Barclays PLC Sponsored ADR

Company Overview

Business Model: Barclays PLC is a global financial services provider incorporated in England, with its principal executive offices in London. The company is engaged in retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services, generating revenue through a diversified portfolio of financial products and services across various customer segments.

Market Position: Barclays PLC is a large accelerated filer and a well-known seasoned issuer. Its Investment Bank ranks 6th in Global Markets and Investment Banking, with its research team rated #4 overall globally and #3 in developed markets by Extel. Barclays UK Corporate Bank increased its lending market share by 1% to 9.6%. The Barclays US Consumer Bank holds approximately 3% of the US credit card market. Barclays UK achieved a Net Promoter Score (NPS) of +25, its highest since tracking began, while Barclays UK Corporate Bank reported an overall client satisfaction score of 66%, up 4 percentage points from 2024.

Recent Strategic Developments: Key strategic initiatives in 2025 included the acquisition of the General Motors co-branded credit card portfolio in August, adding £1.3 billion to gross loans, and the completion of the Tesco Bank acquisition in November 2024. The company also entered an agreement to acquire Best Egg. Conversely, Barclays PLC disposed of its German consumer finance business and its joint venture interest in Entercard Group AB in Q1 2025. Barclays Partner Finance strategically reduced its total exposure to £1.2 billion. Barclays Bank Ireland PLC initiated a plan to re-domicile its registered office from Dublin to Paris, changing its corporate form to a Societas Europaea (to be named Barclays Europe SE), expected to complete in Q4 2026. The company also announced a partnership with Brookfield in April 2025 for its payment acceptance business within Barclays UK Corporate Bank. Innovation efforts include the introduction of an AI-powered Help Hub Assistant in Barclays UK, the use of M365 Copilot by colleagues, and the deployment of BARXBot, a client-facing GenAI chatbot in Global Markets.

Geographic Footprint: Barclays PLC's principal executive offices are located in London, England. Based on office location, the United Kingdom generated £15,811 million in income, Americas (primarily the United States) £9,541 million, Europe £2,269 million, Asia £1,433 million, and Africa and Middle East £86 million in 2025. The company's global workforce is distributed with 48% in the UK, 36% in APAC, 12% in the Americas, and 4% in CEME. Barclays Private Bank and Wealth Management maintains an international presence across the UK, Europe, Middle East, and Asia, with a Singapore booking centre planned for 2026, operating in jurisdictions including Ireland, the UK, Channel Islands, Switzerland, India, South Africa, Dubai International Financial Centre, Monaco, and Singapore.

Cross-Border Operations: Barclays PLC operates through a network of key international subsidiaries including Barclays Bank PLC (UK), Barclays Bank UK PLC (UK), Barclays Bank Ireland PLC (Ireland), Barclays Capital Inc. (US), Barclays Capital Securities Limited (UK), Barclays Securities Japan Limited (Japan), Barclays US LLC (US), and Barclays Bank Delaware (US). The company also holds interests in joint ventures such as Vaultex UK Limited (50% held) and Female Innovators Lab L.P. (60% held). Strategic partnerships for co-branded credit cards include Wyndham Hotels & Resorts, Upromise, Carnival, Princess, and Holland America. The company navigates extensive multi-jurisdictional regulatory frameworks, including those in the UK (PRA, FCA, FPC, PSR), EU (CBI, ECB, ACPR, Autorité de Marchés Financiers, SRB), and US (FRB, NYSDFS, FDIC, CFPB, SEC, FINRA, CFTC, NFA). Financial statements are prepared in accordance with IFRS as issued by the International Accounting Standards Board.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: Not explicitly stated, but derived from income and expenses.
• Operating Margin: 34.9% (2024: 37.6%)
• Net Margin: 21.2% (2024: 20.0%)
• Return on Equity (RoE): 9.8% (2024: 9.1%)
• Return on Tangible Equity (RoTE): 11.3% (2024: 10.5%)
• Cost to income ratio: 61% (2024: 62%)
• Effective tax rate: 21.1% (2024: 21.6%)

Investment in Growth:

• R&D Expenditure: £834m (2025) capitalised as internally generated software (2.9% of revenue).
• Capital Expenditures: £1,859m (2024: £1,574m) for property, plant, and equipment and intangible assets.
• Strategic Investments: Barclays Climate Ventures deployed £71m in 2025, part of a mandate to invest up to £500m by end of 2027.

Currency Impact Analysis:

• The year-end USD exchange rate was 1.34 (2024: 1.25), and the EUR exchange rate was 1.15 (2024: 1.21), indicating a stronger sterling against the US dollar.
• Total structural currency exposure net of hedging instruments decreased to £17.6 billion (2024: £18.5 billion).
• Foreign currency net investments decreased to £40.6 billion (2024: £41.6 billion), primarily due to a £1.6 billion decrease in USD, partially offset by a £0.6 billion increase in EUR.
• Hedges (excluding economic hedges) associated with these investments decreased to £15.1 billion (2024: £16.2 billion).
• The Group's functional currency is not explicitly stated, but financial statements are presented in GBP in accordance with IFRS.

Business Segment Analysis

Barclays UK

Financial Performance:

• Income: £8,708m (+5% YoY)
• Profit before tax: £3,413m (-5% YoY)
• Operating expenses: £4,900m (+14% YoY)
• RoE: 15.5% (2024: 16.9%)
• RoTE: 20.7%
• Loans and advances to customers: £216.5bn (2024: £207.7bn)
• Customer deposits: £244.6bn (2024: £244.2bn)

Product Portfolio:

• Offers retail banking, credit cards (Barclaycard), mortgages, and business banking services.
• Brands include Barclaycard, Tesco Bank, Kensington Mortgages, Amazon, and IAG Loyalty.
• Mortgage completions increased by 42% on 2024 to 146,000.
• Loans acquisitions were up 4% year-on-year.
• Over one million new Barclaycard customers were acquired.
• £3 billion was lent to small businesses through Business Banking.
• £2.4 billion was lent through Green Home Mortgages in 2025, with over £7.1 billion since inception.

Market Dynamics:

• Serves over 20 million customers, with over 13 million digitally active.
• Achieved an NPS of +25, the highest since tracking began.
• Supported over 50,000 first-time buyer customers, representing approximately 35% of gross lending.
• Fraud detection systems check over 450 million payments monthly.

Geographic Revenue Distribution:

• United Kingdom: Primary market, contributing significantly to Group income.

Barclays UK Corporate Bank

Financial Performance:

• Income: £2,064m (+16% YoY)
• Profit before tax: £970m (+33% YoY)
• Operating expenses: £1,100m (+10% YoY)
• RoE: 18.9% (2024: 16.0%)
• RoTE: 18.9%
• Loans and advances to customers: £30.0bn (2024: £25.4bn)
• Deposits: £88.7bn (2024: £83.1bn)

Product Portfolio:

• Provides banking services and lending to corporate clients.
• Achieved total loan growth of £4.6 billion.

Market Dynamics:

• Serves over 13,000 businesses.
• Increased its lending market share by 1% to 9.6%.
• Approximately 580 new-to-bank clients contributed to about 50% of the lending increase.
• Client interactions self-served reached approximately 50% (2024: c.40%).
• Overall client satisfaction score was 66%, up 4 percentage points from 2024.
• Partnered with Brookfield in April 2025 for its payment acceptance business.

Geographic Revenue Distribution:

• United Kingdom: Primary market.

Barclays Private Bank and Wealth Management

Financial Performance:

• Income: £1,380m (+5% YoY)
• Profit before tax: £375m (-2% YoY)
• Operating expenses: £1,000m (+11% YoY)
• RoE: 24.3% (2024: 25.7%)
• RoTE: 26.3%
• Assets under management: grew by £5.2bn to £52.9bn.
• Client assets and liabilities: increased by £18.7bn to £227.6bn.
• Net new assets under management: £3.3bn (2024: £3.7bn).

Product Portfolio:

• Offers private banking, wealth management, and digital investing services.
• Launched approximately 65,000 new UK Digital Investing accounts in 2025, an 11% YoY increase and 169% increase vs 2023.

Market Dynamics:

• Recognized with awards such as Best Stocks & Shares ISA Provider (Moneyfacts) and 'Value for Money' (Boring Money).

Geographic Revenue Distribution:

• International presence: Operates in the UK, Europe, Middle East, and Asia, with a Singapore booking centre planned for 2026.
• Jurisdictions: Ireland, UK, Channel Islands, Switzerland, India, South Africa, Dubai International Financial Centre, Monaco, Singapore.

Barclays Investment Bank

Financial Performance:

• Income: £13,055m (+11% YoY)
• Profit before tax: £4,614m (+22% YoY)
• Operating expenses: £8,100m (+3% YoY)
• RoE: 10.6% (2024: 8.5%)
• RoTE: 10.6%
• Cost-to-income ratio: 62%.
• Risk-Weighted Assets (RWAs): stable for the fourth consecutive year, representing 55% of total Group RWAs.
• Global Markets income: £8,654m (+15% YoY), with FICC income up 16% to £5,429m and Equities income up 12% to £3,225m.
• Investment Banking income: £4,401m (+3% YoY), despite a 2% decrease in Banking fees and underwriting income and a 21% decline in Equity Capital Markets fees.
• International Corporate Bank (ICB) revenues: up 10% year on year to £1,937m.

Product Portfolio:

• Provides global markets, investment banking, and international corporate banking services.
• Project finance activities have grown threefold since 2020.

Market Dynamics:

• Ranked 6th in Global Markets and Investment Banking.
• Its research team is ranked #4 overall globally and #3 in developed markets by Extel.
• Recognized as #1 in UK Sustainable Labelled Bonds and #2 in 2025 Global Corporate Sustainable Labelled Bonds by Dealogic.
• US deposits in the International Corporate Bank increased by approximately 23% year on year.

Geographic Revenue Distribution:

• Global: Significant operations across Americas, UK/Europe, and Asia.

Barclays US Consumer Bank

Financial Performance:

• Income: £3,681m (+11% YoY)
• Profit before tax: £515m (+26% YoY)
• Operating expenses: £1,600m (stable YoY)
• RoE: 9.5% (2024: 8.1%)
• RoTE: 11.0% (2024: 9.1%)
• Cost to income ratio: 45% (2024: 49%)
• Net interest income: £2,820m (+6% YoY), with a net interest margin of 11.14% (2024: 10.65%).
• Credit impairment charges: £1,521m (2024: £1,293m), driven by the GM portfolio acquisition and US macroeconomic uncertainty.
• US cards 30-day arrears: 3.0% (stable YoY).
• US cards 90-day arrears: 1.6% (stable YoY).
• End net receivables: $36.6bn (2024: $33.1bn).

Product Portfolio:

• Specializes in US credit cards and consumer lending.
• Launched a new co-branded card programme with General Motors (GM).
• Acquired $1.6 billion in receivables.
• Extended partnerships with Wyndham Hotels & Resorts, Upromise, Carnival, Princess, and Holland America.
• Entered an agreement to acquire Best Egg.

Market Dynamics:

• Holds approximately 3% of the US credit card market share.
• Acquired three million new customers organically in 2025.
• Maintained an average FICO® score of 757 for its portfolio.
• Retail deposit balances grew 20% year on year, with core deposit funding increasing from 64% to 69%.
• Achieved a transactional NPS (tNPS) of 63 for digital services and 52 for contact centre agent servicing.
• Digital engagement reached 96.2% of customers, with mobile app users increasing by 5.5 percentage points year on year.

Geographic Revenue Distribution:

• United States: Primary market.

International Operations & Geographic Analysis

Revenue by Geography:

International Business Structure:

• Subsidiaries: Key international subsidiaries include Barclays Bank PLC (UK), Barclays Bank UK PLC (UK, ring-fenced), Barclays Bank Ireland PLC (Ireland), Barclays Capital Inc. (US), Barclays Capital Securities Limited (UK), Barclays Securities Japan Limited (Japan), Barclays US LLC (US), and Barclays Bank Delaware (US). Barclays Bank Ireland PLC is a significant institution under direct ECB supervision.
• Joint Ventures: The Group holds a 50% interest in Vaultex UK Limited and a 60% interest in Female Innovators Lab L.P.
• Licensing Agreements: The US Consumer Bank has extended co-branded card partnerships with entities such as Wyndham Hotels & Resorts, Upromise, Carnival, Princess, and Holland America.
• Barclays Bank Ireland PLC is undertaking a plan to re-domicile its registered office from Dublin to Paris and change its corporate form to a Societas Europaea, to be named Barclays Europe SE, with completion expected in Q4 2026.

Cross-Border Trade:

• Export Markets: Not explicitly detailed in the filing.
• Import Dependencies: Not explicitly detailed in the filing.
• Transfer Pricing: Transfer pricing is identified as a component of international tax strategy and a potential risk.

Capital Allocation Strategy

Shareholder Returns:

• Total payout for 2025 was £3.7 billion, representing a 25% increase year-on-year.
• Share Repurchases: In 2025, Barclays PLC repurchased 635,700,571 ordinary shares for £2,220 million, representing approximately 4.6% of issued share capital, which were subsequently cancelled. Total share repurchases for 2025 amounted to £2,241 million (2024: £1,760 million).
• Dividend Payments: Total dividend payments for 2025 were £1,200 million (2024: £1,216 million). A total dividend of 8.60p per ordinary share was approved for 2025 (2024: 8.4p), comprising a full year dividend of 5.60p and a half year dividend of 3.0p.
• Future Capital Return Commitments: A share buyback of up to £1 billion is proposed for Q1 2026. The company targets a total payout of at least £10 billion for 2024-2026 and over £15 billion for 2026-2028.

Balance Sheet Position:

• Cash and Equivalents: Cash and balances at central banks increased to £229.8 billion (2024: £210.2 billion).
• Total Debt: Total debt, including subordinated liabilities and debt securities in issue, was £131,987 million (2024: £104,323 million).
• Net Cash Position: Not explicitly stated.
• Debt Maturity Profile: Total wholesale funding outstanding was £220.1 billion (2024: £186.0 billion), with £83.9 billion (38%) maturing in less than one year (2024: £55.0 billion, 30%).
• The CET1 ratio was 14.3% (2024: 13.6%), within the target range of 13-14%.
• The UK leverage ratio was 5.1% (2024: 5.0%).
• The MREL requirement (excluding confidential PRA buffer) was £108.9 billion, equating to 30.5% of RWAs.
• The liquidity pool stood at £338 billion (2024: £297 billion).
• The average Liquidity Coverage Ratio (LCR) was 170% (2024: 172%), with a surplus of £131 billion above the 100% regulatory requirement.
• The Net Stable Funding Ratio (NSFR) was 135% (2024: 135%), with a surplus of £166 billion.

Cash Flow Generation:

• Operating Cash Flow: Not explicitly stated.
• Free Cash Flow: Not explicitly stated.
• Cash Conversion Metrics: Not explicitly stated.

Currency Management:

• Cash holdings by major currencies in the liquidity pool were USD £111 billion, EUR £66 billion, GBP £124 billion, and Other £37 billion.
• Wholesale funding by major currencies was USD 64%, EUR 21%, GBP 6%, and Other 9%.
• The Group employs a structural hedge programme utilizing receive-fixed, pay variable interest rate swaps, with a notional amount of £236.1 billion (2024: £232.3 billion) and an average duration of approximately 3.5 years. Gross structural hedge contributions were £5,923 million (2024: £4,708 million).

Operational Excellence

Production & Service Model: Barclays PLC operates as a diversified financial services provider, delivering retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. The company emphasizes digital engagement, with 13.9 million digitally active customers in Barclays UK and 96.2% digital engagement in Barclays US Consumer Bank. Operational efficiency is supported by 204 Shared Banking Hubs, a halfway rollout of 'Smart ATMs' expected to complete in 2026, and 24/7 Joint Operations Centres (JOCs) located in three globally strategic locations.

Global Supply Chain Architecture: Key Suppliers & Partners:

• Payment Acceptance: Brookfield (partnered with Barclays UK Corporate Bank).
• Co-branded Cards: General Motors (GM), Wyndham Hotels & Resorts, Upromise, Carnival, Princess, Holland America (partnerships extended by Barclays US Consumer Bank).
• Technology Partners: Microsoft (for M365 Copilot).
• Auditor: KPMG (selected in May 2025).
• Sustainability: 73% of suppliers (by addressable spend) have science-based GHG targets, exceeding the 70% target.
• Third-Party Service Providers (TPSPs): Achieved 94% on-time payments to TPSPs, exceeding its 85% public commitment. 74% of TPSPs (by addressable spend) had a modern slavery policy or standard, exceeding the 70% ambition.

Facility Network:

• Manufacturing: Not applicable for a financial services company.
• Research & Development: While specific R&D centers are not detailed, £834 million was capitalized as internally generated software in 2025, indicating significant investment in technology development.
• Distribution: The network includes physical branches (supported by Shared Banking Hubs and Smart ATMs) and extensive digital platforms.
• Corporate Offices: Energy use intensity of corporate offices was 234 kWh/m²/year, representing a 26% reduction against the 2018 baseline.

Operational Metrics:

• Lost Time Incidents (per 100 employees): 0.026 in 2025 (0.018 in 2024).
• Waste diverted from landfill/incineration (campuses): 56% (2035 milestone: 90%).
• Business travel emissions: decreased by 45% compared to the 2018 baseline.
• Total operational risk losses increased to £143 million in 2025 (2024: £127 million), with 2,943 recorded events (2024: 2,392). External Fraud accounted for 86% of events by count and 51% of total losses, while Execution, Delivery and Process Management impacts were 49% of total losses.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Utilizes regional sales forces and direct customer relationships across its Barclays UK and Barclays UK Corporate Bank segments.
• Channel Partners: Engages in strategic partnerships, such as with Brookfield for payment acceptance and various entities for co-branded credit card programs (e.g., General Motors, Wyndham Hotels & Resorts).
• Digital Platforms: Leverages extensive online sales channels, mobile applications, and AI-powered digital assistants (e.g., AI-powered Help Hub Assistant, BARXBot) to enhance customer engagement and service delivery across regions.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: Barclays UK Corporate Bank serves over 13,000 businesses, with approximately 580 new-to-bank clients driving a significant portion of its lending increase.
• Strategic Partnerships: Key partnerships include General Motors for co-branded credit cards and Brookfield for payment acceptance, demonstrating a focus on collaborative growth.
• Customer Concentration: The diversified nature of its retail, corporate, and investment banking segments, coupled with a broad geographic presence, helps mitigate customer concentration risk.

Regional Market Penetration:

• United Kingdom: Barclays UK serves over 20 million customers, and Barclays UK Corporate Bank increased its lending market share by 1% to 9.6%.
• United States: Barclays US Consumer Bank holds approximately 3% of the US credit card market and acquired three million new customers organically in 2025.
• Growth Markets: Barclays Private Bank and Wealth Management is expanding its international presence, including a planned Singapore booking centre for 2026, indicating a focus on emerging wealth markets in Asia and the Middle East.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics: The global financial services industry is characterized by ongoing digitalization, increasing adoption of artificial intelligence, and a growing focus on sustainability and net-zero ambitions. The sector operates under extensive multi-jurisdictional regulatory frameworks across the UK, EU, and US. The market is dynamic, with continuous innovation in product offerings and service delivery models.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: While specific competitor names are not explicitly listed in the filing, Barclays PLC operates in highly competitive markets. In Global Markets and Investment Banking, its 6th place ranking implies competition from leading global investment banks. In the UK, its strong retail and corporate banking presence suggests competition with other major domestic banks. In the US credit card market, its approximately 3% market share indicates competition with larger US card issuers.

Regional Competitive Dynamics: The competitive landscape varies by region. In the UK, Barclays maintains a strong position in both retail and corporate banking, evidenced by high NPS scores and growing market share. In the US, the consumer bank is expanding through strategic partnerships and organic customer acquisition. Globally, the Investment Bank leverages its top-tier research and strong project finance capabilities to compete effectively.

Risk Assessment Framework

Strategic & Market Risks

Global Market Dynamics:

• Economic Uncertainty: Economic uncertainty adjustments to credit impairment charges increased to £115 million in 2025 (2024: £78 million), reflecting ongoing macroeconomic volatility, particularly impacting the US Consumer Bank.
• Technology Disruption: While investing in AI, the rapid pace of technological change presents a continuous risk of disruption if innovation and adoption do not keep pace with market demands.
• Customer Concentration: Diversification across retail, corporate, and investment banking segments, as well as a broad geographic footprint, helps mitigate risks associated with customer concentration.

Operational & Execution Risks

Global Supply Chain Vulnerabilities:

• Supplier Dependency: The company monitors its supply chain, with 73% of suppliers (by addressable spend) having science-based GHG targets, indicating efforts to manage supplier-related risks.
• Regional Disruptions: Operational resilience is supported by 24/7 Joint Operations Centres (JOCs) located in three globally strategic locations, designed to mitigate the impact of regional disruptions.
• Trade Restrictions: The Group is exposed to risks from export controls, tariffs, and other trade restrictions, which are managed through multi-jurisdictional compliance programs.

Financial & Regulatory Risks

Currency & Financial Risks:

• Foreign Exchange: The Group is exposed to transactional and translational foreign exchange risk, managed through a structural hedge programme and other hedging instruments. Structural currency exposure net of hedging instruments decreased to £17.6 billion in 2025.
• Interest Rate Risk: Interest rate risk is managed through a structural hedge programme with a notional of £236.1 billion. The Annual Earnings at Risk (AEaR) for a -25bps interest rate shock was -£6 million in 2025.
• Credit & Liquidity: Net exposure to credit risk increased by 3% to £1,108 billion. Credit impairment charges increased to £2,279 million in 2025. The CET1 ratio of 14.3%, LCR of 170%, and NSFR of 135% demonstrate strong capital and liquidity positions.
• Motor Finance Provision: A provision of £325 million was recognized as at 31 December 2025 for a potential motor finance customer compensation scheme following an FCA review.

Regulatory & Compliance Risks:

• Multi-Jurisdictional Compliance: The Group operates under extensive regulatory frameworks in the UK, EU, and US, requiring continuous compliance with diverse and evolving laws (e.g., EU AI Act, California Consumer Privacy Act).
• Trade Regulations: Compliance with export controls, sanctions, and anti-corruption laws (e.g., UK Bribery Act 2010, FCPA) is critical, with specific revenue attributed to Iran sanctions-related activities (£7,515 in 2025).
• Tax Regulations: Risks include compliance with UK’s Pillar Two rules, US corporate alternative minimum tax, and transfer pricing regulations.
• Principal Risks: Climate risk and Financial Crime were elevated to Principal Risks in the Enterprise Risk Management Framework from January 2025.

Geopolitical & External Risks

Country-Specific Risks:

• Political Risk: The first review of the EU–UK Trade and Cooperation Agreement (TCA) expected in 2026 could introduce policy changes affecting operations.
• Economic Risk: Internal Stress Test (IST25) scenarios include physical climate risks (e.g., extreme flood in London) and market risks (e.g., EU ETS price rising to $309/tCO2e).
• Regulatory Changes: Upcoming regulatory changes, such as the FCA's policy statement on motor finance customer compensation, pose ongoing compliance and financial risks.

Innovation & Technology Leadership

Research & Development Focus: Global R&D Network: While specific R&D centers are not explicitly detailed, Barclays PLC demonstrates a significant investment in technology and innovation. In 2025, £834 million was capitalized as internally generated software, reflecting ongoing development efforts. The company is pursuing a hybrid cloud strategy to enhance its technological infrastructure. Innovation Pipeline: Barclays is actively integrating artificial intelligence into its operations and customer-facing services. Key initiatives include the introduction of an AI-powered Help Hub Assistant in Barclays UK, the use of Microsoft's M365 Copilot by colleagues, and the deployment of BARXBot, a client-facing Generative AI chatbot, in Global Markets to automate Request for Quotes (RFQs).

Intellectual Property Portfolio:

• Patent Strategy: Not explicitly detailed in the filing.
• Licensing Programs: Not explicitly detailed in the filing.
• IP Litigation: Not explicitly detailed in the filing.

Technology Partnerships:

• Strategic Alliances: Barclays has a strategic alliance with Microsoft, leveraging its M365 Copilot for internal operations.
• Research Collaborations: Not explicitly detailed in the filing.
• The Board of Directors visited San Francisco in June 2025 to engage with and learn about technology transformation, underscoring the strategic importance of innovation to the Group's leadership.

Leadership & Governance

Executive Leadership Team

International Management Structure: The Group Executive Committee includes leaders with global and regional responsibilities, such as the CEO of Barclays UK, CEO of US Consumer Bank and Barclays Bank Delaware, and CEO of Private Bank and Wealth Management, indicating a blend of centralized oversight and regional expertise.

Board Composition: As of December 31, 2025, the Board of Directors of Barclays PLC comprised 13 Directors (seven male, six female). All Non-Executive Directors are considered independent. The Board fully complied with the 2024 UK Corporate Governance Code for 2025. The Board Audit Committee is composed solely of independent non-executive Directors, as defined by Rule 10A-3 of the Exchange Act. The Board also has dedicated committees for Sustainability, Risk, Remuneration, and Nominations, reflecting a comprehensive governance structure.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework: Primary Regulatory Environments:

• United Kingdom: Regulated by the Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA), Financial Policy Committee (FPC), and Payment Systems Regulator (PSR). Key legislation includes the UK Bribery Act 2010, Criminal Finances Act 2017, Economic Crime and Corporate Transparency Act 2023 (ECCTA), and Sanctions and Anti-Money Laundering Act 2018.
• European Union: Subject to oversight by the Central Bank of Ireland (CBI), European Central Bank (ECB), Autorité de Contrôle Prudentiel et de Résolution (ACPR), Autorité de Marchés Financiers, and Single Resolution Board (SRB). Significant regulations include the EU Artificial Intelligence Act (in force August 1, 2024), the Sixth Anti-Money Laundering Directive (EU) 2024/1640 (to be implemented by 2027), and the Anti-Money Laundering Regulation (EU) 2024/1624 (direct effect from 2027).
• United States: Regulated by the Federal Reserve Board (FRB), New York State Department of Financial Services (NYSDFS), Delaware Office of the State Bank Commissioner, Federal Deposit Insurance Corporation (FDIC), Consumer Financial Protection Bureau (CFPB), Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), Commodity Futures Trading Commission (CFTC), and National Futures Association. Relevant legislation includes the US corporate alternative minimum tax (effective January 1, 2023), California Consumer Privacy Act regulations (updated, effective January 1, 2026), and the Colorado Consumer Protections for Artificial Intelligence Act (effective June 30, 2026).

Cross-Border Compliance:

• Export Controls: The Group adheres to multi-jurisdictional export controls and technology transfer restrictions.
• Sanctions Compliance: Strict compliance with multi-jurisdictional sanctions regimes is maintained, with approximately GBP 7,515 in attributed revenue in 2025 related to Section 13(r) US Securities Exchange Act of 1934 (Iran Sanctions).
• Anti-Corruption: Compliance programs are in place to address anti-corruption laws, including the FCPA and local anti-bribery legislation. The ECCTA introduced a new failure to prevent fraud offence, effective September 1, 2025.

International Tax Strategy:

• Transfer Pricing: The Group manages inter-company pricing policies and documentation requirements across its international operations.
• Tax Treaties: Not explicitly detailed in the filing.
• BEPS Compliance: The UK’s Pillar Two rules (OECD Inclusive Framework on Base Erosion and Profit Shifting) applied from January 1, 2024, impacting the Group's tax obligations.

Environmental & Social Impact

Global Sustainability Strategy: Environmental Commitments:

• Climate Strategy: Barclays PLC has an ambition to be a net zero bank by 2050.
• Carbon Neutrality: Achieved a 97% reduction in Scope 1 and 2 market-based emissions by 2025 compared to a 2018 baseline, exceeding its 90% target.
• Renewable Energy: 100% of electricity is sourced from renewable energy, meeting its target.
• Sustainable and Transition Financing: Committed to facilitating $1 trillion in sustainable and transition financing between 2023 and the end of 2030. In 2025, $98.5 billion was facilitated, bringing the cumulative total since 2023 to $260.7 billion. Revenue from sustainable and transition-related activities was just under £0.6 billion in 2025.
• Financed Emissions Reduction Targets: The Group has set targets for various sectors, including Upstream Energy (-41% vs 2020 baseline), Power (-35% vs 2020 baseline), Cement (-13% vs 2021 baseline), Steel (-30% vs 2021 baseline), Automotive manufacturing (-3% vs 2022 baseline), Aviation (-2% vs 2023 baseline), UK Commercial Real Estate (-6% vs 2023 baseline), UK Agriculture (-13% vs 2023 baseline), and UK Housing (-3% vs 2023 baseline).

Regional Sustainability Initiatives:

• United Kingdom: Lent £2.4 billion through Green Home Mortgages in 2025 and paid £3 million through the Greener Home Reward program. The company aims for 51.4% of in-scope properties to be rated C or better by the end of 2025, with a target of 55% by 2030.
• Supply Chain: 73% of suppliers (by addressable spend) have science-based GHG targets, demonstrating a commitment to global supplier ESG requirements.
• Net Zero Operations: The global corporate vehicle fleet is 68% transitioned to Electric Vehicles (EVs) or Ultra-Low Emission Vehicles (ULEVs).

Social Impact by Region:

• Community Investment: The Unreasonable Impact programme, launched in 2016, has supported 395 high-growth ventures that have raised over $18 billion and employ over 33,000 people globally.
• Labor Standards: The Group's total global colleagues numbered 98,141 as of December 31, 2025. The Wellbeing Index score was 87% favourable, and 87% of colleagues completed mental health awareness eLearning. UK paternity leave was increased to 16 weeks (effective January 1, 2026), and Asia Pacific non-primary caregiver leave increased to 10 weeks (effective January 1, 2026). Minimum hourly pay rates were set at INR163 in India and $23.50 in the US (from March 1, 2026).
• Human Rights: The Group Statement on Human Rights was updated in 2024, and saliency assessments were initiated across all business segments in 2025.
• Whistleblowing: The whistleblowing team received 56 concerns in 2025 (2024: 69), with 16% of closed concerns substantiated.

Currency Management & Financial Strategy

Multi-Currency Operations: Currency Exposure:

Hedging Strategies:

• Transaction Hedging: The Group utilizes foreign exchange derivatives to manage short-term transactional FX risk, with derivative assets of £74,246 million and liabilities of £71,778 million held for trading in 2025.
• Translation Hedging: Derivatives designated as hedges of net investment are employed to manage balance sheet currency exposure, with assets of £156 million and liabilities of £43 million in 2025. Total structural currency exposure net of hedging instruments decreased to £17.6 billion in 2025.
• Economic Hedging: Not explicitly detailed in the filing, but implied as part of a comprehensive currency management approach.
• The Group operates a structural hedge programme using receive-fixed, pay variable interest rate swaps, with a notional amount of £236.1 billion (2024: £232.3 billion) and an average duration of approximately 3.5 years. Gross structural hedge contributions were £5,923 million in 2025 (2024: £4,708 million).
• Hedge accounting is applied for interest rate risk, currency risk, and contractually-linked inflation risk using various derivative instruments.
• The liquidity pool by currency in 2025 was USD £111 billion, EUR £66 billion, GBP £124 billion, and Other £37 billion. Wholesale funding by major currencies was USD 64%, EUR 21%, GBP 6%, and Other 9%.