Barclays Bank UK PLC 2021 Annual Report

Barclays Bank UK PLC
Annual Report
31 December 2021
Contents
Page
Strategic Report
Performance review 2
Managing risk 5
Performance measures 7
Our people and culture 9
Having regard to our stakeholders in Board decision-making 11
Environment, Social and Governance Report 13
Governance
Chair’s introduction 17
Governance Report 19
(including our Corporate Governance Statement)
Directors’ Report 28
Risk review
Risk review contents 32
Risk management strategy 35
Material existing and emerging risks 37
Climate change risk management 49
Principal risk management 52
Risk performance 59
Supervision and regulation 120
Financial statements
Financial statements contents 124
Consolidated financial statements 134
Notes to the financial statements 142
home.barclays/annualreport 1 Barclays Bank UK PLC Annual Report

Strategic Report
Performance review
The Strategic Report was approved by the Board of Directors on 22 February 2022 and signed on their behalf by the Chair.
Overview
Barclays Bank UK PLC (the Company) is a wholly-owned subsidiary of Barclays PLC. The consolidation of Barclays Bank UK PLC and its
subsidiaries is referred to as the Barclays Bank UK Group. The term Barclays refers to Barclays PLC, or depending on context, the Barclays
Group as a whole, and Barclays Group refers to Barclays PLC, together with its subsidiaries.
Barclays Bank UK PLC is the ring-fenced bank within the Barclays Group. The Barclays Bank UK Group contains the majority of the Barclays
Group’s Barclays UK division, including the Personal Banking, Business Banking and Barclaycard Consumer UK businesses other than the
Barclays Partner Finance business.
Our structure
Barclays is one of the most recognisable brands in the UK. We serve customers across a wide range of retail banking needs, from credit
card users, to start-up businesses, to homebuyers getting on the property ladder for the first time.
Personal Banking
Offers retail solutions to help customers with their day-to-day banking needs.
Business Banking
Serves business clients, from high growth start-ups to small and medium-sized businesses, with specialist advice for their business banking
needs.
Barclaycard Consumer UK
A leading credit card provider, offering flexible borrowing and payment solutions, while delivering a leading customer experience.
Barclays Bank UK PLC is supported by the Barclays Group service company, Barclays Execution Services Limited (BX), which provides
technology, operations and functional services to businesses across the Barclays Group.
Market and operating environment

The COVID-19 pandemic and low interest rate environment continued to have a significant impact on our consumer businesses in the
Barclays Bank UK Group. It accelerated a number of existing trends in customer behaviour, including a declining use of cash for
transactions, lower footfall across our branch network and consumers saving more and paying down existing debt.
There continues to be a significant shift towards digital adoption and demand for digital financial services to meet day-to-day needs,
including for online shopping and contactless payments. This significant shift towards digital, combined with the effect of the Covid-19
pandemic restrictions, has unfortunately attracted more criminal behaviour and there has been a consequent increase in fraud and scams
in 2021. We are committed to combatting this. Whilst we have seen an increase in the number of customers moving to digital, there
remains a cohort of customers where we continue to observe more traditional forms of engagement.
Strategic priorities
We aim to provide customers with banking services in new and innovative ways, embracing technology as a means of making things
simpler, more transparent and more secure.
We are focused on the following areas:
1. Providing exceptional service and insights to customers: We aim to provide simple, relevant and prompt services and propositions for
our customers so they have greater choice and access to money management capabilities. Using the quality and scale of our data
insights, our ambition is to help customers better manage their finances and make informed financial decisions.
2. Driving technology and digital innovation: We continue to invest in our digital capabilities, upgrading our systems, moving to cloud
technology and implementing automation of manual processes. This is intended to allow delivery of a more personalised digital
experience, reduce cost and create additional capacity to support more of our customers. It aims to provide capability to unlock new
sources of income, drive service and improve financial inclusion.

Strategic Report
Performance review
3. Continuing to grow our business: We are pursuing partnership opportunities to build and deliver better propositions and services for
our customers. We aim to use the Barclays platform to provide better service to Barclays customers and open up new income streams.
4. Evolving our societal purpose: We are working to support the communities we serve. We are focused on financial inclusion and
recognise our role in supporting people and businesses make the transition to a low-carbon economy. We also seek to preserve access
to cash for consumers and businesses over the long term.
Year in review
Customers
• We helped 48,000 first time buyers onto the property ladder, up 92% on 2020, and the highest number we have seen in recent history.
We have continued to support customers with their home buying needs and have had a record performance in mortgage completions,
particularly through the second half of the year. We have delivered 7% growth in net mortgage balances this year.
• We remain focused on bringing customer complaints down, recognising we still have a long way to go. With that said, we were
encouraged to see complaints were lower than in the previous year, decreasing 17% even as volumes of customer transactions and
a
interactions grew. Unfortunately, we also saw a disappointing decline in Net Promoter Scores (NPS ) for the Barclays Bank UK Group’s
UK banking and Barclaycard UK businesses throughout 2021 at +11 and +4 respectively. We recognise there is much more to do.
• We continued to build strategic partnerships, including launching a new collaboration with British Airways and Avios, allowing eligible
Barclays customers to link their Barclays accounts to their British Airways Executive Club membership to earn more Avios points
through everyday banking.
Digital
• We continued to make strides to enhance the Barclays app. This year, we reached 10m registrations on the Barclays app and exceeded
over 3 billion logins. We introduced an in-app self-serve feature for customers in financial difficulty who require assistance with making
repayments on their credit card. We launched our first in-app subscription product, allowing new and existing customers to subscribe
to the Telegraph via the Barclays app.
• As part of our aim to deliver a leading money management experience, we delivered more tools and features to educate customers on
managing their money. Through the use of our digital platforms, Barclays Digital Eagles and Money Mentors, we helped customers
build financial confidence and plans, and save more money through our budgeting tools.
• We made progress on our digital on-boarding proposal, automating the procedure to enable our customers to open new accounts with
minimal fuss. This created additional capacity for branch colleagues and made it simple and easy for the over 1m new-to-bank
customers who visit our branches each year to complete the required on-boarding steps.
Sustainability and Social Purpose
• We were one of the first major UK lenders to launch a Green Home Mortgage in 2018, and to date we have completed over £1bn in
Green Home Mortgages. In 2021 we expanded the eligibility criteria of our Green Home Mortgage to include any new build properties
meeting energy efficiency requirements. This has now also been expanded to include customers purchasing a new build, energy
efficient buy-to-let property.
• We extended the expiry date on our cards from every three years to every five years, saving virgin plastic. We have expanded our
offering of environmentally friendly materials to all Barclays debit cards and Barclaycard credit cards in the UK.
• Led by our Business Bank, we joined the Banking for Impact on Climate and Agriculture (B4ICA), an inter-bank group focused on
developing a means for the measurement and disclosure of the greenhouse gas emissions of banking portfolios in the agricultural
sector.
• In the Business Bank, we launched a proposition to support the development and growth of the Social Business sector, comprising a
combination of access to finance, skills and networks to help social entrepreneurs build their impact.
Note
a ®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.

Strategic Report
Performance review
Looking ahead
Our aim remains putting customers and clients at the heart of the decisions we make, helping to ensure good customer outcomes for every
customer and client. We are endeavouring to reinvent our service model for customers, creating a more efficient, more resilient and
seamless service at a pace that suits our customers’ expectations.
More interactions are moving to digital and virtual channels and fewer customers are using our branch network. Where traditional
branches may have been the most appropriate point of engagement in the past, we will increase the range of more flexible options for our
customers, whilst ensuring we continue to support customers who are less digitally capable. This will continue to include physical
branches, complemented with flexible banking pop-ups in community spaces, the introduction of mobile banking vans and shared
services, including shared Banking Hubs and ATMs. We will continue to play a leading role collaborating with the Access to Cash Group,
and plans are underway to help retailers supply cashback without purchases, ensuring greater accessibility of cash in local and remote
areas.
We continue to build partnerships in the open market and work across the Barclays Bank UK Group to deliver additional value for our
customers and businesses through our size and scale. We will continue to invest in digital platforms, remove unnecessary processes and
costs and make it seamless for customers to self-serve.
We are acutely aware of increasing consumer expectations on climate and sustainability. We are committed to inspiring and supporting our
customers to live and act more sustainably through our propositions.
Measuring success
• Income (2020: £6.4bn, 2021: £6.5bn)
• Operating expenses (2020: £4.6bn, 2021: £4.7bn)
• Profit before tax (2020: £0.4bn, 2021: £2.2bn)
• Return on tangible equity (2020: 3.2%, 2021: 17.6%)
Growing with society

Our success is judged not only by commercial performance, but also by our contribution to society and how we act responsibly for the
common good and the long term. These outcomes are mutually dependent. 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, and through the commitments
we make to support our communities. We prize sustainability, and recognise our role to play in leaving things better than we found them.
We cannot be successful in the long term without recognising that we are at our best when our clients, customers, communities, and
colleagues all progress. For detail on our integration of social and environmental issues into our business, please refer to our Environment,
Social and Governance (ESG) Report on pages 13 to 15 and pages 51 to 104 in the Barclays PLC 2021 Annual Report.
Addressing climate change is an urgent and complex challenge. It requires a fundamental transformation of the global economy, so that
society stops adding to the total amount of greenhouse gases in the atmosphere. The financial sector has a critical role to play in
a
supporting the economy to reach this. It is estimated that at least $3-5 trillion of additional investment will be needed each year, for the
next 30 years, in order to finance the transition. At Barclays, we are determined to play our part. In March 2020, we announced our
ambition to be a net zero bank by 2050, becoming one of the first banks to do so.
We have a strategy, in three parts, to put that ambition into action:

• Net zero operations – Barclays is working to achieve net zero operations
• Reducing our financed emissions – Barclays is aligning its financing portfolios in every sector, with the goals and timelines of the
Paris Climate Agreement and restricting financing of non-Paris Agreement aligned activity
• Financing the transition – Barclays is providing the green and sustainable finance required to transform the economies we serve
Our strategy is underpinned by the way we assess and manage our exposure to climate-related risk. You can read more about Barclays’
approach to climate risk in the Barclays PLC Task Force on Climate-Related Financial Disclosures (TCFD) Report.
Our approach to environmental and social issues is grounded in the work we do every day, right across our business, supported in turn by
the governance and oversight of our management and Board structures.
Barclays was one of the 30 founding banks of the Principles for Responsible Banking, which help to align banks with society’s goals as
expressed in the Paris Climate Agreement and the United Nations’ Sustainable Development Goals.
We engage directly 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.
For an overview of the Barclays Bank UK Group’s approach to managing climate change risk, please refer to pages 49 to 51 in the climate
change risk management section. You can read more about our approach to ESG issues in our ESG Report on pages 13 to 15 and in the
ESG section of the Barclays PLC 2021 Annual Report.
Note
a $3-5trn as estimated in the GFMA/BCG (Global Financial Markets Association/Boston Consulting Group) Climate Finance Markets and the Real Economy
report, December 2020

Strategic Report
Managing risk
The Barclays Bank UK 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

Within the Barclays Bank UK Group, risks are identified and overseen through 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 Bank UK Group identifies and manages its risks. The ERMF is approved by the Barclays
PLC Board on the recommendation of the Barclays Group Chief Risk Officer; it is then adopted by the Barclays Bank UK Group with minor
modifications where needed.
The management of risk is 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 Group’s ambition to be a net zero bank by 2050, it
was agreed that climate risk would become a Principal Risk from 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 UK Group may choose to adopt a lower risk appetite than allocated to it by the Barclays Group. A Barclays Group level
climate risk appetite was recently introduced in line with the Barclays Group’s risk appetite approach.
Three lines 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.
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 UK PLC Board and the
Executive Committee on the effectiveness of governance, risk management and control over current, systemic and evolving risks.
Although the Legal function does not sit in any of the three lines, it works to support them all and plays a key role in overseeing Legal risk
throughout the Barclays Bank UK Group. The Legal function is also subject to oversight from the Risk and Compliance functions (second
line) with respect to the management of operational and conduct risks.
Monitoring the risk profile

Together with a strong governance process, using business and the Barclays Group level Risk Committees as well as Board level forums,
the Barclays Bank UK PLC Board receives regular information in respect of the risk profile of the Barclays Bank UK Group. Information
received includes measures of risk profile against risk appetite as well as identification of new and emerging risks.
During 2021, the Barclays Group ran a range of stress tests to assess its capital adequacy and resilience under severe but plausible
macroeconomic scenarios, with Barclays Bank UK PLC participating in these activities. The internal stress test scenario was based on
current economic imbalances such as supply chain issues and labour shortage deteriorating further due to post COVID-19 heightened
demand and climate transition pressures. This resulted in high inflation and unexpected increases in base rates (both in the UK and the US)
causing an affordability stress for retail customers and corporates, along with hindering the post COVID-19 recovery in terms of gross
domestic product (GDP) and unemployment. In addition, Barclays participated in the Bank of England (BoE) Solvency Stress Test which
was a reverse stress test modelling a pessimistic view of the aftermath of the 2020 COVID-19 crisis with more severe shocks (GDP,
Unemployment, and House Price Index (HPI)) than prior stress exercises. The results of these tests met the Barclays Group and the Barclays
Bank UK Group risk appetite and capital adequacy requirements.
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 approach to risk management and risk performance see our full Risk review on pages 49 to 119.

Strategic Report
Managing risk
Risks are classified into Principal Risks, as below How risks are managed
Credit Risk The risk of loss to the Barclays Bank UK Group from the Credit risk teams identify, evaluate, sanction, limit
failure of clients, customers or counterparties (including and monitor various forms of credit exposure,
sovereigns), to fully honour their obligations to the individually and in aggregate.
Barclays Bank UK Group, including the whole and timely
payment of principal, interest, collateral and other
receivables.
Market Risk The risk of loss arising from potential adverse changes in A range of complementary approaches to identify
the value of the Barclays Bank UK Group’s assets and and evaluate market risk are used to capture
Principal liabilities from fluctuation in market variables including, exposure to market risk. These are measured,
Risk but not limited to, interest rates, foreign exchange, equity limited and monitored by market risk specialists.
prices, commodity prices, credit spreads, implied
volatilities and asset correlations.
Treasury Liquidity Risk: Treasury and capital risk is identified and managed
and Capital The risk that the Barclays Bank UK Group is unable to by specialists in Capital Planning, Liquidity, Asset
Risk meet its contractual or contingent obligations or that it and Liability Management and Market Risk. A
does not have the appropriate amount, tenor and range of approaches are used appropriate to the
composition of funding and liquidity to support its assets. risk, such as limits; plan monitoring; and stress
Capital Risk: testing.
The risk that the Barclays Bank UK 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 UK Group’s pension plans.
Interest Rate Risk in the banking book:
The risk that the Barclays Bank UK 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 The Barclays Bank UK Group assesses and
from climate change through physical risks, risks manages its climate risk across its businesses and
associated with transitioning to a low-carbon economy functions in line with its net zero ambition by
and connected risks arising as a result of second order monitoring exposure to elevated risk sectors,
impacts on portfolios of these two drivers. 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 UK Group).
Operational The risk of loss to the Barclays Bank UK Group from The Barclays Bank UK Group assesses and
Risk inadequate or failed processes or systems, human factors manages its operational risk and control
or due to external events (for example fraud) where the environment across its businesses and functions
root cause is not due to credit or market risks. with a view to maintaining an acceptable level of
residual risk.
Model Risk The potential for adverse consequences from decisions Models are evaluated for approval prior to
based on incorrect or misused model outputs and reports. implementation, and on an ongoing basis.
Conduct The risk of poor outcomes for, or harm to, customers, The Compliance function sets the minimum
Risk clients and markets, arising from the delivery of the standards required, and provides oversight to
Barclays Bank UK Group’s products and services. monitor that these risks are effectively managed
and escalated where appropriate.
Reputation The risk that an action, transaction, investment, event, Reputation risk is managed by embedding our
Risk decision, or business relationship will reduce trust in the purpose and values, and maintaining a controlled
Barclays Bank UK Group’s integrity and/or competence. culture within the Barclays Bank UK Group, with the
objective of acting with integrity, enabling strong
and trusted relationships to be built with customers
and clients, colleagues and broader society.
Legal Risk The risk of loss or imposition of penalties, damages or The Legal function supports colleagues in
fines from the failure of the Barclays Bank UK Group to identifying and limiting legal risks.
meet its legal obligations, including regulatory or
contractual requirements.
Note
The ERMF defines nine Principal Risks. For further information on the how these Principal Risks apply specifically to Barclays Bank UK Group, please see pages
52 to 58.

Strategic Report
Performance measures
Financial performance measures

The performance of Barclays Bank UK PLC contributes to the Barclays Group, upon which the delivery of strategy is measured.
Income statement
Barclays Bank UK Group results 2021 2020

For the year ended 31 December £m £m
Total income 6,482 6,424
Credit impairment charges 371 (1,427)
Net operating income 6,853 4,997
Operating costs (4,640) (4,603)
Litigation and conduct (51) (43)
Total operating expenses (4,691) (4,646)
Profit on disposal of subsidiaries, associates and joint ventures 1 16
Profit before tax 2,163 367
Taxation (294) 12
Profit after tax 1,869 379
Attributable to:
Equity holders of the parent 1,696 199
Other equity instrument holders 173 180
Income statement commentary

Profit before tax was £2,163m (2020: £367m). The Barclays Bank UK Group continued to deliver growth in balances throughout 2021,
increasing mortgage lending by £9.9bn and growing deposits by £20.2bn, adding to a strong liquidity position.
Total income increased 1% to £6,482m, consisting of:
• Personal Banking income increased 10% to £4,001m, reflecting strong growth in mortgages, alongside improved margins during the
first three quarters, balance growth in deposits and the non-recurrence of COVID-19 customer support actions. This was partially
offset by deposit margin compression from lower interest rates and lower unsecured lending balances
• Barclaycard Consumer UK income decreased 18% to £1,252m, as repayments by customers and reduced borrowing resulted in a lower
level of interest earning lending (IEL) balances. However, IEL balances began to stabilise throughout the second half of 2021
• Business Banking income increased 7% to £1,401m due to lending and deposit balance growth from £12.1bn of government scheme
lending and the non-recurrence of COVID-19 and related customer support actions, partially offset by deposit margin compression
from lower interest rates
• Head Office expense of £172m, primarily due to the impact of hedge accounting
There was a credit impairment net release of £371m (2020: £1,427m charge) driven by an improved macroeconomic outlook and lower
unsecured lending balances due to customer repayments and lower delinquencies. As at 31 December 2021, 30 and 90 day arrears rates
in UK cards were 1.0% (Q4 2020: 1.7%) and 0.2% (Q4 2020: 0.8%) respectively.
Total operating expenses were broadly stable at £4,691m (2020: £4,646m) primarily reflecting increased investment spend, including
structural cost actions of £288m (2020: £150m), offset by efficiency savings.
The tax charge was £294m (2020: £12m tax credit) due to a higher level of profit in 2021. However, this includes a £196m tax benefit
recognised for the re-measurement of the Barclays Bank UK Group’s deferred tax assets as a result of the enactment in 2021 of a UK
corporation tax rate increase from 19% to 25% effective from 1 April 2023.

Strategic Report
Performance measures
Balance sheet information

The following assets and liabilities represent key balance sheet items for the Barclays Bank UK Group:
2021 2020
As at 31 December £m £m
Assets
Loans and advances at amortised cost 220,271 211,649
Financial assets at fair value through other comprehensive income 14,945 26,026
Cash and balances at central banks 69,488 35,218
Liabilities
Deposits at amortised cost 260,732 240,535
Balance sheet commentary

Loans and advances to customers at amortised cost increased 4% to £220.3bn predominantly driven by £9.9bn of mortgage growth
following a strong flow of new applications as well as strong customer retention, offset by a £2.2bn decrease in the Education, Social
Housing and Local Authority (ESHLA) portfolio carrying value as interest rate yield curves have steepened, £0.7bn lower unsecured lending
balances and £0.6bn lower Business Banking balances as repayment of government scheme lending takes effect.
Customer deposits at amortised cost increased 8% to £260.7bn reflecting an increase of £16.6bn and £3.5bn in Personal Banking and
Business Banking respectively, further strengthening the liquidity position.
Cash at central banks increased 97% to £69.5bn as a result of a larger liquidity pool, predominantly due to increased customer deposits.
Financial assets at fair value through other comprehensive income decreased by 43% to £14.9bn due to the sale of held to collect
portfolios on the back of favourable market conditions.
a
Other metrics and capital
As at 31 December 2021 2020

Common equity tier 1 (CET1) ratio 15.2% 15.6%
Total risk weighted assets (RWAs) £71.2bn £72.0bn
Average UK leverage ratio 5.5% 5.6%
Note
a Capital, RWAs and leverage are calculated applying the IFRS 9 transitional arrangements of the Capital Requirement Regulation (CRR) as amended by the
Capital Requirement Regulation II (CRR II).
Capital commentary
The Barclays Bank UK Group CET1 ratio as at 31 December 2021 was 15.2%, which is above regulatory capital minimum requirements.
RWAs decreased to £71.2bn (December 2020: £72.0bn) driven by a reduction in unsecured lending and the value of the ESHLA portfolio,
partially offset by growth in mortgages.
Non-financial performance measures

Barclays Bank UK 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 UK PLC has addressed the Non-Financial Reporting requirements contained in sections 414CA and 414CB of the Companies
Act 2006 (the Act) through the disclosure contained in the Barclays PLC 2021 Annual Report on pages 49 to 50.

Strategic Report
Our people and culture
We want to recruit, retain and engage the talented people that Barclays needs to succeed, providing an environment that enables them to
build their careers and achievements.
A culture of togetherness
Our colleagues are critical to our success. We know that the past two years have been challenging for a lot of our people, in different ways,
impacting both our personal and professional lives. We are proud of the way colleagues responded to these challenges, and for the way
they have continued to support our customers and clients around the world. We have learnt a lot about ourselves over this period, and we
have invested in supporting people in a number of ways. In particular, our focus has been on culture, mindset, wellbeing and development.
As ever, our approach is informed by the latest thinking in behavioural and data science, and our ability to track effectiveness and progress
over time.
The following sub-sections include a summary of the Barclays Bank UK specific items. For full details, refer to the Our people and culture
section of the Barclays PLC 2021 Annual Report.
The Barclays Mindset

At the beginning of the COVID-19 pandemic, we observed a number of improvements in the way people were working at Barclays. We
reflected on how we could capture these positive developments for the long-term and responded this year by launching the Barclays
Mindset.
The Mindset acts as an operating manual for how to get things done at Barclays. It focuses on three key elements that are core to our
success – Empower, Challenge and Drive. Our research shows that when we demonstrate behaviours aligned to these three elements,
outcomes are better, colleagues are more engaged and they are more likely to stay longer to build their career at Barclays.
Hiring great people

We are focused on hiring people with the skills and capabilities to support our strategy. At the heart of our hiring approach is our ability to
match locations to the local talent pool in that area, including reaching out to local communities and upskilling local students. For example,
our partnerships with universities in Glasgow have been important in developing a robust pipeline of apprentices and graduates at the
global campus we officially opened there this year.
The COVID-19 pandemic has required us to adapt to changes in hiring demands and volumes. This has been particularly important in
customer-facing areas where we know it is critical that we are providing support to our customers.
People with different perspectives and life experiences make our organisation stronger, so we are committed to attracting, developing and
retaining a workforce that is as diverse and inclusive as possible. We are an equal opportunities employer and give full and fair
consideration to all populations based on their competencies, strengths and potential. You can find more information in the Barclays PLC
2021 Diversity and Inclusion Report.
Developing people for the future

At Barclays, we believe that everyone has the potential to continuously grow. We are committed to cultivating a culture of lifelong learning
and our development proposition is designed to support colleagues at every stage of their career. A wide range of development
opportunities are available to help colleagues build their careers.
Building a supportive and inclusive culture

Building a supportive and inclusive culture is not only the right thing to do, but also what is best for our business. It creates a sense of
belonging and enables colleagues to perform to their highest capability.
We focus on six areas of diversity and inclusion: disability, gender, LGBT+, multicultural, multigenerational and socioeconomic inclusion.
We have Employee Resource Groups in place across each of these areas to provide support and advice, create development opportunities
and raise awareness of issues and challenges.
We remain committed to improving the diversity of our leaders and to closing pay gaps at Barclays. We aim for diverse promotion
assessors and panels, helping us to ensure the widest available pool of talent is considered for promotion.
In the UK, we aim to increase the number of under-represented minority employees by 25% by the end of 2025. This will take us to 5%
overall.
This year, we continued to review the provision of Workplace Adjustments for colleagues with disabilities to further our strategy for a more
globally consistent and supportive experience. We encourage managers to check in regularly with their teams and to emphasise the
importance of safe working and appropriate workstation setup. 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 managers 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.
You can find more information on many of these topics in the Barclays PLC 2021 Diversity and Inclusion Report.
Beyond the COVID-19 pandemic

We continue to follow government guidance relating to COVID-19, taking a prudent and considered approach to return to office that
prioritises the health, safety and wellbeing of colleagues.

Strategic Report
Our people and culture
Where possible, and in line with local government guidance, we have undertaken a programme to gradually increase the number of
colleagues returning to working in the office at least some of the time. Throughout the COVID-19 pandemic, we have kept our buildings
operating safely for key workers by maintaining health and safety measures. In advance of colleagues returning, we risk-assessed all our
buildings and provided training to colleagues on the safety measures that would be in place as they returned. We continue to evaluate and
adjust these measures in accordance with government guidance and the latest epidemiology.
Listening to colleagues and keeping them informed

We think colleague engagement should be a two-way exercise, with equal weight placed on listening to our people and on keeping them
informed. We want to be able to consider our colleagues’ perspective when we make decisions, including at the most senior level.
Our Your View survey is the primary mechanism for how we track engagement and monitor our culture. In addition, this year we continued
to run regular Here to Listen surveys, first launched in 2020, to make sure we are staying abreast of colleague feedback during the
COVID-19 pandemic. Results from these regular surveys are shared directly with leadership, so action can be taken to continue to provide
the appropriate support for colleagues.
Please also see the “Colleagues” section of “Having regard to our stakeholders on Board decision-making” on page 12 for details of how we
keep colleagues abreast of changes to our business, evolution of our strategy and other matters that concern them as employees.
We engage with our people collectively through a strong and effective partnership with Unite, as well as colleague forums. We regularly
brief our union partners on the strategy and progress of the business, seeking their input on ways in which we can improve the colleague
experience of working for Barclays. The collective bargaining coverage of Unite in the UK represents 84% of our UK workforce. We consult
in detail with colleague representatives on major change programmes affecting our people. We do this to help us minimise compulsory job
losses, including through voluntary redundancy and redeployment, with a focus on reskilling.
We maintain an engagement approach that is in line with the UK’s Financial Reporting Council (FRC) governance recommendations. This
extends to those who work for us indirectly as well, such as contractors. As of 2021, the Barclays Third Party Code of Conduct (TPCoC)
states that all third parties with greater than 250 employees must demonstrate through annual reporting that effective workforce
engagement mechanisms are in place to provide channels for the workforce to share ideas and concerns with senior management and the
board.
Our policies
Our people policies are designed to recruit the best people, provide equal opportunities and create an inclusive culture, in line with our
Values 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 expect our people to treat each other with dignity and respect, and do not tolerate discrimination, bullying, harassment or victimisation
on any grounds.
We are committed to paying our people fairly and appropriately relative to their role, skills, experience and performance – in a way that
balances the needs of all our stakeholders. That means our remuneration policies reward sustainable performance that is in line with our
Purpose and Values, as well as our risk expectations. You can find more information in the Barclays PLC 2021 Fair Pay Report.
We encourage our people to benefit from Barclays’ performance by enrolling in our share ownership plans, further strengthening their
commitment to the organisation. You can find out more information in the Directors’ Remuneration Report in the Barclays PLC 2021
Annual Report.

Strategic Report
Having regard to our stakeholders in Board decision-making
Section 172(1) Statement

The Directors provide this Statement in order to set out how they have had regard to the matters set out in Section 172(1)(a) – (f) of the
Act 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 on the principal activities of the Board during 2021, please refer to our Governance Report on pages 16 to 31. Details of
how the Barclays Group engages with its stakeholders can be found on pages 14 to 19 of the Barclays PLC 2021 Annual Report and are
incorporated by reference into this Statement.
How does the Board engage with stakeholders?

The relevance of each stakeholder group may differ depending on the particular decision the Board is taking, as may the method of
engagement used by the Board. The Board engages directly with stakeholders on certain issues, but the number and distribution of the
Barclays Bank UK Group’s stakeholders and the size of the Barclays Bank UK Group overall means that stakeholder engagement often takes
place at an operational level. In addition, in order to ensure a more effective and efficient approach, certain stakeholder engagement is led
by the Barclays Group. The Board also receives regular reports from individual business areas and from key Barclays Bank UK Group
functions through reports sent in advance of each Board meeting and through in-person or video-conference presentations. This assists
the Board with understanding the impact of the Barclays Bank UK Group’s operations on, and the interests and views of, the Barclays Bank
UK Group’s key stakeholders.
As a result of its direct interactions and discussion of the reports and information received, the Board has an overview of engagement with
stakeholders, and other relevant factors, which enables the Directors to comply with their legal duty under Section 172(1). In doing so, the
Board has to balance different and, sometimes, competing perspectives which means that it is not always possible to deliver everyone’s
desired outcome or necessarily achieve a positive outcome for all stakeholders.
Engagement in action: evolving our strategy

It is the Board’s responsibility to establish the Barclays Bank UK Group’s strategy. Given its fundamental importance, the Directors
considered matters relevant to the strategy at every scheduled Board meeting in 2021. Throughout the year, a significant amount of time
has been spent with management discussing and thinking about the learnings from the COVID-19 pandemic and the themes that will
shape the future of the Barclays Bank UK Group, including: access to cash; access to banking; customer behaviours and needs; the ability of
colleagues to provide services through remote working; the impact that technology is having on the competitive environment; the
opportunities and threats of digitalisation; and the overarching importance of our environmental and other societal responsibilities. The
outcomes of those detailed discussions have been critical in evolving the Barclays Bank UK Group’s strategy this year.
In the context of providing customers with banking services in new and innovative ways, and embracing technology as a means of making
things simpler, more transparent and more secure, set out below are details of how the Directors have had regard to the matters set out in
Section 172(1)(a) – (f) when discharging their duties, and the effect of those considerations in reaching certain decisions taken by them in
relation to the strategy and, specifically, our four strategic priorities:
• Providing exceptional service and guidance to customers

• Driving technology and digital innovation
• Continuing to grow our business
• Evolving our societal purpose
Further detail on the Barclays Bank UK Group’s strategy, including the four strategic priorities, can be found on pages 2 and 3 of the
Strategic Report.
Customers and clients

As set out in our 2020 Annual Report, the COVID-19 pandemic, together with a low interest rate environment, inevitably brought
challenges for the Barclays Bank UK Group’s consumer businesses. It accelerated a number of existing trends in customer and client
behaviour, which have continued during 2021, including a declining use of cash for transactions and consumers saving more and paying
down existing debt. Our customers and clients have directly told us what their needs are – both in the boardroom, as part of interactive
sessions on customer strategy, and via the Board’s review of regular reporting on complaints, as well as analysis of the key drivers
underpinning customer metrics. We have listened, and we have responded by making the provision of exceptional service and insights to
customers one of our four strategic priorities. What that means in practice is providing simple, relevant and prompt services and
propositions as well as using our data insights to help customers better manage their finances and make informed financial decisions.
In addition, one of the other behavioural trends that was highlighted by the pandemic was the increasing number of customers moving to
digital. The Board is aware that there remains a cohort of customers who are less digitally confident and who will continue to require more
traditional forms of engagement with us; however, we strongly believe that embracing digital innovation and technology, and simplifying
products and services, will - amongst other things - improve access to banking and financial inclusion. Nevertheless, prior to deciding to
accelerate our digital agenda, the Board and the Board Committees:
• engaged with management on digital and technological developments in UK banking and the evolving regulatory landscape in
this respect
• engaged with management on the work of the Access to Cash Action Group, which the Barclays Bank UK Group is part of, in
relation to continuing to preserve access to cash for consumers and businesses over the long-term
• participated in deep dives on key customer metrics (such as complaints and NPS) to better understand the correlation between
digitalisation and customer experience
• received briefings on the opportunities and risks associated with moving to the cloud, upgrading our systems and implementing
rapid automation of manual processes
• received regular reports on the Barclays Bank UK Group’s internal controls framework in order to ensure that a robust control
environment is maintained when driving technology and digital innovation

Strategic Report
Having regard to our stakeholders in Board decision-making
• received regular reports on the Barclays Bank UK Group’s operational and technology capacity, including in relation to
operational resilience and the development of more modern technology platforms
The Board is cognisant that although leveraging technology will allow us to respond quickly and seamlessly to changing customer and
client behaviours and needs, and enable the Barclays Bank UK Group to remain competitive, it is not without risk. We therefore want to
reassure our customers and clients that the Barclays Bank UK Group continues to play an important role in helping to address economic
crime, engaging with its wider stakeholder group, including our regulators and the UK Government, in regard to online safety and scams to
increase customer education and improve their protections.
Colleagues
Colleagues have been kept abreast of changes to our business and the evolution of the strategy through a number of events in 2021,
including our Chief Executive’s weekly vlog, podcasts and roadshows. Colleague engagement is a two-way exercise, with equal weight
placed on listening to our people as it is on keeping them informed. In this regard, the Board has engaged directly with colleagues, both in
person and virtually, in the boardroom and when observing Employee Resource Group meetings, participating in leadership panel events,
reverse mentoring, and through visiting branches, Eagle Labs and operational sites (when COVID-19 rules permitted). The Board has also
listened to feedback on a variety of topics – including our strategy, our inclusive culture, colleague development, future ways of working
and wellbeing (particularly important in the context of supporting colleagues’ needs through the ongoing pandemic) – via the annual Your
View and more regular Hear to Listen surveys. The Board and management have sought to ensure that issues of interest to colleagues have
been taken into account when making decisions. For example, whilst future ways of working will continue to iterate in response to
colleague feedback, we are committed to providing a flexible and adaptable operating model affording colleagues the opportunity of hybrid
working.
We know that our colleagues are central to the successful execution of our strategy, and that we need to ensure that they are empowered
and motivated, and that we are investing in their development in order to embed capabilities and skills for the future (particularly digital
and technology). Our talent development proposition is designed to support colleagues at every stage of their career, but we recognise that
there is always room for improvement. With that in mind, the Board was particularly grateful to those colleagues who participated in an
interactive session with the Directors in order to share their constructive feedback on our talent development programmes. For more
information on our commitment to our people, and the opportunities available to them, please refer to pages 29 to 34 of the Barclays PLC
2021 Annual Report.
Society
We have made a societal commitment to provide access to banking. However, it is inherent in more interactions moving to digital and
virtual channels that fewer customers are using our branches. We are committed to increasing the range of more flexible options available
to our customers and clients to meet their changing demands and needs. This will continue to include physical branches, complemented
with alternative ways for colleagues to be present in community spaces, the introduction of mobile banking vans and shared services,
including shared Banking Hubs and ATMs. Plans are also underway to help retailers supply cashback without purchases, ensuring greater
accessibility of cash in local and remote areas.
In spite of the rapidly changing digital landscape, the Barclays Bank UK Group continues to play an important role in local communities; a
role that goes beyond our physical footprint, as the Board learned when it participated in a briefing session focused on citizenship, societal
purpose and sustainability with colleagues and external partners. Through initiatives such as Eagle Labs and Rebuilding Thriving Local
Economies, the Barclays Bank UK Group is getting even closer to those that need us most across the communities we serve. Similarly,
Barclays Digital Eagles and Money Mentors are helping customers use digital platforms to build financial confidence and plans, whilst
programmes such as LifeSkills are helping young people get the experiences and skills they need to enter the world of work.
Of course, society extends much further than just our local communities, and the Board is acutely aware of increasing customer and client
expectations in relation to climate and sustainability. Over the last year, the Directors have engaged with the Barclays Group and
management in order to gain a more granular understanding of the progress that has been made to date in relation to the Barclays Group’s
climate strategy, and future focus areas. Whilst the availability of products such as our Green Home Mortgage and the recently launched
Green Home Buy-to-Let Mortgage are a step in the right direction, the Board recognises that there remains more to be done. For more
information on our role in society and how the Barclays Bank UK Group is playing its part in helping accelerate the transition to a low-
carbon economy, please refer to page 4 of the Strategic Report and the ESG Report on pages 13 to 15.
Investors
Finally, the Board considers engagement with its shareholder as being crucial to its understanding of the Barclays Group’s strategy and the
Barclays Bank UK Group’s role within that; this has been an important factor in evolving the Barclays Bank UK Group’s strategy this year,
particularly the focus on digitalisation and generating consistent returns for our shareholder and, in turn, its investors over the long-term.
The current engagement model includes the Barclays Group Chairman and Group Chief Executive attending certain Board meetings (by
invitation) in order to discuss Barclays Group matters with the Board and to gain a better understanding of the risks and opportunities of
the retail consumer business. This year, that engagement informed one of the Barclays Group’s three strategic priorities – the delivery of
next-generation, digitised consumer businesses – which will, ultimately, support the Barclays Bank UK Group’s investment priorities. The
Chair’s position on the Barclays PLC Board also ensures the views of the Barclays Bank UK Group are represented at Barclays Group level.
The Directors believe that this engagement model works well and intend to use it again in 2022, supported by any informal engagement
opportunities that may arise during the course of the year.
Crawford Gillies
Chair – Barclays Bank UK PLC
22 February 2022

Environment, Social and Governance Report
Over a period of several years, ESG considerations have become increasingly important to and continue to be embedded into the Barclays
Group’s, and therefore the Barclays Bank UK Group’s, business strategy. Reflecting this trend, Barclays is integrating the way it reports on
ESG matters too by providing this information as part of its Annual Report.
Please see the ESG section of the Barclays PLC 2021 Annual Report for further details. Set out below are some examples of Barclays Bank
UK Group-specific initiatives in this area:
Environment
As part of the overall strategy of the Barclays Group, the Barclays Bank UK Group is determined to play its part in taking a leading role in
helping accelerate the transition to a low-carbon economy. In March 2020, the Barclays Group announced its ambition to be a net zero
bank by 2050. We have a strategy, in three parts, to turn that ambition into action:
Achieving net zero operations
Barclays is working to achieve net zero operations, investing in the continued decarbonisation of our operations. Please see the Barclays
PLC 2021 Annual Report for further details of how we are defining our approach to net zero operations.
Reducing our financed emissions
Barclays is committed to aligning its financing with the goals and timelines of the Paris Agreement.
Financing the transition
Barclays is providing the green and sustainable finance required to transform the economies we serve.
Our strategy is underpinned by the way we assess and manage our exposure to climate-related risks. From 2022, climate risk will be a
Principal Risk under Barclays’ ERMF. Please see pages 41 to 42 of Risk Review for further details.
For more information about how the Barclays Group is helping to tackle climate change, please see the Barclays PLC 2021 TCFD Report.
Scenario analysis forms a key part of the Barclays Group’s, and therefore the Barclays Bank UK Group’s, approach to assessing and
quantifying the impact from climate change. We have developed our approach to scenario analysis through detailed quantitative and
qualitative risk assessments of particular portfolios and activities (for example, we have conducted assessments on the impact of flooding
and subsidence on the Barclays Bank UK Group’s mortgage portfolio). The Barclays Group has developed key metrics and targets to track
progress against its climate strategy. The adoption of consistent and relevant climate-related metrics is crucial for financial sector
stakeholders to properly price and manage climate-related risks. Please see the Barclays PLC 2021 TCFD Report for further details on
scenario analysis and key metrics.
Barclays has relationships with customers and clients across a wide range of sectors and geographies, who face risks to their operations,
supply chains and markets from biodiversity loss and land-use change. Recognising the importance of this agenda, we are developing our
understanding and evaluating where our business impacts and depends on nature, and where we can support our clients. Set out below
are two such initiatives.
Barclays Green Home Mortgages

Barclays Bank UK PLC was one of the first major UK lenders to launch a Green Home Mortgage in 2018, and to date we have completed
over £1bn in Green Home Mortgages.
The Barclays Green Home Mortgage offers residential homebuyers lower interest rates for new build properties with an Energy
Performance Certificate (EPC) band of A or B, compared to our standard products. In April 2021, we expanded the eligibility criteria of our
Green Home Mortgage to include any new build properties meeting energy efficiency requirements. Previously the proposition was
available for properties built by a panel of 14 house builders. In January 2022, we expanded our Green Home Mortgages further extending
the eligibility to customers purchasing a new build energy efficient buy-to-let property.
Further details on Barclays Green Home Mortgages can be found at: https://www.barclays.co.uk/mortgages/green-home-mortgage/
In addition, further details on Barclays Green Buy-To-Let mortgages can be found at: https://www.barclays.co.uk/mortgages/green-buy-
to-let-mortgage/
Banking for Impact on Climate and Agriculture

Led by our Business Bank, we joined the Banking for Impact on Climate and Agriculture (B4ICA), an inter-bank group focused on
developing a means for the measurement and disclosure of the greenhouse gas emissions of banking portfolios in the agricultural sector.

Social
The Barclays Group is determined to make sure we understand our customers’ and clients’ expectations and aspirations, and develop
products and services that support them. Set out below are a number of initiatives the Barclays Bank UK Group has been involved in.
Please see the ESG section of the Barclays PLC 2021 Annual Report for further details.
Access to banking
The banking services we provide and the manner in which they are delivered continue to evolve, driven by the changing needs of our
customers. How we bank today is unrecognisable from 50 years ago. Customers are demanding more convenient, simpler ways to bank
that fit their lives. We are delivering these solutions at pace.
As a part of these changes, it is not just the number, but also the role of the physical branch that is evolving from a place where a
significant number of transactions are completed manually, to one in which customers can be supported to be more financially
empowered and self-sufficient over simple transactions. Using technology, with assistance for vulnerable customers and those that need
help, we are creating space and time for more complex financial conversations.
This ongoing change in behaviour means that as the number of bricks and mortar branches has reduced over time, we are also investing in
new, more flexible ways of serving customers better in the long run. These include temporary and flexible banking pop-ups in community
spaces, libraries and companies, the introduction of mobile banking vans and shared services, including shared Banking Hubs and ATMs.
Alongside our investment in technology enabling 11 million digital customers to access tools and products whenever they need them,
these new destinations will transform everyday banking by making it easier and more convenient, whilst keeping Barclays at the heart of
the community, on a long-term sustainable basis.
We also want customers who rely on cash – in particular, more vulnerable customers, to still be able to access cash and to get the support
they need. This is why, we have joined forces with our competitor banks and consumer groups, the Post Office and LINK, as part of the
Access to Cash Action Group, in an agreement on shared services helping to ensure long-term cash availability across the UK.
In the future, as branch closures are announced, LINK will independently assess remaining cash provision against agreed industry
standards, and where required, in conjunction with local communities, will propose new shared services. The industry will work together to
deploy these services on a shared cost basis, which will include shared Banking Hubs and ATMs. In this way we will help to ensure that no
one is left behind, with every person and small business being guaranteed reasonable access to cash in a sustainable manner.
Alongside these changes, we are continually investing in multi-skilled training for our colleagues so they are better able to serve customers
in ways that meet their needs today. As well as breaking down internal barriers to enable more queries to be resolved by the first person
you speak to at Barclays, whichever way our customers choose to contact us.
Basic current account

Since 2015, we have been offering our basic current account, which meets HM Treasury’s Memorandum of Understanding on basic bank
accounts. There were over 642,000 Barclays basic accounts open at the end of 2021.
Our basic current accounts provide individuals who may not be eligible for a standard account access to banking including; over the
counter services, access to ATMs, and digital banking and free text alerts to manage finances.
Community accounts
We also provide free banking to over 115,000 small not-for-profit organisations through our community accounts, including religious
groups, and local charities.
Digital accessibility
We aim to ensure that our digital services are easy to see, hear, understand and use for all customers, including those with disabilities.
AbilityNet (a leading UK disability charity) has independently accredited for accessibility the key journeys of our online banking website and
mobile app during 2021.
We have strengthened accessibility requirements within our procurement processes, recognising the importance of partnering with
suppliers and giving clear expectations.
We seek to deliver digital services and workplace tools that promote disability inclusion and meet accessibility requirements set out in the
Web Content Accessibility Guidelines (WCAG) 2.1 AA level.
Barclays mortgages and first-time buyers

In 2021, we helped over 150,000 customers take out a mortgage or further borrowing on their property. This included over 48,000 first
time buyers who we helped get onto the property ladder, up 92% from 2020, and the highest number we have seen in recent history. We
have continued to support customers with their home buying needs and have had a record performance in mortgage completions during
2021.
In April 2021, we launched new mortgage products under the government’s Mortgage Guarantee Scheme, enabling us to offer 95% loan
to value mortgages to customers buying their first property or looking to move home.

Our Family Springboard Mortgage allows homebuyers to secure a mortgage with the help of family or friends, while allowing the ‘helper’ to
earn interest at the same time. Homebuyers can obtain a mortgage with only a small deposit or even no deposit. This helps them buy their
property sooner than they would otherwise be able to, provided that their helper (typically parents) deposit 10% of the property purchase
price in a Helpful Start account for five years. Subsequently the funds are released back to the helper.
Economic crime and scams

In what has been a particularly tough year for economic crime and scams across the industry, as scammers have exploited the COVID-19
pandemic, we have increased our efforts to tackle economic crime at all levels. We have supported UK Finance with their national Take Five
campaign, to help keep the public safe through a multi-stage educational campaign, with content across our social media, email, in-app
notifications and media outreach, we are working to arm our customers with the knowledge they need to spot a scam and prevent
themselves from becoming a victim.
We are also proud initial signatories of the Contingent Reimbursement Model Code, providing measures to help prevent Authorised Push
Payments scams taking place and increased consumer protection standards for customers of signatory firms.
However, the ultimate objective must be to stop scams at source, before the criminals can even reach their victims. As such we are playing
a leading role in facilitating greater collaboration across the ‘scams ecosystem’ (including financial services, telecommunications, online
commerce, social media, and other sectors) to deliver a comprehensive and collaborative solution to this urgent societal challenge.
This is why we are founding members of Stop Scams UK, a cross-industry group made up of banks, telecoms and tech firms that have
come together to put an end to scams by collaborating, sharing best practices and engaging with the government and regulators to make
it harder for scammers to operate.
We are also part of a new dedicated hotline for customers to call if they think they are being called by a scammer. The 159 hotline, created
through Stop Scams UK, is a collaboration between nine leading banks that represents 70% of the UK’s current account customers and
telecoms firms representing 80% of UK mobile phones and landlines.

Governance
Governance Page
▪ Chair’s introduction 17
▪ Governance Report
(including our Corporate Governance Statement) 19
▪ Directors’ Report 28

Governance
Chair’s introduction
I am pleased to present our Governance Report for 2021 – my first full year in role as Chair of the Board.
Our purpose and response to the pandemic

At the start of the year, the Barclays Group announced its aim to “deploy finance for the common good and the long term”. This Purpose
has come to the fore in the role the Company has played throughout the COVID-19 pandemic. During 2021, we have continued to take
steps to help ease customers’ and clients’ financial pressures, partnered with the UK Government to support businesses, and provided
investment to local communities at a time of real need. As our attention shifts to economic recovery, whilst acknowledging that the
pandemic is by no means over, the Board remains focused on the important role the Barclays Bank UK Group can and does play in society.
Strategy
As set out in the Section 172(1) Statement on pages 11 to 12 of the Strategic Report, the combination of the pandemic together with a low
interest rate environment has brought into sharper focus the structural changes required to our business model. As a consequence, the
Board has spent a considerable amount of time challenging and contributing to the Barclays Bank UK Group’s strategy this year. The
strategy is deeply rooted in customer and client need, accelerates our digital agenda and creates new business models built around digital
customer and client engagement. Overseeing the execution of the strategy will be the Board’s priority in the years ahead, ensuring good
customer and client outcomes remain at the forefront of our discussions.
Key to successful delivery of the strategy are our colleagues and, in particular, the creation of a diverse and inclusive workforce comprised
of individuals with the requisite capabilities and skills who are empowered and motivated to provide excellent service. Colleague
engagement and retention are also crucial and we believe that culture and, specifically, the embedding of the Barclays Mindset – the three
elements of which are Empower, Challenge and Drive – has an important part to play in this. The Board has engaged, and will continue to
engage, directly with colleagues and listen to feedback from the annual Your View and more regular Hear to Listen surveys so that we can
take into account issues of interest to colleagues when decision-making.
To ensure we deliver consistent returns for our shareholder, and in turn Barclays’ investors, we must have an efficient operating model,
including a cost-effective infrastructure, which responds and adapts to our evolving customer and client expectations whilst remaining
competitive and enabling us to invest for the future. The Board will remain close to the evolution of the operating model, including
increasing the range of more flexible options available to our customers and reshaping our physical footprint in order to better support the
customers we serve. Investment in technology and digital innovation will provide us with the capability to unlock new sources of income,
supporting our continued growth, as well as providing a greater range of services to more customers and clients.
Barclays continues to play a major role in our local communities, that goes much wider than our branches and business teams. In 2021, in
addition to the usual reporting, the Board participated in an excellent immersive session with colleagues and external partners focused on
citizenship, societal purpose and sustainability. We look forward to continuing to engage on these very important topics, in particular, on
climate change. The Barclays Bank UK Group – as part of the Barclays Group – is playing its part in helping accelerate the transition to a
low-carbon economy. Please refer to page 4 of the Strategic Report, and the ESG Report on pages 13 to 15, for further detail.
Our strategy will continue to evolve to respond to external factors, including changes arising from the political and regulatory landscape. Of
particular note this year was the independent panel review of the operation of the ring-fencing legislation in respect of which we await with
interest the final recommendations. The other significant event was the consultation by the Financial Conduct Authority (FCA) on a
proposed “Consumer Duty”, which will introduce an overarching standard of conduct requiring firms to “act to deliver good customer
outcomes”. As a Board, we are supportive of the Consumer Duty and will closely oversee the Company’s readiness for implementation,
which is currently planned for April 2023. The Consumer Duty alongside financial performance and risk management is at the centre of our
strategy and business objectives, and will receive a high level of ongoing management attention.
Risk and control

This year, the Board Risk Committee has continued to oversee the risk management aspects of our strategy and its execution, helping
ensure prudential soundness and that customer outcomes are delivered in the right way. In respect of new and emerging risks, the
Committee has adopted climate risk as a new Principal Risk from 2022 and has spent time gaining a better understanding of the risks
associated with our move to cloud technology. We remain alert to financial crime, fraud and security, particularly in light of the proliferation
of scams during the pandemic with the Committee overseeing the Barclays Bank UK Group’s approach to financial crime controls and
operational resilience. This has been supported by the work of the Board Audit Committee, which – in addition to its usual matters – has
monitored the internal control environment and received updates on data governance, including the principles in place to ensure the
protection and ethical use of customer and client data, as well as reviewing key accounting judgements, including impairments, as the
economy begins to recover.
Governance matters
Finally, as articulated in our corporate governance principles, a successful company is led by an effective and entrepreneurial Board. In
2021, an external evaluation of the Board was undertaken by Christopher Saul Associates (CSA), which concluded that the Board is
operating effectively. CSA considered our Board to have a strong collegiate culture in which all members contribute to discussions and offer
constructive challenge. Whilst certain areas were identified for continued focus to further improve effectiveness, none were material. A
summary of the key findings can be found on page 23. Separately, in conjunction with the Board Nominations Committee, I continue to
evaluate the balance of skills, knowledge, experience and diversity on the Board to ensure that it is appropriate to support our strategy and
to consider succession planning. In respect of Board changes, Sir John Timpson stood down from the Board in July 2021 and David
Thorburn in February 2022. We thank Sir John and David for their considerable insight and service to the Barclays Bank UK Group.

Governance
Chair’s introduction
Looking ahead
Overseeing the execution and evolution of the Barclays Bank UK Group’s strategy in 2022 and beyond to ensure it continues to adapt and
respond to the external environment, and changing customer and client needs and behaviours, will remain a priority focus of the Board. As
part of that, we will continue to evolve our societal purpose and through the development of our product propositions support our
customers and clients to live and act more sustainably.
Finally, I would like to thank all colleagues – without whom the success of this year could not have been achieved – and my fellow Board
members for their significant commitment, insight and continued hard work throughout 2021.
Crawford Gillies
Chair – Barclays Bank UK PLC
22 February 2022

Governance Report
Corporate Governance Statement
The Board
Welcome to our Board. The Directors who served during the year ended 31 December 2021 are set out in the table below, together with
details of the composition of each of the Board Committees. All of the Directors, with the exception of Sir John Timpson and David
Thorburn, have served up to the date of signing this report.
Board Board Audit Board Board Board Risk

Committee Nominations Remuneration Committee
Committee Committee
Current Directors
Crawford Gillies C C
Chair of the Board (appointed 1 January 2021)
Independent Non-Executive Director
Avid Larizadeh Duggan M M M
Michael Jary M M C M
Kathryn Matthews M M M*
Chris Pilling M M M
Andrew Ratcliffe M C M C **
Matt Hammerstein M
Chief Executive
James Mack M
Chief Financial Officer
Former Director
Sir John Timpson (resigned 8 July 2021) M M M
David Thorburn (resigned 3 February 2022) M M M C

C
Chair of Board or Board Committee
M
Member of Board or Board Committee
*
Since 8 July 2021
**
Since 4 February 2022, member prior
Charter of Expectations
Executive and Non-Executive Directors share the same statutory duties and are subject to the same constraints. The expectations of each
Director are set out in the Company’s Charter of Expectations. This includes role profiles and the behaviours and competencies required for
each role on the Board, namely: the Chair, Board Committee Chairs, Executive Directors and Non-Executive Directors.
Time commitment
The Company’s Charter of Expectations also sets out the time commitment for each role. Non-Executive Directors, including the Chair, are
informed of the minimum time commitment required prior to their appointment; they must, on appointment and on an ongoing basis, be
able to devote sufficient time to the Company to effectively discharge their responsibilities. A Non-Executive Director’s preparation for, and
attendance at, Board and Board Committee meetings is only part of their role. In addition, Non-Executive Directors are expected to provide
effective oversight and scrutiny, strategic guidance and constructive challenge whilst holding the Executive Directors to account against
their agreed performance objectives.
The time commitments of Directors are considered by the Board on appointment and are reviewed annually. External appointments must
be agreed with the Chair and disclosed to the Board, before appointment, with an indication of the time involved. During the year, the
Board Nominations Committee kept under review the number of external directorships held by each Director and considered the limits on
the number of directorships imposed by relevant regulations. Following this year’s review, the Board is satisfied that there are no Directors
whose time commitment is considered to be a matter for concern.
Training and development

In order to enable the Directors to discharge their responsibilities and undertake their work with due care, ongoing training and
development occurs throughout the year, with sessions on – for example – competition law and the Senior Managers Regime forming part
of the Board programme. The Directors also participate in briefing sessions and deep dives in order to gain a more granular understanding
of the business which, in turn, contributes to informed and sound decision-making. This year, the focus was on key areas of the Barclays
Bank UK Group’s strategy, including customer strategy, digitalisation, our operating and service models, and strategic talent and
development. In many cases, these topics were brought to life through interactive sessions with colleagues, customers and clients. There
were also a number of joint briefing sessions with the Board Risk Committee on particularly pertinent topics, such as opportunities and
risks associated with moving the Barclays app to the cloud and utilising more modern technology platforms. The Board will continue to
enhance its education and training proposition in 2022.
In order to ensure its familiarity with the Barclays Bank UK Group, the Board had regular meetings with senior management during the year
and certain Directors were able to visit branches, Eagle Labs and operational sites when COVID-19 rules permitted. Changes in the health

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and safety landscape throughout 2021 did impact physical interactions; however, this year’s Board immersion programme included a range
of activities that could be carried out in person or virtually - such as observing Employee Resource Group meetings, participating in panel
events and roadshows, and reverse mentoring - which allowed the Board to maintain a strong connection to the business and colleagues.
Further details on what the Board did in 2021, including its engagement with customers and clients, colleagues, and suppliers, can be
found on pages 20, 21 and 27.
All Directors who are new to the Board, or a Board Committee, participate in an induction programme, which is tailored to their specific
experience and knowledge and provides access to all parts of the business so that they have sufficient understanding of the nature of the
business and the key issues the Barclays Bank UK Group faces.
Our corporate governance principles and how we applied them in 2021

During the year ended 31 December 2021 and to the date of this report, the Company has continued to apply and has complied with its
own corporate governance arrangements rather than the 2018 UK Corporate Governance Code or the Wates Corporate Governance
Principles for Large Private Companies. This is on the basis that the Board believes that our own governance arrangements are the most
appropriate for the Company, a wholly-owned subsidiary of a premium listed company which is also a complex financial institution subject
to a comprehensive regulatory regime. This approach is consistent with the approach of other significant subsidiaries in the Barclays Group
which are subject to the Companies (Miscellaneous Reporting) Regulations 2018 (2018 Regs).
The primary aim of our governance arrangements is that they:
• are effective, in particular to ensure the safety and soundness of the ring-fenced bank
• provide checks and balances and encourage constructive challenge
• drive informed, collaborative and accountable decision-making
• create long-term sustainable value for our shareholder, Barclays, the ultimate shareholders of Barclays and our wider
stakeholders
Set out below is an explanation of how the six principles that underpin our governance arrangements have been applied during 2021.
The Barclays Bank UK Group governance framework is set by Barclays and has been designed to facilitate the effective management of the
Barclays Group. This includes the setting of Barclays Group policies in relation to matters such as the Barclays Group’s Purpose and Values,
the Barclays Group 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.
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.
The Board is responsible for the overall leadership of the Company. The Board’s role involves articulating a clear vision for the Company
based on Barclays’ Purpose, Values and Mindset, and establishing a strategy for both the Company and the Barclays Bank UK Group,
supported by a framework of effective controls that are designed to mitigate financial and other risks and to protect the reputation of the
business. This ultimately ensures that the business is able to operate effectively and independently, and is run in a way that promotes the
long term success of the Company thereby creating and delivering sustainable value. For further details on internal control and risk
management, please see pages 23 to 25.
The Board’s role also involves ensuring that the necessary resources are in place to enable the Company to meet its objectives and
measure performance against them. The Board receives regular and timely information on all key aspects of the business - including
customers, conduct matters, financial performance, operational matters, strategy, risks and opportunities - all supported by key
performance indicators.
What the Board did in 2021

As a matter of course, the Board ensures that the Company is managed in accordance with the ring-fencing legislation and monitors the
ring-fence perimeter of the Barclays Bank UK Group to ensure ongoing compliance with the ring-fencing requirements. In addition to this,
the principal activities of the Board during 2021 included the following:
Strategic and operational matters

▪ Overseeing the further evolution of the Barclays Bank UK Group strategy that was reported in 2020 (including accelerating our digital
agenda and focusing on creating new business models built around digital customer engagement) and reviewing progress against
the same. Further detail on the Barclays Bank UK Group’s strategy, including its strategic priorities, can be found on pages 2 and 3 of
the Strategic Report
▪ Receiving updates on the market and operating environment (including the COVID-19 pandemic and its impact on the Barclays Bank
UK Group’s consumer businesses, and the low interest rate environment), new developments in UK banking and the evolving
regulatory landscape
▪ Overseeing the creation of an inclusive and supportive culture through the launch and embedment of the Barclays Group Purpose,
Values and Mindset, and diversity and inclusion initiatives such as the Race at Work Action Plan
▪ Overseeing colleague engagement via the Here to Listen and Your View surveys, and receiving updates in respect of colleague
wellbeing (particularly in connection with supporting colleagues’ needs in relation to the ongoing COVID-19 pandemic). Further
details can be found on pages 9 and 10 of the Strategic Report and separately on pages 29 to 34 of the Barclays PLC 2021 Annual
Report

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▪ Overseeing customer, commercial, financial, operational, regulatory and risk matters, with regular updates from the Chief Executive
and Executive Committee members
▪ Overseeing reputational risk matters, including in relation to access to cash and the Barclays Bank UK Group’s physical footprint
▪ Overseeing risk matters in connection with issues relating to COVID-19, including payment holidays and UK Government support
schemes for businesses, such as the Bounce Back Loan Scheme and the Coronavirus Business Interruption Loan Scheme
▪ Receiving updates on citizenship, societal purpose and sustainability (including progress against climate strategy)
Finance (including capital and liquidity)

▪ Discussing and approving the Barclays Bank UK Group’s Medium Term Plan (MTP), in which strategy is embedded, together with
related funding and capital plans for the Barclays Bank UK Group
▪ Overseeing the financial performance of the Barclays Bank UK Group and its main businesses through regular reports from the Chief
Financial Officer
▪ On the recommendation of the Board Audit Committee, approving the Barclays Bank UK Group’s full year and half year financial
statements, approving the non-payment of a 2020 full year dividend and approving the payment of a 2021 half year dividend
▪ On the recommendation of the Board Risk Committee, approving the Internal Capital Adequacy Assessment Process (ICAAP) and the
Internal Liquidity Adequacy Assessment Process (ILAAP)
▪ Overseeing, in conjunction with the Board Risk Committee, the results of a range of stress tests to assess capital adequacy and
resilience under severe but plausible macroeconomic scenarios
Governance, risk, control and regulatory matters
▪ On the recommendation of the Board Risk Committee, approving the Company’s Risk Appetite Statement and oversight of risk
parameters
▪ On the recommendation of the Board Risk Committee, approving the Barclays Bank UK Group elements of the Barclays Group
Recovery and Resolution Plan and Resolvability Assessment Framework
▪ Overseeing key risk matters, including themes and emerging risks through regular reports from the Chief Risk Officer
▪ Overseeing the Barclays Bank UK Group’s operational and technology capacity, including in relation to operational resilience and the
utilisation of more modern technology platforms
▪ Overseeing colleagues’ return to branches, call centres, offices and other sites during the course of the year and considering future
ways of working
▪ Overseeing the services received from BX
▪ Overseeing the Barclays Bank UK Group’s internal controls framework through regular reports from the Company’s Chief Controls
Officer
▪ Overseeing, with the support of the Board Nominations Committee, changes to Board composition and Board Committee roles
▪ Receiving regular updates from the Chairs of the Board Committees and the Chairs of the Company’s material subsidiaries on matters
discussed at meetings
▪ In conjunction with the Board Nominations Committee, overseeing the 2021 external Board evaluation and the internal Board
Committee and Non-Executive Director evaluation
Details of the briefings and deep dive sessions held with management on key areas of strategy and risk matters can be found on page 19
of this report.
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 the Chief Executive. The Chair is responsible for leading the Board and its
overall effectiveness, demonstrating objective judgement and promoting a culture of openness and constructive debate between all
Directors. The Chair also facilitates constructive Board relations and the effective contribution of all Non-Executive Directors, and ensures
Directors receive accurate, clear and timely information. The duties of the Board are executed in part through the Board Committees,
which provide oversight and make recommendations on the matters delegated to them by the Board. The Chair of each Board Committee
provides a report on Board Committee business at each Board meeting, including the matters being recommended for Board approval.
Details on the principal Board Committees and their core responsibilities and activities in 2021 are set out in Principles Three to Five on
pages 22 to 26.
Executive Committee
Responsibility for the day-to-day management of the Company is delegated to the Chief Executive who is supported by the Company’s
Executive Committee. Executive Committee membership includes the Chief Financial Officer, Chief Risk Officer, Chief Operations Officer,
Heads of Customer, Channels and Product, Heads of Business Banking and Wealth Management and Investments, and the leaders of
Compliance, Human Resources and Legal. The Executive Committee meets weekly and is chaired by the Chief Executive. The Executive
Committee supports the Chief Executive in ensuring that the values, strategy and culture align, and that those elements are implemented
and communicated consistently to colleagues; for example, through “Ask the Executive Committee” and BUK Stewards events, our Chief
Executive’s weekly vlog, and regular leadership team conferences and roadshows (which have operated in person and virtually
throughout the year, depending on the UK Government guidelines in place at the time) as well as communications that are available to all
colleagues in the Barclays Bank UK Group. Further details are set out on page 10 of the Strategic Report.

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Decision-making and conflicts of interest

The Board maintains a formal schedule of powers reserved to it in order to ensure that it has control over key decision-making. These
powers include approval of key appointments, strategy, financial statements and any major acquisitions, mergers or disposals. There are
also policies and procedures in place to support effective decision-making and independent challenge, including the Barclays Group’s
Corporate Governance Operating Manual, which clearly sets out how Barclays Group entities and their respective Boards and Board
Committees should interact.
For details of how the Directors have had regard to the matters set out in Section 172(1) of the Act when performing their duty to
promote the success of the Company under Section 172, and the effect of those considerations in reaching certain decisions taken by
them, please refer to the Section 172(1) Statement on pages 11 and 12 of the Strategic Report.
In accordance with the Act and the Company’s Articles of Association, 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. Throughout the year, the Board has authorised a number of conflicts – following authorisation, these conflicts are monitored in
order to assist the relevant individuals in discharging their duties as a Director.
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 and with a view to promoting diversity and subject to a formal, rigorous and
transparent procedure which is underpinned by an effective succession plan for the 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.
We continue to consider the composition and size of the Board to be appropriate for a large UK retail bank, although we acknowledge that
there continues to be a relative lack of gender diversity on the Board (in respect of which, see below). This assessment is supported by a
skills matrix (refreshed annually), which helps us to evaluate the experience and skills we have on the Board in order to ensure that there
is the necessary expertise and knowledge to support and challenge management in its execution of the strategy. There is currently a good
balance between the Executive Directors and independent Non-Executive Directors who, together, have a strong combination of financial,
risk, retail and technical skills as well as experience in colleague engagement, customer experience, culture and technology. Overall, the
majority of the Board is considered to be independent. Independence is reviewed annually, using the independence criteria set out in ring-
fencing requirements. The Chair meets privately with the Non-Executive Directors, where appropriate, in order to promote the required
independence.
Board succession planning will remain an area of focus in 2022 in order to ensure that there is the appropriate breadth and depth of talent
on the Board. To the extent that any appointment(s) to the Board are made, such appointment(s) will be based on merit. Objective criteria
are used to ensure that the Board has the necessary knowledge, skills and experience to be effective in the execution of the strategy
whilst recognising the importance of diversity amongst the Directors including, but not limited to, gender, ethnicity, geography and
business experience.
Our ambition, as set out in our Board Diversity Policy, is to ensure that the proportion of women on the Board is at least 33% and that,
once met, this is maintained going forward. With reference to ethnic diversity, the Board’s current target is to ensure that at least one
Board member is a person of colour and that this too is maintained once met. The Board acknowledges that we have not achieved our
gender diversity target this year and this will be a key consideration in future recruitment and succession planning.
Separately, the Board regularly reviews the leadership and succession needs of the business, which helps the Directors to understand the
breadth and depth of talent at Executive Committee level and one level down. There were a number of changes to the Executive
Committee during the year; however, the Board is comfortable that the Executive Committee has the capabilities and strength of
leadership required to support the execution of the strategy against the backdrop of a competitive and challenging operating
environment. Talent and succession both at Executive Committee level and one level down will remain a key focus for 2022 and beyond
in order to ensure that there is the appropriate depth and diversity of talent within the organisation.
Accountability is driven through routine evaluations of the Board and Board Committees. During the year, the Board, in conjunction with
the Board Nominations Committee, reviewed its progress against the recommendations arising from the internal Board evaluation
undertaken in 2020, and was pleased with the progress made. In 2021, an external evaluation of the Board and an internal evaluation of
the Board Committees and Non-Executive Directors (including the Chair) was carried out in relation to activity throughout the year. Key
findings are summarised on page 23.
Board Nominations Committee
The Board Nominations Committee comprises independent Non-Executive Directors (see page 19).
Meetings are attended by the Chief Executive and the Human Resources Director, at the invitation of the Committee Chair.

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The principal role and responsibilities of the Committee are set out in its terms of reference and include:
▪ Skills and Diversity - to evaluate the balance of skills, knowledge, experience and diversity for the Board and more broadly across
the senior management of the business
▪ Director Appointments - to identify, and recommend to the Board, candidates for appointment to the Board and Board
Committees
▪ Director Independence - to consider and assess the independence of the Non-Executive Directors, including recommendations
for any steps to manage actual or potential conflicts of interest
▪ Board Performance - to assess the performance of the Non-Executive Directors and their annual time requirements
▪ Board Evaluation - to consider any actions from the Board and Board Committee evaluation process that relate to the
composition of the Board or Board Committees and, in conjunction with the Board, review the Board’s progress against the
recommendations arising from the evaluation process
• Board Development – to lead the development and effective implementation of policies and procedures for the induction, training
and professional development of all members of the Board
• Talent - to oversee the adoption of internal policies and talent progression for senior management
During 2021, the Committee’s principal activities were:
• Reviewing the Board’s composition – including skills and experience of Board members, time commitments and the
independence of the Non-Executive Directors (excluding the Chair)
▪ Reviewing the Committee’s own composition in light of the resignation of one of its members
▪ On a bi-annual basis, reviewing the Company’s talent and succession plans at Executive Committee level and one level down
▪ Reviewing and monitoring the Board’s progress against the Board Diversity Policy
▪ On behalf of the Board, reviewing and monitoring the Company’s progress against its diversity and inclusion agenda, including
instigating a Board briefing session on diversity and inclusion at which the Barclays Group Chief Diversity Officer presented, and
initiatives such as the Race at Work Action Plan
▪ Reviewing the results of the 2021 external Board evaluation and the internal Board Committee and Non-Executive Director
evaluations. For more information on these evaluations, see below
▪ Overseeing the management of any Non-Executive Director conflicts of interest and the conflicts of interest management
procedures
A full external evaluation of the Board was carried out during the fourth quarter of 2021. CSA – which is an independent, external
corporate governance advisory firm with no other connection to the Barclays Group or any individual Director (save as disclosed in the
Barclays PLC 2021 Annual Report) – was chosen to facilitate the evaluation. The Board considered CSA’s independence prior to the firm’s
appointment and were confident that, notwithstanding that CSA and CSA’s Managing Director, Christopher Saul, had previously advised
Barclays, CSA would not be constrained in its ability to express an independent view. CSA carried out interviews with the Directors to
obtain feedback on the effectiveness of the Board throughout 2021, and also attended Board and Board Committee meetings. CSA issued
its final report to the Board on the findings of the evaluation in January 2022 – the overall conclusion is that the Board is operating
effectively. CSA considered the Board to have a strong collegiate culture in which all members contribute to discussions and offer
constructive challenge. Significant progress has been made to enhance effectiveness in the last year, in particular by strengthening Board
and Board Committee focus; however, there is always more that can be done. With this in mind, recommendations in respect of certain
matters highlighted in CSA’s report (including further simplification of Board papers, ensuring a continued two-way dialogue between the
Board and the Barclays Board, and developing more opportunities for those at Executive Committee level and one level down to interact
with the Non-Executive Directors) are being progressed.
The internal reviews of the Board Committees and the Non-Executive Directors also concluded that they are operating effectively and
meeting their required responsibilities.
In February 2022, following the resignation of David Thorburn - who is to join, subject to regulatory approval, the Coventry Building
Society in April 2022 as Chairman Designate - the Committee approved Andrew Ratcliffe taking on the role of Chair of the Board Risk
Committee alongside his existing role as Chair of the Board Audit Committee on an interim basis pending a permanent candidate being
identified. Andrew is a long-standing member of the Board Risk Committee with significant financial services experience and detailed
knowledge on risk management matters.
Principle Four: Audit, Risk and Internal Control
The 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 control that enables business to be transacted and risk taken
without exposure to unacceptable potential losses or reputational damage. The Principal Risks facing the Barclays Bank UK 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 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 Barclays Bank UK Group strategic objectives and to provide reasonable
assurance that internal controls are effective. Further detail on the Principal Risks and management of them can be found on page 6 of
the Strategic Report.

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The Board has overall responsibility 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. Having
said that, the effectiveness of the risk management and internal control system is reviewed regularly by the Board Risk Committee and the
Board Audit Committee. Details of the role, responsibilities and activities of both Committees are set out below.
The Board receives regular reports on risk matters, including reputational risk matters, in order to ensure sufficient focus around strategic
and emerging risks, including those arising from within the broader Barclays Group, which may impact the Barclays Bank UK Group.
Oversight of conduct risk and compliance remains within the remit of the Board Risk Committee, as detailed below.
Board Audit Committee

The Board Audit Committee comprises independent Non-Executive Directors (see page 19).
At the invitation of the Committee Chair, meetings are attended by management and others, including the Chief Executive, Chief Financial
Officer, Chief Internal Auditor, Chief Risk Officer, Chief Compliance Officer, Chief Controls Officer, General Counsel, the Company’s
statutory auditor and, where requested, Non-Executive Directors who are not members of the Committee who wish to further their
knowledge and understanding on audit matters. 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, Committee members met regularly with both
the Chief Internal Auditor and the Senior Statutory Auditor without management present.
The Committee is responsible for overseeing financial reporting processes, reviewing the effectiveness of internal controls, considering
whistleblowing arrangements and overseeing the work of the internal auditor and the statutory auditor. Throughout the year ended
31 December 2021 and to date, a comprehensive internal control framework has been in place within the Barclays Bank UK Group that
provides reasonable assurance of effective operations covering all controls, including financial and operational controls and compliance
with laws and regulations. The Committee receives a quarterly report on the framework’s operation (and its continued enhancements).
This includes reports from the internal and external audit functions and the Chief Controls Officer, as well as related plans and
management actions to remediate control recommendations raised in those reports.
▪ Financial Reporting - assessing the integrity of the Barclays Bank UK Group’s financial statements and examining any significant
reporting issues and judgements made
▪ Internal Controls - examining the operation and effectiveness of the Barclays Bank UK Group’s system of internal controls
▪ Internal Audit - monitoring and examining the operation, effectiveness, independence and objectivity of the Internal Audit
function
▪ Regulatory Reporting - reviewing arrangements established by management for compliance with regulatory and financial
reporting, including compliance with the ring-fencing requirements
▪ External Audit - reviewing and monitoring the statutory auditor’s independence, objectivity and effectiveness, including oversight
of the regulatory developments within the delivery of audit services
▪ Whistleblowing - reviewing the integrity, independence and effectiveness of Barclays Bank UK Group’s well-established policies
and procedures on whistleblowing
▪ Material Legal Matters - oversight of significant contentious and non-contentious matters, together with current or emerging
legal risks
During 2021, the principal activities of the Committee were:
• Examining the Barclays Bank UK Group’s full year and half year financial statements and recommending their approval to the
Board
• Examining the Barclays Bank UK Group’s Q1 and Q3 2021 results for incorporation into Barclays PLC’s Q1 and Q3 2021 results
• Assessing the appropriateness of key management judgements, including consideration of material conduct and litigation
provisions (including collections and recoveries, and other material items) and accounting policy judgements (including expected
credit losses, impairment and recoverability of goodwill)
• Receiving reports from the General Counsel on litigation matters pertinent to accounting provisions
• Receiving reports from the Chief Controls Officer on the internal controls framework and its effectiveness
• Overseeing the statutory auditor’s independence and objectivity and contributing to the Barclays Group’s auditor effectiveness
exercise, including receiving findings from the Prudential Regulation Authority (PRA) on written auditor reporting and the
Financial Reporting Council on their Audit Quality Review
• Overseeing the performance of the Internal Audit function, including an internal quality assurance assessment and approving the
2022 audit plan
• Receiving reports from management on certain areas of the business where reports from the Internal Audit function had
recommended improvements to existing controls (for example: controls underpinning procedures with customers, and ongoing
remediation programmes) or on areas of new risks (for example: the impact on the control environment of plans to automate
and digitalise Chief Operations Office processes, and the data risk mitigation programme)
• Overseeing the implications of remote working, and future ways of working, on the control environment
• Monitoring management progress on the embedding of a Risk Control Self-Assessment framework
• Reviewing and re-adopting the refreshed Barclays Group specific policy on the provision of non-audit services by the statutory
auditor
• Monitoring the whistleblowing programme, including receiving regular whistleblowing metrics as they relate to the Barclays Bank
UK Group, and ensuring that the procedures for protection from detrimental treatment of staff who raise concerns continue to be
effective

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• Receiving updates on financial crime activity that impacted the Barclays Bank UK Group in 2021, including overseeing the
Company’s Money Laundering Reporting Officer’s report
• Receiving the Company’s Data Protection Officer’s report
• Considering future internal control needs
• Reviewing the Committee’s effectiveness
Board Risk Committee

The Board Risk Committee comprises independent Non-Executive Directors (see page 19). As referenced on page 23, Andrew Ratcliffe
assumed, on an interim basis, the role of Chair of the Board Risk Committee in February 2022 following David Thorburn’s resignation.
At the invitation of the Committee Chair, meetings are attended by management, including the Chief Executive, Chief Risk Officer, Chief
Compliance Officer, Chief Financial Officer, General Counsel, Chief Internal Auditor, the Company’s statutory auditor and, where
requested, Non-Executive Directors who are not members of the Committee who wish to further their knowledge and understanding on
risk matters.
The 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.
▪ Risk Appetite and Risk Profile – reviewing and ensuring that the risks undertaken by the business are within the risk appetite of
the Company, as set by the Board
▪ Risk Limits – reviewing and adopting risk limits and mandates for financial and non-financial risk, monitoring the risk profile and
receiving and considering reports on key risk issues (including emerging risks)
▪ Regulatory – reviewing and monitoring the Company’s capital and liquidity position including considering both the existing and
forecasted Company risk profile and the potential impact of stress
▪ Internal Control and Risk Control – monitoring the Internal Control and Risk Control framework
▪ Credit Risk – reviewing credit risk performance (including concentration of credit risk and expected credit losses)
▪ Conduct Risk – reviewing the effectiveness of the management of conduct risk, seeking to ensure fair customer outcomes
following the implementation of policies and reviewing the effectiveness of the Conduct Risk Management Framework, as it
applies to the Company and its subsidiaries
▪ Risk Culture – monitoring to ensure a robust risk culture (relating to risk awareness, risk taking and risk management)
▪ Ring-fencing – reviewing the ring-fencing requirements (including attestation and ongoing compliance requirements)
▪ Recommending to the Board the adoption of qualitative and quantitative Risk Appetite Statements
▪ Reviewing and adopting the relevant Barclays Group policies, including the ERMF and the associated framework Company
addenda as well as the Conduct Risk Management Framework
▪ Reviewing regular financial and non-financial risk reporting on each of the Principal Risks (detailed on page 6 of the Strategic
Report), overseeing the introduction of climate risk as a new Principal Risk (including receiving an introduction to the Climate
Principal Risk Framework), and reviewing emerging risks
▪ Reviewing scenario analysis through detailed quantitative and qualitative risk assessments of particular portfolios and activity (for
example, assessments on the impact of flooding and subsidence on the Barclays Bank UK Group’s Mortgage portfolio) to assess
and quantify the impact from climate change
▪ Adopting the 2021 Limits and Mandates and monitoring the risk profile in accordance with the same
▪ Ongoing review of the key risks associated with the UK Government support schemes for businesses, including the Bounce Back
Loan Scheme and the Coronavirus Business Interruption Loan Scheme
▪ Reviewing conduct risk and overseeing the execution of conduct remediation programmes
▪ Monitoring compliance with key portfolio metrics, including the use of Chief Risk Officer discretion
▪ Overseeing risk resources and the independence of the Risk and Compliance functions
▪ Reviewing and recommending to the Board for approval the Barclays Bank UK Group elements of the Barclays Group Recovery
and Resolution Plan and Resolvability Assessment Framework
▪ Reviewing the risks identified by the findings of internal audits
▪ Monitoring liquidity and capital levels and considering and recommending for Board approval the Company sections of the
Barclays Group 2021 ICAAP and ILAAP
▪ Reviewing and approving the Barclays Bank UK Group’s stress testing scenarios and results
▪ Reviewing the second line of defence and Legal function elements of the internal assurance plan to support the execution of the
Barclays Bank UK Group’s strategy, which includes third party complementary assurance
▪ Reviewing in detail the Barclays Bank UK Group’s approach to climate change as part of the work the Barclays Group is doing to
take a leading role in contributing to the transition to a low-carbon economy
▪ Reviewing the risks associated with Financial Crime controls, the external environment, Model Risk and public cloud migration
▪ Considering regular reports on the Barclays Bank UK Group’s operational resilience
▪ Reviewing the Barclays Bank UK Group’s ring-fencing compliance
▪ Reviewing the effectiveness of risk management and internal control systems
▪ Reviewing the Committee’s effectiveness

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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 company’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.
The Barclays Group’s Remuneration Policy is set by the Barclays Group Remuneration Committee. This policy is reviewed and adopted by
the independent Board Remuneration Committee. The policy ensures that remuneration is aligned to the Barclays Bank UK Group’s
strategy and risk management approach and designed to promote the long-term success of the Company.
The approach to executive and senior management remuneration is set by the Barclays Group’s formal procedures on remuneration
(these procedures ensure that no individual is involved in deciding their own remuneration). Additionally, remuneration is considered in
relation to wider workforce remuneration policies and alignment of incentives and rewards with culture and performance is reviewed
annually by the Barclays Group Remuneration Committee.
The Barclays Bank UK Group is committed to paying people fairly, with regards to their specific role, seniority, responsibilities, skills and
experience and other factors which properly affect pay, with regards to their specific role, seniority, responsibilities, skills and experience
and other factors which properly affect pay, in a way that balances the needs of all the Barclays Bank UK Group’s stakeholders. You can
find more information in Barclays’ 2021 Fair Pay Report.
The Company remains focused on closing its gender and ethnicity pay gaps, where they exist. You can find more information on our UK-
wide gender and ethnicity pay gaps for the year in the Barclays UK Pay Gaps disclosure.
Board Remuneration Committee

The Committee comprises independent Non-Executive Directors (see page 19), one of whom - Kathryn Matthews - joined the Committee
in July 2021 on Sir John Timpson’s resignation. As per the usual process when a Director joins a Board Committee, Kathryn participated in
an induction programme which was focused on the operation of the Committee and tailored to her prior experience and knowledge.
At the invitation of the Committee Chair, meetings are attended by management, including the Chief Executive, Chief Financial Officer,
Chief Risk Officer, the Human Resources Director and the Head of Reward.
▪ Remuneration Policy – to review, adopt and recommend for Board approval, the Barclays Group’s Remuneration Policy (set by the
Barclays Group Remuneration Committee)
• Remuneration Approach – to review and approve the remuneration approach developed for the Company, which complies with
the Barclays Group’s Remuneration Policy thereby ensuring such policy is aligned with the Barclays Bank UK Group’s strategy and
risk management protocols and that incentives do not encourage risk taking, beyond the tolerated risk of the Company, or
undermine its ability to comply with ring-fencing requirements
• Overall Pay Structure – to have oversight for overall pay and benefits across the Barclays Bank UK Group
• Incentive Pay – to consider the annual incentive pool and individual remuneration proposals for senior colleagues and the
assessment of incentives to be delivered to the wider workforce. This includes considering ex-ante (current and future) and ex-
post (crystallised) risk adjustments to remuneration
▪ Considering stakeholder, regulatory and legal updates and ensuring that remuneration procedures and outcomes comply with
regulatory requirements and that incentives do not encourage inappropriate risk taking
▪ Reviewing and approving, for recommendation to the Barclays Group Remuneration Committee, where appropriate, the
remuneration of Executive Directors and other senior employees
▪ Reviewing and approving the methodology, framework and proposals for the 2021 remuneration review, including the incentive
funding framework and incentive pool outcome
▪ Considering financial and risk performance updates (including appropriateness of risk adjustments to incentives)
▪ Receiving updates on the Barclays Bank UK Group’s remuneration initiatives and developments, including fair pay
▪ Overseeing reward and recognition across the entire workforce to ensure alignment with our desired culture and behaviours,
including the launch of the new “Recognition at Barclays” platform
▪ Reviewing the Committee’s effectiveness

Governance Report
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 set out under Principle One, the Board’s role involves articulating a clear vision for the Company based on Barclays’ Purpose, Values
and Mindset and establishing a strategy for both the Company and the Barclays Bank UK Group. Through this, the Board has identified
key stakeholders on whom the success of the Company and the Barclays Bank UK Group depends. The Board seeks to understand key
stakeholders’ views, and the impact of the Barclays Bank UK Group’s behaviour and business on them.
Customers and clients

Customers and clients are at the heart of the decisions we make. In 2021, the Barclays Bank UK Group engaged with customers and
clients in a wide variety of ways, including by analysing customer complaints and via customer feedback and key customer metrics that
have been shared with the Board by management through regular reporting. The Board also heard directly from customers and clients
during a number of this year’s deep dives, which provided invaluable insight into the continuing significant shift towards digital adoption
and the demand for digital financial services to meet day-to-day needs.
Colleagues
Details of our colleague engagement model can be found on page 10 of the Strategic Report – the model ensures effective and timely
engagement with our colleagues, placing equal emphasis on listening (so that the Board can take colleagues’ views into account when
making decisions likely to affect their interests) and keeping colleagues informed.
In the spirit of keeping colleagues abreast of changes to our businesses, there have been a number of events throughout the year –
including our Chief Executive’s weekly vlog and roadshows – to update colleagues on the evolution of the Barclays Bank UK Group’s
strategy. The Board has overseen colleague engagement in connection with the proposed simplification of our products and services via
the Here to Listen and Your View surveys, with the Directors hearing directly from colleagues when observing Employee Resource Group
meetings, reverse mentoring, and visiting branches, Eagle Labs and operational sites (when COVID-19 rules permitted). There were also
colleague voices in the boardroom, giving their perspectives on elements of the customer strategy, operating model and talent
development programmes.
This year’s Board immersion programme included a range of activities that could be carried out in person or virtually so allowing the
Board to maintain a strong connection to colleagues in spite of the changing health and safety landscape throughout 2021.
Suppliers
For information on our engagement with suppliers, please see page 29 of the Directors’ Report.
Communities and society

The Barclays Bank UK Group continues to play an important role in local communities; a role that goes beyond our physical footprint, as
the Board learned when it participated in a briefing session focused on citizenship, societal purpose and sustainability with colleagues and
external partners. In light of this, the Board programme included updates on access to cash and access to banking and increasing the
range of more flexible options available to our customers and clients, with the focus of the Directors’ discussions being on the importance
of direct community engagement and the need for alternative touchpoints such as banking pop-ups in community spaces and the
introduction of mobile banking vans.
The Board is acutely aware of increasing customer and client expectations on climate and sustainability therefore, over the last year, the
Directors have engaged with the Barclays Group and the Executive Committee in order to gain a more granular understanding of the
progress that has been made to date in relation to the Barclays Group’s climate strategy, and future focus areas.
The Board is looking forward to continuing to engage on these very important topics during 2022 and beyond.
For more information about the Barclays Bank UK Group’s key stakeholders, how management and/or the Directors engaged with them,
the key issues raised and actions taken, please refer to the Section 172(1) Statement on pages 11 to 12 of the Strategic Report and pages
16 to 19 of the Barclays PLC 2021 Annual Report.

Governance
Directors’ Report
The Directors present their report together with the audited accounts for the Company for the year ended 31 December 2021.
Section 414A of the Act requires the Directors to present a Strategic Report in the Annual Report. The information can be found on pages 2
to 12.
The Company has addressed the Non-Financial Reporting requirements contained in sections 414CA and 414CB of the Act through the
disclosure contained on pages 49 to 50 of the Barclays PLC 2021 Annual Report. In 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. Such information is incorporated by reference into this report.
The particulars of important events affecting the Company since 31 December 2021 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:
Page
Climate change 49
Environment, Social and Governance Report 13 to 15
Chair’s introduction and Governance Report 17 to 27
Performance measures 7 to 8
Managing risk 5 to 6
Principal Risks 6
Disclosures required pursuant to the Large and Medium-sized Companies and Groups (Accounts and Reports)
Regulations 2008 (2008 Regs) as updated by the 2018 Regs can be found on the following pages:
Engagement with employees (Sch.7 Para 11 and 11A 2008/2018 Regs) 10
Policy concerning the employment of disabled persons (Sch.7 Para 10 2008 Regs) 9
Financial Instruments (Sch.7 Para 6 2008 Regs) 160 to 177
Hedge accounting policy (Sch.7 Para 6 2008 Regs) 161 to 162
Profits and dividends

The results of the Barclays Bank UK Group show statutory profit after tax of £1,869m (2020: £379m). The Barclays Bank UK Group had net
assets of £17,400m at 31 December 2021 (2020: £17,027m).
The Company will pay a £1,010m dividend to its parent, Barclays PLC. Further details on dividends on ordinary shares paid in 2021 are set
out in Note 10 to the financial statements.
Share capital
There was no increase in ordinary share capital during the year. Barclays PLC 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 ordinary shares or voting rights. Further information on the Company’s share capital can be found in Note
26 to the financial statements.
Powers of Directors to issue or buy back the Company’s shares

The powers of the Directors are determined by the Act and the Company’s Articles of Association. No shares were repurchased in 2021.
Directors
The list of current Directors of the Company can be found in the Governance Report on page 19. Changes to Directors during the year and
up to the date of signing this report are set out below.
Name Role Effective date of appointment / resignation

Sir John Timpson Non-Executive Director Resigned 8 July 2021
David Thorburn Non-Executive Director Resigned 3 February 2022

Governance
Directors’ Report
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 2021 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 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’ and Officers’ Liability Insurance which gives appropriate cover for legal
action brought against the Company’s Directors.
Political donations
The Barclays Bank UK 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 2021 Annual
Report.
Engagement with customers, suppliers and others in a business relationship with the Company
Customers and clients are at the heart of the decisions we make. In 2021, the Barclays Bank UK Group engaged with customers and clients
in a wide variety of ways, including by analysing customer complaints and via customer feedback and key customer metrics that have been
shared with the Board by management through regular reporting. The Board also heard directly from customers and clients during a
number of this year’s deep dives, which provided invaluable insight into the continuing significant shift towards digital adoption and the
demand for digital financial services to meet day-to-day needs.
Our engagement with suppliers is important. The Directors have regard, via management oversight, to the need to foster business
relationships with suppliers and, as such, engage with them to seek adherence to the TPCoC and Supplier Control Obligations (SCO) which
cover our expectations of suppliers. For our higher risk suppliers, their adherence to the SCO and TPCoC is captured pre-contractually via a
Pre-Contract Supplier Assurance Attestation. For our higher risk suppliers, their adherence to the SCO and TPCoC is captured pre-
contractually via a Pre-Contract Supplier Assurance Attestation. Further, Barclays is a signatory to the Prompt Payment Code in the UK,
aiming to pay our suppliers within clearly defined terms.
For more information on managing our supply chain, please refer to pages 65 to 67 of the Barclays PLC 2021 Annual Report.
Further details on customer, client and supplier engagement can be found in the Section 172(1) Statement on pages 11 and 12 of the
Strategic Report, on page 27 of the Governance Report and on pages 16 to 19 of the Barclays PLC 2021 Annual Report.
Branches and Country-by-Country Reporting

The Barclays Bank UK Group operates through branches, offices and subsidiaries in the UK.
The Company is exempt from publishing information required by The Capital Requirements (Country-by-Country Reporting) Regulations
2013 as the information is published by its parent, Barclays PLC. The information is due to be published on or around 23 February 2022 and
will be available at home.barclays/annualreport.
Research and development

In the ordinary course of business, the Barclays Bank UK Group develops new products and services in each of its business divisions.
The auditor
The Barclays Group Audit Committee reviews the appointment of the statutory auditor, as well as their relationship with the Barclays
Group, including monitoring the Barclays Group’s use of the statutory auditor for non-audit services and the balance of audit and non-audit
fees paid to them. More details on this can be found in Note 34 to the financial statements. Detail of the oversight of the statutory auditor
by the Company’s Board Audit Committee is set out on page 24.
An external audit tender was conducted in 2015 and the decision was made to appoint KPMG as the 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.
The Company is in compliance with the requirements of The 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 Barclays Group 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 Barclays Group 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 such a large complex organisation to ensure a top quality audit. The Barclays Group Audit Committee is also conscious
that the lead engagement partner has changed twice since KPMG's tenure and that there have also been significant changes of senior
management – both of which serve to reduce any threat of over familiarity. Michelle Hinchliffe is standing down as lead audit engagement
partner following the conclusion of the audit. The Barclays Group Audit Committee has approved the appointment of Stuart Crisp of KPMG
as the new lead engagement partner. The Barclays Group Audit Committee will give further consideration over the next two years to its
audit tendering strategy to take account, as appropriate, of the outcome of the UK audit reform proposals.

Governance
Directors’ Report
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 statement, which should be read in conjunction with the auditor’s report set out on pages 125 to 133, is made with a view to
distinguishing for shareholders the respective responsibilities of the Directors and of the auditor in relation to the financial statements.
Going concern
In preparing the Barclays Bank UK Group’s financial statements, the Directors are required to:
▪ assess the Barclays Bank UK Group’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 UK Group or to cease operations, or
have no realistic alternative but to do so.
The Barclays Bank UK 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
Management sections.
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 UK Group accounts for each financial year and, with
regard to Barclays Bank UK 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; and (b) International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB), including interpretations issued by the IFRS
Interpretations Committee. 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 UK Group and the Company and of their profit or loss for that period.
The Directors consider that, in preparing the financial statements on pages 134 to 205, the Barclays Bank UK Group and 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, provide the information necessary for its
shareholder to assess the Barclays Bank UK Group and Company’s position and performance, business model and strategy.
Directors are responsible for 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.
Directors’ responsibility statement

The Directors have responsibility for ensuring that the Company and the Barclays Bank UK Group keep accounting records which disclose
with reasonable accuracy the financial position of the Company and the Barclays Bank UK Group and which enable them to ensure that the
financial statements 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
Company’s 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.

Governance
Directors’ Report
The current Directors, whose names and functions are set out on page 19, confirm to the best of their knowledge that:
(a) the financial statements, prepared in accordance with (a) UK-adopted international accounting standards; and (b) IFRS as issued by the
IASB, including interpretations issued by the IFRS Interpretations Committee, 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 2 to 12, 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
Katie Marshall
Company Secretary
22 February 2022
Registered in England.
Company No. 9740322

Risk review
Content
The management of risk is a critical underpinning to the execution of the Barclays Bank UK Group’s strategy. The material risks and
uncertainties the Barclays Bank UK Group faces across its business and portfolios are key areas of management focus.
Risk management strategy Page
Overview of the Barclays Bank UK Group’s approach to risk ▪ Enterprise Risk Management Framework (ERMF) 35
management.
▪ Segregation of duties – the “Three Lines of Defence” 35
model
▪ Principal risks 35
▪ Risk appetite for the principal risks 35
▪ Risk committees 35
▪ The Barclays Bank UK Group’s risk culture 36
Material existing and emerging risks

Insight into the level of risk across our business and portfolios, the ▪ Material existing and emerging risks potentially impacting 41
material existing and emerging risks and uncertainties we face and more than one principal risk
the key areas of management focus.
▪ Climate risk 41
▪ Credit risk 42
▪ Treasury and capital risk 43
▪ Operational risk 43
▪ Model risk 46
▪ Conduct risk 46
▪ Reputation risk 47
▪ Legal risk and legal, competition and regulatory matters 47
Principal risk management

The Barclays Bank UK Group’s approach to risk management for ▪ Climate risk management 49
each principal risk with focus on organisation and structure and
▪ Credit risk management 52
roles and responsibilities.
▪ Market risk management 53
▪ Treasury and capital risk management 53
▪ Operational risk management 55
▪ Model risk management 56
▪ Conduct risk management 56
▪ Reputation risk management 57
▪ Legal risk management 57

Risk review
Content
Risk performance
Credit risk: The risk of loss to the Barclays Bank UK Group from the ▪ Credit risk overview and summary of performance 60
failure of clients, customers or counterparties (including
▪ The Barclays Bank UK Group’s maximum exposure and 61
sovereigns), to fully honour their obligations to the Barclays Bank
UK Group, including the whole and timely payment of principal, effects of netting, collateral and risk transfer
interest, collateral and other receivables. ▪ Expected credit losses 65
▪ Movements in gross exposure and impairment allowance 68
including provisions for loan commitments and financial
guarantees
▪ Management adjustments to models for impairment 77
▪ Measurement uncertainty and sensitivity analysis 79
▪ Analysis of the concentration of credit risk 87
▪ The Barclays Bank UK Group’s approach to management 91
and representation of credit quality
▪ Analysis of specific portfolios and asset types 100
Market risk: The risk of loss arising from potential adverse changes ▪ Market risk overview and summary of performance 103
in the value of the Barclays Bank UK 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.
Treasury and capital risk – Liquidity: ▪ Liquidity risk overview 105

The risk that the Barclays Bank UK Group is unable to meet its
▪ Liquidity risk stress testing 105
contractual or contingent obligations or that it does not have the
appropriate amount, tenor and composition of funding and • Contractual maturity of financial assets and liabilities 106
liquidity to support its assets.
Treasury and capital risk – Capital: ▪ Capital risk overview 112

The risk that the Barclays Bank UK 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 UK Group’s pension plans.
Treasury and capital risk – Interest rate risk in the banking book: ▪ Interest rate risk in the banking book overview and 114
The risk that the Barclays Bank UK Group is exposed to capital or summary of performance
income volatility because of a mismatch between the interest rate
▪ Net interest income sensitivity 114
exposures of its (non-traded) assets and liabilities.
▪ Analysis of equity sensitivity 114
▪ Volatility of the fair value through other comprehensive 115
income (FVOCI) portfolio in the liquidity pool
Operational risk: The risk of loss to the Barclays Bank UK Group ▪ Operational risk overview and summary of performance 116
from inadequate or failed processes or systems, human factors or
▪ Operational risk profile 116
due to external events (for example fraud) where the root cause is
not due to credit or market risks.
Model risk: The potential for adverse consequences from decisions ▪ Model risk overview and summary of performance 118
based on incorrect or misused model outputs and reports.
Conduct risk: The risk of poor outcomes for, or harm to, ▪ Conduct risk overview and summary of performance 118
customers, clients and markets, arising from the delivery of the
Barclays Bank Group's products and services.
Reputation risk: The risk that an action, transaction, investment, ▪ Reputation risk overview and summary of performance 118
event, decision, or business relationship will reduce trust in the
Barclays Bank UK Group’s integrity and/or competence.
Legal risk: The risk of loss or imposition of penalties, damages or ▪ Legal risk overview and summary of performance 119
fines from the failure of the Barclays Bank UK Group to meet its
legal obligations, including regulatory or contractual requirements.

Risk review
Content
Supervision and regulation

The Barclays Bank UK Group’s operations are subject to a ▪ Supervision of the Barclays Bank UK Group 120
significant body of rules and regulations.

Risk review
Risk management
The Barclays Bank UK Group’s risk management strategy
This section introduces Barclays Bank UK Group’s approach to managing and identifying risks, and for fostering a strong 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 the Barclays Bank UK Group. It is approved by the Barclays Bank UK PLC Board on recommendation of the Barclays
Bank UK Group Board Risk Committee and the Barclays Bank UK Group Chief Risk Officer (CRO); it is then adopted by the Barclays Bank UK
Group with modifications where needed.
The ERMF sets out:

▪ Principal risks faced by the Barclays Bank UK Group which guides the organisation of the risk management function
▪ Risk appetite requirements: This helps define the level of risk we are willing to undertake in our business
▪ Risk Management and Segregation of duties: The ERMF defines a Three Lines of Defence model
▪ Roles and responsibilities for risk management and governance structure
The ERMF is complemented by frameworks, policies and standards that are mainly aligned to individual principal risks:
▪ Frameworks cover the management processes for a collection of related activities and define the associated policies used to govern them
▪ Policies set out principles, control objectives and other core requirements for the activities of the Barclays Bank UK Group. Policies
describe “what” must be done
▪ Standards set out the key control requirements that describe how the requirements set out in the policy 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 UK Group and all
associated support functions, including Finance, Operations, Treasury, and Human Resources etc. The first line is responsible for
identifying and managing the risks in which they are engaged in, developing a control framework, and escalating risk events to Risk and
Compliance.
▪ 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, policies and standards under which first line activities shall be performed, consistent with the risk appetite of the Barclays
Bank UK Group, and to monitor the performance of the first line against these limits and constraints. Controls for first line activities,
especially those related to operational risk, will ordinarily be established by the control officers operating within the control framework of
the firm. These will remain subject to supervision 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 control over current, systemic and evolving risks;
▪ The Legal function provides support to all areas of the bank and is not formally part of any of the three lines, However, it is subject to
second line oversight with respect to operational and conduct risks.
Principal risks
The ERMF identifies nine principal risks (see managing risk 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 49 for more information.
Each of the principal risks is overseen by an accountable executive within the Barclays Group who is responsible 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 more across than one principal risk.
Risk appetite
Risk appetite is defined as the level of risk which the Barclays Group is prepared to accept in the conduct of their activities. It provides a
basis for ongoing dialogue between management and Board with respect to the Barclays Bank UK 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 UK Group. The Barclays Bank UK Board
cannot approve a higher risk appetite than that determined by the Group Board without the approval of the Group Board but may choose
to operate at a lower level of risk appetite than that approved by the Barclays Group. The Barclays Group total risk appetite and its
allocation to the Barclays Bank UK Group are supported by limits to enable and control specific exposures and activities that have material
concentration risk implications.
Risk committees
The Barclays Bank UK Group product/risk type committees consider risk matters relevant to their business, and escalate as required to the
Barclays UK Risk Committee, whose Chairman, in turn, escalates to the Barclays Group Risk Committee, Barclays Bank UK PLC Board
Committees and the Barclays Bank UK PLC Board.

Risk review
Risk management
The Barclays Bank UK PLC Board receives regular information on the risk profile of the Barclays Bank UK Group, and has ultimate
responsibility for risk appetite and capital plans, within the parameters set by the Barclays PLC Board. The Barclays Bank UK 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 the Barclays
Bank UK Group. These are: the Barclays Bank UK PLC Board Risk Committee and the Barclays Bank UK PLC Board Audit Committee.
Additionally, the Barclays Bank UK PLC Board Remuneration Committee oversees pay practices focusing on aligning pay to sustainable
performance.
▪ The Barclays Bank UK PLC Board Risk Committee (BRC): The BRC monitors Barclays Bank UK 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
Committee is comfortable with them. The Barclays Bank UK 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 Barclays Bank UK Group's 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 UK Group CRO or senior risk managers in the business.
▪ The Barclays Bank UK PLC Board Audit Committee (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 UK PLC Board Remuneration Committee (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 UK Group identifies, escalates and manages risk matters.
The Barclays Bank UK 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
▪ colleagues identify, manage and escalate risk and control matters, and meet their responsibilities around risk management
The CEO works with the Executive Management to embed a strong risk culture within the Bank, 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 UK 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. The 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.

Risk review
Material existing and emerging risks to the Barclays Bank UK Group’s future performance
The Barclays Bank UK 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 UK 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 UK
Group’s control, including escalation of terrorism or global conflicts, natural disasters, pandemics and similar events, although not detailed
below, could have a similar impact on the Barclays Bank UK Group.
Material existing and emerging risks potentially impacting more than one principal risk
i) Risks relating to the impact of COVID-19
The COVID-19 pandemic has had, and continues to have, a material impact on businesses around the world and the economic
environments in which they operate. Additionally, the impacts of the economic downturn resulting from the COVID-19 pandemic and post-
recovery environment, from a commercial, regulatory and risk perspective could be significantly different to past crises and persist for a
prolonged period. As a result, 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 UK Group.
The COVID-19 pandemic has caused disruption to the Barclays Bank UK Group’s customers, suppliers and staff. In the UK severe
restrictions on the movement of people were implemented by the UK, Scottish, Welsh and Northern Irish governments, with a resultant
significant impact on economic activity. While a number of restrictions have been eased with the roll-out of COVID-19 vaccination
programmes, others still remain in place and future developments are highly uncertain. It remains unclear how the COVID-19 pandemic
will evolve through 2022 (including whether there will be further waves of the COVID-19 pandemic, whether COVID-19 vaccines continue
to prove effective, whether further new strains of COVID-19 will emerge and whether, and in what manner, additional restrictions will be
imposed and/or existing restrictions extended) and the Barclays Bank UK Group continues to monitor the situation closely. However,
despite the COVID-19 contingency plans established by the Barclays Bank UK Group, the ability to conduct business may be adversely
affected by disruptions to infrastructure and supply chains, business processes and technology services, resulting from the unavailability of
staff due to illness or the failure of third parties to supply services. This may cause significant customer detriment, costs to reimburse losses
incurred by the Barclays Bank UK Group’s customers, potential litigation costs (including regulatory fines, penalties and other sanctions),
and reputational damage.
In the UK, schemes were implemented by the Bank of England, the UK Government and the Financial Conduct Authority to provide financial
support to parts of the economy most impacted by the COVID-19 pandemic. The rapid introduction and varying nature of these support
schemes, as well as customer expectations, required the Barclays Bank UK Group to implement large-scale changes in a short period of
time, leading to an increase in certain risks faced by the Barclays Bank UK Group, including operational risk, conduct risk, reputation risk
and fraud risk. These risks are likely to be heightened further as and when those government and other support schemes expire, are
withdrawn or are no longer supported. Furthermore, the impact from participating in UK Government and Bank of England-supported loan
and other financing schemes may be exacerbated if the Barclays Bank UK Group is required by the UK Government or the Financial
Conduct Authority to offer forbearance or additional financial relief to borrowers or if the Barclays Bank UK Group is unable to rely on
guarantees provided by governments in connection with financial support schemes.
As these schemes and other financial support schemes provided by the UK Government (such as job retention and furlough schemes,
payment deferrals and mass lending schemes) expire, are withdrawn or are no longer supported, there is a risk that economic growth and
employment may be negatively impacted which may, in turn, impact the Barclays Bank UK Group’s results of operations and profitability. In
addition, the Barclays Bank UK Group may experience a higher volume of defaults and delinquencies in certain portfolios, which may
negatively impact the Barclays Bank Group’s RWAs, level of impairment and, in turn, capital position, and may initiate collection and
enforcement actions to recover defaulted debts. The inception of large scale collections and recovery programmes (including the use of
third party debt collection agents) may also create significant risk if (because of the complexity, speed and scale of these programmes)
defaulting borrowers are harmed by the Barclays Bank UK Group’s conduct which may also give rise to civil legal proceedings, including
class actions, regulatory censure, potentially significant fines and other sanctions, and reputational damage. Other legal disputes may also
arise between the Barclays Bank UK Group and defaulting borrowers relating to matters such as breaches or enforcement of legal rights or
obligations arising under loan and other credit agreements. Adverse findings in any such matters may result in the Barclays Bank UK
Group’s rights not being enforced as intended.
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 UK Group. As a result, the Barclays Bank UK Group experienced higher ECLs
in 2020 compared to prior periods though this trend was reversed in 2021 as economic conditions partially recovered. The economic
environment remains uncertain and future impairment charges may be subject to further volatility (including from changes to
macroeconomic variable forecasts) depending on the longevity of the COVID-19 pandemic and related containment measures and the
continued efficacy of any COVID-19 vaccines, as well as the longer term effectiveness of the Bank of England’s, UK Government’s and other
support measures. For further details on macroeconomic variables used in the calculation of ECLs, refer to the credit risk performance
section. In addition, ECLs may be adversely impacted by increased levels of default for single name exposures in certain sectors directly
impacted by the COVID-19 pandemic (such as the retail and hospitality and leisure sectors).
Furthermore, the Barclays Bank UK 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 and assessing capital adequacy. Models are, by their nature, imperfect and incomplete representations of reality
because they rely on assumptions and inputs, and so they may be subject to errors affecting the accuracy of their outputs and/or misused.

Risk review
This may be exacerbated when dealing with unprecedented scenarios, such as the COVID-19 pandemic, due to the lack of reliable historical
reference points and data. For further details on model risk, refer to ‘v) Model risk’ below.
There can be no assurance that economic activity will return to pre-pandemic levels and, accordingly, there could be further adverse
impacts on the Barclays Bank UK Group’s income and profitability caused by lower lending and transaction volumes due to volatility or
weakness in the capital markets. The Bank of England and UK Government actions and other support measures taken in response to the
COVID-19 pandemic may also create restrictions in relation to capital. Restrictions imposed by the UK Government and/or the Prudential
Regulation Authority may further limit management’s flexibility in managing the business and taking action in relation to capital
distributions and capital allocation.
Any and all such events mentioned above could have a material adverse effect on the Barclays Bank UK 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 UK Group’s customers, employees and suppliers.
ii) Business conditions, general economy and geopolitical issues
The Barclays Bank UK Group’s operations are subject to potentially unfavourable global and local economic and market conditions, as well
as geopolitical developments, which may have a material effect on the Barclays Bank UK Group’s business, results of operations, financial
condition and prospects.
A deterioration in global or local economic and market conditions may lead to (among other things): (i) deteriorating business, consumer
or investor confidence and lower levels of fixed asset investment and productivity growth, which in turn may lead to lower client activity,
including lower demand for borrowing from creditworthy customers; (ii) higher default rates, delinquencies, write-offs and impairment
charges as borrowers struggle with the burden of additional debt; (iii) subdued asset prices and payment patterns, including the value of
any collateral held by the Barclays Bank UK Group; and (iv) revisions to calculated ECLs leading to increases in impairment allowances. In
addition, the Barclays Bank UK 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 may lead to further financial instability and affect economic growth. In particular:
▪ Global GDP growth recovered in 2021 from the severe contraction in 2020 as a result of the COVID-19 pandemic. While government
support packages, accommodative monetary policy and the lifting of certain restrictions on movement bolstered economic growth and
confidence in 2021, the global outlook remains highly uncertain, especially regarding: (a) ongoing concerns about how the COVID-19
pandemic may develop; (b) the disruptive impact of the COVID-19 pandemic on supply chains; and (c) how long inflationary pressures
will persist and whether central banks will succeed in normalising monetary policy. These factors could adversely affect economic
growth, affect specific industries or countries or affect the Barclays Bank UK Group’s employees and business operations in affected
countries. Refer to ‘i) Risks relating to the impact of COVID-19’ above for further details.
▪ In the UK, the UK Government’s subsidised job retention and furlough schemes, which were implemented as a response to the
COVID-19 pandemic, came to an end on 30 September 2021. Prior to the end of the job retention and furlough schemes, the UK labour
market performed more favourably than initially predicted at the start of the COVID-19 pandemic, with low unemployment rates and
the number of employees on UK company payrolls surpassing pre-pandemic levels. However, the end of the job retention and furlough
schemes, exacerbated by further uncertainty arising from the impact of new strains of COVID-19 (including the Omicron variant), may
cause upward pressure on unemployment, which may result in higher impairment charges.
▪ Recent increases in inflation have been partly driven by a rebalancing of supply and demand, following the relaxation of restrictions on
movement that were imposed during the COVID-19 pandemic. Monetary policy remains highly accommodative, increasing the risk
that more abrupt government action will be necessary later if inflation does not prove transitory. A prolonged period of rising inflation
may develop into slow or stagnant economic growth if combined with slowing economic expansion and elevated unemployment.
Inflation may be further driven by supply chain disruptions and labour shortages, the imposition of further restrictions on movement
due to the failure to contain the spread of COVID-19, and structural changes in the UK economy after the UK’s exit from the European
Union.
▪ 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 UK Group’s business, results of operations, financial condition and prospects.
Unstable economic conditions could result in (among other things):
▪ a recession in the UK, with lower growth, higher unemployment and falling property prices, which could lead to increased
impairments in relation to a number of the Barclays Bank UK Group’s portfolios (including, but not limited to, its UK mortgage
portfolio, UK unsecured lending portfolio (including credit cards) and commercial real estate exposures)
▪ increased market and interest rate volatility, which could affect the underlying value of assets in the banking book and securities
held by the Barclays Bank UK Group for liquidity purposes
▪ a credit rating downgrade for Barclays Bank UK PLC (either directly or indirectly as a result of a downgrade in the UK sovereign
credit ratings), which could significantly increase Barclays Bank UK PLC’s cost of and/or reduce its access to funding, widen
credit spreads and materially adversely affect Barclays Bank UK PLC’s interest margins and liquidity position

Risk review
▪ a widening of credit spreads more generally or reduced investor appetite for Barclays Bank UK PLC’s debt securities, which could
negatively impact Barclays Bank UK PLC’s cost of and/or access to funding
iii) The impact of interest rate changes on the Barclays Bank UK Group’s profitability
Changes to the Bank of England base interest rate are significant for the Barclays Bank UK Group, especially given the uncertainty as to the
direction of interest rates and the pace at which they may change.
A period of low interest rates and flat yield curves, including any rate cuts and/or negative interest rates, may affect and put pressure on
the Barclays Bank UK 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 UK Group.
Interest rate rises could positively impact the Barclays Bank UK Group’s profitability as income increases due to margin decompression.
However, further 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, could cause stress in the lending portfolio with resultant higher credit losses driving an increased
impairment charge which would most notably impact retail unsecured portfolios and could have a material effect on the Barclays Bank UK
Group’s business, results of operations, financial condition and prospects.
In addition, changes in interest rates could have an adverse impact on the value of the securities held in the Barclays Bank UK Group’s liquid
asset portfolio. Consequently, this could create more volatility than expected through the Barclays Bank UK Group’s Fair Value through
Other Comprehensive Income (FVOCI) reserve.
iv) Competition in the banking and financial services industry
The Barclays Bank UK Group operates in a highly competitive environment in which it must evolve and adapt to the significant changes as a
result of financial regulatory reform, technological advances, increased public scrutiny and prevailing economic conditions. The Barclays
Bank UK 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 UK 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 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 impacts on the banking system and the role of commercial banks within it by disrupting the current
provision of banking products and services. It 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 have required and could require the Barclays Bank UK Group to spend more 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 for the Barclays Bank UK
Group’s products and services, which could reduce the Barclays Bank UK Group's revenues and profitability, or may cause the Barclays
Bank UK 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 price. The failure of any of the Barclays Bank UK Group’s businesses to meet the expectations of clients and
customers, whether due to general market conditions, under-performance, a decision not to offer a particular product or service, changes
in client and customer expectations or other factors, could affect the Barclays Bank UK Group’s ability to attract or retain clients and
customers. Any such impact could, in turn, reduce the Barclays Bank UK Group’s revenues.
v) Regulatory change agenda and impact on business model
The Barclays Bank UK Group remains subject to ongoing significant levels of regulatory change and scrutiny. As a result, regulatory risk will
remain a focus for senior management. Furthermore, a more intensive regulatory approach and enhanced requirements may adversely
affect the Barclays Bank UK Group’s business, capital and risk management strategies and/or may result in the Barclays Bank UK Group
deciding to modify its legal entity, capital and funding structures and business mix, or to exit certain business activities altogether or not to
expand in areas despite otherwise attractive potential.
There are several significant pieces of legislation and areas of focus which will require considerable management attention, cost and
resource, including:
▪ Changes in prudential requirements may impact minimum requirements for own funds and eligible liabilities (MREL) (including
requirements for internal MREL), leverage, liquidity or funding requirements, applicable buffers and/or add-ons to such minimum
requirements and risk weighted assets calculation methodologies all as may be set by international, EU or national authorities. This
includes the upcoming implementation of the remaining Basel III reforms, as well as the expected incorporation of risks associated with
climate change into the prudential framework and increased scrutiny of firms’ governance and risk management frameworks
(including in respect of climate change and ESG risks). Such or similar changes to prudential requirements or additional supervisory

Risk review
and prudential expectations, as well as requirements imposed by the Barclays Bank UK Group’s regulators under the resolution
framework, either individually or in aggregate, may result in, among other things, a need for further management actions to meet the
changed requirements, such as:
– increasing capital, MREL or liquidity resources, reducing leverage and risk weighted assets
– modifying the terms of outstanding capital instruments
– modifying legal entity structure (including with regard to issuance and deployment of capital, MREL and funding)
– changing the Barclays Bank UK Group’s business mix or exiting other businesses
– undertaking other actions to strengthen the Barclays Bank UK Group’s position or resolvability
▪ The Barclays Group is subject to supervisory stress testing of which Barclays Bank UK PLC forms a component part. These exercises
currently include the programmes of the Bank of England and the European Banking Authority (EBA). Failure to meet the requirements
of regulatory stress tests, or the failure by regulators to approve the stress test results and capital plans of the Barclays Group, could
result in the Barclays Group or certain of its members including Barclays Bank UK PLC being required to enhance their capital position,
limit capital distributions or position additional capital in specific subsidiaries.
▪ As a result of the on-shoring of EU legislation in the UK, UK-based entities within the Barclays Group are currently subject to
substantially the same rules and regulations as prior to the UK’s withdrawal from the EU. It is the UK’s intention to recast on-shored EU
legislation as part of UK legislation and PRA and FCA rules, which could result in changes to regulatory requirements in the UK. If the
regulatory regimes for EU and UK financial services change further, the provision of cross-border banking and investment services
across the Barclays Bank UK Group may become more complex and costly which could have a material adverse effect on the Barclays
Bank UK Group’s business and results of operations and could result in the Barclays Bank UK Group modifying its legal entity, capital
and funding structures and business mix, exiting certain business activities altogether or not expanding in areas despite otherwise
attractive potential returns.
For further details on the regulatory supervision of, and regulations applicable to, the Barclays Bank UK Group, refer to the Supervision and
regulation section.
vi) Impact of benchmark interest rate reforms on the Barclays Bank UK Group
Global regulators and central banks in the UK, US and EU have been driving international efforts to reform key benchmark interest rates and
indices, such as the London Interbank Offered Rate (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 alternative risk-free reference rates (RFRs), the discontinuation of certain
reference rates (including LIBOR) and the introduction of implementing legislation and regulations. Specifically, regulators in the UK, US
and EU directed that certain non-US dollar LIBOR tenors would cease at the end of 2021. 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 UK Group, in respect of any financial instruments linked to, or referencing, any of these
benchmark interest rates.
The Barclays Bank UK Group predominantly offers products which reference central bank rates rather than LIBOR or other indices which
are likely to be subject to reform. Consequently, the product offering and business model are unlikely to be significantly affected.
Nevertheless, there are other ways the Barclays Bank UK Group could be affected.
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 UK Group’s financial assets and
liabilities) that use these reference rates and indices, and present a number of risks for the Barclays Bank UK 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 UK Group faces conduct risks. These may lead to customer complaints, regulatory sanctions or reputational impact if the
Barclays Bank UK 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 UK 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 UK Group’s preparation and readiness for the replacement of LIBOR
with alternative RFRs.
▪ Financial risk: the valuation of certain of the Barclays Bank UK Group’s financial assets and liabilities may change. Moreover,
transitioning to alternative RFRs may impact the ability of members of the Barclays Bank UK 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

Risk review
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 an adverse effect on the Barclays Bank UK
Group’s cash flows.
▪ 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 UK 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 UK 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 UK Group’s financial results and performance.
Any of these factors may have a material adverse effect on the Barclays Bank UK 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 UK Group, refer to Note 35.
vii) Change delivery and execution risks
The Barclays Bank UK 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 UK 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 UK Group’s strategy may be limited by operational capacity and the increasing complexity of the
regulatory environment in which the Barclays Bank UK Group operates. In addition, whilst the Barclays Bank UK 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 UK Group’s business, results of operations,
financial condition, customer outcomes, prospects and reputation.
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 UK and
internationally. Embedding climate risk into the Barclays Bank UK Group’s risk framework in line with regulatory expectations and
requirements, and adapting the Barclays Bank UK Group’s operations and strategy to address the financial risks resulting from both: (i) the
physical risk of climate change; and (ii) the risk from the transition to a low-carbon economy, could have a significant impact on the
Barclays Bank UK Group’s business, results of operations, financial condition and prospects, the Barclays Bank UK Group’s customers and
clients and the creditworthiness of the Barclays Bank UK Group’s counterparties.
Physical risks from climate change arise from a number of factors and relate to specific weather events and longer-term shifts in the
climate. The nature and timing of extreme weather events are uncertain but they are increasing in frequency and their impact on the
economy is predicted to be more acute in the future. The potential impact on the economy includes, but is not limited to, lower GDP
growth, higher unemployment and significant changes in asset prices and profitability of industries. Damage to properties and operations
of borrowers could impair asset values and the creditworthiness of customers leading to increased default rates, delinquencies, write-offs
and impairment charges in the Barclays Bank UK Group’s portfolios. In addition, the Barclays Bank UK Group’s premises and resilience may
also suffer physical damage due to weather events leading to increased costs for the Barclays Bank UK Group.
As the economy transitions to a low-carbon economy, financial institutions such as the Barclays Bank UK Group may face significant and
rapid developments in stakeholder expectations, policy, law and regulation which could impact the lending activities the Barclays Bank UK
Group undertakes, as well as the risks associated with its lending portfolios and the value of the Barclays Bank UK Group’s assets. As
sentiment towards climate change shifts and societal preferences change, the Barclays Bank UK 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 UK Group's products, returns on certain business activities and the value of certain assets resulting in impairment charges.
In addition, the impacts of physical and transition climate risks can lead to second order connected risks, which have the potential to affect
the Barclays Bank UK 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. For example, the Barclays Bank UK Group’s UK mortgage and agriculture portfolios are
particularly exposed to both the physical and transition risks of climate change. The mortgage portfolio is affected by the risks of flooding,
subsidence and energy efficiency performance requirements, all of which may impact property valuations, whilst the agriculture portfolio is
exposed to flooding and drought, as well as the potential for legislative changes and changes in consumer behaviour. Furthermore, any

Risk review
subsequent increase in defaults and rising unemployment could create recessionary pressures, which may lead to wider deterioration in the
creditworthiness of the Barclays Bank UK Group’s clients, higher ECLs, and increased charge-offs and defaults among retail customers.
With effect from 1 January 2022, climate risk became one of the principal risks within the Barclays Bank UK Group’s Enterprise Risk
Management Framework. Failure to adequately embed 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 UK 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 UK 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 UK 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 UK
Group faces as a result of climate change). The Barclays Bank UK Group also needs to ensure that its strategy and business model adapt to
changing standards, industry and scientific practices, regulatory requirements and market expectations regarding climate change, which
remain under continuous development and are subject to different interpretations. There can be no assurance that these standards,
practices, requirements and expectations will not be interpreted differently than what was the Barclays Group’s understanding when
defining its climate-related ambitions and targets, or change in a manner that substantially increases the cost or effort for the Barclays
Bank UK Group to achieve such ambitions and targets. In addition, the Barclays Group’s ambitions and targets may prove to be
considerably more difficult or even impossible to achieve under such changing circumstances. This may be exacerbated if the Barclays
Group chooses or is required to accelerate its climate-related ambitions or targets as a result of (among other things) 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 UK
Group’s control, including (among other things) availability of data to measure and assess the climate impact of the Barclays Bank UK
Group’s customers, advancements of low-carbon technologies and supportive public policies in the markets where the Barclays Bank UK
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 UK Group’s business,
results of operations, financial condition, prospects and reputation.
For further details on the Barclays Bank UK 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 UK Group from the failure of clients, customers or counterparties, including sovereigns, to
fully honour their obligations to members of the Barclays Bank UK Group, including the whole and timely payment of principal, interest,
collateral and other receivables.
a) Impairment
Impairment is calculated in line with the requirements of IFRS9 which results in recognition of loss allowances, based on ECLs, on a
forward-looking basis using a broad scope of financial instruments. Measurement involves complex judgement and impairment charges
are potentially volatile, particularly under stressed conditions which could have a material adverse effect on the Barclays Bank UK Group’s
business, results of operations, financial condition and prospects. For further details, refer to Note 7.
b) Specific sectors and concentrations
The Barclays Bank UK Group is subject to risks arising from changes in credit quality and recovery rates of loans and advances due from
borrowers and counterparties in any specific portfolio. Any deterioration in credit quality could lead to lower recoverability and higher
impairment in a specific sector. The following are areas of uncertainties to the Barclays Bank UK Group’s portfolio which could have a
material impact on performance:
▪ Consumer affordability: this has remained a key area of focus, particularly in unsecured lending. 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.
▪ UK real estate market: UK property represents a significant portion of the overall Barclays Bank UK Group’s retail credit exposure. In
2021, property prices rose, particularly in the residential property market where customers took advantage of temporary changes in
stamp duty rates or sought more space as home working became more prevalent during the COVID-19 pandemic. However, there can
be no assurance that house price growth will continue in 2022. House price growth and fewer new high loan-to-value (LTV)
mortgages in 2020 and the beginning of 2021, have diluted the Barclays Bank UK Group’s high LTV stock to very low levels, but there is
potential for house prices to fall, especially in London and the South East of the UK where the Barclays Bank UK Group has a high
exposure. In addition, small segments of the housing market could be subject to specific valuation impacts (for example, certain
properties within the Barclays Bank Group’s residential loan portfolio may be subject to remediation activities relating to fire safety
standards).

Risk review
For further details on the Barclays Bank UK Group’s approach to credit risk, refer to the credit risk management and credit risk performance
sections.
iii) Treasury and capital risk
There are three primary types of treasury and capital risk faced by the Barclays Bank UK Group:
a) Liquidity risk
Liquidity risk is the risk that the Barclays Bank UK 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 UK Group
to fail to meet internal and/or regulatory liquidity requirements, make repayments as they fall due or be unable to support day-to-day
banking activities. Key liquidity risks that the Barclays Bank UK Group faces include:
▪ Stability of the Barclays Bank UK Group’s deposit funding profile: deposits which are payable on demand or at short notice could be
affected by the Barclays Bank UK Group failing to preserve the current level of customer and investor confidence
▪ Impacts of market volatility: adverse market conditions, with increased volatility in asset prices can negatively impact the Barclays
Bank UK Group’s liquidity position through increased derivative margin requirements and/or wider haircuts when monetising liquidity
pool securities, and make it more difficult to execute secured financing transactions
▪ Intraday liquidity usage: increased collateral requirements at payments and securities settlement systems could negatively impact the
Barclays Bank UK 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, negatively affecting the Barclays Bank UK Group’s liquidity position
▪ Credit rating changes and the impact on funding costs: any reductions in a credit rating (in particular, any downgrade below
investment grade) may affect the Barclays Bank UK Group’s access to the money markets and/or terms on which the Barclays Bank UK
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 UK Group)
b) Capital risk
Capital risk is the risk that the Barclays Bank UK 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 includes the risk from the Barclays Bank UK Group’s pension plans.
Key capital risks that the Barclays Bank UK Group faces include:
• Failure to meet prudential capital requirements: This could lead to the Barclays Bank UK 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 including the ability to meet dividend targets, and/or the need to take additional measures to
strengthen the Barclays Bank UK Group's capital or leverage position.
• Adverse changes in FX rates impacting capital ratios: The Barclays Bank UK Group share capital is denominated in Sterling. However,
some capital resources and MREL are 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 UK Group’s regulatory capital ratios are sensitive to
foreign currency movements. Failure to appropriately manage the Barclays Bank UK Group’s balance sheet to take account of foreign
currency movements could result in an adverse impact on its regulatory capital.
c) Interest rate risk in the banking book
Interest rate risk in the banking book is the risk that the Barclays Bank UK 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 UK 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. A decline
in sterling interest rates may also compress net interest margin on retail portfolios. In addition, the Barclays Bank UK 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 UK Group.
For further details on the Barclays Bank UK Group’s approach to treasury and capital risk, refer to the treasury and capital risk management
and treasury and capital risk performance sections.
iv) Operational risk
Operational risk is the risk of loss to the Barclays Bank UK 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:

Risk review
a) Operational resilience
The Barclays Bank UK Group functions in a highly competitive market, with market participants that expect consistent and smooth
business processes. The loss of or disruption to business processing is a material inherent risk within the Barclays Bank UK Group and
across the financial services industry, whether arising through impacts on the Barclays Bank UK Group’s technology systems, real estate
services including its retail branch network, or availability of personnel or services supplied by third parties. Failure to build resilience and
recovery capabilities into business processes or into the services of technology, real estate or suppliers on which the Barclays Bank UK
Group’s business processes depend, may result in significant customer detriment, costs to reimburse losses incurred by the Barclays Bank
UK 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 UK
Group, like other financial institutions, experiences numerous attempts to compromise its cybersecurity.
The Barclays Bank UK Group dedicates significant resources to reducing cybersecurity risks, but it cannot provide absolute security against
cyberattacks. Malicious actors are increasingly sophisticated in their methods, seeking to steal money, gain unauthorised access to, destroy
or manipulate data, and disrupt operations, and some of their attacks may not be recognised until launched, such as zero-day attacks that
are launched before patches and defences can be readied. Cyberattacks can originate from a wide variety of sources and target the
Barclays Bank UK Group in numerous ways, including attacks on networks, systems, or devices used by the Barclays Bank UK Group or
parties such as service providers and other suppliers, counterparties, employees, contractors, customers or clients, presenting the Barclays
Bank UK Group with a vast and complex defence perimeter. Moreover, the Barclays Bank UK 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 UK Group’s ability to effectively defend against certain threats. Some of the Barclays Bank UK 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 a limited impact on the Barclays Bank UK Group’s operations. Such
cyberattacks are likely to continue.
A failure in the Barclays Bank UK Group’s adherence to its cybersecurity policies, procedures or controls, employee malfeasance, and
human, governance or technological error could also compromise the Barclays Bank UK Group’s ability to successfully 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 UK 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 will continue 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 UK Group’s employees,
contractors, and third party service providers and suppliers and their subcontractors as a potentially long-term consequence of the
COVID-19 pandemic. Bad actors have taken advantage of remote working practices and modified customer behaviours that have taken
hold during the COVID-19 pandemic, exploiting the situation in novel ways that may elude defences.
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; 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; 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 UK Group or its clients and customers, including exposure to potential contractual
liability, litigation, regulatory or other government action, loss of existing or potential customers, damage to the Barclays Bank UK Group’s
brand and reputation, and other financial loss. The impact of a successful cyberattack is also 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 for the Barclays Bank UK Group.
For further details on the Barclays Bank UK Group’s approach to cyberattacks, refer to the operational risk performance section. For further
details on cybersecurity regulation applicable to the Barclays Bank UK Group, refer to the supervision and regulation section.
c) New and emergent technology
Technology is fundamental to the Barclays Bank UK 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 UK Group, with new solutions being
developed both in-house and in association with third-party companies. For example, payment services are increasingly occurring
electronically, both on the Barclays Bank UK Group’s own systems and through other alternative systems, and becoming automated. Whilst
increased use of electronic payment systems could significantly reduce the Barclays Bank UK Group’s cost base, it may, conversely, reduce
the commissions, fees and margins made by the Barclays Bank UK Group on these transactions which could have a material adverse effect
on the Barclays Bank UK Group’s business, results of operations, financial condition and prospects. Introducing new forms of technology,
however, has the potential to increase inherent risk. Failure to evaluate, actively manage and closely monitor risk exposure during all
phases of business development could introduce new vulnerabilities and security flaws and have a material adverse effect on the Barclays
Bank UK Group’s business, results of operations, financial condition and prospects.

Risk review
d) External fraud
The nature of fraud is wide-ranging and continues to evolve, as criminals continually seek opportunities to target the Barclays Bank UK
Group’s business activities and exploit changes to 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
highly organised crime groups who use ever more sophisticated techniques to target customers and clients directly to obtain confidential
or personal information that can be used to commit fraud. The UK market has also seen significant growth in “scams” where the Barclays
Bank UK Group takes increased levels of liability as part of a voluntary code to provide additional safeguards to customers and clients who
are tricked into making payments to fraudsters. 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 UK Group’s business, results of operations, financial condition and prospects.
e) Data management and information protection
The Barclays Bank UK Group holds and processes large volumes of data, including personal information, intellectual property, and financial
data and the Barclays Bank UK Group’s businesses are subject to complex and evolving laws and regulations governing the privacy and
protection of personal information of individuals. The protected parties can include: (i) the Barclays Bank UK Group’s clients and customers,
and prospective clients and customers; (ii) clients and customers of the Barclays Bank UK Group’s clients and customers; (iii) employees
and prospective employees; and (iv) employees of the Barclays Bank UK Group’s suppliers, counterparties and other external parties.
Concerns regarding the effectiveness of the Barclays Bank UK Group’s measures to safeguard personal information, or even the perception
that those measures are inadequate, could expose the Barclays Bank UK Group to the risk of loss or unavailability of data or data integrity
issues and/or cause the Barclays Bank UK Group to lose existing or potential clients and customers, and thereby reduce the Barclays Bank
UK Group’s revenues. Furthermore, any failure or perceived failure by the Barclays Bank UK Group to comply with applicable privacy or data
protection laws and regulations (and the evolving standards imposed by data protection authorities in connection therewith) may subject it
to potential contractual liability, litigation, regulatory or other government investigation or action (including significant regulatory fines)
and require changes to certain operations or practices which could also inhibit the Barclays Bank UK 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 UK
Group’s reputation, subject the Barclays Bank UK Group to material fines or other monetary penalties, make the Barclays Bank UK 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 UK Group, refer to the supervision and regulation section.
f) Processing errors
The Barclays Bank UK 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 complex and occur at high volumes and frequencies. As the Barclays Bank UK Group’s customer base
expands and the volume, speed, frequency and complexity of transactions 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 UK Group’s control, such as a spike in transaction volume, could adversely affect the Barclays Bank UK
Group’s ability to process transactions or provide banking and payment services.
Processing errors could result in the Barclays Bank UK 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 and/or other
transactions to be executed erroneously, illegally or with unintended consequences; and (iv) adversely affecting financial markets. Any of
these events could materially disadvantage the Barclays Bank UK Group’s customers, clients and counterparties (including them suffering
financial loss) and/or result in a loss of confidence in the Barclays Bank UK Group which, in turn, could have a material adverse effect on
the Barclays Bank UK Group’s business, results of operations, financial condition and prospects.
g) Supplier exposure
The Barclays Bank UK Group depends on suppliers for the provision of many of its services and the development of technology. Whilst the
Barclays Bank UK Group depends on suppliers, it remains fully accountable for any risk arising from the actions of suppliers. 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 UK Group’s ability to continue to provide material services to its customers. Failure to
adequately manage supplier risk could have a material adverse effect on the Barclays Bank UK Group’s business, results of operations,
financial condition and prospects.
h) 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, fair value of
financial instruments, goodwill and intangible assets 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

Risk review
assumptions used, subsequently turn out to be incorrect, this could result in material losses to the Barclays Bank UK Group, beyond what
was anticipated or provided for. Further development of accounting standards and regulatory interpretations could also materially impact
the Barclays Bank UK Group’s results of operations, financial condition and prospects.
i) Tax risk
The Barclays Bank UK Group is required to comply with the tax laws and practice of all countries in which it has business operations. There
is a risk that the Barclays Bank UK 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, or by failing to manage its tax affairs in an appropriate manner. In addition,
increasing tax authority focus on customer tax reporting requirements for UK and international customers and the digitisation of the
administration of tax has potential to increase the Barclays Bank UK Group’s tax compliance obligations further.
j) Ability to hire and retain appropriately qualified employees
As a regulated financial institution, the Barclays Bank UK Group requires diversified and specialist skilled colleagues. The Barclays Bank UK
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 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 UK Group’s business, results of operations, financial condition and prospects. Additionally, this
may result in disruption to service which could in turn lead to disenfranchising certain customer groups, customer detriment and
reputational damage.
For further details on the Barclays Bank UK Group’s approach to operational risk, refer to the operational risk management and operational
risk performance sections.
v) Model risk
Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. The
Barclays Bank UK 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, assessing capital adequacy, supporting new business acceptance and 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, such as 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 UK 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 UK Group making inappropriate business decisions and/or inaccuracies or errors in the Barclays Bank UK 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 UK Group’s business, results of operations, financial condition and prospects.
For further details on the Barclays Bank UK Group’s approach to model risk, refer to the model risk management and model risk
performance sections.
vi) 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 UK
Group’s products and services. This risk could manifest itself in a variety of ways, including:
a) Market integrity
The Barclays Bank UK 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 UK Group’s business, results of operations, financial condition and
prospects. Examples of employee misconduct which could have a material adverse effect on the Barclays Bank UK Group’s business
include: (i) employees improperly selling or marketing the Barclays Bank UK Group’s products and services; (ii) employees engaging in
insider trading, market manipulation or unauthorised trading; or (iii) employees misappropriating confidential or proprietary information
belonging to the Barclays Bank UK Group, its customers or third parties. These risks may be exacerbated in circumstances where the
Barclays Bank UK Group is unable to rely on physical oversight and supervision of employees (such as during the COVID-19 pandemic
where employees have worked remotely).
b) Customer protection
The Barclays Bank UK 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 UK Group’s financial services and understand that they are appropriately protected if
something goes wrong. Poor customer outcomes can result from the failure to: (i) communicate fairly and clearly with customers; (ii)

Risk review
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 UK
Group is at risk of financial loss and reputational damage as a result.
c) Product design and review risk
Products and services must meet the needs of clients, customers, markets and the Barclays Bank UK Group throughout their life cycle.
However, there is a risk that the design and review of the Barclays Bank UK Group’s products and services fail to reasonably consider and
address potential or actual negative outcomes, 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 UK Group.
d) Financial crime
The Barclays Bank UK 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 regulations covering financial institutions
continue to focus on combating financial crime. Failure to comply may lead to enforcement action by the Barclays Bank UK Group’s
regulators, including severe penalties, which may have a material adverse effect on the Barclays Bank UK Group’s business, financial
condition and prospects.
e) 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 have reinforced additional accountabilities for individuals across the Barclays Bank UK Group with an increased focus on
governance and rigour. Failure to meet these requirements and expectations may lead to regulatory sanctions, both for the individuals and
the Barclays Bank UK Group.
For further details on the Barclays Bank UK Group’s approach to conduct risk, refer to the conduct risk management and conduct risk
performance sections.
vii) Reputation risk
Reputation risk is the risk that an action, transaction, investment, event, decision or business relationship will reduce trust in the Barclays
Bank UK 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 UK Group’s overall reputation and any
one transaction, investment or event (in the perception of key stakeholders) can reduce trust in the Barclays Bank UK Group’s integrity and
competence. The Barclays Bank UK 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 UK 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 UK Group
(including its employees, clients and other associations) conducts its business activities, or the Barclays Bank UK 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 UK 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 UK 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 UK Group (refer to ‘iv) Operational risk’ above).
For further details on the Barclays Bank UK Group’s approach to reputation risk, refer to the reputation risk management and reputation
risk performance sections.
viii) Legal risk and legal, competition and regulatory matters
The Barclays Bank UK Group conducts activities in a highly regulated 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 are often unclear in their application to particular circumstances especially in new and emerging areas; and (ii) the
diversified and evolving nature of the Barclays Bank UK Group’s businesses and business practices. In each case, this exposes the Barclays

Risk review
Bank UK 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 UK Group to meet their respective legal obligations, including legal 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 UK Group or its employees could result in criminal prosecution,
regulatory censure, potentially significant fines and other sanctions. Where clients, customers or other third parties are harmed by the
Barclays Bank UK 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 UK 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 UK
Group being liable to third parties or may result in the Barclays Bank UK Group’s rights not being enforced as intended.
Details of legal, competition and regulatory matters to which the Barclays Bank UK Group is currently exposed are set out in Note 24. In
addition to matters specifically described in Note 24, the Barclays Bank UK Group is engaged in various other legal proceedings which arise
in the ordinary course of business. The Barclays Bank UK 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 UK 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 UK 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 UK 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 UK 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 UK Group is currently exposed and any
others which may arise in the future, is difficult to predict. In connection with such matters, the Barclays Bank UK Group may incur
significant expense, regardless of the ultimate outcome, and any such matters could expose the Barclays Bank UK 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 UK Group’s business operations including the withdrawal of authorisations; increased
regulatory compliance requirements or changes to laws or regulations; suspension of operations; public reprimands; loss of significant
assets or business; a negative effect on the Barclays Bank UK 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 UK Group’s business, results of operations,
financial condition and prospects.

Risk review
Climate risk management
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.
Overview
Given the increasing risks associated with climate change, and to support the Barclays Group’s ambition to be a net zero bank by 2050, it
was agreed that climate risk would become a Principal Risk from 2022.
To support this decision, in 2021 the Barclays Group delivered a Climate Risk Integration Plan with three overarching objectives:
1. Governance Framework: Develop a Principal Risk Framework and Risk Appetite Statement and integrate climate drivers into limit
setting
2. Scenario Analysis: Refine methodologies used for the 2020 scenario analysis to support the Bank of England Biennial Exploratory
Scenario on climate change, with specific focus on wholesale credit and physical risk modelling
TM
3. Carbon Modelling: Enhance the BlueTrack model to further develop the approach for the Energy sector, expand coverage to Cement
and Metals and consider the overall net zero ambition of the Barclays Group
For more detail on how climate risks arise and their impact on the Barclays Bank UK Group, refer to the ‘material existing and emerging
risks’ section.
Organisation and Structure

On behalf of the Barclays Bank UK Board, the Barclays Bank UK PLC Board Risk Committee reviews and approves the Barclays Bank UK
approach to managing the financial and operational risks associated with climate change. Reputation risk is the responsibility of the
Barclays Bank UK Board, which directly handles the most material issues facing Barclays Bank UK. Broader sustainability matters and other
reputation risk issues associated with climate change are coordinated by the Sustainability team.
Within Barclays Bank UK, a Climate Risk lead was appointed in 2021, and a Barclays Bank UK Climate Risk Forum was established in
November 2021. The forum provides support, guidance and oversight of the implementation and operation of Climate Risk within Barclays
Bank UK . The Barclays Bank UK Climate Risk Forum escalates to the Barclays UK Risk Committee and also into the Group Climate Risk
Committee (CRC).
To support the oversight of Barclays Group climate risk profile, a Climate Risk Committee (CRC) has been established. The CRC is chaired
by the Head of Climate Risk, who took the role of Climate Principal Risk owner in 2021, reporting directly to the Group Chief Risk Officer.
The CRC is a subcommittee of the Group Risk Committee (GRC), the most senior executive body responsible for review and challenge of
risk practices and risk profile, for climate risk and other principal risk types. The authority of the CRC is delegated by the GRC.

Risk review
The Climate Risk Framework (CRF) was developed in 2021 to support the Enterprise Risk Management Framework and outlines the key
principles for managing climate risk.
Climate risk across certain other Principal Risk types is managed via a ‘Climate Change Financial Risk and Operational Risk Policy’, which is
embedded in each of the following Principal Risk Frameworks and contains key principles for identifying and quantifying climate risk, with
supporting reporting and governance.

Risk review
Risk Type Risk Identification Risk Measurement

Credit risk Identified as part of sovereign, portfolio and Measured using a Credit Risk Materiality Matrix
obligor credit annual reviews. completed for obligor/obligee groups with elevated
exposure to climate change risk. Retail portfolios are
monitored through regular reporting of climate
metrics and are assessed against mandate triggers
where appropriate.
Market risk Identified using stress tests, aggregate market risk Measured by using adverse multi-asset stress
exposures from climate related risks. scenarios applied to individual risk factors reflecting
climate change risks across sectors, countries and
regions.
Treasury and capital risk Identified using stress tests and analysis to assess Measured as part of stress testing and key risk
the exposures which may be impacted by climate indicator monitoring.
related risks.
Operational risk Confirmed operational risks associated with Established reporting on internal and external
climate change are included in the Bank’s climate related risk events to the Operational Risk
Operational Risk Taxonomy. Climate risk included Committee. Risk tolerances for premises and
within the Strategic Risk Assessment process. resilience risks are reviewed so these adequately
capture climate related risk drivers.
Risks resulting from climate change aligned to 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. As climate risk continues to evolve, the effect upon these risks
may change. Specific consideration of the impact of these changes will be covered as part of these frameworks.
A Climate Risk Appetite at Barclays Group level was introduced in line with the Barclays Group’s risk appetite approach. It establishes a
direct link between strategic plans and risk appetite, supporting the Barclays Group’s ambition to be a net zero bank by 2050. The Barclays
Bank UK Group has introduced a climate risk appetite and constraint, in line with the Barclays Group approach. Work is ongoing to define
quantitative targets against which the strategic plan will be tested.
Linking with ESG and Reputation Risk
Barclays has published a Climate Change Statement, which sets out the strategic ambition to support economies and clients through the
net zero transition, as well as appetite for conducting business with particularly sensitive energy sub-sectors. It is supported by an internal
Climate Change Standard, which outlines the controls and approach to these sectors in more detail, including requirements for enhanced
due diligence for restricted activities (such as outlined in the Barclays Group Forestry & Palm Oil Standard).
These standards are enforced through an existing transaction origination, review and approval process.
A dedicated Sustainability team considers how the Barclays Group approaches wider sustainability and ESG matters, working closely with
the Environmental Risk Management function.

Risk review
Credit risk management (audited)
The risk of loss to the Barclays Bank UK Group from the failure of clients, customers or counterparties, including sovereigns, to fully
honour their obligations to the Barclays Bank UK Group including the whole and timely payment of principal, interest, collateral and other
receivables.
Overview
The credit risk that the Barclays Bank UK Group faces arises from retail and wholesale loans and advances together with the counterparty
credit risk arising from derivative contracts with market counterparties; trading activities, including: debt securities, settlement balances
with market counterparties, FVOCI assets and reverse repurchase loans. Wholesale lending in the Barclays Bank UK Group includes
Business Banking, Education, Social Housing and Local Authorities (ESHLA) and Wealth UK portfolios.
Credit risk management objectives are to:
▪ maintain a framework of controls to oversee credit risk

▪ identify, assess and measure credit risk clearly and accurately across the Barclays Bank UK 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 UK 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 Barclays UK 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; maintaining robust processes, 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; and review
and validation of credit risk measurement models. The credit risk management teams in the Barclays Bank UK Group are accountable to the
Barclays Bank UK Group CRO who, in turn, reports to the Barclays Group CRO.
For wholesale portfolios, credit risk managers are organised in sanctioning teams by client portfolio. In the 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 entrusted with the higher levels of delegated authority. The largest credit exposures require the support of
the Barclays Bank UK PLC Senior Credit Officer. For exposures in excess of the Barclays Bank UK PLC Senior Credit Officer’s authority,
approval by the Barclays Bank UK PLC CRO is also required. Where exposures are also of Barclays Group level significance, the Barclays
Group Credit Risk Committee, attended by the Barclays Bank UK PLC Senior Credit Officer, provides a formal mechanism for the Barclays
Group Senior Credit Officer to exercise the highest level of credit authority.
Credit risk mitigation

The Barclays Bank UK 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 UK 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 UK 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

Risk review
▪ other retail lending: includes second lien charges over residential property and finance lease receivables
▪ derivatives: the Barclays Bank UK Group also often seeks to enter into a margin agreement (e.g. Credit Support Annex) with
counterparties with which the Barclays Bank UK 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 UK Group subject to an agreement to return them for a fixed price
▪ financial guarantees and similar off-balance sheet commitments: cash collateral may be held against these arrangements
Risk transfer
A range of instruments including guarantees 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 reduced
▪ 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 UK Group’s assets and liabilities from fluctuation
in market variables including, but not limited to, interest rates, foreign exchange, credit spreads, implied volatilities and asset correlations.
Overview
Market Risk within the Barclays Bank UK Group arises from the risk management of the assets held within the liquidity pool. As a result, the
market risk in the Barclays Bank UK Group is minimal. Transactions carrying market risk are executed by the Barclays Bank UK Group
Treasury function.

The objectives of market risk management are to:
▪ understand and control market risk by robust measurement, limit setting, reporting and oversight
▪ control market risk within 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 UK PLC Board Risk Committee recommends market risk appetite to the Barclays Bank UK PLC Board for their approval,
within the parameters set by the Barclays PLC Board. The Barclays Bank UK Group CRO confirms the Barclays Bank UK Group market risk
appetite with the Barclays Group CRO.
The Market Risk Committee reviews and makes recommendations concerning the Barclays Group-wide market risk profile to the Barclays
Group Risk Committee. This includes overseeing the operation of the Market Risk Framework and associated standards and policies;
reviewing market or regulatory issues and limits and utilisation. 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.
The Barclays Bank UK Group Treasurer is accountable for all market risks associated with its activities, whilst the Barclays Bank UK Group
CRO is the senior manager accountable for oversight of market risk, in line with the Barclays Group Framework.
Treasury and capital risk management
This comprises:
Liquidity risk: The risk that the Barclays Bank UK 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 UK 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 UK Group’s pension
plans.
Interest rate risk in the banking book (IRRBB): The risk that the Barclays Bank UK Group is exposed to capital or income volatility
because of a mismatch between the interest rate exposures of its (non-traded) assets and liabilities.
Barclays Bank UK Group Treasury manages treasury and capital risk exposure on a day-to-day basis with the Barclays Bank UK PLC Asset
and Liability Committee (ALCO) acting as the principal management body. The Treasury and Capital Risk function is responsible for
oversight and provide insight into key capital, liquidity and interest rate risk in the banking book (IRRBB) activities.

Risk review
Liquidity risk management (audited)
Overview
The efficient management of liquidity is essential to the Barclays Bank UK Group 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 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, quality
and funding tenor profile to remain within the liquidity risk appetite as expressed by the Barclays Bank UK PLC Board. The liquidity risk
appetite is monitored against both internal and regulatory liquidity metrics.

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 Barclays Bank UK Treasury and Capital Risk function is
responsible for the management and governance of the liquidity risk framework, consistently with Barclays PLC Group policies and
framework and with Barclays Bank UK CRO mandates.
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 Board.
The framework incorporates a range of ongoing business management tools to monitor, limit and stress test the Barclays Bank UK Group’s
balance sheet and contingent liabilities. 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. In addition, Barclays Group maintains a recovery plan which includes application to the
Barclays Bank UK Group. Together, these tools reduce the likelihood that a liquidity stress event could lead to an inability to meet the
Barclays Bank UK Group’s obligations as they fall due.
The Barclays Bank UK Board approves the Barclays Bank UK Group funding plan, internal stress tests, regulatory stress test results, and the
Barclays Bank UK contribution to the Barclays Group recovery plan. The Barclays Bank UK PLC ALCO is responsible for monitoring and
managing liquidity risk in line with the Barclays Bank UK Group’s funding management objectives, funding plan and risk framework. The
Barclays UK 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 UK PLC Board Risk Committee reviews the risk profile, and reviews liquidity risk appetite at
least annually and the impact of stress scenarios on the Barclays Bank UK Group funding plan/forecast in order to agree the Barclays Bank
UK Group’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 UK Group 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.

Treasury has the primary responsibility for managing and monitoring capital adequacy. The Barclays Bank UK Group Treasury and Capital
Risk function provides oversight of capital risk . Production of the Barclays Bank UK PLC Internal Capital Adequacy Assessment Process is
the responsibility of Barclays Bank UK Group Treasury.
Capital risk management is underpinned by a control framework and policies. Capital plans reflect the capital management strategy and
are implemented to deliver on the Barclays Bank UK Group’s objectives, which are aligned to those of Barclays Group. The Barclays Bank UK
Group-specific capital plans are developed in conformance with the Barclays Group control framework and policies for capital risk.
The Barclays Bank UK PLC Board approves the Barclays Bank UK Group capital plan, internal stress tests and results of regulatory stress
tests. The Barclays Bank UK PLC Board also approves the recovery options documented in the Barclays Group recovery plan pertaining to
the Barclays Bank UK Group. The Barclays Bank UK PLC ALCO is responsible for monitoring and managing capital risk in line with the
Barclays Bank UK Group’s capital management objectives, capital plan and risk frameworks. The Barclays UK Risk Committee monitors and
reviews the capital risk profile and control environment, providing second line oversight of the management of capital risk. The Barclays
Bank UK PLC Board Risk Committee reviews the risk profile, and sets risk appetite at a minimum annually and the impact of stress scenarios
on the Barclays Bank UK Group capital plan/forecast in order to agree Barclays Bank UK Group’s projected capital resources.
Management assures compliance with minimum regulatory capital requirements by reporting to the Barclays Bank UK PLC ALCO with
oversight by the Barclays Group Treasury Committee, as required. In 2021, Barclays complied with all regulatory minimum capital
requirements.
Pension risk
Barclays Bank UK PLC is a participating employer in the UK Retirement Fund (UKRF), whose assets and liabilities are currently held on the
Barclays Bank PLC balance sheet. This participation is expected to cease in 2025. The nature of pension risk for Barclays Bank UK PLC is
contingent, specifically on a Barclays Bank PLC default. Refer to note 28 Staff Costs for further detail.

Risk review
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 UK 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 UK 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 their contractual obligations with the Barclays Bank UK 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.

The Barclays Bank UK Group ALCO, together with the Barclays Group Treasury Committee, are responsible for monitoring and managing
IRRBB risk in line with the Barclays Bank UK Group’s management objectives and risk frameworks. The Barclays UK Risk Committee 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 Barclays Bank UK Group BRC reviews the interest rate risk profile, including setting of risk appetite at a
minimum annually and the impact of stress scenarios on the interest rate risk of the Barclays Bank UK Group’s banking books.
In addition, the Barclays Bank UK 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.
Operational risk management
The risk of loss to the Barclays Bank UK 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 UK Group’s strategy, the stated
risk appetite and stakeholder needs
The Barclays Bank UK Group operates within a system of internal controls that enables business to be transacted and risk taken without
exposing Barclays Bank UK Group to unacceptable potential losses or reputational damages.

The prime responsibility for the management of operational risk and the compliance with control requirements rests with the business and
functional units where the risk arises. The operational risk profile and control environment is reviewed by business 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 UK Operational Risk Committee, the Barclays UK Risk Committee, the Barclays
Bank UK PLC Board Risk Committee or the Barclays Bank UK PLC Board Audit Committee. In addition, specific reports are prepared by
Operational Risk on a regular basis for the GRC and the Barclays Bank UK PLC Board Risk Committee. The new Barclays UK Operational Risk
Committee was established in 2021 to strengthen governance and oversight of Operational Risk.
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. Specific reports are prepared by the business and Barclays Bank UK Group Operational Risk on a regular
basis for the Barclays UK Operational Risk Committee, the Barclays UK Risk Committee, and the BRC.
The Barclays Group Head of Operational Risk is responsible for establishing, owning and maintaining an appropriate Barclays Group-wide
Operational Risk Framework, meanwhile the Barclays Bank UK PLC Head of Operational Risk is responsible for overseeing the portfolio of
operational risk across all Barclays Bank UK 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 the Barclays Bank UK 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.

Risk review
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 Resilience Planning Risk; Payments Process
Risk; People Risk; Premises Risk; Physical Security Risk; Strategic Investment Change Management Risk; Supplier Risk; Tax Risk; Technology
Risk and Transaction Operations Risk.
Risk themes
Barclays Bank UK Group also recognises that there are certain threats/risk drivers that are more thematic and have the potential to impact
Barclays Bank UK Group’s strategic objectives. These are risk themes which require an overarching and integrated risk management
approach. The Barclays Bank UK Group’s risk themes include Cyber, Data and Resilience.
For definitions of the Barclays Bank UK Group’s operational risk categories and risk themes, refer to page 132 of the Barclays Bank UK PLC
Pillar 3 Report 2021.
Model risk management
The potential for adverse consequences from decisions based on incorrect or misused model outputs and reports.
Overview
The Barclays Bank UK 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.

The Barclays Group has a dedicated Model Risk Management (MRM) function that consists of four teams: (i) Independent Validation Unit
(IVU), responsible for model validation and approval; (ii) Model Governance (MG), responsible for model risk governance, controls and
reporting, including ownership of Model Risk Framework, the Group Model Risk Policy, and the associated standards; (iii) Strategy and
Transformation, responsible for inventory, strategy, communications and business management and (iv) Model Risk Measurement and
Quantification (MRMQ), responsible for the design of the framework and methodology to measure and, where 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 management framework consists of the model risk policy and standards. The policy prescribes 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, complexity and materiality, testing and monitoring, overlays, risk appetite,
as well as vendor models 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 Bank UK Group.
The key model risk management activities include:
▪ Correctly identifying models across all relevant areas of the Barclays Bank UK Group, and recording models in the Barclays Bank UK
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 UK Group’s
products and services.
Overview
The Barclays Bank UK Group defines, manages and mitigates conduct risk with the objective of providing good customer and client
outcomes, protecting market integrity and promoting effective competition.
Conduct risk incorporates market integrity, customer protection, financial crime and product design and review risks.

The Conduct Risk Management Framework (CRMF) outlines how the Barclays Bank UK Group manages and measures its Conduct Risk
Profile. The Group Chief Compliance Officer is accountable for developing, maintaining and overseeing a group-wide CRMF. The Barclays
Bank UK Group Chief Compliance Officer is responsible for providing effective oversight, management and escalation of conduct risk in line

Risk review
with the CRMF at the Entity and Subsidiary level. This includes overseeing the development and maintenance of the relevant conduct risk
policies and standards including 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 helps to prevent, detect and manage breaches of applicable laws, rules, regulations
and procedures and has a key role in helping Barclays achieve the right conduct outcomes and evolve a conduct-focused culture.
The governance of conduct risk within the Barclays Bank UK Group is fulfilled through management committees and forums operated by
the first and second lines of defence with clear escalation and reporting lines into Board level committees. The Barclays Bank UK Group Risk
Committee is the primary second line governance committees for the oversight of the conduct risk profile. The Barclays Bank UK risk
committee’s responsibilities include the identification and discussion of any emerging conduct risks exposures in the Barclays Bank UK
Group.
Reputation risk management
The risk that an action, transaction, investment, event, decision, or business relationship will reduce trust in the Barclays Bank UK Group’s
integrity and/or competence.
Overview
A reduction of trust in the Barclays Bank UK Group’s integrity and competence may reduce the attractiveness of the Barclays Bank UK
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.

The Barclays PLC Board is responsible for reviewing and monitoring the effectiveness of the Barclays Bank UK Group’s management of
reputation risk.
The Barclays Bank UK Group Chief Compliance Officer is responsible for overseeing the management of Reputation Risk for Barclays Bank
UK Group and the Head of Public Policy and Corporate Responsibility is responsible for developing a reputation risk policy and associated
standards, including tolerances against which data is monitored, reported on and escalated, as required. The Reputation Risk Management
Framework sets out what is required to manage reputation risk across the Barclays Bank UK Group.
The primary responsibility for identifying and managing reputation risk and adherence to the control requirements sits with the business
and support functions where the risk arises.
The Barclays Bank UK Group is required to operate within established reputation risk appetite, and its component businesses prepare
reports for its respective Risk and Board Risk Committees highlighting their most significant current and potential reputation risks and
issues and how they are being managed. These reports are a key internal source of information for the quarterly reputation risk reports
which are prepared for the Barclays UK Risk Committee and the Barclays Bank UK PLC Board.
Legal risk management
The risk of loss or imposition of penalties, damages or fines from the failure of the Barclays Bank UK Group to meet its legal obligations,
including regulatory or contractual requirements.
Overview
The Barclays Bank UK Group has no tolerance for wilful breaches of laws, regulations or other legal obligations. However, the multitude of
laws and regulations that the Barclays Bank UK Group is subject to 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 UK Group seeks to mitigate through the operation of a
Barclays Group-wide legal risk management framework, including the implementation of Barclays Group-wide legal risk policies requiring
the engagement of legal professionals in situations that have the potential for legal risk. Notwithstanding these mitigating actions, Barclays
Bank UK Group operates with a level of residual legal risk, for which the Barclays Bank UK Group has limited tolerance.

The Barclays Bank UK Group’s businesses and functions have primary responsibility for identifying and escalating legal risk in their area as
well as responsibility for adherence to minimum 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 UK Group receives support from appropriate legal professionals, working in partnership to manage legal
risk. 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.

Risk review
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 UK Group Risk Committee is the most senior executive body responsible for reviewing and monitoring the effectiveness of
risk management across the Barclays Bank UK Group. Escalation paths from this committee exist to the Barclays Group Risk Committee
and Barclays Bank UK PLC Board Risk Committee.

Risk review
Risk performance
Credit risk
Summary of Contents
Page
Credit risk represents a significant risk to the ▪ Credit risk overview and summary of performance 60
Barclays Bank UK Group and mainly arises from
exposure to retail and wholesale loans. ▪ Maximum exposure and effects of netting, collateral and risk transfer 61
This section outlines the expected credit loss ▪ Expected credit losses 65
allowances, the movements in allowances – Loans and advances at amortised cost by product 65
during the period, material management
– Movement in gross exposure and impairment allowance for loans 68
adjustments to model output and
and advances at amortised cost including provisions for loan
measurement uncertainty and sensitivity
commitments and financial guarantees
analysis.
– Stage 2 decomposition 76
– Stage 3 decomposition 76
▪ Management adjustment to models for impairment 77
▪ Measurement uncertainty and sensitivity analysis 79
The Barclays Bank UK Group reviews and ▪ Analysis of the concentration of credit risk 87
monitors risk concentrations in a variety of – Geographic concentrations 87
ways. This section outlines performance
– Industry concentrations 89
against key concentration risks.
▪ Approach to management and representation of credit quality 91
– Asset credit quality 91
– Debt securities 91
– Balance sheet credit quality 92
– Credit exposures by internal PD grade 96
Credit risk monitors exposure performance ▪ Analysis of specific portfolios and asset types 100
across a range of significant portfolios. – Secured home loans 100
– Credit cards, unsecured loans and other retail lending 101
– Government supported loans 102

Risk review
Risk performance
Credit risk
All disclosures in this section (pages 60 to 102) are unaudited unless otherwise stated.
Overview
Credit risk represents a significant risk to the Barclays Bank UK Group and mainly arises from exposure to retail and wholesale loans and
advances.
The continued impact of the COVID-19 pandemic has meant that management was required to monitor economic uncertainty judgement
over the course of 2021. Customer and client default rates have remained relatively stable despite the impact of the pandemic and volatile
macroeconomic environment. In retail cards, credit profiles did not show material deterioration due to government support measures in
the UK and customer deleveraging. However, the degree of economic uncertainty remains relatively high: emerging supply chain disruption
and inflationary pressures may challenge economic stability. Given this backdrop, management has maintained economic uncertainty
adjustments to modelled outputs to address these sources of uncertainty and ensure that the potential impact of stress are provided for.
This uncertainty continues to be captured in two distinct ways: firstly, the identification of customers and clients who may be more
vulnerable to the withdrawal of support and emerging economic instability and secondly, model uncertainty which does not capture
certain macroeconomic and risk parameter uncertainties which are applied at a portfolio level. Refer to the Management adjustment to
models for impairment section on page 77 for further details.
Further detail can be found in the Financial statements section in Note 7 Credit impairment charges. Descriptions of terminology can be
found in the glossary, available at home.barclays/annualreport.
Summary of performance in the period
For 2021, credit impairment release of £371m (2020: £1,427m charge) was driven by improved economic outlook and lower unsecured
lending balances due to customer repayments and lower delinquencies. This comprised Barclaycard Consumer UK release of £404m,
Personal Banking release of £33m and Business Banking charges of £66m. The 30 and 90 day arrears rates in UK cards improved and
stands at 1.0% (2020: 1.7%) and 0.2% (2020: 0.8%) respectively.
Key metrics
Decrease of £1,227m impairment allowance
Impairment allowances on loans and advances at amortised cost including off-balance sheet elements of the allowance in Barclays Bank
UK Group decreased by £1,227m to £2,215m (2020: £3,442m) during the year. This was driven by a release in Credit cards, unsecured
loans and retail lending of £963m and Home loans of £15m, offset by an increase in Wholesale loans of £8m and a further release in off-
balance sheet provisions of £257m. Please refer to pages 65 to 75. Expected Credit Loss Section for further details.
Please see the credit risk management section on pages 52 to 53 for details of governance, policies and procedures.

Risk review
Risk performance
Credit risk
Analysis of the Balance Sheet
Barclays Bank UK Group’s maximum exposure and effects of netting, collateral and risk transfer
Basis of preparation
The following tables present a reconciliation between the Barclays Bank UK Group’s maximum exposure and its net exposure to credit risk,
reflecting the financial effects of risk mitigation reducing the Barclays Bank UK Group’s exposure.
For financial assets recognised on-balance sheet, the maximum exposure to credit risk represents the balance sheet carrying value after
allowance for impairment. For off-balance sheet guarantees, the maximum exposure is the maximum amount that the Barclays Bank UK
Group would have to pay if the guarantees were to be called upon. For loan commitments and other credit related commitments that are
irrevocable over the life of the respective facilities, the maximum exposure is the full amount of the committed facilities.
This and subsequent analyses of credit risk exclude other financial assets not subject to credit risk. For off-balance sheet exposures certain
contingent liabilities not subject to credit risk such as performance guarantees are excluded.
The Barclays Bank UK Group mitigates the credit risk to which it is exposed through netting and set-off, collateral and risk transfer. Further
detail on the Group’s policies to each of these forms of credit enhancement is presented on pages 52 to 53 of the credit risk management
section.
Overview
As at 31 December 2021, the Barclays Bank UK Group’s net exposure to credit risk, after taking into account credit risk mitigation,
increased 11% to £177.1bn (2020: £159.0bn). Overall, the extent to which the Barclays Bank UK Group holds mitigation against its total
exposure slightly decreased to 53% (2020: 54%).
Of the unmitigated on balance sheet exposure, a significant portion relates to cash and balances at central banks, cash collateral and
settlement balances and debt securities issued by governments all of which are considered to be lower risk. The increase in the Barclays
Bank UK Group’s net exposure to credit risk was mainly driven by increases in cash and balances at central banks. Further analysis on the
credit quality of assets is presented on pages 91 to 99.
Collateral obtained (audited)

Where collateral has been obtained in the event of default, the Barclays Bank UK 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 UK Group as at 31 December
2021, as a result of the enforcement of collateral, was £nil (2020: £nil).

Risk review
Risk performance
Credit risk
Maximum exposure and effects of netting, collateral and risk transfer (audited)
Maximum Netting and Cash Non-cash Net
Barclays Bank UK Group exposure set-off collateral collateral Risk transfer exposure
As at 31 December 2021 £m £m £m £m £m £m
On-balance sheet:
Cash and balances at central banks 69,488 — — — — 69,488
Cash collateral and settlement balances 5,067 — — — — 5,067
Loans and advances at amortised cost:
Home loans 158,220 — — (158,145) (57) 18
Credit cards, unsecured loans and other retail lending 13,425 — (83) (331) — 13,011
Wholesale loans 48,626 — (11) (12,357) (18,024) 18,234
Total loans and advances at amortised cost 220,271 — (94) (170,833) (18,081) 31,263
Of which credit-impaired (Stage 3):
Home loans 1,110 — — (1,110) — —
Credit cards, unsecured loans and other retail lending 256 — — (12) — 244
Wholesale loans 1,671 — — (641) (742) 288
Total credit-impaired loans and advances at amortised
cost 3,037 — — (1,763) (742) 532
Reverse repurchase agreements and other similar
secured lending 65 — — (65) — —
Trading portfolio assets:
Debt securities 169 — — — — 169
Total trading portfolio assets 169 — — — — 169
Financial assets at fair value through the income
statement
Loans and advances 2,767 — — (1,778) — 989
Other financial assets — — — — — —
Total financial assets at fair value through the income
statement 2,767 — — (1,778) — 989
Derivative financial instruments 890 (270) (536) (82) — 2
Financial assets at fair value through other
comprehensive income 14,945 — — — (233) 14,712
Other assets 316 — — — — 316
Total on-balance sheet 313,978 (270) (630) (172,758) (18,314) 122,006
Off-balance sheet:
Contingent liabilities 590 — — — — 590
Loan commitments 59,237 — (42) (4,674) (41) 54,480
Total off-balance sheet 59,827 — (42) (4,674) (41) 55,070
Total 373,805 (270) (672) (177,432) (18,355) 177,076
Off-balance sheet exposures are shown gross of provisions of £36m (2020: £293m). See Note 22 for further details. Wholesale loans and
advances at amortised cost include £10.4bn (2020: £11.0bn) of BBLS and CBILS supported by UK government guarantees of £10.2bn
(2020: £10.8bn), which are included within the Risk transfer column in the table. For further information on credit mitigation techniques,
refer to the credit risk management section.

Risk review
Risk performance
Credit risk
Barclays Bank UK Group exposure set-off collateral collateral Risk transfer exposure
On-balance sheet:
Home loans 148,454 — (1) (148,421) — 32
Wholesale loans 48,126 — (12) (13,364) (19,544) 15,206
Home loans 1,090 — (1) (1,089) — —
Credit cards, unsecured loans and other retail lending 313 — (4) (19) — 290
Wholesale loans 1,188 — (1) (712) (147) 328
cost 2,591 — (6) (1,820) (147) 618
statement
Loans and advances 3,430 — — (1,857) — 1,573
Other financial assets 2 — — — — 2
statement 3,432 — — (1,857) — 1,575
Derivative financial instruments 550 (189) (214) (116) — 31
Other assets 322 — — — — 322
Off-balance sheet:
Total 348,533 (189) (439) (169,002) (19,905) 158,998

Risk review
Risk performance
Credit risk
Barclays Bank UK PLC exposure set-off collateral collateral Risk transfer exposure
On-balance sheet:
Home loans 158,220 — — (158,145) (57) 18
Wholesale loans 49,017 — (11) (12,357) (18,024) 18,625
Home loans 1,110 — — (1,110) — —
Credit cards, unsecured loans and other retail lending 255 — — (12) — 243
Wholesale loans 1,671 — — (641) (742) 288
cost 3,036 — — (1,763) (742) 531
statement
Loans and advances 2,767 — — (1,778) — 989
Other financial assets — — — — — —
statement 2,767 — — (1,778) — 989
Derivative financial instruments 890 (270) (536) — — 84
Other assets 316 — — — — 316
Off-balance sheet:
Total 374,113 (270) (672) (177,350) (18,355) 177,466
Off-balance sheet exposures are shown gross of provisions of £36m (2020: £293m). See Note 22 for further details. Wholesale loans and
advances at amortised cost include £10.4bn (2020: £11.0bn) of BBLS and CBILS supported by UK government guarantees of £10.2bn
(2020: £10.8bn), which are included within the Risk transfer column in the table. For further information on credit risk mitigation
techniques, refer to the credit risk management section.

Risk review
Risk performance
Credit risk
Barclays Bank UK PLC exposure set-off collateral collateral Risk transfer exposure
On-balance sheet:
Home loans 148,454 — (1) (148,421) — 32
Wholesale loans 48,514 — (12) (13,364) (19,544) 15,594
Home loans 1,090 — (1) (1,089) — —
Credit cards, unsecured loans and other retail lending 309 — (4) (19) — 286
Wholesale loans 1,188 — (1) (712) (147) 328
cost 2,587 — (6) (1,820) (147) 614
statement
Loans and advances 3,430 — — (1,857) — 1,573
Other financial assets 2 — — — — 2
statement 3,432 — — (1,857) — 1,575
Derivative financial instruments 550 (189) (214) — — 147
Other assets 331 — — — — 331
Off-balance sheet:
Total 349,011 (189) (439) (168,886) (19,905) 159,592
Expected Credit Losses
Loans and advances at amortised cost by product

The tables below present 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 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.

Risk review
Risk performance
Credit risk
Barclays Bank UK Group (audited) Stage 2
<=30 days >30 days
As at 31 December 2021 Stage 1 Not past due past due past due Total Stage 3 Total
a
Gross exposure £m £m £m £m £m £m £m
Home loans 138,298 16,585 1,638 624 18,847 1,164 158,309
Credit cards, unsecured loans and other retail
lending 11,450 2,652 97 61 2,810 829 15,089
Wholesale loans 44,213 2,972 5 5 2,982 1,857 49,052
Total 193,961 22,209 1,740 690 24,639 3,850 222,450
Impairment allowance
Home loans 11 13 5 6 24 54 89
lending 201 804 42 44 890 573 1664
Wholesale loans 183 55 1 1 57 186 426
Total 395 872 48 51 971 813 2179
Net exposure
Home loans 138,287 16,572 1,633 618 18,823 1,110 158,220
lending 11,249 1,848 55 17 1,920 256 13,425
Wholesale loans 44,030 2,917 4 4 2,925 1,671 48,626
Total 193,566 21,337 1,692 639 23,668 3,037 220,271
Coverage ratio % % % % % % %
Home loans — 0.1 0.3 1.0 0.1 4.6 0.1
lending 1.8 30.3 43.3 72.1 31.7 69.1 11.0
Wholesale loans 0.4 1.9 20.0 20.0 1.9 10.0 0.9
Total 0.2 3.9 2.8 7.4 3.9 21.1 1.0
As at 31 December 2020
Home loans 129,012 15,890 1,732 789 18,411 1,135 148,558
lending 11,823 4,350 143 110 4,603 1,270 17,696
Wholesale loans 42,073 4,978 10 76 5,064 1,407 48,544
Total 182,908 25,218 1,885 975 28,078 3,812 214,798
Home loans 27 17 7 8 32 45 104
lending 259 1,261 68 82 1,411 957 2,627
Wholesale loans 36 160 1 2 163 219 418
Total 322 1,438 76 92 1,606 1,221 3,149
Net exposure
Home loans 128,985 15,873 1,725 781 18,379 1,090 148,454
lending 11,564 3,089 75 28 3,192 313 15,069
Wholesale loans 42,037 4,818 9 74 4,901 1,188 48,126
Total 182,586 23,780 1,809 883 26,472 2,591 211,649
Home loans — 0.1 0.4 1.0 0.2 4.0 0.1
lending 2.2 29.0 47.6 74.5 30.7 75.4 14.8
Wholesale loans 0.1 3.2 10.0 2.6 3.2 15.6 0.9
Total 0.2 5.7 4.0 9.4 5.7 32.0 1.5
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 £20.4bn (December 2020: £30.7bn) and an
impairment allowance of £3m (December 2020: £15m). This comprises £3m (December 2020: £4m) on £20.4bn Stage 1 assets (December 2020: £30.1bn).
£0m (December 2020: £3m) on £89m Stage 2 assets (December 2020: £588m) and £0m (December 2020: £8m) on £0m Stage 3 other assets (December
2020: £10m). Loan commitments and financial guarantee contracts have total ECL of £36m (December 2020: £293m).
The increase in coverage on Credit cards, unsecured loans and other retail lending Stage 2 not past due is driven by a reduction in balances
and the economic uncertainty adjustments held for customers and clients who may be more vulnerable to emerging economic uncertainty.

Risk review
Risk performance
Credit risk
Barclays Bank UK PLC (audited) Stage 2
Not past <=30 days >30 days
As at 31 December 2021 Stage 1 due past due past due Total Stage 3 Total
a
Home loans 138,298 16,585 1,638 624 18,847 1,164 158,309
lending 11,450 2,652 97 61 2,810 827 15,087
Wholesale loans 44,604 2,972 5 5 2,982 1,857 49,443
Total 194,352 22,209 1,740 690 24,639 3,848 222,839
Home loans 11 13 5 6 24 54 89
lending 201 804 43 44 891 572 1,664
Wholesale loans 183 55 1 1 57 186 426
Total 395 872 49 51 972 812 2,179
Net exposure
Home loans 138,287 16,572 1,633 618 18,823 1,110 158,220
lending 11,249 1,848 54 17 1,919 255 13,423
Wholesale loans 44,421 2,917 4 4 2,925 1,671 49,017
Total 193,957 21,337 1,691 639 23,667 3,036 220,660
Home loans — 0.1 0.3 1.0 0.1 4.6 0.1
lending 1.8 30.3 44.3 72.1 31.7 69.2 11.0
Wholesale loans 0.4 1.9 20.0 20.0 1.9 10.0 0.9
Total 0.2 3.9 2.8 7.4 3.9 21.1 1.0
Home loans 129,012 15,890 1,732 789 18,411 1,135 148,558
lending 11,823 4,350 143 110 4,603 1,266 17,692
Wholesale loans 42,461 4,978 10 76 5,064 1,407 48,932
Total 183,296 25,218 1,885 975 28,078 3,808 215,182
Home loans 27 17 7 8 32 45 104
lending 259 1,261 68 82 1,411 957 2,627
Wholesale loans 36 160 1 2 163 219 418
Total 322 1,438 76 92 1,606 1,221 3,149
Net exposure
Home loans 128,985 15,873 1,725 781 18,379 1,090 148,454
lending 11,564 3,089 75 28 3,192 309 15,065
Wholesale loans 42,425 4,818 9 74 4,901 1,188 48,514
Total 182,974 23,780 1,809 883 26,472 2,587 212,033
Home loans — 0.1 0.4 1.0 0.2 4.0 0.1
lending 2.2 29.0 47.6 74.5 30.7 75.6 14.8
Wholesale loans 0.1 3.2 10.0 2.6 3.2 15.6 0.9
Total 0.2 5.7 4.0 9.4 5.7 32.1 1.5
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
impairment allowance of £2m (December 2020: £12m). This comprises £2m (December 2020: £3m) on £20.2bn Stage 1 assets (December 2020: £30.1bn).
2020: £10m). Loan commitments and financial guarantee contracts have total ECL of £36m (December 2020: £293m).
The increase in coverage on Credit cards, unsecured loans and other retail lending Stage 2 not past due is driven by a reduction in balances
and the economic uncertainty adjustments held for customers and clients who may be more vulnerable to emerging economic uncertainty.

Risk review
Risk performance
Credit risk
Movement in gross exposure and impairment allowance including provisions for loan commitments and
financial guarantees (audited)
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 note 7 on page 152. 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 UK Group Gross ECL Gross ECL Gross ECL Gross ECL
£m £m £m £m £m £m £m £m
Home loans
As at 1 January 2021 129,012 27 18,411 32 1,135 45 148,558 104
Transfers from Stage 1 to Stage 2 (7,418) (2) 7,418 2 — — — —
Transfers from Stage 2 to Stage 1 5,004 11 (5,004) (11) — — — —
Transfers to Stage 3 (202) — (417) (4) 619 4 — —
Transfers from Stage 3 13 — 154 1 (167) (1) — —
a
Business activity in the year 30,999 5 1,243 5 4 — 32,246 10
Refinements to models used for calculation — — — — — — — —
Net drawdowns, repayments, net re-
measurement and movements due to exposure (7,389) (29) (1,065) 2 (146) 23 (8,600) (4)
and risk parameter changes
Final repayments (11,149) (1) (1,867) (3) (278) (14) (13,294) (18)
b
Disposals (572) — (26) — — — (598) —
c
Write-offs — — — — (3) (3) (3) (3)
d
As at 31 December 2021 138,298 11 18,847 24 1,164 54 158,309 89
Credit cards, unsecured loans and other retail lending
As at 1 January 2021 11,823 259 4,603 1,411 1,270 957 17,696 2,627
Transfers from Stage 1 to Stage 2 (963) (36) 963 36 — — — —
Transfers to Stage 3 (208) (9) (418) (203) 626 212 — —
Transfers from Stage 3 34 21 19 10 (53) (31) — —
a
Business activity in the year 1,884 24 142 33 24 13 2,050 70
e
Refinements to models used for calculation — (2) — (6) — 14 — 6
measurement and movements due to exposure (2,345) (642) (304) 240 (91) 244 (2,740) (158)
f
Final repayments (889) (25) (81) (20) (104) (60) (1,074) (105)
b
Disposals — — — — (250) (183) (250) (183)
c
Write-offs — — — — (593) (593) (593) (593)
d
As at 31 December 2021 11,450 201 2,810 890 829 573 15,089 1,664
Wholesale loans
As at 1 January 2021 42,073 36 5,064 163 1,407 219 48,544 418
a
e
Refinements to models used for calculation — 8 — 8 — — — 16
measurement and movements due to exposure (3,617) 40 (312) (53) (203) 18 (4,132) 5
Final repayments (3,251) (5) (359) (5) (52) (5) (3,662) (15)
c
Write-offs — — — — (48) (48) (48) (48)
d
As at 31 December 2021 44,213 183 2,982 57 1,857 186 49,052 426
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. The £598m disposals reported within Home loans relate to transfer of UK Mortgage facilities to a non-consolidated special purpose vehicle for the purpose of
securitisation. The £250m disposals reported within Credit cards, unsecured loans and other retail lending portfolio relate to debt sales undertaken during
the year.
c. In 2021, gross write-offs amounted to £644m (2020: £607m) and post write-off recoveries amounted to £35m (2020: £31m). Net write-offs represent gross
write-offs less post write-off recoveries and amounted to £609m (2020: £576m).
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 £20.4bn (December 2020: £30.7bn) in
Stage 1 and an impairment allowance of £3m (December 2020: £15m). This comprises £3m (December 2020: £4m) on £20.4bn Stage 1 assets (December
2020: £30.1bn), £0m (December 2020: £3m) on £89m Stage 2 assets (December 2020: £588m) and £0m (December 2020: £8m) on £0m Stage 3 other
assets (December 2020: £10m).
e. Refinements to models used for calculation include a £6m movement in Credit cards, unsecured loans and retail lending and £16m movement 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.
f. Transfers and risk parameter changes include a £0.3bn (2020: £0.6bn) net release in ECL arising from a reclassification of £1.9bn (2020: £2.0bn) gross loans
and advances from Stage 2 to Stage 1 in Credit cards, unsecured loans and other retail lending. The reclassification followed a review of back-testing of
results which indicated that accuracy of origination probability of default characteristics require management adjustments to correct and was first
established in Q220.

Risk review
Risk performance
Credit risk
Reconciliation of ECL movement to credit impairment (release)/charge for the year ended 31 December 2021 £m
Home loans (12)
Credit cards, unsecured loans and other retail lending (187)
Wholesale loans 56
ECL movement excluding assets derecognised due to disposals and write-offs (143)
a
Recoveries and reimbursements (19)
b
Exchange and other adjustments 51
Credit impairment release on loan commitments and financial guarantees (257)
c
Credit impairment release on other financial assets (3)
Credit impairment release for the year (371)
Notes
a Recoveries and reimbursements include post write off recoveries of £35m and a net reduction in amounts recoverable from financial guarantee contracts
held with third parties of £16m.
b Includes interest and fees in suspense.
c Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value
Stage 1 and an impairment allowance of £3m (December 2020: £15m). This comprises £3m (December 2020: £4m) on £20.4bn Stage 1 assets (December
2020: £30.1bn), £0m (December 2020: £3m) on £89m Stage 2 assets (December 2020: £588m) and £0m (December 2020: £8m) on £0m Stage 3 other
assets (December 2020: £10m).
Loan commitments and financial guarantees (audited)

£m £m £m £m £m £m £m £m
Home loans
As at 1 January 2021 11,737 — 513 — 1 — 12,251 —
Net transfers between stages (131) — 124 — 7 — — —
Business activity in the year 7,015 — — — — — 7,015 —
Net drawdowns and repayments, net re-
measurement and movement due to (7,552) — (64) — (3) — (7,619) —
exposure and risk parameter changes
Limit management and final repayments (289) — (42) — (2) — (333) —
As at 31 December 2021 10,780 — 531 — 3 — 11,314 —

As at 1 January 2021 44,139 16 5,827 275 196 — 50,162 291
Net transfers between stages 2,759 209 (2,930) (211) 171 2 — —
Business activity in the year 468 — 19 — — — 487 —
measurement and movement due to (4,294) (214) (385) (28) (86) (1) (4,765) (243)
Limit management and final repayments (889) (4) (69) (7) (95) (1) (1,053) (12)
As at 31 December 2021 42,183 7 2,462 29 186 — 44,831 36
Wholesale loans
As at 1 January 2021 3,250 — 830 2 67 — 4,147 2
Net transfers between stages 426 1 (422) (1) (4) — — —
Business activity in the year 8 — — — — — 8 —
measurement and movement due to 1 (1) (173) — (5) — (177) (1)
Limit management and final repayments (208) — (88) (1) — — (296) (1)
As at 31 December 2021 3,477 — 147 — 58 — 3,682 —

Risk review
Risk performance
Credit risk
Barclays Bank UK PLC Gross ECL Gross ECL Gross ECL Gross ECL
£m £m £m £m £m £m £m £m
Home loans
As at 1 January 2021 129,012 27 18,411 32 1,135 45 148,558 104
Transfers from Stage 3 13 — 154 1 (167) (1) — —
a
Business activity in the year 30,999 5 1,243 5 4 — 32,246 10
measurement and movements due to exposure (7,389) (29) (1,065) 2 (146) 23 (8,600) (4)
b
Disposals (572) — (26) — — — (598) —
c
Write-offs — — — — (3) (3) (3) (3)
d
As at 31 December 2021 138,298 11 18,847 24 1,164 54 158,309 89
As at 1 January 2021 11,823 259 4,603 1,411 1,266 957 17,692 2,627
Transfers from Stage 1 to Stage 2 (963) (36) 963 36 — — — —
a
e
Refinements to models used for calculation — (2) — (6) — 14 — 6
measurement and movements due to exposure (2,345) (642) (304) 241 (89) 243 (2,738) (158)
f
b
Disposals — — — — (250) (183) (250) (183)
c
Write-offs — — — — (593) (593) (593) (593)
d
As at 31 December 2021 11,450 201 2,810 891 827 572 15,087 1,664
Wholesale loans
As at 1 January 2021 42,461 36 5,064 163 1,407 219 48,932 418
a
e
measurement and movements due to exposure (3,614) 40 (312) (53) (203) 18 (4,129) 5
Final repayments (3,251) (5) (359) (5) (52) (5) (3,662) (15)
b
Disposals — — — — — — — —
c
Write-offs — — — — (48) (48) (48) (48)
d
As at 31 December 2021 44,604 183 2,982 57 1,857 186 49,443 426
Notes
b. The £598m disposal reported within Home loans relates to transfer of UK Mortgage facilities to a non-consolidated special purpose vehicle for the purpose of
securitisation. The £250m disposal reported within Credit cards, unsecured loans and other retail lending portfolio relates to debt sales undertaken during
the year.
c. In 2021, gross write-offs amounted to £644m (2020: £607m) and post write-off recoveries amounted to £35m (2020: £31m). Net write-offs represent gross
d. Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value
impairment allowance of £3m (December 2020: £12m). This comprises £3m (December 2020: £3m) on £20.4bn Stage 1 assets (December 2020: £30.1bn),
2020: £10m).
e. Refinements to models used for calculation include a £6m movement in Credit cards, unsecured loans and retail lending and £16m movement 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.
f. Transfers and risk parameter changes include a £0.3bn (2020: £0.6bn) net release in ECL arising from a reclassification of £1.9bn (2020: £2.0bn) gross loans
and advances from Stage 2 to Stage 1 in Credit cards, unsecured loans and other retail lending. The reclassification followed a review of back-testing of
results which indicated that accuracy of origination probability of default characteristics require management adjustments to correct and was first
established in Q220.

Risk review
Risk performance
Credit risk
Home loans (12)
Credit cards, unsecured loans and other retail lending (187)
Wholesale loans 56
ECL movement excluding assets derecognised due to disposals and write-offs (143)
a
b
Exchange and other adjustments 52
Credit impairment release on loan commitments and financial guarantees (257)
c
Credit impairment release on other financial assets (2)
Credit impairment release for the year (369)
Notes
a Recoveries and reimbursements include post write off recoveries of £35m and a net reduction in amounts recoverable from financial guarantee contracts
held with third parties of £16m.
b Includes interest and fees in suspense.
c Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value
impairment allowance of £3m (December 2020: £12m). This comprises £3m (December 2020: £3m) on £20.4bn Stage 1 assets (December 2020: £30.1bn),
2020: £10m).

£m £m £m £m £m £m £m £m
Home loans
As at 1 January 2021 11,737 — 513 — 1 — 12,251 —
Limit management and final repayments (289) — (42) — (2) — (333) —
As at 31 December 2021 10,780 — 531 — 3 — 11,314 —

As at 1 January 2021 44,139 16 5,827 275 196 — 50,162 291
Net transfers between stages 2,759 209 (2,930) (211) 171 2 — —
measurement and movement due to (4,294) (214) (385) (28) (86) (1) (4,765) (243)
Limit management and final repayments (889) (4) (69) (7) (95) (1) (1,053) (12)
As at 31 December 2021 42,183 7 2,462 29 186 — 44,831 36
Wholesale loans
As at 1 January 2021 3,335 — 830 2 67 — 4,232 2
Net transfers between stages 426 1 (422) (1) (4) — — —
Business activity in the year 8 — — — — — 8 —
measurement and movement due to (84) (1) (173) — (5) — (262) (1)
Limit management and final repayments (208) — (88) (1) — — (296) (1)
As at 31 December 2021 3,477 — 147 — 58 — 3,682 —

Risk review
Risk performance
Credit risk
£m £m £m £m £m £m £m £m
Home loans
As at 1 January 2020 126,109 6 16,369 24 1,099 55 143,577 85
a
Business activity in the year 21,355 6 714 2 3 — 22,072 8
measurement and movements due to exposure (6,329) 10 (778) 15 (91) 7 (7,198) 32
b
Write-offs — — — — (4) (4) (4) (4)
c
As at 31 December 2020 129,012 27 18,411 32 1,135 45 148,558 104
As at 1 January 2020 16,471 180 6,309 1,223 1,280 864 24,060 2,267
a
d
measurement and movements due to exposure (4,493) (242) (1,449) 374 (45) 602 (5,987) 734
e
f
Disposals — — — — (113) (86) (113) (86)
b
Write-offs — — — — (553) (553) (553) (553)
c
As at 31 December 2020 11,823 259 4,603 1,411 1,270 957 17,696 2,627
Wholesale loans
As at 1 January 2020 28,430 27 2,917 68 1,196 164 32,543 259
a
measurement and movements due to exposure 10,355 (22) 787 95 (67) 112 11,075 185
Final repayments (4,740) — (104) (1) (14) — (4,858) (1)
b
Write-offs — — — — (50) (50) (50) (50)
c
As at 31 December 2020 42,073 36 5,064 163 1,407 219 48,544 418
Notes
b. In 2020, gross write-offs amounted to £607m (2019: £588m) and post write-off recoveries of £31m (2019: £49m). Net write-offs after applying recoveries
amounted to £576m (2019: £539m).
c. Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value
Stage 1 and an impairment allowance of £15m (December 2019: £3m). This comprises £4m ECL (December 2019: £3m) on £30.1bn Stage 1 assets
(December 2019: £24.5bn), £3m (December 2019: £nil) on £588m Stage 2 assets (December 2019: £nil) and £8m (December 2019: £nil) on £10m Stage 3
other assets (December 2019: £nil).
d. Refinements to models used for calculation include a £309m adjustment which largely represents model remediation for over recovery of debt in UK
unsecured lending. 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.
e. Transfers and risk parameter changes has seen an ECL increase which is materially driven by stage migration in response to the macroeconomic scenario
updates, partially offset by a net release in ECL of £0.6bn due to a reclassification of £2bn gross loans and advances from Stage 2 to Stage 1 in credit cards
and unsecured loans. The reclassification followed a review of back-testing of results which indicated that origination probability of default characteristics
were unnecessarily moving Stage 1 accounts into Stage 2.
f. The £113m disposal reported within Credit cards, unsecured loans and other retail lending portfolio relates to debt sales undertaken during the year.

Risk review
Risk performance
Credit risk
Home loans 23
Credit cards, unsecured loans and other retail lending 999
Wholesale loans 209
ECL movement excluding assets derecognised due to disposals and write-offs 1,231
a
Exchange and other adjustments (6)
Credit impairment charge on loan commitments and financial guarantees 224
b
Credit impairment charge on other financial assets 9
Credit impairment charge for the year 1,427
Notes
a Includes interest and fees in suspense.
b Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value

£m £m £m £m £m £m £m £m
Home loans
As at 1 January 2020 9,508 — 499 — 3 — 10,010 —
Limit management and final repayments (223) — (33) — — — (256) —
As at 31 December 2020 11,737 — 513 — 1 — 12,251 —

As at 1 January 2020 47,505 11 4,183 59 181 — 51,869 70
Net transfers between stages (1,373) 36 1,143 (37) 230 1 — —
Business activity in the year 580 — 30 3 — — 610 3
measurement and movement due to (2,140) (29) 491 251 (117) — (1,766) 222
Limit management and final repayments (433) (2) (20) (1) (98) (1) (551) (4)
As at 31 December 2020 44,139 16 5,827 275 196 — 50,162 291
Wholesale loans
As at 1 January 2020 2,738 — 395 — 47 — 3,180 —
measurement and movement due to 929 — 172 2 11 — 1,112 2
As at 31 December 2020 3,250 — 830 2 67 — 4,147 2

Risk review
Risk performance
Credit risk
£m £m £m £m £m £m £m £m
Home loans
As at 1 January 2020 126,109 6 16,369 24 1,099 55 143,577 85
a
Business activity in the year 21,355 6 714 2 3 — 22,072 8
measurement and movements due to exposure (6,329) 10 (778) 15 (91) 7 (7,198) 32
Disposals — — — — — — — —
b
Write-offs — — — — (4) (4) (4) (4)
c
As at 31 December 2020 129,012 27 18,411 32 1,135 45 148,558 104
As at 1 January 2020 16,470 180 6,309 1,223 1,275 864 24,054 2,267
a
d
measurement and movements due to exposure (4,492) (242) (1,449) 374 (44) 602 (5,985) 734
e
f
Disposals — — — — (113) (86) (113) (86)
b
Write-offs — — — — (553) (553) (553) (553)
c
As at 31 December 2020 11,823 259 4,603 1,411 1,266 957 17,692 2,627
Wholesale loans
As at 1 January 2020 28,827 27 2,917 68 1,196 164 32,940 259
a
measurement and movements due to exposure 10,346 (23) 787 95 (67) 113 11,066 185
Final repayments (4,740) — (104) (1) (14) — (4,858) (1)
Disposals — — — — — — — —
b
Write-offs — — — — (50) (50) (50) (50)
c
As at 31 December 2020 42,461 36 5,064 163 1,407 219 48,932 418
Notes
b. In 2020, gross write-offs amounted to £607m (2019: £588m) and post write-off recoveries amounted to £31m (2019: £49m). Net write-offs represent gross
c. Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value
d. Refinements to models used for calculation include a £309m adjustment which largely represents model remediation for over recovery of debt in UK
unsecured lending. 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.
e. Transfers and risk parameter changes has seen an ECL increase which is materially driven by stage migration in response to the macroeconomic scenario
updates, partially offset by a net release in ECL of £0.6bn due to a reclassification of £2bn gross loans and advances from Stage 2 to Stage 1 in credit cards
and unsecured loans. The reclassification followed a review of back-testing of results which indicated that origination probability of default characteristics
were unnecessarily moving Stage 1 accounts into Stage 2.
f. The £113m disposal reported within Credit cards, unsecured loans and other retail lending portfolio relates to debt sales undertaken during the year.

Risk review
Risk performance
Credit risk
Home loans 23
Credit cards, unsecured loans and other retail lending 999
Wholesale loans 209
ECL movement excluding assets derecognised due to disposals and write-offs 1,231
a
Exchange and other adjustments (13)
Credit impairment charge on loan commitments and financial guarantees 224
b
Credit impairment charge on other financial assets 10
Credit impairment charge for the year 1,421
Notes
a Includes interest and fees in suspense.
b Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value

£m £m £m £m £m £m £m £m
Home loans
As at 1 January 2020 9,508 — 499 — 3 — 10,010 —
As at 31 December 2020 11,737 — 513 — 1 — 12,251 —

As at 1 January 2020 47,505 11 4,183 59 181 — 51,869 70
Net transfers between stages (1,373) 36 1,143 (37) 230 1 — —
Business activity in the year 580 — 30 3 — — 610 3
measurement and movement due to (2,140) (29) 491 251 (117) — (1,766) 222
Limit management and final repayments (433) (2) (20) (1) (98) (1) (551) (4)
As at 31 December 2020 44,139 16 5,827 275 196 — 50,162 291
Wholesale loans
As at 1 January 2020 2,755 — 395 — 47 — 3,197 —
measurement and movement due to 912 — 172 2 11 — 1,095 2
As at 31 December 2020 3,335 — 830 2 67 — 4,232 2

Risk review
Risk performance
Credit risk
Stage 2 decomposition
a
Loans and advances at amortised cost
2021 2020
Impairment Impairment
Gross exposure allowance Gross exposure allowance
As at 31 December 2021 £m £m £m £m
Quantitative test 15,772 917 18,953 1,522
Qualitative test 8,276 48 8,512 79
30 days past due backstop 591 6 613 5
Total Stage 2 24,639 971 28,078 1,606
Note
a Where balances satisfy more than one of the above three criteria for determining a significant increase in credit risk, the corresponding gross exposure and
ECL has been assigned in order of categories presented.
Stage 2 exposures are predominantly identified using quantitative tests where the lifetime PD has deteriorated more than a pre-determined
amount since origination during the year driven by changes in macro-economic variables. 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 £6.8bn
(2020: £7.1bn) relating to UK Home Finance, £1.0bn (2020: £1.0bn) relating to Business Banking and £0.2bn (2020: £0.1bn) relating to
Barclaycard UK.
A small number of other accounts (1% of impairment allowances and 2% of gross exposure) are included in Stage 2. These accounts are
not otherwise identified by the quantitative or qualitative tests but are more than 30 days past due. The percentage triggered by these
backstop criteria is a measure of the effectiveness of the Stage 2 criteria in identifying deterioration prior to delinquency.
For further detail on the three criteria for determining a significant increase in credit risk required for Stage 2 classification, refer to Note 7
on page 152.
Stage 3 decomposition

2021 2020
Impairment Impairment
Gross exposure allowance Gross exposure allowance
a
Exposures not charged-off including within cure period 2,980 332 2,461 420
b
Exposures individually assessed or in recovery book 870 481 1,351 801
Total Stage 3 3,850 813 3,812 1,221
Notes
a Includes £2.2bn (2020: £2.0bn) of gross exposure in a cure period that must remain in Stage 3 for a minimum of 12 months before moving to Stage 2.
b Exposures individually assessed or in recovery book cannot cure out of Stage 3.

Risk review
Risk performance
Credit risk
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.
Total management adjustments to impairment allowance are presented by product below:
a
Overview of management adjustments to models for impairment (audited)
2021 2020
Total Total
management Proportion of management
adjustments to total adjustments to Proportion of
impairment impairment impairment total impairment
allowances allowances allowances allowances
As at 31 December 2021 £m % £m %
Home loans 69 77.5 77 74.0
Credit cards, unsecured loans and other retail lending 372 21.9 247 8.5
Wholesale loans (121) (28.4) 102 24.3
Total 320 14.4 426 12.4
a
Management adjustments to models are presented by product below: (audited)
Impairment
allowance pre Economic
management uncertainty Other Total impairment
b c
adjustments adjustments adjustments Total adjustments allowance
(a) (b) (a+b)
As at 31 December 2021 £m £m £m £m £m
Home loans 20 38 31 69 89
1,328 437 (65) 372 1,700
lending
d
Wholesale loans 547 159 (280) (121) 426
Total 1,895 634 (314) 320 2,215
As at 31 December 2020 £m £m £m £m £m
Home loans 27 — 77 77 104
2,671 634 (387) 247
lending 2,918
d
Wholesale loans 318 42 60 102 420
Total 3,016 676 (250) 426 3,442
Notes
a. Positive values reflect an increase in impairment allowance and negative values reflect a reduction in the impairment allowance.
b. Includes £1.7bn (2020: £2.8bn) of modelled ECL, £0.1bn (2020: £0.1bn) of individually assessed impairments and £0.1bn (2020: £0.1bn) ECL from non-
modelled exposures.
c. Total impairment allowance consists of ECL stock on drawn and undrawn exposures.
d. Other adjustments include £(0.4)bn related to Bounce back loan government guarantee in 2021. In the prior year, the adjustment was £(0.1)bn and was
presented under economic uncertainty.
Economic uncertainty adjustments
Throughout the COVID-19 pandemic in 2020 and 2021, macroeconomic forecasts anticipated lasting impacts to unemployment levels and
customer and client stress. More recent macroeconomic forecasts indicated that the outlook has improved, with measures of government
and bank support having tapered down and no material deterioration in customer delinquencies observed to date. However, the degree of
economic uncertainty remains relatively high: emerging supply chain disruption and inflationary pressures may challenge economic
stability; and economic consensus may not capture the range of economic uncertainty associated with fast moving new COVID-19 variants
such as Omicron.
Given this backdrop, management has recognised economic uncertainty adjustments to modelled outputs to address these sources of
uncertainties and ensure that the potential impacts of stress are provided for. This uncertainty continues to be monitored in two distinct
ways. Firstly, customer uncertainty: the identification of customers and clients who may be more vulnerable to the emerging 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.
The economic uncertainty adjustments of £0.6bn (2020 £0.7bn) includes customer and client uncertainty provisions of £0.6bn (2020
£0.6bn) and model uncertainty provisions of £nil (2020 £0.1bn).

Risk review
Risk performance
Credit risk
Customer uncertainty provisions comprises:
a. An adjustment of £0.2bn (2020: £0.6bn) to adjust the probability of default (PDs) to pre-COVID-19 levels to offset the temporary
improvement to PDs in light of reduced customer spend behaviour and support measures. The decrease of £0.4bn is primarily driven by
some normalisation of customer spending behaviour during the year resulting in a partial release of the PMA.
b. A vulnerable customer adjustment of £0.4bn (2020: £nil) has been applied to customers and clients considered vulnerable to potential
short term deterioration in economy due to government imposed restrictions and emerging economic instability against which lifetime
coverage is applied. This includes an adjustment of £0.3bn (2020: £nil) to reflect potential short term GDP pressure due to government
restrictions imposed in response to the Omicron variant and £0.1bn (2020: £nil) adjustment to reflect possible cross default risk on
Barclays lending in respect of clients who have taken bounce back loans. This is split between credit cards, unsecured loans and other retail
lending of £0.2bn (2020: £nil) and wholesale loans of £0.2bn (2020: £nil).
Model uncertainty provisions reduced by £0.1bn reflecting an update in adjustment in response to the modelled provisions following the
update in the Q421 scenarios.
Other adjustments
Other adjustments are operational in nature and are expected to remain in place until they can be corrected in the underlying models.
These adjustments result from data limitations and model performance related issues identified through established governance processes.
Material adjustments consists of the following:
Home loans: The low average LTV nature of the UK Home Loans portfolio means that modelled ECL estimates are low and do not reflect
the tail risk with severe economic stress. An adjustment is made to maintain an appropriate level of ECL informed by model monitoring.
Credit cards, unsecured loans and other retail lending: Includes an adjustment for model inaccuracies informed by model monitoring and
a reclassification of loans and advances from Stage 2 to Stage 1 in credit cards. The reclassification followed a review of back-testing
results which indicated that accuracy of origination probability of default characteristics require management adjustments to correct and
was first established in Q220. This adjustment has reduced driven by the improved macroeconomic scenarios in Q421 and the reduction in
exposure on this portfolio.
Wholesale loans: Materially comprises an adjustment applied on bounce back loans of £(0.4)bn to reverse out the modelled charge which
does not consider the government guarantee when calculating the ECL.

Risk review
Risk performance
Credit risk
Measurement uncertainty and sensitivity analysis
Management has applied economic uncertainty and other adjustments to modelled ECL outputs. Economic uncertainty adjustments reflect
the potential vulnerability of specific customers and clients who may be more vulnerable to the full withdrawal of support and emerging
economic instability and the degree to which economic consensus may not have captured the range of economic uncertainty associated
with new variants of COVID-19. As a result, ECL is higher than would be the case if it were based on forecast economic scenarios alone.
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 UK 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 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 four key economic variables, (GDP, unemployment, House Price Index (HPI) and base rate),
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 eight years.
Scenarios used to calculate the Barclays Bank UK Group’s ECL charge were reviewed and updated regularly throughout 2021, following the
continuation of the COVID-19 pandemic throughout the year, including the emergence of the Omicron variant and the global vaccination
rollout. The current Baseline scenario reflects the latest consensus economic forecasts; the steady recovery in GDP continues, returning to
pre-COVID-19 pandemic levels by Q222. UK unemployment peaks at 5.0% in Q122. In the Downside 2 scenario, inflation continues to
accelerate and the UK bank rate is increased to 4.0% by the end of 2022, leading to a further downturn in GDP until Q323. Unemployment
peaks in Q323 at 9.2%. In the Upside 2 scenario, inflation expectations and global energy prices stabilise and GDP growth rises as
COVID-19 risks continue to decline helping to release more of the pent-up demand and accumulated household savings into the economy.
Unemployment rates decline gradually.
The methodology for estimating probability weights used in calculating ECL involves simulating a range of future paths for GDP using
historical data. The five scenarios are mapped against the distribution of these future paths, with the median centred around the Baseline
such that scenarios further from the Baseline attract a lower weighting. A single set of five scenarios is used across all portfolios and all five
weights are normalised to equate to 100%. The same scenarios and weights that are used in the estimation of expected credit losses are
also used for the Barclays Bank UK 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, and
credit cards and unsecured consumer loans are highly sensitive to unemployment.
The changes to the scenario weights in 2021 primarily reflect changes made to the severity of the scenarios. The Downside 2 scenario has
been aligned with the internal stress test, which is informed by a weaker GDP outlook. The effect of this is to move the Downside 2
scenario further away from the Baseline, resulting in a lower weighting. For further details see page 81.
Although the macroeconomic outlook has improved, the level of uncertainty remains relatively high. A key judgement is the extent to
which economic uncertainty experienced throughout the COVID-19 pandemic now reflects additional challenges, namely inflationary
pressures and global supply chain disruptions. Inflationary headwinds have yet to materially impact customer affordability and corporate
profitability data. A balanced approach has therefore been adopted in the sizing of expert judgements as we move away from a period
characterised by significant customer support.
The economic uncertainty adjustments of £0.6bn (2020: £0.7bn) have been applied as overlays to the modelled ECL output. These
adjustments consist of a customer and client uncertainty provision of £0.6bn (2020: £0.6bn) and a model uncertainty provision of £nil
(2020: £0.1bn).
The tables below show the key UK macroeconomic variables used in the five scenarios (5 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. 5-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
Baseline average macroeconomic variables used in the calculation of ECL
2021 2022 2023 2024 2025

As at 31 December 2021 % % % % %
a
UK GDP 6.2 4.9 2.3 1.9 1.7
b
UK unemployment 4.8 4.7 4.5 4.3 4.2
c
UK HPI 4.7 1.0 1.9 1.9 2.3
UK bank rate 0.1 0.8 1.0 1.0 0.8
2020 2021 2022 2023 2024

As at 31 December 2020 % % % % %
a
UK GDP (10.1) 6.3 3.3 2.6 2.0
b
c
UK HPI 6.1 2.4 2.3 5.0 2.4
UK bank rate 0.2 — (0.1) — 0.1
Downside 2 average macroeconomic variables used in the calculation of ECL
2021 2022 2023 2024 2025

As at 31 December 2021 % % % % %
a
UK GDP 6.2 0.2 (4.0) 2.8 4.3
b
c
UK HPI 4.7 (14.3) (21.8) 11.9 15.2
UK bank rate 0.1 2.2 3.9 3.1 2.2
2020 2021 2022 2023 2024

As at 31 December 2020 % % % % %
a
UK GDP (10.1) (3.9) 6.5 2.6 1.4
b
c
UK HPI 6.1 (13.6) (10.8) 0.5 1.5
UK bank rate 0.2 (0.2) (0.2) (0.1) (0.1)
Downside 1 average macroeconomic variables used in the calculation of ECL
2021 2022 2023 2024 2025

As at 31 December 2021 % % % % %
a
UK GDP 6.2 2.8 (0.7) 2.3 2.9
b
c
UK HPI 4.7 (6.8) (10.5) 6.9 8.6
UK bank rate 0.1 1.6 2.7 2.3 1.6
2020 2021 2022 2023 2024

As at 31 December 2020 % % % % %
a
UK GDP (10.1) 0.1 6.6 3.2 1.8
b
c
UK HPI 6.1 (6.7) (3.5) 1.7 2.0
UK bank rate 0.2 (0.1) (0.1) — —
Upside 2 average macroeconomic variables used in the calculation of ECL
2021 2022 2023 2024 2025

As at 31 December 2021 % % % % %
a
UK GDP 6.2 7.2 4.0 2.7 2.1
b
c
UK HPI 4.7 8.5 9.0 5.2 4.2
UK bank rate 0.1 0.2 0.5 0.5 0.3

Risk review
Risk performance
Credit risk
2020 2021 2022 2023 2024

As at 31 December 2020 % % % % %
a
UK GDP (10.1) 12.2 5.3 3.9 2.9
b
c
UK HPI 6.1 6.6 10.4 10.8 7.3
UK bank rate 0.2 0.1 0.3 0.3 0.5
Upside 1 average macroeconomic variables used in the calculation of ECL
2021 2022 2023 2024 2025
As at 31 December 2021 % % % % %
a
UK GDP 6.2 6.0 3.1 2.3 1.9
b
c
UK HPI 4.7 5.0 5.0 3.9 3.3
UK bank rate 0.1 0.6 0.8 0.8 0.5
2020 2021 2022 2023 2024

As at 31 December 2020 % % % % %
a
UK GDP (10.1) 9.3 3.9 3.4 2.5
b
c
UK HPI 6.1 4.6 6.1 6.1 4.7
UK bank rate 0.2 0.1 0.1 0.3 0.3
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.
a
Scenario probability weighting (audited)
Upside 2 Upside 1 Baseline Downside 1 Downside 2
% % % % %
Scenario probability weighting 20.9 27.2 30.1 14.8 7.0
Scenario probability weighting 20.2 24.2 24.7 15.5 15.4
Note
a For further details on changes to scenario weights see page 79.
Specific bases shows the most extreme position of each variable in the context of the scenario, 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.
a
Macroeconomic variables used in the calculation of ECL (specific bases) (audited)
% % % % %
b
UK GDP 21.4 18.3 3.4 (1.6) (1.6)
c
d
UK HPI 35.7 23.8 2.4 (12.7) (29.9)
c
UK bank rate 0.1 0.1 0.7 2.8 4.0
b
UK GDP 14.2 8.8 0.7 (22.1) (22.1)
c
UK unemployment 4.0 4.0 5.7 8.4 10.1
d
UK HPI 48.2 30.8 3.6 (4.5) (18.3)
c
UK bank rate 0.1 0.1 — 0.6 0.6
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.

Risk review
Risk performance
Credit risk
a
Macroeconomic variables used in the calculation of ECL (5-year averages) (audited)
% % % % %
e
UK GDP 4.4 3.9 3.4 2.7 1.8
f
g
UK HPI 6.3 4.4 2.4 0.3 (2.0)
f
UK bank rate 0.3 0.5 0.7 1.7 2.3
e
UK GDP 2.5 1.6 0.7 0.1 (0.9)
f
g
UK HPI 8.2 5.5 3.6 (0.2) (3.6)
f
UK bank rate 0.3 0.2 — — (0.1)
Notes
a UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK unemployment rate 16-year+; UK HPI = Halifax All Houses, All Buyers Index. 20
quarter period starts from Q121 (2020: Q120).
b Maximum growth relative to Q420 (2020: Q419), based on 20 quarter period in Upside scenarios; 5-year yearly average CAGR in Baseline; minimum growth
relative to Q420 (2020: Q419), 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 Q121 (2020: Q120).
d Maximum growth relative to Q420 (2020: Q419), based on 20 quarter period in Upside scenarios; 5-year quarter end CAGR in Baseline; minimum growth
relative to Q420 (2020: Q419), based on 20 quarter period in Downside scenarios.
e 5-year yearly average CAGR, starting 2020 (2020: 2019).
f 5-year average. Period based on 20 quarters from Q121 (2020: Q120).
g 5-year quarter end CAGR, starting Q420 (2020: Q419).

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Risk performance
Credit risk
The graphs below plot the historical data for GDP growth rate and unemployment rate in the UK as well as the forecasted data under each of the five
scenarios.
UK GDP
%
UK unemployment
%
GDP growth based on year on year growth each quarter (Q/(Q-4)).
ECL under 100% weighted scenarios for modelled portfolios (audited)

The table below shows the ECL assuming scenarios have been 100% weighted. Model exposures are allocated to a stage based on the
individual scenario rather than through a probability-weighted approach as required for Barclays reported impairment allowances. As a
result, it is not possible to back solve to the final reported weighted ECL from the individual scenarios as a balance may be assigned to a
different stage dependent on the scenario. Model exposure uses exposure at default (EAD) values and is not directly comparable to gross
exposure used in prior disclosures. For Credit cards, unsecured loans and other retail lending, an average EAD measure is used 12-month or
lifetime depending on stage allocation in each scenario. Therefore, the model exposure movement into Stage 2 is higher than the
corresponding Stage 1 reduction.
All ECL using a Model are included, with the exception of Treasury assets (£0.9m of ECL), Non-modelled exposures and management
adjustments are excluded. Management adjustments can be found on page 77.
Model exposures allocated to Stage 3 do not change in any of the scenarios as the transition criteria relies only on observable evidence of
default as at 31 December 2021 and not on macroeconomic scenarios.
The Downside 2 scenario represents a severe global recession with substantial falls in UK GDP. Unemployment rises towards 9.2% and
there are substantial falls in asset prices including housing.

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Risk performance
Credit risk
Under the Downside 2 scenario, model exposure moves between stages as the economic environment weakens. This can be seen in the
movement of £11.1bn of model exposure into Stage 2 between the Weighted and Downside 2 scenario. ECL increases in Stage 2
predominantly due to unsecured portfolios as economic conditions deteriorate.
Scenarios
As at 31 December 2021 Weighted Upside 2 Upside 1 Baseline Downside 1 Downside 2
Stage 1 Model exposure (£m)
Home loans 133,373 135,202 134,513 133,656 131,660 129,174
Credit cards, unsecured loans and other retail lending 24,120 24,554 24,419 24,291 23,433 22,793
Wholesale loans 31,446 32,357 32,086 31,485 29,412 26,235
Stage 1 Model ECL (£m)
Home loans 2 — — 1 3 11
Credit cards, unsecured loans and other retail lending 95 101 99 97 87 77
Wholesale loans 71 50 62 70 77 69
Stage 1 Coverage (%)
Home loans — — — — — —
Credit cards, unsecured loans and other retail lending 0.4 0.4 0.4 0.4 0.4 0.3
Wholesale loans 0.2 0.2 0.2 0.2 0.3 0.3
Home loans 22,686 20,858 21,547 22,404 24,400 26,886
Wholesale loans 3,133 2,222 2,492 3,094 5,166 8,344
Home loans 2 — — 1 4 23
Credit cards, unsecured loans and other retail lending 744 656 689 720 891 1,008
Home loans — — — — — 0.1
Wholesale loans 2.1 1.7 1.9 2.1 2.7 3.4
Home loans 1,114 1,114 1,114 1,114 1,114 1,114
a
Wholesale loans 1,811 1,811 1,811 1,811 1,811 1,811
Home loans 6 2 3 4 10 27
a
Wholesale loans 323 321 322 323 326 332
Home loans 0.5 0.2 0.3 0.4 0.9 2.4
a
Wholesale loans 17.8 17.7 17.8 17.8 18.0 18.3
Total Model ECL (£m)
Home loans 10 2 3 6 17 61
a
Wholesale loans 460 408 431 459 542 682
Total ECL 1,842 1,693 1,752 1,816 2,078 2,377
Note
a Material wholesale loan defaults are individually assessed across different recovery strategies. As a result, ECL of £61m is reported as individually assessed
impairments in the table below.
Reconciliation to total ECL £m

Total model ECL 1,842
ECL from individually assessed impairments 61
a
ECL from non-modelled and other management adjustments 312
Total ECL 2,215
Note
a Includes £0.3bn of post model adjustments of which £0.1bn included as part of total model ECL and £0.1bn ECL from non-model exposure

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Risk performance
Credit risk
The dispersion of results around the Baseline is an indication of uncertainty around the future projections. The disclosure highlights the
results of the alternative scenarios enabling the reader to understand the extent of the impact on exposure and ECL from the upside/
downside scenarios. Consequently, the use of five scenarios with associated weightings results in a total weighted ECL uplift from the
Baseline ECL of 1.4%, largely driven by credit card losses which have more linear loss profiles than UK home loans and wholesale loan
positions.
Home loans: Total weighted ECL of £10m represents a 66.7% increase over the Baseline ECL (£6m) mainly due to a significant increase in
the Downside 2 scenario to £61m, driven by a significant fall in UK HPI (29.9%) reflecting the non-linearity of the UK portfolio. Coverage
ratios remain steady across the Upside scenarios and Baseline scenarios.
Credit cards, unsecured loans and other retail lending: Total weighted ECL of £1,372m represents a 1.6% increase over the Baseline ECL
(£1,351m) reflecting the range of economic scenarios used, mainly impacted by unemployment and other key retail variables. Total ECL
increases to £1,634m under the Downside 2 scenario, mainly driven by Stage 2, where coverage rates increase to 14.6% from a weighted
scenario approach of 14.4% and a £1,735m increase in model exposure that meets the Significant Increase in Credit Risk criteria and
transitions from Stage 1 to Stage 2.
Wholesale loans: Total weighted ECL of £460m represents a 0.2% increase over the Baseline ECL (£459m) reflecting the range of
economic scenarios used.

Risk review
Risk performance
Credit risk
Scenarios
As at 31 December 2020 Weighted Upside 2 Upside 1 Baseline Downside 1 Downside 2
Home loans 127,018 129,678 128,830 128,007 126,160 124,004
Wholesale loans 33,150 34,043 33,837 33,210 31,620 29,655
Home loans 1 — 1 1 9 37
Home loans — — — — — —
Wholesale loans 0.1 — 0.1 0.1 0.2 0.2
Home loans 18,623 15,963 16,810 17,634 19,480 21,637
Wholesale loans 2,843 1,949 2,155 2,782 4,373 6,337
Home loans 4 — — 1 6 23
Home loans — — — — — 0.1
Wholesale loans 1.8 1.5 1.7 1.8 2.0 2.5
Home loans 1,050 1,050 1,050 1,050 1,050 1,050
a
Wholesale loans 1,349 1,349 1,349 1,349 1,349 1,349
Home loans 9 4 5 6 13 23
a
Wholesale loans 121 109 114 118 128 144
Home loans 0.9 0.4 0.5 0.6 1.2 2.2
a
Wholesale loans 9.0 8.1 8.5 8.7 9.5 10.7
Total Model ECL (£m)
Home loans 14 4 6 8 28 83
a
Wholesale loans 217 143 178 211 277 373
Total ECL 2,830 2,283 2,506 2,764 3,306 3,923
Note
a Material wholesale loan defaults are individually assessed across different recovery strategies. As a result, ECL of £67m is reported as individually assessed
impairments in the table below.
a
Reconciliation to total ECL £m
Total model ECL 2,830
ECL from individually assessed impairments 67
ECL from non-modelled and other management adjustments 545
Total ECL 3,442
Note
a Includes £0.4bn of post model adjustments and £0.1bn ECL from non-modelled exposures.

Risk review
Risk performance
Credit risk
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 UK 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. Further detail on Barclays Bank UK Group’s policies with regard to managing concentration risk is presented on
page 35.
Geographic concentrations
As at 31 December 2021, the geographic concentration of Barclays Bank UK Group’s asset exposure is concentrated in the UK 94% (2020:
91%), Americas 2% (2020: 3%), Europe 1% (2020: 2%) and in Asia 2% (2020: 4%).
Credit risk concentrations by geography (audited)

United Africa and
Kingdom Americas Europe Asia Middle East Total
Barclays Bank UK Group £m £m £m £m £m £m
On-balance sheet:
Cash collateral and settlement balances 4,751 197 69 50 — 5,067
Loans and advances at amortised cost 212,019 880 757 6,336 279 220,271
secured lending 15 — 50 — — 65
Trading portfolio assets 77 62 30 — — 169
statement 2,767 — — — — 2,767
Derivative financial instruments 869 19 2 — — 890
comprehensive income 3,138 6,640 3,632 1,498 37 14,945
Other assets 316 — — — — 316
Total on-balance sheet 293,440 7,798 4,540 7,884 316 313,978
Off-balance sheet:
Loan commitments 59,101 34 49 35 18 59,237
Total off-balance sheet 59,691 34 49 35 18 59,827
Total 353,131 7,832 4,589 7,919 334 373,805
On-balance sheet:
Loans and advances at amortised cost 203,813 691 1,004 5,831 310 211,649
Trading portfolio assets 52 — 245 1 — 298
statement 3,432 — — — — 3,432
Derivative financial instruments 545 5 — — — 550
Other assets 322 — — — — 322
Off-balance sheet:
Total 317,858 8,814 7,840 13,669 352 348,533

Risk review
Risk performance
Credit risk
Credit risk concentrations by geography (audited)

United Africa and
Kingdom Americas Europe Asia Middle East Total
Barclays Bank UK PLC £m £m £m £m £m £m
On-balance sheet:
Loans and advances at amortised cost 212,408 880 757 6,336 279 220,660
Trading portfolio assets 77 62 30 — — 169
statement 2,767 — — — — 2,767
Derivative financial instruments 869 19 2 — — 890
Other assets 316 — — — — 316
Off-balance sheet:
Total 353,439 7,832 4,589 7,919 334 374,113
On-balance sheet:
Loans and advances at amortised cost 204,197 691 1,004 5,831 310 212,033
Trading portfolio assets 52 — 245 1 — 298
statement 3,432 — — — — 3,432
Derivative financial instruments 545 5 — — — 550
Other assets 331 — — — — 331
Off-balance sheet:
Total 318,336 8,814 7,840 13,669 352 349,011

Risk review
Risk performance
Credit risk
Industry concentrations
As at 31 December 2021, total assets concentrated in home loans is 45% (2020: 46%) and cards, unsecured loans and other personal
lending is 16% (2020: 19%). The proportion of the overall balance concentrated towards governments and central banks is 26% (2020:
21%), predominantly within cash and balances at central banks. Further details on material and emerging risks can be found on pages 37
to 48.
Credit risk concentrations by industry (audited)

Cards,
Govern- unsecured
Other Const- ment Wholesale Business loans and
financial ruction and Energy and retail and other
insti- Manu- and central and distribution other Home personal
Barclays Bank UK Group Banks tutions facturing property bank water and leisure services loans lending Other Total
As at 31 December 2021 £m £m £m £m £m £m £m £m £m £m £m £m
On-balance sheet:
Cash and balances at
central banks 24 73 — — 69,391 — — — — — — 69,488
Cash collateral and
settlement balances 816 329 — — 3,842 — — 12 — 68 — 5,067
Loans and advances at
amortised cost 779 4,953 880 12,008 15,365 101 4,188 5,231 158,220 13,314 5,232 220,271
Reverse repurchase
agreements and other
similar secured lending 65 — — — — — — — — — — 65
Trading portfolio assets 29 — — 49 91 — — — — — — 169
Financial assets at fair
value through the income
statement — — — 2,554 10 — — 200 — — 3 2,767
Derivative financial
instruments 566 324 — — — — — — — — — 890
value through other
comprehensive income 4,499 1,302 — 148 8,897 — — 13 — — 86 14,945
Other assets 251 46 — 3 — — — — — 16 — 316
Total on-balance sheet 7,029 7,027 880 14,762 97,596 101 4,188 5,456 158,220 13,398 5,321 313,978
Off-balance sheet:
Contingent liabilities — — — — 590 — — — — — — 590
Loan commitments 100 27 154 921 2 13 427 474 11,314 44,827 978 59,237
Total off-balance sheet 100 27 154 921 592 13 427 474 11,314 44,827 978 59,827
Total 7,129 7,054 1,034 15,683 98,188 114 4,615 5,930 169,534 58,225 6,299 373,805
On-balance sheet:
central banks 54 84 — — 35,080 — — — — — — 35,218
Cash collateral and
settlement balances 619 608 — — 3,118 — — — — — — 4,345
amortised cost 867 2,693 933 13,160 14,670 116 4,572 5,636 148,454 14,979 5,569 211,649
Reverse repurchase
Trading portfolio assets 1 — — — 297 — — — — — — 298
statement — — — 3,188 11 — — 229 — — 4 3,432
instruments 432 118 — — — — — — — — — 550
value through other
Other assets 213 40 1 9 — — 14 11 — 29 5 322
Off-balance sheet:
Loan commitments 100 28 171 1,159 — 14 479 537 12,251 50,162 1,009 65,910
Total off-balance sheet 100 28 171 1,159 650 14 479 537 12,251 50,162 1,009 66,560
Total 8,245 5,156 1,105 17,608 72,007 130 5,065 6,619 160,705 65,170 6,723 348,533

Risk review
Risk performance
Credit risk
Credit risk concentrations by industry (audited)

Cards,
Govern- unsecured
Other Const- ment Wholesale Business loans and
financial ruction and Energy and retail and other
insti- Manu- and central and distribution other Home personal
Barclays Bank UK PLC Banks tutions facturing property bank water and leisure services loans lending Other Total
As at 31 December 2021 £m £m £m £m £m £m £m £m £m £m £m £m
On-balance sheet:
central banks 24 73 — — 69,391 — — — — — — 69,488
Cash collateral and
amortised cost 1,088 5,035 880 12,008 15,365 101 4,188 5,231 158,246 13,311 5,207 220,660
Reverse repurchase
Trading portfolio assets 30 — — 49 90 — — — — — — 169
statement — — — 2,554 10 — — 200 — — 3 2,767
instruments 483 407 — — — — — — — — — 890
value through other
Other assets 249 52 — 3 — — — — — 12 — 316
Off-balance sheet:
Loan commitments 100 27 154 921 2 13 427 474 11,315 44,826 978 59,237
Total off-balance sheet 100 27 154 921 592 13 427 474 11,315 44,826 978 59,827
Total 7,353 7,224 1,034 15,683 98,188 114 4,615 5,918 169,561 58,149 6,274 374,113
On-balance sheet:
central banks 54 84 — — 35,080 — — — — — — 35,218
Cash collateral and
amortised cost 1,184 2,764 933 13,160 14,670 116 4,572 5,636 148,454 14,975 5,569 212,033
Reverse repurchase
Trading portfolio assets 1 — — — 297 — — — — — — 298
statement — — — 3,188 11 — — 229 — — 4 3,432
instruments 305 245 — — — — — — — — — 550
value through other
Other assets 209 67 1 9 — — 5 11 — 24 5 331
Off-balance sheet:
Loan commitments 185 28 171 1,159 — 14 479 537 12,251 50,162 1,009 65,995
Total off-balance sheet 185 28 171 1,159 650 14 479 537 12,251 50,162 1,009 66,645
Total 8,516 5,381 1,105 17,608 72,007 130 5,056 6,619 160,705 65,161 6,723 349,011

Risk review
Risk performance
Credit risk
The Barclays Bank UK Group’s 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 the Expected Credit Losses section on pages 65 to 72.
The Barclays Bank UK Group uses the following internal measures to determine credit quality for loans:
Retail and Wholesale

lending
Default Grade PD Credit Quality Description
1-3 0.0 to < 0.05% Strong
4-5 0.05 to < 0.15%
6-8 0.15 to < 0.30%
9-11 0.30 to < 0.60%
12-14 0.60 to < 2.15% Satisfactory
15-19 2.15 to < 10%
19 10 to < 11.35%
20-21 11.35% to < 100% Higher Risk
22 100% Credit Impaired
For retail clients, a range of analytical tools are used to derive the probability of default of clients at inception and on an ongoing basis.
For loans that are not past due, these 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 UK
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.
Loans that are past due are monitored closely, with impairment allowances raised as appropriate and in line with the Barclays Bank UK
Group’s impairment policies. These loans are all considered higher risk for the purpose of this analysis of credit quality.
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 UK 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 UK Group will
use its own internal ratings for the securities.

Risk review
Risk performance
Credit risk
Balance sheet credit quality

The following tables present the credit quality of Barclays Bank UK Group assets exposed to credit risk.
Overview
As at 31 December 2021 the ratio of the Barclays Bank UK Group’s on-balance sheet assets classified as strong (0.0 < 0.60%) remained
stable at 91% (2020: 90%) of total assets exposed to credit risk.
Balance sheet credit quality (audited)

PD 0.0 to 0.60 to 11.35% to 0.0 to 0.60 to 11.35% to
Barclays Bank UK Group Range <0.60% <11.35% 100% Total <0.60% <11.35% 100% Total
As at 31 December 2021 £m £m £m £m % % % %
Cash and balances at central

banks 69,488 — — 69,488 100 — — 100
Cash collateral and settlement
balances 4,986 81 — 5,067 98 2 — 100
Loans and advances at amortised
cost
Home loans 151,795 4,737 1,688 158,220 96 3 1 100
Credit cards, unsecured loans and
other retail lending 5,483 7,445 497 13,425 41 55 4 100
Wholesale loans 33,067 13,451 2,108 48,626 68 28 4 100
Total loans and advances at
amortised cost 190,345 25,633 4,293 220,271 86 12 2 100
Reverse repurchase agreements
and other similar secured lending 65 — — 65 100 — — 100
Debt securities 169 — — 169 100 — — 100
Total trading portfolio assets 169 — — 169 100 — — 100
Financial assets at fair value
through the income statement:
Loans and advances 2,667 82 18 2,767 96 3 1 100
Other financial assets — — — — — — — —
Total financial assets at fair value
through the income statement 2,667 82 18 2,767 96 3 1 100
Derivative financial instruments 890 — — 890 100 — — 100
through other comprehensive
income - debt securities 14,945 — — 14,945 100 — — 100
Other assets 310 6 — 316 98 2 — 100
Total on-balance sheet 283,865 25,802 4,311 313,978 91 8 1 100

Risk review
Risk performance
Credit risk

PD 0.0 to 0.60 to 11.35% to 0.0 to 0.60 to 11.35% to
Barclays Bank UK Group Range <0.60% <11.35% 100% Total <0.60% <11.35% 100% Total
Cash and balances at central — —

banks 35,218 35,218 100 — — 100
Cash collateral and settlement — —
balances 4,345 4,345 100 — — 100
cost
Home loans 143,252 3,470 1,732 148,454 97 2 1 100
Credit cards, unsecured loans and 4,034 9,906 1,129 15,069 27 66 7 100
other retail lending
Wholesale loans 36,407 10,193 1,526 48,126 76 21 3 100
amortised cost 183,693 23,569 4,387 211,649 87 11 2 100
Debt securities 298 — — 298 100 — — 100
Loans and advances 3,293 137 — 3,430 96 4 — 100
Other financial assets 2 — — 2 100 — — 100
Total financial assets at fair value 3,295 137 — 3,432 96 4 — 100
through the income statement
through other comprehensive 26,026 — — 26,026 100 — — 100
income - debt securities
Other assets 301 19 2 322 93 6 1 100

Risk review
Risk performance
Credit risk

PD 0.0 to 0.60 to 11.35% to 0.0 to 0.60 to 11.35% to
Barclays Bank UK PLC Range <0.60% <11.35% 100% Total <0.60% <11.35% 100% Total

banks 69,488 — — 69,488 100 — — 100
balances 4,986 — — 4,986 100 — — 100
cost
Home loans 151,795 4,737 1,688 158,220 96 3 1 100
other retail lending 5,483 7,444 496 13,423 41 55 4 100
Wholesale loans 33,458 13,451 2,108 49,017 69 27 4 100
amortised cost 190,736 25,632 4,292 220,660 86 12 2 100
Debt securities 169 — — 169 100 — — 100
Loans and advances 2,667 82 18 2,767 96 3 1 100
Other financial assets — — — — — — — —
through the income statement 2,667 82 18 2,767 96 3 1 100
Other assets 316 — — 316 100 — — 100

Risk review
Risk performance
Credit risk

PD 0.0 to 0.60 to 11.35% to 0.0 to 0.60 to 11.35% to
Barclays Bank UK PLC Range <0.60% <11.35% 100% Total <0.60% <11.35% 100% Total

banks 35,218 — — 35,218 100 — — 100
balances 4,345 — — 4,345 100 — — 100
cost
Home loans 143,252 3,470 1,732 148,454 97 2 1 100
other retail lending 4,034 9,906 1,125 15,065 27 66 7 100
Wholesale loans 36,795 10,193 1,526 48,514 76 21 3 100
amortised cost 184,081 23,569 4,383 212,033 87 11 2 100
Debt securities 298 — — 298 100 — — 100
Total trading portfolio assets 298 298 100 — — 100
Loans and advances 3,293 137 — 3,430 96 4 — 100
Other financial assets 2 — — 2 100 — — 100
through the income statement 3,295 137 — 3,432 96 4 — 100
Other assets 329 — 2 331 99 — 1 100

Risk review
Risk performance
Credit risk
Credit exposures by internal PD grade

The below tables represents 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 7 on page 152), including relative movement in probability of default since initial recognition.
There is therefore no direct relationship between credit quality and IFRS 9 stage classification.
Credit risk profile by internal PD grade for loans and advances at amortised cost (audited)
As at 31 December 2021 Gross carrying amount Allowance for ECL
Net Coverage
Barclays Bank UK Group Credit quality Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total exposure ratio
Grading PD range % description £m £m £m £m £m £m £m £m £m %
1-3 0.0 to < 0.05% Strong 49,325 699 — 50,024 10 2 — 12 50,012 —
4-5 0.05 to < 0.15% Strong 65,684 3,371 — 69,055 13 1 — 14 69,041 —
6-8 0.15 to < 0.30% Strong 47,003 8,498 — 55,501 24 5 — 29 55,472 0.1
9-11 0.30 to < 0.60% Strong 13,395 2,509 — 15,904 70 14 — 84 15,820 0.5
12-14 0.60 to < 2.15% Satisfactory 13,614 3,573 — 17,187 161 143 — 304 16,883 1.8
15-19 2.15 to < 10% Satisfactory 1,325 1,651 — 2,976 61 477 — 538 2,438 18.1
19 10 to < 11.35% Satisfactory 3,362 3,063 — 6,425 49 64 — 113 6,312 1.8
20-21 11.35 to < 100% Higher Risk 253 1,275 — 1,528 7 265 — 272 1,256 17.8
22 100% Credit Impaired — — 3,850 3,850 — — 813 813 3,037 21.1
Total 193,961 24,639 3,850 222,450 395 971 813 2,179 220,271 1.0
Net Coverage
1-3 0.0 to < 0.05% Strong 52,581 2,407 — 54,988 7 31 — 38 54,950 0.1
4-5 0.05 to < 0.15% Strong 84,175 9,079 — 93,254 17 22 — 39 93,215 —
6-8 0.15 to < 0.30% Strong 16,598 3,793 — 20,391 11 12 — 23 20,368 0.1
9-11 0.30 to < 0.60% Strong 12,753 2,473 — 15,226 29 37 — 66 15,160 0.4
12-14 0.60 to < 2.15% Satisfactory 11,330 3,361 — 14,691 76 234 — 310 14,381 2.1
15-19 2.15 to < 10% Satisfactory 2,527 2,320 — 4,847 106 611 — 717 4,130 14.8
19 10 to < 11.35% Satisfactory 2,463 2,738 — 5,201 47 96 — 143 5,058 2.7
20-21 11.35 to < 100% Higher Risk 481 1,907 — 2,388 29 563 — 592 1,796 24.8
22 100% Credit Impaired — — 3,812 3,812 — — 1,221 1,221 2,591 32.0
Total 182,908 28,078 3,812 214,798 322 1,606 1,221 3,149 211,649 1.5
Credit risk profile by internal PD grade for contingent liabilities (audited)

Net Coverage
1-3 0.0 to < 0.05% Strong 590 — — 590 — — — — 590 —
4-5 0.05 to < 0.15% Strong — — — — — — — — — —
6-8 0.15 to < 0.30% Strong — — — — — — — — — —
9-11 0.30 to < 0.60% Strong — — — — — — — — — —
12-14 0.60 to < 2.15% Satisfactory — — — — — — — — — —
15-19 2.15 to < 10% Satisfactory — — — — — — — — — —
19 10 to < 11.35% Satisfactory — — — — — — — — — —
20-21 11.35 to < 100% Higher Risk — — — — — — — — — —
22 100% Credit Impaired — — — — — — — — — —
Total 590 — — 590 — — — — 590 —

Risk review
Risk performance
Credit risk

Net Coverage
1-3 0.0 to < 0.05% Strong 650 — — 650 — — — — 650 —
4-5 0.05 to < 0.15% Strong — — — — — — — — — —
6-8 0.15 to < 0.30% Strong — — — — — — — — — —
9-11 0.30 to < 0.60% Strong — — — — — — — — — —
12-14 0.60 to < 2.15% Satisfactory — — — — — — — — — —
15-19 2.15 to < 10% Satisfactory — — — — — — — — — —
19 10 to < 11.35% Satisfactory — — — — — — — — — —
20-21 11.35 to < 100% Higher Risk — — — — — — — — — —
22 100% Credit Impaired — — — — — — — — — —
Total 650 — — 650 — — — — 650 —
Credit risk profile by internal PD grade for loan commitments (audited)

Net Coverage
1-3 0.0 to < 0.05% Strong 9,463 31 — 9,494 — — — — 9,494 —
4-5 0.05 to < 0.15% Strong 13,007 178 — 13,185 1 — — 1 13,184 —
6-8 0.15 to < 0.30% Strong 8,623 308 — 8,931 1 — — 1 8,930 —
9-11 0.30 to < 0.60% Strong 17,076 212 — 17,288 2 — — 2 17,286 —
12-14 0.60 to < 2.15% Satisfactory 6,876 1,469 — 8,345 2 10 — 12 8,333 0.1
15-19 2.15 to < 10% Satisfactory 645 730 — 1,375 1 16 — 17 1,358 1.2
19 10 to < 11.35% Satisfactory 137 127 — 264 — — — — 264 —
20-21 11.35 to < 100% Higher Risk 23 85 — 108 — 3 — 3 105 2.8
22 100% Credit Impaired — — 247 247 — — — — 247 —
Total 55,850 3,140 247 59,237 7 29 — 36 59,201 0.1

Net Coverage
1-3 0.0 to < 0.05% Strong 6,056 214 — 6,270 — — — — 6,270 —
4-5 0.05 to < 0.15% Strong 12,183 592 — 12,775 1 9 — 10 12,765 0.1
6-8 0.15 to < 0.30% Strong 9,596 438 — 10,034 2 27 — 29 10,005 0.3
9-11 0.30 to < 0.60% Strong 18,145 740 — 18,885 3 53 — 56 18,829 0.3
12-14 0.60 to < 2.15% Satisfactory 10,257 2,930 — 13,187 6 113 — 119 13,068 0.9
15-19 2.15 to < 10% Satisfactory 2,070 1,977 — 4,047 4 67 — 71 3,976 1.8
19 10 to < 11.35% Satisfactory 108 157 — 265 — — — — 265 —
20-21 11.35 to < 100% Higher Risk 61 122 — 183 — 8 — 8 175 4.4
22 100% Credit Impaired — — 264 264 — — — — 264 —
Total 58,476 7,170 264 65,910 16 277 — 293 65,617 0.4
Net Coverage
Barclays Bank UK PLC Credit quality Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total exposure ratio
1-3 0.0 to < 0.05% Strong 49,693 699 — 50,392 10 2 — 12 50,380 —
4-5 0.05 to < 0.15% Strong 65,684 3,371 — 69,055 13 1 — 14 69,041 —
6-8 0.15 to < 0.30% Strong 47,003 8,498 — 55,501 24 5 — 29 55,472 0.1
9-11 0.30 to < 0.60% Strong 13,418 2,509 — 15,927 70 14 — 84 15,843 0.5
12-14 0.60 to < 2.15% Satisfactory 13,614 3,573 — 17,187 161 144 — 305 16,882 1.8
15-19 2.15 to < 10% Satisfactory 1,325 1,651 — 2,976 61 477 — 538 2,438 18.1
19 10 to < 11.35% Satisfactory 3,362 3,063 — 6,425 49 64 — 113 6,312 1.8
20-21 11.35 to < 100% Higher Risk 253 1,275 — 1,528 7 265 — 272 1,256 17.8
22 100% Credit Impaired — — 3,848 3,848 — — 812 812 3,036 21.1
Total 194,352 24,639 3,848 222,839 395 972 812 2,179 220,660 1.0

Risk review
Risk performance
Credit risk
Net Coverage
1-3 0.0 to < 0.05% Strong 52,959 2,407 — 55,366 7 31 — 38 55,328 0.1
4-5 0.05 to < 0.15% Strong 84,175 9,079 — 93,254 17 22 — 39 93,215 —
6-8 0.15 to < 0.30% Strong 16,598 3,793 — 20,391 11 12 — 23 20,368 0.1
9-11 0.30 to < 0.60% Strong 12,763 2,473 — 15,236 29 37 — 66 15,170 0.4
12-14 0.60 to < 2.15% Satisfactory 11,330 3,361 — 14,691 76 234 — 310 14,381 2.1
15-19 2.15 to < 10% Satisfactory 2,527 2,320 — 4,847 106 611 — 717 4,130 14.8
19 10 to < 11.35% Satisfactory 2,463 2,738 — 5,201 47 96 — 143 5,058 2.7
20-21 11.35 to < 100% Higher Risk 481 1,907 — 2,388 29 563 — 592 1,796 24.8
22 100% Credit Impaired — — 3,808 3,808 — — 1,221 1,221 2,587 32.1
Total 183,296 28,078 3,808 215,182 322 1,606 1,221 3,149 212,033 1.5

Net Coverage
1-3 0.0 to < 0.05% Strong 590 — — 590 — — — — 590 —
4-5 0.05 to < 0.15% Strong — — — — — — — — — —
6-8 0.15 to < 0.30% Strong — — — — — — — — — —
9-11 0.30 to < 0.60% Strong — — — — — — — — — —
12-14 0.60 to < 2.15% Satisfactory — — — — — — — — — —
15-19 2.15 to < 10% Satisfactory — — — — — — — — — —
19 10 to < 11.35% Satisfactory — — — — — — — — — —
20-21 11.35 to < 100% Higher Risk — — — — — — — — — —
22 100% Credit Impaired — — — — — — — — — —
Total 590 — — 590 — — — — 590 —

Net Coverage
1-3 0.0 to < 0.05% Strong 650 — — 650 — — — — 650 —
4-5 0.05 to < 0.15% Strong — — — — — — — — — —
6-8 0.15 to < 0.30% Strong — — — — — — — — — —
9-11 0.30 to < 0.60% Strong — — — — — — — — — —
12-14 0.60 to < 2.15% Satisfactory — — — — — — — — — —
15-19 2.15 to < 10% Satisfactory — — — — — — — — — —
19 10 to < 11.35% Satisfactory — — — — — — — — — —
20-21 11.35 to < 100% Higher Risk — — — — — — — — — —
22 100% Credit Impaired — — — — — — — — — —
Total 650 — — 650 — — — — 650 —

Risk review
Risk performance
Credit risk

Net Coverage
1-3 0.0 to < 0.05% Strong 9,463 31 — 9,494 — — — — 9,494 —
4-5 0.05 to < 0.15% Strong 13,007 178 — 13,185 1 — — 1 13,184 —
6-8 0.15 to < 0.30% Strong 8,623 308 — 8,931 1 — — 1 8,930 —
9-11 0.30 to < 0.60% Strong 17,076 212 — 17,288 2 — — 2 17,286 —
12-14 0.60 to < 2.15% Satisfactory 6,876 1,469 — 8,345 2 10 — 12 8,333 0.1
15-19 2.15 to < 10% Satisfactory 645 730 — 1,375 1 16 — 17 1,358 1.2
19 10 to < 11.35% Satisfactory 137 127 — 264 — — — — 264 —
20-21 11.35 to < 100% Higher Risk 23 85 — 108 — 3 — 3 105 2.8
22 100% Credit Impaired — — 247 247 — — — — 247 —
Total 55,850 3,140 247 59,237 7 29 — 36 59,201 0.1

Net Coverage
1-3 0.0 to < 0.05% Strong 6,141 214 — 6,355 — — — — 6,355 —
4-5 0.05 to < 0.15% Strong 12,183 592 — 12,775 1 9 — 10 12,765 0.1
6-8 0.15 to < 0.30% Strong 9,596 438 — 10,034 2 27 — 29 10,005 0.3
9-11 0.30 to < 0.60% Strong 18,145 740 — 18,885 3 53 — 56 18,829 0.3
12-14 0.60 to < 2.15% Satisfactory 10,257 2,930 — 13,187 6 113 — 119 13,068 0.9
15-19 2.15 to < 10% Satisfactory 2,070 1,977 — 4,047 4 67 — 71 3,976 1.8
19 10 to < 11.35% Satisfactory 108 157 — 265 — — — — 265 —
20-21 11.35 to <100% Higher Risk 61 122 — 183 — 8 — 8 175 4.4
22 100% Credit Impaired — — 264 264 — — — — 264 —
Total 58,561 7,170 264 65,995 16 277 — 293 65,702 0.4

Risk review
Risk performance
Credit risk
Analysis of specific portfolios and asset types
Secured home loans
The UK home loan portfolio primarily comprises first lien mortgages and accounts for 100% of the Barclays Bank UK Group’s total home
loans balance.
Home loans principal portfolios

As at 31 December 2021 2021 2020
Gross loans and advances (£m) 158,192 148,343
>90 day arrears, excluding recovery book (%) 0.1 0.2
Annualised gross charge-off rates – 180 days past due (%) 0.5 0.6
Recovery book proportion of outstanding balances (%) 0.6 0.6
Recovery book impairment coverage ratio (%) 4.2 3.2
Within the UK home loans portfolio:
▪ Gross loans and advances increased by £9.8bn (6.6%) following an increase in Residential (7.8%), while Buy to Let (BTL) remained
broadly stable.
▪ Owner-occupied interest-only home loans comprised 19.0% (2020: 22.1%) of total balances. The average balance weighted LTV on
owner occupied loans increased to 50.3% (2020: 49.9%).
▪ BTL home loans comprised 13.1% (2020: 14.0%) of total balances. In BTL, the average balance weighted LTV dropped to 53.4% (2020:
55.3.%)
a
Home loans principal portfolios - distribution of balances by LTV
Distribution of Balances Distribution of impairment allowance Coverage ratio
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
% % % % % % % % % % % %
<=75% 77.2 11.3 0.7 89.2 8.3 17.7 31.9 57.9 — 0.1 2.4 —
>75% and <=90% 9.3 0.6 — 9.9 4.8 10.7 11.7 27.2 — 1.0 22.6 0.1
>90% and <=100% 0.9 — — 0.9 0.9 1.0 2.9 4.8 0.1 1.9 87.5 0.3
>100% — — — — 0.2 1.0 8.9 10.1 0.4 6.4 100.0 14.1
<=75% 75.7 11.6 0.6 87.9 17.9 15.0 19.0 51.9 — 0.1 1.8 —
>75% and <=90% 10.8 0.8 — 11.6 9.7 14.8 7.6 32.1 0.1 1.2 16.0 0.2
>90% and <=100% 0.4 — — 0.4 0.8 1.5 2.2 4.5 0.1 2.6 35.7 0.7
>100% 0.1 — — 0.1 0.7 3.4 7.4 11.5 0.7 10.3 69.1 8.0
Note
a Portfolio marked to market based on the most updated valuation including recovery book balances. Updated valuations reflect the application of the latest
HPI available as at 31 December 2021.
Home loans principal portfolios – average LTV

As at 31 December 2021 2021 2020
Overall portfolio LTV (%):
Balance weighted % 50.7 50.7
Valuation weighted % 37.5 37.6
For >100% LTVs:
Balances £m 58 129
Marked to market collateral £m 47 112
Average LTV: Balance weighted % 160.9 138.2
Average LTV: Valuation weighted % 129.1 120.6
% of Balances in Recoveries 14.5 10.8

Risk review
Risk performance
Credit risk
Home loans principal portfolios - new lending

As at 31 December 2021 2021 2020
New Home loan bookings (£m) 33,945 22,776
New home loan proportion above 90% LTV (%) 1.9 2.6
Average LTV on new home loan: balance weighted (%) 69.5 67.5
Average LTV on new home loan: valuation weighted (%) 61.9 59.6
New Bookings: The increased level of new business in 2021 was driven by elevated demand in the house purchase market supported by
government intervention including stamp duty relief. Barclays maintained its share of the market, supported by re-introduction of HLTV (>
85% LTV) products and reversal of some policy tightening introduced in 2020.
The principal portfolios listed below accounted for 92% (2020: 93%) of Barclays Bank UK Group’s total credit cards, unsecured loans and
other retail lending.
Credit cards, unsecured loans and other retail lending principal portfolios
30 Day Arrears, 90 Day Arrears, Annualised
excluding excluding Gross Write-off Annualised Net
Gross Exposure recoveries book recoveries book Rates Write-off Rates
£m % % % %
UK cards 9,933 1.0 0.2 4.1 4.0
UK personal loans 4,011 1.5 0.7 3.5 3.2
UK cards 11,911 1.7 0.8 2.9 2.9
UK personal loans 4,591 2.3 1.2 3.4 3.1
UK cards: 30 and 90 day arrears rates reduced significantly to 1.0% (2020: 1.7%) and 0.2% (2020: 0.8%) respectively, with balances
reducing by £2.0bn. Whilst performance had been on an improving trend as a result of reduced spend and increased repayments due to
government support as a response to COVID-19 and lower flows into delinquency, the main driver was a change in the point of charge off
from 180 days to 120 days past due. Higher write offs primarily reflected a higher level of debt sales.
UK personal loans: 30 and 90 day arrears rates reduced significantly to 1.5% (2020: 2.3%) and 0.7% (2020: 1.2%) respectively, with
balances reducing by £0.6bn. Similar to UK cards, the main driver was a change in the point of charge off from 180 days to 120 days past
due. Higher write offs primarily reflected a higher level of debt sales.

Risk review
Risk performance
Credit risk
Government supported loans
Throughout the COVID-19 pandemic the Barclays Bank UK Group has supported its customers and clients by participating in the UK
Government's Bounce Back Loan Scheme (BBLs), Coronavirus Business Interruption Loan Scheme (CBILs) and the Recovery Loan Scheme
(RLS).
Government supported loans

Government
guaranteed
Gross exposure Impairment allowance Impairment coverage exposure
Impairment
post Pre Post
Barclays Bank UK Modelled Management Management Management Management
Group Stage 1 Stage 2 Stage 3 Total Impairment adjustment adjustment adjustment adjustment Total
£m £m £m £m £m £m £m % % £m
BBLs 7,881 797 704 9,382 396 (380) 16 4.2 0.2 9,366
CBILs 900 110 47 1,057 12 (7) 5 1.1 0.5 845
RLSs 11 — 1 12 — — — 2.7 2.7 10
Total 8,792 907 752 10,451 408 (387) 21 3.9 0.2 10,221
BBLs 9,413 373 130 9,916 68 (68) — 0.7 — 9,916
CBILs 1,042 37 20 1,099 6 — 6 0.6 0.6 879
RLSs — — — — — — — — — —
Total 10,455 410 150 11,015 74 (68) 6 0.7 0.1 10,795
The BBLs and CBILs schemes were launched to provide financial support to smaller and medium-sized 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 100% for BBLs and 80% for CBILs and RLS
as at the balance sheet date.
Management adjustments of £(380)m and £(7)m are applied as the underlying ECL models do not currently fully recognise the 100% and
80% government guarantee against BBLs and CBILs exposure within Business Banking. In instances where the Barclays Bank UK Group has
assessed the BBLs exposure to have not met strict assessment criteria, no claim has been made against the government guarantee
resulting in an impairment allowance against these loans of £16m at the year-end.
Additionally, while the government supported loans are covered by guarantees, many BBLs customers have other financing arrangements
with the Barclays Bank UK group which are not covered by the government guarantee. Noting the elevated levels of delinquency across the
BBLs population, Barclays Bank UK Group has applied an adjustment of £0.1bn to the £2.5bn gross exposure to BBLs customers outside the
scheme.

Risk review
Risk performance
Market risk
All disclosures in this section are unaudited unless otherwise stated.
Overview
Market Risk within the Barclays Bank UK Group arises from the risk management of the assets held within the liquidity pool. As a result, the
market risk in the Barclays Bank UK Group is minimal. Transactions carrying market risk are executed by the Barclays Bank UK Group
Treasury function.
Management VaR (audited)
Management VaR estimates 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.
Average management VaR in the Barclays Bank UK Group in 2021 was £0.7m (2020: £1.2m) and remained broadly stable throughout the
period. Management VaR in the Barclays Bank UK Group in 2021 was driven by interest rate risk and basis risk in Barclays Bank UK Group
Treasury.
Barclays Bank UK PLC adopts a standardised methodology for calculating capital requirements and as a result regulatory VaR is not
applicable while management VaR is used only for internal risk calculations.

Risk review
Risk performance
Treasury and Capital risk
Summary of Contents Page

Liquidity risk performance
The risk that the firm is unable to meet its contractual or ▪ Overview 105
contingent obligations or that it does not have the
appropriate amount, tenor and composition of funding and
▪ Liquidity risk stress testing 105
liquidity to support its assets.
This section provides an overview of Barclays Bank UK

Group’s liquidity risk.
Provides details on the contractual maturity of all financial ▪ Contractual maturity of financial assets and liabilities 106
instruments and other assets and liabilities.
Capital risk performance
Capital risk is the risk that the firm has an insufficient level or ▪ Capital risk overview 112
composition of capital to support its normal business
activities and to meet its regulatory capital requirements – Capital ratios 112
under normal operating environments or stressed conditions
(both actual and as defined for internal planning or regulatory – Capital resources 112
testing purposes). This also includes the risk from the firm’s
pension plans. – Capital Requirements Regulation leverage ratio 113
This section details Barclays Bank UK PLC’s capital and

leverage position.
Interest rate risk in the banking book
performance
A description of the non-traded market risk framework is ▪ Interest rate risk in the banking book overview and 114
provided. summary of performance
Barclays Bank UK Group discloses a sensitivity analysis on ▪ Net interest income sensitivity 114
pre-tax net interest income for non-trading financial assets ▪ Analysis of equity sensitivity 114
and liabilities. The analysis is carried out by currency.
▪ Volatility of the FVOCI portfolio in the liquidity pool 115
Barclays Bank UK Group discloses the overall impact of a
parallel shift in interest rates on other comprehensive income
and cash flow hedges.
Barclays Bank UK Group measures the volatility of the value

of the FVOCI instruments in the liquidity pool through non-
traded market risk VaR.

Risk review
Risk performance
Liquidity risk
Overview
The efficient management of liquidity is essential to the Barclays Bank UK 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 BAU and
stressed conditions. The 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.
Liquidity risk stress testing
The liquidity risk assessment 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.
The Liquidity Coverage ratio (LCR) requirement takes into account the relative stability of different sources of funding and potential
incremental funding requirements in a stress. The LCR is designed to promote short-term resilience of a bank’s liquidity risk profile by
holding sufficient high quality liquid assets to survive an acute stress scenario lasting for 30 days.
As at 31 December 2021, Barclays Bank UK Group held eligible liquidity assets in excess of 100% of the net stress outflows to its internal
and external regulatory requirements. A significant portion of the liquidity pool was held in cash and deposits with central banks. The
liquidity pool was held entirely within Barclays Bank UK PLC.
The liquidity pool increased to £86bn (31 December 2020: £60bn) and the LCR to 204% (December 2020: 160%) driven by further growth
in customer deposits and increased borrowing from the Bank of England’s Term Funding Scheme with additional incentives for SMEs
(TFSME).
As at 31.12.21 As at 31.12.20
£bn £bn
Barclays Bank UK Group liquidity pool 86 60
% %
Barclays Bank UK Group liquidity coverage ratio 204 160
Barclays Bank UK Group maintains access to a variety of sources of wholesale funds in major currencies, including those available from
term investors across a variety of distribution channels and geographies, short-term funding markets and repo markets. Key sources of
wholesale funding include money markets, certificates of deposit, commercial paper, covered bonds and other securitisations. This funding
capacity enables Barclays Bank UK Group to maintain a stable and diversified funding base.
Barclays Bank UK Group also supports various central bank monetary initiatives, such as the Bank of England’s TFSME. These are reported
under ‘repurchase agreements and other similar secured borrowing’ on the balance sheet. During 2021, Barclays Bank UK Group drew
£12.0bn of TFSME, taking total borrowing to £15.0bn outstanding at the year-end.

Risk review
Risk performance
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 they 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)

Over Over Over one
three Over six nine year Over two Over
months months months but not years but three Over five
Not more but but but more not more years but years but
than not more not more not more than than not more not more
On three than six than nine than one two three than five than ten Over ten
Barclays Bank UK Group demand months months months year years years years years years Total
As at 31 December 2021 £m £m £m £m £m £m £m £m £m £m £m
Assets
central banks 69,488 — — — — — — — — — 69,488
Cash collateral and
5,067
settlement balances 139 4,928 — — — — — — — —
amortised cost 2,494 1,354 2,118 768 1,007 4,388 5,614 20,825 27,665 154,038 220,271
Reverse repurchase
similar secured lending — 65 — — — — — — — — 65
Trading portfolio assets 169 — — — — — — — — — 169
value through the
income statement — 8 — — 8 31 16 161 502 2,041 2,767
instruments 243 22 47 — — 82 145 351 — — 890
value through other
comprehensive income — 1,087 408 796 872 1,172 2,816 3,094 3,509 1,191 14,945
Other financial assets 91 197 27 — — — — — — 2 317
Total financial assets 72,624 7,661 2,600 1,564 1,887 5,673 8,591 24,431 31,676 157,272 313,979
Other assets 5,716
Total assets 319,695
Liabilities
Deposits at amortised
cost 255,414 543 1,396 1,078 826 1,475 — — — — 260,732
Cash collateral and
774
settlement balances 106 668 — — — — — — — —
Repurchase agreements
and other similar secured
borrowing — 3,156 — — — — 4,501 10,503 — — 18,160
Debt securities in issue — 5,272 456 — — 1,751 — — 997 208 8,684
Subordinated liabilities — 576 — — 422 279 1,468 3,068 1,952 1,751 9,516
Trading portfolio
878
liabilities 878 — — — — — — — — —
instruments 730 — — 18 4 2 26 23 11 — 814
Other financial liabilities 60 1,171 16 15 15 81 48 73 34 18 1,531
Total financial liabilities 257,188 11,386 1,868 1,111 1,267 3,588 6,043 13,667 2,994 1,977 301,089
Other liabilities 1,206
Total liabilities 302,295
Cumulative liquidity gap (184,564) (188,289) (187,557) (187,104) (186,484) (184,399) (181,851) (171,087) (142,405) 12,890 17,400

Risk review
Risk performance

Over
three Over six Over nine Over one Over two Over
months months months year years but three Over five
Not more but but but but not not more years but years but
than not more not more not more more than not more not more Over
On three than six than nine than one than three than five than ten ten
Barclays Bank UK Group demand months months months year two years years years years years Total
Assets
central banks 35,218 — — — — — — — — — 35,218
Cash collateral and
4,345
settlement balances 43 4,302 — — — — — — — —
amortised cost 2,707 824 1,727 799 885 4,640 5,273 14,274 35,733 144,787 211,649
Reverse repurchase
value through the
income statement — 37 1 2 6 15 37 147 458 2,729 3,432
instruments 237 — — — — 42 40 227 4 — 550
value through other
comprehensive income — 6,569 1,890 1,242 853 3,406 1,796 4,811 4,459 1,000 26,026
Other financial assets 136 140 29 17 — — — — — — 322
Other assets 5,525
Liabilities
cost 230,920 3,043 2,398 1,409 799 1,555 411 — — — 240,535
Cash collateral and
455
settlement balances 103 352 — — — — — — — —
borrowing — 4,177 — — — — — 3,001 — — 7,178
Debt securities in issue — 1,866 227 97 4 2,281 1,750 — 1,117 161 7,503
Subordinated
Trading liabilities
portfolio — 151 — 1,006 — 453 859 2,367 3,286 1,747 9,869
liabilities 1,265 — — — — — — — — — 1,265
instruments 843 — — — — 13 — 11 13 — 880
Total financial liabilities 233,161 10,699 2,641 2,528 820 4,436 3,077 5,475 4,478 1,929 269,244

Risk review
Risk performance

Over Over Over one
three Over six nine year Over two Over
months months months but not years but three Over five
Not more but but but more not more years but years but
than not more not more not more than than not more not more
On three than six than nine than one two three than five than ten Over ten
Barclays Bank UK PLC demand months months months year years years years years years Total
Assets
central banks 69,488 — — — — — — — — — 69,488
Cash collateral and
settlement balances 58 4,928 — — — — — — — — 4,986
amortised cost 2,516 1,663 2,118 769 1,050 4,390 5,615 20,827 27,668 154,044 220,660
Reverse repurchase
value through the
income statement — 8 — — 8 31 16 161 502 2,041 2,767
instruments 243 22 47 — — 82 145 351 — — 890
value through other
comprehensive income — 1,087 408 796 872 1,172 2,816 3,094 3,509 1,191 14,945
Other financial assets 89 189 35 — — — — — — 2 315
Other assets 5,941
Liabilities
cost 255,968 543 1,396 1,078 826 1,475 — — — — 261,286
Cash collateral and
settlement balances 18 668 — — — — — — — — 686
borrowing — 3,156 — — — — 4,501 10,503 — — 18,160
Debt securities in issue — 5,272 456 — — 1,751 — — 997 208 8,684
Subordinated liabilities
Trading portfolio — 577 — — 422 279 1,468 3,068 1,952 1,750 9,516
liabilities 878 — — — — — — — — — 878
instruments 730 — — 18 3 2 27 23 11 — 814
Total financial liabilities 257,654 11,353 1,868 1,111 1,266 3,588 6,044 13,667 2,994 1,976 301,521

Risk review
Risk performance

Over
three Over six Over nine Over one Over two Over
months months months year years but three Over five
Not more but but but but not not more years but years but
than not more not more not more more than not more not more
On three than six than nine than one than three than five than ten Over ten
Barclays Bank UK PLC demand months months months year two years years years years years Total
Assets
central banks 35,218 — — — — — — — — — 35,218
Cash collateral and
settlement balances 43 4,302 — — — — — — — — 4,345
amortised cost 2,714 1,142 1,728 799 928 4,641 5,275 14,276 35,736 144,794 212,033
Reverse repurchase
similar secured lending – 133 — — — — — — — — 133
value through the
income statement — 38 1 2 6 15 37 147 458 2,728 3,432
instruments 237 — — — — 42 40 227 4 — 550
value through other
comprehensive income — 6,569 1,890 1,242 853 3,406 1,796 4,811 4,459 1,000 26,026
Other financial assets 122 132 60 17 — — — — — — 331
Other assets 5,605
Liabilities
cost 231,477 3,044 2,398 1,409 799 1,555 409 — — — 241,091
Cash collateral and
settlement balances 103 352 — — — — — — — — 455
and other similar
secured borrowing — 4,177 — — — — — 3,001 — — 7,178
Debt securities in issue — 1,866 227 97 4 2,281 1,750 — 1,117 161 7,503
Trading portfolio — 151 — 1,006 — 453 859 2,367 3,286 1,747 9,869
liabilities 1,265 — — — — — — — — — 1,265
instruments 843 — — — — 13 — 11 13 — 880
Other financial liabilities 30 920 16 16 17 134 57 96 62 21 1,369
Total financial liabilities 233,718 10,510 2,641 2,528 820 4,436 3,075 5,475 4,478 1,929 269,610
Expected maturity date may differ from the contractual dates, to account for:
▪ Trading portfolio assets and liabilities and derivative financial instruments, which may not be held to maturity as part of Barclays Bank UK
Group’s trading strategies
▪ Retail and business bank deposits, which are included within deposits at amortised cost, are repayable on demand or at short notice on a
contractual basis. In practice, these instruments form a stable base for Barclays Bank UK Group’s operations and liquidity needs because
of the broad base of customers, both numerically and by depositor type
▪ Loans to retail and business bank 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 contract
▪ Debt securities in issue and subordinated liabilities may include early redemption features
Contractual maturity of financial liabilities on an undiscounted basis
The table below presents the cash flows payable by Barclays Bank UK 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).

Risk review
Risk performance
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)

Over three Over six Over one
months months year Over three Over five
but but but not years but years but
Not more not more not more more than not more not more
On than three than six than one three than five than ten Over ten
demand months months year years years years years Total
Barclays Bank UK Group £m £m £m £m £m £m £m £m £m
Deposits at amortised cost 255,414 543 1,396 1,904 1,476 — — — 260,733
balances 106 668 — — — — — — 774
Repurchase agreements and
other similar secured borrowing — 3,156 — — 4,602 10,885 — — 18,643
Debt securities in issue — 5,301 456 — 1,761 — 1,203 315 9,036
Subordinated liabilities — 579 — 424 1,874 3,434 2,408 2,418 11,137
Trading portfolio liabilities 878 — — — — — — — 878
Derivative financial instruments 730 — — 23 29 25 12 — 819
Other financial liabilities 60 1,174 18 35 147 80 41 31 1,586
Total financial liabilities 257,188 11,421 1,870 2,386 9,889 14,424 3,664 2,764 303,606
Deposits at amortised cost 230,920 3,043 2,398 2,208 1,967 — — — 240,536
balances 103 352 — — — — — — 455
other similar secured borrowing — 4,178 — — — 3,002 — — 7,180
Debt securities in issue — 1,866 227 101 4,121 — 1,372 195 7,882
Subordinated liabilities — 152 — 1,026 1,358 2,659 3,961 2,450 11,606
Trading portfolio liabilities 1,265 — — — — — — — 1,265
Derivative financial instruments 843 — — — 13 11 13 — 880
Total financial liabilities 233,161 10,705 2,645 3,374 7,670 5,782 5,421 2,681 271,439

Risk review
Risk performance
Contractual maturity of financial liabilities - undiscounted (audited)
Over three Over six Over one Over three Over five
months but months but year years but years but
Not more not more not more but not not more not more
On than three than six than one more than than five than ten Over ten
demand months months year three years years years years Total
Barclays Bank UK PLC £m £m £m £m £m £m £m £m £m
As at 31 December
2021
cost 255,968 543 1,396 1,904 1,476 — — — 261,287
Cash collateral and
settlement balances 18 668 — — — — — — 686
and other similar
secured borrowing — 3,156 — — 4,602 10,885 — — 18,643
Debt securities in issue — 5,301 456 — 1,761 — 1,203 315 9,036
Subordinated liabilities — 580 — 424 1,874 3,434 2,408 2,417 11,137
Trading portfolio
liabilities 878 — — — — — — — 878
instruments 730 — — 22 30 25 12 — 819
Total financial
liabilities 257,654 11,388 1,870 2,385 9,890 14,424 3,664 2,763 304,038
As at 31 December
2020
cost 231,477 3,043 2,398 2,208 1,965 — — — 241,091
Cash collateral and
settlement balances 103 352 — — — — — — 455
and other similar
secured borrowing — 4,178 — — — 3,002 — — 7,180
Debt securities in issue — 1,866 227 101 4,121 — 1,372 195 7,882
Subordinated liabilities — 152 — 1,026 1,358 2,659 3,961 2,450 11,606
Trading portfolio
liabilities 1,265 — — — — — — — 1,265
instruments 844 — — — 13 11 13 — 881
Other financial liabilities 30 924 20 39 211 110 75 36 1,445
Total financial
liabilities 233,719 10,515 2,645 3,374 7,668 5,782 5,421 2,681 271,805
Maturity of off-balance sheet commitments received and given (audited)

The maturity split of off-balance sheet commitments received (Guarantees, letters of credit and credit insurance Barclays Bank UK Group
and PLC Dec 2021: £18,355m, Dec 2020: £19,905m), and given (see Note 23 on page 186) represents the undiscounted cash flows (i.e.
nominal values) on the basis of the earliest opportunity at which they are available. All off-balance sheet commitments received and given
for both Barclays Bank UK Group and Barclays Bank UK PLC are on demand.

Risk review
Risk performance
Capital risk
Overview
The disclosures below provide key capital metrics for Barclays Bank UK Group with further information on its risk profile included in the
Barclays Bank UK PLC Pillar 3 Report 2021, due to be published on 23 February 2022 and which will be available at home.barclays/investor-
relations/reports-and-events/annual-reports.
Following the withdrawal of the UK from the EU, any references to CRR as amended by CRR II mean, unless otherwise specified, CRR as
amended by CRR II, as it forms part of UK law pursuant to the European Union (Withdrawal) Act 2018 and subject to the temporary
transitional powers (TTP) available to UK regulators to delay or phase-in on-shoring changes to UK regulatory requirements arising at the
end of the transition period until 31 March 2022, as at the applicable reporting date.
As at As at
31 December 31 December
a,b
Capital ratios 2021 2020
CET1 15.2% 15.6%
Tier 1 (T1) 18.8% 19.2%
Total regulatory capital 23.1% 23.9%
Capital resources (audited) £m £m

CET1 capital 10,828 11,247
T1 capital 13,388 13,807
Total regulatory capital 16,442 17,178
Total risk weighted assets (RWAs) (unaudited) 71,213 72,025
Notes
a Capital and RWAs are calculated applying the IFRS 9 transitional arrangements of the CRR as amended by CRR II.
b The fully loaded CET1 ratio was 14.9%, with £10.6bn of CET1 capital and £71.1bn of RWAs, calculated without applying the transitional arrangements of the
CRR as amended by CRR II.

Risk review
Risk performance
The Barclays Bank UK Group is required to disclose an average UK leverage ratio which is based on capital on the last day of each month in
the quarter and an exposure measure for each day in the quarter. The Barclays Bank UK Group is also required to disclose a UK leverage
ratio based on capital and exposure on the last day of the quarter.
On 8 October 2021, the PRA published its Policy Statement on the UK leverage ratio framework. The Policy Statement confirms that UK
banks will be subject to a single UK leverage ratio requirement meaning that the CRR leverage ratio will no longer apply for UK banks from 1
January 2022. Whilst largely upholding the existing framework, technical changes generally align to the Basel III standards. Minimum
requirements for the Barclays Bank UK Group remain the same.
As at 31 December 2021, the Barclays Bank UK Group average UK leverage ratio was 5.5% which is above the leverage ratio requirement.
As at As at
31 December 31 December
2021 2020
a
Leverage ratios £m £m
Average UK leverage ratio 5.5 % 5.6%
Average T1 Capital 13,640 13,793
Average UK leverage exposure 246,849 245,992
b
UK leverage ratio 5.6 % 5.6%
T1 capital 13,388 13,807
UK leverage exposure 241,173 245,176
Notes
a Capital and leverage are calculated applying the IFRS 9 transitional arrangements of the CRR as amended by CRR II.
b The CET1 capital held against the 0.35% O-SII additional leverage ratio buffer was £0.8bn and against the 0.0% countercyclical leverage ratio buffer was
£0.0bn.

Risk review
Risk performance
Interest rate risk in the banking book
All disclosures in this section (pages 114 to 115]) 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 UK PLC Board Risk Committee as part of
the limit monitoring framework.
NII sensitivity to a -25bps shock to rates has decreased year on year due to reduced margin compression exposure. This is driven by both
actual and future expected central bank rate increases and increased deposit hedging.
Key metrics
-£54m
AEaR across the Barclays Bank UK Group from a -25bps shock to forward interest rate curves.
Analysis of net interest income and equity sensitivity
Equity sensitivity measures the overall impact of a +/- 25bps movement in interest rates on retained earnings, FVOCI, and cash flow hedge
reserves. 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.
NII sensitivity is calculated for non-trading 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 AEaR metric as described on page 200 of the Barclays PLC
2021 Pillar 3 Report (unaudited). Note that this metric assumes an instantaneous parallel change to forward interest rate curves. The model
does not apply floors to shocked market rates, but does recognise contractual product specific interest rate floors where relevant. The main
model assumptions are: (i) one-year ahead time horizon; (ii) balance sheet is held constant; (iii) balances are adjusted for customer
behaviour (i.e. considers that customers may prepay before the contractual maturity or withdraw their deposits) and (iv) behavioural
assumptions are kept unchanged in all rate scenarios.
Analysis of equity sensitivity (audited) 31 December 2021 31 December 2020

+25 basis -25 basis +25 basis -25 basis
points points points points
Barclays Bank UK Group £m £m £m £m
Net interest income (2) (54) 10 (141)
Taxation effects on the above 1 15 (3) 38
Effect on profit for the year (1) (39) 7 (103)
As percentage of net profit after tax (0.1%) (2.1%) 2.0% (27.1%)
Effect on profit for the year (per above) (1) (39) 7 (103)
Fair value through other comprehensive income reserve (29) 29 (20) 20
Cash flow hedge reserve (271) 271 (186) 186
Taxation effects on the above 81 (81) 56 (56)
Effect on equity (220) 180 (143) 47
As percentage of equity (1.3%) 1.0% (0.8%) 0.3%

Risk review
Risk performance
Analysis of equity sensitivity (audited) 31 December 2021 31 December 2020

+25 basis -25 basis +25 basis -25 basis
points points points points
Barclays Bank UK PLC £m £m £m £m
Net interest income (2) (54) 10 (141)
Taxation effects on the above 1 15 (3) 38
Effect on profit for the year (1) (39) 7 (103)
As percentage of net profit after tax (0.1%) (2.1%) 1.9% (26.1%)
Effect on profit for the year (per above) (1) (39) 7 (103)
Cash flow hedge reserve (271) 271 (186) 186
Taxation effects on the above 81 (81) 56 (56)
Effect on equity (220) 180 (143) 47
As percentage of equity (1.3%) 1.0% (0.8%) 0.3%
NII sensitivity asymmetry arises due to the current low level of interest rates as some customer products have embedded floors. NII
sensitivity to a -25bps shock to rates has decreased year on year due to reduced margin compression exposure driven by actual and
expected central bank rate increases and deposit hedging. Movements in the FVOCI reserve impact CET1 capital, however the movement in
the cash flow hedge reserve does not affect CET1 capital.
Volatility of the FVOCI portfolio in the liquidity pool
Changes in value of FVOCI exposures flow directly through equity via the FVOCI reserve. The volatility of 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

2021 2020
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%) 7 10 5 7 9 4
VaR was relatively stable for first three quarters of 2021 then trended upwards in Q4 as the portfolio’s interest rate risk increased.

Risk review
Risk performance
Operational risk
Overview
Operational risks are inherent in the Barclays Bank UK 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 UK Group’s approved risk appetite.
The Operational Risk principal risk comprises the following risks: Data Management Risk; Financial Reporting Risk; Fraud Risk; Information
Security Risk; Operational Resilience Planning Risk; Payments Process Risk; People Risk; Physical Security Risk; Premises Risk; Risk
Reporting; Strategic Investment Change Management Risk; Supplier Risk; Tax Risk; Technology Risk and Transaction Operations Risk. The
operational risk profile is also informed by a number of risk themes: Cyber, Data, and Resilience. These represent threats to the Barclays
Bank UK Group that extend across multiple risk types, and therefore require an integrated risk management approach.
For definitions of these risks refer to page 203 of the Barclays PLC 2021 Pillar 3 Report. In order to provide complete coverage of the
potential adverse impacts on the Barclays Bank UK 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 UK Group’s operational risk profile, including events above the Barclays Bank UK
Group’s reportable threshold, which have had a financial impact in 2021. The Barclays Bank UK 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.

a
During 2021, total operational risk losses remained stable at £103m (2020: £103m) while the number of recorded events for 2021
increased to 2,129 from 1,380 events recorded during the prior year. The total operational risk losses for the year were mainly driven by
events falling within the Execution, Delivery & Process Management and External Fraud categories, which tend to be high volume but low
impact events.
Note
a The data disclosed includes operational risk losses for reportable events impacting the Barclays Bank UK Group business areas, having impact of > £10,000
and excludes 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, prior year losses are updated.
Key metrics
88%
of the Barclays Bank UK Group’s reportable operational risk events had a loss value of £50,000 or less
96%
of events by number are due to External Fraud
Operational risk profile
Within operational risk, there are a large number of smaller value risk events. In 2021, 88% (2020: 82%) of the Barclays Bank UK 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 36% (2020: 22%) of the Barclays Bank UK 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 UK Group.

Risk review
Risk performance
Operational risk
The analysis below presents the Barclays Bank UK Group’s operational risk events by Basel event category:
Note
a The data disclosed includes operational risk losses for reportable events impacting the Barclays Bank UK Group business areas, having impact of > £10,000
and excludes 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, prior year losses are updated.
▪ External Fraud remains the category with the highest frequency of events at 96% of total events in 2021 (2020: 92%) with number of
events increasing to 2,044 (2020: 1,271). Losses increased to £71m accounting for 69% of total losses (2020: £42m / 41%). In this
category, high volume, low value events are driven by transactional fraud often related to debit and credit card usage.
▪ Execution, Delivery and Process Management impacts decreased to £30m (2020: £57m), accounting for 30% of overall operational risk
losses (2020: 55%). 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 volume of events in this category fell year-
on-year to 74 (2020: 88), accounting for 4% of total events (2020: 6%).
Investment continues to be made in improving the control environment across the Barclays Bank UK 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 UK Group continues to work
closely with external partners on various prevention initiatives.
Operational Resilience remains a key area of focus for the Barclays Bank UK Group. The COVID-19 pandemic is the most severe global
health emergency the World Health Organization (WHO) has ever declared. While overall, the Barclays Bank UK Group has continued to
prove resilient and actual losses have not materially increased due to the effects of the pandemic, the COVID-19 pandemic has caused
disruption to the Barclays Bank UK Group’s customers, suppliers, and staff globally. The COVID-19 pandemic has reinforced our focus on
resilience and the Barclays Bank UK Group continues to monitor potential operational disruptions associated with both the Barclays Bank
UK Group’s and its suppliers’ transition to a Work-from-Home environment and in response to initially high market volatility. The Barclays
Bank UK Group continues to strengthen its resilience approach across its most important business services to improve recoverability and
assurance thereof.
Operational risk associated with cybersecurity remains a top focus for the Barclays Bank UK 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 UK Group
and its clients and customers. The Barclays Bank UK 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
Model risk, Conduct risk, Reputation risk, Legal risk
All disclosures in this section (pages 118 and 119) are unaudited unless otherwise stated.
Model risk
Barclays is committed to continuously improving model risk management and made a number of enhancements in 2021, including:
• strengthening the periodic assessment of the design and operating effectiveness of model risk controls to ensure adherence to
model risk framework, policies and standards across the model risk lifecycle;
• enhancing model risk assessment and appetite management with the design of a new Model Risk Uncertainty Assessment to
measure and report model uncertainty, enabling risk-based decision making and remediation prioritisation;
• improving model risk governance through the implementation and embedment of MRM led forums;
• expanding its quality assurance function and its operating model to improve consistency and quality of the challenges raised,
assess the relevance and soundness of the responses received from the model owners, and continue to review the rationale for
decisions made by validators;
• improving model inventory data quality through enhanced platform controls and related processes.
In 2022, MRM will continue to focus on the validation of low materiality models, embedding of validation and governance activities, further
roll-out of Model Risk Uncertainty Assessment across the model population and expanding the coverage of the MRM framework to new/
emerging model types.
Conduct risk
The Barclays Bank UK Group is committed to continuing to drive the right culture throughout all levels of the organisation. The Barclays
Bank UK 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 the management of conduct risk is ongoing and, alongside other
relevant business and control management information, the Barclays Bank UK Group conduct risk dashboards is a key component of this.
The Barclays Bank UK Group continues to review the role and impact of conduct risk events and issues in the remuneration process at both
the individual and business level.
Throughout 2021, the Barclays Bank UK Group maintained focus on the new and heightened Inherent conduct risks created by the
COVID-19 pandemic 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 2021 Medium-
Term Planning Process and associated Strategic Risk Assessment, material conduct risks associated with strategic and financial plans were
assessed.
Throughout 2021, conduct risks were raised by each business area for consideration by the Barclays Bank UK PLC Board Risk Committee.
The Committee reviewed the risks raised and whether management’s proposed actions were appropriate to mitigate the risks effectively.
The Barclays Bank UK Group continued to incur costs in relation to litigation and conduct matters, please refer to Note 24 Legal,
competition and regulatory matters and Note 22 Provisions, for further details. Costs include customer redress and remediation, as well as
fines and settlements. Resolution of these matters remains a necessary and important part of delivering the Barclays Bank UK Group’s
strategy and an ongoing commitment to improve oversight of culture and conduct.
The Barclays Bank UK PLC Board Risk Committee and senior management received conduct dashboards setting out key indicators in
relation to conduct risk. These continue to be evolved and enhanced to allow effective oversight and decision-making. The Barclays Bank
UK Group has operated at the overall set tolerance for conduct risk throughout 2021. The tolerance adherence is assessed by the business
through key indicators and reported to the Barclays Bank UK PLC Board Risk Committee as part of the conduct risk dashboard.
The Barclays Bank UK Group remains focused on the continuous improvements being made to manage risk effectively with an emphasis on
enhancing governance and management information to identify risk at earlier stages.
For further details on the non-financial performance measures, please refer to page 8 of the Strategic Report.
Reputation risk
Barclays Bank UK Group is committed to identifying reputation risks and issues as early as possible and managing them appropriately. At a
Barclays Bank UK Group level throughout 2021, reputation risks and issues were overseen by the Barclays Bank UK Board. The top live and
emerging reputation risks and issues within the Barclays Bank UK Group are included within an over-arching quarterly report at the
respective Board level. The Barclays Bank UK PLC Board reviews reputation risks raised by businesses and considered whether
management’s proposed actions, for example attaching conditions to proposed client transactions or increased engagement with
impacted stakeholders, were appropriate to mitigate the risks effectively. The Board also received regular updates with regard to key
reputation risks and issues, including: Barclays’ response to the COVID-19 pandemic; Barclays’ association with sensitive sectors; access to
banking; lending practices and the resilience of key Barclays systems and processes.
The Barclays Bank UK Group continued to incur costs in relation to litigation and conduct matters, please refer to Note 24 Legal,
competition and regulatory matters and Note 22 Provisions, for further details. Costs include customer redress and remediation, as well as
fines and settlements. Resolution of these matters remains an ongoing commitment to improve oversight of culture and conduct and
management of reputation risks.

Risk review
Risk performance
Model risk, Conduct risk, Reputation risk, Legal risk
As part of Barclays 2021 Medium Term Planning process, material reputation risks associated with strategic and financial plans were also
assessed.
Legal risk
The Barclays Bank UK Group remains committed to continuous improvements in managing legal risk effectively. During 2021,
improvements included a refresh of the Barclays Group-wide legal risk management framework and a review and update of the 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.
Throughout 2021, the Barclays Bank UK Group has operated within set tolerances for legal risk. 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. Minimum mandatory controls to manage legal risks are set out in the legal risk standards and are subject to ongoing
monitoring.

Risk review
Supervision of the Barclays Bank UK Group
The Barclays Bank UK Group’s operations are subject to a large number of rules and regulations that are a condition for authorisation to
conduct banking and financial services business. 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.
The day-to-day regulation and supervision of the Barclays Bank UK 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. The Barclays Bank UK Group is 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 UK PLC is an authorised credit institution and subject to solo prudential regulation and supervision by the PRA and subject to
conduct regulation and supervision by the FCA. The Barclays Group is subject to prudential supervision by the PRA on a group consolidated
basis. Barclays PLC has submitted an application for approval by the PRA as a financial holding company.
The PRA’s supervision of the Barclays Bank UK 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.
Both the PRA and the FCA apply standards that 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 FCA’s supervision of the Barclays Bank UK 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 have assessed the impact of COVID-19 and Brexit on UK financial markets and customers as well as the orderly
transition away from LIBOR.
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.
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 2021, 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, 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, the 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. At its meeting in December 2021 the FPC agreed that it would raise the UK
CCyB rate to 1% with effect from 13 December 2022.
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.
As part of its approach to ring fencing, the FPC established a framework to apply a firm-specific systemic risk buffer (SRB) which could be
set between 0% and 3% of RWAs and which had to be met solely with CET1 capital. The purpose of the SRB was to increase the capacity of

Risk review
ring-fenced bodies, such as Barclays Bank UK PLC, to absorb stress. The buffer rate applicable to the Barclays Bank UK Group was set at 1%
with effect from August 2019. With the implementation of CRD V, the Other Systemically Important Institutions Buffer (O-SII buffer)
replaced the SRB. As part of the implementation of CRD V, the PRA and FPC confirmed that the Barclays Bank UK PLC O-SII buffer would be
held at the historical SRB rate of 1% until reassessment in December 2021. On 8 October 2021, the PRA extended the O-SII buffer rate of
1% for a further year, with any future adjustment to the O-SII buffer applicable from January 2024.
The PRA may also impose a '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.
In July 2021 and October 2021, the PRA, respectively, published a policy statement and a 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. The PRA will consult shortly on 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.
Stress testing
The Barclays Group and certain of its members, including Barclays Bank UK PLC, are subject to supervisory stress testing exercises pursuant
to the annual stress testing programme of the BoE. These exercises are 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 several
stabilisation options, including transferring such institution’s business or securities to a commercial purchaser or a ‘bridge bank’ owned by
the BoE or transferring the institution into temporary public ownership. 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 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 the bank.
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 the Barclays Bank UK 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 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 Barclays Group currently provides the PRA with a recovery plan annually
and with a resolution pack as requested.
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

Risk review
the Barclays Group to the PRA/BoE in 2021 with public disclosures required by both firms and the PRA/BoE in June 2022 (and every two
years thereafter).
TLAC and MREL
The Barclays Group 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, at which time G-SIBs with resolution entities incorporated in the UK will
be 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 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.
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.
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)
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 information related to many derivatives transactions, which have impacts on
the Wealth business. Focus is deepening and becoming increasingly transparent on the environmental and social disclosure requirements
of financial products, in order to enable consumers to make more informed decisions as to the products they invest in. These new
requirements may have an impact on Barclays Bank UK PLC both as an intermediary of financial products and as a product manufacturer.
The EU Benchmarks Regulation applies to the administration, contribution and use of benchmarks within the EU. Financial institutions
within the EU are prohibited from using benchmarks unless their administrators are authorised, registered or otherwise recognised in the
EU, pursuant to the EU and UK Benchmarks Regulation. The FCA has stated that it does not intend to support LIBOR after the end of 2021.
Global regulators in conjunction with the industry have developed alternative benchmarks and risk-free rate fallback arrangements,
including updates to existing, as well as new, applicable legislation.
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 are due to be published by July 2022.
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 publishing a joint discussion paper and the FCA publishing a
consultation paper on this topic in July 2021.
Data protection and PSD2
Most countries where the Barclays 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. 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

Risk review
UK law and hence now referred to as the ‘UK GDPR’ - this sits alongside an amended version of the UK Data Protection Act 2018). The
GDPR has become the global touchstone as countries around the world either usher in or contemplate similar data privacy laws, or align
their existing legislation. In 2020, the European Court of Justice (CJEU) invalidated the EU-US Privacy Shield as a mechanism for transferring
EU personal data to the US and placed additional requirements on the use of standard contractual clauses (SCCs) for transfers of personal
information to third countries. In 2021, the European Commission published new SCCs to meet the requirements of GDPR and the CJEU
decision, known as Schrems II. Implementing the new SCCs, which involve case-by-case transfer impact assessments and other
safeguards, is likely to result in increased compliance costs for the Group. During 2020 and 2021 new privacy laws were passed in
Switzerland, took effect in Brazil, Mainland China and Dubai, and were proposed in India. Noncompliance with any of these requirements
could lead to regulatory fines and other penalties.
From 14 September 2019, new rules apply under the revised Payment Services Directive (PSD2) that affect the way banks and other
payment services providers check that the person requesting access to an account or trying to make a payment is permitted to do so. This
is referred to as strong customer authentication (SCA). The deadline for implementing SCA for e-commerce has been extended by the FCA,
most recently in May 2021 when the deadline was extended to 14 March 2022.
Cyber security and operational resilience
Our regulators continue to focus on cyber security risk management, organisational operational resilience and overall soundness across all
financial services firms, with customer and market expectations of continuous 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 during the COVID-19 pandemic. This is evidenced by the continuing publication of a number of proposed laws
and changes to regulatory frameworks globally. For example, in the UK a new framework for operational resilience focused on the
identification of, and setting impact tolerances for, important business services came into effect in March 2021. In March 2022, the
European Union’s Digital Operational Resilience Act (DORA) is expected to introduce comprehensive and sector specific regulation on ICT
incident reporting, testing and third party risk management, and provide for direct oversight of critical third party ICT providers servicing
the EU financial services sector. However, such measures are likely to result in increased technology and compliance costs for the Barclays
Bank UK Group.
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. In practice, the legislation requires the Barclays Bank UK Group to have adequate procedures to prevent bribery which, due to the
extraterritorial nature of the statute, makes this both complex and costly.
The Criminal Finances Act 2017 introduced new corporate criminal offences of failing to prevent the facilitation of UK and overseas tax
evasion. It requires the Barclays Bank UK Group to have reasonable prevention procedures in place to prevent the criminal facilitation of tax
evasion by persons acting for, or on behalf of, any entity in the Barclays Bank UK Group.
In May 2018, the Sanctions and Anti-Money Laundering Act (the Sanctions Act) became law in the UK. 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. Those 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.
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. Failure of a financial institution to ensure compliance with
such laws could have serious legal, financial and reputational consequences for the institution.

Financial statements
Contents
Detailed analysis of our statutory accounts, independently audited and providing in-depth disclosure on the financial performance of
the Barclays Bank UK Group.
Page Note
Consolidated financial statements
▪ Independent Auditor’s report 125 n/a
▪ Consolidated income statement 134 n/a
▪ Consolidated statement of comprehensive income 135 n/a
▪ Consolidated balance sheet 136 n/a
▪ Consolidated statement of changes in equity 137 n/a
▪ Consolidated cash flow statement 138 n/a
▪ Parent company accounts 139 n/a
Notes to the financial statements
▪ Significant accounting policies 142 1
Financial performance/return ▪ Segmental reporting 148 2
▪ Net interest income 149 3
▪ Net fee and commission income 150 4
▪ Net trading income 151 5
▪ Net investment income 151 6
▪ Credit impairment charges 152 7
▪ Operating expenses 157 8
▪ Tax 157 9
▪ Dividends on ordinary shares 159 10
Assets and liabilities held at fair ▪ Trading portfolio 160 11
value ▪ Financial assets at fair value through the income statement 160 12
▪ Derivative financial instruments 161 13
▪ Financial assets at fair value through other comprehensive
income 169 14
▪ Fair value of financial instruments 169 15
▪ Offsetting financial assets and financial liabilities 174 16
Assets held at amortised cost ▪ Loans and advances and deposits at amortised cost 177 17
and other investments ▪ Property, plant and equipment 178 18
▪ Leases 179 19
• Goodwill and intangible assets 181 20
Accruals, provisions, contingent ▪ Other liabilities 184 21
liabilities and legal proceedings ▪ Provisions 184 22
▪ Contingent liabilities and commitments 186 23
▪ Legal, competition and regulatory matters 186 24
Capital instruments, equity and ▪ Subordinated liabilities 188 25
reserves ▪ Ordinary shares, share premium and other equity 189 26
▪ Reserves 190 27
Employee benefits ▪ Staff costs 191 28
▪ Share-based payments 192 29
Scope of consolidation ▪ Structured entities 194 30
▪ Securitisations 195 31
▪ Assets pledged, collateral received and assets transferred 196 32
Other disclosure matters ▪ Related party transactions and Directors’ remuneration 197 33
▪ Auditor’s remuneration 200 34
▪ Interest rate benchmark reform 200 35
▪ Barclays Bank UK PLC (the parent company) 204 36
▪ Related undertakings 204 37

Independent Auditor’s report
Independent Auditor’s report to the members of Barclays Bank UK PLC
1 Our opinion is unmodified
We have audited the financial statements of Barclays Bank UK PLC (“the Parent company”) for the year ended 31 December 2021 which
comprise the consolidated and Parent company balance sheets as at 31 December 2021, and the consolidated income statement and
statement of comprehensive income, the consolidated and Parent company statements of changes in equity and cash flow statements for
the year then ended, including the accounting policies in note 1.
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the Parent company’s affairs as at
31 December 2021 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 and as applied in accordance with the provisions of the Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
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 is consistent with our report to the audit committee.
We were first appointed as auditor by the directors on 21 March 2018 for the audit of the financial year ended 31 December 2017. The
period of total uninterrupted engagement is for the five financial years ended 31 December 2021. 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. No non-audit services prohibited by that standard were provided.
2 Key audit matters: our assessment of risks of material misstatement
Key audit matters are those matters that, in our professional judgement, 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 summarise below the key audit matters, in decreasing order of audit significance, in arriving at our audit opinion
above, together with our key audit procedures to address those matters and, as required for public interest entities, our results from those
procedures.
In the prior year, we reported a key audit matter in respect of the recoverability of goodwill. As a result of reduced uncertainty due to the
improved economic outlook, the Bank’s better performance during the year and the resultant increased headroom in the assessment of
recoverability of goodwill, we no longer consider this a key audit matter.
These matters were addressed, and our results are based on procedures undertaken, in the context of, and solely for the purpose of, our
audit of the financial statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion, and we
do not provide a separate opinion on these matters.

Key audit matter Our response to the risk

Impairment Subjective estimate Our procedures to address the risk included:
allowances on Risk vs 2020: ◄►
loans and advances Controls testing: We performed end to end process
at amortised cost, walkthroughs to identify the key systems, applications
including off- Our assessment is the risk is similar to 2020. While the
and controls used in the ECL processes. We tested the
balance sheet macroeconomic environment has improved during the
relevant manual, general IT and applications controls
elements year, significant uncertainty remains.
over key systems used in the ECL process.
31 December 2021 The estimation of expected credit losses (“ECL”) on Key aspects of our controls testing involved evaluating
£2.2bn, financial instruments involves significant judgement and
31 December the design and testing the operating effectiveness of the
2020 £3.4bn estimates. The key areas where we identified greater key controls over the:
levels of management judgement and therefore
See page 152 for increased levels of audit focus in the Group and Parent • completeness and accuracy of the key inputs
the accounting company estimation of ECLs are: into the IFRS 9 impairment models;
policy on
accounting for the
▪ Model estimations – Inherently judgemental • application of the staging criteria;
impairment of
financial assets modelling and assumptions are used to estimate ECL
under IFRS 9, page which involves determining Probabilities of Default • model validation, implementation and
59 for the credit risk (“PD”), Probabilities of Survival (“PS”), Loss Given monitoring;
disclosures, and Default (“LGD”) and Exposures at Default (“EAD”). ECLs
page 152 for the may be inappropriate if certain models or underlying • authorisation and calculation of post model
financial disclosure assumptions do not accurately predict defaults or adjustments and management overlays; and
note 7; Credit recoveries over time, become out of line with wider
Impairment charges industry experience, or fail to reflect the credit risk of • selection and implementation of economic
and other financial assets. As a result, certain IFRS 9 models and variables and the controls over the economic
provisions. model assumptions are the key drivers of complexity scenario selection and probabilities.
and subjectivity in the Group’s and Parent company’s
Our credit risk modelling expertise: We involved our
calculation of the ECL estimate.
own credit risk modelling specialists in the following:
▪ Economic scenarios – IFRS 9 requires the • evaluating the Group’s impairment

Group and Parent company to measure ECLs on an methodologies for compliance with IFRS 9;
unbiased forward-looking basis reflecting a range of
future economic conditions. Significant management • inspecting model code for the calculation of
judgement is applied in determining the forward-looking certain components of the ECL model to
economic scenarios used, the probability weightings assess its consistency with the Group’s
associated with the scenarios and the complexity of the approved staging criteria and the output of the
models used to derive the probability weightings. model;
▪ Qualitative adjustments – Adjustments to the • evaluating for a selection of models which

model-driven ECL results are raised by management to were changed or updated during the year as to
address known impairment model limitations or whether the changes (including the updated
emerging trends as well as risks not captured by model code) were appropriate by assessing the
models. They represent approximately 14% net of the updated model methodology against the
ECL. These adjustments are inherently uncertain and applicable accounting standard;
significant management judgement is involved in
estimating certain post model adjustments (“PMA’s”) • evaluating the model output for a selection of
and management overlays. models by inspecting the corresponding model
functionality and independently implementing
the model by rebuilding the model code and
▪ The effect of these matters is that, as part of
comparing our independent output with
our risk assessment, we determined that the impairment
management's output;
of loans and advances to customers including off
balance sheet elements has a high degree of estimation
• assessing and reperforming, for a selection of
uncertainty, with a potential range of reasonable
models, the reasonableness of the model
outcomes greater than our materiality for the financial
predictions by comparing them against actual
statements as a whole, and possibly many times that
results and evaluating the resulting differences;
amount. The credit risk sections of the financial
and
statements (page 79-82) disclose the sensitivities
estimated by the Group and Parent company.
• reperforming the calculation of certain
qualitative adjustments to assess consistency
Disclosure quality with the qualitative adjustment methodologies.
The disclosures regarding the Group’s and Parent
company’s application of IFRS 9 are key to explaining
the key judgements and material inputs to the IFRS 9
ECL results.

Our economic expertise: We involved our own economic

specialists to assist us in:
• assessing the reasonableness of the Group's

and Parent company’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's
and Parent company’s forecasts to our own
modelled forecasts; and
• assessing the reasonableness of the Group's

and Parent company’s qualitative adjustments
by challenging key economic assumptions
applied in their calculation based on external
sources.
Test of details: Key aspects of our testing in addition to

those set out above involved:
• Sample testing key inputs into the ECL

calculations; and
• 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.
Assessing transparency: We assessed whether the

disclosures appropriately disclose and address the
uncertainty which exists when determining the ECL. As a
part of this, we assessed the sensitivity analysis
disclosure. In addition, we assessed whether the
disclosures of the key judgements and assumptions
made were sufficiently clear.
Our results: The results of our testing were satisfactory

and we considered the impairment allowance and the
related disclosures to be acceptable (2020 result:
acceptable).

Valuation of Subjective valuation Our procedures to address the risk included:

financial
instruments held at Risk vs 2020: ◄► Control testing: We attended management’s valuation
fair value committee throughout the year and observed discussion
Our assessment is the risk is similar to 2020. and challenge over valuation themes including items
31 December 2021 related to the valuation of certain difficult-to-value
£2.7bn, 31 financial instruments recorded at fair value. We tested the
The fair value of the Group’s and Parent company’s
December 2020 design and operating effectiveness of key controls
financial instruments is determined through the
£3.3bn relating specifically to these portfolios. These included
application of valuation techniques which can involve
controls over:
the exercise of significant judgement by management in
Refer to page 144 relation to the choice of the valuation models, pricing
(accounting policy inputs and post-model pricing adjustments, including • independent price verification (“IPV”),
on accounting for fair value adjustments (“FVAs”) and credit and funding performed by a control function, of key market
financial assets and adjustments (together referred to as “XVAs”). pricing inputs, including completeness of
liabilities) and page positions and valuation inputs subject to the
170 (financial IPV process.
Where significant pricing inputs are unobservable,
disclosure note 15
management has no reliable, relevant market data
Fair value of • controls over FVAs and XVAs; and
available in determining the fair value and hence
financial
estimation uncertainty can be high, which is particularly
instruments)
relevant to the Education, Social Housing and Local • the validation, completeness, implementation
Authority (“ESHLA”) Level 3 loan portfolio. These and usage of valuation models. This included
financial instruments are classified as Level 3, with controls over assessment of model limitations
management having controls in place over the boundary and assumptions.
between Level 2 and 3 positions. As at 31 December
2021 the Group and Parent company have outstanding Our valuations expertise:
ESHLA loans which require significant judgement in the We involved our own valuations specialists in the
valuation due to the long dated nature of the portfolio, following:
the lack of a secondary market in the relevant loans and
unobservable loan spreads. • Independently re-pricing a selection of trades,
including additional selections for financial
As the Group and Parent company progressed with instrument referencing new RFRs and
industry-wide IBOR transition milestones, there were challenging management on the valuations
certain difficult-to-value financial instruments that where they were outside our tolerance.
changed from referencing IBOR to new risk-free
reference (RFR) rates. We supplemented our fair value • Challenging the appropriateness of significant
approach audit procedures for these instruments by models and methodologies used in calculating
testing management’s additional controls associated fair values, risk exposures and in calculating
with IBOR transition risks and by testing additional FVAs, including comparison to industry
samples in developing an independent estimate of the practice.
valuation.
Inspection of movements: We inspected movements in
At 31 December 2021, Level 3 instruments (£2.7bn) unobservable inputs throughout the period to assess
represented 14% of the Group’s and Parent company’s whether gains or losses generated were in line with the
financial instrument assets carried at fair value. accounting standards.
Disclosure quality Historical comparison: We performed a retrospective

review by inspecting significant gains and losses on a
The IFRS 13 fair value measurement disclosures are key selection of trade exits or restructurings and evaluated
to explaining the valuation techniques, key judgements, whether these data points indicated elements of fair
assumptions and material inputs. value not incorporated in the current valuation
methodologies.
Assessing transparency: We assessed the adequacy of

the Group’s and Parent company’s disclosures in the
context of the relevant accounting standards.
Our results: The results of our testing were satisfactory

and we considered the fair value of Level 3 financial
assets recognised to be acceptable (2020 result:
acceptable).

User access Control performance Our procedures to address the risk included:
management
Risk vs 2020: ◄► Control testing: We tested the design, implementation
and operating effectiveness of automated controls that
Our assessment is the risk is similar to 2020. support material balances in the financial statements. We
also tested the operating effectiveness of the relevant
preventative and detective general IT controls over user
The Group and Parent company’s IT operations support
access management including:
a wide range of products and services, resulting in a
large and complex IT infrastructure relevant to the
financial reporting processes and related internal • Authorising access rights for new joiners;
controls.
• Timely removal of user access rights;
User access management controls are an integral part of
the IT environment to ensure both system access and • Logging and monitoring of user activities;
changes made to system access and changes made to
systems and data are authorised and appropriate. Our • Privileged user access management and
audit approach relies on the effectiveness of IT access monitoring;
management controls.
• Developer accesses to transactions and
Our audit procedures identified control deficiencies in balance information;
certain IT access controls for systems relevant to
financial reporting. More specifically, control deficiencies
• Segregation of duties; and
were identified around monitoring of activities
performed by privileged users on a small percentage of
infrastructure components. Management has ongoing • Re-certification of user access rights.
programmes to remediate the deficiencies. Since these
deficiencies were open during the year, we performed We performed procedures to assess whether additional
additional procedures to respond to the risk of detective compensating controls operate at the same
unauthorised changes to automated controls over level of precision to support our assessed risk of
financial reporting. unauthorised activities and tested management’s
incremental detective control.
Our results: Our testing did not identify unauthorised

user activities in the systems relevant to financial
reporting which would have required us to expand the
extent of our testing.
3 Our application of materiality and an overview of the scope of our audit
Materiality for the Group and Parent company financial statements as a whole was set at £72 million (2020: £75 million) and £70 million
(2020: £70 million) respectively, determined with reference to a benchmark of profit before tax from continuing operations (of which it
represents 5.0% (2020: 4.9%) for the Group and 4.8% (2020: 4.6%) for the Parent company), normalised downwards for 2021 by £1
billion to adjust for the impact of ECL releases during the current year following a reduction in the COVID-19 related economic uncertainty.
In the prior year materiality was determined by normalising the benchmark upwards by £0.6 billion to exclude the incremental charge
related to post model adjustments made to the ECL charge to reflect COVID-19 related economic uncertainty.
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 for the Group and Parent company was set at 75% (2020: 75%) of materiality for the financial statements as a
whole, which equates to £54 million (2020: £56 million) for the Group and £52.5 million (2020: £52.5 million) for the Parent company. We
applied this percentage in our determination of performance materiality because we did not identify any factors indicating an elevated level
of risk.
We agreed to report to the Audit Committee any corrected or uncorrected identified misstatements exceeding £3.5 million (2020: £3.5m),
in addition to other identified misstatements that warranted reporting on qualitative grounds.

Group materiality
Normalised profit before tax from continuing operations

£1,450m* (2020: £1,521m**)
£72m
Whole financial statements materiality (2020:
£75m)
£54m
Whole financial statements performance
materiality (2020: £56m)
£3.5m
Misstatements reported to the Audit
Committee (2020: £3.5m)
■ Normalised profit before tax from continuing

operations
■ Group materiality
* normalised by adjusting for the impact of ECL releases during the current year following a reduction in the COVID-19 related
economic uncertainty
**normalised the benchmark excluding the incremental charge related to post model adjustments made to the ECL charge to reflect
COVID-19 related economic uncertainty
Scope – general
We were able to rely upon the Group’s internal control over financial reporting in all areas of our audit, where our controls testing
supported this approach, which enabled us to reduce the extent of our substantive audit work.
The Group engagement team performed the audit of the Group as it if was a single aggregated set of financial information, using the
materiality levels set out above.
The Group has certain centralised processes in India, the outputs of which are also included in the aggregated set of financial information.
These services are subject to specified audit procedures, predominantly the testing of transaction processing and controls. We evaluated
the work which the participating auditor performed in these areas. We also communicated with the participating audit team throughout
the audit by holding regular meetings.
4 Going concern
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Group or the Parent
company or to cease their operations, and as they have concluded that the Group’s and the Parent company’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”).
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 or recession.
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.
Our conclusions based on this work:
• we consider that the directors’ use of the going concern basis of accounting in the preparation of the 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; and
• we found the going concern disclosure in note 1 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.
5 Fraud and breaches of laws and regulations – ability to detect
Identifying and responding to risks of material misstatement due to fraud
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 and Parent company Head of Risk, Group and Parent company Head of
Compliance and Group and Parent company Head of Legal and inspection of Barclays’ internal ethics and compliance reporting
summaries, including those concerning investigations;
• Enquiries of operational managers, internal audit, and the Board Audit Committee, and inspection of policy documentation as to
the Group’s and Parent company’s 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 and Parent company’s remuneration policies, 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 own forensic specialists to assist us in identifying fraud risks based on discussions of the circumstances of the Group and
Parent company, including consideration of fraudulent schemes that had arisen in similar sectors and industries. The forensic
specialists participated in the initial fraud risk assessment discussion and were consulted throughout the audit where further
guidance was deemed necessary.
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.
As required by auditing standards and taking into account our overall knowledge of the control environment, we perform procedures to
address the risk of management override of controls and the risk of fraudulent revenue recognition, which we isolate to certain
assumptions used in the calculation of the Effective Interest Rate on the mortgages portfolio, and the risk that management may be in a
position to make inappropriate accounting entries and the risk of bias in accounting estimates and judgments.
We also identified a fraud risk related to the qualitative adjustments to the model-driven ECL results given these adjustments are inherently
uncertain and significant management judgement is involved in estimating these amounts and the valuation of level 3 ESHLA loans held at
fair value given there is significant management judgement around the valuation. Further detail in respect of these is set out in the key
audit matters in section 2 of this report.
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.
Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from:
• our general commercial and sector experience;

• discussion with the directors and other management (as required by auditing standards);
• inspection of the Group’s and Parent company’s regulatory and legal correspondence;
• inspection of the policies and procedures regarding compliance with laws and regulations;
• relevant discussions with the Group’s and Parent company’s external legal counsel; and

• relevant discussions with the Group’s and Parent company’s key regulatory supervisors including the Prudential Regulation
Authority and Financial Conduct Authority.
As the Group and Parent company operates in a highly regulated environment, our assessment of risks of material misstatement also
considered the control environment, including the Group and Parent company’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.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance
throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Group and Parent company 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.
Secondly, the Group and Parent company 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. We
identified the following areas as those most likely to have such an effect:
• Specific aspects of regulatory capital and liquidity

• 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 and Parent company’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.
In relation to the legal, competition and regulatory matters disclosed in note 24 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 our procedures included inspection of regulatory correspondence, independent
enquiry of the Group’s and Parent company’s main regulators and performing audit procedures to respond to risks of material
misstatement identified in recognised conduct provisions.
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 We have nothing to report on the 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 thereon or, except as
explicitly stated below, any form of assurance conclusion thereon.
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. Based solely on that work
we have not identified material misstatements in the other information.

Strategic report and Directors’ report
Based solely on our work on the other information:

• we have not identified material misstatements in the Strategic report and the Directors’ report;
• in our opinion the information given in those reports 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.
7 We have nothing to report on the other matters on which we are required to report by exception
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.
We have nothing to report in these respects.
8 Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 30, 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.
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 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 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.
9 The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the Parent company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the Parent company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Parent company and the Parent company’s members, as a body, for our audit work, for this report,
or for the opinions we have formed.
Michael McGarry (Senior Statutory Auditor)

for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square
London
E14 5GL
22 February 2022

Consolidated income statement
2021 2020
For the year ended 31 December Notes £m £m
Interest and similar income 3 5,775 6,201
Interest and similar expense 3 (769) (1,021)
Net interest income 5,006 5,180
Fee and commission income 4 1,466 1,375
Fee and commission expense 4 (219) (310)
Net fee and commission income 1,247 1,065
Net trading income 5 40 53
Net investment income 6 181 106
Other income 8 20
Total income 6,482 6,424
Credit impairment releases/(charges) 7 371 (1,427)
Net operating income 6,853 4,997
Staff costs 28 (1,392) (1,311)
Infrastructure costs 8 (389) (444)
Administration and general expenses 8 (2,859) (2,848)
Provisions for litigation and conduct 22 (51) (43)
Operating expenses 8 (4,691) (4,646)
Profit on disposal of subsidiaries, associates and joint ventures 1 16

Taxation 9 (294) 12
Attributable to:
Equity holders of the parent 1,696 199
Other equity instrument holders 173 180
Note
As permitted by section 408(3) of the Companies Act 2006 an income statement for the parent company has not been presented.

Consolidated statement of comprehensive income
2021 2020
For the year ended 31 December £m £m
Other comprehensive (loss)/income that may be recycled to profit or loss:
Fair value through other comprehensive income reserve movement relating to debt securities
Net (losses)/gains from changes in fair value (286) 499
Net gains/(losses) due to fair value hedging 250 (361)
Net (gains) transferred to net profit on disposal (57) (43)
Net (gains)/losses relating to (releases of) impairment (2) 2
Tax 28 (25)
Cash flow hedging reserve
Net (losses)/gains from changes in fair value (444) 414
Net (gains) transferred to net profit (667) (111)
Tax 339 (85)
Other — 1
Other comprehensive (loss)/income that may be recycled to profit or loss (839) 291
Other comprehensive income not recycled to profit or loss: — —
Other comprehensive (loss)/income for the year (839) 291
Total comprehensive income for the year 1,030 670

Consolidated balance sheet
2021 2020
As at 31 December Notes £m £m
Assets
Cash collateral and settlement balances 5,067 4,345
Loans and advances at amortised cost 17 220,271 211,649
Reverse repurchase agreements and other similar secured lending 65 133
Trading portfolio assets 11 169 298
Financial assets at fair value through the income statement 12 2,767 3,432
Derivative financial instruments 13 890 550
Financial assets at fair value through other comprehensive income 14 14,945 26,026
Goodwill and intangible assets 20 3,526 3,527
Property, plant and equipment 18 562 737
Current tax assets — 75
Deferred tax assets 9 1,368 780
Other assets 577 728
Total assets 319,695 287,498
Liabilities
Deposits at amortised cost 17 260,732 240,535
Cash collateral and settlement balances 774 455
Repurchase agreements and other similar secured borrowing 18,160 7,178
Debt securities in issue 8,684 7,503
Subordinated liabilities 25 9,516 9,869
Trading portfolio liabilities 11 878 1,265
Current tax liabilities 377 —
Other liabilities 21 1,824 1,906
Provisions 22 536 880
Total liabilities 302,295 270,471
Equity
Called up share capital and share premium 26 5 5
Other equity instruments 26 2,560 2,560
Other reserves 27 (366) 473
Retained earnings 15,201 13,989
Total equity 17,400 17,027
Total liabilities and equity 319,695 287,498
The Board of Directors approved the financial statements on pages 134 to 205 on 22 February 2022.
Crawford Gillies
Chair
Matt Hammerstein
Chief Executive
James Mack

Consolidated statement of changes in equity
Called up
share
capital Other
and share equity Other Retained
a a b
premium instruments reserves earnings Total equity
£m £m £m £m £m
Balance as at 1 January 2021 5 2,560 473 13,989 17,027
Profit after tax — 173 — 1,696 1,869
Financial assets at fair value through other comprehensive
— — (67) — (67)
income
Cash flow hedges — — (772) — (772)
Other — — — — —
Total comprehensive income for the year — 173 (839) 1,696 1,030
Employee share schemes — — — 37 37
Other equity instruments coupons paid — (173) — — (173)
Vesting of employee share schemes — — — (11) (11)
Dividends paid — — — (510) (510)
Capital contribution from Barclays PLC — — — — —
Other reserve movements — — — — —
Balance as at 31 December 2021 5 2,560 (366) 15,201 17,400

Profit after tax — 180 — 199 379
income — — 72 — 72
Cash flow hedges — — 218 — 218
Other — — — 1 1
Total comprehensive income for the year — 180 290 200 670
Employee share schemes — — — 31 31
Capital contribution from Barclays PLC — — — 220 220
Other reserve movements — — — 5 5
Balance as at 31 December 2020 5 2,560 473 13,989 17,027
Notes
a For further details, refer to Note 26.
b For further details, refer to Note 27.

Consolidated cash flow statement
a
2021 2020
For the year ended 31 December Note £m £m
Reconciliation of profit before tax to net cash flows from operating activities:
Adjustment for non-cash items:
Credit impairment charges (371) 1,427
Depreciation, amortisation and impairment of property, plant, equipment and intangibles 169 175
Other provisions 25 427
Other non-cash movements (480) (1,217)
Changes in operating assets and liabilities
Loans and advances at amortised cost (4,591) (10,927)
Repurchase and reverse repurchase agreements 11,050 (4,614)
Debt securities in issue 1,181 (768)
Derivative financial instruments (406) (218)
Trading assets and liabilities (258) 123
Financial assets and liabilities at fair value through the income statement 665 139
Other assets and liabilities (299) (821)
Corporate income tax paid (53) (597)
Net cash from operating activities 29,314 18,562
Financial assets at fair value through other comprehensive income 10,125 (5,557)
Property, plant and equipment and intangibles — (17)
Debt securities at amortised cost (3,695) (4,586)
Net cash from investing activities 6,430 (10,160)
Dividends paid and coupon payments on other equity instruments (683) (400)
Capital contribution from Barclays PLC — 220
Issuance of subordinated debt 25 1,025 3,694
Redemption of subordinated debt 25 (1,116) (1,425)
Vesting of employee share schemes (11) (12)
Net cash from financing activities (785) 2,077
Effect of exchange rates on cash and cash equivalents — 428
Net increase in cash and cash equivalents 34,959 10,907
Cash and cash equivalents at beginning of year 38,417 27,510
Cash and cash equivalents at end of year 73,376 38,417
Cash and cash equivalents comprise:
Loans and advances to banks with original maturity less than three months 46 81
Cash collateral at central banks 3,842 3,118
Total 73,376 38,417
Notes
a 2020 comparative figures have been restated to make the cash flow statement more relevant following a review of the disclosure and the accounting policies
applied. Movements in cash and cash equivalents relating to debt securities at amortised cost were previously shown within loans and advances at
amortised cost in operating activities. These debt securities holdings are now considered to be part of the investing activity performed by the Barclays Bank
UK Group and have been presented within investing activities in 2021. Comparatives have been restated. The effect of this change was to reclassify £4,586m
of net cash outflows from operating activities to investing activities in 2020.
Interest received by Barclays Bank UK Group was £5,784m (2020: £6,201m) and interest paid by Barclays Bank UK Group was £769m
(2020: £1,021m). These amounts include interest paid and received arising from trading activities.
As at 31 December 2021, the Barclays Bank UK Group was required to maintain balances with central banks in respect of interbank
payment schemes of £847m (2020: £458m).

Financial statements of Barclays Bank UK PLC
Parent company accounts
Balance sheet
2021 2020
As at 31 December Notes £m £m
Assets
Reverse repurchase agreements and other similar secured lending 65 133
Trading portfolio assets 11 169 298
Financial assets at fair value through the income statement 12 2,767 3,432
Financial assets at fair value through other comprehensive income 14 14,945 26,026
Investment in subsidiaries 36 432 441
Goodwill and intangible assets 20 3,378 3,379
Property, plant and equipment 18 562 737
Current tax assets — 77
Deferred tax assets 9 1,368 780
Other assets 516 522
Total assets 320,226 287,971
Liabilities
Deposits at amortised cost 17 261,286 241,091
Repurchase agreements and other similar secured borrowing 18,160 7,178
Debt securities in issue 8,684 7,503
Subordinated liabilities 25 9,516 9,869
Trading portfolio liabilities 11 878 1,265
Current tax liabilities 368 —
Other liabilities 21 1,775 1,700
Provisions 22 519 857
Equity
Called up share capital and share premium 26 5 5
Other equity instruments 26 2,560 2,560
Other reserves 27 (265) 575
a
Retained earnings 15,240 14,033
Total equity 17,540 17,173
Total liabilities and equity 320,226 287,971
Note
a As permitted by section 408(3) of the Companies Act 2006 an income statement for the parent company has not been presented. Included in shareholders’
equity for the Bank is a profit after tax for the year ended 31 December 2021 of £1,863m (2020: £393m).
The Board of Directors approved the financial statements on pages 139 to 141 on 22 February 2022.
Crawford Gillies
Chair
Matthew Hammerstein
Chief Executive
James Mack

Statement of changes in equity
Called up share
capital and
share Other equity Retained
a a b
premium instruments Other reserves earnings Total equity
£m £m £m £m £m
Profit after tax — 173 — 1,690 1,863
comprehensive income — — (68) — (68)
Cash flow hedges — — (772) — (772)
Other — — — — —
Total comprehensive income for the year — 173 (840) 1,690 1,023
Equity settled share schemes — — — 37 37
Capital contribution from Barclays PLC — — — — —
Other movements — — — 1 1
Balance as at 31 December 2021 5 2,560 (265) 15,240 17,540

Profit after tax — 180 — 213 393
comprehensive income — — 72 — 72
Cash flow hedges — — 218 — 218
Other — — — 1 1
Total comprehensive income for the year — 180 290 214 684
Issue and exchange of other equity instruments — — — — —
Equity settled share schemes — — — 31 31
Capital contribution from Barclays PLC — — — 220 220
Other movements — — — 4 4
Balance as at 31 December 2020 5 2,560 575 14,033 17,173
Notes
a For further details, refer to Note 26.
b For further details, refer to Note 27.

Cash flow statement

a
2021 2020
For the year ended 31 December 2021 £m £m
Reconciliation of profit before tax to net cash flows from operating activities:
Adjustment for non-cash items:
Credit impairment charges (369) 1,421
Depreciation, amortisation and impairment of property, plant, equipment and intangibles 169 175
Other provisions 12 406
Other non-cash movements (470) (1,202)
Changes in operating assets and liabilities
Loans and advances at amortised cost (4,915) (10,924)
Reverse repurchase agreements and other similar lending 11,050 (4,614)
Debt securities in issue 1,181 (275)
Derivative financial instruments (406) (217)
Trading assets and liabilities (258) 123
Financial assets and liabilities at fair value 665 139
Other assets and liabilities (268) (819)
Corporate income tax paid (60) (592)
Net cash from operating activities 28,997 18,556
Financial assets at fair value through other comprehensive income 10,125 (5,557)
Property, plant and equipment and intangibles — (21)
Debt securities at amortised cost (3,695) (4,586)
Net cash from investing activities 6,430 (10,164)
Dividends paid and other coupon payments on equity instruments (683) (400)
Capital contribution from Barclays PLC — 220
Issuance of subordinated debt 1,025 3,694
Redemption of subordinated debt (1,116) (1,425)
Vesting of employee share schemes (11) (12)
Net cash from financing activities (785) 2,077
Effect of exchange rates on cash and cash equivalents — 428
Net increase in cash and cash equivalents 34,642 10,897
Cash and cash equivalents at beginning of year 38,734 27,837
Cash and cash equivalents at end of year 73,376 38,734
Cash and cash equivalents comprise:
Loans and advances to banks with original maturity less than three months 46 398
Cash collateral at central banks 3,842 3,118
73,376 38,734
Notes
a 2020 comparative figures have been restated to make the cash flow statement more relevant following a review of the disclosure and the accounting policies
applied. Movements in cash and cash equivalents relating to debt securities at amortised cost were previously shown within loans and advances to banks
and customers in operating activities. These debt securities holdings are now considered to be part of the investing activity performed by Barclays Bank UK
PLC following a change in accounting policy and have been presented within investing activities in 2021. Comparatives have been restated. The effect of this
change was to reclassify £4,586m of net cash outflows from operating activities to investing activities in 2020.
Interest received by Barclays Bank UK PLC was £5,780m (2020: £6,006m) and interest paid by Barclays Bank UK PLC was £769m (2020:
£830m). Dividends received were £13m (2020: £15m). These amounts include interest paid and received arising from trading activities.
As at 31 December 2021, Barclays Bank UK PLC was required to maintain balances with central banks in respect of interbank payment
schemes of £847m (2020:£458m).

For the year ended 31 December 2021
This section describes Barclays Bank UK 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 UK PLC is a public company limited by shares, registered in England under company number 9740322, having its registered
office at 1 Churchill Place, London, E14 5HP.
These financial statements are prepared for Barclays Bank UK PLC and its subsidiaries (the Barclays Bank UK Group) under Section 399 of
the Companies Act 2006. The Barclays Bank UK Group is a major UK financial services provider engaged in retail banking, credit cards,
wholesale banking, wealth management and investment management services. In addition, separate financial statements have been
presented for the parent company.
2. Compliance with International Financial Reporting Standards

The consolidated financial statements of the Barclays Bank UK Group, and the separate financial statements of Barclays Bank UK PLC,
have been prepared in accordance with UK-adopted international accounting standards.
The consolidated financial statements of the Barclays Bank UK Group, and the separate financial statements of Barclays Bank UK PLC,
have also been prepared in accordance with IFRS as issued by the 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.
The 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 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 UK 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 UK
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 includes a review of a working capital report (WCR). The WCR is used by the Board to assess the future performance of the Barclays
Bank UK Group and that it has the resources in place that are required to meet its ongoing regulatory requirements. The assessment is
based upon business plans which contain future forecasts of profitability taken from the Barclays Bank UK 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 UK Group could experience.
The WCR showed that the Barclays Bank UK Group had sufficient capital 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 UK 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.

1 Significant accounting policies (continued)
4. Accounting policies
The Barclays Bank UK Group prepares financial statements in accordance with IFRS. The Barclays Bank UK 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 UK Group applies IFRS 10 Consolidated financial statements.
The consolidated financial statements combine the financial statements of Barclays Bank UK PLC and all its subsidiaries. Subsidiaries are
entities over which Barclays Bank UK PLC has control. The Barclays Bank UK Group has control over another entity when the Barclays
Bank UK 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 UK 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 UK 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.
None of the Barclays Bank UK Group’s subsidiaries are significant in the context of the Barclays Bank UK Group’s business, results or
financial position. A complete list of all subsidiaries is presented in Note 37.
In the individual financial statements of Barclays Bank UK PLC, investments in subsidiaries are stated at cost less impairment.
(ii) Foreign currency translation

The Barclays Bank UK Group applies IAS 21 The 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.

1. Significant accounting policies (continued)
(iii) Financial assets and liabilities

The Barclays Bank UK 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 UK Group applies the requirements of
IAS 39 Financial Instruments: Recognition and Measurement for hedge accounting purposes.
Recognition
The Barclays Bank UK 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 UK 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 UK
Group’s policies for determining the fair values of the assets and liabilities are set out in Note 15.

Derecognition
The Barclays Bank UK 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 cash flows 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 UK 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 analysis. Such an analysis compares the Barclays Bank UK 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
UK 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 UK
Group obtains such loans or cash collateral, in exchange for the transfer of collateral.
The Barclays Bank UK 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 UK 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 UK 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 UK 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 UK 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 UK
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 of 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 35 for further disclosure related to interest rate benchmark reform.

1 Significant accounting policies (continued)
(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 and amended standards 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. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts that was
issued in 2005.
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.
In June 2020, the IASB published amendments to IFRS 17. The amendments that are relevant to the Barclays Bank UK Group are the scope
exclusion for 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.
The amendments also defer the effective date of IFRS 17, including the above amendments, to annual reporting periods beginning on or
after 1 January 2023.
IFRS 17, including the 2020 amendments to IFRS 17, has been endorsed by the EU. Following the UK’s withdrawal from the EU on 31
December 2020, the UK-adopted international accounting standards will be applicable. IFRS 17, including the amendments to IFRS 17,
has not yet been endorsed by the UK. The Barclays Bank UK Group does not expect the impact of IFRS 17 to be material.
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 page 152

▪ Fair value of financial instruments on pages 169 to 174
▪ Goodwill and intangible assets on pages 181 to 183
▪ Provisions including conduct and legal, competition and regulatory matters on pages 184 to 185.

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 page 52 and the tables on pages 60 to 102

▪ Market risk on page 53 and the narratives on page 103
▪ Treasury and capital risk – capital on page 112 and the tables on pages 112 to 113
▪ Treasury and capital risk – liquidity on page 105 and the tables on pages 105 to 115.
These disclosures are covered by the Audit opinion (included on pages 125 to 133) where referenced as audited.

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

The Barclays Bank UK 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.
For segmental reporting purposes, the Barclays Bank UK Group divisions are defined as:
▪ Personal Banking which comprises Personal and Premier banking, Mortgages, Savings, Investments and Wealth management.
▪ Barclaycard Consumer UK which comprises the Barclaycard UK consumer credit cards business.
▪ Business Banking which offers products, services and specialist advice to clients ranging from start-ups to medium-sized businesses and
is where the ESHLA loan portfolio is held.
The below table also includes Head Office which includes central support functions.
Analysis of results by business

Personal Barclaycard Business Barclays Bank
Banking Consumer UK Banking Head Office UK Group
£m £m £m £m £m
Total income 4,001 1,252 1,401 (172) 6,482
Credit impairment (charges) 33 404 (66) — 371
Net operating income/(expenses) 4,034 1,656 1,335 (172) 6,853
Operating costs (3,225) (524) (873) (18) (4,640)
Litigation and conduct 25 (60) (2) (14) (51)
Total operating expenses (3,200) (584) (875) (32) (4,691)
Other net income 1 (1) — 1 1
Profit/(loss) before tax 835 1,071 460 (203) 2,163
Total assets (£bn) 226.1 9.2 84.1 0.3 319.7
a
Number of employees (full time equivalent) 4,200 100 2,900 10,400 17,600
Average number of employees (full time equivalent) 20,100

Total income 3,649 1,528 1,308 (61) 6,424
Credit impairment (charges)/releases (340) (881) (206) — (1,427)
Net operating income/(expenses) 3,309 647 1,102 (61) 4,997
Operating costs (3,262) (530) (766) (45) (4,603)
Litigation and conduct (62) 38 (7) (12) (43)
Total operating expenses (3,324) (492) (773) (57) (4,646)
Other net income 16 — — — 16
Profit/(loss) before tax 1 155 329 (118) 367
Total assets (£bn) 201.0 10.6 75.8 0.1 287.5
Number of employees (full time equivalent) 18,500 100 2,700 200 21,500
Average number of employees (full time equivalent) 21,800
Note
a Barclays Bank UK Group has transformed its business this year and consolidated all Customer Care employees, who directly serve customers, into our Head
Office segment, to improve the customer service and experience. Costs are recharged to the other segments, while full time equivalent (FTE) are reported
within Head Office. As a result, there is an equivalent reduction in FTE reported in the Personal Banking segment.
Income by geographic region

The Barclays Bank UK Group generates income from business activities in the United Kingdom.

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 UK 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 UK Group derives certain fees and incurs certain costs in the origination of mortgage products. Such fees and costs
where directly attributable and incremental to the origination of the instrument, are deferred on the balance sheet and subsequently
included within the calculation of the effective interest rate. They are amortised to interest income over the period of expected life.
Similarly, for mortgage products with distinct periods (initial and follow-on) and contractual margins over the original term wherein the
initial contractual margin varies from the average calculated return, additional interest is deferred on the balance sheet and released to
interest income over the remaining expected life. This adjustment results in a constant rate of return over contractual rate(s) recognised
in the income statement.
There is judgement involved in application of the effective interest rate (EIR) method for loans measured at amortised cost, in particular
developing repayment expectations for long dated instruments such as mortgages. Application of the EIR method adjusts the timing and
amount of interest recognition, with qualifying revenue and expenses deferred and recognised through the life of the instrument as well
as the deferred or accelerated recognition of interest where instruments have contractually specified decreases or increases in the
calculation of interest.
EIR is subject to judgements regarding the rate at which loans are repaid, the key judgement being the prepayment rate following the end
of the initial discount period, which is informed by internal modelling and reviewed quarterly. The review considers prepayment estimates
against recent observed customer behaviour, with the carrying value of the EIR asset adjusted accordingly.
EIR calculations are performed at a portfolio level, aggregating financial instruments with similar characteristics and contractual terms.
The values in the table below reflect net interest income post application of the EIR method.
2021 2020
£m £m
Cash and balances at central banks 56 49
Fair value through other comprehensive income 170 172
Other 121 37
Interest and similar income 5,775 6,201
Deposits at amortised cost (195) (446)
Debt securities in issue (83) (209)
Subordinated liabilities (333) (321)
Negative interest on assets — (19)
Other (158) (26)
Interest and similar expense (769) (1,021)
Net interest income 5,006 5,180
Interest and similar income presented above represents interest revenue calculated using the effective interest method. Interest and similar
income includes £30m (2020: £31m) accrued on impaired loans. Other interest expense includes £16m (2020: £17m) relating to IFRS 16
lease interest expenses.

4 Net fee and commission income
Accounting for net fee and commission income

The Barclays Bank UK 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 UK 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 UK Group recognises fee and commission income charged for services provided by the Barclays Bank UK Group as the
services are provided, for example, on completion of the underlying transaction. Where the contractual arrangements also result in the
Barclays Bank UK 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.
2021
Personal Barclaycard Business

Banking Consumer UK Banking Head Office Total
£m £m £m £m £m
Fee type
Transactional 600 117 153 — 870
Advisory 172 — — — 172
Other 268 — 156 — 424
Total revenue from contracts with customers 1,040 117 309 — 1,466
Other non-contract fee income — — — — —
Fee and commission income 1,040 117 309 — 1,466
Fee and commission expense (186) (27) (6) — (219)
Net fee and commission income 854 90 303 — 1,247
2020
Personal Barclaycard Business

Banking Consumer UK Banking Head Office Total
£m £m £m £m £m
Fee type
Transactional 586 97 127 — 810
Advisory 159 — — — 159
Other 258 8 140 — 406
Total revenue from contracts with customers 1,003 105 267 — 1,375
Other non-contract fee income — — — — —
Fee and commission income 1,003 105 267 — 1,375
Fee and commission expense (276) (23) (11) — (310)
Net fee and commission income 727 82 256 — 1,065
Fee types
Transactional
Transactional fees are service charges on deposit accounts, cash management services 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 UK Group incurs certain card related costs including those related to cardholder reward programmes. Cardholder reward
programmes 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 customer that continuously carry an outstanding balance (revolvers) are
included in the effective interest rate of the receivable (refer to Note 3).
Advisory
Advisory fees are generated from wealth management services. Wealth management advisory are earned over the period the services are
provided and are generally recognised quarterly when the market value of client assets is determined.
Contract assets and contract liabilities

The Barclays Bank UK Group had no material contract assets or contract liabilities as at 31 December 2021 (2020: nil).

Impairment of fee receivables and contract assets

During 2021, there have been no material impairments recognised in relation to fees receivable and contract assets (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 UK 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 UK 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 UK Group expects that incremental costs of obtaining a contract such as success fee and commission fees paid are
recoverable and therefore capitalised such contract costs. Capitalised contract costs net of amortisation as at 31 December 2021 is £6m
(2020: £6m).
Capitalised contract costs are amortised based on the transfer of services to which the asset relates which typically ranges over the
expected life of the relationship. In 2021, the amount of amortisation was £1m (2020: £1m) and there was no impairment loss recognised
in connection with the capitalised contract costs (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 the income statement,
together with interest arising from long and short positions and funding costs relating to trading activities.
Income arises from both the sale and purchase of trading positions and from changes in fair value caused by movements in interest and
exchange rates 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 trading income.
2021 2020
£m £m
a
Net gains from assets and liabilities held for trading 29 48
Net gains from financial instruments designated at fair value 11 5
Net trading income 40 53
Note
a Net trading income within Barclays Bank UK Group includes foreign exchange revaluations and mark-to-market gains on derivatives in Treasury.
6 Net investment income
Accounting for net investment income

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.
2021 2020
£m £m
Net gains from disposal of debt instruments at fair value through other comprehensive income 57 43
Net gains from disposal of financial assets and liabilities measured at amortised cost 92 68
Net gains/(losses) on other investments 32 (5)
Net investment income 181 106

7 Credit impairment (release)/charge
Accounting for the impairment of financial assets

Impairment
The Barclays Bank UK 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.
Determining a significant increase in credit risk since initial recognition:
The Barclays Bank UK 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 based 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 UK Group policy including absolute PD floor maximum of 0.3% and maximum relative PD
increase of 400% (applied to strongest credit quality customers only).
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, including industry and Group wide customer level
data 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
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.
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
completed 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 UK 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 similar severity to internal stress tests, whilst
also considering IFRS 9 specific sensitivities and non-linearity. Downside 2 is benchmarked to the Bank of England’s annual cyclical
scenarios and to the most severe scenario from Moody’s inventory, but is not designed to be the same. The favourable scenarios are
calibrated to be symmetric to the adverse scenarios, subject to a ceiling calibrated to relevant recent favourable benchmark scenarios.
The scenarios include four economic variables (GDP, unemployment, House Price Index (HPI) and base rate in the UK market) 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 eight years.

The methodology for estimating probability weights for each of the scenarios involves a comparison of the distribution of key historical
UK 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 and weights that are used in the estimation of expected credit losses are
also used for the Barclays Bank UK Group 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,
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 or 180 days past due in the case of UK
mortgages. 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 UK 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 UK Group may enter into a financial guarantee contract which requires the issuer of such contract to reimburse the
Barclays Bank UK 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 UK 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 new loan 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.

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 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 UK Group’s risk models are used to determine the PD, LGD and EAD. For Stage
2 and 3, the Barclays Bank UK 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 UK 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
UK 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.
Temporary adjustments to calculated IFRS9 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 77 in credit risk performance section.
2021 2020
Impairment Recoveries and Impairment Recoveries and

a
charges reimbursements Total charges reimbursements Total
£m £m £m £m £m £m
Loans and advances (92) (19) (111) 1,222 (31) 1,191
Provision for undrawn contractually
committed facilities and guarantees
provided (257) — (257) 224 — 224
Loans impairment (349) (19) (368) 1,446 (31) 1,415
Financial instruments at fair value through
OCI (2) — (2) 2 — 2
Other financial assets measured at cost (1) — (1) 10 — 10
Credit impairment (release)/charge (352) (19) (371) 1,458 (31) 1,427
Note
a Recoveries and reimbursements includes cash recoveries of previously written off amounts of £35m (2020: £31m) and a net reduction in amount
recoverable from financial guarantee contracts held with third parties of £16m (2020: Nil).
Write-off that can still be subjected to enforcement activity
The contractual amount outstanding on financial assets that were written off during the period ended 31 December 2021 and that can still
be subjected to enforcement activity is £404m (2020: £409m). 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 with a loss allowance measured at an amount equal to life time ECL of £186m (2020: £494m) were subject to non-
substantial modifications during the period, with a resulting loss of £9m (2020: £12m). There is no material movement in financial assets
subject to non-substantial modification for which the loss allowance has changed to a 12 month ECL.

8 Operating expenses
a
2021 2020
£m £m
Infrastructure costs
Property and equipment 201 245
Depreciation and amortisation 167 140
Lease payments 19 24
Impairment of property, equipment and intangible assets 2 35
Total infrastructure costs 389 444
Administration and general expenses
Consultancy, legal and professional fees 51 55
Marketing and advertising 101 97
UK bank levy 35 50
Other administration and general expenses 2,672 2,646
Total administration and general expenses 2,859 2,848
b
Staff costs 1,392 1,311
Provisions for litigation and conduct 51 43
Operating expenses 4,691 4,646
Note
a Operating expenses includes £288m relating to structural cost actions predominantly relating to staff and infrastructure costs.
b For further details on staff costs including accounting policies, refer to Note 28.
9 Tax
Accounting for income taxes
The Barclays Bank UK 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 from 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 UK 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 UK Group’s tax returns.
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 UK Group ultimately expects to pay the tax authority to resolve the position.
2021 2020
£m £m
Current tax charge/(credit)
Current year 549 58
Adjustments in respect of prior years (43) 3
506 61
Deferred tax credit
Current year (206) (57)
Adjustments in respect of prior years (6) (16)
(212) (73)
Tax charge/(credit) 294 (12)

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 UK Group’s profit before tax.
2021 2021 2020 2020

£m % £m %
Tax charge based on the standard UK corporation tax rate of 19% 411 19.0% 70 19.0%
(2020: 19%)
Recurring items:
Banking surcharge and other items 149 6.9% 7 1.9%
Non-deductible expenses 10 0.5% 16 4.4%
Impact of UK bank levy being non-deductible 7 0.3% 9 2.4%
Tax adjustments in respect of share-based payments (1) — 5 1.4%
Non-taxable gains and income (2) (0.1%) (3) (0.8%)
Tax relief on payments made under AT1 instruments (33) (1.5%) (34) (9.3%)
Adjustments in respect of prior years (49) (2.3%) (13) (3.5%)
Non-recurring items:
Remeasurement of UK deferred tax assets due to tax rate changes (196) (9.1%) (67) (18.3%)
Non-deductible provisions for UK customer redress (2) (0.1%) (7) (1.9%)
Non-deductible provisions for investigations and litigations — — 5 1.4%
Total tax charge/(credit) 294 13.6% (12) (3.3%)
Factors driving the effective tax rate

The effective tax rate of 13.6% is lower than the UK corporation tax rate of 19% primarily due to the tax benefit recognised for a
remeasurement of UK deferred tax assets as a result of the enactment in 2021 of an increase in the UK corporation tax rate to 25% from 1
April 2023, adjustments in respect of prior years and tax relief on payments made under AT1 instruments. These factors, which have each
decreased the effective tax rate, have been partially offset by the impact of the banking surcharge and non-deductible expenses including
UK bank levy.
Barclays Bank UK Group’s future tax charge will be sensitive to the tax rates in force and changes to the tax rules in the UK. In its Budget
held in October 2021, the UK Government announced that the banking surcharge rate will be reduced from 8% to 3% from 1 April 2023.
This reduction in the banking surcharge rate was substantively enacted on 2 February 2022 and is a non-adjusting post balance sheet
event. If the reduction in the banking surcharge rate had been substantively enacted at the balance sheet date then this would have
resulted in the Barclays Bank UK Group’s deferred tax assets being remeasured and decreasing with a tax charge in the income statement
of £164m and tax charge within other comprehensive income of £35m.
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
which includes within Other a tax credit of £nil (2020: £1m). The total amount recognised in relation to the remeasurement of UK deferred
tax through other comprehensive income was a £41m credit (2020: £2m charge).
Tax included directly in equity

Tax included directly in equity comprises a £9m credit (2020: £4m) relating to share-based payments and deductible costs on issuing other
equity instruments.
Deferred tax assets and liabilities

The deferred tax asset on the balance sheet for Barclays Bank UK Group and for Barclays Bank UK PLC is £1,368m (2020: £780m). All of
these deferred tax assets are in the UK Tax Group and relate entirely to temporary differences. Business profit forecasts indicate these
amounts will be fully recovered.
Of the deferred tax asset of £1,368m (2020: £780m), an amount of £nil (2020: £nil) relates to entities which have suffered a loss in either
the current or prior year. This has been taken into account in reaching the above conclusion that these deferred tax assets will be fully
recovered in the future.
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 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 UK Group and PLC Fixed asset Loan Other

timing Cash flow impairment temporary
differences hedges allowance differences Total
£m £m £m £m £m
Assets 702 — 206 14 922
Liabilities — (126) — (16) (142)
At 1 January 2021 702 (126) 206 (2) 780
Income statement 173 — 3 36 212
Other comprehensive income and reserves — 339 — 37 376
Other movements — — — — —
875 213 209 71 1,368
Assets 875 213 209 71 1,368
Liabilities — — — — —
At 31 December 2021 875 213 209 71 1,368
Assets 610 — 219 63 892

Liabilities — (41) — (41) (82)
At 1 January 2020 610 (41) 219 22 810
Income statement 86 — (13) — 73
Other comprehensive income and reserves — (85) — (24) (109)
Other movements 6 — — — 6
702 (126) 206 (2) 780
Assets 702 — 206 14 922
Liabilities — (126) — (16) (142)
At 31 December 2020 702 (126) 206 (2) 780
The amount of deferred tax asset expected to be recovered after more than 12 months for the Barclays Bank UK Group and for Barclays
Bank UK PLC is £1,317m (2020: £887m). The amount of deferred tax liability expected to be settled after more than 12 months for the
Barclays Bank UK Group and for Barclays Bank UK PLC is £nil (2020: £142m). 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
Deferred tax assets have not been recognised in respect of gross tax losses of £339m (2020: £960m) in Barclays Bank UK Group and
Barclays Bank UK PLC. These tax losses are comprised entirely of capital losses which 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 gains will be available against which
they can be utilised.
Barclays Bank UK Group investments in subsidiaries, branches and associates

The amount of unrecognised deferred tax relating to temporary differences on investments in subsidiaries, branches and associates in both
Barclays Bank UK Group and Barclays Bank UK PLC is £nil (2020: £nil).
10 Dividends on ordinary shares
The 2021 financial statements include £510m (2020: £220m) of dividends paid on ordinary shares. This comprises the 2021 half year
dividend of £510m (2020: £220m) only as the Company did not pay a 2020 full year dividend.
This results in a total dividend for the year of £1.01 (2020: 44p) per ordinary share.
The Directors have approved a 2021 full year dividend of £1,010m.

Assets and liabilities held at fair value
The notes included in this section focus on assets and liabilities the Barclays Bank UK 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. Detail regarding the Barclays Bank UK Group’s approach to managing
market risk can be found on page 53.
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 UK Group and PLC

2021 2020
£m £m
Debt securities and other eligible bills 169 298
Trading portfolio assets 169 298
Debt securities and other eligible bills (878) (1,265)

Trading portfolio liabilities (878) (1,265)
Trading debt securities (assets) are part of managed assets within treasury. Trading debt securities (liabilities) relate to short positions held
for hedging fair value loans and managed assets within treasury.
12 Financial assets at fair value through the income statement

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 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 arrived at for financial assets at fair value are described in Note 15.

2021 2020
£m £m
Loans and advances 2,767 3,430
Financial assets designated at fair value 2,767 3,430
Other financial assets — 2
Financial assets mandatorily at fair value — 2
Total 2,767 3,432
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.
Maximum exposure as at Changes in fair value during the Cumulative changes in fair value
31 December year ended from inception
2021 2020 2021 2020 2021 2020
£m £m £m £m £m £m
Loans and advances designated at fair

value, attributable to credit risk 2,767 3,430 4 (1) (16) (22)

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 UK 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.
All derivative instruments are held at fair value through profit or loss, except for derivatives that are in a designated cash flow 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 it 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 UK Group applies the requirements of IAS 39 Financial Instruments: Recognition and Measurement for hedge
accounting purposes. The Barclays Bank UK Group applies hedge accounting to represent the economic effects of its interest rate,
currency and contractually linked inflation risk management strategies. Derivatives are used to hedge interest rate, exchange rate, and
exposures to certain indices such as house price indices and retail price indices related to non-trading positions. Where derivatives are
held for risk management purposes, and when transactions meet the required criteria for documentation and hedge effectiveness, the
Barclays Bank UK Group applies fair value hedge accounting and cash flow hedge accounting.
The Barclays Bank UK 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 UK 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 UK 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 UK 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 UK Group has not recycled the cash flow hedge reserve relating to the period after the reforms are expected to take
effect.
▪ The Barclays Bank UK 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 UK 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 UK 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 UK 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 UK 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 UK Group upon designation of the hedge to assume that the separately identifiable requirement is
met if the Barclays Bank UK Group reasonably expects the RFR risk will become separately identifiable within the next 24 months. The
Barclays Bank UK Group applies this relief to each RFR on a rate-by-rate basis and starts when the Barclays Bank UK 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.
Cash flow hedge accounting

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.
Total derivatives Barclays Bank UK Group Barclays Bank UK PLC

Notional Notional
contract Fair value contract Fair value
amount Assets Liabilities amount Assets Liabilities
£m £m £m £m £m £m
Total derivative assets/(liabilities) held for trading 578,933 243 (730) 578,933 243 (730)
Total derivative assets/(liabilities) held for risk
management 77,257 647 (84) 77,257 647 (84)
Derivative assets/(liabilities) 656,190 890 (814) 656,190 890 (814)
Total derivative assets/(liabilities) held for trading 439,118 237 (843) 439,118 237 (843)
Total derivative assets/(liabilities) held for risk
management 70,982 313 (37) 70,982 313 (37)
Derivative assets/(liabilities) 510,100 550 (880) 510,100 550 (880)
As part of the industry wide IBOR transition during the year, interest rate swap contracts held with Central Clearing Counterparties (CCPs)
have been converted to alternative benchmarks. Operationally, this involved the CCPs splitting each contract into multiple component
operational parts in order to preserve accrued IBOR cash flows. Legally, Barclays Bank UK PLC remains party to only one contract, and as
such all notional amounts quoted in this disclosure reflect the legal contract notional. In total, 'operational-only' trade notional amounts of
£111bn primarily with London Clearing House have been explicitly excluded from these disclosures.
Further information on netting arrangements of derivative financial instruments can be found within Note 16.

The fair values and notional amounts of derivatives held for trading are set out in the following table:
a
Derivatives held for trading Barclays Bank UK Group Barclays Bank UK PLC
Notional Fair value Notional Fair value
contract contract
£m £m £m £m £m £m
Foreign exchange derivatives
OTC derivatives 20,511 98 (282) 20,389 56 (282)
Foreign exchange derivatives 20,511 98 (282) 20,389 56 (282)
Interest rate derivatives
OTC derivatives 9,753 78 (364) 8,753 38 (364)
Interest rate derivatives cleared by central
counterparty 548,669 67 (84) 548,669 67 (84)
Interest rate derivatives 558,422 145 (448) 557,422 105 (448)
Derivatives with subsidiaries — — — 1,122 82 —
Derivative assets/(liabilities) held for trading 578,933 243 (730) 578,933 243 (730)
Total OTC derivatives 30,264 176 (646) 29,142 94 (646)
Total derivatives cleared by central counterparty 548,669 67 (84) 548,669 67 (84)
a
Derivatives held for trading Barclays Bank UK Group Barclays Bank UK PLC
Notional Notional
£m £m £m £m £m £m
Foreign exchange derivatives
OTC derivatives 17,065 111 (261) 16,943 43 (261)
Foreign exchange derivatives 17,065 111 (261) 16,943 43 (261)
Interest rate derivatives
OTC derivatives 6,584 126 (492) 5,584 66 (492)
counterparty 415,469 — (90) 415,469 — (90)
Interest rate derivatives 422,053 126 (582) 421,053 66 (582)
Total derivatives cleared by central counterparty 415,469 — (90) 415,469 — (90)
Note
a Derivatives held for trading mainly includes derivatives held as economic hedges to manage risk.

The fair values and notional amounts of derivative instruments held for risk management are set out in the following table:
Derivatives held for risk management Barclays Bank UK Group Barclays Bank UK PLC
Notional Notional
£m £m £m £m £m £m
Derivatives designated as cash flow hedges
Currency Swaps 6,592 642 — 6,592 642 —
counterparty 37,482 — — 37,482 — —
Derivatives designated as cash flow hedges 44,074 642 — 44,074 642 —
Derivatives designated as fair value hedges
Interest rate swaps 2,537 5 (73) 2,537 5 (73)
counterparty 30,646 — (11) 30,646 — (11)
Derivatives designated as fair value hedges 33,183 5 (84) 33,183 5 (84)
Derivative assets/(liabilities) held for risk
management 77,257 647 (84) 77,257 647 (84)

Total derivatives cleared by central counterparty 68,128 — (11) 68,128 — (11)
management 77,257 647 (84) 77,257 647 (84)
Derivatives designated as cash flow hedges
Currency Swaps 5,596 284 — 5,596 284 —
counterparty 24,160 — — 24,160 — —
Derivatives designated as cash flow hedges 29,756 284 — 29,756 284 —
Derivatives designated as fair value hedges
Interest rate swaps 3,026 29 (37) 3,026 29 (37)
counterparty 38,200 — — 38,200 — —
Derivatives designated as fair value hedges 41,226 29 (37) 41,226 29 (37)
management 70,982 313 (37) 70,982 313 (37)

Total derivatives cleared by central counterparty 62,360 — — 62,360 — —
management 70,982 313 (37) 70,982 313 (37)
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. Interest rate risk also includes
exposure to inflation risk for certain types of investments.
▪ Currency risk – arises due to assets or liabilities being denominated in different currencies than the functional currency of the relevant
entity.
▪ Contractually linked inflation risk – arises from financial instruments within contractually specified inflation risk. The Group does not
hedge inflation risk that arises from other activities.
In order to hedge these risks, the Group uses the following hedging instruments:
▪ Interest rate derivatives to swap interest rate exposures into either fixed or variable rates.
▪ Currency derivatives to swap foreign currency exposure into the entity’s functional 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 UK 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.
▪ Forward 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 UK 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 UK 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 a de-designated relationship is replaced with a different
hedge accounting relationship.
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.
▪ 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.
Barclays Bank UK 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. For GBP LIBOR
contracts, where uncertainty around the timing and effects of LIBOR reform continues beyond the end of the current cash flow period,
financial instruments are generally expected to utilise 'synthetic LIBOR' (as permitted by the FCA on a temporary basis until their contracts
are fully remediated). USD LIBOR linked hedge accounting relationships are still exposed to uncertainty regarding the precise timing and
effects of benchmark reform. USD LIBOR benchmarks will cease to be published from 30 June 2023, 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 2021:
Nominal
Nominal amount
amount of hedging
of hedged items instruments
directly directly
impacted impacted
by IBOR reform by IBOR reform
Current benchmark rate Expected convergence to RFR £m £m
GBP London Interbank Offered Rate (LIBOR) Reformed Sterling Overnight Index Average (SONIA) 586 —
USD LIBOR Secured Overnight Financing Rate (SOFR) 3,067 3,063
Total 3,653 3,063
The disparity in outstanding GBP notionals between hedged items and hedging instruments results from a temporary timing mismatch
where derivative contracts have been transitioned to SONIA prior to 31 December 2021, whereas hedged items are expected to transition
early 2022.

Hedged items in fair value hedges

Accumulated fair value
adjustment included in carrying
Barclays Bank UK Group and PLC amount
Of which:
Accumulated
fair value
adjustment on Change in fair Hedge
items no value used as ineffectiveness
longer in a a basis to recognised in
Carrying hedge determine the income
a
amount Total relationship ineffectiveness statement
Hedged item statement of financial position classification and risk
category £m £m £m £m £m
2021
Assets
– Interest rate risk 7,201 647 (648) (1,566) 33
income
– Interest rate risk 8,591 35 4 (314) (1)
– Inflation risk 2,795 84 — 80 3
Total Assets 18,587 766 (644) (1,800) 35
Liabilities
Debt securities in issue
– Interest rate risk (10,097) (52) 117 375 (62)
Total Liabilities (10,097) (52) 117 375 (62)
Total Hedged items 8,490 714 (527) (1,425) (27)
2020
Assets
– Interest rate risk 9,006 2,174 (657) 1,528 111
income
– Interest rate risk 13,608 313 29 204 (3)
– Inflation risk 3,039 48 — 58 10
Total Assets 25,653 2,535 (628) 1,790 118
Liabilities
– Interest rate risk (11,940) (498) 98 (212) (47)
Total Liabilities (11,940) (498) 98 (212) (47)
Total Hedged items 13,713 2,037 (530) 1,578 71
Note
a Hedge ineffectiveness is recognised in net interest income.
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.

The following table shows the fair value hedging instruments which are carried on the balance sheet.
Carrying value Change in fair Nominal

value amount
used as a basis to directly
Derivative Derivative Nominal determine impacted by
Barclays Bank UK Group and PLC assets liabilities amount ineffectiveness IBOR reform
Hedge type Risk category £m £m £m £m £m
Fair value Interest rate risk — — 30,415 1,475 3,063
Inflation risk 5 (84) 2,768 (77) —
Total 5 (84) 33,183 1,398 3,063
Fair value Interest rate risk — — 38,200 (1,459) 6,346
Inflation risk 29 (37) 3,026 (48) —
Total 29 (37) 41,226 (1,507) 6,346
The following table profiles the expected notional values of current hedging instruments in future years:
2027 and
2021 2022 2023 2024 2025 2026 later
Barclays Bank UK Group and PLC £m £m £m £m £m £m £m
Fair value hedges of:
Interest rate risk (outstanding notional
amount) 30,415 27,557 26,233 22,577 17,646 14,135 11,783
Inflation risk (outstanding notional amount) 2,768 2,440 2,396 1,162 1,162 341 341
There are 1,126 (2020: 1,304) interest rate risk fair value hedges with an average fixed rate of 2.6% (2020: 2.4%) across the relationships in
Barclays Bank UK Group and PLC and 36 (2020: 34) inflation risk fair value hedges with an average rate of 0.7% (2020: 0.9%) across the
relationships.
The following table shows hedged items in cash flow hedges:
Hedged items in cash flow hedges

Barclays Bank UK Group and PLC Balances remaining
Change in value of in cash flow Hedging gains or
hedged item used Balance in cash hedging reserve for losses Hedge
as the basis for flow hedging which hedge recognised in other ineffectiveness
recognising reserve for accounting is no comprehensive recognised in the
a
ineffectiveness continuing hedges longer applied income income statement
Description of hedge relationship and
hedged risk £m £m £m £m £m
2021
Cash flow hedge of:
Interest rate risk
800 627 (106) 800 (67)

Foreign exchange risk
Debt securities classified at amortised
(356) 123 — (356) 1
cost
Total cash flow hedge 444 750 (106) 444 (66)
2020
Cash flow hedge of:
Interest rate risk
Loans and advances at amortised cost (349) (112) (291) (349) (2)
Foreign exchange risk
Debt securities classified at amortised
cost (278) (65) — (278) —
Total cash flow hedge (627) (177) (291) (627) (2)
Note
a Hedge ineffectiveness is recognised in net interest income.

There are 35 (2020: 28) foreign exchange risk cash flow hedges with an average foreign exchange rate of 137.99 JPY: 1 GBP (2020: 135.29
JPY: 1 GBP) across the relationships.
The following table shows the cash flow hedging instruments which are carried on the balance sheet.
Carrying value Change in fair Nominal

value amount
used as a basis to directly
Derivative Derivative Nominal determine impacted by
Barclays Bank UK Group and PLC assets liabilities amount ineffectiveness IBOR reform
Hedge type Risk category £m £m £m £m £m
Cash flow Interest rate risk — — 37,482 (867) —
Foreign exchange risk 642 — 6,592 357 —
Total 642 — 44,074 (510) —
Cash flow Interest rate risk — — 24,160 347 687
Foreign exchange risk 284 — 5,596 278 —
Total 284 — 29,756 625 687
The effect on the income statement and other comprehensive income of recycling amounts in respect of cash flow hedges is set out in the
following table:
2021 2020
Amount recycled from Amount recycled from
other comprehensive Amount recycled from other comprehensive Amount recycled from
income due to hedged other comprehensive income due to hedged other comprehensive
item affecting income income due to sale or item affecting income income due to sale or
statement disposal of investment statement disposal of investment
£m £m £m £m
Cash flow hedge of interest rate risk
Recycled to net interest income 124 1 111 —
Cash flow hedge of foreign exchange risk
Recycled to other income 542 — 213 —
A detailed reconciliation of the movements of the cash flow hedging reserve is as follows:
2021 2020
Barclays Bank UK Group and PLC Cash flow hedging reserve Cash flow hedging reserve
£m £m
Balance on 1 January 341 123
Hedging gains/(losses) for the year (444) 414
Amounts reclassified in relation to cash flows affecting profit or loss (667) (111)
Tax 339 (85)
Balance on 31 December (431) 341
In 2020, amounts recycled from other comprehensive income of £213m in respect of cash flow hedges of foreign exchange risk were
presented within 'Hedging gains/(losses) for the year'. For 2021, the corresponding current year amounts of £542m were presented within
'Amounts reclassified in relation to cash flows affecting profit or loss’.

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 UK Group will consider past sales and expectations about future sales to establish if the business model is
achieved.

2021 2020
£m £m
Debt securities and other eligible bills 14,945 26,026
15 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 UK
Group’s financial assets and liabilities for which quoted prices are not available, 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 and currency
rates.
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 172.
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.

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

2021 2020
Valuation technique using Valuation technique using
Barclays Bank UK Group Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
As at 31 December £m £m £m £m £m £m £m £m
Trading portfolio assets 90 79 — 169 52 246 — 298
Financial assets at fair value through the
income statement — 105 2,662 2,767 — 130 3,302 3,432
Derivative financial assets — 890 — 890 — 550 — 550
Financial assets at fair value through
other comprehensive income 5,045 9,900 — 14,945 6,887 19,139 — 26,026
Total assets 5,135 10,974 2,662 18,771 6,939 20,065 3,302 30,306
Trading portfolio liabilities (827) (51) — (878) (1,060) (205) — (1,265)

Derivative financial liabilities — (814) — (814) — (880) — (880)
Total liabilities (827) (865) — (1,692) (1,060) (1,085) — (2,145)
The following table shows Barclays Bank UK PLC’s assets and liabilities that are held at fair value disaggregated by valuation technique (fair
value hierarchy) and balance sheet classification:

2021 2020
Valuation technique using Valuation technique using
Barclays Bank UK PLC Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Trading portfolio assets 90 79 — 169 52 246 — 298
income statement — 105 2,662 2,767 — 130 3,302 3,432
Derivative financial assets — 890 — 890 — 550 — 550
Financial assets at fair value through
other comprehensive income 5,045 9,900 — 14,945 6,887 19,139 — 26,026
Total assets 5,135 10,974 2,662 18,771 6,939 20,065 3,302 30,306
Trading portfolio liabilities (827) (51) — (878) (1,060) (205) — (1,265)

Derivative financial liabilities — (814) — (814) — (880) — (880)
Total liabilities (827) (865) — (1,692) (1,060) (1,085) — (2,145)

Level 3 movement analysis

The following table summarises the movements in the Level 3 balances during the period. Transfers have been reflected as if they had
taken place at the beginning of the year.
Asset transfer between Level 3 and Level 2 is due to an increase in observable market activity related to an input.
Analysis of movements in Level 3 assets and liabilities

Total gains and (losses)
in the period recognised Total gains
As at in the income statement or losses Transfers As at
1 January Trading Other recognised 31 December
a
Barclays Bank UK 2021 Purchases Sales Issues Settlements income income in OCI In Out 2021
Group and PLC £m £m £m £m £m £m £m £m £m £m £m
Non-asset backed
loans 3,301 — — — (500) (122) — — — (17) 2,662
Other 1 — — — — — (1) — — — —
Financial assets
at fair value
through the
income
statement 3,302 — — — (500) (122) (1) — — (17) 2,662
Total gains and (losses)

in the period recognised Total gains
As at in the income statement or losses Transfers As at
1 January Trading Other recognised 31 December
a
2020 Purchases Sales Issues Settlements income income in OCI In Out 2020
£m £m £m £m £m £m £m £m £m £m £m
Non-asset backed
loans 3,530 — — — (413) 284 — — — (100) 3,301
Other 3 4 — — (6) — — — — — 1
Financial assets
at fair value
through the
income
statement 3,533 4 — — (419) 284 — — — (100) 3,302
Note
a Trading income represents (losses) and gains on Level 3 financial assets which are offset by losses on derivative hedge disclosed within Level 2.
Non-asset backed loans

Description: Largely made up of fixed rate loans, extended to counterparties in the Education, Social Housing and Local Authority sectors.
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.
Level 3 sensitivity: The sensitivity of fixed rate loans is calculated by applying a shift to loan spreads, aligned to the prudent valuation
framework for calculating market data uncertainty around an unobservable valuation input. The prudent valuation framework additionally
requires Barclays Bank UK plc to be capitalised to 50% of the impact of such valuation uncertainty being realised in the income statement.
On a portfolio level, the sensitivity is equivalent to an average stress to the input loan spread of 34bp.

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
Barclays Bank UK Group and PLC 2021 2020
Other Other
Income statement compre- Income statement compre-
Trading Other hensive Trading Other hensive
income income income Total income income income Total
income statement (122) — — (122) 284 — — 284
Total (122) — — (122) 284 — — 284
Significant unobservable inputs

Valuation Significant 2021 Range 2020 Range
a
technique(s) unobservable inputs Min Max Min Max Units
Non-asset backed Discounted cash
loans flows Loan spread 31 1,552 31 1,518 bps
Note
a 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 1/100th of 1%; for example, 150 basis points equals 1.5%.
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.
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.
The ESHLA portfolio primarily consists of long-dated fixed rate loans extended to counterparties in the UK Education, Social Housing and
Local Authority sectors. 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 low credit risk, and have a history of near zero defaults since inception and where Barclays is often afforded a position as a
secured creditor. While the overall loan spread range is from 31bps to 1552bps (2020: 31bps to 1,518bps), the vast majority of spreads are
concentrated towards the bottom end of this range, with 97% of the loan notional being valued with spreads less than 200bps consistently
for both years.
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

2021 2020
Unfavourable Unfavourable
Favourable changes changes Favourable changes changes
£m £m £m £m
Non asset backed loans 66 (105) 86 (220)
Total 66 (105) 86 (220)
The effect of stressing unobservable inputs to a 90th percentile confidence interval of a potential range of values, alongside considering the
impact of using alternative models, would be to increase fair values by up to £66m (2020: £86m) or to decrease fair values by up to £105m
(2020: £220m). All the potential effect would impact profit and loss. The asymmetry in the favourable and unfavourable changes in the
sensitivity analysis is attributable to Investing and Funding costs with the prudential valuation framework contributing to the unfavourable
side only.
Portfolio exemptions
The Barclays Bank UK 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, the Barclays Bank UK 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 £12m (2020: £13m) for financial instruments measured at fair value and £202m (2020: £217m) for
financial instruments carried at amortised cost. The decrease in financial investments measured at fair value of £1m (2020: £nil) was driven
by amortisation and releases of £2m (2020: £2m) offset by additions of £1m (2020: £2m). The decrease of £15m (2020: £7m) in financial
instruments carried at amortised cost is driven by amortisation and releases of £15m (2020: £12m) offset by additions of £nil (2020: £5m).
Comparison of carrying amounts and fair values:

The following tables summarise the fair value of financial assets and liabilities measured at amortised cost on Barclays Bank UK Group’s
and Barclays Bank UK PLC’s balance sheet:
Barclays Bank UK Group 2021 2020

Carrying Carrying
amount Fair value Level 1 Level 2 Level 3 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
amortised cost 220,271 220,960 1,897 25,807 193,256 211,649 209,612 — 22,816 186,796
lending 65 65 — 65 — 133 133 — 133 —
Financial liabilities
Deposits at amortised cost (260,732) (260,749) (253,601) (5,644) (1,504) (240,535) (240,555) (230,238) (8,268) (2,049)
other similar secured borrowing (18,160) (18,160) — (18,160) — (7,178) (7,178) — (7,178) —
Debt securities in issue (8,684) (8,945) — (8,801) (144) (7,503) (7,897) — (7,897) —
Subordinated liabilities (9,516) (9,976) — (9,976) — (9,869) (10,344) — (10,344) —
Barclays Bank UK PLC 2021 2020

Carrying Carrying
amount Fair value Level 1 Level 2 Level 3 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
amortised cost 220,660 221,349 1,897 26,198 193,254 212,033 210,000 — 23,202 186,798
lending 65 65 — 65 — 133 133 — 133 —
Deposits at amortised cost (261,286) (261,304) (253,601) (6,199) (1,504) (241,091) (241,119) (230,245) (8,825) (2,049)
other similar secured borrowing (18,160) (18,160) — (18,160) — (7,178) (7,178) — (7,178) —
Debt securities in issue (8,684) (8,945) — (8,801) (144) (7,503) (7,897) — (7,897) —
Subordinated liabilities (9,516) (9,976) — (9,976) — (9,869) (10,344) — (10,344) —
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 17.


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.
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.

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.
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.
16 Offsetting financial assets and financial liabilities

In accordance with IAS 32 Financial Instruments: Presentation, the Barclays Bank UK 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 are not intended to represent the Barclays Bank UK 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 UK Group Amounts subject to enforceable netting arrangements

Effects of offsetting on-balance sheet Related amounts not offset
Net amounts Amounts not

reported on subject to
the enforceable Balance
Gross Amounts balance Financial Financial netting sheet
a b c d
amounts offset sheet instruments collateral Net amount arrangements total
As at 31 December 2021 £m £m £m £m £m £m £m £m
Derivative financial assets 890 — 890 (270) (618) 2 — 890
Reverse repurchase
agreements and other similar
e
secured lending 6,333 (6,268) 65 — (65) — — 65
Total assets 7,223 (6,268) 955 (270) (683) 2 — 955
Derivative financial liabilities (814) — (814) 270 542 (2) — (814)
other similar secured
e
borrowing (9,424) 6,268 (3,156) — 3,156 — (15,004) (18,160)
Total liabilities (10,238) 6,268 (3,970) 270 3,698 (2) (15,004) (18,974)
Reverse repurchase
e
secured lending 1,384 (1,251) 133 — (133) — — 133
Total assets 1,934 (1,251) 683 (189) (463) 31 — 683
e
borrowing (5,428) 1,251 (4,177) — 4,177 — (3,001) (7,178)
Notes
a No other significant recognised financial assets and liabilities were offset in the balance sheet. Therefore, the only balance sheet categories necessary for
inclusion in the table are those shown above.
b Financial collateral of £618m (2020: £330m) was received in respect of derivative assets, including £536m (2020: £214m) of cash collateral and £82m
(2020: £116m) of non-cash collateral. Financial cash collateral of £542m (2020: £657m) was placed in respect of derivative liabilities. 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 Repurchase and other similar secured lending and Reverse Repurchase and other similar secured lending held at amortised cost.
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.
Repurchase and reverse 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 and collateral arrangements and other credit risk mitigation strategies used by Barclays Bank UK are further explained in
the Credit risk mitigation section on page 52.
Barclays Bank UK PLC Amounts subject to enforceable netting arrangements

Effects of offsetting on-balance sheet Related amounts not offset
Net amounts Amounts not

reported on subject to
the enforceable Balance
Gross Amounts balance Financial Financial netting sheet
a b c d
amounts offset sheet instruments collateral Net amount arrangements total
As at 31 December 2021 £m £m £m £m £m £m £m £m
Reverse repurchase
e
secured lending 6,333 (6,268) 65 — (65) — — 65
Total assets 7,223 (6,268) 955 (270) (601) 84 — 955
e
borrowing (9,424) 6,268 (3,156) — 3,156 — (15,004) (18,160)
Reverse repurchase
e
secured lending 1,384 (1,251) 133 — (133) — — 133
Total assets 1,934 (1,251) 683 (189) (347) 147 — 683
e
borrowing (5,428) 1,251 (4,177) — 4,177 — (3,001) (7,178)
Notes
a No other significant recognised financial assets and liabilities were offset in the balance sheet. Therefore, the only balance sheet categories necessary for
inclusion in the table are those shown above.
b Financial cash collateral of £536m (2020: £214m) was received in respect of derivative assets. Financial cash collateral of £542m (2020: £657m) was placed
in respect of derivative liabilities. 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 Repurchase and other similar secured lending and Reverse Repurchase and other similar secured lending held at amortised cost.

Assets at amortised cost and other investments
The notes included in this section focus on the Barclays Bank UK 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 UK Group’s liquidity and capital
position can be found on pages 105 to 115.
17 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 liabilities, are held 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 on ‘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
UK 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 UK Group will consider past sales and expectations about future sales.
Loans and advances and deposits at amortised cost

Barclays Bank UK Group Barclays Bank UK PLC
2021 2020 2021 2020
As at 31 December £m £m £m £m
Loans and advances at amortised cost to banks 1,163 877 903 906
Loans and advances at amortised cost to customers 206,367 201,727 207,016 202,082
Debt securities at amortised cost 12,741 9,045 12,741 9,045
Total loans and advances at amortised cost 220,271 211,649 220,660 212,033
Deposits at amortised cost from banks 149 56 149 56

Deposits at amortised cost from customers 260,583 240,479 261,137 241,035
Total deposits at amortised cost 260,732 240,535 261,286 241,091

18 Property, plant and equipment

Accounting for property, plant and equipment
The Barclays Bank UK Group applies IAS 16 Property Plant and Equipment.
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 to 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 UK 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%

a
Property Right of use assets Total
£m £m £m
Cost
As at 1 January 2021 937 530 1,467
Additions 7 3 10
Disposals (105) (27) (132)
Exchange and other movements — (6) (6)
As at 31 December 2021 839 500 1,339
Accumulated depreciation and impairment
As at 1 January 2021 (552) (178) (730)
Disposals 99 23 122
Depreciation charge (96) (71) (167)
Impairment charge 1 (3) (2)
As at 31 December 2021 (548) (229) (777)
Net book value 291 271 562
Cost
As at 1 January 2020 973 528 1,501
Additions 17 14 31
Disposals (53) (7) (60)
Exchange and other movements — (5) (5)
As at 31 December 2020 937 530 1,467
Accumulated depreciation and impairment
As at 1 January 2020 (514) (94) (608)
Disposals 50 — 50
Depreciation charge (63) (74) (137)
Impairment charge (25) (10) (35)
As at 31 December 2020 (552) (178) (730)
Net book value 385 352 737
Note
a Right of use (ROU) asset balances relate to Property Leases under IFRS 16. Refer Note 19 for further details.
£9m from property rentals (2020: £1m) has been included in Other income.

19 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 UK Group has decided to apply.
When the Barclays Bank UK 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 one of the following:
▪ Future lease payments arising from a change in an index or rate;
▪ The Barclays Bank UK Group’s estimate of the amount expected to be payable under a residual value guarantee; or
▪ The Barclays Bank UK 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.
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 UK 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.
As a Lessee
The Barclays Bank UK Group leases various offices, branches and other premises under non-cancellable lease arrangements to meet its
operational business requirements. In some instances, Barclays Bank UK Group will sublease property to third parties when it is no longer
needed to meet business requirements. Currently, Barclays Bank UK Group and Barclays Bank UK PLC does not have any material
subleasing arrangements.
ROU asset balances relate to property leases only. Refer to Note 18 for a breakdown of the carrying amount of ROU assets.
The Barclays Bank UK Group and Barclays Bank PLC recognised total expense of £2m (2020: £4m) for short term leases during the year.
The portfolio of short term leases to which Barclays Bank UK Group and Barclays Bank UK PLC is exposed at the end of the year is not
dissimilar to the expenses recognised in the year.
Lease liabilities Barclays Bank UK Group and PLC

2021 2020
£m £m
As at 1 January 365 432
Interest 13 17
New leases 2 14
Disposals (7) (9)
Cash payments (79) (85)
Exchange and other movements (6) (4)
As at 31 December (see Note 21) 288 365

The below table sets out a maturity analysis of undiscounted lease liabilities, showing the lease payments to be paid after the reporting
date.
Undiscounted lease liabilities maturity analysis Barclays Bank UK Group and PLC
2021 2020
£m £m
Not more than one year 73 81
One to two years 64 76
Two to three years 55 66
Three to four years 51 58
Four to five years 28 52
Five to ten years 41 75
Greater than ten years 31 36
Total undiscounted lease liabilities as at 31 December 343 444
In addition to the cash flows identified above, Barclays Bank UK Group and Barclays Bank UK PLC are exposed to:
▪ Variable lease payments: This variability will typically arise from either inflation index instruments or market based pricing adjustments.
Currently, 533 leases (2020: 706 leases) out of the total 928 leases (2020: 1,091 leases) have variable lease payment terms based on
market based pricing adjustments. Of the gross cash flows identified above, £264m (2020: 374m) is attributable to leases with some
degree of variability predominately linked to market based pricing adjustments.
▪ Extension and termination options: The table above represents Barclays Bank UK Group and Barclays Bank UK 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 £26m (2020: £17m) for leases where it is highly expected to exercise an early termination
option. However, there is no significant impact where it is expected to exercise an extension option.
Barclays Bank UK Group and Barclays Bank UK PLC currently do not have any significant sale and lease back transactions. Barclays Bank UK
Group and Barclays Bank UK PLC do not have any restrictions or covenants imposed by the lessor on its property leases which restrict its
businesses.

20 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 UK 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. Expenditures in the research
phase are expensed when 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
Customer lists 12 months to 25 years
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.

Goodwill Customer lists Total Goodwill Customer lists Total
£m £m £m £m £m £m
Cost
As at 1 January 2021 3,526 90 3,616 3,378 90 3,468
As at 31 December 2021 3,526 90 3,616 3,378 90 3,468
Accumulated amortisation and
impairment
As at 1 January 2021 — (89) (89) — (89) (89)
Amortisation charge — — — — — —
Exchange and other adjustments — (1) (1) — (1) (1)
As at 31 December 2021 — (90) (90) — (90) (90)
Net book value 3,526 — 3,526 3,378 — 3,378
Cost
As at 1 January 2020 3,526 90 3,616 3,378 90 3,468
As at 31 December 2020 3,526 90 3,616 3,378 90 3,468
Accumulated amortisation and
impairment
As at 1 January 2020 — (86) (86) — (86) (86)
Amortisation charge — (3) (3) — (3) (3)
As at 31 December 2020 — (89) (89) — (89) (89)
Net book value 3,526 1 3,527 3,378 1 3,379

As part of the Barclays Group strategy, internally generated software and other purchased software are held in Barclays Execution Services
Limited. Barclays Bank UK Group receives the required services from Barclays Execution Services Limited, which are charged on a cost plus
basis.
Goodwill
Testing goodwill for impairment involves a significant amount of judgement. Goodwill is allocated to CGUs for the purpose of impairment
testing. The review of goodwill for impairment involves calculating a value in use (VIU) valuation which is compared to the carrying value
of a CGU associated with the goodwill to determine whether any impairment has occurred. This includes the identification of independent
CGUs across the organisation and the allocation of goodwill to those CGUs.
The calculation of a value in use contains a high degree of uncertainty in estimating the future cash flows and the rates used to discount
them. Key judgements include determining the carrying value of the CGU, the cash flows and discount rates used in the calculation.
– The cash flow forecasts used by management involve judgement and are based upon a view of the future prospects of the business
and market conditions at the point in time the assessment is prepared. The estimation of pre-tax cash flows is sensitive to the periods
for which detailed forecasts are available and to assumptions regarding long-term sustainable cash flows.
– The discount rates applied to the future cash flows also involve judgement as they can have a significant impact on the valuation. The
discount rates used are compared to market participants to ensure that they are appropriate and based on an estimated cost of
equity for each CGU.
– The choice of a terminal growth rate used to determine the present value of the future cash flows of the CGUs is also a judgement
that can impact the outcome of the assessment. The terminal growth rate and discount rates used may vary due to external market
rates and economic conditions that are beyond management’s control.
Further details of some of the key judgements are set out below.
2021 impairment review

The 2021 impairment review was performed during Q4 2021. In comparison to the prior year, the macroeconomic outlook has improved,
with expectations of increased interest rates. However, unsecured balances are lower, reflecting reduced borrowing and higher repayments
by customers. These factors impact favourably and adversely on the operating environments of the CGUs. 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.
The 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 consider a market participant would require to hold and retain to support
business growth.
The goodwill held across the 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 5-year cash flows used in the calculation are based on the formally agreed medium term plans approved by the Board. These are
prepared using macroeconomic assumptions which management consider reasonable and supportable, and reflect business agreed
initiatives for the forecast period. The macroeconomic assumptions underpinning the medium term plan were determined in August 2021
and management has considered whether there are subsequent significant changes in those assumptions which would adversely impact
the results of the impairment review.
As required by IAS 36, all estimates of future cash flows exclude cash inflows or outflows that are expected to arise from restructuring
initiatives where a constructive obligation to carry out the plan does not yet exist.
In line with prior year treatment, the Education, Social Housing and Local Authority (ESHLA) portfolio has been excluded from the Business
Banking CGU cash flows. This is a legacy loan portfolio which was previously within the Non-Core bank and was not part of the business to
which the goodwill relates. As such, the cash flows relating to this portfolio have been excluded from the Business Banking VIU calculation.
The Personal Banking CGU cash flows reflect increases in the yield curve observed during the course of 2021 and have not been extended
to a sixth year. The 2020 impairment review used a sixth year to reflect an observed 15bp inflexion point in the yield curve which was
beyond the period of the medium term plan.
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 identified the cost of equity associated with market participants that closely resemble our CGUs and
adjusted them for tax to arrive at the pre-tax equivalent rate. A range of discount rates have been used across the CGUs ranging from
14.2% to 15.1% (2020: 13.5% to 13.8%).

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 UK Group operates. Inflation rates are used as an approximation of future growth rates and form the basis of the terminal growth
rates applied. The terminal growth rate used is 2.0% (2020: 2.0%).
Outcome of goodwill review

The Personal Banking and Business Banking retail banking CGUs carry the majority of the Group’s goodwill balance, predominantly as a
consequence of the Woolwich acquisition. The goodwill within Personal Banking was £2,718m (2020: £2,718m), of which £2,501m (2020:
£2,501m) was attributable to Woolwich, and within Business Banking was £629m (2020: £629m), fully attributable to Woolwich. The
recoverable amount for both Personal Banking and Business Banking have increased in comparison to the 2020 impairment review,
reflective of improvements in the interest rate and macroeconomic outlook.
Based on management’s plans and assumptions the value in use exceeds the carrying value of the CGUs and no impairment has been
indicated.
The outcome of the impairment review for Personal Banking and Business Banking are set out below:
Value in use Value in use

exceeding exceeding
carrying value carrying value
Cash generating unit Tangible equity Goodwill Intangibles Carrying value Value in use 2021 2020
£m £m £m £m £m £m £m
Personal Banking 5,194 2,718 — 7,912 10,018 2,106 582
Business Banking 1,459 629 — 2,088 5,669 3,581 706
Total 6,653 3,347 — 10,000 15,687 5,687 1,288
Sensitivity of key judgements

The CGUs are sensitive to possible adverse changes in the key assumptions that support the recoverable amount:
Cash Flows: The medium term plans used to determine the cash flows used in the VIU calculation rely on macroeconomic forecasts,
including interest rates, GDP and unemployment, and forecast levels of market and client activity. Interest rate assumptions impact planned
cash flows from both customer income and structural hedge contributions and therefore cash flow expectations are highly sensitive to
movements in the yield curve. The cash flows also contain assumptions with regards to the prudential and financial conduct regulatory
environment which may be subject to change. Given the current level of economic uncertainty, a 10% reduction in cash flows has been
provided to show the sensitivity of the outcome to a change in these key assumptions.
Discount rate: The discount rate should reflect the market risk-free rate adjusted for the inherent risks of the business it is applied to.
Management have identified discount rates for comparable businesses and consider these to be a reasonable estimate of a suitable market
rate for the profile of the business unit being tested. The risk that these discount rates may not be appropriate is quantified below and show
the impact of a 100 bps change in the discount rate.
Terminal growth rate: The terminal growth rate is used to estimate the cash flows into perpetuity based on the expected longevity of the
CGUs businesses. The terminal growth rate is sensitive to uncertainties in the macroeconomic environment. The risk that using inflation
data may not be appropriate for its determination is quantified below and shows the impact of a 100bps change in the terminal growth
rate.
Allocated capital rate: Tangible equity is allocated based on the level of risk weighted assets (RWAs) and capital required to be deployed in
the CGU which is dependent on the relative risk of businesses. The capital ratio used in determining the level of tangible equity allocated to
the CGU and its capital cash flows could move over time as a result of a change to the prudential regulatory environment or the risk profile
of the business. The impact of a 50bps increase in capital ratio is quantified below.
The sensitivity of the value in use to key judgements in the calculations is set out below:
Reduction in headroom Change required to reduce headroom to zero

50bps
100bps 100bps increase
Value in use increase in decrease in to 10%
Cash exceeding Terminal the terminal allocated reduction in Allocated
generating Carrying Value in carrying Discount growth discount growth capital forecasted Discount Terminal Capital
unit value use value rate rate rate rate rate cash flows rate growth rate rate Cash flows
£m £m £m % % £m £m £m £m % % % %
Personal
Banking 7,912 10,018 2,106 14.2 % 2.0 % (880) (606) (273) (1,134) 2.7 % (4.4)% 3.9 % (18.6)%
Total 7,912 10,018 2,106

Accruals, provisions, contingent liabilities and legal proceedings
The notes included in this section focus on the Barclays Bank UK 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.
21 Other liabilities

2021 2020 2021 2020
£m £m £m £m
Accruals and deferred income 293 323 278 306
Other creditors 1,146 1,188 1,112 999
Items in the course of collection due to other banks 97 30 97 30
Lease liabilities (refer to Note 19) 288 365 288 365
Other liabilities 1,824 1,906 1,775 1,700
22 Provisions
Accounting for provisions
The Barclays Bank UK 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 UK 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.

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 24 for more detail of legal,
competition and regulatory matters.

Undrawn
contractually Legal,
committed competition
Redundancy facilities and and
Onerous and guarantees Customer regulatory Sundry
a
contracts restructuring provided redress matters provisions Total
£m £m £m £m £m £m £m
Barclays Bank UK Group
As at 1 January 2021 16 63 293 422 1 85 880
Additions — 139 — 112 — 161 412
Amounts utilised (3) (18) — (250) — (97) (368)
Unused amounts reversed (13) (6) (257) (48) — (64) (388)
Exchange and other movements — (38) — — — 38 —
As at 31 December 2021 — 140 36 236 1 123 536
Barclays Bank UK PLC

As at 1 January 2021 16 63 293 406 1 78 857
Additions — 139 — 103 — 153 395
Amounts utilised (3) (18) — (235) — (92) (348)
Unused amounts reversed (13) (6) (257) (48) — (61) (385)
Exchange and other movements — (38) — — — 38 —
As at 31 December 2021 — 140 36 226 1 116 519
Note
a Undrawn contractually committed facilities and guarantees provisions are accounted for under IFRS 9.
Provisions expected to be recovered or settled within no more than 12 months after 31 December 2021 were £488m (2020: £826m) for
Barclays Bank UK Group and £471m (2020: £803m) for Barclays Bank UK PLC.
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, where 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 page 69 and 71.
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 UK Group’s business activities.
Legal, competition and regulatory matters

The Barclays Bank UK Group is engaged in various legal proceedings. For further information in relation to legal proceedings and discussion
of the associated uncertainties, please refer to Note 24.
Sundry provisions
This category includes provisions that do not fit into any of the other categories, such as fraud losses and dilapidation provisions.

23 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:

2021 2020 2021 2020
£m £m £m £m
Guarantees and letters of credit pledged as collateral security 440 500 440 500
Performance guarantees, acceptances and endorsements 150 150 150 150
Total contingent liabilities and financial guarantees 590 650 590 650
Standby facilities, credit lines and other commitments 59,237 65,910 59,237 65,995
Total commitments 59,237 65,910 59,237 65,995
Expected credit losses held against contingent liabilities and commitments equal £36m (2020: £293m) for Barclays Bank UK Group and
Barclays Bank UK PLC and are reported in Note 22.
Further details on contingent liabilities relating to legal and competition and regulatory matters can be found in Note 24.
24 Legal, competition and regulatory matters
The Barclays Bank UK 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 22, Provisions. We have not disclosed an estimate of the potential financial impact or effect
on the Barclays Bank UK 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 UK Group’s potential financial exposure in respect of those matters.
Investigation into UK cards’ affordability

The FCA has been investigating certain aspects of the affordability assessment processes used by Barclays Bank UK PLC and Barclays Bank
PLC for credit card applications made to Barclays’ UK credit card business. In October 2021, the FCA confirmed that this investigation was
closed with no further action.
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, 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. The loans were originally entered into with Barclays Bank PLC, but Barclays Bank UK PLC is now the lender of record.
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 UK Group’s operating results, cash flows or financial position.
General
The Barclays Bank UK Group is engaged in various other legal, competition and regulatory matters in the jurisdictions in which it operates.
The Barclays Bank UK Group is subject to legal proceedings brought by and against members of the Barclays Bank UK 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 UK 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

it is or has been engaged. The Barclays Bank UK 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 UK 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 UK PLC’s results, operations or cash flow 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.

Capital instruments, equity and reserves
The notes included in this section focus on the Barclays Bank UK Group’s loan capital and shareholders’ equity including issued share
capital, retained earnings and other equity balances. For more information on capital management and how the Barclays Bank UK Group
maintains sufficient capital to meet our regulatory requirements refer to page 53.
25 Subordinated liabilities
Accounting for subordinated liabilities
Subordinated liabilities are measured at amortised cost using the effective interest method under IFRS 9.

2021 2020
£m £m
As at 1 January 9,869 7,688
Issuances 1,025 3,694
Redemptions (1,116) (1,425)
Other (262) (88)
As at 31 December 9,516 9,869
Issuances comprise £1,025m of intra-group loans from Barclays PLC.
Redemptions comprise £1,116m of intra-group loans from Barclays PLC.
Other movements predominantly comprise foreign exchange movements and fair value hedge adjustments.
Subordinated liabilities include accrued interest and none of the subordinated liabilities are secured.
a
2021 2020
Initial call date Maturity date £m £m
Barclays Bank UK PLC notes issued intra-group to Barclays PLC
4.375% Fixed Rate Subordinated Notes (USD 1,250m) 2024 974 999
3.75% Fixed Rate Resetting Subordinated Callable Notes (GBP 500m) 2025 2030 482 503
5.20% Fixed Rate Subordinated Notes (USD 683m) 2026 516 532
4.836% Fixed Rate Subordinated Callable Notes (USD 800m) 2027 2028 624 650
5.088% Fixed-to-Floating Rate Subordinated Callable Notes (USD 200m) 2029 2030 154 161
3.564% Fixed Rate Resetting Subordinated Callable Notes (USD 1,000m) 2030 2035 697 718
Barclays Bank UK PLC intra-group loans from Barclays PLC

3.20% Fixed Rate Subordinated Loan (USD 1,350m) 2021 — 1,006
Various Fixed and Floating Rate Subordinated Loans 6,069 5,303
Total subordinated liabilities 9,516 9,869
Note
a Instrument values are disclosed to the nearest million.
Subordinated liabilities are issued by Barclays Bank UK PLC for the development and expansion of the business and to strengthen the
capital base. The principal terms of these liabilities are described below:
Currency and Maturity

In addition to the individual subordinated liabilities listed in the table, the £6,069m (2020: £5,303m) balance of intra-group loans is made
up of various fixed, fixed-to-floating and floating rate loans from Barclays PLC with notional amounts denominated in USD 6,677m, EUR
850m and GBP 400m, with maturities ranging from 2022 to 2041. Certain intra-group loans have a call date one year prior to their
maturity.
Subordination
All subordinated liabilities are issued intra-group to Barclays PLC. Both the subordinated notes and the subordinated loans rank behind the
claims of depositors and other unsecured unsubordinated creditors but before the claims of the holders of Barclays Bank UK PLC
equity. However, the subordinated notes rank behind the subordinated loans.
Interest
Interest on the floating rate loans is set by reference to market rates at the time of issuance and is fixed periodically in advance, based on
the related market rate.

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. After
the call date, 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.
Repayment
Those notes and loans with a call date are repayable at the option of Barclays Bank UK PLC on such call date in accordance with the
conditions governing the respective liabilities, some in whole or in part, and some only in whole, or otherwise on maturity. The remaining
instruments outstanding at 31 December 2021 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.
In certain cases, any repayments prior to maturity may require the prior consent of the PRA or BoE.
There are no committed facilities in existence at the balance sheet date which permit the refinancing of debt beyond the date of maturity.
26 Ordinary shares, share premium, and other equity
Called up share capital, allotted and fully paid
Total share
Number of Ordinary share Ordinary share capital and Other equity
shares capital premium share premium instruments
m £m £m £m £m
As at 1 January 2021 505 5 — 5 2,560
AT1 securities issuance — — — — —
AT1 securities redemption — — — — —
As at 31 December 2021 505 5 — 5 2,560
As at 1 January 2020 505 5 — 5 2,560

AT1 securities issuance — — — — —
AT1 securities redemption — — — — —
As at 31 December 2020 505 5 — 5 2,560
Ordinary shares
The issued ordinary share capital of Barclays Bank UK PLC, as at 31 December 2021, comprised 505m (2020: 505m) ordinary shares of
£0.01 each.
Other equity instruments

Other equity instruments of £2,560m (2020: £2,560m) include AT1 securities issued to Barclays PLC. Barclays PLC uses funds from its own
market issuance of AT1 securities to purchase AT1 securities from Barclays Bank UK 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 2021, there were no issuances of AT1 instruments (2020: no issuances) and no redemptions (2020: no redemptions).
AT1 equity instruments

2021 2020
Initial call date £m £m
AT1 equity instruments - Barclays Bank UK Group
7.25% Perpetual Subordinated Contingent Convertible Securities 2023 750 750
Total AT1 equity instruments 2,560 2,560

27 Reserves
Fair value through other comprehensive income reserve

The fair value through other comprehensive income reserve represents the changes in the fair value of 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.
Other reserves and other shareholders’ equity

Other reserves and other shareholders’ equity relate to the merger reserve for Barclays Bank UK Group and the Group Reconstruction Relief
for Barclays Bank UK PLC, in respect of the transfer of the UK banking business in 2018.

2021 2020 2021 2020
£m £m £m £m
Cash flow hedging reserve (431) 341 (431) 341
Other reserves and other shareholders' equity 89 89 191 191
Total (366) 473 (265) 575

Employee benefits
The notes included in this section focus on the costs and commitments associated with employing our staff.
28 Staff costs
Accounting for staff costs
The Barclays Bank UK 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 UK 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.
The accounting policy for share-based payments is included in Note 29.
2021 2020
£m £m
Performance costs 109 93
Salaries 751 798
Social security costs 94 95
a
Post-retirement benefits 151 146
Other compensation costs 51 68
Total compensation costs 1,156 1,200
Other resourcing costs

Outsourcing 46 32
Redundancy and restructuring 134 21
Temporary staff costs 45 43
Other 11 15
Total other resourcing costs 236 111
Total staff costs 1,392 1,311
Note
a Post-retirement benefits charge relates to £151m (2020: £146m) in respect of defined contribution schemes.
Participation in the UK Retirement Fund

As permitted under the Financial Services and Markets Act 2000 (Banking Reform) (Pensions) Regulations 2015, from 1 September 2017,
until late 2025, Barclays Bank UK PLC will participate as an employer in the UK Retirement Fund (UKRF). 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, Barclays Bank UK PLC would step in as principal employer of the UKRF. Barclays Bank PLC remains the
sponsoring employer of the UKRF.
Under IAS 19, the UKRF is a defined benefit plan that share risks between entities under common control. Barclays Bank PLC accounts for
the defined benefit obligation and Barclays Bank UK PLC recognises a cost equal to its contributions to the scheme. In accordance with
accounting standards, Barclays Bank UK PLC does not account for any potential additional liability to the scheme at the end of the
transitional phase.
For further information, please see Note 33 in the Barclays PLC 2021 Annual Report.

Employee benefits
29 Share-based payments
Accounting for share-based payments
The Barclays Bank UK 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 option pricing models to estimate the numbers of shares likely to vest. These take 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.
The charge for the year arising from share based payment schemes was as follows:
Charge for the year

2021 2020
£m £m
Deferred Share Value Plan / Share Value Plan 7 7
Others 19 24
Total equity settled 26 31
Cash settled — —
Total share based payments 26 31
The terms of the main current plans are as follows:
Share Value Plan (SVP)

The SVP was introduced 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, 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 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 Group Long Term Incentive Plan. A delivery of
upfront shares to ‘Material Risk Takers’ can be made as a Share Incentive Award (Holding Period).

Employee benefits
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:
2021 2020
Weighted Weighted Weighted Weighted
average fair average share Weighted Number of average fair average share Weighted Number of
value per price at average options/ value per price at average options/
award exercise/ remaining awards award exercise/ remaining awards
granted in release during contractual outstanding granted in release during contractual outstanding
year year life in years (000s) year year life in years (000s)
£ £ £ £
a,b
DSVP / SVP 1.52 1.76 2 11,780 1.06 1.22 2 12,848
a
Others 0.63-1.80 1.75-1.92 0-3 132,204 0.23-1.24 1.18-1.70 0-3 150,209
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 based on the market value at that date.
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:
a,b a,c
DSVP / SVP Others
Weighted average
Number (000s) Number (000s) ex. price (£)
2021 2020 2021 2020 2021 2020
Outstanding at beginning of year/
acquisition date 12,848 7,320 150,209 94,876 0.95 1.30
d
Transfers in the year (35) 404 (7,608) (80) — —
Granted in the year 2,805 8,401 14,073 112,749 1.43 0.84
Exercised/released in the year (3,731) (2,990) (10,734) (7,004) 1.39 1.22
Less: forfeited in the year (107) (287) (9,826) (45,329) 0.94 1.24
Less: expired in the year — — (3,910) (5,003) 1.67 1.39
Outstanding at end of year 11,780 12,848 132,204 150,209 0.95 0.95
Of which exercisable: — — 12,106 14,030 1.21 1.68
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 3,749,292). The
weighted average exercise price relates to Sharesave.
d Awards of employees transferred between Barclays Bank UK Group and the rest of the Group.
Awards and options granted to employees and former employees of Barclays Bank UK Group under the Barclays 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 Barclays Bank UK 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 2021 and 2020.
As at 31 December 2021, the total liability arising from cash-settled share based payments transactions was £nil (2020: £nil).

Scope of consolidation
The section presents information on the Barclays Bank UK Group’s interests in structured entities. Detail is also given on securitisation
transactions the Barclays Bank UK Group has entered into and arrangements that are held off-balance sheet.
30 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. Voting
rights may relate to administrate tasks only, with the relevant activities of the entity being 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 UK 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 UK Group has contractual arrangements which may require it to provide financial support to the following types of
consolidated structured entities:
Securitisation vehicles
The Barclays Bank UK Group uses securitisation as a source of financing and a means of risk transfer. Refer to Note 31 for further detail.
Unconsolidated structured entities

The term ‘unconsolidated structured entities’ refers to structured entities not controlled by the Barclays Bank UK Group, and are established
by the Barclays Bank UK 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 UK Group. Such interests include
holding of debt or equity securities, lending, loan commitments, financial guarantees and investment management agreements.
The Barclays Bank UK 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. Structured entities may take the
form of funds, trusts, securitisation vehicles, and private investment companies. The largest transactions for Barclays Bank UK Group
include holding notes issued by securitisation vehicles, loans to trusts, and facilitating customer requirements through funds. As at
31 December 2021, there were 191 (2020: 228) structured entities that Barclays Bank UK Group entered into transactions.
The Barclays Bank UK Group’s interests in structured entities are set out below, summarised by the nature of the interest and limited to
significant categories, based on maximum exposure to loss.
Summary of interests in unconsolidated structured entities
a
Lending Other Total
As at 31 December 2021 £m £m £m
Financial assets at fair value through the income statement 69 — 69
Other assets — 5 5
Total on-balance sheet exposures 314 5,246 5,560
Total off-balance sheet notional amounts 32 — 32
Maximum exposure to loss 346 5,246 5,592
Total assets of the entity 5,628 24,059 29,687
Financial assets at fair value through the income statement 83 — 83
Other assets — 5 5
Total on-balance sheet exposures 329 2,287 2,616
Total off-balance sheet notional amounts 24 — 24
Maximum exposure to loss 353 2,287 2,640
Total assets of the entity 5,813 21,973 27,786
Note
a None of the structured entities are Barclays Bank UK Group owned and not consolidated per IFRS 10 Consolidated Financial Statements.
Maximum exposure to loss

Unless specified otherwise below, the Barclays Bank UK 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.

Lending
The portfolio includes lending provided by the Barclays Bank UK 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 UK 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 period the Barclays Bank UK Group incurred an impairment charge of £3m
(2020:£1m) against such facilities.
Other
This includes interests in debt securities issued by securitisation vehicles and investment funds with interests restricted to management
fees based on 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 UK 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
2021, no assets were transferred to sponsored unconsolidated structured entities.
31 Securitisations
Accounting for securitisations

The Barclays Bank UK 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 UK 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 UK 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.
The Barclays Bank UK 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 UK 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:
Continuing involvement in financial assets that have been derecognised
In some cases, the Barclays Bank UK 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 UK Group’s
involvement with residential mortgage backed securities. Continuing involvement largely arises from providing financing into these
structures in the form of retained notes, which do not bear first losses.
The table below shows the potential financial implications of such continuing involvement:
Gain/(loss) from continuing

Continuing involvementa
involvement
Maximum
Carrying exposure to For the year Cumulative to
amount Fair value loss ended 31 December
Type of transfer £m £m £m £m £m
2021
Residential mortgage backed securities 497 497 497 — —
Total 497 497 497 — —
Note
a Assets which represent the Barclays Bank UK Group’s continuing involvement in derecognised assets are recorded in Loans and advances at amortised cost.

32 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 UK Group balance sheet, for example because Barclays 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 UK 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:

2021 2020
£m £m
Trading portfolio assets 77 267
Assets pledged 43,606 25,023
The following table summarises the transferred financial assets and the associated liabilities:

Transferred Associated
assets liabilities
£m £m
Repurchase agreements 30,369 (17,939)
Debt securities in issue 6,877 (4,968)
Derivative financial instruments 2,284 (2,284)
Other 4,076 (2,893)
43,606 (28,084)
Repurchase agreements 9,248 (7,136)
Debt securities in issue 8,367 (6,244)
Derivative financial instruments 2,747 (2,747)
Other 4,661 (2,276)
25,023 (18,403)
Barclays Bank UK Group has an additional £2.3bn (2020: £3.2bn) 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.
Collateral held as security for assets

Under certain transactions, including reverse repurchase agreements and stock borrowing transactions, Barclays Bank UK 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:

2021 2020
£m £m
Fair value of securities accepted as collateral 6,368 2,497
Of which fair value of securities re-pledged/transferred to others 985 1,298
Additional disclosure has been included in collateral and other credit enhancements (pages 61 to 65).

Other disclosure matters
The notes included in this section focus on related party transactions, Auditors’ remuneration, Directors’ remuneration and interest rate
benchmark reform. Related parties include any subsidiaries, associates, joint ventures and key management personnel.
33 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 UK PLC.
Subsidiaries
Transactions between Barclays Bank UK 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 UK Group’s financial statements.
Fellow subsidiaries
Transactions between the Barclays Bank UK Group and other subsidiaries of the parent company also meet the definition of related party
transactions.
Associates, joint ventures and other entities

There were no material related party transactions with associates, joint ventures or pension funds during the year.
Amounts included in the Barclays Bank UK Group’s financial statements, in aggregate, by category of related party entity are as follows:
Fellow
Parent subsidiaries
£m £m
For the year ended and as at 31 December 2021
Total income (289) 85
Credit impairment charges — —
Operating expenses (36) (2,343)
Total assets 16 733
Total liabilities 9,550 949
For the year ended and as at 31 December 2020
Total income (301) 103
Credit impairment charges — —
Operating expenses (40) (2,245)
Total assets 15 706
Amounts included in Barclays Bank UK PLC’s financial statements, in aggregate, by category of related party entity are as follows:
Fellow
Parent Subsidiaries subsidiaries
£m £m £m
Total assets 16 913 733
Total liabilities 9,550 550 945
Total assets 15 987 706
Total liabilities 9,588 559 1,664
It is the normal practice of Barclays Bank UK 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 UK PLC (directly or indirectly) and comprise the Directors and Officers of Barclays Bank UK PLC, certain direct
reports of the Chief Executive Officer and the heads of major business units and functions.

The Barclays Bank UK 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
2021 2020
£m £m
As at 1 January 3.6 2.1
a
Loans issued during the year 11.7 2.4
b
Loan repayments during the year (3.5) (0.9)
As at 31 December 11.8 3.6
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
2021 2020
£m £m
As at 1 January 3.0 3.2
a
Deposits received during the year 21.2 12.7
b
Deposits repaid during the year (20.6) (12.9)
As at 31 December 3.6 3.0
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 2021 were £0.3m (2020: £0.4m).
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 the awards made to individuals that have been approved by
the Board Remuneration Committee as part of the latest remuneration decisions. 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 deferred costs for prior year awards. Figures are provided for the period that
individuals met the definition of Key Management Personnel.
2021 2020
£m £m
Salaries and other short-term benefits 14.6 15.0
Pension costs 0.1 0.2
Other long-term benefits 2.0 2.3
Share-based payments 2.3 2.2
Employer social security charges on emoluments 2.6 2.7
Costs recognised for accounting purposes 21.6 22.4
Employer social security charges on emoluments (2.6) (2.7)
Other long-term benefits – difference between awards granted and costs recognised 0.6 (0.4)
Share-based payments – difference between awards granted and costs recognised 0.3 (0.3)
Total remuneration awarded 19.9 19.0
Disclosure required by the Companies Act 2006

The following information regarding the Barclays Bank UK PLC Board of Directors is presented in accordance with the Companies Act 2006:
2021 2020
£m £m
a
Aggregate emoluments 4.2 4.3
Note
a The aggregate emoluments include amounts paid for the 2021 year. In addition, deferred cash and share awards for 2021 with a total value at grant of
£1.5m (2020: £0.9m) will be made to Directors which will only vest subject to meeting certain conditions.
There were no pension contributions paid to defined contribution schemes on behalf of Directors (2020: £nil). There were no notional
pension contributions to defined contribution schemes.
As at 31 December 2021, there were no Directors accruing benefits under a defined benefit scheme (2020: nil).
Of the figures in the table above, the amounts attributable to the highest paid Director in respect of qualifying services are as follows:
2021 2020
£m £m
a
Aggregate emoluments 1.5 1.5
Note
a The aggregate emoluments include amounts paid for the 2021 year. In addition, deferred cash and share awards for 2021 with a total value at grant of
£1.0m (2020: £0.5m) will be made to 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 (2020: £nil). There
were no notional pension contributions to defined contribution schemes.
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 2021 to persons
who served as Directors during the year was £0.1m (2020: £0.1m). The total value of guarantees entered into on behalf of Directors during
2021 was £nil (2020: £nil).

34 Auditor’s remuneration
2021 2020
£m £m
Audit of the Barclays Bank UK Group's annual accounts 7 7
Other services:
a
Audit of the Company's subsidiaries 1 1
b
Other audit related fees 2 2
Total Auditor's remuneration 10 10
Notes
a Comprises the fees for the statutory audit of the subsidiaries 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.
35 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 “near Risk-Free Rates” (RFRs).
Pursuant to FCA announcements during 2021, panel bank submissions for all GBP, CHF LIBOR and Euro Overnight Index Average (EONIA)
LIBOR tenors ceased, and representative LIBOR rates also ceased after 31 December 2021. For USD, certain actively used tenors will
continue to be provided until June 2023; however, in line with the US banking regulators’ joint statement, the Barclays Bank UK Group
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 market making in support of client activity; or
transactions that reduce or hedge Barclays’ or any client of Barclays’ US dollar LIBOR exposure on contracts entered into before 1 January
2022.
The Barclays Bank UK Group’s exposure to rates subject to benchmark interest rate reform has been predominantly to GBP and USD LIBOR
and Euro Overnight Index Average (EONIA). In GBP LIBOR, with the exception of a limited number of small exposures with retail customers,
exposure is related to ESHLA (Education, Social Housing and Local Authority) clients and the derivative hedging thereof. The majority of
these GBP LIBOR exposures have RFR fallbacks and will convert to SONIA at the first interest reset in 2022 Derivative exposures are
represented as gross notional contract amounts. However, net LIBOR derivative exposures are small. Non-derivative exposures include
exposures related to the ESHLA portfolio. Retail lending and mortgage exposure to LIBOR in Barclays Bank UK Group is minimal. Following
transition activity in late 2021 and early 2022, GBP, USD (one week and two month tenors), CHF LIBOR and EONIA positions (“2021
scope”) have transitioned onto RFRs.
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 a credit spread over the RFRs. 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, with oversight from the Barclays Group Finance Director. The
Transition Programme spans all business lines and has cross-functional governance which includes Legal, Compliance, Conduct Risk, Client
Engagement and Communications, Risk, and Finance. The Transition Programme aims to drive strategic execution, and identify, manage
and resolve key risks and issues as they arise. Barclays’ transition plans primarily focus on G5 currencies while providing 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 and the Barclays
Group Finance Director. Barclays performs a prominent stewardship role to drive orderly transition via our representation on official sector
and industry working groups across all major jurisdictions and product classes. Additionally, the Barclays Group Finance Director is Chair of
the UK’s ‘Working Group on Sterling Risk-Free Reference Rates’ (UK RFRWC), whose mandate is to catalyse a broad-based transition to
using SONIA (‘Sterling Overnight Index Average’), as the primary sterling interest rate benchmark in bond, loan and derivatives markets.
Approaches to transition exposure expiring post the expected end dates for LIBOR vary by product and nature of counterparty. The
Barclays Group has actively engaged with the counterparties to transition or include appropriate fallback provisions and transition
mechanisms in its floating rate assets and liabilities with maturities after 2021, when relevant IBORs excluding USD LIBOR cease to be
published. The fallback will provide the relevant replacement rate. In the case of the ISDA Protocol it is the RFR plus a credit adjusted spread
that should be used post cessation or pre-cessation of the relevant IBOR. For the derivative population, adherence to the ISDA IBOR
Fallbacks Protocol has provided Barclays with an efficient mechanism to amend outstanding trades to incorporate fallbacks. Beyond the
ISDA IBOR Fallbacks Protocol, other options have included terminating or bilaterally agreeing new terms with counterparties. Derivative

contracts facing central clearing counterparties have followed a market-wide, standardised approach to reform through a series of CCP-led
conversions.
The FCA has authorised broad usage of synthetic LIBOR as a temporary solution for the ‘tough legacy’ population of unremediated
contracts for GBP. Given cleared derivatives for the 2021 scope transitioned via CCP driven conversions, synthetic LIBOR does not apply in
this context. Barclays’ strategy remains to actively transition LIBOR exposure where viable, and/or to implement and utilise robust
contractual fallbacks where possible. Where contracts remain unremediated, they may be able to utilise synthetic LIBOR on a temporary
basis for 1, 3 and 6 month tenors of GBP LIBOR to assist the transition of certain exposures. Barclays will continue to monitor, assess and
limit the reliance on synthetic LIBOR.
As announced by the FCA on 5 March 2021, USD LIBOR tenors (except 1 week and 2 month tenors) will cease to be representative from 30
June 2023. As detailed above, the key area of focus for transition prior to 2022 was on the other non-USD IBOR currency-tenors that ceased
to be published at the end of 2021. Clients and colleagues have been notified that we have prohibited entering into new USD LIBOR
transactions (with narrow permitted exceptions) from 1 January 2022 in line with regulatory expectations.
Progress made during 2021
During 2021, the Barclays Bank UK Group delivered RFR product capabilities and alternatives to LIBOR across loans, bonds and derivatives
required for LIBOR cessation to support transition of legacy contracts. Barclays Bank UK Group has transitioned the majority (by gross
notional exposure, measured at year-end 2020) of legacy positions in those rates within the 2021 scope, onto new RFRs in line with official
sector expectations and milestones. This has been achieved through bilateral negotiation of contracts with clients, including the use of
appropriate fallback provisions (which became effective post 31 December 2021) and taking part in large scale transition events at the
London Clearing House (LCH). In relation to those contracts yet to be transitioned, we remain in active dialogue with clients. Barclays Bank
UK Group delivered technology and business process changes required to ensure operational readiness in preparation for LIBOR cessation
and transitions to RFRs for those benchmark rates ceasing at the end of 2021. Whilst the majority of IBOR exposures have moved to RFRs,
where appropriate other rates such as fixed rates or Bank of England base rates have also been used.
Risks to which the Barclays Bank UK Group is exposed as a result of the transition
Global regulators and central banks in the UK, US and EU 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. Specifically, regulators in the UK, US and EU have directed that certain non-US dollar LIBOR tenors cease at the
end of 2021. 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 UK Group, in respect of any financial
instruments linked to, or referencing, any of these benchmark interest rates.
The Barclays Bank UK Group predominantly offers products which reference central bank rates rather than LIBOR or other indices which
are likely to be subject to reform. Consequently, the product offering and business model are unlikely to be significantly affected.
Nevertheless, there are other ways the Barclays Bank UK Group could be affected.
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 amount of interest payable that are included in the Barclays Bank UK Group’s
financial assets and liabilities) that use these reference rates and indices, and present a number of risks for the Barclays Bank UK 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 UK Group faces conduct risks. These may lead to customer complaints, regulatory sanctions or reputational
impact if the Barclays Bank UK 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 UK 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 UK Group’s preparation and readiness for the replacement of
LIBOR with alternative RFRs.
• Financial risk: the valuation of certain Barclays Bank UK Group’s financial assets and liabilities may change. Moreover, transitioning
to alternative RFRs may impact the ability of members of the Barclays Bank UK 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 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 UK Group’s cash flows.
• 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 UK 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 UK 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 UK Group’s financial results and performance.
Any of these factors may have a material adverse effect on the Barclays Bank UK Group’s business, results of operations, financial
condition, prospects and reputation, although a number of the above risks in relation to transition of legacy 2021 scope onto RFRs have
been substantially mitigated.
The Barclays Bank UK Group does not expect material changes to its risk management approach and strategy as a result of interest rate
benchmark reform.
The following table summarises the significant exposures impacted by the interest rate benchmark reform:
GBP LIBOR USD LIBOR CHF LIBOR Total

Non-derivative financial assets
Loans and advances at amortised cost 2,404 11 7 2,422
Financial assets at fair value through the income statement 84 — — 84
Financial assets at fair value through other comprehensive income — — — —
Non-derivative financial assets 2,488 11 7 2,506
Equity
Other equity instruments — 148 — 148
a
Standby facilities, credit lines and other commitments 2,396 — — 2,396
Note
a The Barclays Bank UK loans portfolio includes facilities that provide clients with the flexibility to borrow across a range of different interest rate options,
including some that are not associated with benchmark reforms such as fixed rate interest. There has been a change to how the drawn amounts on these
facilities are reported in 2021, loans drawn on these facilities against interest rates that are not linked to benchmark reforms have been treated as undrawn
exposures. This has resulted in an increase in GBP LIBOR exposure of £1.9bn. 2020 comparatives have not been restated to reflect this change.
GBP LIBOR USD LIBOR CHF LIBOR Total

Loans and advances at amortised cost 10,861 119 7 10,987
Financial assets at fair value through the income statement 2,306 — — 2,306
Financial assets at fair value through other comprehensive income — 8 — 8
Non-derivative financial assets 13,167 127 7 13,301
Equity
Other equity instruments (1,375) (1,161) — (2,536)
Standby facilities, credit lines and other commitments 776 2 — 778
The table above represents the exposures to interest rate benchmark reform by balance sheet account, which have yet to transition. The
exposure disclosed is for positions with contractual maturities after 31 December 2021 (apart from USD, which is for maturities after 30
June 2023). Balances reported at amortised cost are disclosed at their gross carrying value and do not include any expected credit losses
that may be held against them.

The following table represents the derivative exposures to interest rate benchmark reform, which have yet to transition:
GBP LIBOR USD LIBOR EONIA Total

Derivative notional contract amount
OTC interest rate derivatives 3,731 — — 3,731
OTC interest rate derivatives - cleared by central counterparty — 16,670 — 16,670
OTC foreign exchange derivatives — — — —
Derivative notional contract amount 3,731 16,670 — 20,401
GBP LIBOR USD LIBOR EONIA Total

OTC interest rate derivatives 3,693 464 — 4,157
OTC interest rate derivatives - cleared by central counterparty 131,916 18,067 14,400 164,383
OTC foreign exchange derivatives 400 386 — 786
Derivative notional contract amount 136,009 18,917 14,400 169,326
The table above represents the derivative exposures to interest rate benchmark reform, which have yet to transition. The exposure
disclosed is for positions with contractual maturities after 31 December 2021 (apart from USD, which is for maturities after 30 June 2023).
Derivatives are reported by using the notional contract amount and where derivatives have both pay and receive legs with exposure to
benchmark reform, such as cross currency swaps, the notional contract amount is disclosed for both legs. As at 31 December 2021, there
were £nil (2020: £393m) cross currency swaps where both the pay and receive legs are impacted by interest rate benchmark reform.
The Barclays Bank UK Group also had £nil (2020: £5bn) of Barclays issued debt retained by the group, impacted by the interest rate
benchmark reform, predominately in GBP LIBOR.
Fallback clauses
The 31 December 2021 exposure has 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 transition to an automatically selected rate. One of the most
commonly used is the ISDA 2020 IBOR Protocol published in October 2020 which enabled market participants to incorporate fallback
provisions into legacy non-cleared derivatives and certain non-derivatives transactions. Market participants who have adhered to the ISDA
2020 IBOR Protocol agree, between adhering parties, that their legacy contracts will be amended to include the relevant fallback provisions.
In addition to this, ISDA developed bilateral Swap Rate Fallbacks templates for GBP Swap Rate bilateral derivative trades with the GBP ICE
Swap Rate fallback provisions being published in August 2021. Whilst the fallback provisions have been applied to the majority of trades,
with some limited exceptions being worked through, the switch to the replacement rate as a result of fallback provision inclusion may not
take place until the next rate reset post the cessation or pre-cessation event.
The following tables present a breakdown of the exposures to IBOR reform (excluding USD LIBOR) with fallbacks in place and those
without.
With appropriate fallback clause Without appropriate fallback clause

GBP LIBOR CHF LIBOR Total GBP LIBOR CHF LIBOR Total
Loans and advances at amortised cost 2,199 5 2,204 205 2 207
Financial assets at fair value through the income 84 — 84 — —
Non-derivative financial assets 2,283 5 2,288 205 2 207
Standby facilities, credit lines and other commitments 517 — 517 1,879 — 1,879
The majority of the remaining exposures without fallbacks in place are either facilities where LIBOR is not primarily referenced in the
ordinary course of the contract, or syndicated facilities where the transition is led by a third party agent. Work is ongoing with clients and
agents to transition facilities or insert fallbacks prior to the next rate reset. There may be some scenarios where synthetic LIBOR is
temporarily used whilst Barclays Bank UK Group continues to work with the client to remediate their exposures, with little expectation of
longer term usage.
With appropriate fallback clause Without appropriate fallback clause

GBP LIBOR EONIA Total GBP LIBOR EONIA Total
OTC interest rate derivatives 3,731 — 3,731 — — —
All derivative exposures at year-end have robust fallbacks in place via the ISDA IBOR Fallbacks Protocol.

36 Barclays Bank UK PLC (the Parent company)
The investment in subsidiaries of £432m (December 2020: £441m) predominantly relates to investments in Barclays Insurance Services
Company Limited, Barclays Investment Solutions Limited and Barclays Asset Management Limited. At the end of each reporting period an
impairment review is undertaken in respect of investment in 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 calculation uses future years forecast profits from financial budgets approved
by management as an approximation of future cash flows. The investment in FirstPlus Financial Group Limited of £14m held by Barclays
Bank UK PLC showed a VIU of £5m resulting in an impairment being recognised of £9m. These cash flows are discounted using a pre-tax
discount rate of 18.0% (2020: 13.5%). The recoverable amount was higher than the carrying value of all other investments in ordinary
shares held by Barclays Bank UK PLC.
37 Related undertakings
The Barclays Bank UK PLC Group’s corporate structure consists of a number of related undertakings. A full list of these undertakings, the
country of incorporation and the ownership of each share class is set out below. The information is provided as at 31 December 2021.
The entities are grouped by the countries in which they are incorporated. The profits earned by the activities of Barclays PLC Group entities
are in some cases taxed in countries other than the country of incorporation. Barclays PLC 2021 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 consolidated by Barclays Bank UK PLC and the share capital
disclosed comprises ordinary and/or common shares, 100% of the nominal value of which is held by Barclays Bank UK PLC.
Notes
A. Directly held by Barclays Bank UK PLC
B. Partnership Interest
C. A Ordinary Shares
Wholly owned subsidiaries Note
United Kingdom
– 1 Churchill Place, London, E14 5HP
Barclays Asset Management Limited A
Barclays Direct Investing Nominees Limited
Barclays Financial Planning Nominee Limited
Barclays Global Shareplans Nominee Limited
Barclays Insurance Services Company Limited A
Barclays Investment Solutions Limited A
Barclays SAMS Limited A
Barclays Singapore Global Shareplans Nominee Limited
Barclayshare Nominees Limited
FIRSTPLUS Financial Group Limited A
Solution Personal Finance Limited A
Woolwich Homes Limited A
– Aurora Building, 120 Bothwell Street,
Glasgow, G2 7JS
R.C. Greig Nominees Limited
Other Related Undertakings

Unless otherwise stated, the undertakings below are consolidated and the share capital disclosed comprises ordinary and/or common
shares which are held by subsidiaries of the Barclays Bank UK Group. The Barclays Bank UK Group’s overall ownership percentage is
provided for each undertaking.
Other Related Undertakings % Note

United Kingdom
– 1 Churchill Place, London,
E14 5HP
Barclaycard Funding PLC 75.00 A, C
Barclays Covered Bond Funding LLP (In Liquidation) 50.00 A, B
Barclays Covered Bonds Limited Liability Partnership 50.00 A, B

Joint Ventures
The related undertaking below is a Joint Venture in accordance with s. 18, Schedule 4, The Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008 and is proportionally consolidated.
Joint Venture % Note

United Kingdom
– All Saints Triangle,
Caledonian Road,
London, N1 9UT
Vaultex UK Limited 50.00 A
Joint management factors

The Joint Venture board comprises two Barclays representative directors, two Joint Venture partner directors and three non Joint Venture
partner directors. The board is responsible for setting the company strategy and budgets.

Notes
The term Barclays Bank UK Group refers to Barclays Bank UK PLC together with its subsidiaries. Unless otherwise stated, the income
statement analysis compares the year ended 31 December 2021 to the corresponding twelve months of 2020 and balance sheet analysis
as at 31 December 2021 with comparatives relating to 31 December 2020. The abbreviations ‘£m’ and ‘£bn’ represent millions and
thousands of millions of Pounds Sterling 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/latest-
financial-results.
The information in this document, which was approved by the Board of Directors on 22 February 2022, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2021, 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.
Barclays Bank UK Group is an issuer in the debt capital markets and meets with investors via formal road-shows and other ad hoc
meetings. Consistent with its usual practice, Barclays Bank UK Group expects that from time to time over the coming half year it will meet
with investors to discuss these results and other matters relating to the Barclays Bank UK Group.
Forward-looking statements
This document contains certain forward-looking statements with respect to the Barclays Bank UK Group. Barclays Bank UK 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. These 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 members of the
management of the Barclays Bank UK Group (including, without limitation, during management presentations to financial analysts) in
connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or
relating to the Barclays Bank UK Group’s future financial position, income growth, assets, impairment charges, provisions, business
strategy, capital, leverage and other regulatory ratios, capital distributions (including dividend pay-out ratios and expected payment
strategies), projected levels of growth in the banking and financial markets, projected costs or savings, any commitments and targets,
(including, without limitation, ESG commitments and targets), estimates of capital expenditures, plans and objectives for future operations,
projected employee numbers, IFRS impacts and other statements that are not historical fact. By their nature, forward-looking statements
involve risk and uncertainty because they relate to future events and circumstances. The 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; the development of standards and interpretations under IFRS, including evolving practices with regard to the interpretation
and application of accounting and regulatory standards, emerging and developing ESG reporting standards, the outcome of current and
future legal proceedings and regulatory investigations; future levels of conduct provisions; the policies and actions of governmental and
regulatory authorities; the Barclays Bank UK Group’s ability along with government and other stakeholders to measure, manage and
mitigate the impacts of climate change effectively; environmental,social and geopolitical risks; and the impact of competition. In addition,
factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules applicable to past,
current and future periods; macroeconomic and business conditions in the UK and any systemically important economy which impacts the
UK; the effects of any volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects
of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit
ratings of any entity within the Barclays Bank UK Group or any securities issued by such entities; 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 the disruption that may subsequently result in the UK; the risk of cyber-attacks, information or security
breaches or technology failures on the Barclays Bank UK Group’s reputation, business or operations; and the success of future acquisitions,
disposals and other strategic transactions. A number of these influences and factors are beyond the Barclays Bank UK Group’s control. As a
result, the Barclays Bank UK Group’s actual financial position, future results, capital distributions, capital, leverage or other regulatory ratios
or other financial and non-financial metrics or performance measures or ability to meet commitments and targets may differ materially
from the statements or guidance set forth in the Barclays Bank UK Group’s forward-looking statements.
Subject to Barclays Bank UK Group’s obligations under the applicable laws and regulations of any relevant jurisdiction, (including, without
limitation, the UK), 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.

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Barclays Bank UK PLC

Environment, Social and Governance Report 13

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

Market and operating environment

We are focused on the following areas:

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

Sustainability and Social Purpose

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

Growing with society

We have a strategy, in three parts, to put that ambition into action:

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

Enterprise Risk Management Framework

Three lines of defence

Monitoring the risk profile

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

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

Financial performance measures

Barclays Bank UK Group results 2021 2020

Income statement commentary

Total income increased 1% to £6,482m, consisting of:

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

Balance sheet information

Balance sheet commentary

As at 31 December 2021 2020

Non-financial performance measures

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

The Barclays Mindset

Hiring great people

Developing people for the future

Building a supportive and inclusive culture

Beyond the COVID-19 pandemic

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

Listening to colleagues and keeping them informed

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

Section 172(1) Statement

How does the Board engage with stakeholders?

Engagement in action: evolving our strategy

• Providing exceptional service and guidance to customers

Customers and clients

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

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

Achieving net zero operations

Reducing our financed emissions

Financing the transition

Barclays Green Home Mortgages

Banking for Impact on Climate and Agriculture

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

Basic current account

Barclays mortgages and first-time buyers

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

Economic crime and scams

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

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

Our purpose and response to the pandemic

Risk and control

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

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

Board Board Audit Board Board Board Risk

David Thorburn (resigned 3 February 2022) M M M C