls Drive, Wilmington, DE 19808 |  | Park, Mount Pleasant, Harare |  |  |  |
Analytical Trade Holdings LLC |  | Branchcall Computers (Pvt) Limited (In liquidation) | A | United States of America |  |
Analytical Trade Investments LLC | P |  |  | - Corporation Trust Company, |  |
Barclays Bank Delaware | D, G |  |  | Corporation Trust Centre, 1209 |  |
Barclays Capital Derivatives Funding LLC | C |  |  | Orange Street, Wilmington DE |  |
Barclays Capital Energy Inc. |  |  |  | 19801 |  |
Barclays Capital Equities Trading GP | B |  |  | DG Solar Lessee, LLC | 75.00 | C, V
Barclays Capital Holdings Inc. | E, F, G |  |  | DG Solar Lessee II, LLC | 75.00 | C, V
Barclays Capital Real Estate Finance Inc. |  |  |  | VS BC Solar Lessee I LLC | 50.00 | C, V
Barclays Capital Real Estate Holdings Inc. |  |  |  | 1415 Louisiana Street, Suite |  |
Barclays Capital Real Estate Inc. |  |  |  | 1600, TX 77002-0000 |  |
Barclays Commercial Mortgage Securities LLC | C |  |  | Sabine Oil & Gas Holdings, Inc | 22.12 | Y
Barclays Dryrock Funding LLC | C |  |  |  |  |
Barclays Electronic Commerce Holdings Inc. |  |  |  |  |  |
Barclays Financial LLC | C |  |  |  |  |
Barclays Group US Inc. |  |  |  |  |  |
Barclays Oversight Management Inc. |  |  |  |  |  |

Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 281

Subsidiaries by virtue of control The related undertakings below are subsidiary undertakings in accordance with s.1162 Companies Act 2006 by virtue of the fact that the Barclays Bank PLC Group can exercise dominant influence or control over them. |  |  |  |  |  |
Subsidiaries by virtue of control | % | Note |  |  |  |  |  |
United Kingdom |  |  |  |  |  |  |  |
- 1 Churchill Place, London, |  |  |  |  |  |  |  |
E14 5HP |  |  |  |  |  |  |  |
Oak Pension Asset | 0.00 | Y |  |  |  |  |  |
Management Limited |  |  |  |  |  |  |  |
Water Street Investments Limited | 0.00 | Y |  |  |  |  |  |
Cayman Islands |  |  |  |  |  |  |  |
- PO Box 309GT, Ugland |  |  |  |  |  |  |  |
House South Church Street, |  |  |  |  |  |  |  |
Grand Cayman, KY1-1104 |  |  |  |  |  |  |  |
Hornbeam Limited | 0.00 | Y |  |  |  |  |  |
Guernsey |  |  |  |  |  |  |  |
- P.O. Box 33, Dorey Court, |  |  |  |  |  |  |  |
Admiral Park, St. Peter Port, |  |  |  |  |  |  |  |
GY1 4AT |  |  |  |  |  |  |  |
Barclays UKRF No.1 IC Limited | 0.00 | Y |  |  |  |  |  |
Barclays UKRF ICC Limited | 0.00 | Y |  |  |  |  |  |
Barclays UKRF No.2 IC Ltd | 0.00 | Y |  |  |  |  |  |

Notes to the financial statements
Other disclosure matters

home.barclays/annualreport | Barclays Bank PLC Annual Report | 282

Notes
The term Barclays Bank Group refers to Barclays Bank PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis
compares the year ended 31 December 2022 to the corresponding twelve months of 2021 and balance sheet analysis as at 31 December 2022 with
comparatives relating to 31 December 2021. The historical financial information used for the purposes of such analysis has been restated. The
abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent
millions and thousands of millions of US Dollars respectively; and the abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of Euros
respectively.
There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing
adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time.
Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards
(IFRS) are explained in the results glossary that can be accessed at home.barclays/investor-relations/reports-and-events.
The information in this document, which was approved by the Board of Directors on 14 February 2023, does not comprise statutory accounts within the
meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2022, which contain an unmodified audit
report under Section 495 of the Companies Act 2006 (which does not make any statements under Section 498 of the Companies Act 2006), will be
delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.
These results will be filed on a Form 20-F with the US Securities and Exchange Commission (SEC) as soon as practicable following their publication.
Once filed with the SEC, a copy of the Form 20-F will be available from the Barclays Investor Relations website at home.barclays/annualreport and from
the SEC’s website at www.sec.gov.
The Barclays Bank Group is a frequent issuer in the debt capital markets and regularly meets with investors via formal road-shows and other ad hoc
meetings. Consistent with its usual practice, t he Barclays Bank Group expects that from time to time over the coming half year it will meet with investors
globally to discuss these results and other matters relating to the Barclays Bank Group.
Forward-looking statements
This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended,
and Section 27A of the US Securities Act of 1933, as amended, with respect to the Barclays Bank Group. The Barclays Bank Group cautions readers that
no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could
differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by the fact that they do not
relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’,
‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Forward-looking statements can be
made in writing but also may be made verbally by directors, officers and employees of the Barclays Bank Group (including during management
presentations) in connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or
relating to the Barclays Bank Group’s future financial position, income levels, costs, assets and liabilities, impairment charges, provisions, capital,
leverage and other regulatory ratios, capital distributions (including dividend policy and share buybacks), return on tangible equity, projected levels of
growth in banking and financial markets, industry trends, any commitments and targets (including environmental, social and governance (ESG)
commitments and targets), business strategy, plans and objectives for future operations and other statements that are not historical or current facts. By
their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking
statements speak only as at the date on which they are made. Forward-looking statements may be affected by a number of factors, including, without
limitation: changes in legislation, regulation and the interpretation thereof, changes in IFRS and other accounting standards, including practices with
regard to the interpretation and application thereof and emerging and developing ESG reporting standards; the outcome of current and future legal
proceedings and regulatory investigations; the policies and actions of governmental and regulatory authorities; the Barclays Bank Group’s ability along
with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively; environmental, social and
geopolitical risks and incidents and similar events beyond the Barclays Bank Group's control; the impact of competition; capital, leverage and other
regulatory rules applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions, including inflation;
volatility in credit and capital markets; market related risks such as changes in interest rates and foreign exchange rates; higher or lower asset
valuations; changes in credit ratings of any entity within the Barclays Bank Group or any securities issued by it; changes in counterparty risk; changes in
consumer behaviour; the direct and indirect consequences of the Russian invasion of Ukraine on European and global macroeconomic conditions,
political stability and financial markets; direct and indirect impacts of the coronavirus (COVID-19) pandemic; instability as a result of the UK’s exit from
the European Union (EU), the effects of the EU-UK Trade and Cooperation Agreement and any disruption that may subsequently result in the UK and
globally; the risk of cyber-attacks, information or security breaches or technology failures on the Barclays Bank Group’s reputation, business or
operations; the Barclays Bank Group's ability to access funding; and the success of acquisitions, disposals and other strategic transactions. A number of
these factors are beyond the Barclays Bank Group’s control. As a result, the Barclays Bank Group’s actual financial position, results, financial and non-
financial metrics or performance measures or its ability to meet commitments and targets may differ materially from the statements or guidance set
forth in the Barclays Bank Group’s forward-looking statements. Additional risks and factors which may impact the Barclays Bank Group’s future
financial condition and performance are identified in Barclays Bank PLC’s filings with the SEC (including, without limitation, Barclays Bank PLC’s Annual
Report on Form 20-F for the financial year ended 31 December 2022), which are available on the SEC’s website at www.sec.gov.
Subject to Barclays Bank PLC's obligations under the applicable laws and regulations of any relevant jurisdiction (including, without limitation, the UK
and the US), in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
References to Strategic Report
This document contains references throughout to the Barclays Bank PLC Strategic Report and Pillar 3 Report. References to the aforementioned reports
are made for information purposes only, and information found in said reports is not incorporated by reference into this document.

home.barclays/annualreport | Barclays Bank PLC Annual Report | 283