Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Lloyds Banking Group plc |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 71,576,605,575 |
Amendment Flag | false |
Entity Central Index Key | 1,160,106 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Ex Transition Period | false |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Interest and similar income | £ 16,349 | £ 16,006 | £ 16,620 | |
Interest and similar expense | [1] | (2,953) | (5,094) | (7,346) |
Net interest income | 13,396 | 10,912 | 9,274 | |
Fee and commission income | 2,848 | 2,965 | 3,045 | |
Fee and commission expense | (1,386) | (1,382) | (1,356) | |
Net fee and commission income | 1,462 | 1,583 | 1,689 | |
Net trading income | (3,876) | 11,817 | 18,545 | |
Insurance premium income | 9,189 | 7,930 | 8,068 | |
Other operating income | 1,920 | 1,995 | 2,035 | |
Other income | 8,695 | 23,325 | 30,337 | |
Total income | 22,091 | 34,237 | 39,611 | |
Insurance claims | (3,465) | (15,578) | (22,344) | |
Total income, net of insurance claims | 18,626 | 18,659 | 17,267 | |
Regulatory provisions | (1,350) | (2,165) | (2,374) | |
Other operating expenses | (10,379) | (10,181) | (10,253) | |
Total operating expenses | (11,729) | (12,346) | (12,627) | |
Trading surplus | 6,897 | 6,313 | 4,640 | |
Impairment | (937) | (688) | (752) | |
Profit before tax | 5,960 | 5,625 | 3,888 | |
Taxation | (1,560) | (1,728) | (1,724) | |
Profit for the year | 4,400 | 3,897 | 2,164 | |
Profit attributable to ordinary shareholders | 3,869 | 3,392 | 1,651 | |
Profit attributable to other equity holders | [2] | 433 | 415 | 412 |
Profit attributable to equity holders | 4,302 | 3,807 | 2,063 | |
Profit attributable to non-controlling interests | £ 98 | £ 90 | £ 101 | |
Basic earnings per share (in Pounds per share) | £ 0.055 | £ 0.049 | £ 0.024 | |
Diluted earnings per share (in Pounds per share) | £ 0.055 | £ 0.048 | £ 0.024 | |
[1] | Includes 10 million (2017: 50 million; 2016: 51 million) of interest expense on assets with negative interest rates. | |||
[2] | The profit after tax attributable to other equity holders of 433 million (2017: 415 million; 2016: 412 million) is partly offset in reserves by a tax credit attributable to ordinary shareholders of 106 million (2017: 102 million; 2016: 91 million). |
CONSOLIDATED INCOME STATEMENT (
CONSOLIDATED INCOME STATEMENT (Parentheticals) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Tax credit attributable to ordinary shareholders | £ 106 | £ 102 | £ 91 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit for the year | £ 4,400 | £ 3,897 | £ 2,164 |
Post-retirement defined benefit scheme remeasurements: | |||
Remeasurements before tax | 167 | 628 | (1,348) |
Tax | (47) | (146) | 320 |
120 | 482 | (1,028) | |
Movements in revaluation reserve in respect of equity shares held at fair value through other comprehensive income: | |||
Change in fair value | (97) | ||
Tax | 22 | ||
(75) | |||
Gains and losses attributable to own credit risk: | |||
Gains (losses) before tax | 533 | (55) | |
Tax | (144) | 15 | |
389 | (40) | ||
Share of other comprehensive income of associates and joint ventures | 8 | ||
Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income: | |||
Change in fair value | (37) | ||
Income statement transfers in respect of disposals | (275) | ||
Tax | 119 | ||
(193) | |||
Movements in revaluation reserve in respect of available for sale financial assets: | |||
Adjustment on transfer from held-to-maturity portfolio | (74) | 1,544 | |
Change in fair value | 303 | 356 | |
Income statement transfers in respect of disposals | (446) | (575) | |
Income statement transfers in respect of impairment | 6 | 173 | |
Tax | 63 | (301) | |
(74) | 1,197 | ||
Movement in cash flow hedging reserve: | |||
Effective portion of changes in fair value taken to other comprehensive income | 234 | (363) | 2,432 |
Net income statement transfers | (701) | (651) | (557) |
Tax | 113 | 283 | (466) |
(354) | (731) | 1,409 | |
Currency translation differences (tax: nil) | (8) | (32) | (4) |
Other comprehensive income for the year, net of tax | (113) | (395) | 1,574 |
Total comprehensive income for the year | 4,287 | 3,502 | 3,738 |
Total comprehensive income attributable to ordinary shareholders | 3,756 | 2,997 | 3,225 |
Total comprehensive income attributable to other equity holders | 433 | 415 | 412 |
Total comprehensive income attributable to equity holders | 4,189 | 3,412 | 3,637 |
Total comprehensive income attributable to non-controlling interests | £ 98 | £ 90 | £ 101 |
CONSOLIDATED STATEMENT OF COM_2
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parentheticals) | 12 Months Ended | |||
Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Currency translation differences tax |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - Balance sheet [Member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Assets | ||||
Cash and balances at central banks | £ 54,663 | £ 58,521 | [1] | |
Items in the course of collection from banks | 647 | 755 | [1] | |
Financial assets at fair value through profit or loss | 158,529 | 176,008 | [1] | |
Derivative financial instruments | 23,595 | 25,474 | [1] | |
Loans and advances to banks | 6,283 | 4,246 | [1] | |
Loans and advances to customers | 484,858 | 461,016 | [1] | |
Debt securities | 5,238 | 3,314 | [1] | |
Financial assets at amortised cost | 496,379 | 468,576 | [1] | |
Financial assets at fair value through other comprehensive income | 24,815 | 42,917 | [1] | |
Goodwill | 2,310 | 2,310 | [1] | |
Value of in-force business | 4,762 | 4,839 | [1] | |
Other intangible assets | 3,347 | 2,835 | [1] | |
Property, plant and equipment | 12,300 | 12,727 | [1] | |
Current tax recoverable | 5 | 16 | [1] | |
Deferred tax assets | 2,453 | 2,609 | [1] | |
Retirement benefit assets | 1,267 | 723 | [1] | |
Other assets | 12,526 | 12,872 | [1] | |
Total assets | 797,598 | 811,182 | [1] | |
Liabilities | ||||
Deposits from banks | 30,320 | 29,804 | [1] | |
Customer deposits | 418,066 | 418,124 | ||
Items in course of transmission to banks | 636 | 584 | [1] | |
Financial liabilities at fair value through profit or loss | 30,547 | 50,935 | [1] | |
Derivative financial instruments | 21,373 | 26,124 | [1] | |
Notes in circulation | 1,104 | 1,313 | [1] | |
Debt securities in issue | 91,168 | 72,402 | [1] | |
Liabilities arising from insurance contracts and participating investment contracts | 98,874 | 103,413 | [1] | |
Liabilities arising from non-participating investment contracts | 13,853 | 15,447 | [1] | |
Other liabilities | 19,633 | 20,741 | [1] | |
Retirement benefit obligations | 245 | 358 | [1] | |
Current tax liabilities | 377 | 274 | [1] | |
Deferred tax liabilities | [1] | |||
Other provisions | 3,547 | 5,789 | [1] | |
Subordinated liabilities | 17,656 | 17,922 | [1] | |
Total liabilities | 747,399 | 763,230 | [1] | |
Equity | ||||
Share capital | 7,116 | 7,197 | [1] | |
Share premium account | 17,719 | 17,634 | [1] | |
Other reserves | 13,210 | 13,553 | [1] | |
Retained profits | 5,389 | 3,976 | [1] | |
Shareholders’ equity | 43,434 | 42,360 | [1] | |
Other equity instruments | 6,491 | 5,355 | [1] | |
Total equity excluding non-controlling interests | 49,925 | 47,715 | [1] | |
Non-controlling interests | 274 | 237 | [1] | |
Total equity | 50,199 | 47,952 | [1] | |
Total equity and liabilities | £ 797,598 | 811,182 | [1] | |
Previously stated [member] | ||||
Assets | ||||
Cash and balances at central banks | 58,521 | |||
Items in the course of collection from banks | 755 | |||
Financial assets at fair value through profit or loss | 162,878 | |||
Derivative financial instruments | 25,834 | |||
Loans and advances to banks | 6,611 | |||
Loans and advances to customers | 472,498 | |||
Debt securities | 3,643 | |||
Financial assets at amortised cost | 482,752 | |||
Available-for-sale financial assets | 42,098 | |||
Goodwill | 2,310 | |||
Value of in-force business | 4,839 | |||
Other intangible assets | 2,835 | |||
Property, plant and equipment | 12,727 | |||
Current tax recoverable | 16 | |||
Deferred tax assets | 2,284 | |||
Retirement benefit assets | 723 | |||
Other assets | 13,537 | |||
Total assets | 812,109 | |||
Liabilities | ||||
Deposits from banks | 29,804 | |||
Customer deposits | [1] | 418,124 | ||
Items in course of transmission to banks | 584 | |||
Financial liabilities at fair value through profit or loss | 50,877 | |||
Derivative financial instruments | 26,124 | |||
Notes in circulation | 1,313 | |||
Debt securities in issue | 72,450 | |||
Liabilities arising from insurance contracts and participating investment contracts | 103,413 | |||
Liabilities arising from non-participating investment contracts | 15,447 | |||
Other liabilities | 20,730 | |||
Retirement benefit obligations | 358 | |||
Current tax liabilities | 274 | |||
Other provisions | 5,546 | |||
Subordinated liabilities | 17,922 | |||
Total liabilities | 762,966 | |||
Equity | ||||
Share capital | 7,197 | |||
Share premium account | 17,634 | |||
Other reserves | 13,815 | |||
Retained profits | 4,905 | |||
Shareholders’ equity | 43,551 | |||
Other equity instruments | 5,355 | |||
Total equity excluding non-controlling interests | 48,906 | |||
Non-controlling interests | 237 | |||
Total equity | 49,143 | |||
Total equity and liabilities | £ 812,109 | |||
[1] | See note 54. |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - GBP (£) £ in Millions | Share premium [member] | Other reserves [member]Debt securities [member] | Other reserves [member]Equity shares [Member] | Other reserves [member] | Retained earnings [member] | Equity attributable to owners of parent [member]Debt securities [member] | Equity attributable to owners of parent [member]Equity shares [Member] | Equity attributable to owners of parent [member] | Other equity interest [member] | Non-controlling interests [member] | Debt securities [member] | Equity shares [Member] | Total | ||
Beginning Balance at Dec. 31, 2015 | £ 24,558 | £ 12,260 | £ 4,416 | £ 41,234 | £ 5,355 | £ 391 | £ 46,980 | ||||||||
Comprehensive income | |||||||||||||||
Profit for the year | 2,063 | 2,063 | 101 | 2,164 | |||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | Previously stated [member] | (1,028) | ||||||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | (1,028) | (1,028) | (1,028) | ||||||||||||
Movements in revaluation reserve in respect of available-for-sale financial assets, net of tax | 1,544 | ||||||||||||||
Movements in revaluation reserve in respect of available-for-sale financial assets, net of tax | 1,197 | 1,197 | 1,197 | ||||||||||||
Movements in cash flow hedging reserve, net of tax | 1,409 | 1,409 | 1,409 | ||||||||||||
Currency translation differences (tax: £nil) | (4) | (4) | (4) | ||||||||||||
Total other comprehensive income | 2,602 | (1,028) | 1,574 | 1,574 | |||||||||||
Total comprehensive income | 2,602 | 1,035 | 3,637 | 101 | 3,738 | ||||||||||
Transactions with owners | |||||||||||||||
Dividends | Previously stated [member] | [1] | (2,014) | |||||||||||||
Dividends | (2,014) | (2,014) | (29) | (2,043) | |||||||||||
Distributions on other equity instruments, net of tax | (321) | (321) | (321) | ||||||||||||
Redemption of preference shares | 210 | (210) | 210 | ||||||||||||
Movement in treasury shares | Previously stated [member] | (175) | ||||||||||||||
Movement in treasury shares | (175) | (175) | (175) | ||||||||||||
Value of employee services: | |||||||||||||||
Share option schemes | Previously stated [member] | 141 | ||||||||||||||
Share option schemes | 141 | 141 | 141 | ||||||||||||
Other employee award schemes | Previously stated [member] | 168 | ||||||||||||||
Other employee award schemes | 168 | 168 | 168 | ||||||||||||
Changes in non-controlling interests | (23) | (23) | |||||||||||||
Total transactions with owners | 210 | (210) | (2,201) | (2,201) | (52) | (2,253) | |||||||||
Ending Balance at Dec. 31, 2016 | 24,768 | 14,652 | 3,250 | 42,670 | 5,355 | 440 | 48,465 | ||||||||
Comprehensive income | |||||||||||||||
Profit for the year | 3,807 | 3,807 | 90 | 3,897 | |||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | Previously stated [member] | 482 | ||||||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | 482 | 482 | 482 | ||||||||||||
Movements in revaluation reserve in respect of available-for-sale financial assets, net of tax | (74) | (74) | (74) | ||||||||||||
Gains and losses attributable to own credit risk, net of tax | (40) | (40) | (40) | ||||||||||||
Movements in cash flow hedging reserve, net of tax | (731) | (731) | (731) | ||||||||||||
Currency translation differences (tax: £nil) | (32) | (32) | (32) | ||||||||||||
Total other comprehensive income | (837) | 442 | (395) | (395) | |||||||||||
Total comprehensive income | (837) | 4,249 | 3,412 | 90 | 3,502 | ||||||||||
Transactions with owners | |||||||||||||||
Dividends | Previously stated [member] | [1] | (2,284) | |||||||||||||
Dividends | (2,284) | (2,284) | (51) | (2,335) | |||||||||||
Distributions on other equity instruments, net of tax | (313) | (313) | (313) | ||||||||||||
Issue of ordinary shares | 63 | 63 | 63 | ||||||||||||
Movement in treasury shares | Previously stated [member] | (411) | ||||||||||||||
Movement in treasury shares | (411) | (411) | (411) | ||||||||||||
Value of employee services: | |||||||||||||||
Share option schemes | Previously stated [member] | 82 | ||||||||||||||
Share option schemes | 82 | 82 | 82 | ||||||||||||
Other employee award schemes | Previously stated [member] | 332 | ||||||||||||||
Other employee award schemes | 332 | 332 | 332 | ||||||||||||
Changes in non-controlling interests | (242) | (242) | |||||||||||||
Total transactions with owners | 63 | (2,594) | (2,531) | (293) | (2,824) | ||||||||||
Ending Balance (Previously stated [member]) at Dec. 31, 2017 | 24,831 | 13,815 | 4,905 | 43,551 | 5,355 | 237 | 49,143 | ||||||||
Ending Balance (Increase (decrease) due to changes in accounting policy required by IFRSs [member]) at Dec. 31, 2017 | [2] | (262) | (929) | (1,191) | (1,191) | ||||||||||
Ending Balance at Dec. 31, 2017 | 24,831 | 13,553 | 3,976 | 42,360 | 5,355 | 237 | 47,952 | ||||||||
Comprehensive income | |||||||||||||||
Profit for the year | 4,302 | 4,302 | 98 | 4,400 | |||||||||||
Post-retirement defined benefit scheme remeasurements, net of tax | 120 | 120 | 120 | ||||||||||||
Share of other comprehensive income of associates and joint ventures | 8 | 8 | 8 | ||||||||||||
Movements in revaluation reserve in respect of available-for-sale financial assets, net of tax | £ (193) | £ (75) | £ (193) | £ (75) | £ (193) | £ (75) | |||||||||
Gains and losses attributable to own credit risk, net of tax | 389 | 389 | 389 | ||||||||||||
Movements in cash flow hedging reserve, net of tax | (354) | (354) | (354) | ||||||||||||
Currency translation differences (tax: £nil) | (8) | (8) | (8) | ||||||||||||
Total other comprehensive income | (630) | 517 | (113) | (113) | |||||||||||
Total comprehensive income | (630) | 4,819 | 4,189 | 98 | 4,287 | ||||||||||
Transactions with owners | |||||||||||||||
Dividends | (2,240) | [1] | (2,240) | (61) | (2,301) | ||||||||||
Distributions on other equity instruments, net of tax | (327) | (327) | (327) | ||||||||||||
Issue of ordinary shares | 162 | 162 | 162 | ||||||||||||
Share buy-back | (158) | 158 | (1,005) | (1,005) | (1,005) | ||||||||||
Issue of other equity instruments (note 43) | (5) | (5) | 1,136 | 1,131 | |||||||||||
Movement in treasury shares | 40 | 40 | 40 | ||||||||||||
Value of employee services: | |||||||||||||||
Share option schemes | 53 | 53 | 53 | ||||||||||||
Other employee award schemes | 207 | 207 | 207 | ||||||||||||
Total transactions with owners | 4 | 158 | (3,277) | (3,115) | 1,136 | (61) | (2,040) | ||||||||
Realised gains and losses on equity shares held at fair value through other comprehensive income | 129 | (129) | (97) | ||||||||||||
Ending Balance at Dec. 31, 2018 | £ 24,835 | £ 13,210 | £ 5,389 | £ 43,434 | £ 6,491 | £ 274 | £ 50,199 | ||||||||
[1] | Net of a credit in respect of unclaimed dividends written-back in accordance with the Company's Articles of Association. | ||||||||||||||
[2] | See note 54 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parentheticals) | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
Currency translation differences tax | |
Equity attributable to owners of parent [member] | |
Currency translation differences tax |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENT - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Profit before tax | £ 5,960 | £ 5,625 | £ 3,888 | ||
Adjustments for: | |||||
Change in operating assets | (4,472) | ||||
Change in operating liabilities | (8,673) | ||||
Non-cash and other items | (2,892) | ||||
Tax paid | (1,030) | ||||
Net cash (used in) provided by operating activities | (11,107) | ||||
Cash flows from investing activities | |||||
Purchase of financial assets | (12,657) | ||||
Proceeds from sale and maturity of financial assets | 26,806 | ||||
Purchase of fixed assets | (3,514) | ||||
Proceeds from sale of fixed assets | 1,334 | ||||
Acquisition of businesses, net of cash acquired | (49) | ||||
Disposal of businesses, net of cash disposed | 1 | ||||
Net cash provided by (used in) investing activities | 11,921 | ||||
Cash flows from financing activities | |||||
Dividends paid to ordinary shareholders | (2,240) | ||||
Distributions on other equity instruments | (433) | ||||
Dividends paid to non-controlling interests | (61) | ||||
Interest paid on subordinated liabilities | (1,268) | ||||
Proceeds from issue of subordinated liabilities | [1] | 1,729 | |||
Proceeds from issue of other equity instruments | 1,131 | ||||
Proceeds from issue of ordinary shares | 102 | ||||
Share buyback | (1,005) | ||||
Repayment of subordinated liabilities | (2,256) | ||||
Net cash used in financing activities | (4,301) | ||||
Effects of exchange rate changes on cash and cash equivalents | 3 | ||||
Change in cash and cash equivalents | (3,484) | ||||
Cash and cash equivalents at beginning of year | [2] | 58,708 | |||
Cash and cash equivalents at end of year | 55,224 | 58,708 | [2] | ||
Previously stated [member] | |||||
Profit before tax | 5,625 | 3,888 | |||
Adjustments for: | |||||
Change in operating assets | (15,492) | (12,218) | |||
Change in operating liabilities | (4,282) | (2,659) | |||
Non-cash and other items | 11,982 | 13,885 | |||
Tax paid | (1,028) | (822) | |||
Net cash (used in) provided by operating activities | (3,195) | 2,074 | |||
Cash flows from investing activities | |||||
Purchase of financial assets | (7,862) | (4,930) | |||
Proceeds from sale and maturity of financial assets | 18,675 | 6,335 | |||
Purchase of fixed assets | (3,655) | (3,760) | |||
Proceeds from sale of fixed assets | 1,444 | 1,684 | |||
Acquisition of businesses, net of cash acquired | (1,923) | (20) | |||
Disposal of businesses, net of cash disposed | 129 | 5 | |||
Net cash provided by (used in) investing activities | 6,808 | (686) | |||
Cash flows from financing activities | |||||
Dividends paid to ordinary shareholders | (2,284) | (2,014) | |||
Distributions on other equity instruments | (415) | (412) | |||
Dividends paid to non-controlling interests | (51) | (29) | |||
Interest paid on subordinated liabilities | (1,275) | (1,687) | |||
Proceeds from issue of subordinated liabilities | 1,061 | ||||
Proceeds from issue of ordinary shares | 14 | ||||
Repayment of subordinated liabilities | (1,008) | (7,885) | |||
Changes in non-controlling interests | (8) | ||||
Net cash used in financing activities | (5,019) | (10,974) | |||
Effects of exchange rate changes on cash and cash equivalents | 21 | ||||
Change in cash and cash equivalents | (1,406) | (9,565) | |||
Cash and cash equivalents at beginning of year | 60,982 | 62,388 | 71,953 | ||
Cash and cash equivalents at end of year | 60,982 | £ 62,388 | |||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||||
Cash flows from financing activities | |||||
Cash and cash equivalents at beginning of year | [3] | £ (2,274) | |||
Cash and cash equivalents at end of year | [3] | £ (2,274) | |||
[1] | The repurchases and redemptions resulted in cash outflows of 2,256 million (2017: 1,008 million). | ||||
[2] | Adjusted for IFRS 9 | ||||
[3] | See note 1. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of basis of preparation of financial statements [text block] [Abstract] | |
Disclosure of basis of preparation of financial statements [text block] | NOTE 1: BASIS OF PREPARATION The consolidated financial statements of Lloyds Banking Group plc have been prepared in accordance with International Financial Reporting Standards (IFRS). IFRS comprises accounting standards prefixed IFRS issued by the International Accounting Standards Board (IASB) and those prefixed IAS issued by the IASB’s predecessor body as well as interpretations issued by the IFRS Interpretations Committee (IFRS IC) and its predecessor body. As noted below, in adopting IFRS 9, the Group has elected to continue applying hedge accounting under IAS 39. The financial information has been prepared under the historical cost convention, as modified by the revaluation of investment properties, financial assets measured at fair value through other comprehensive income, trading securities and certain other financial assets and liabilities at fair value through profit or loss and all derivative contracts. As stated on page 164, the directors consider that it is appropriate to continue to adopt the going concern basis in preparing the financial statements. The Group has adopted IFRS 9 and IFRS 15 with effect from 1 January 2018. (i) IFRS 9 Financial Instruments IFRS 9 replaces IAS 39 and addresses classification, measurement and derecognition of financial assets and liabilities, the impairment of financial assets measured at amortised cost or fair value through other comprehensive income, expected credit loss provisions for loan commitments and financial guarantee contracts and general hedge accounting. Impairment: Classification and measurement: General hedge accounting: In adopting IFRS 9, the Group has reclassified loans and advances to banks with a maturity of less than three months totalling £2,274 million to financial assets measured at fair value through profit or loss, resulting in a corresponding reduction in cash and cash equivalents at 1 January 2018 compared to the amount previously reported at 31 December 2017. (ii) IFRS 15 Revenue from Contracts with Customers IFRS 15 has replaced IAS 18 Revenue Construction Contracts Details of the impact of adoption of IFRS 9 and IFRS 15 are provided in note 54. Details of those IFRS pronouncements which will be relevant to the Group but which were not effective at 31 December 2018 and which have not been applied in preparing these financial statements are given in note 55. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of significant accounting policies [text block] [Abstract] | |
Disclosure of significant accounting policies [text block] | NOTE 2: ACCOUNTING POLICIES The Group’s accounting policies are set out below. These accounting policies have been applied consistently. (A) Consolidation The assets, liabilities and results of Group undertakings (including structured entities) are included in the financial statements on the basis of accounts made up to the reporting date. Group undertakings include subsidiaries, associates and joint ventures. (1) SUBSIDIARIES Subsidiaries are entities controlled by the Group. The Group controls an entity when it has power over the entity, is exposed to, or has rights to, variable returns from its involvement with the entity, and has the ability to affect those returns through the exercise of its power. This generally accompanies a shareholding of more than one half of the voting rights although in certain circumstances a holding of less than one half of the voting rights may still result in the ability of the Group to exercise control. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. The Group reassesses whether or not it controls an entity if facts and circumstances indicate that there are changes to any of the above elements. Subsidiaries are fully consolidated from the date on which control is transferred to the Group; they are de-consolidated from the date that control ceases. The Group consolidates collective investment vehicles if its beneficial ownership interests give it substantive rights to remove the external fund manager over the investment activities of the fund. Where a subsidiary of the Group is the fund manager of a collective investment vehicle, the Group considers a number of factors in determining whether it acts as principal, and therefore controls the collective investment vehicle, including: an assessment of the scope of the Group’s decision making authority over the investment vehicle; the rights held by other parties including substantive removal rights without cause over the Group acting as fund manager; the remuneration to which the Group is entitled in its capacity as decision maker; and the Group’s exposure to variable returns from the beneficial interest it holds in the investment vehicle. Consolidation may be appropriate in circumstances where the Group has less than a majority beneficial interest. Where a collective investment vehicle is consolidated the interests of parties other than the Group are reported in other liabilities and the movement in these interests in interest expense. Structured entities are entities that are designed so that their activities are not governed by way of voting rights. In assessing whether the Group has power over such entities in which it has an interest, the Group considers factors such as the purpose and design of the entity; its practical ability to direct the relevant activities of the entity; the nature of the relationship with the entity; and the size of its exposure to the variability of returns of the entity. The treatment of transactions with non-controlling interests depends on whether, as a result of the transaction, the Group loses control of the subsidiary. Changes in the parent’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions; any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the parent entity. Where the Group loses control of the subsidiary, at the date when control is lost the amount of any non-controlling interest in that former subsidiary is derecognised and any investment retained in the former subsidiary is remeasured to its fair value; the gain or loss that is recognised in profit or loss on the partial disposal of the subsidiary includes the gain or loss on the remeasurement of the retained interest. Intercompany transactions, balances and unrealised gains and losses on transactions between Group companies are eliminated. The acquisition method of accounting is used to account for business combinations by the Group. The consideration for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition related costs are expensed as incurred except those relating to the issuance of debt instruments (see (E)(5) below) or share capital (see (P) below). Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair value at the acquisition date. (2) JOINT VENTURES AND ASSOCIATES Joint ventures are joint arrangements over which the Group has joint control with other parties and has rights to the net assets of the arrangements. Associates are entities over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the entity, but is not control or joint control of those policies, and is generally achieved through holding between 20 per cent and 50 per cent of the voting share capital of the entity. The Group utilises the venture capital exemption for investments where significant influence or joint control is present and the business unit operates as a venture capital business. These investments are designated at initial recognition at fair value through profit or loss. Otherwise, the Group’s investments in joint ventures and associates are accounted for by the equity method of accounting. (B) Goodwill Goodwill arises on business combinations and represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable assets, liabilities and contingent liabilities acquired. Where the fair value of the Group’s share of the identifiable assets, liabilities and contingent liabilities of the acquired entity is greater than the cost of acquisition, the excess is recognised immediately in the income statement. Goodwill is recognised as an asset at cost and is tested at least annually for impairment. If an impairment is identified the carrying value of the goodwill is written down immediately through the income statement and is not subsequently reversed. At the date of disposal of a subsidiary, the carrying value of attributable goodwill is included in the calculation of the profit or loss on disposal. (C) Other intangible assets Intangible assets which have been determined to have a finite useful life are amortised on a straight line basis over their estimated useful life as follows: up to 7 years for capitalised software; 10 to 15 years for brands and other intangibles. Intangible assets with finite useful lives are reviewed at each reporting date to assess whether there is any indication that they are impaired. If any such indication exists the recoverable amount of the asset is determined and in the event that the asset’s carrying amount is greater than its recoverable amount, it is written down immediately. Certain brands have been determined to have an indefinite useful life and are not amortised. Such intangible assets are reassessed annually to reconfirm that an indefinite useful life remains appropriate. In the event that an indefinite life is inappropriate a finite life is determined and an impairment review is performed on the asset. (D) Revenue recognition (1) NET INTEREST INCOME Interest income and expense are recognised in the income statement for all interest-bearing financial instruments using the effective interest method, except for those classified at fair value through profit or loss. The effective interest method is a method of calculating the amortised cost of a financial asset or liability and of allocating the interest income or interest expense over the expected life of the financial instrument. The effective interest rate is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument to the gross carrying amount of the financial asset (before adjusting for expected credit losses) or to the amortised cost of the financial liability, including early redemption fees, and related penalties, and premiums and discounts that are an integral part of the overall return. Direct incremental transaction costs related to the acquisition, issue or disposal of a financial instrument are also taken into account. Interest income from non-credit impaired financial assets is recognised by applying the effective interest rate to the gross carrying amount of the asset; for credit impaired financial assets, the effective interest rate is applied to the net carrying amount after deducting the allowance for expected credit losses. Impairment policies are set out in (H) below. (2) FEE AND COMMISSION INCOME AND EXPENSE Fees and commissions receivable which are not an integral part of the effective interest rate are recognised as income as the Group fulfils its performance obligations. The Group’s principal performance obligations arising from contracts with customers are in respect of value added current accounts, credit cards and debit cards. These fees are received, and the Group’s provides the service, monthly; the fees are recognised in income on this basis. The Group also receives certain fees in respect of its asset finance business where the performance obligations are typically fulfilled towards the end of the customer contract; these fees are recognised in income on this basis. Where it is unlikely that the loan commitments will be drawn, loan commitment fees are recognised in fee and commission income over the life of the facility, rather than as an adjustment to the effective interest rate for loans expected to be drawn. Incremental costs incurred to generate fee and commission income are charged to fees and commissions expense as they are incurred. (3) OTHER Dividend income is recognised when the right to receive payment is established. Revenue recognition policies specific to trading income are set out in E(3) below, life insurance and general insurance business are detailed below (see (M) below); those relating to leases are set out in (J)(2) below. (E) Financial assets and liabilities On initial recognition, financial assets are classified as measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss, depending on the Group’s business model for managing the financial assets and whether the cash flows represent solely payments of principal and interest. The Group assesses its business models at a portfolio level based on its objectives for the relevant portfolio, how the performance of the portfolio is managed and reported, and the frequency of asset sales. Financial assets with embedded derivatives are considered in their entirety when considering their cash flow characteristics. The Group reclassifies financial assets when and only when its business model for managing those assets changes. A reclassification will only take place when the change is significant to the Group’s operations and will occur at a portfolio level and not for individual instruments; reclassifications are expected to be rare. Equity investments are measured at fair value through profit or loss unless the Group elects at initial recognition to account for the instruments at fair value through other comprehensive income. For these instruments, principally strategic investments, dividends are recognised in profit or loss but fair value gains and losses are not subsequently reclassified to profit or loss following derecognition of the investment. The Group initially recognises loans and advances, deposits, debt securities in issue and subordinated liabilities when the Group becomes a party to the contractual provisions of the instrument. Regular way purchases and sales of securities and other financial assets and trading liabilities are recognised on trade date, being the date that the Group is committed to purchase or sell an asset. Financial assets are derecognised when the contractual right to receive cash flows from those assets has expired or when the Group has transferred its contractual right to receive the cash flows from the assets and either: substantially all of the risks and rewards of ownership have been transferred; or the Group has neither retained nor transferred substantially all of the risks and rewards, but has transferred control. Financial liabilities are derecognised when the obligation is discharged, cancelled or expires. (1) FINANCIAL INSTRUMENTS MEASURED AT AMORTISED COST Financial assets that are held to collect contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A basic lending arrangement results in contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. Where the contractual cash flows introduce exposure to risks or volatility unrelated to a basic lending arrangement such as changes in equity prices or commodity prices, the payments do not comprise solely principal and interest. Financial assets measured at amortised cost are predominantly loans and advances to customers and banks together with certain debt securities. Loans and advances are initially recognised when cash is advanced to the borrower at fair value inclusive of transaction costs. Interest income is accounted for using the effective interest method (see (D) above). Financial liabilities are measured at amortised cost, except for trading liabilities and other financial liabilities designated at fair value through profit or loss on initial recognition which are held at fair value. (2) FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Financial assets that are held to collect contractual cash flows and for subsequent sale, where the assets’ cash flows represent solely payments of principal and interest, are recognised in the balance sheet at their fair value, inclusive of transaction costs. Interest calculated using the effective interest method and foreign exchange gains and losses on assets denominated in foreign currencies are recognised in the income statement. All other gains and losses arising from changes in fair value are recognised directly in other comprehensive income, until the financial asset is either sold or matures, at which time the cumulative gain or loss previously recognised in other comprehensive income is recognised in the income statement other than in respect of equity shares, for which the cumulative revaluation amount is transferred directly to retained profits. The Group recognises a charge for expected credit losses in the income statement (see (H) below). As the asset is measured at fair value, the charge does not adjust the carrying value of the asset, it is reflected in other comprehensive income. (3) FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS Financial assets are classified at fair value through profit or loss where they do not meet the criteria to be measured at amortised cost or fair value through other comprehensive income or where they are designated at fair value through profit or loss to reduce an accounting mismatch. All derivatives are carried at fair value through profit or loss. The assets backing the insurance and investment contracts issued by the Group do not meet the criteria to be measured at amortised cost or fair value through other comprehensive income as they are managed on a fair value basis and accordingly are measured at fair value through profit or loss. Similarly, trading securities, which are debt securities and equity shares acquired principally for the purpose of selling in the short term or which are part of a portfolio which is managed for short-term gains, do not meet these criteria and are also measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognised in the balance sheet at their fair value. Fair value gains and losses together with interest coupons and dividend income are recognised in the income statement within net trading income. Financial liabilities are measured at fair value through profit or loss where they are trading liabilities or where they are designated at fair value through profit or loss in order to reduce an accounting mismatch; where the liabilities are part of a group of liabilities (or assets and liabilities) which is managed, and its performance evaluated, on a fair value basis; or where the liabilities contain one or more embedded derivatives that significantly modify the cash flows arising under the contract and would otherwise need to be separately accounted for. Financial liabilities measured at fair value through profit or loss are recognised in the balance sheet at their fair value. Fair value gains and losses are recognised in the income statement within net trading income in the period in which they occur, except that gains and losses attributable to changes in own credit risk are recognised in other comprehensive income. The fair values of assets and liabilities traded in active markets are based on current bid and offer prices respectively. If the market is not active the Group establishes a fair value by using valuation techniques. The fair values of derivative financial instruments are adjusted where appropriate to reflect credit risk (via credit valuation adjustments (CVAs), debit valuation adjustments (DVAs) and funding valuation adjustments (FVAs)), market liquidity and other risks. (4) BORROWINGS Borrowings (which include deposits from banks, customer deposits, debt securities in issue and subordinated liabilities) are recognised initially at fair value, being their issue proceeds net of transaction costs incurred. These instruments are subsequently stated at amortised cost using the effective interest method. Preference shares and other instruments which carry a mandatory coupon or are redeemable on a specific date are classified as financial liabilities. The coupon on these instruments is recognised in the income statement as interest expense. Securities which carry a discretionary coupon and have no fixed maturity or redemption date are classified as other equity instruments. Interest payments on these securities are recognised, net of tax, as distributions from equity in the period in which they are paid. An exchange of financial liabilities on substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of a financial liability extinguished and the new financial liability is recognised in profit or loss together with any related costs or fees incurred. When a financial liability is exchanged for an equity instrument, the new equity instrument is recognised at fair value and any difference between the carrying value of the liability and the fair value of the new equity is recognised in profit or loss. (5) SALE AND REPURCHASE AGREEMENTS (INCLUDING SECURITIES LENDING AND BORROWING) Securities sold subject to repurchase agreements (repos) continue to be recognised on the balance sheet where substantially all of the risks and rewards are retained. Funds received under these arrangements are included in deposits from banks, customer deposits, or trading liabilities. Conversely, securities purchased under agreements to resell (reverse repos), where the Group does not acquire substantially all of the risks and rewards of ownership, are recorded as loans and advances measured at amortised cost or trading securities. The difference between sale and repurchase price is treated as interest and accrued over the life of the agreements using the effective interest method. Securities borrowing and lending transactions are typically secured; collateral takes the form of securities or cash advanced or received. Securities lent to counterparties are retained on the balance sheet. Securities borrowed are not recognised on the balance sheet, unless these are sold to third parties, in which case the obligation to return them is recorded at fair value as a trading liability. Cash collateral given or received is treated as a loan and advance measured at amortised cost or customer deposit. (F) Derivative financial instruments and hedge accounting As permitted by IFRS 9, the Group continues to apply the requirements of IAS 39 to its hedging relationships. All derivatives are recognised at their fair value. Derivatives are carried on the balance sheet as assets when their fair value is positive and as liabilities when their fair value is negative. Refer to note 49(3) (Financial instruments: Financial assets and liabilities carried at fair value) for details of valuation techniques and significant inputs to valuation models. Changes in the fair value of all derivative instruments, other than those in effective cash flow and net investment hedging relationships, are recognised immediately in the income statement. As noted in (2) and (3) below, the change in fair value of a derivative in an effective cash flow or net investment hedging relationship is allocated between the income statement and other comprehensive income. Derivatives embedded in a financial asset are not considered separately; the financial asset is considered in its entirety when determining whether its cash flows are solely payments of principal and interest. Derivatives embedded in financial liabilities and insurance contracts (unless the embedded derivative is itself an insurance contract) are treated as separate derivatives when their economic characteristics and risks are not closely related to those of the host contract and the host contract is not carried at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognised in the income statement. In accordance with IFRS 4 Insurance Contracts, a policyholder’s option to surrender an insurance contract for a fixed amount is not treated as an embedded derivative. Hedge accounting allows one financial instrument, generally a derivative such as a swap, to be designated as a hedge of another financial instrument such as a loan or deposit or a portfolio of such instruments. At the inception of the hedge relationship, formal documentation is drawn up specifying the hedging strategy, the hedged item, the hedging instrument and the methodology that will be used to measure the effectiveness of the hedge relationship in offsetting changes in the fair value or cash flow of the hedged risk. The effectiveness of the hedging relationship is tested both at inception and throughout its life and if at any point it is concluded that it is no longer highly effective in achieving its documented objective, hedge accounting is discontinued. Note 17 provides details of the types of derivatives held by the Group and presents separately those designated in hedge relationships. Further information on hedge accounting is set out below. (1) FAIR VALUE HEDGES Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk; this also applies if the hedged asset is classified as a financial asset at fair value through other comprehensive income. If the hedge no longer meets the criteria for hedge accounting, changes in the fair value of the hedged item attributable to the hedged risk are no longer recognised in the income statement. The cumulative adjustment that has been made to the carrying amount of the hedged item is amortised to the income statement using the effective interest method over the period to maturity. (2) CASH FLOW HEDGES The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income in the cash flow hedge reserve. The gain or loss relating to the ineffective portion is recognised immediately in the income statement. Amounts accumulated in equity are reclassified to the income statement in the periods in which the hedged item affects profit or loss. 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 in the income statement when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement. (3) NET INVESTMENT HEDGES Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income, the gain or loss relating to the ineffective portion is recognised immediately in the income statement. Gains and losses accumulated in equity are included in the income statement when the foreign operation is disposed of. The hedging instrument used in net investment hedges may include non-derivative liabilities as well as derivative financial instruments. (G) Offset Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right of set-off and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. Cash collateral on exchange traded derivative transactions is presented gross unless the collateral cash flows are always settled net with the derivative cash flows. In certain situations, even though master netting agreements exist, the lack of management intention to settle on a net basis results in the financial assets and liabilities being reported gross on the balance sheet. (H) Impairment of financial assets The impairment charge in the income statement includes the change in expected credit losses and certain fraud costs. Expected credit losses are recognised for loans and advances to customers and banks, other financial assets held at amortised cost, financial assets measured at fair value through other comprehensive income, and certain loan commitments and financial guarantee contracts. Expected credit losses are calculated as an unbiased and probability-weighted estimate using an appropriate probability of default, adjusted to take into account a range of possible future economic scenarios, and applying this to the estimated exposure of the Group at the point of default after taking into account the value of any collateral held, repayments, or other mitigants of loss and including the impact of discounting using the effective interest rate. At initial recognition, allowance (or provision in the case of some loan commitments and financial guarantees) is made for expected credit losses resulting from default events that are possible within the next 12 months (12-month expected credit losses). In the event of a significant increase in credit risk since origination, allowance (or provision) is made for expected credit losses resulting from all possible default events over the expected life of the financial instrument (lifetime expected credit losses). Financial assets where 12-month expected credit losses are recognised are considered to be Stage 1; financial assets which are considered to have experienced a significant increase in credit risk since initial recognition are in Stage 2; and financial assets which have defaulted or are otherwise considered to be credit impaired are allocated to Stage 3. Some Stage 3 assets, mainly in Commercial Banking, are subject to individual rather than collective assessment. Such cases are subject to a risk-based impairment sanctioning process, and these are reviewed and updated at least quarterly, or more frequently if there is a significant change in the credit profile. An assessment of whether credit risk has increased significantly since initial recognition considers the change in the risk of default occurring over the remaining expected life of the financial instrument. The assessment is unbiased, probability-weighted and uses forward-looking information consistent with that used in the measurement of expected credit losses. In determining whether there has been a significant increase in credit risk, the Group uses quantitative tests based on relative and absolute probability of default (PD) movements linked to internal credit ratings together with qualitative indicators such as watchlists and other indicators of historical delinquency, credit weakness or financial difficulty. However, unless identified at an earlier stage, the credit risk of financial assets is deemed to have increased significantly when more than 30 days past due. Where the credit risk subsequently improves such that it no longer represents a significant increase in credit risk since origination, the asset is transferred back to Stage 1. Assets are transferred to Stage 3 when they have defaulted or are otherwise considered to be credit impaired. Default is considered to have occurred when there is evidence that the customer is experiencing financial difficulty which is likely to affect significantly the ability to repay the amount due. IFRS 9 contains a rebuttable presumption that default occurs no later than when a payment is 90 days past due. The Group uses this 90 day backstop for all its products except for UK mortgages. For UK mortgages, the Group uses a backstop of 180 days past due as mortgage exposures more than 90 days past due, but less than 180 days, typically show high cure rates and this aligns with the Group’s risk management practices. In certain circumstances, the Group will renegotiate the original terms of a customer’s loan, either as part of an ongoing customer relationship or in response to adverse changes in the circumstances of the borrower. In the latter circumstances, the loan will remain classified as either Stage 2 or Stage 3 until the credit risk has improved such that it no longer represents a significant increase since origination (for a return to Stage 1), or the loan is no longer credit impaired (for a return to Stage 2). Renegotiation may also lead to the loan and associated allowance being derecognised and a new loan being recognised initially at fair value. Purchased or originated credit-impaired financial assets (POCI) are financial assets that are purchased or originated at a deep discount that reflects incurred credit losses. At initial recognition, POCI assets do not carry an impairment allowance; instead, lifetime expected credit losses are incorporated into the calculation of the effective interest rate. All changes in lifetime expected credit losses subsequent to the assets’ initial recognition are recognised as an impairment charge. A loan or advance is normally written off, either partially or in full, against the related allowance when the proceeds from realising any available security have been received or there is no realistic prospect of recovery and the amount of the loss has been determined. Subsequent recoveries of amounts previously written off decrease the amount of impairment losses recorded in the income statement. For both secured and unsecured retail balances, the write-off takes place only once an extensive set of collections processes has been completed, or the status of the account reaches a point where policy dictates that continuing attempts to recover are no longer appropriate. For commercial lending, a write-off occurs if the loan facility with the customer is restructured, the asset is under administration and the only monies that can be received are the amounts estimated by the administrator, the underlying assets are disposed and a decision is made that no further settlement monies will be received, or external evidence (for example, third party valuations) is available that there has been an irreversible decline in expected cash flows. (I) Property, plant and equipment Property, plant and equipment (other than investment property) is included at cost less accumulated depreciation. The value of land (included in premises) is not depreciated. Depreciation on other ass |
CRITICAL ACCOUNTING JUDGEMENTS
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of accounting judgements and estimates [text block] [Abstract] | |
Disclosure of accounting judgements and estimates [text block] | NOTE 3: CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES The preparation of the Group’s financial statements in accordance with IFRS requires management to make judgements, estimates and assumptions in applying the accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Due to the inherent uncertainty in making estimates, actual results reported in future periods may be based upon amounts which differ from those estimates. Estimates, judgements and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty in these financial statements, which together are deemed critical to the Group’s results and financial position, are as follows: Allowance for impairment losses At 31 December 2018 the Group’s expected credit loss allowance was £3,362 million (1 January 2018: £3,533 million), of which £3,169 million (1 January 2018: £3,260 million) was in respect of drawn balances. The calculation of the Group’s expected credit loss (ECL) allowances and provisions against loan commitments and guarantees under IFRS 9 requires the Group to make a number of judgements, assumptions and estimates. The most significant are set out below. DEFINITION OF DEFAULT The probability of default (PD) of an exposure, both over a 12 month period and over its lifetime, is a key input to the measurement of the ECL allowance. Default has occurred when there is evidence that the customer is experiencing significant financial difficulty which is likely to affect the ability to repay amounts due. The definition of default adopted by the Group is described in note 2(H) Impairment of financial assets. The Group has rebutted the presumption in IFRS 9 that default occurs no later than when a payment is 90 days past due for UK mortgages. As a result, approximately £0.6 billion of UK mortgages were classified as Stage 2 rather than Stage 3 at 31 December 2018; the impact on the Group’s ECL allowance was not material. LIFETIME OF AN EXPOSURE The PD of a financial asset is dependent on its expected life. A range of approaches, segmented by product type, has been adopted by the Group to estimate a product’s expected life. These include using the full contractual life and taking into account behavioural factors such as early repayments and refinancing. For non-revolving retail assets, the Group has assumed the expected life for each product to be the time taken for all significant losses to be observed and for a material proportion of the assets to fully resolve through either closure or write-off. For retail revolving products, the Group has considered the losses beyond the contractual term over which the Group is exposed to credit risk. For commercial overdraft facilities, the average behavioural life has been used. Changes to the assumed expected lives of the Group’s assets could have a material effect on the ECL allowance recognised by the Group. SIGNIFICANT INCREASE IN CREDIT RISK Performing assets are classified as either Stage 1 or Stage 2. An ECL allowance equivalent to 12 months expected losses is established against assets in Stage 1; assets classified as Stage 2 carry an ECL allowance equivalent to lifetime expected losses. Assets are transferred from Stage 1 to Stage 2 when there has been a significant increase in credit risk (SICR) since initial recognition. The Group uses a quantitative test together with qualitative indicators to determine whether there has been a SICR for an asset. For retail, a deterioration in the Retail Master Scale of four grades for credit cards, personal loans or overdrafts, three grades for personal mortgages, or two grades in the Corporate Master Scale for UK motor finance accounts is treated as a SICR. For Commercial a doubling of PD with a minimum increase in PD of 1 per cent and a resulting change in the underlying grade is treated as a SICR. All financial assets are assumed to have suffered a SICR if they are more than 30 days past due. The setting of precise trigger points combined with risk indicators requires judgement. The use of different trigger points may have a material impact upon the size of the ECL allowance. The Group monitors the effectiveness of SICR criteria on an ongoing basis. The assessment of whether there has been a significant increase in credit risk is a relative measure, dependent on an asset’s PD at origination. For assets existing at 1 January 2018, the initial application date of IFRS 9, this information is not generally available and consequently management judgement has been used to determine a reasonable basis for estimating the original PD. Management used various information sources, including regulatory PDs and credit risk data available at origination, or where this is not available the first available data. In addition, the Group has not created a forward looking view of PDs at initial recognition for the back book as to do so would involve the use of hindsight and could introduce the risk of bias. The use of proxies and simplifications is not considered to materially impact the ECL allowance on transition. POST-MODEL ADJUSTMENTS Limitations in the Group’s impairment models or input data may be identified through the on-going assessment and validation of the output of the models. In these circumstances, management make appropriate adjustments to the Group’s allowance for impairment losses. These adjustments are generally modelled taking into account the particular attributes of the exposure which have not been adequately captured by the primary impairment models. At 31 December 2018, post-model adjustments were mainly related to UK secured lending with no individual adjustment being material. FORWARD LOOKING INFORMATION The measurement of expected credit losses is required to reflect an unbiased probability-weighted range of possible future outcomes. In order to do this, the Group has developed an economic model to project sixteen key impairment drivers using information derived mainly from external sources. These drivers include factors such as the unemployment rate, the house price index, commercial property prices and corporate credit spreads. The model-generated economic scenarios for the six years beyond 2018 are mapped to industry-wide historical loss data by portfolio. Combined losses across portfolios are used to rank the scenarios by severity of loss. Four scenarios from specified points along the loss distribution are selected to reflect the range of outcomes; the central scenario reflects the Group’s base case assumptions used for medium-term planning purposes, an upside and a downside scenario are also selected together with a severe downside scenario. Rare occurrences of adverse economic events can lead to relatively large credit losses which means that typically the most likely outcome is less than the probability-weighted outcome of the range of possible future events. To allow for this a relatively unlikely severe downside scenario is therefore included. At 1 January and 31 December 2018, the base case, upside and downside scenarios each carry a 30 per cent weighting; the severe downside scenario is weighted at 10 per cent. The choice of alternative scenarios and scenario weights is a combination of quantitative analysis and judgemental assessment to ensure that the full range of possible outcomes and material non-linearity of losses are captured. A committee under the chairmanship of the Chief Economist meets quarterly, to review and, if appropriate, recommend changes to the economic scenarios to the Chief Financial Officer and Chief Risk Officer. Findings dealing with all aspects of the expected credit loss calculation are presented to the Group Audit Committee. For each major product grouping models have been developed which utilise historical credit loss data to produce PDs for each scenario; an overall weighted average PD is used to assist in determining the staging of financial assets and related ECL. The key UK economic assumptions made by the Group as at 31 December 2018 averaged over a five-year period are shown below: Economic assumptions Base Case % Upside % Downside % Severe downside % At 31 December 2018 Interest rate 1.25 2.34 1.30 0.71 Unemployment rate 4.5 3.9 5.3 6.9 House price growth 2.5 6.1 (4.8 ) (7.5 ) Commercial real estate price growth 0.4 5.3 (4.7 ) (6.4 ) At 1 January 2018 Interest rate 1.18 2.44 0.84 0.01 Unemployment rate 5.0 4.0 6.1 7.1 House price growth 2.7 7.0 (2.4 ) (8.2 ) Commercial real estate price growth 0.0 3.0 (2.5 ) (5.4 ) The Group’s base-case economic scenario has changed little over the year and reflects a broadly stable outlook for the economy. Although there remains considerable uncertainty about the economic consequences of the UK’s planned exit from the European Union, the Group considers that at this stage the range of possible economic outcomes is adequately reflected in its choice and weighting of scenarios. The averages shown above do not fully reflect the peak to trough changes in the stated assumptions over the period. The tables below illustrate the variability of the assumptions from the start of the scenario period to the peak and trough. Economic assumptions – start to peak Base Case % Upside % Downside % Severe Downside % At 31 December 2018 Interest rate 1.75 4.00 1.75 1.25 Unemployment rate 4.8 4.3 6.3 8.6 House price growth 13.7 34.9 0.6 (1.6 ) Commercial real estate price growth 0.1 26.9 (0.5 ) (0.5 ) Economic assumptions – start to trough Base Case % Upside % Downside % Severe Downside % At 31 December 2018 Interest rate 0.75 0.75 0.75 0.25 Unemployment rate 4.1 3.5 4.3 4.2 House price growth 0.4 2.3 (26.5 ) (33.5 ) Commercial real estate price growth (0.1 ) 0.0 (23.8 ) (33.8 ) The table below shows the extent to which a higher ECL allowance has been recognised to take account of forward looking information from the weighted multiple economic scenarios. Impact of multiple economic scenarios Base Case £m Probability weighted £m Difference £m UK mortgages 253 460 207 Other Retail 1,294 1,308 14 Commercial Banking 1,472 1,513 41 Other 81 81 – At 31 December 2018 3,100 3,362 262 At 1 January 2018 3,182 3,533 351 The table below shows the Group’s ECL for the upside and downside scenarios using a 100 per cent weighting compared to the base case scenario; both stage allocation and the ECL are based on the single scenario only. All non-modelled provisions, including management judgement, remain unchanged. Upside £m Downside £m ECL allowance 2,775 3,573 The impact of changes in the UK unemployment rate and House Price Index (HPI) have also been assessed. Although such changes would not be observed in isolation, as economic indicators tend to be correlated in a coherent scenario, this gives insight into the sensitivity of the Group’s ECL to changes in these two critical economic factors. The assessment has been made against the base case with the reported staging unchanged. The changes to HPI and the unemployment rate have been phased in to the forward-looking economic outlook over three years. The table below shows the impact on the Group’s ECL resulting from a decrease/increase in Loss Given Default for a 10 percentage point (pp) increase/decrease in the UK House Price Index (HPI). 10pp increase in HPI 10pp decrease in HPI ECL impact, £m (114 ) 154 The table below shows the impact on the Group’s ECL resulting from a decrease/increase in Loss Given Default for a 1 percentage point (pp) increase/decrease in the UK unemployment rate. 1pp increase in unemployment 1pp decrease in unemployment ECL impact, £m 172 (155 ) Valuation of assets and liabilities arising from insurance business At 31 December 2018, the Group recognised a value of in-force business asset of £4,491 million (2017: £4,533 million) and an acquired value of in-force business asset of £271 million (2017: £306 million). The value of in-force business asset represents the present value of future profits expected to arise from the portfolio of in-force life insurance and participating investment contracts. The valuation of this asset requires assumptions to be made about future economic and operating conditions which are inherently uncertain and changes could significantly affect the value attributed to this asset. The methodology used to value this asset and the key assumptions that have been made in determining the carrying value of the value of in-force business asset at 31 December 2018 are set out in note 24. At 31 December 2018, the Group carried total liabilities arising from insurance contracts and participating investment contracts of £98,874 million (2017: £103,413 million). The methodology used to value these liabilities is described in note 31. Elements of the valuations of liabilities arising from insurance contracts and participating investment contracts require management to estimate future investment returns, future mortality rates and future policyholder behaviour. These estimates are subject to significant uncertainty. The methodology used to value these liabilities and the key assumptions that have been made in determining their carrying value are set out in note 31. The effect on the Group’s profit before tax and shareholders’ equity of changes in key assumptions used in determining the life insurance assets and liabilities is set out in note 32. Defined benefit pension scheme obligations The net asset recognised in the balance sheet at 31 December 2018 in respect of the Group’s defined benefit pension scheme obligations was £1,146 million (comprising an asset of £1,267 million and a liability of £121 million) (2017: a net asset of £509 million comprising an asset of £723 million and a liability of £214 million). The Group’s accounting policy for its defined benefit pension scheme obligations is set out in note 2(K). The accounting valuation of the Group’s defined benefit pension schemes’ liabilities requires management to make a number of assumptions. The key areas of estimation uncertainty are the discount rate applied to future cash flows and the expected lifetime of the schemes’ members. The discount rate is required to be set with reference to market yields at the end of the reporting period on high quality corporate bonds in the currency and with a term consistent with the defined benefit pension schemes’ obligations. The average duration of the schemes’ obligations is approximately 18 years. The market for bonds with a similar duration is illiquid and, as a result, significant management judgement is required to determine an appropriate yield curve on which to base the discount rate. The cost of the benefits payable by the schemes will also depend upon the life expectancy of the members. The Group considers latest market practice and actual experience in determining the appropriate assumptions for both current mortality expectations and the rate of future mortality improvement. It is uncertain whether this rate of improvement will be sustained going forward and, as a result, actual experience may differ from current expectations. The effect on the net accounting surplus or deficit and on the pension charge in the Group’s income statement of changes to the principal actuarial assumptions is set out in part (iii) of note 35. Recoverability of deferred tax assets At 31 December 2018 the Group carried deferred tax assets on its balance sheet of £2,453 million (2017: £2,284 million) principally relating to tax losses carried forward. Estimation of income taxes includes the assessment of recoverability of deferred tax assets. Deferred tax assets are only recognised to the extent they are considered more likely than not to be recoverable based on existing tax laws and forecasts of future taxable profits against which the underlying tax deductions can be utilised. The Group has recognised a deferred tax asset of £3,778 million (2017: £4,034 million) in respect of UK trading losses carried forward. Substantially all of these losses have arisen in Bank of Scotland plc and Lloyds Bank plc, and they will be utilised as taxable profits arise in those legal entities in future periods. The Group’s expectations as to the level of future taxable profits take into account the Group’s long-term financial and strategic plans, and anticipated future tax-adjusting items. In making this assessment, account is taken of business plans, the Board-approved operating plan and the expected future economic outlook as set out in the strategic report, as well as the risks associated with future regulatory change. Under current law there is no expiry date for UK trading losses not yet utilised, although (since Finance Act 2016) banking losses that arose before 1 April 2015 can only be used against 25 per cent of taxable profits arising after 1 April 2016, and they cannot be used to reduce the surcharge on banking profits. This restriction in utilisation means that the value of the deferred tax asset is only expected to be fully recovered by 2033. It is possible that future tax law changes could materially affect the value of these losses ultimately realised by the Group. As disclosed in note 36, deferred tax assets totalling £585 million (2017: £683 million) have not been recognised in respect of certain capital and trading losses carried forward, unrelieved foreign tax credits and other tax deductions, as there are currently no expected future taxable profits against which these assets can be utilised. Payment protection insurance and other regulatory provisions At 31 December 2018, the Group carried provisions of £2,385 million (2017: £4,070 million) against the cost of making redress payments to customers and the related administration costs in connection with historical regulatory breaches, principally the mis-selling of payment protection insurance (2018 £1,524 million; 2017: £2,778 million). Determining the amount of the provisions, which represent management’s best estimate of the cost of settling these issues, requires the exercise of significant judgement. It will often be necessary to form a view on matters which are inherently uncertain, such as the scope of reviews required by regulators, the number of future complaints, the extent to which they will be upheld, the average cost of redress and the impact of legal decisions that may be relevant to claims received. Consequently the continued appropriateness of the underlying assumptions is reviewed on a regular basis against actual experience and other relevant evidence and adjustments made to the provisions where appropriate. More detail on the nature of the assumptions that have been made and key sensitivities is set out in note 37. Fair value of financial instruments At 31 December 2018, the carrying value of the Group’s financial instrument assets held at fair value was £206,939 million (2017: £230,810 million), and its financial instrument liabilities held at fair value was £51,920 million (2017: £77,001 million). In accordance with IFRS 13 Fair Value Measurement, the Group categorises financial instruments carried on the balance sheet at fair value using a three level hierarchy. Financial instruments categorised as level 1 are valued using quoted market prices and therefore there is minimal judgement applied in determining fair value. However, the fair value of financial instruments categorised as level 2 and, in particular, level 3 is determined using valuation techniques including discounted cash flow analysis and valuation models. The valuation techniques for level 2 and, particularly, level 3 financial instruments involve management judgement and estimates the extent of which depends on the complexity of the instrument and the availability of market observable information. In addition, in line with market practice, the Group applies credit, debit and funding valuation adjustments in determining the fair value of its uncollateralised derivative positions. A description of these adjustments is set out in note 49. Further details of the Group’s level 3 financial instruments and the sensitivity of their valuation including the effect of applying reasonably possible alternative assumptions in determining their fair value are also set out in note 49. Details about sensitivities to market risk arising from trading assets and other treasury positions can be found in the risk management section on page 96. |
SEGMENTAL ANALYSIS
SEGMENTAL ANALYSIS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of entity's operating segments [text block] [Abstract] | |
Disclosure of entity's operating segments [text block] | NOTE 4: SEGMENTAL ANALYSIS Lloyds Banking Group provides a wide range of banking and financial services in the UK and in certain locations overseas. The Group Executive Committee (GEC) has been determined to be the chief operating decision maker for the Group. The Group’s operating segments reflect its organisational and management structures. The GEC reviews the Group’s internal reporting based around these segments in order to assess performance and allocate resources. GEC considers interest income and expense on a net basis and consequently the total interest income and expense for all reportable segments is presented net. The segments are differentiated by the type of products provided and by whether the customers are individuals or corporate entities. The segmental results and comparatives are presented on an underlying basis, the basis reviewed by the chief operating decision maker. The effects of the following are excluded in arriving at underlying profit: – losses on redemption of the Enhanced Capital Notes in 2016 and the volatility in the value of the embedded equity conversion feature; – market volatility and asset sales, which includes the effects of certain asset sales, the volatility relating to the Group’s own debt and hedging arrangements and that arising in the insurance businesses and insurance gross up; – the unwind of acquisition-related fair value adjustments and the amortisation of purchased intangible assets; – restructuring costs, comprising costs relating to the Simplification programme and the costs of implementing regulatory reform and ring-fencing, the rationalisation of the non-branch property portfolio and the integration of MBNA; and – payment protection insurance. For the purposes of the underlying income statement, operating lease depreciation (net of gains on disposal of operating lease assets) is shown as an adjustment to total income. In 2018 charges in relation to other conduct provisions (referred to as remediation) have been reclassified so that they are now included in underlying profit. In addition, results in relation to certain assets which are outside the Group’s risk appetite, previously reported as part of run-off within Other, have been reclassified into Retail and Commercial. Comparative figures have been restated accordingly. The Group’s activities are organised into three financial reporting segments: Retail; Commercial Banking; and Insurance and Wealth. Retail offers a broad range of financial service products, including current accounts, savings, mortgages, motor finance and unsecured consumer lending to personal and small business customers. Commercial Banking provides a range of products and services such as lending, transactional banking, working capital management, risk management and debt capital markets services to SMEs, corporates and financial institutions. Insurance and Wealth offers insurance, investment and wealth management products and services. Other includes certain assets previously reported as outside of the Group’s risk appetite and income and expenditure not attributed to divisions, including the costs of certain central and head office functions and the Group’s private equity business, Lloyds Development Capital. Inter-segment services are generally recharged at cost, with the exception of the internal commission arrangements between the UK branch and other distribution networks and the insurance product manufacturing businesses within the Group, where a profit margin is also charged. Inter-segment lending and deposits are generally entered into at market rates, except that non-interest bearing balances are priced at a rate that reflects the external yield that could be earned on such funds. For the majority of those derivative contracts entered into by business units for risk management purposes, the business unit recognises the net interest income or expense on an accrual accounting basis and transfers the remainder of the movement in the fair value of the derivative to the central group segment where the resulting accounting volatility is managed where possible through the establishment of hedge accounting relationships. Any change in fair value of the hedged instrument attributable to the hedged risk is also recorded within the central group segment. This allocation of the fair value of the derivative and change in fair value of the hedged instrument attributable to the hedged risk avoids accounting asymmetry in segmental results and leads to accounting volatility, which is managed centrally and reported within Other. Retail Commercial Insurance Other Underlying Year ended 31 December 2018 Net interest income 9,066 3,004 123 521 12,714 Other income, net of insurance claims 2,171 1,653 1,865 321 6,010 Total underlying income, net of insurance claims 11,237 4,657 1,988 842 18,724 Operating lease depreciation 1 (921 ) (35 ) – – (956 ) Net income 10,316 4,622 1,988 842 17,768 Operating costs (4,915 ) (2,167 ) (1,021 ) (62 ) (8,165 ) Remediation (267 ) (203 ) (39 ) (91 ) (600 ) Total costs (5,182 ) (2,370 ) (1,060 ) (153 ) (8,765 ) Impairment (charge) credit (862 ) (92 ) (1 ) 18 (937 ) Underlying profit 4,272 2,160 927 707 8,066 External income 13,097 4,876 1,895 (1,144 ) 18,724 Inter-segment income (1,860 ) (219 ) 93 1,986 – Segment underlying income, net of insurance claims 11,237 4,657 1,988 842 18,724 Segment external assets 349,719 164,897 140,487 142,495 797,598 Segment customer deposits 252,808 148,633 14,063 2,562 418,066 Segment external liabilities 260,378 191,071 147,673 148,277 747,399 Analysis of segment underlying other income, net of insurance claims: Current accounts 503 142 5 – 650 Credit and debit card fees 988 4 1 – 993 Commercial banking and treasury fees – 305 – – 305 Unit trust and insurance broking 13 – 208 – 221 Private banking and asset management – 5 92 – 97 Factoring – 83 – – 83 Other fees and commissions 52 253 163 31 499 Fees and commissions receivable 1,556 792 469 31 2,848 Fees and commissions payable (855 ) (57 ) (418 ) (56 ) (1,386 ) Net fee and commission income 701 735 51 (25 ) 1,462 Operating lease rental income 1,305 38 – – 1,343 Rental income from investment properties – – 197 – 197 Gains less losses on disposal of financial assets at fair value through other comprehensive income – – – 275 275 Lease termination income – 7 – – 7 Net trading income, excluding insurance 71 766 – 227 1,064 Insurance and other, net of insurance claims 247 358 2,146 (1,089 ) 1,662 Other external income, net of insurance claims 1,623 1,169 2,343 (587 ) 4,548 Inter-segment other income (153 ) (251 ) (529 ) 933 – Segment other income, net of insurance claims 2,171 1,653 1,865 321 6,010 Other segment items reflected in income statement above: Depreciation and amortisation 1,573 278 154 400 2,405 Decrease in value of in-force business – – (55 ) – (55 ) Defined benefit scheme charges 121 48 20 216 405 Other segment items: Additions to fixed assets 2,092 208 223 991 3,514 Investments in joint ventures and associates at end of year 4 6 – 81 91 1 Net of profits on disposal of operating lease assets of £60 million. Retail Commercial Insurance Other Underlying Year ended 31 December 2017 1 Net interest income 8,706 3,030 133 451 12,320 Other income, net of insurance claims 2,221 1,798 1,846 340 6,205 Total underlying income, net of insurance claims 10,927 4,828 1,979 791 18,525 Operating lease depreciation 2 (947 ) (105 ) – (1 ) (1,053 ) Net income 9,980 4,723 1,979 790 17,472 Operating costs (4,866 ) (2,230 ) (1,040 ) (48 ) (8,184 ) Remediation (633 ) (173 ) (40 ) (19 ) (865 ) Total costs (5,499 ) (2,403 ) (1,080 ) (67 ) (9,049 ) Impairment (charge) credit (711 ) (89 ) – 5 (795 ) Underlying profit 3,770 2,231 899 728 7,628 External income 12,682 3,176 1,883 784 18,525 Inter-segment income (1,755 ) 1,652 96 7 – Segment underlying income, net of insurance claims 10,927 4,828 1,979 791 18,525 Segment external assets 350,219 177,808 151,986 132,096 812,109 Segment customer deposits 253,127 148,313 13,770 2,914 418,124 Segment external liabilities 258,612 224,577 157,824 121,953 762,966 Analysis of segment underlying other income, net of insurance claims: Current accounts 572 135 5 – 712 Credit and debit card fees 948 4 1 – 953 Commercial banking and treasury fees – 321 – – 321 Unit trust and insurance broking 10 – 214 – 224 Private banking and asset management – 5 93 – 98 Factoring – 91 – – 91 Other fees and commissions 95 273 184 14 566 Fees and commissions receivable 1,625 829 497 14 2,965 Fees and commissions payable (873 ) (50 ) (380 ) (79 ) (1,382 ) Net fee and commission income 752 779 117 (65 ) 1,583 Operating lease rental income 1,281 63 – – 1,344 Rental income from investment properties – 1 212 – 213 Gains less losses on disposal of available-for-sale financial assets – 29 (3 ) 420 446 Lease termination income – 74 – – 74 Trading income 26 490 – (98 ) 418 Insurance and other, net of insurance claims 6 27 2,223 (129 ) 2,127 Other external income, net of insurance claims 1,313 684 2,432 193 4,622 Inter-segment other income 156 335 (703 ) 212 – Segment other income, net of insurance claims 2,221 1,798 1,846 340 6,205 Other segment items reflected in income statement above: Depreciation and amortisation 1,547 322 197 304 2,370 Increase in value of in-force business – – (165 ) – (165 ) Defined benefit scheme charges 149 52 25 133 359 Other segment items: Additions to fixed assets 2,431 130 274 820 3,655 Investments in joint ventures and associates at end of year 12 6 – 47 65 1 Restated see page F-22. 2 Net of profits on disposal of operating lease assets of £32 million. Retail Commercial Insurance Other Underlying Year ended 31 December 2016 1 Net interest income 8,074 2,863 80 418 11,435 Other income, net of insurance claims 2,165 1,875 1,878 86 6,004 Total underlying income, net of insurance claims 10,239 4,738 1,958 504 17,439 Operating lease depreciation 2 (777 ) (118 ) – – (895 ) Net income 9,462 4,620 1,958 504 16,544 Operating costs (4,761 ) (2,215 ) (1,046 ) (71 ) (8,093 ) Remediation (750 ) (148 ) (103 ) (23 ) (1,024 ) Total costs (5,511 ) (2,363 ) (1,149 ) (94 ) (9,117 ) Impairment (charge) credit (648 ) (11 ) – 14 (645 ) Underlying profit 3,303 2,246 809 424 6,782 External income 12,243 3,656 1,373 167 17,439 Inter-segment income (2,004 ) 1,082 585 337 – Segment underlying income, net of insurance claims 10,239 4,738 1,958 504 17,439 Segment external assets 340,253 193,054 154,782 129,704 817,793 Segment customer deposits 256,453 142,439 13,798 2,770 415,460 Segment external liabilities 265,128 231,450 160,815 111,935 769,328 Analysis of segment underlying other income, net of insurance claims: Current accounts 614 131 7 – 752 Credit and debit card fees 854 4 1 16 875 Commercial banking and treasury fees – 303 – – 303 Unit trust and insurance broking – – 244 – 244 Private banking and asset management – 5 94 – 99 Factoring – 112 – – 112 Other fees and commissions 125 237 292 6 660 Fees and commissions receivable 1,593 792 638 22 3,045 Fees and commissions payable (783 ) (54 ) (424 ) (95 ) (1,356 ) Net fee and commission income 810 738 214 (73 ) 1,689 Operating lease rental income 1,142 83 – – 1,225 Rental income from investment properties – 2 227 – 229 Gains less losses on disposal of available-for-sale financial assets – 17 (2 ) 76 91 Lease termination income – 1 – – 1 Trading income 46 1,937 – (570 ) 1,413 Insurance and other, net of insurance claims (2 ) (627 ) 1,613 372 1,356 Other external income, net of insurance claims 1,186 1,413 1,838 (122 ) 4,315 Inter-segment other income 169 (276 ) (174 ) 281 – Segment other income, net of insurance claims 2,165 1,875 1,878 86 6,004 Other segment items reflected in income statement above: Depreciation and amortisation 1,345 326 169 540 2,380 Decrease in value of in-force business – – 472 – 472 Defined benefit scheme charges 141 51 31 64 287 Other segment items: Additions to fixed assets 2,362 145 481 772 3,760 Investments in joint ventures and associates at end of year 9 28 – 22 59 1 Restated – see page F-22. 2 Net of profits on disposal of operating lease assets of £58 million. Reconciliation of underlying basis to statutory results The underlying basis is the basis on which financial information is presented to the chief operating decision maker which excludes certain items included in the statutory results. The table below reconciles the statutory results to the underlying basis. Removal of: Lloyds Volatility 1 Insurance 2 PPI Underlying Year ended 31 December 2018 Net interest income 13,396 152 (834 ) – 12,714 Other income, net of insurance claims 5,230 107 673 – 6,010 Total income, net of insurance claims 18,626 259 (161 ) – 18,724 Operating lease depreciation 3 (956 ) – – (956 ) Net income 18,626 (697 ) (161 ) – 17,768 Operating expenses (11,729 ) 2,053 161 750 (8,765 ) Impairment (937 ) – – – (937 ) Profit before tax 5,960 1,356 – 750 8,066 Removal of: Lloyds Volatility 4 Insurance 2 PPI Underlying Year ended 31 December 2017 Net interest income 10,912 228 1,180 – 12,320 Other income, net of insurance claims 7,747 (186 ) (1,356 ) – 6,205 Total income, net of insurance claims 18,659 42 (176 ) – 18,525 Operating lease depreciation 3 (1,053 ) – – (1,053 ) Net income 18,659 (1,011 ) (176 ) – 17,472 Operating expenses (12,346 ) 1,821 176 1,300 (9,049 ) Impairment (688 ) (107 ) – – (795 ) Profit before tax 5,625 703 – 1,300 7,628 Removal of: Lloyds Volatility 5 Insurance 2 PPI Underlying Year ended 31 December 2016 Net interest income 9,274 263 1,898 – 11,435 Other income, net of insurance claims 7,993 121 (2,110 ) – 6,004 Total income, net of insurance claims 17,267 384 (212 ) – 17,439 Operating lease depreciation 3 (895 ) – – (895 ) Net income 17,267 (511 ) (212 ) – 16,544 Operating expenses (12,627 ) 1,948 212 1,350 (9,117 ) Impairment (752 ) 107 – – (645 ) Profit before tax 3,888 1,544 – 1,350 6,782 1 In the year ended 31 December 2018 this comprises the effects of asset sales (loss of £145 million); volatility and other items (gains of £95 million); the amortisation of purchased intangibles (£108 million); restructuring (£879 million, comprising severance related costs, the rationalisation of the non-branch property portfolio, the work on implementing the ring-fencing requirements and the integration of MBNA and Zurich’s UK workplace pensions and savings business); and the fair value unwind and other items (losses of £319 million). 2 The Group’s insurance businesses’ income statements include income and expenditure which are attributable to the policyholders of the Group’s long-term assurance funds. These items have no impact in total upon the profit attributable to equity shareholders and, in order to provide a clearer representation of the underlying trends within the business, these items are shown net within the underlying results. 3 Net of profits on disposal of operating lease assets of £60 million (2017: £32 million; 2016: £58 million). 4 Comprises the effects of asset sales (gain of £30 million); volatile items (gain of £263 million); liability management (loss of £14 million); the amortisation of purchased intangibles (£91 million); restructuring costs (£621 million, principally comprising costs relating to the Simplification programme; the rationalisation of the non-branch property portfolio, the work on implementing the ring-fencing requirements and the integration of MBNA); and the fair value unwind and other items (loss of £270 million). 5 Comprises the write-off of the Enhanced Capital Note embedded derivative and premium paid on redemption of the remaining notes (loss of £790 million); the effects of asset sales (gain of £217 million); volatile items (gain of £99 million); liability management (gain of £123 million); the amortisation of purchased intangibles (£340 million); restructuring costs (£622 million, principally comprising the severance related costs related to phase II of the Simplification programme); and the fair value unwind and other items (loss of £231 million). Geographical areas Following the reduction in the Group’s non-UK activities, an analysis between UK and non-UK activities is no longer provided. |
NET INTEREST INCOME
NET INTEREST INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of interest income (expense) [text block] [Abstract] | |
Disclosure of interest income (expense) [text block] | NOTE 5: NET INTEREST INCOME Weighted average 2018 2017 2016 2018 2017 2016 Interest and similar income: Loans and advances to customers 3.17 3.16 3.32 15,078 14,712 15,190 Loans and advances to banks 0.84 0.40 0.46 565 271 381 Debt securities held at amortised cost 1.60 1.29 1.47 66 43 56 Held-to-maturity investments — 1.44 — 231 Interest receivable on financial assets held at amortised cost 2.87 2.81 2.83 15,709 15,026 15,858 Financial assets at fair value through other comprehensive income 1.98 640 Available-for-sale financial assets 1.96 1.88 980 762 Total interest and similar income 1 2.82 2.73 2.77 16,349 16,006 16,620 Interest and similar expense: Deposits from banks, excluding liabilities under sale and repurchase transactions 1.39 1.18 0.65 (117 ) (80 ) (68 ) Customer deposits, excluding liabilities under sale and repurchase transactions 0.53 0.49 0.69 (1,813 ) (1,722 ) (2,520 ) Debt securities in issue 2 0.27 0.37 0.94 (234 ) (266 ) (799 ) Subordinated liabilities 7.63 7.93 8.35 (1,388 ) (1,481 ) (1,864 ) Liabilities under sale and repurchase agreements 0.96 0.58 0.46 (245 ) (110 ) (38 ) Interest payable on liabilities held at amortised cost 0.79 0.79 1.07 (3,797 ) (3,659 ) (5,289 ) Amounts payable to unitholders in consolidated open-ended investment vehicles (6.07 ) 9.15 10.85 844 (1,435 ) (2,057 ) Total interest and similar expense 3 0.60 1.06 1.44 (2,953 ) (5,094 ) (7,346 ) Net interest income 13,396 10,912 9,274 1 Includes £31 million (2017: £12 million; 2016: £nil) of interest income on liabilities with negative interest rates. 2 The impact of the Group’s hedging arrangements is included on this line; excluding this impact the weighted average effective interest rate in respect of debt securities in issue would be 2.68 per cent (2017: 2.43 per cent; 2016: 2.70 per cent). 3 Includes £10 million (2017: £50 million; 2016: £51 million) of interest expense on assets with negative interest rates. Included within interest and similar income is £227 million (2017: £179 million; 2016: £205 million) in respect of impaired financial assets. Net interest income also includes a credit of £701 million (2017: credit of £651 million; 2016: credit of £557 million) transferred from the cash flow hedging reserve (see note 41). |
NET FEE AND COMMISSION INCOME
NET FEE AND COMMISSION INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of fee and commission income (expense) [text block] [Abstract] | |
Disclosure of fee and commission income (expense) [text block] | NOTE 6: NET FEE AND COMMISSION INCOME 2018 2017 2016 Fee and commission income: Current accounts 650 712 752 Credit and debit card fees 993 953 875 Commercial banking and treasury fees 305 321 303 Unit trust and insurance broking 221 224 244 Private banking and asset management 97 98 99 Factoring 83 91 112 Other fees and commissions 499 566 660 Total fee and commission income 2,848 2,965 3,045 Fee and commission expense (1,386 ) (1,382 ) (1,356 ) Net fee and commission income 1,462 1,583 1,689 Fees and commissions which are an integral part of the effective interest rate form part of net interest income shown in note 5. Fees and commissions relating to instruments that are held at fair value through profit or loss are included within net trading income shown in note 7. The Group adopted IFRS 15 ‘Revenue from Contracts with Customers’ on 1 January 2018, comparatives have not been restated. Further details on the impact of the new accounting standard, which was not significant, are set out in note 54. At 31 December 2018, the Group held on its balance sheet £282 million in respect of these services and £168 million in respect of amounts received from customers for services to be provided after the balance sheet date. Current unsatisfied performance obligations amount to £314 million at 31 December 2018; the Group expects to receive substantially all of this revenue by 2021. The most significant performance obligations undertaken by the Group are the provision of bank account and transactional services and other value added offerings in respect of current accounts; factoring and loan commitments for commercial customers; card services to cardholders and merchants in respect of credit cards and debit cards; and the management and administration of policyholders’ funds in accordance with investment mandates. |
NET TRADING INCOME
NET TRADING INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of trading income (expense) [text block] [Abstract] | |
Disclosure of trading income (expense) [text block] | NOTE 7: NET TRADING INCOME 2018 £m 2017 2016 Foreign exchange translation gains/(losses) 342 (174 ) 1,363 Gains on foreign exchange trading transactions 580 517 542 Total foreign exchange 922 343 1,905 Investment property gains (losses) (note 26) 139 230 (83 ) Securities and other gains (see below) (4,937 ) 11,244 16,723 Net trading income (3,876 ) 11,817 18,545 Securities and other gains comprise net gains (losses) arising on assets and liabilities held at fair value through profit or loss as follows: 2018 £m 2017 2016 Net income arising on assets and liabilities mandatorily held at fair value through profit or loss: Financial instruments held for trading (8 ) 404 (428 ) Other financial instruments mandatorily held at fair value through profit or loss: Debt securities, loans and advances (26 ) 1,122 4,771 Equity shares (4,747 ) 9,862 12,534 (4,781 ) 11,388 16,877 Net (expense) income arising on assets and liabilities designated at fair value through profit or loss (156 ) (144 ) (154 ) Securities and other gains (4,937 ) 11,244 16,723 |
INSURANCE PREMIUM INCOME
INSURANCE PREMIUM INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of insurance premium revenue [text block] [Abstract] | |
Disclosure of insurance premium revenue [text block] | NOTE 8: INSURANCE PREMIUM INCOME 2018 £m 2017 2016 Life insurance Gross premiums: Life and pensions 6,612 6,273 5,613 Annuities 2,178 1,082 1,685 8,790 7,355 7,298 Ceded reinsurance premiums (271 ) (168 ) (88 ) Net earned premiums 8,519 7,187 7,210 Non-life insurance Net earned premiums 670 743 858 Total net earned premiums 9,189 7,930 8,068 |
OTHER OPERATING INCOME
OTHER OPERATING INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other operating income (expense) [text block] [Abstract] | |
Disclosure of other operating income (expense) [text block] | NOTE 9: OTHER OPERATING INCOME 2018 £m 2017 2016 Operating lease rental income 1,343 1,344 1,225 Rental income from investment properties (note 26) 197 213 229 Gains less losses on disposal of financial assets at fair value through other comprehensive income (2017 and 2016: available-for-sale financial assets) (note 41) 275 446 575 Movement in value of in-force business (note 24) (55 ) (165 ) 472 Liability management – (14 ) (598 ) Share of results of joint ventures and associates 9 6 (1 ) Other 151 165 133 Total other operating income 1,920 1,995 2,035 |
INSURANCE CLAIMS
INSURANCE CLAIMS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of claims and benefits paid [text block] [Abstract] | |
Disclosure of claims and benefits paid [text block] | NOTE 10: INSURANCE CLAIMS Insurance claims comprise: 2018 £m 2017 2016 Life insurance and participating investment contracts Claims and surrenders (8,735 ) (8,898 ) (8,617 ) Change in insurance and participating investment contracts (note 31) 4,565 (9,067 ) (14,160 ) Change in non-participating investment contracts 628 2,836 679 (3,542 ) (15,129 ) (22,098 ) Reinsurers’ share 404 35 106 (3,138 ) (15,094 ) (21,992 ) Change in unallocated surplus 8 (147 ) 14 Total life insurance and participating investment contracts (3,130 ) (15,241 ) (21,978 ) Non-life insurance Total non-life insurance claims, net of reinsurance (335 ) (337 ) (366 ) Total insurance claims (3,465 ) (15,578 ) (22,344 ) Life insurance and participating investment contracts gross claims and surrenders can also be analysed as follows: Deaths (721 ) (675 ) (635 ) Maturities (1,198 ) (1,280 ) (1,347 ) Surrenders (5,548 ) (5,674 ) (5,444 ) Annuities (1,032 ) (985 ) (949 ) Other (236 ) (284 ) (242 ) Total life insurance gross claims and surrenders (8,735 ) (8,898 ) (8,617 ) |
OPERATING EXPENSES
OPERATING EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of expenses [text block] [Abstract] | |
Disclosure of expenses [text block] | NOTE 11: OPERATING EXPENSES 2018 £m 2017 2016 Staff costs: Salaries 2,482 2,679 2,750 Performance-based compensation 509 473 475 Social security costs 343 361 363 Pensions and other post-retirement benefit schemes (note 35) 705 625 555 Restructuring costs 249 24 241 Other staff costs 474 448 433 4,762 4,610 4,817 Premises and equipment: Rent and rates 370 365 365 Repairs and maintenance 190 231 187 Other 169 134 120 729 730 672 Other expenses: Communications and data processing 1,121 882 848 Advertising and promotion 197 208 198 Professional fees 287 328 265 UK bank levy 225 231 200 Other 653 814 873 2,483 2,463 2,384 Depreciation and amortisation: Depreciation of property, plant and equipment (note 26) 1,852 1,944 1,761 Amortisation of acquired value of in-force non-participating investment contracts (note 24) 40 34 37 Amortisation of other intangible assets (note 25) 513 392 582 2,405 2,370 2,380 Goodwill impairment (note 23) – 8 – Total operating expenses, excluding regulatory provisions 10,379 10,181 10,253 Regulatory provisions: Payment protection insurance provision (note 37) 750 1,300 1,350 Other regulatory provisions 1 600 865 1,024 1,350 2,165 2,374 Total operating expenses 11,729 12,346 12,627 1 In 2016, regulatory provisions of £61 million were charged against income. Performance-based compensation The table below analyses the Group’s performance-based compensation costs between those relating to the current performance year and those relating to earlier years. 2018 £m 2017 2016 Performance-based compensation expense comprises: Awards made in respect of the year ended 31 December 362 334 312 Awards made in respect of earlier years 147 139 163 509 473 475 Performance-based compensation expense deferred until later years comprises: Awards made in respect of the year ended 31 December 152 127 123 Awards made in respect of earlier years 37 35 41 189 162 164 Performance-based awards expensed in 2018 include cash awards amounting to £137 million (2017: £102 million; 2016: £116 million). Average headcount The average number of persons on a headcount basis employed by the Group during the year was as follows: 2018 2017 2016 UK 71,857 75,150 79,606 Overseas 769 794 812 Total 72,626 75,944 80,418 |
AUDITORS' REMUNERATION
AUDITORS' REMUNERATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of auditors' remuneration [text block] [Abstract] | |
Disclosure of auditors' remuneration [text block] | NOTE 12: AUDITORS’ REMUNERATION Fees payable to the Company’s auditors by the Group are as follows: 2018 £m 2017 2016 Fees payable for the audit of the Company’s current year annual report 1.5 1.5 1.5 Fees payable for other services: Audit of the Company’s subsidiaries pursuant to legislation 19.1 18.6 14.7 Other services supplied pursuant to legislation 2.9 3.0 3.1 Total audit fees 23.5 23.1 19.3 Other services – audit related fees 1.2 1.2 3.1 Total audit and audit related fees 24.7 24.3 22.4 Services relating to taxation: Taxation compliance services – – 0.2 All other taxation advisory services – – 0.1 – – 0.3 Other non-audit fees: Services relating to corporate finance transactions – 1.2 0.1 Other services 2.0 2.4 1.5 Total other non-audit fees 2.0 3.6 1.6 Total fees payable to the Company’s auditors by the Group 26.7 27.9 24.3 The following types of services are included in the categories listed above: Audit fees: Audit related fees: Services relating to taxation: Other non-audit fees: It is the Group’s policy to use the auditors on assignments in cases where their knowledge of the Group means that it is neither efficient nor cost effective to employ another firm of accountants. Such assignments typically relate to assistance in transactions involving the acquisition and disposal of businesses and accounting advice. The Group has procedures that are designed to ensure auditor independence, including prohibiting certain non-audit services. All statutory audit work as well as most non-audit assignments must be pre-approved by the audit committee on an individual engagement basis; for certain types of non-audit engagements where the fee is ‘de minimis’ the audit committee has pre-approved all assignments subject to confirmation by management. On a quarterly basis, the audit committee receives and reviews a report detailing all pre-approved services and amounts paid to the auditors for such pre-approved services. During the year, the auditors also earned fees payable by entities outside the consolidated Lloyds Banking Group in respect of the following: 2018 £m 2017 2016 Audits of Group pension schemes 0.1 0.1 0.3 Audits of the unconsolidated Open Ended Investment Companies managed by the Group 0.3 0.3 0.4 Reviews of the financial position of corporate and other borrowers 0.4 0.2 1.2 Acquisition due diligence and other work performed in respect of potential venture capital investments – 0.1 1.0 |
IMPAIRMENT
IMPAIRMENT | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of impairment loss and reversal of impairment loss [text block] [Abstract] | |
Disclosure of impairment loss and reversal of impairment loss [text block] | NOTE 13: IMPAIRMENT Stage 1 Stage 2 Stage 3 Purchased or Total Year ended 31 December 2018 Impact of transfers between stages (12 ) 51 446 – 485 Other changes in credit quality (20 ) (47 ) 541 69 543 Additions (repayments) 18 (82 ) 43 (69 ) (90 ) Methodology changes (71 ) (21 ) 72 – (20 ) Other items (13 ) – 32 – 19 Other items impacting the impairment charge (86 ) (150 ) 688 – 452 Total impairment (98 ) (99 ) 1,134 – 937 In respect of: Loans and advances to banks 1 – – – 1 Loans and advances to customers (66 ) (51 ) 1,139 – 1,022 Debt securities – – – – – Financial assets at amortised cost (65 ) (51 ) 1,139 – 1,023 Other assets – – 1 – 1 Impairment charge on drawn balances (65 ) (51 ) 1,140 – 1,024 Loan commitments and financial guarantees (19 ) (48 ) (6 ) – (73 ) Financial assets at fair value through other comprehensive income (14 ) – – – (14 ) Total impairment (98 ) (99 ) 1,134 – 937 The Group’s impairment charge comprises the following items: TRANSFERS BETWEEN STAGES The net impact on the impairment charge of transfers between stages. OTHER CHANGES IN CREDIT QUALITY Changes in loss allowance as a result of movements in risk parameters that reflect changes in customer quality, but which have not resulted in a transfer to a different stage. This also contains the impact on the impairment charge as a result of write-offs and recoveries, where the related loss allowances are reassessed to reflect ultimate realisable or recoverable value. ADDITIONS (REPAYMENTS) Expected loss allowances are recognised on origination of new loans or further drawdowns of existing facilities. Repayments relate to the reduction of loss allowances as a result of repayments of outstanding balances. METHODOLOGY CHANGES Increase or decrease in impairment charge as a result of adjustments to the models used for expected credit loss calculations; either as changes to the model inputs (risk parameters) or to the underlying assumptions. 2017 2016 Impairment losses on loans and receivables: Loans and advances to customers 697 592 Debt securities classified as loans and receivables (6 ) – Total impairment losses on loans and receivables 691 592 Impairment of available-for-sale financial assets 6 173 Other credit risk provisions (9 ) (13 ) Total impairment charged to the income statement 688 752 Movements in the Group’s impairment allowances are shown in note 20. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of income tax [text block] [Abstract] | |
Disclosure of income tax [text block] | NOTE 14: TAXATION (A) Analysis of tax expense for the year 2018 £m 2017 2016 UK corporation tax: Current tax on profit for the year (1,386 ) (1,342 ) (1,010 ) Adjustments in respect of prior years 11 122 156 (1,375 ) (1,220 ) (854 ) Foreign tax: Current tax on profit for the year (34 ) (40 ) (20 ) Adjustments in respect of prior years 5 10 2 (29 ) (30 ) (18 ) Current tax expense (1,404 ) (1,250 ) (872 ) Deferred tax: Current year (127 ) (430 ) (758 ) Adjustments in respect of prior years (29 ) (48 ) (94 ) Deferred tax expense (156 ) (478 ) (852 ) Tax expense (1,560 ) (1,728 ) (1,724 ) The income tax expense is made up as follows: 2018 £m 2017 £m 2016 £m Tax (expense) credit attributable to policyholders 14 (82 ) (301 ) Shareholder tax expense (1,574 ) (1,646 ) (1,423 ) Tax expense (1,560 ) (1,728 ) (1,724 ) (B) Factors affecting the tax expense for the year The UK corporation tax rate for the year was 19.0 per cent (2017: 19.25 per cent; 2016: 20 per cent). An explanation of the relationship between tax expense and accounting profit is set out below: 2018 £m 2017 2016 Profit before tax 5,960 5,625 3,888 UK corporation tax thereon (1,132 ) (1,083 ) (778 ) Impact of surcharge on banking profits (432 ) (452 ) (266 ) Non-deductible costs: conduct charges (101 ) (287 ) (289 ) Non-deductible costs: bank levy (43 ) (44 ) (40 ) Other non-deductible costs (90 ) (59 ) (135 ) Non-taxable income 87 72 75 Tax-exempt gains on disposals 124 128 19 (Derecognition) recognition of losses that arose in prior years (9 ) – 59 Remeasurement of deferred tax due to rate changes 32 (9 ) (201 ) Differences in overseas tax rates 6 (15 ) 10 Policyholder tax (62 ) (66 ) (57 ) Policyholder deferred tax asset in respect of life assurance expenses 73 – (184 ) Adjustments in respect of prior years (13 ) 88 64 Tax effect of share of results of joint ventures – (1 ) (1 ) Tax expense (1,560 ) (1,728 ) (1,724 ) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of earnings per share [text block] [Abstract] | |
Disclosure of earnings per share [text block] | NOTE 15: EARNINGS PER SHARE 2018 £m 2017 2016 Profit attributable to equity shareholders – basic and diluted 3,869 3,392 1,651 Tax credit on distributions to other equity holders 106 102 91 3,975 3,494 1,742 2018 million 2017 million 2016 million Weighted average number of ordinary shares in issue – basic 71,638 71,710 71,234 Adjustment for share options and awards 641 683 790 Weighted average number of ordinary shares in issue – diluted 72,279 72,393 72,024 Basic earnings per share 5.5 p 4.9 p 2.4 p Diluted earnings per share 5.5 p 4.8 p 2.4 p Basic earnings per share are calculated by dividing the net profit attributable to equity shareholders by the weighted average number of ordinary shares in issue during the year, which has been calculated after deducting 38 million (2017: 57 million; 2016: 140 million) ordinary shares representing the Group’s holdings of own shares in respect of employee share schemes. For the calculation of diluted earnings per share the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares that arise in respect of share options and awards granted to employees. The number of shares that could have been acquired at the average annual share price of the Company’s shares based on the monetary value of the subscription rights attached to outstanding share options and awards is determined. This is deducted from the number of shares issuable under such options and awards to leave a residual bonus amount of shares which are added to the weighted-average number of ordinary shares in issue, but no adjustment is made to the profit attributable to equity shareholders. There were no anti-dilutive share options and awards excluded from the calculation of diluted earnings per share (2017: none; 2016: weighted-average of 0.3 million). |
FINANCIAL ASSETS AT FAIR VALUE
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS | 12 Months Ended |
Dec. 31, 2018 | |
Financial assets at fair value through profit or loss, category [member] | |
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS [Line Items] | |
Disclosure Of Trading And Other Financial Assets At Fair Value Through Profit Or Loss [Text Block] | NOTE 16: FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS These assets are comprised as follows: 31 December 2018 1 January 2018 31 December 2017 Trading Other financial Total Trading Other financial Total Trading Other financial Total Loans and advances to customers 26,886 10,964 37,850 29,976 11,434 41,410 29,976 – 29,976 Loans and advances to banks 848 2,178 3,026 1,614 2,582 4,196 1,614 – 1,614 Debt securities: Government securities 7,192 10,903 18,095 9,833 11,117 20,950 9,833 12,187 22,020 Other public sector securities – 2,064 2,064 – 1,543 1,543 – 1,527 1,527 Bank and building society certificates of deposit – 1,105 1,105 – 222 222 – 222 222 Asset-backed securities: Mortgage-backed securities 10 215 225 189 213 402 189 211 400 Other asset-backed securities 63 286 349 95 233 328 95 926 1,021 Corporate and other debt securities 247 18,063 18,310 523 19,707 20,230 523 19,467 19,990 7,512 32,636 40,148 10,640 33,035 43,675 10,640 34,540 45,180 Equity shares – 77,485 77,485 6 86,703 86,709 6 86,084 86,090 Treasury and other bills – 20 20 – 18 18 – 18 18 Total 35,246 123,283 158,529 42,236 133,772 176,008 42,236 120,642 162,878 Other financial assets at fair value through profit or loss include assets backing insurance contracts and investment contracts of £116,903 million (1 January 2018: £126,968 million; 31 December 2017: £117,323 million). Included within these assets are investments in unconsolidated structured entities of £26,028 million (1 January 2018: £28,759 million; 31 December 2017: £28,759 million), see note 48. For amounts included above which are subject to repurchase and reverse repurchase agreements see note 52. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of derivative financial instruments [text block] [Abstract] | |
Disclosure of derivative financial instruments [text block] | NOTE 17: DERIVATIVE FINANCIAL INSTRUMENTS The fair values and notional amounts of derivative instruments are set out in the following table: 31 December 2018 31 December 2017 Contract/ Fair value Fair value Contract/ Fair value Fair value Trading and other Exchange rate contracts: Spot, forwards and futures 41,571 746 549 31,716 1,023 789 Currency swaps 311,491 4,566 3,709 223,624 3,157 3,534 Options purchased 10,202 485 – 8,191 580 – Options written 11,393 – 495 6,684 – 627 374,657 5,797 4,753 270,215 4,760 4,950 Interest rate contracts: Interest rate swaps 4,381,271 13,624 12,629 2,264,834 15,791 15,364 Forward rate agreements 494,430 – 2 239,797 5 1 Options purchased 30,724 2,107 – 32,097 2,329 – Options written 26,463 – 1,997 32,817 – 2,524 Futures 128,211 16 4 35,542 9 7 5,061,099 15,747 14,632 2,605,087 18,134 17,896 Credit derivatives 13,757 99 181 4,568 77 423 Equity and other contracts 15,145 389 699 25,150 982 1,242 Total derivative assets/liabilities – trading and other 5,464,658 22,032 20,265 2,905,020 23,953 24,511 Hedging Derivatives designated as fair value hedges: Currency swaps 490 3 29 1,327 19 38 Interest rate swaps 150,971 947 187 109,670 1,145 407 151,461 950 216 110,997 1,164 445 Derivatives designated as cash flow hedges: Interest rate swaps 556,945 358 844 549,099 597 1,053 Futures – – – 73,951 – 1 Currency swaps 10,578 255 48 7,310 120 114 567,523 613 892 630,360 717 1,168 Total derivative assets/liabilities – hedging 718,984 1,563 1,108 741,357 1,881 1,613 Total recognised derivative assets/liabilities 6,183,642 23,595 21,373 3,646,377 25,834 26,124 The notional amount of the contract does not represent the Group’s real exposure to credit risk which is limited to the current cost of replacing contracts with a positive value to the Group should the counterparty default. To reduce credit risk the Group uses a variety of credit enhancement techniques such as netting and collateralisation, where security is provided against the exposure. Further details are provided in note 52 Credit risk. The Group holds derivatives as part of the following strategies: – Customer driven, where derivatives are held as part of the provision of risk management products to Group customers; – To manage and hedge the Group’s interest rate and foreign exchange risk arising from normal banking business. The hedge accounting strategy adopted by the Group is to utilise a combination of fair value and cash flow hedge approaches as described in note 52; and – Derivatives held in policyholder funds as permitted by the investment strategies of those funds. The principal derivatives used by the Group are as follows: – Interest rate related contracts include interest rate swaps, forward rate agreements and options. An interest rate swap is an agreement between two parties to exchange fixed and floating interest payments, based upon interest rates defined in the contract, without the exchange of the underlying principal amounts. Forward rate agreements are contracts for the payment of the difference between a specified rate of interest and a reference rate, applied to a notional principal amount at a specific date in the future. An interest rate option gives the buyer, on payment of a premium, the right, but not the obligation, to fix the rate of interest on a future loan or deposit, for a specified period and commencing on a specified future date. – Exchange rate related contracts include forward foreign exchange contracts, currency swaps and options. A forward foreign exchange contract is an agreement to buy or sell a specified amount of foreign currency on a specified future date at an agreed rate. Currency swaps generally involve the exchange of interest payment obligations denominated in different currencies; the exchange of principal can be notional or actual. A currency option gives the buyer, on payment of a premium, the right, but not the obligation, to sell specified amounts of currency at agreed rates of exchange on or before a specified future date. – Credit derivatives, principally credit default swaps, are used by the Group as part of its trading activity and to manage its own exposure to credit risk. A credit default swap is a swap in which one counterparty receives a premium at pre-set intervals in consideration for guaranteeing to make a specific payment should a negative credit event take place. – Equity derivatives are also used by the Group as part of its equity-based retail product activity to eliminate the Group’s exposure to fluctuations in various international stock exchange indices. Index-linked equity options are purchased which give the Group the right, but not the obligation, to buy or sell a specified amount of equities, or basket of equities, in the form of published indices on or before a specified future date. Details of the Group’s hedging instruments are set out below: Maturity 31 December 2018 Up to 1 month 1-3 months 3-12 months 1-5 years Over 5 years Total Fair value hedges Interest rate Cross currency swap Notional – 36 – 283 171 490 Average fixed interest rate – 4.82 % – 5.88 % 4.44 % Average EUR/USD exchange rate – – – 1.13 – Average USD/GBP exchange rate – – – 1.30 – Average NOK/GBP exchange rate – 9.22 – 9.19 9.03 Interest rate swap Notional 393 417 32,876 86,451 30,834 150,971 Average fixed interest rate 1.38 % 2.06 % 1.65 % 1.75 % 2.98 % Cash flow hedges Foreign exchange Currency swap Notional 67 47 2,234 2,111 6,119 10,578 Average USD/EUR exchange rate 1.15 – 1.13 1.10 1.07 Average USD/GBP exchange rate – 1.32 1.34 1.27 1.28 Interest rate Interest rate swap Notional 4,874 11,204 66,312 292,712 181,843 556,945 Average fixed interest rate 1.47 % 1.03 % 0.99 % 1.46 % 1.85 % The carrying amounts of the Group’s hedging instruments are as follows: Carrying amount of the hedging instrument Contract/notional Assets Liabilities Changes in fair 31 December 2018 £m £m £m £m Fair value hedges Interest rate Currency swaps 490 3 29 (10 ) Interest rate swaps 150,971 947 187 104 Cash flow hedges Foreign exchange Currency swaps 10,578 255 48 229 Interest rate Interest rate swaps 556,945 358 844 (781 ) All amounts are held within Derivative financial instruments. The Group’s hedged items are as follows: Carrying amount of the hedged Accumulated amount of fair Change in fair Cash flow hedge/currency Assets Liabilities Assets Liabilities for Continuing Discontinued 31 December 2018 £m £m £m £m £m £m £m Fair value hedges Interest rate Fixed rate mortgages 1 53,136 – (45 ) – (173 ) Fixed rate issuance 2 – 63,746 – 1,598 807 Fixed rate bonds 3 23,285 – 232 – (666 ) Cash flow hedges Foreign exchange Foreign currency issuance 2 (165 ) 114 327 Customer deposits 4 (62 ) 70 (78 ) Interest rate Customer loans 1 456 867 60 Central bank balances 5 (16 ) 30 20 Customer deposits 4 (118 ) (9 ) (6 ) 1 Included within Loans and advances to customers 2 Included within Debt securities in issue 3 Included within Financial assets at fair value through other comprehensive income 4 Included within Customer deposits 5 Included within Cash and balances at central banks The accumulated amount of fair value hedge adjustments remaining in the balance sheet for hedged items that have ceased to be adjusted for hedging gains and losses is a liability of £170 million. Gains and losses arising from hedge accounting are summarised as follows: Amounts reclassified from reserves to Gain (loss) Hedge 1 Hedged item Income statement 31 December 2018 £m £m £m Fair value hedge Interest rate Fixed rate mortgages 106 Fixed rate issuance (17 ) Fixed rate bonds (27 ) Cash flow hedges Foreign exchange Foreign currency issuance 85 – (81 ) Interest expense Customer deposits (22 ) (2 ) (32 ) Interest expense Interest rate Customer loans (418 ) (17 ) (467 ) Interest income Central bank balances (63 ) (5 ) (52 ) Interest income Customer deposits (49 ) (1 ) (69 ) Interest expense 1 Hedge ineffectiveness is included in the income statement within net trading income. There were no forecast transactions for which cash flow hedge accounting had to cease in 2018 as a result of the highly probable cash flows no longer being expected to occur. |
FINANCIAL ASSETS AT AMORTISED C
FINANCIAL ASSETS AT AMORTISED COST | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Financial Assets At Amortised Cost Explanatory [Abstract] | |
Disclosure of Financial Assets at Amortised Cost Explanatory [text block] | NOTE 18: FINANCIAL ASSETS AT AMORTISED COST (A) Loans and advances to customers Stage 1 Stage 2 Stage 3 Purchased or Total At 31 December 2017 474,699 Adjustment on adoption of IFRS 9 (note 54) (10,460 ) At 1 January 2018 403,881 37,245 5,140 17,973 464,239 Exchange and other movements 958 32 – – 990 Additions (repayments) 34,942 (2,187 ) (2,074 ) (2,609 ) 28,072 Transfers to Stage 1 19,524 (19,501 ) (23 ) – Transfers to Stage 2 (15,743 ) 15,996 (253 ) – Transfers to Stage 3 (2,031 ) (2,220 ) 4,251 – 1,750 (5,725 ) 3,975 – Recoveries – – 553 27 580 Disposal of businesses – (4,020 ) (277 ) – (4,297 ) Financial assets that have been written off during the year (1,576 ) – (1,576 ) At 31 December 2018 441,531 25,345 5,741 15,391 488,008 Allowance for impairment losses (525 ) (994 ) (1,553 ) (78 ) (3,150 ) Total loans and advances to customers 441,006 24,351 4,188 15,313 484,858 Stage 2 balances show a large reduction in the year largely as a result of the refinements to the transfer criteria approach in mortgages. There is also a reduction from the disposal of the Irish mortgage portfolio together with improvements in credit quality. (B) Loans and advances to banks Stage 1 Stage 2 Stage 3 Purchased or Total At 31 December 2017 6,611 Adjustment on adoption of IFRS 9 (note 54) (2,364 ) At 1 January 2018 4,245 2 – – 4,247 Exchange and other movements (29 ) 1 – – (28 ) Additions (repayments) 2,066 – – – 2,066 At 31 December 2018 6,282 3 – – 6,285 Allowance for impairment losses (2 ) – – – (2 ) Total loans and advances to banks 6,280 3 – – 6,283 (C) Debt securities Stage 1 Stage 2 Stage 3 Purchased or Total At 31 December 2017 3,669 Adjustment on adoption of IFRS 9 (note 54) (329 ) At 1 January 2018 3,291 – 49 – 3,340 Exchange and other movements 77 – (14 ) – 63 Additions (repayments) 1,870 – – – 1,870 Financial assets that have been written off during the year (29 ) – (29 ) At 31 December 2018 5,238 – 6 – 5,244 Allowance for impairment losses – – (6 ) – (6 ) Total debt securities 5,238 – – – 5,238 Total financial assets at amortised cost 452,524 24,354 4,188 15,313 496,379 Transfers between stages are deemed to have taken place at the start of the reporting period, with all other movements shown in the stage in which the asset is held at 31 December, with the exception of those held within Purchased or originated credit-impaired, which are not transferrable. Net increase and decrease in balances comprise new loans originated and repayments of outstanding balances throughout the reporting period. Loans which are written off in the period are first transferred to Stage 3 before acquiring a full allowance and subsequent write-off. |
FINANCE LEASE RECEIVABLES
FINANCE LEASE RECEIVABLES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of maturity analysis of finance lease payments receivable [text block] [Abstract] | |
Disclosure of maturity analysis of finance lease payments receivable [text block] | NOTE 19: FINANCE LEASE RECEIVABLES The Group’s finance lease receivables are classified as loans and advances to customers and accounted for at amortised cost. The balance is analysed as follows: 2018 2017 Gross investment in finance leases, receivable: Not later than 1 year 458 680 Later than 1 year and not later than 5 years 1,351 1,106 Later than 5 years 1,104 1,053 2,913 2,839 Unearned future finance income on finance leases (1,068 ) (692 ) Rentals received in advance (23 ) (53 ) Net investment in finance leases 1,822 2,094 The net investment in finance leases represents amounts recoverable as follows: 2018 2017 Not later than 1 year 152 546 Later than 1 year and not later than 5 years 679 887 Later than 5 years 991 661 Net investment in finance leases 1,822 2,094 Equipment leased to customers under finance leases primarily relates to structured financing transactions to fund the purchase of aircraft, ships and other large individual value items. During 2017 and 2018 no contingent rentals in respect of finance leases were recognised in the income statement. There was an allowance for uncollectable finance lease receivables included in the allowance for impairment losses of £1 million (2017: £nil). |
ALLOWANCE FOR IMPAIRMENT LOSSES
ALLOWANCE FOR IMPAIRMENT LOSSES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of allowance for credit losses [text block] [Abstract] | |
Disclosure of allowance for credit losses [text block] | NOTE 20: ALLOWANCE FOR IMPAIRMENT LOSSES ANALYSIS OF MOVEMENT IN THE ALLOWANCE FOR IMPAIRMENT LOSSES BY STAGE Stage 1 Stage 2 Stage 3 Purchased or Total In respect of drawn balances Balance at 31 December 2017 2,227 Adjustment on adoption of IFRS 9 (note 54) 1,033 Balance at 1 January 2018 590 1,147 1,491 32 3,260 Exchange and other adjustments 2 – 133 – 135 Transfers to Stage 1 304 (299 ) (5 ) – Transfers to Stage 2 (46 ) 85 (39 ) – Transfers to Stage 3 (32 ) (131 ) 163 – Impact of transfers between stages (233 ) 401 325 493 (7 ) 56 444 493 Other items charged to the income statement (58 ) (107 ) 696 – 531 Charge to the income statement (note 13) (65 ) (51 ) 1,140 – 1,024 Advances written off (1,605 ) – (1,605 ) Disposal of businesses 1 – (102 ) (79 ) – (181 ) Recoveries of advances written off in previous years 553 27 580 Discount unwind (63 ) 19 (44 ) At 31 December 2018 527 994 1,570 78 3,169 In respect of undrawn balances Balance at 31 December 2017 30 Adjustment on adoption of IFRS 9 (note 54) 243 Balance at 1 January 2018 147 126 – – 273 Exchange and other adjustments (5 ) (14 ) 12 – (7 ) Transfers to Stage 1 28 (28 ) – – Transfers to Stage 2 (6 ) 6 – – Transfers to Stage 3 (2 ) (5 ) 7 – Impact of transfers between stages (25 ) 22 (5 ) (8 ) (5 ) (5 ) 2 (8 ) Other items charged to the income statement (14 ) (43 ) (8 ) – (65 ) Charge to the income statement (note 13) (19 ) (48 ) (6 ) – (73 ) At 31 December 2018 123 64 6 – 193 Total 650 1,058 1,576 78 3,362 In respect of: Loans and advances to banks 2 – – – 2 Loans and advances to customers 525 994 1,553 78 3,150 Debt securities – – 6 – 6 Financial assets at amortised cost 527 994 1,559 78 3,158 Other assets – – 11 – 11 Provisions in relation to loan commitments and financial guarantees 123 64 6 – 193 Total 650 1,058 1,576 78 3,362 Expected credit loss in respect of financial assets at fair value through other comprehensive income (memorandum item) 1 – – – 1 1 Reflects the sale of the Group’s Irish mortgage portfolio. The Group income statement charge comprises: £m Drawn balances 1,024 Undrawn balances (73 ) Financial assets at fair value through other comprehensive income (14 ) Total 937 Transfers between stages are deemed to have taken place at the start of the reporting period, with all other movements shown in the stage in which the asset is held at 31 December, with the exception of those held within Purchased or originated credit-impaired, which are not transferrable. As assets are transferred between stages, the resulting change in expected credit loss of £493 million for drawn balances, and £8 million for undrawn balances, is presented separately as Impacts of transfers between stages, in the stage in which the expected credit loss is recognised at the end of the reporting period. Net increase and decrease in balances comprise the movements in the expected credit loss as a result of new loans originated and repayments of outstanding balances throughout the reporting period. Loans which are written off in the period are first transferred to Stage 3 before acquiring a full allowance and subsequent write-off. Consequently, recoveries on assets previously written-off also occur in Stage 3 only. For the year ended 31 December 2017 Loans and Debt Total At 1 January 2017 2,412 76 2,488 Exchange and other adjustments 132 – 132 Advances written off (1,499 ) (44 ) (1,543 ) Recoveries of advances written off in previous years 482 – 482 Unwinding of discount (23 ) – (23 ) Charge (release) to the income statement (note 13) 697 (6 ) 691 At 31 December 2017 2,201 26 2,227 Of the total allowance in respect of loans and advances to customers at 31 December 2017 £1,772 million related to lending that had been determined to be impaired (either individually or on a collective basis) at that reporting date. Of the total allowance in respect of loans and advances to customers at 31 December 2017 £1,201 million was assessed on a collective basis. |
FINANCIAL ASSETS AT FAIR VALU_2
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Fair Value Of Each Investment Designated As Measured At Fair Value Through Other Comprehensive Income Explantory [Abstract] | |
Disclosure of fair value of each investment designated as measured at fair value through other comprehensive income [text block] | NOTE 21: FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 31 December 1 January Debt securities: Government securities 18,971 34,708 Bank and building society certificates of deposit 118 167 Asset-backed securities: Mortgage-backed securities 120 2,381 Other asset-backed securities 131 467 Corporate and other debt securities 5,151 4,615 24,491 42,338 Treasury and other bills 303 – Equity shares 21 579 Total financial assets at fair value through other comprehensive income 24,815 42,917 All assets have been assessed at Stage 1 at 1 January and 31 December 2018. |
AVAILABLE-FOR-SALE FINANCIAL AS
AVAILABLE-FOR-SALE FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of available-for-sale financial assets [text block] [Abstract] | |
Disclosure of available-for-sale financial assets [text block] | NOTE 22: AVAILABLE-FOR-SALE FINANCIAL ASSETS 2017 Debt securities: Government securities 34,708 Bank and building society certificates of deposit 167 Asset-backed securities: Mortgage-backed securities 1,156 Other asset-backed securities 255 Corporate and other debt securities 4,615 40,901 Equity shares 1,197 Total available-for-sale financial assets 42,098 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of goodwill [text block] [Abstract] | |
Disclosure of goodwill [text block] | NOTE 23: GOODWILL 2018 2017 At 1 January 2,310 2,016 Acquisition of businesses – 302 Impairment charged to the income statement (note 11) – (8 ) At 31 December 2,310 2,310 Cost 1 2,664 2,664 Accumulated impairment losses (354 ) (354 ) At 31 December 2,310 2,310 1 For acquisitions made prior to 1 January 2004, the date of transition to IFRS, cost is included net of amounts amortised up to 31 December 2003. The goodwill held in the Group’s balance sheet is tested at least annually for impairment. For the purposes of impairment testing the goodwill is allocated to the appropriate cash generating unit; of the total balance of £2,310 million (2017: £2,310 million), £1,836 million, or 79 per cent of the total (2017: £1,836 million, 79 per cent of the total) has been allocated to Scottish Widows in the Group’s Insurance and Wealth division; £302 million, or 13 per cent of the total (2017: £302 million, or 13 per cent of the total) has been allocated to Cards in the Group’s Retail division; and £170 million, or 7 per cent of the total (2017: £170 million, 7 per cent of the total) to Motor Finance in the Group’s Retail division. The recoverable amount of the goodwill relating to Scottish Widows has been based on a value-in-use calculation. The calculation uses pre-tax projections of future cash flows based upon budgets and plans approved by management covering a three-year period, the related run-off of existing business in force and a discount rate of 9 per cent. The budgets and plans are based upon past experience adjusted to take into account anticipated changes in sales volumes, product mix and margins having regard to expected market conditions and competitor activity. The discount rate is determined with reference to internal measures and available industry information. New business cash flows beyond the three-year period have been extrapolated using a steady 2 per cent growth rate which does not exceed the long-term average growth rate for the life assurance market. Management believes that any reasonably possible change in the key assumptions above would not cause the recoverable amount of Scottish Widows to fall below its balance sheet carrying value. The recoverable amount of the goodwill relating to Motor Finance has also been based on a value-in-use calculation using pre-tax cash flow projections based on financial budgets and plans approved by management covering a five-year period and a discount rate of 14 per cent. The cash flows beyond the five-year period are extrapolated using a growth rate of 0.5 per cent which does not exceed the long-term average growth rates for the markets in which Motor Finance participates. Management believes that any reasonably possible change in the key assumptions above would not cause the recoverable amount of Motor Finance to fall below the balance sheet carrying value. The recoverable amount of the goodwill relating to the Cards business has been based on a value-in-use calculation using pre-tax cash flow projections based on financial budgets and plans approved by management covering a five-year period and a discount rate of 14 per cent. The cash flows beyond the five year period are extrapolated using a growth rate of 0.5 per cent which does not exceed the long-term average growth rates for the markets in which Cards participates. Management believes that any reasonably possible change in the key assumptions above would not cause the recoverable amount of the Cards business to fall below the balance sheet carrying value. |
VALUE OF IN-FORCE BUSINESS
VALUE OF IN-FORCE BUSINESS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of value of in-force business [Abstract] | |
Disclosure of value of in-force business [Text Block] | NOTE 24: VALUE OF IN-FORCE BUSINESS KEY ASSUMPTIONS The impact of reasonably possible changes in the key assumptions made in respect of the Group’s life insurance business, which include the impact on the value of in force business, are disclosed in note 32. The principal features of the methodology and process used for determining key assumptions used in the calculation of the value of in-force business are set out below: ECONOMIC ASSUMPTIONS Each cash flow is valued using the discount rate consistent with that applied to such a cash flow in the capital markets. In practice, to achieve the same result, where the cash flows are either independent of or move linearly with market movements, a method has been applied known as the ‘certainty equivalent’ approach whereby it is assumed that all assets earn a risk-free rate and all cash flows are discounted at a risk-free rate. The certainty equivalent approach covers all investment assets relating to insurance and participating investment contracts, other than the annuity business (where an illiquidity premium is included, see below). A market-consistent approach has been adopted for the valuation of financial options and guarantees, using a stochastic option pricing technique calibrated to be consistent with the market price of relevant options at each valuation date. Further information on options and guarantees can be found in note 31. The liabilities in respect of the Group’s UK annuity business are matched by a portfolio of fixed interest securities, including a large proportion of corporate bonds and illiquid loan assets. The value of the in-force business asset for UK annuity business has been calculated after taking into account an estimate of the market premium for illiquidity in respect of corporate bond holdings and relevant illiquid loan assets. In determining the market premium for illiquidity, a range of inputs are considered which reflect actual asset allocation and relevant observable market data. The illiquidity premium is estimated to be 128 basis points at 31 December 2018 (2017: 114 basis points). The risk-free rate is derived from the relevant swap curve with a deduction for credit risk. The table below shows the resulting range of yields and other key assumptions at 31 December: 2018 2017 Risk-free rate (value of in-force non-annuity business) 1 0.00 to 4.05 0.00 to 4.20 Risk-free rate (value of in-force annuity business) 1 1.28 to 5.33 1.14 to 5.34 Risk-free rate (financial options and guarantees) 1 0.00 to 4.05 0.00 to 4.20 Retail price inflation 3.43 3.43 Expense inflation 3.75 3.67 1 All risk-free rates are quoted as the range of rates implied by the relevant forward swap curve. NON-MARKET RISK An allowance for non-market risk is made through the choice of best estimate assumptions based upon experience, which generally will give the mean expected financial outcome for shareholders and hence no further allowance for non-market risk is required. However, in the case of operational risk, reinsurer default and the with-profit funds these can be asymmetric in the range of potential outcomes for which an explicit allowance is made. NON-ECONOMIC ASSUMPTIONS Future mortality, morbidity, expenses, lapse and paid-up rate assumptions are reviewed each year and are based on an analysis of past experience and on management’s view of future experience. Further information on these assumptions is given in note 31 and the effect of changes in key assumptions is given in note 32. The gross value of in-force business asset in the consolidated balance sheet is as follows: 2018 2017 Acquired value of in-force non-participating investment contracts 271 306 Value of in-force insurance and participating investment contracts 4,491 4,533 Total value of in-force business 4,762 4,839 The movement in the acquired value of in-force non-participating investment contracts over the year is as follows: 2018 2017 At 1 January 306 340 Acquisition of business 5 – Amortisation (note 11) (40 ) (34 ) At 31 December 271 306 The acquired value of in-force non-participating investment contracts includes £167 million (2017: £185 million) in relation to OEIC business. Movement in value of in-force business The movement in the value of in-force insurance and participating investment contracts over the year is as follows: 2018 2017 At 1 January 4,533 4,702 Exchange and other adjustments 13 (4 ) Movements in the year: New business 675 348 Existing business: Expected return (304 ) (318 ) Experience variances (122 ) (226 ) Assumption changes (67 ) (238 ) Economic variance (237 ) 269 Movement in the value of in-force business (note 9) (55 ) (165 ) At 31 December 4,491 4,533 This breakdown shows the movement in the value of in-force business only, and does not represent the full contribution that each item in the breakdown makes to profit before tax. This will also contain changes in the other assets and liabilities, including the effects of changes in assumptions used to value the liabilities, of the relevant businesses. The presentation of economic variance includes the impact of financial market conditions being different at the end of the year from those included in assumptions used to calculate new and existing business returns. |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of intangible assets [text block] [Abstract] | |
Disclosure of intangible assets [text block] | NOTE 25: OTHER INTANGIBLE ASSETS Brands Core deposit Purchased Customer- Capitalised Total Cost: At 1 January 2017 596 2,770 315 538 2,167 6,386 Acquisition of businesses – – 702 – – 702 Additions – – – – 850 850 Disposals – – – – (77 ) (77 ) At 31 December 2017 596 2,770 1,017 538 2,940 7,861 Additions – – – – 1,046 1,046 Disposals – – (15 ) – (55 ) (70 ) At 31 December 2018 596 2,770 1,002 538 3,931 8,837 Accumulated amortisation: At 1 January 2017 171 2,757 311 499 967 4,705 Charge for the year 22 13 44 20 293 392 Disposals – – – – (71 ) (71 ) At 31 December 2017 193 2,770 355 519 1,189 5,026 Charge for the year 23 – 71 19 400 513 Disposals – – (15 ) – (34 ) (49 ) At 31 December 2018 216 2,770 411 538 1,555 5,490 Balance sheet amount at 31 December 2018 380 – 591 – 2,376 3,347 Balance sheet amount at 31 December 2017 403 – 662 19 1,751 2,835 Included within brands above are assets of £380 million (31 December 2017: £380 million) that have been determined to have indefinite useful lives and are not amortised. These brands use the Bank of Scotland name which has been in existence for over 300 years. These brands are well established financial services brands and there are no indications that they should not have an indefinite useful life. The purchased credit card relationships represent the benefit of recurring income generated from portfolios of credit cards purchased. The balance sheet amount at 31 December 2018 is expected to be amortised over its remaining useful life of nine years. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of property, plant and equipment [text block] [Abstract] | |
Disclosure of property, plant and equipment [text block] | NOTE 26: PROPERTY, PLANT AND EQUIPMENT Investment properties £m Premises £m Equipment £m Operating lease assets £m Total £m Cost or valuation: At 1 January 2017 3,764 2,550 5,965 6,206 18,485 Exchange and other adjustments – (37 ) – (44 ) (81 ) Acquisition of businesses – 3 3 – 6 Additions – 70 382 2,262 2,714 Expenditure on investment properties (see below) 209 – – – 209 Change in fair value of investment properties (note 7) 230 – – – 230 Disposals (504 ) (795 ) (1,282 ) (1,896 ) (4,477 ) At 31 December 2017 3,699 1,791 5,068 6,528 17,086 Exchange and other adjustments – – (6 ) 11 5 Additions – 72 519 1,755 2,346 Expenditure on investment properties (see below) 143 – – – 143 Change in fair value of investment properties (note 7) 139 – – – 139 Disposals (211 ) (647 ) (574 ) (1,540 ) (2,972 ) At 31 December 2018 3,770 1,216 5,007 6,754 16,747 Accumulated depreciation and impairment: At 1 January 2017 – 1,333 2,671 1,509 5,513 Exchange and other adjustments – (8 ) (9 ) (34 ) (51 ) Depreciation charge for the year – 125 734 1,085 1,944 Disposals – (722 ) (1,271 ) (1,054 ) (3,047 ) At 31 December 2017 – 728 2,125 1,506 4,359 Exchange and other adjustments – 1 (8 ) 6 (1 ) Depreciation charge for the year – 121 715 1,016 1,852 Disposals – (634 ) (534 ) (595 ) (1,763 ) At 31 December 2018 – 216 2,298 1,933 4,447 Balance sheet amount at 31 December 2018 3,770 1,000 2,709 4,821 12,300 Balance sheet amount at 31 December 2017 3,699 1,063 2,943 5,022 12,727 Expenditure on investment properties is comprised as follows: 2018 2017 Acquisitions of new properties 81 82 Additional expenditure on existing properties 62 127 143 209 Rental income of £197 million (2017: £213 million) and direct operating expenses arising from properties that generate rental income of £23 million (2017: £24 million) have been recognised in the income statement. Capital expenditure in respect of investment properties which had been contracted for but not recognised in the financial statements was £33 million (2017: £21 million). The table above analyses movements in investment properties, all of which are categorised as level 3. See note 49 for details of levels in the fair value hierarchy. At 31 December the future minimum rentals receivable under non-cancellable operating leases were as follows: 2018 2017 Receivable within 1 year 1,095 1,301 1 to 5 years 1,156 1,419 Over 5 years 6 128 Total future minimum rentals receivable 2,257 2,848 Equipment leased to customers under operating leases primarily relates to vehicle contract hire arrangements. During 2017 and 2018 no contingent rentals in respect of operating leases were recognised in the income statement. Total future minimum sub-lease income of £60 million at 31 December 2018 (£71 million at 31 December 2017) is expected to be received under non-cancellable sub-leases of the Group’s premises. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other assets [text block] [Abstract] | |
Disclosure of other assets [text block] | NOTE 27: OTHER ASSETS 2018 2017 Assets arising from reinsurance contracts held (notes 31 and 33) 749 602 Deferred acquisition and origination costs 90 104 Settlement balances 743 720 Corporate pension asset 7,111 7,786 Investments in joint ventures and associates 91 65 Other assets and prepayments 3,742 4,260 Total other assets 12,526 13,537 |
FINANCIAL LIABILITIES AT FAIR V
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Trading And Other Financial Liabilities At Fair Value Through Profit Or Loss [Abstract] | |
Disclosure Of Trading And Other Financial Liabilities At Fair Value Through Profit Or Loss [Text Block] | NOTE 28: FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS 2018 2017 Liabilities designated at fair value through profit or loss: Debt securities in issue 7,085 7,812 Other 11 3 7,096 7,815 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements 21,595 41,378 Other deposits 242 381 Short positions in securities 1,614 1,303 23,451 43,062 Financial liabilities at fair value through profit or loss 30,547 50,877 Liabilities designated at fair value through profit or loss primarily represent debt securities in issue which either contain substantive embedded derivatives which would otherwise need to be recognised and measured at fair value separately from the related debt securities, or which are accounted for at fair value to significantly reduce an accounting mismatch. The amount contractually payable on maturity of the debt securities held at fair value through profit or loss at 31 December 2018 was £15,435 million, which was £8,350 million higher than the balance sheet carrying value (2017: £14,224 million, which was £6,412 million higher than the balance sheet carrying value). At 31 December 2018 there was a cumulative £386 million decrease in the fair value of these liabilities attributable to changes in credit spread risk; this is determined by reference to the quoted credit spreads of Lloyds Bank plc, the issuing entity within the Group. Of the cumulative amount a decrease of £533 million arose in 2018 and an increase of £52 million arose in 2017. For the fair value of collateral pledged in respect of repurchase agreements see note 52. |
DEBT SECURITIES IN ISSUE
DEBT SECURITIES IN ISSUE | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of debt instruments [text block] [Abstract] | |
Disclosure of debt instruments [text block] | NOTE 29: DEBT SECURITIES IN ISSUE 2018 2017 Medium-term notes issued 37,490 29,418 Covered bonds (note 30) 28,194 26,132 Certificates of deposit issued 12,020 9,999 Securitisation notes (note 30) 5,426 3,660 Commercial paper 8,038 3,241 Total debt securities in issue 91,168 72,450 |
SECURITISATIONS AND COVERED BON
SECURITISATIONS AND COVERED BONDS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Securitisations Programmes And Transactions [Abstract] | |
Disclosure Of Securitisations Programmes And Transactions [Text Block] | NOTE 30: SECURITISATIONS AND COVERED BONDS SECURITISATION PROGRAMMES Loans and advances to customers and debt securities carried at amortised cost include loans securitised under the Group’s securitisation programmes, the majority of which have been sold by subsidiary companies to bankruptcy remote structured entities. As the structured entities are funded by the issue of debt on terms whereby the majority of the risks and rewards of the portfolio are retained by the subsidiary, the structured entities are consolidated fully and all of these loans are retained on the Group’s balance sheet, with the related notes in issue included within debt securities in issue. COVERED BOND PROGRAMMES Certain loans and advances to customers have been assigned to bankruptcy remote limited liability partnerships to provide security for issues of covered bonds by the Group. The Group retains all of the risks and rewards associated with these loans and the partnerships are consolidated fully with the loans retained on the Group’s balance sheet and the related covered bonds in issue included within debt securities in issue. The Group’s principal securitisation and covered bond programmes, together with the balances of the advances subject to these arrangements and the carrying value of the notes in issue at 31 December, are listed below. The notes in issue are reported in note 29. 2018 2017 Loans and Notes Loans and Notes Securitisation programmes UK residential mortgages 25,018 22,485 21,158 14,105 Commercial loans 5,746 6,577 6,616 7,001 Credit card receivables 8,060 5,263 7,701 4,090 Motor vehicle finance 2,850 2,855 – – 41,674 37,180 35,475 25,196 Less held by the Group (31,701 ) (21,536 ) Total securitisation programmes (notes 28 and 29) 1 5,479 3,660 Covered bond programmes Residential mortgage-backed 34,963 27,694 30,361 25,632 Social housing loan-backed 1,839 1,200 1,628 1,200 36,802 28,894 31,989 26,832 Less held by the Group (700 ) (700 ) Total covered bond programmes (note 29) 28,194 26,132 Total securitisation and covered bond programmes 33,673 29,792 1 Includes £53 million (2017: £nil) of securitisation notes held at fair value through profit or loss. Cash deposits of £4,102 million (2017: £3,507 million) which support the debt securities issued by the structured entities, the term advances related to covered bonds and other legal obligations are held by the Group. Additionally, the Group had certain contractual arrangements to provide liquidity facilities to some of these structured entities. At 31 December 2018 these obligations had not been triggered; the maximum exposure under these facilities was £88 million (2017: £95 million). The Group has a number of covered bond programmes, for which Limited Liability Partnerships have been established to ring-fence asset pools and guarantee the covered bonds issued by the Group. At the reporting date the Group had over-collateralised these programmes as set out in the table above to meet the terms of the programmes, to secure the rating of the covered bonds and to provide operational flexibility. From time-to-time, the obligations of the Group to provide collateral may increase due to the formal requirements of the programmes. The Group may also voluntarily contribute collateral to support the ratings of the covered bonds. The Group recognises the full liabilities associated with its securitisation and covered bond programmes within debt securities in issue, although the obligations of the Group are limited to the cash flows generated from the underlying assets. The Group could be required to provide additional support to a number of the securitisation programmes to support the credit ratings of the debt securities issued, in the form of increased cash reserves and the holding of subordinated notes. Further, certain programmes contain contractual obligations that require the Group to repurchase assets should they become credit impaired. The Group has not voluntarily offered to repurchase assets from any of its public securitisation programmes during 2018 (2017: none). |
LIABILITIES ARISING FROM INSURA
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS | 12 Months Ended |
Dec. 31, 2018 | |
Participating investment contracts [Member] | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS [Line Items] | |
Disclosure of amounts arising from insurance contracts [text block] | NOTE 31: LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS Insurance contract and participating investment contract liabilities are comprised as follows: 2018 2017 Gross Reinsurance 1 Net Gross 1 Reinsurance 2 Net Life insurance (see (1) below): Insurance contracts 84,366 (716 ) 83,650 86,949 (563 ) 86,386 Participating investment contracts 13,912 – 13,912 15,881 – 15,881 98,278 (716 ) 97,562 102,830 (563 ) 102,267 Non-life insurance contracts (see (2) below): Unearned premiums 342 (13 ) 329 358 (13 ) 345 Claims outstanding 254 – 254 225 – 225 596 (13 ) 583 583 (13 ) 570 Total 98,874 (729 ) 98,145 103,413 (576 ) 102,837 1 During the year the Group has reviewed the classification of pre-2007 unitised pension savings products and as a result these products have been reclassified from insurance contracts to participating investment contracts; comparatives have been restated accordingly. 2 Reinsurance balances are reported within other assets (note 27). (1) Life insurance The movement in life insurance contract and participating investment contract liabilities over the year can be analysed as follows: Insurance contracts £m Participating investment contracts £m Gross £m Reinsurance £m Net £m At 1 January 2017 77,881 15,896 93,777 (671 ) 93,106 New business 4,154 43 4,197 (21 ) 4,176 Changes in existing business 4,928 (58 ) 4,870 129 4,999 Change in liabilities charged to the income statement (note 10) 9,082 (15 ) 9,067 108 9,175 Exchange and other adjustments (14 ) – (14 ) – (14 ) At 31 December 2017 86,949 15,881 102,830 (563 ) 102,267 New business 5,476 31 5,507 (42 ) 5,465 Changes in existing business (8,072 ) (2,000 ) (10,072 ) (111 ) (10,183 ) Change in liabilities charged to the income statement (note 10) (2,596 ) (1,969 ) (4,565 ) (153 ) (4,718 ) Exchange and other adjustments 13 – 13 – 13 At 31 December 2018 84,366 13,912 98,278 (716 ) 97,562 Liabilities for insurance contracts and participating investment contracts can be split into with-profit fund liabilities, accounted for using the PRA’s realistic capital regime (realistic liabilities) and non-profit fund liabilities, accounted for using a prospective actuarial discounted cash flow methodology, as follows: 2018 2017 With-profit Non-profit Total With-profit Non-profit Total Insurance contracts 7,851 76,515 84,366 8,946 78,003 86,949 Participating investment contracts 7,438 6,474 13,912 8,481 7,400 15,881 Total 15,289 82,989 98,278 17,427 85,403 102,830 WITH-PROFIT FUND REALISTIC LIABILITIES (I) BUSINESS DESCRIPTION Scottish Widows Limited has the only with-profit funds within the Group. The primary purpose of the conventional and unitised business written in the with-profit funds is to provide a smoothed investment vehicle to policyholders, protecting them against short-term market fluctuations. Payouts may be subject to a guaranteed minimum payout if certain policy conditions are met. With-profit policyholders are entitled to at least 90 per cent of the distributed profits, with the shareholders receiving the balance. The policyholders are also usually insured against death and the policy may carry a guaranteed annuity option at retirement. (II) METHOD OF CALCULATION OF LIABILITIES With-profit liabilities are stated at their realistic value, the main components of which are: – With-profit benefit reserve, the total asset shares for with-profit policies; – Cost of options and guarantees (including guaranteed annuity options); – Deductions levied against asset shares; – Planned enhancements to with-profits benefits reserve; and – Impact of the smoothing policy. (III) ASSUMPTIONS Key assumptions used in the calculation of with-profit liabilities, and the processes for determining these, are: Investment returns and discount rates With-profit fund liabilities are valued on a market-consistent basis, achieved by the use of a valuation model which values liabilities on a basis calibrated to tradable market option contracts and other observable market data. The with-profit fund financial options and guarantees are valued using a stochastic simulation model where all assets are assumed to earn, on average, the risk-free yield and all cash flows are discounted using the risk-free yield. The risk-free yield is defined as the spot yield derived from the relevant swap curve, adjusted for credit risk. Further information on significant options and guarantees is given below. Guaranteed annuity option take-up rates Certain pension contracts contain guaranteed annuity options that allow the policyholder to take an annuity benefit on retirement at annuity rates that were guaranteed at the outset of the contract. For contracts that contain such options, key assumptions in determining the cost of options are economic conditions in which the option has value, mortality rates and take up rates of other options. The financial impact is dependent on the value of corresponding investments, interest rates and longevity at the time of the claim. Investment volatility The calibration of the stochastic simulation model uses implied volatilities of derivatives where possible, or historical volatility where it is not possible to observe meaningful prices. Mortality The mortality assumptions, including allowances for improvements in longevity for annuitants, are set with regard to the Group’s actual experience where this is significant, and relevant industry data otherwise. Lapse rates (persistency) Lapse rates refer to the rate of policy termination or the rate at which policyholders stop paying regular premiums due under the contract. Historical persistency experience is analysed using statistical techniques. As experience can vary considerably between different product types and for contracts that have been in force for different periods, the data is broken down into broadly homogenous groups for the purposes of this analysis. The most recent experience is considered along with the results of previous analyses and management’s views on future experience, taking into consideration potential changes in future experience that may result from guarantees and options becoming more valuable under adverse market conditions, in order to determine a ‘best estimate’ view of what persistency will be. In determining this best estimate view a number of factors are considered, including the credibility of the results (which will be affected by the volume of data available), any exceptional events that have occurred during the period under consideration, any known or expected trends in underlying data and relevant published market data. (IV) OPTIONS AND GUARANTEES WITHIN THE WITH-PROFIT FUNDS The most significant options and guarantees provided from within the With-Profit Funds are in respect of guaranteed minimum cash benefits on death, maturity, retirement or certain policy anniversaries, and guaranteed annuity options on retirement for certain pension policies. For those policies written in Scottish Widows pre-demutualisation containing potentially valuable options and guarantees, under the terms of the Scheme a separate memorandum account was set up, within the With-Profit Fund originally held in Scottish Widows plc and subsequently transferred into Scottish Widows Limited, called the Additional Account which is available, inter alia, to meet any additional costs of providing guaranteed benefits in respect of those policies. The Additional Account had a value at 31 December 2018 of £2.5 billion (2017: £2.8 billion). The eventual cost of providing benefits on policies written both pre and post demutualisation is dependent upon a large number of variables, including future interest rates and equity values, demographic factors, such as mortality, and the proportion of policyholders who seek to exercise their options. The ultimate cost will therefore not be known for many years. As noted above, the liabilities of the With-Profit Funds are valued using a market-consistent stochastic simulation model which places a value on the options and guarantees which captures both their intrinsic value and their time value. The most significant economic assumptions included in the model are risk-free yield and investment volatility. NON-PROFIT FUND LIABILITIES (I) BUSINESS DESCRIPTION The Group principally writes the following types of life insurance contracts within its non-profit funds. Shareholder profits on these types of business arise from management fees and other policy charges. Unit-linked business This includes unit-linked pensions and unit-linked bonds, the primary purpose of which is to provide an investment vehicle where the policyholder is also insured against death. Life insurance The policyholder is insured against death or permanent disability, usually for predetermined amounts. Such business includes whole of life and term assurance and long-term creditor policies. Annuities The policyholder is entitled to payments for the duration of their life and is therefore insured against surviving longer than expected. (II) METHOD OF CALCULATION OF LIABILITIES The non-profit fund liabilities are determined on the basis of recognised actuarial methods and involve estimating future policy cash flows over the duration of the in-force book of policies, and discounting the cash flows back to the valuation date allowing for probabilities of occurrence. (III) ASSUMPTIONS Generally, assumptions used to value non-profit fund liabilities are prudent in nature and therefore contain a margin for adverse deviation. This margin for adverse deviation is based on management’s judgement and reflects management’s views on the inherent level of uncertainty. The key assumptions used in the measurement of non-profit fund liabilities are: Interest rates The rates of interest used are determined by reference to a number of factors including the redemption yields on fixed interest assets at the valuation date. Margins for risk are allowed for in the assumed interest rates. These are derived from the limits in the guidelines set by local regulatory bodies, including reductions made to the available yields to allow for default risk based upon the credit rating of the securities allocated to the insurance liability. Mortality and morbidity The mortality and morbidity assumptions, including allowances for improvements in longevity for annuitants, are set with regard to the Group’s actual experience where this provides a reliable basis, and relevant industry data otherwise, and include a margin for adverse deviation. Lapse rates (persistency) Lapse rates are allowed for on some non-profit fund contracts. The process for setting these rates is as described for with-profit liabilities, however a prudent scenario is assumed by the inclusion of a margin for adverse deviation within the non-profit fund liabilities. Maintenance expenses Allowance is made for future policy costs explicitly. Expenses are determined by reference to an internal analysis of current and expected future costs plus a margin for adverse deviation. Explicit allowance is made for future expense inflation. Key changes in assumptions A detailed review of the Group’s assumptions in 2018 resulted in the following key impacts on profit before tax: – Change in persistency assumptions (£135 million decrease). – Change in the assumption in respect of current and future mortality and morbidity rates (£173 million increase). – Change in expenses assumptions (£43 million decrease). These amounts include the impacts of movements in liabilities and value of the in-force business in respect of insurance contracts and participating investment contracts. (IV) OPTIONS AND GUARANTEES OUTSIDE THE WITH-PROFIT FUNDS A number of typical guarantees are provided outside the With-Profit Funds such as guaranteed payments on death (e.g. term assurance) or guaranteed income for life (e.g. annuities). In addition, certain personal pension policyholders in Scottish Widows, for whom reinstatement to their occupational pension scheme was not an option, have been given a guarantee that their pension and other benefits will correspond in value to the benefits of the relevant occupational pension scheme. The key assumptions affecting the ultimate value of the guarantee are future salary growth, gilt yields at retirement, annuitant mortality at retirement, marital status at retirement and future investment returns. There is currently a provision, calculated on a deterministic basis, of £39 million (2017: £35 million) in respect of those guarantees. (2) Non-life insurance For non-life insurance contracts, the methodology and assumptions used in relation to determining the bases of the earned premium and claims provisioning levels are derived for each individual underwritten product. Assumptions are intended to be neutral estimates of the most likely or expected outcome. There has been no significant change in the assumptions and methodologies used for setting reserves. The movements in non-life insurance contract liabilities and reinsurance assets over the year have been as follows: 2018 £m 2017 £m Provisions for unearned premiums Gross provision at 1 January 358 404 Increase in the year 681 724 Release in the year (697 ) (770 ) Change in provision for unearned premiums charged to income statement (16 ) (46 ) Gross provision at 31 December 342 358 Reinsurers’ share (13 ) (13 ) Net provision at 31 December 329 345 These provisions represent the liability for short-term insurance contracts for which the Group’s obligations are not expired at the year end. 2018 £m 2017 £m Claims outstanding Gross claims outstanding at 1 January 225 209 Cash paid for claims settled in the year (306 ) (321 ) Increase/(decrease) in liabilities charged to the income statement 1 335 337 29 16 Gross claims outstanding at 31 December 254 225 Reinsurers’ share – – Net claims outstanding at 31 December 254 225 Notified claims 170 174 Incurred but not reported 84 51 Net claims outstanding at 31 December 254 225 1 Of which an increase of £367 million (2017: £350 million) was in respect of current year claims and a decrease of £32 million (2017: a decrease of £13 million) was in respect of prior year claims. |
LIFE INSURANCE SENSITIVITY ANAL
LIFE INSURANCE SENSITIVITY ANALYSIS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of information about defined benefit plans [abstract] | |
Disclosure of sensitivity analysis for actuarial assumptions [text block] | NOTE 32: LIFE INSURANCE SENSITIVITY ANALYSIS The following table demonstrates the effect of reasonably possible changes in key assumptions on profit before tax and equity disclosed in these financial statements assuming that the other assumptions remain unchanged. In practice this is unlikely to occur, and changes in some assumptions may be correlated. These amounts include movements in assets, liabilities and the value of the in-force business in respect of insurance contracts and participating investment contracts. The impact is shown in one direction but can be assumed to be reasonably symmetrical. 2018 2017 Change in Increase (reduction in profit before tax £m ) Increase (reduction in equity £m ) Increase (reduction in profit before tax £m ) Increase (reduction in equity £m ) Non-annuitant mortality and morbidity 1 5% reduction 22 18 23 19 Annuitant mortality 2 5% reduction (234 ) (194 ) (221 ) (184 ) Lapse rates 3 10% reduction 89 74 75 62 Future maintenance and investment expenses 4 10% reduction 262 217 289 240 Risk-free rate 5 0.25% reduction 76 63 (40 ) (33 ) Guaranteed annuity option take up 6 5% addition (3 ) (2 ) (6 ) (5 ) Equity investment volatility 7 1% addition (5 ) (4 ) (7 ) (6 ) Widening of credit default spreads on corporate bonds 8 0.25% addition (364 ) (303 ) (235 ) (195 ) Increase in illiquidity premia 9 0.10% addition 153 127 145 120 Assumptions have been flexed on the basis used to calculate the value of in-force business and the realistic and statutory reserving bases. 1 This sensitivity shows the impact of reducing mortality and morbidity rates on non-annuity business to 95 per cent of the expected rate. 2 This sensitivity shows the impact on the annuity and deferred annuity business of reducing mortality rates to 95 per cent of the expected rate. 3 This sensitivity shows the impact of reducing lapse and surrender rates to 90 per cent of the expected rate. 4 This sensitivity shows the impact of reducing maintenance expenses and investment expenses to 90 per cent of the expected rate. 5 This sensitivity shows the impact on the value of in-force business, financial options and guarantee costs, statutory reserves and asset values of reducing the risk-free rate by 25 basis points. 6 This sensitivity shows the impact of a flat 5 per cent addition to the expected rate. 7 This sensitivity shows the impact of a flat 1 per cent addition to the expected rate. 8 This sensitivity shows the impact of a 25 basis point increase in credit default spreads on corporate bonds and the corresponding reduction in market values. Swap curves, the risk-free rate and illiquidity premia are all assumed to be unchanged. 9 This sensitivity shows the impact of a 10 basis point increase in the allowance for illiquidity premia. It assumes the overall spreads on assets are unchanged and hence market values are unchanged. Swap curves and the non-annuity risk-free rate are both assumed to be unchanged. The increased illiquidity premium increases the annuity risk-free rate. |
LIABILITIES ARISING FROM NON-PA
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS | 12 Months Ended |
Dec. 31, 2018 | |
Non-participating investment contracts [Member] | |
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS [Line Items] | |
Disclosure of investment contracts liabilities [text block] | NOTE 33: LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS The movement in liabilities arising from non-participating investment contracts may be analysed as follows: 2018 £m 2017 £m At 1 January 15,447 20,112 New business 668 608 Changes in existing business (2,262 ) (5,273 ) At 31 December 13,853 15,447 The balances above are shown gross of reinsurance. As at 31 December 2018, related reinsurance balances were £20 million (2017: £26 million); reinsurance balances are reported within other assets (note 27). Liabilities arising from non-participating investment contracts are categorised as level 2. See note 49 for details of levels in the fair value hierarchy. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other liabilities [text block] [Abstract] | |
Disclosure of other liabilities [text block] | NOTE 34: OTHER LIABILITIES 2018 £m 2017 £m Settlement balances 485 501 Unitholders’ interest in Open Ended Investment Companies 12,933 14,480 Unallocated surplus within insurance businesses 382 390 Other creditors and accruals 5,833 5,359 Total other liabilities 19,633 20,730 |
RETIREMENT BENEFIT OBLIGATIONS
RETIREMENT BENEFIT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of employee benefits [text block] [Abstract] | |
Disclosure of employee benefits [text block] | NOTE 35: RETIREMENT BENEFIT OBLIGATIONS 2018 £m 2017 £m 2016 £m Charge to the income statement Defined benefit pension schemes 401 362 279 Other post-retirement benefit schemes 4 7 8 Total defined benefit schemes 405 369 287 Defined contribution pension schemes 300 256 268 Total charge to the income statement (note 11) 705 625 555 2018 £m 2017 £m Amounts recognised in the balance sheet Retirement benefit assets 1,267 723 Retirement benefit obligations (245 ) (358 ) Total amounts recognised in the balance sheet 1,022 365 The total amount recognised in the balance sheet relates to: 2018 £m 2017 £m Defined benefit pension schemes 1,146 509 Other post-retirement benefit schemes (124 ) (144 ) Total amounts recognised in the balance sheet 1,022 365 Pension schemes DEFINED BENEFIT SCHEMES (I) CHARACTERISTICS OF AND RISKS ASSOCIATED WITH THE GROUP’S SCHEMES The Group has established a number of defined benefit pension schemes in the UK and overseas. All significant schemes are based in the UK, with the three most significant being the defined benefit section of the Lloyds Bank Pension Schemes No. 1, the Lloyds Bank Pension Scheme No. 2 and the HBOS Final Salary Pension Scheme. At 31 December 2018, these schemes represented 94 per cent of the Group’s total gross defined benefit pension assets (2017: 95 per cent). These schemes provide retirement benefits calculated as a percentage of final pensionable salary depending upon the length of service; the minimum retirement age under the rules of the schemes at 31 December 2018 is generally 55 although certain categories of member are deemed to have a contractual right to retire at 50. The Group operates a number of funded and unfunded pension arrangements, the majority, including the three most significant schemes, are funded schemes in the UK. All these schemes are operated as separate legal entities under trust law and are in compliance with the Pensions Act 2004. All of the Group’s funded UK defined benefit pension schemes are managed by a Trustee Board (the Trustee) whose role is to ensure that their Scheme is administered in accordance with the Scheme rules and relevant legislation, and to safeguard the assets in the best interests of all members and beneficiaries. The Trustee is solely responsible for setting investment policy and for agreeing funding requirements with the employer through the funding valuation process. The Board of Trustees must be composed of representatives of the Company and plan participants in accordance with the Scheme’s regulations. A valuation to determine the funding status of each scheme is carried out at least every three years, whereby scheme assets are measured at market value and liabilities (technical provisions) are measured using prudent assumptions. If a deficit is identified a recovery plan is agreed between the Group and the scheme Trustee and sent to the Pensions Regulator for review. The Group has not provided for these deficit contributions as the future economic benefits arising from these contributions are expected to be available to the Group. The Group’s overseas defined benefit pension schemes are subject to local regulatory arrangements. The most recent triennial funding valuation of the Group’s three main schemes, based on the position as at 31 December 2016, was completed during 2018. The valuation showed an aggregate funding deficit of £7.3 billion (a funding level of 85.6 per cent) compared to a £5.2 billion deficit (a funding level of 85.9 per cent) for the previous valuation as at 30 June 2014. In the light of this funding deficit, and in contemplation of the changes that the Group has made as a result of its Structural Reform Programme, the Group agreed a recovery plan with the trustees. Under the plan, deficit contributions of £412 million were paid during 2018, and these will rise to £618 million in 2019, £798 million in 2020, £1,287 million in 2021 and £1,305 million per annum from 2022 to 2024. Contributions in the later years will be subject to review and renegotiation at subsequent funding valuations. The next funding valuation is due to be completed by March 2021 with an effective date of 31 December 2019. The deficit contributions are in addition to the regular contributions to meet of benefits accruing over the year. The Group currently expects to pay contributions of approximately £1,050 million to its defined benefit schemes in 2019. During 2009, the Group made one-off contributions to the Lloyds Bank Pension Scheme No 1 and Lloyds Bank Pension Scheme No 2 in the form of interests in limited liability partnerships for each of the two schemes which hold assets to provide security for the Group’s obligations to the two schemes. At 31 December 2018, the limited liability partnerships held assets of approximately £6.7 billion. The limited liability partnerships are consolidated fully in the Group’s balance sheet. The Group has also established three private limited companies which hold assets to provide security for the Group’s obligations to the HBOS Final Salary Pension Scheme, a section of the Lloyds Bank Pension Scheme No 1 and the Lloyds Bank Offshore Pension Scheme. At 31 December 2018 these held assets of approximately £4.6 billion in aggregate. The private limited companies are consolidated fully in the Group’s balance sheet. The terms of these arrangements require the Group to maintain assets in these vehicles to agreed minimum values in order to secure obligations owed to the relevant Group pension schemes. The Group has satisfied this requirement during 2018. The last funding valuations of other Group schemes were carried out on a number of different dates. In order to report the position under IAS 19 as at 31 December 2018 the most recent valuation results for all schemes have been updated by qualified independent actuaries. The main differences between the funding and IAS 19 valuations are different and more prudent approach to setting the discount rate and more conservative longevity assumptions used in the funding valuations. In July 2018 a decision was sought from the High Court in respect of the requirement to equalise the Guaranteed Minimum Pension (GMP) benefits accrued between 1990 and 1997 from contracting out of the State Earnings Related Pension Scheme. In its judgment handed down on 26 October 2018 the High Court confirmed the requirement to treat men and women equally with respect to these benefits and a range of methods that the Trustee is entitled to adopt to achieve equalisation. The Group continues to work with the Trustee on the detail of implementing this judgment and has recognised a past service cost of £108 million consistent with the principles outlined within the judgment. This is based on a number of assumptions and the actual impact may be different. (II) AMOUNTS IN THE FINANCIAL STATEMENTS 2018 £m 2017 £m Amount included in the balance sheet Present value of funded obligations (41,092 ) (44,384 ) Fair value of scheme assets 42,238 44,893 Net amount recognised in the balance sheet 1,146 509 2018 £m 2017 £m Net amount recognised in the balance sheet At 1 January 509 (244 ) Net defined benefit pension charge (401 ) (362 ) Actuarial gains (losses) on defined benefit obligation 1,707 (731 ) Return on plan assets (1,558 ) 1,267 Employer contributions 863 580 Exchange and other adjustments 26 (1 ) At 31 December 1,146 509 2018 £m 2017 £m Movements in the defined benefit obligation At 1 January (44,384 ) (45,822 ) Current service cost (261 ) (295 ) Interest expense (1,130 ) (1,241 ) Remeasurements: Actuarial losses – experience (439 ) (347 ) Actuarial (losses) gains – demographic assumptions (201 ) 1,084 Actuarial gains (losses) – financial assumptions 2,347 (1,468 ) Benefits paid 3,079 3,714 Past service cost (108 ) (14 ) Curtailments (12 ) (10 ) Settlements 17 15 Exchange and other adjustments – – At 31 December (41,092 ) (44,384 ) 2018 £m 2017 £m Analysis of the defined benefit obligation: Active members (6,448 ) (7,947 ) Deferred members (14,208 ) (15,823 ) Pensioners (18,885 ) (19,014 ) Dependants (1,551 ) (1,600 ) (41,092 ) (44,384 ) 2018 £m 2017 £m Changes in the fair value of scheme assets At 1 January 44,893 45,578 Return on plan assets excluding amounts included in interest income (1,558 ) 1,267 Interest income 1,152 1,242 Employer contributions 863 580 Benefits paid (3,079 ) (3,714 ) Settlements (18 ) (18 ) Administrative costs paid (41 ) (41 ) Exchange and other adjustments 26 (1 ) At 31 December 42,238 44,893 The expense recognised in the income statement for the year ended 31 December comprises: 2018 £m 2017 £m 2016 £m Current service cost 261 295 257 Net interest amount (22 ) (1 ) (40 ) Past service credits and curtailments 12 10 – Settlements 1 3 6 Past service cost – plan amendments 108 14 20 Plan administration costs incurred during the year 41 41 36 Total defined benefit pension expense 401 362 279 (III) COMPOSITION OF SCHEME ASSETS 2018 2017 Quoted £m Unquoted £m Total £m Quoted £m Unquoted £m Total £m Equity instruments 637 222 859 846 5 851 Debt instruments 1 Fixed interest government bonds 7,449 – 7,449 5,344 – 5,344 Index-linked government bonds 16,477 – 16,477 17,439 – 17,439 Corporate and other debt securities 8,813 – 8,813 6,903 – 6,903 Asset-backed securities 138 – 138 121 – 121 32,877 – 32,877 29,807 – 29,807 Property – 556 556 – 544 544 Pooled investment vehicles 4,578 10,494 15,072 3,937 13,443 17,380 Money market instruments, cash, derivatives and other assets and liabilities (283 ) (6,843 ) (7,126 ) 1,501 (5,190 ) (3,689 ) At 31 December 37,809 4,429 42,238 36,091 8,802 44,893 1 Of the total debt instruments, £29,033 million (31 December 2017: £27,732 million) were investment grade (credit ratings equal to or better than ‘BBB’). The assets of all the funded plans are held independently of the Group’s assets in separate trustee administered funds. The pension schemes’ pooled investment vehicles comprise: 2018 £m 2017 £m Equity funds 2,329 2,669 Hedge and mutual funds 2,487 2,377 Liquidity funds 2,329 2,877 Bond and debt funds 313 1,830 Other 7,614 7,627 At 31 December 15,072 17,380 (IV) ASSUMPTIONS The principal actuarial and financial assumptions used in valuations of the defined benefit pension schemes were as follows: 2018 2017 Discount rate 2.90 2.59 Rate of inflation: Retail Prices Index 3.20 3.20 Consumer Price Index 2.15 2.15 Rate of salary increases 0.00 0.00 Weighted-average rate of increase for pensions in payment 2.73 2.73 2018 Years 2017 Years Life expectancy for member aged 60, on the valuation date: Men 27.8 27.9 Women 29.4 29.5 Life expectancy for member aged 60, 15 years after the valuation date: Men 28.8 28.9 Women 30.6 30.7 The mortality assumptions used in the scheme valuations are based on standard tables published by the Institute and Faculty of Actuaries which were adjusted in line with the actual experience of the relevant schemes. The table shows that a member retiring at age 60 at 31 December 2018 is assumed to live for, on average, 27.8 years for a male and 29.4 years for a female. In practice there will be much variation between individual members but these assumptions are expected to be appropriate across all members. It is assumed that younger members will live longer in retirement than those retiring now. This reflects the expectation that mortality rates will continue to fall over time as medical science and standards of living improve. To illustrate the degree of improvement assumed the table also shows the life expectancy for members aged 45 now, when they retire in 15 years’ time at age 60. (V) AMOUNT TIMING AND UNCERTAINTY OF FUTURE CASH FLOWS Risk exposure of the defined benefit schemes Whilst the Group is not exposed to any unusual, entity specific or scheme specific risks in its defined benefit pension schemes, it is exposed to a number of significant risks, detailed below: Inflation rate risk: Interest rate risk: Longevity risk: Investment risk: The ultimate cost of the defined benefit obligations to the Group will depend upon actual future events rather than the assumptions made. The assumptions made are unlikely to be borne out in practice and as such the cost may be higher or lower than expected. Sensitivity analysis The effect of reasonably possible changes in key assumptions on the value of scheme liabilities and the resulting pension charge in the Group’s income statement and on the net defined benefit pension scheme liability, for the Group’s three most significant schemes, is set out below. The sensitivities provided assume that all other assumptions and the value of the schemes’ assets remain unchanged, and are not intended to represent changes that are at the extremes of possibility. The calculations are approximate in nature and full detailed calculations could lead to a different result. It is unlikely that isolated changes to individual assumptions will be experienced in practice. Due to the correlation of assumptions, aggregating the effects of these isolated changes may not be a reasonable estimate of the actual effect of simultaneous changes in multiple assumptions. Effect of reasonably possible alternative assumptions Increase (decrease) Increase (decrease) in the 2018 2017 2018 2017 Inflation (including pension increases): 1 Increase of 0.1 per cent 14 16 410 472 Decrease of 0.1 per cent (14 ) (15 ) (395 ) (453 ) Discount rate: 2 Increase of 0.1 per cent (27 ) (28 ) (670 ) (773 ) Decrease of 0.1 per cent 25 26 686 794 Expected life expectancy of members: Increase of one year 43 44 1,299 1,404 Decrease of one year (42 ) (41 ) (1,257 ) (1,357 ) 1 At 31 December 2018, the assumed rate of RPI inflation is 3.20 per cent and CPI inflation 2.15 per cent (2017: RPI 3.20 per cent and CPI 2.15 per cent). 2 At 31 December 2018, the assumed discount rate is 2.90 per cent (2017: 2.59 per cent). Sensitivity analysis method and assumptions The sensitivity analysis above reflects the impact on the Group’s three most significant schemes which account for over 90 per cent of the Group’s defined benefit obligations. Whilst differences in the underlying liability profiles for the remainder of the Group’s pension arrangements mean they may exhibit slightly different sensitivities to variations in these assumptions, the sensitivities provided above are indicative of the impact across the Group as a whole. The inflation assumption sensitivity applies to both the assumed rate of increase in the Consumer Prices Index (CPI) and the Retail Prices Index (RPI), and include the impact on the rate of increases to pensions, both before and after retirement. These pension increases are linked to inflation (either CPI or RPI) subject to certain minimum and maximum limits. The sensitivity analysis (including the inflation sensitivity) does not include the impact of any change in the rate of salary increases as pensionable salaries have been frozen since 2 April 2014. The life expectancy assumption has been applied by allowing for an increase/decrease in life expectation from age 60 of one year, based upon the approximate weighted average age for each scheme. Whilst this is an approximate approach and will not give the same result as a one year increase in life expectancy at every age, it provides an appropriate indication of the potential impact on the schemes from changes in life expectancy. There was no change in the methods and assumptions used in preparing the sensitivity analysis from the prior year. Asset-liability matching strategies The main schemes’ assets are invested in a diversified portfolio, consisting primarily of debt securities. The investment strategy is not static and will evolve to reflect the structure of liabilities within the schemes. Specific asset-liability matching strategies for each pension plan are independently determined by the responsible governance body for each scheme and in consultation with the employer. A significant goal of the asset-liability matching strategies adopted by Group schemes is to reduce volatility caused by changes in market expectations of interest rates and inflation. In the main schemes, this is achieved by investing scheme assets in bonds, primarily fixed interest gilts and index linked gilts, and by entering into interest rate and inflation swap arrangements. These investments are structured to take into account the profile of scheme liabilities, and actively managed to reflect both changing market conditions and changes to the liability profile. At 31 December 2018 the asset-liability matching strategy mitigated 105 per cent of the liability sensitivity to interest rate movements and 106 per cent of the liability sensitivity to inflation movements. In addition a small amount of interest rate sensitivity arises through holdings of corporate and other debt securities. Maturity profile of defined benefit obligation The following table provides information on the weighted average duration of the defined benefit pension obligations and the distribution and timing of benefit payments: 2018 2017 Duration of the defined benefit obligation 18 19 2018 £m 2017 Maturity analysis of benefits expected to be paid: Within 12 months 1,225 1,174 Between 1 and 2 years 1,299 1,235 Between 2 and 5 years 4,303 4,089 Between 5 and 10 years 8,305 8,082 Between 10 and 15 years 9,416 9,360 Between 15 and 25 years 18,417 19,044 Between 25 and 35 years 15,631 16,735 Between 35 and 45 years 9,924 11,156 In more than 45 years 4,270 5,219 Maturity analysis method and assumptions The projected benefit payments are based on the assumptions underlying the assessment of the obligations, including allowance for expected future inflation. They are shown in their undiscounted form and therefore appear large relative to the discounted assessment of the defined benefit obligations recognised in the Group’s balance sheet. They are in respect of benefits that have been accrued prior to the respective year-end date only and make no allowance for any benefits that may have been accrued subsequently. DEFINED CONTRIBUTION SCHEMES The Group operates a number of defined contribution pension schemes in the UK and overseas, principally Your Tomorrow and the defined contribution sections of the Lloyds Bank Pension Scheme No. 1. During the year ended 31 December 2018 the charge to the income statement in respect of defined contribution schemes was £300 million (2017: £256 million; 2016: £268 million), representing the contributions payable by the employer in accordance with each scheme’s rules. Other post-retirement benefit schemes The Group operates a number of schemes which provide post-retirement healthcare benefits and concessionary mortgages to certain employees, retired employees and their dependants. The principal scheme relates to former Lloyds Bank staff and under this scheme the Group has undertaken to meet the cost of post-retirement healthcare for all eligible former employees (and their dependants) who retired prior to 1 January 1996. The Group has entered into an insurance contract to provide these benefits and a provision has been made for the estimated cost of future insurance premiums payable. For the principal post-retirement healthcare scheme, the latest actuarial valuation of the liability was carried out at 31 December 2018 by qualified independent actuaries. The principal assumptions used were as set out above, except that the rate of increase in healthcare premiums has been assumed at 6.81 per cent (2017: 6.81 per cent). Movements in the other post-retirement benefits obligation: 2018 2017 At 1 January (144 ) (236 ) Actuarial gains 18 92 Insurance premiums paid 5 7 Charge for the year (4 ) (7 ) Exchange and other adjustments 1 – At 31 December (124 ) (144 ) |
DEFERRED TAX
DEFERRED TAX | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of deferred taxes [text block] [Abstract] | |
Disclosure of deferred taxes [text block] | NOTE 36: DEFERRED TAX The Group’s deferred tax assets and liabilities are as follows: Statutory position Tax disclosure 2018 2017 2018 2017 Deferred tax assets 2,453 2,284 4,731 4,989 Deferred tax liabilities – – (2,278 ) (2,705 ) Asset at 31 December 2,453 2,284 2,453 2,284 The statutory position reflects the deferred tax assets and liabilities as disclosed in the consolidated balance sheet and takes into account the ability of the Group to net assets and liabilities where there is a legally enforceable right of offset. The tax disclosure of deferred tax assets and liabilities ties to the amounts outlined in the tables below which splits the deferred tax assets and liabilities by type, before such netting. As a result of legislation enacted in 2016, the UK corporation tax rate will reduce from 19 per cent to 17 per cent on 1 April 2020. The Group measures its deferred tax assets and liabilities at the value expected to be recoverable or payable in future periods, and re-measures them at each reporting date based on the most recent estimates of utilisation or settlement, including the impact of bank surcharge where appropriate. The deferred tax impact of this re-measurement in 2018 is a credit of £32 million in the income statement and a charge of £19 million in other comprehensive income. On 29 October 2018, the UK government announced its intention to restrict the use of capital tax losses to 50 per cent of any future gains arising. Had this restriction been substantively enacted at 31 December 2018, the effect would have been to reduce net deferred tax assets by £41 million. Movements in deferred tax liabilities and assets (before taking into consideration the offsetting of balances within the same taxing jurisdiction) can be summarised as follows: Deferred tax assets Tax losses Property, Pension Provisions Share-based Other Total At 1 January 2017 4,298 969 228 40 61 38 5,634 (Charge) credit to the income statement (264 ) (226 ) (287 ) (7 ) 7 (28 ) (805 ) (Charge) credit to other comprehensive income – – 149 25 – – 174 Other (charge) credit to equity – – – – (17 ) – (17 ) Impact of acquisitions and disposals – – – – – 3 3 At 31 December 2017 4,034 743 90 58 51 13 4,989 Adjustment on adoption of IFRS 9 and IFRS 15 (note 54) – – – 322 – 3 325 At 1 January 2018 4,034 743 90 380 51 16 5,314 (Charge) credit to the income statement (256 ) (100 ) 64 (45 ) (6 ) (5 ) (348 ) (Charge) credit to other comprehensive income – – (92 ) (138 ) – – (230 ) Other (charge) credit to equity – – – – (5 ) – (5 ) At 31 December 2018 3,778 643 62 197 40 11 4,731 Deferred tax liabilities Long-term assurance business £m Acquisition fair value £m Pension assets £m Derivatives £m Asset revaluations 1 £m Other temporary differences £m Total £m At 1 January 2017 (914 ) (798 ) (85 ) (643 ) (234 ) (254 ) (2,928 ) (Charge) credit to the income statement 115 76 199 (139 ) (40 ) 116 327 (Charge) credit to other comprehensive income – – (295 ) 283 67 – 55 Impact of acquisitions and disposals – (157 ) – – – (2 ) (159 ) At 31 December 2017 (799 ) (879 ) (181 ) (499 ) (207 ) (140 ) (2,705 ) (Charge) credit to the income statement 162 142 (67 ) (19 ) (33 ) 7 192 (Charge) credit to other comprehensive income – – (25 ) 113 141 – 229 Exchange and other adjustments – – – – – 6 6 At 31 December 2018 (637 ) (737 ) (273 ) (405 ) (99 ) (127 ) (2,278 ) 1 Financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets). Deferred tax not recognised No deferred tax has been recognised in respect of the future tax benefit of certain expenses of the life assurance business carried forward. The deferred tax asset not recognised in respect of these expenses is approximately £371 million (2017: £470 million), and these expenses can be carried forward indefinitely. The unrecognised deferred tax asset has reduced in 2018, as the Group’s utilisation estimate has improved over the year. Deferred tax assets of approximately £78 million (2017: £76 million) have not been recognised in respect of £438 million of UK tax losses and other temporary differences which can only be used to offset future capital gains. UK capital losses can be carried forward indefinitely. In addition, no deferred tax asset is recognised in respect of unrelieved foreign tax credits of £46 million (2017: £46 million), as there are no expected future taxable profits against which the credits can be utilised. These credits can be carried forward indefinitely. No deferred tax has been recognised in respect of foreign trade losses where it is not more likely than not that we will be able to utilise them in future periods. Of the asset not recognised, £36 million (2017: £35 million) relates to losses that will expire if not used within 20 years, and £53 million (2017: £56 million) relates to losses with no expiry date. As a result of parent company exemptions on dividends from subsidiaries and on capital gains on disposal there are no significant taxable temporary differences associated with investments in subsidiaries, branches, associates and joint arrangements. |
OTHER PROVISIONS
OTHER PROVISIONS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other provisions [text block] [Abstract] | |
Disclosure of other provisions [text block] | NOTE 37: OTHER PROVISIONS Provisions for Payment Other Vacant Other Total At 31 December 2017 30 2,778 1,292 56 1,390 5,546 Adjustment on adoption of IFRS 9 (note 54) 243 243 Balance at 1 January 2018 273 5,789 Exchange and other adjustments (7 ) 100 1 – 41 135 Provisions applied – (2,104 ) (1,032 ) (44 ) (619 ) (3,799 ) Charge for the year (73 ) 750 600 50 95 1,422 At 31 December 2018 193 1,524 861 62 907 3,547 Provisions for financial commitments and guarantees Provisions are held in cases where the Group is irrevocably committed to advance additional funds, but where there is doubt as to the customer’s ability to meet its repayment obligations. See also note 20. Payment protection insurance (excluding MBNA) The Group increased the provision for PPI costs by a further £750 million in the year ended 31 December 2018, bringing the total amount provided to £19,425 million. The charge in 2018 related to a number of factors including higher expected complaint volumes, which increased to 13,000 per week, and associated administration costs, an increase in average redress per complaint, additional operational costs to deal with potential complaint volatility and continued improvements in data interrogation and the Group’s ability to identify valid complaints. The remaining provision is consistent with an average of approximately 13,000 complaints per week to the industry deadline of the end of August 2019. At 31 December 2018, a provision of £1,329 million remained unutilised relating to complaints and associated administration costs. Total cash payments were £1,859 million during the year ended 31 December 2018. SENSITIVITIES The Group estimates that it has sold approximately 16 million PPI policies since 2000. These include policies that were not mis-sold and those that have been successfully claimed upon. Since the commencement of the PPI redress programme in 2011 the Group estimates that it has contacted, settled or provided for approximately 53 per cent of the policies sold since 2000. The total amount provided for PPI represents the Group’s best estimate of the likely future cost. However a number of risks and uncertainties remain including with respect to future complaint volumes. The cost could differ from the Group’s estimates and the assumptions underpinning them, and could result in a further provision being required. There is also uncertainty around the impact of the regulatory changes, Financial Conduct Authority media campaign and Claims Management Company and customer activity, and potential additional remediation arising from the continuous improvement of the Group’s operational practices. For every additional 1,000 reactive complaints per week above 13,000 on average from January 2019 through to the industry deadline of the end of August 2019, the Group would expect an additional charge of approximately £85 million. Payment protection insurance (MBNA) As announced in December 2016, the Group’s exposure is capped at £240 million, which is already provided for through an indemnity received from Bank of America. MBNA increased its PPI provision by £100 million in the year ended 31 December 2018 but the Group’s exposure continues to remain capped at £240 million under the arrangement with Bank of America, notwithstanding this increase by MBNA. Other provisions for legal actions and regulatory matters In the course of its business, the Group is engaged in discussions with the PRA, FCA and other UK and overseas regulators and other governmental authorities on a range of matters. The Group also receives complaints in connection with its past conduct and claims brought by or on behalf of current and former employees, customers, investors and other third parties and is subject to legal proceedings and other legal actions. Where significant, provisions are held against the costs expected to be incurred in relation to these matters and matters arising from related internal reviews. During the year ended 31 December 2018 the Group charged a further £600 million in respect of legal actions and other regulatory matters, and the unutilised balance at 31 December 2018 was £861 million (31 December 2017: £1,292 million). The most significant items are as follows. ARREARS HANDLING RELATED ACTIVITIES The Group has provided an additional £151 million in the year ended 31 December 2018 for the costs of identifying and rectifying certain arrears management fees and activities, taking the total provided to date to £793 million. The Group has put in place a number of actions to improve its handling of customers in these areas and has made good progress in reimbursing arrears fees to impacted customers. PACKAGED BANK ACCOUNTS The Group has provided a further £45 million in the year ended 31 December 2018 (£245 million was provided in the year ended 31 December 2017) in respect of complaints relating to alleged mis-selling of packaged bank accounts, raising the total amount provided to £795 million. A number of risks and uncertainties remain particularly with respect to future volumes. CUSTOMER CLAIMS IN RELATION TO INSURANCE BRANCH BUSINESS IN GERMANY The Group continues to receive claims in Germany from customers relating to policies issued by Clerical Medical Investment Group Limited (subsequently renamed Scottish Widows Limited), with smaller numbers received from customers in Austria and Italy. The industry-wide issue regarding notification of contractual ‘cooling off’ periods continued to lead to an increasing number of claims in 2016 and 2017 levelling out in 2018. Up to 31 December 2017 the Group had provided a total of £639 million, with no further amounts provided during the year ended 31 December 2018. The validity of the claims facing the Group depends upon the facts and circumstances in respect of each claim. As a result the ultimate financial effect, which could be significantly different from the current provision, will be known only once all relevant claims have been resolved. HBOS READING – CUSTOMER REVIEW The Group has now completed its compensation assessment for all 71 business customers within the customer review, with more than 96 per cent of these offers accepted. In total, more than £96 million has been offered of which £78 million has so far been accepted, in addition to £9 million for ex-gratia payments and £5 million for the re-imbursements of legal fees. The review follows the conclusion of a criminal trial in which a number of individuals, including two former HBOS employees, were convicted of conspiracy to corrupt, fraudulent trading and associated money laundering offences which occurred prior to the acquisition of HBOS by the Group in 2009. The Group has provided a further £15 million in the year ended 31 December 2018 for customer settlements, raising the total amount provided to £115 million and is now nearing the end of the process of paying compensation to the victims of the fraud including ex-gratia payments and re-imbursements of legal fees. Vacant leasehold property Vacant leasehold property provisions are made by reference to a prudent estimate of expected sub-let income, compared to the head rent, and the possibility of disposing of the Group’s interest in the lease, taking into account conditions in the property market. These provisions are reassessed on a biannual basis and will normally run off over the period of under-recovery of the leases concerned, currently averaging three years; where a property is disposed of earlier than anticipated, any remaining balance in the provision relating to that property is released. Other Following the sale of TSB Banking Group plc, the Group raised a provision of £665 million in relation to various ongoing commitments; £168 million of this provision remained unutilised at 31 December 2018. Provisions are made for staff and other costs related to Group restructuring initiatives at the point at which the Group becomes irrevocably committed to the expenditure. At 31 December 2018 provisions of £191 million (31 December 2017: £104 million) were held. The Group carries provisions of £122 million (2017: £136 million) for indemnities and other matters relating to legacy business disposals in prior year. |
SUBORDINATED LIABILITIES
SUBORDINATED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of subordinated liabilities [text block] [Abstract] | |
Disclosure of subordinated liabilities [text block] | NOTE 38: SUBORDINATED LIABILITIES The movement in subordinated liabilities during the year was as follows: Preference Preferred Undated Dated Total At 1 January 2017 864 4,134 599 14,234 19,831 Repurchases and redemptions during the year 1 – (237 ) – (771 ) (1,008 ) Foreign exchange movements (43 ) (221 ) (34 ) (487 ) (785 ) Other movements (all non-cash) (8 ) 14 – (122 ) (116 ) At 31 December 2017 813 3,690 565 12,854 17,922 Issued during the year 1 – – – 1,729 1,729 Repurchases and redemptions during the year 1 – (614 ) – (1,642 ) (2,256 ) Foreign exchange movements 18 131 20 377 546 Other movements (all non-cash) (28 ) (2 ) 3 (258 ) (285 ) At 31 December 2018 803 3,205 588 13,060 17,656 1 The repurchases and redemptions resulted in cash outflows of £2,256 million (2017: £1,008 million). Issued during 2018 Dated subordinated liabilities £m 1.75% Subordinated Fixed Rate Notes 2028 callable 2023 664 4.344% Subordinated Fixed Rate Notes callable 2048 1,065 1,729 Repurchases and redemptions during 2018 Preferred securities £m 6.461% Guaranteed Non-voting Non-cumulative Perpetual Preferred Securities 600 Undated Perpetual Preferred Securities 14 614 Dated subordinated liabilities £m 10.5% Subordinated Bonds callable 2018 150 6.75% Subordinated Fixed Rate Notes callable 2018 1,492 1,642 Repurchases and redemptions during 2017 Preferred securities £m 7.627% Fixed to Floating Rate Guaranteed Non-voting Non-cumulative 163 Preferred Securities 4.385% Step-up Perpetual Capital Securities callable 2017 (€750 million) 74 237 Dated subordinated liabilities £m Subordinated Callable Notes 2017 771 771 There were no repurchases of preference shares or undated subordinated liabilities during 2017 or 2018. These securities will, in the event of the winding-up of the issuer, be subordinated to the claims of depositors and all other creditors of the issuer, other than creditors whose claims rank equally with, or are junior to, the claims of the holders of the subordinated liabilities. The subordination of specific subordinated liabilities is determined in respect of the issuer and any guarantors of that liability. The claims of holders of preference shares and preferred securities are generally junior to those of the holders of undated subordinated liabilities, which in turn are junior to the claims of holders of the dated subordinated liabilities. The Group has not had any defaults of principal, interest or other breaches with respect to its subordinated liabilities during 2018 (2017: none). |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of issued capital [text block] [Abstract] | |
Disclosure of issued capital [text block] | NOTE 39: SHARE CAPITAL (1) Authorised share capital As permitted by the Companies Act 2006, the Company removed references to authorised share capital from its articles of association at the annual general meeting on 5 June 2009. This change took effect from 1 October 2009. (2) Issued and fully paid share capital 2018 2017 2016 2018 2017 2016 Ordinary shares of 10p (formerly 25p) each At 1 January 71,972,949,589 71,373,735,357 71,373,735,357 7,197 7,138 7,138 Issued under employee share schemes 768,551,098 518,293,181 – 77 51 – Share buy-back programme (note 41) (1,577,908,423 ) – – (158 ) – – Redesignation of limited voting ordinary shares (see below) – 80,921,051 – – 8 – At 31 December 71,163,592,264 71,972,949,589 71,373,735,357 7,116 7,197 7,138 Limited voting ordinary shares of 10p (formerly 25p) each At 1 January – 80,921,051 80,921,051 – 8 8 Redesignation to ordinary shares (see below) – (80,921,051 ) – – (8 ) – At 31 December – – 80,921,051 – – 8 Total issued share capital 7,116 7,197 7,146 SHARE ISSUANCES In 2018, 769 million shares (2017: 518 million shares) were issued in respect of employee share schemes; no shares were issued in 2016. (3) Share capital and control There are no restrictions on the transfer of shares in the Company other than as set out in the articles of association and: – certain restrictions which may from time to time be imposed by law and regulations (for example, insider trading laws); – where directors and certain employees of the Company require the approval of the Company to deal in the Company’s shares; and – pursuant to the rules of some of the Company’s employee share plans where certain restrictions may apply while the shares are subject to the plans. Where, under an employee share plan operated by the Company, participants are the beneficial owners of shares but not the registered owners, the voting rights are normally exercised by the registered owner at the direction of the participant. Outstanding awards and options would normally vest and become exercisable on a change of control, subject to the satisfaction of any performance conditions at that time. In addition, the Company is not aware of any agreements between shareholders that may result in restrictions on the transfer of securities and/or voting rights. Information regarding significant direct or indirect holdings of shares in the Company can be found on page 157. The directors have authority to allot and issue ordinary and preference shares and to make market purchases of ordinary and preference shares as granted at the annual general meeting on 24 May 2018. The authority to issue shares and the authority to make market purchases of shares will expire at the next annual general meeting. Shareholders will be asked, at the annual general meeting, to give similar authorities. Subject to any rights or restrictions attached to any shares, on a show of hands at a general meeting of the Company every holder of shares present in person or by proxy and entitled to vote has one vote and on a poll every member present and entitled to vote has one vote for every share held. Further details regarding voting at the annual general meeting can be found in the notes to the notice of the annual general meeting. ORDINARY SHARES The holders of ordinary shares, who held 100 per cent of the total ordinary share capital at 31 December 2018, are entitled to receive the Company’s report and accounts, attend, speak and vote at general meetings and appoint proxies to exercise voting rights. Holders of ordinary shares may also receive a dividend (subject to the provisions of the Company’s articles of association) and on a winding up may share in the assets of the Company. LIMITED VOTING ORDINARY SHARES At the annual general meeting on 11 May 2017, the Company’s shareholders approved the redesignation of the 80,921,051 limited voting ordinary shares held by the Lloyds Bank Foundations as ordinary shares of 10 pence each. The redesignation took effect on 1 July 2017 and the redesignated shares now rank equally with the existing issued ordinary shares of the Company. The Company has entered into deeds of covenant with the Foundations under the terms of which the Company makes annual donations. The deeds of covenant in effect as at 31 December 2018 provide that such annual donations will cease in certain circumstances, including the Company providing nine years’ notice. Such notice has been given to the Lloyds TSB Foundation for Scotland. PREFERENCE SHARES The Company has in issue various classes of preference shares which are all classified as liabilities under accounting standards and which are included in note 38. |
SHARE PREMIUM ACCOUNT
SHARE PREMIUM ACCOUNT | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure For Share Premium Account Explanatory [Abstract] | |
Disclosure for share premium account [text block] | NOTE 40: SHARE PREMIUM ACCOUNT 2018 2017 2016 At 1 January 17,634 17,622 17,412 Issued under employee share schemes 85 12 – Redemption of preference shares 1 – – 210 At 31 December 17,719 17,634 17,622 1 During the year ended 31 December 2016, the Company redeemed all of its outstanding 6.267% Non-cumulative Fixed to Floating Rate Callable US Dollar Preference Shares at their combined sterling equivalent par value of £210 million. These preference shares had been accounted for as subordinated liabilities. On redemption an amount of £210 million was transferred from the distributable merger reserve to the share premium account. |
OTHER RESERVES
OTHER RESERVES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of reserves within equity [text block] [Abstract] | |
Disclosure of reserves within equity [text block] | NOTE 41: OTHER RESERVES 2018 2017 2016 Other reserves comprise: Merger reserve 7,766 7,766 7,766 Capital redemption reserve 4,273 4,115 4,115 Revaluation reserve in respect of debt securities held at fair value through other comprehensive income 279 Revaluation reserve in respect of equity shares held at fair value through other comprehensive income 5 Revaluation reserve in respect of available-for-sale financial assets 685 759 Cash flow hedging reserve 1,051 1,405 2,136 Foreign currency translation reserve (164 ) (156 ) (124 ) At 31 December 13,210 13,815 14,652 The merger reserve primarily comprises the premium on shares issued in January 2009 as part of the recapitalisation of the Group and the acquisition of HBOS plc. The capital redemption reserve represents transfers from distributable reserve in accordance with companies’ legislation upon the redemption of ordinary and preference share capital. The revaluation reserves in respect of debt securities and equity shares held at fair value through other comprehensive income represent the cumulative after tax unrealised change in the fair value of financial assets so classified since initial recognition; or in the case of financial assets obtained on acquisitions of businesses, since the date of acquisition. The cash flow hedging reserve represents the cumulative after tax gains and losses on effective cash flow hedging instruments that will be reclassified to the income statement in the periods in which the hedged item affects profit or loss. The foreign currency translation reserve represents the cumulative after-tax gains and losses on the translation of foreign operations and exchange differences arising on financial instruments designated as hedges of the Group’s net investment in foreign operations. 2018 2017 2016 Merger reserve At 1 January 7,766 7,766 7,976 Redemption of preference shares (note 40) – – (210 ) At 31 December 7,766 7,766 7,766 2018 £m 2017 2016 Capital redemption reserve At 1 January 4,115 4,115 4,115 Shares cancelled under share buy-back programme (see below) 158 – – At 31 December 4,273 4,115 4,115 On 8 March 2018 the Group announced the launch of a share buy-back programme to repurchase up to £1 billion of its outstanding ordinary shares; the programme ended on 24 August 2018. The Group entered into an agreement with UBS AG, London Branch (UBS) to conduct the share buy-back programme on its behalf and to make trading decisions under the programme independently of the Group. UBS purchased the Group’s ordinary shares as principal and sold them to the Group in accordance with the terms of their engagement. The Group cancelled the shares that it purchased through the programme. The Group bought back and cancelled 1,578 million shares under the programme, for a total consideration, including expenses, of £1,005 million. Upon cancellation, £158 million being the nominal value of the shares repurchased was transferred to the capital redemption reserve. 2018 Revaluation reserve in respect of debt securities held at fair value through other comprehensive income At 31 December 2017 Adjustment on adoption of IFRS 9 (note 54) 472 At 1 January 2018 472 Change in fair value (37 ) Deferred tax 35 Current tax – (2 ) Income statement transfers: Disposals (note 9) (275 ) Deferred tax 84 Current tax – (191 ) At 31 December 2018 279 2018 £m Revaluation reserve in respect of equity shares held at fair value through other comprehensive income At 31 December 2017 Adjustment on adoption of IFRS 9 (note 54) (49 ) At 1 January 2018 (49 ) Change in fair value (97 ) Deferred tax 22 Current tax – (75 ) Realised gains and losses transferred to retained profits 151 Deferred tax (22 ) Current tax – 129 At 31 December 2018 5 Movements in other reserves were as follows: 2017 2016 Revaluation reserve in respect of available-for-sale financial assets At 1 January 759 (438 ) Adjustment on transfer from held-to-maturity portfolio – 1,544 Deferred tax – (417 ) – 1,127 Change in fair value of available-for-sale financial assets 303 356 Deferred tax (26 ) (25 ) Current tax (4 ) (3 ) 273 328 Income statement transfers: Disposals (note 9) (446 ) (575 ) Deferred tax 93 196 Current tax – (52 ) (353 ) (431 ) Impairment 6 173 Deferred tax – – 6 173 At 31 December 685 759 2018 £m 2017 2016 Cash flow hedging reserve At 1 January 1,405 2,136 727 Change in fair value of hedging derivatives 234 (363 ) 2,432 Deferred tax (69 ) 121 (610 ) 165 (242 ) 1,822 Income statement transfers (note 5) (701 ) (651 ) (557 ) Deferred tax 182 162 144 (519 ) (489 ) (413 ) At 31 December 1,051 1,405 2,136 2018 £m 2017 2016 Foreign currency translation reserve At 1 January (156 ) (124 ) (120 ) Currency translation differences arising in the year (8 ) (21 ) (110 ) Foreign currency gains on net investment hedges (tax: £nil) – (11 ) 106 At 31 December (164 ) (156 ) (124 ) |
RETAINED PROFITS
RETAINED PROFITS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Retained Profits [Abstract] | |
Disclosure of Retained Profits [Text Block] | NOTE 42: RETAINED PROFITS 2018 2017 2016 At 31 December 2017 4,905 Adjustment on adoption of IFRS 9 and IFRS 15 (note 54) (929 ) At 1 January 3,976 3,250 4,416 Profit for the year 4,302 3,807 2,063 Dividends paid 1 (2,240 ) (2,284 ) (2,014 ) Issue costs of other equity instruments (net of tax) (note 43) (5 ) – – Distributions on other equity instruments (net of tax) (327 ) (313 ) (321 ) Share buy-back programme (note 41) (1,005 ) – – Realised gains and losses on equity shares held at fair value through other comprehensive income (129 ) Post-retirement defined benefit scheme remeasurements 120 482 (1,028 ) Share of other comprehensive income of associates and joint ventures 8 – – Gains and losses attributable to own credit risk (net of tax) 2 389 (40 ) – Movement in treasury shares 40 (411 ) (175 ) Value of employee services: Share option schemes 53 82 141 Other employee award schemes 207 332 168 At 31 December 5,389 4,905 3,250 1 In 2017 and 2016, net of a credit in respect of unclaimed dividends written-back in accordance with the Company’s Articles of Association. 2 During 2017 the Group derecognised, on redemption, financial liabilities on which cumulative fair value movements relating to own credit of £3 million net of tax, had been recognised directly in retained profits (2018: £nil). Retained profits are stated after deducting £499 million (2017: £611 million; 2016: £495 million) representing 909 million (2017: £861 million; 2016: £730 million) treasury shares held. The payment of dividends by subsidiaries and the ability of members of the Group to lend money to other members of the Group may be subject to regulatory or legal restrictions, the availability of reserves and the financial and operating performance of the entity. Details of such restrictions and the methods adopted by the Group to manage the capital of its subsidiaries are provided under Capital Risk on page 80. |
OTHER EQUITY INSTRUMENTS
OTHER EQUITY INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Other Equity Instruments Explanatory [Abstract] | |
Disclosure of Other Equity Instruments [text block] | NOTE 43: OTHER EQUITY INSTRUMENTS 2018 £m 2017 2016 At 1 January 5,355 5,355 5,355 Issued in the year: US dollar notes ($1,500 million nominal) 1,136 – – At 31 December 6,491 5,355 5,355 During the year ended 31 December 2018 the Group issued £1,136 million (US$1,500 million) of Additional Tier 1 (AT1) securities; issue costs of £5 million, net of tax, have been charged to retained profits. The AT1 securities are Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities with no fixed maturity or redemption date. The principal terms of the AT1 securities are described below: – The securities rank behind the claims against Lloyds Banking Group plc of (a) unsubordinated creditors, (b) claims which are, or are expressed to be, subordinated to the claims of unsubordinated creditors of Lloyds Banking Group plc but not further or otherwise or (c) whose claims are, or are expressed to be, junior to the claims of other creditors of Lloyds Banking Group, whether subordinated or unsubordinated, other than those whose claims rank, or are expressed to rank, pari passu with, or junior to, the claims of the holders of the AT1 Securities in a winding-up occurring prior to the Conversion Trigger. – The securities bear a fixed rate of interest until the first call date. After the initial call date, in the event that they are not redeemed, the AT1 securities will bear interest at rates fixed periodically in advance for five year periods based on market rates. – Interest on the securities will be due and payable only at the sole discretion of Lloyds Banking Group plc, and Lloyds Banking Group plc may at any time elect to cancel any Interest Payment (or any part thereof) which would otherwise be payable on any Interest Payment Date. There are also certain restrictions on the payment of interest as specified in the terms. – The securities are undated and are repayable, at the option of Lloyds Banking Group plc, in whole at the first call date, or on any fifth anniversary after the first call date. In addition, the AT1 securities are repayable, at the option of Lloyds Banking Group plc, in whole for certain regulatory or tax reasons. Any repayments require the prior consent of the PRA. – The securities convert into ordinary shares of Lloyds Banking Group plc, at a pre-determined price, should the fully loaded Common Equity Tier 1 ratio of the Group fall below 7.0 per cent. |
DIVIDENDS ON ORDINARY SHARES
DIVIDENDS ON ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of dividends [text block] [Abstract] | |
Disclosure of dividends [text block] | NOTE 44: DIVIDENDS ON ORDINARY SHARES The directors have recommended a final dividend, which is subject to approval by the shareholders at the Annual General Meeting, of 2.14 pence per share (2017: 2.05 pence per share; 2016: 1.7 pence per share) representing a total dividend of £1,523 million (2017: £1,475 million; 2016: £1,212 million), which will be paid on 21 May 2019. At 31 December 2016 the directors also recommended a special dividend of 0.5 pence per share representing a total dividend of £356 million. The financial statements do not reflect recommended dividends. Dividends paid during the year were as follows: 2018 pence per share 2017 2016 2018 £m 2017 2016 Recommended by directors at previous year end: Final dividend 2.05 1.70 1.50 1,475 1,212 1,070 Special dividend – 0.50 0.50 – 356 357 Interim dividend paid in the year 1.07 1.00 0.85 765 720 607 3.12 3.20 2.85 2,240 2,288 2,034 The cash cost of the dividends paid in the year was £2,240 million (2017: £2,284 million; 2016: £2,014 million), in 2017 and 2016 this was net of a credit in respect of unclaimed dividends written-back in accordance with the Company’s Articles of Association. In addition, the Group intends to implement a share buyback of up to £1.75 billion (2017: £1 billion) which will commence in March 2019 and is expected to be completed by 31 December 2019. The trustees of the following holdings of Lloyds Banking Group plc shares in relation to employee share schemes retain the right to receive dividends but have chosen to waive their entitlement to the dividends on those shares as indicated: the Lloyds Banking Group Share Incentive Plan (holding at 31 December 2018: 5,538,164 shares, 31 December 2017: 12,414,401 shares, waived rights to all dividends), the HBOS Share Incentive Plan Trust (holding at 31 December 2018: 445,625 shares, 31 December 2017: 445,625 shares, waived rights to all dividends), the Lloyds Banking Group Employee Share Ownership Trust (holding at 31 December 2018: 5,679,119 shares, 31 December 2017: 13,346,132 shares, on which it waived rights to all dividends) and Lloyds Group Holdings (Jersey) Limited (holding at 31 December 2018: 42,846 shares, 31 December 2017: 42,846 shares, waived rights to all but a nominal amount of one penny in total). |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of share-based payment arrangements [text block] [Abstract] | |
Disclosure of share-based payment arrangements [text block] | NOTE 45: SHARE-BASED PAYMENTS Charge to the income statement The charge to the income statement is set out below: 2018 £m 2017 2016 Deferred bonus plan 325 313 266 Executive and SAYE plans: Options granted in the year 14 17 16 Options granted in prior years 71 81 138 85 98 154 Share plans: Shares granted in the year 16 17 15 Shares granted in prior years 17 9 7 33 26 22 Total charge to the income statement 443 437 442 During the year ended 31 December 2018 the Group operated the following share-based payment schemes, all of which are equity settled. Group Performance Share plan The Group operates a Group Performance Share plan that is equity settled. Bonuses in respect of employee performance in 2018 have been recognised in the charge in line with the proportion of the deferral period completed. Save-As-You-Earn schemes Eligible employees may enter into contracts through the Save-As-You-Earn (SAYE) schemes to save up to £500 per month and, at the expiry of a fixed term of three or five years, have the option to use these savings within six months of the expiry of the fixed term to acquire shares in the Group at a discounted price of no less than 80 per cent of the market price at the start of the invitation. Movements in the number of share options outstanding under the SAYE schemes are set out below: 2018 2017 Number of options Weighted average exercise price (pence ) Number of Weighted ) Outstanding at 1 January 860,867,088 51.34 678,692,896 51.76 Granted 188,866,162 47.92 268,653,890 51.03 Exercised (135,721,404 ) 59.00 (13,119,229 ) 55.58 Forfeited (22,909,999 ) 49.85 (18,545,569 ) 51.70 Cancelled (78,073,042 ) 50.66 (41,211,075 ) 52.77 Expired (10,033,887 ) 55.20 (13,603,825 ) 56.98 Outstanding at 31 December 802,994,918 49.30 860,867,088 51.34 Exercisable at 31 December 68,378 60.02 – – The weighted average share price at the time that the options were exercised during 2018 was £0.67 (2017: £0.67). The weighted average remaining contractual life of options outstanding at the end of the year was 2.16 years (2017: 1.4 years). The weighted average fair value of SAYE options granted during 2018 was £0.13 (2017: £0.15). The fair values of the SAYE options have been determined using a standard Black-Scholes model. Other share option plans LLOYDS BANKING GROUP EXECUTIVE SHARE PLAN 2003 The Plan was adopted in December 2003 and under the Plan share options may be granted to senior employees. Options under this plan have been granted specifically to facilitate recruitment (to compensate new recruits for any lost share awards), and also to make grants to key individuals for retention purposes. In some instances, grants may be made subject to individual performance conditions. Participants are not entitled to any dividends paid during the vesting period. 2018 2017 Number of options Weighted average exercise price (pence ) Number of Weighted ) Outstanding at 1 January 14,523,989 Nil 218,962,281 Nil Granted 3,914,599 Nil 5,466,405 Nil Exercised (6,854,043 ) Nil (104,967,667 ) Nil Vested (148,109 ) Nil – – Forfeited (662,985 ) Nil (81,883 ) Nil Lapsed (510,423 ) Nil (104,855,147 ) Nil Outstanding at 31 December 10,263,028 Nil 14,523,989 Nil Exercisable at 31 December 3,305,442 Nil 7,729,919 Nil The weighted average fair value of options granted in the year was £0.55 (2017: £0.62). The fair values of options granted have been determined using a standard Black-Scholes model. The weighted average share price at the time that the options were exercised during 2018 was £0.65 (2017: £0.69). The weighted average remaining contractual life of options outstanding at the end of the year was 5.2 years (2017: 4.9 years). Other share plans LLOYDS BANKING GROUP EXECUTIVE SHARE OWNERSHIP PLAN The plan, introduced in 2006, is aimed at delivering shareholder value by linking the receipt of shares to an improvement in the performance of the Group over a three year period. Awards are made within limits set by the rules of the plan, with the limits determining the maximum number of shares that can be awarded equating to three times annual salary. In exceptional circumstances this may increase to four times annual salary. For the 2016 and 2017 plan participants may be entitled to any dividends paid during the vesting period if the performance conditions are met. An amount equal in value to any dividends paid between the award date and the date the Remuneration Committee determine that the performance conditions were met may be paid, based on the number of shares that vest. The Remuneration Committee will determine if any dividends are to be paid in cash or in shares. Details of the performance conditions for the plan are provided in the Directors’ remuneration report. At the end of the performance period for the 2015 grant, the targets had not been fully met and therefore these awards vested in 2018 at a rate of 66.3 per cent. 2018 Number of shares 2017 Outstanding at 1 January 370,804,915 358,228,028 Granted 160,586,201 139,812,788 Vested (73,270,301 ) (57,406,864 ) Forfeited (48,108,870 ) (73,268,966 ) Dividend award 7,373,691 3,439,929 Outstanding at 31 December 417,385,636 370,804,915 Awards in respect of the 2016 grant vested in 2019 at a rate of 68.7 per cent. The weighted average fair value of awards granted in the year was £0.48 (2017: £0.57). The fair value calculations at 31 December 2018 for grants made in the year, using Black-Scholes models and Monte Carlo simulation, are based on the following assumptions: Save-As-You-Earn Executive Share Plan 2003 LTIP Weighted average risk-free interest rate 0.96% 0.74% 0.94% Weighted average expected life 3.3 years 1.3 years 3.7 years Weighted average expected volatility 28% 21% 29% Weighted average expected dividend yield 4.0% 4.0% 4.0% Weighted average share price £0.59 £0.58 £0.67 Weighted average exercise price £0.48 Nil Nil Expected volatility is a measure of the amount by which the Group’s shares are expected to fluctuate during the life of an option. The expected volatility is estimated based on the historical volatility of the closing daily share price over the most recent period that is commensurate with the expected life of the option. The historical volatility is compared to the implied volatility generated from market traded options in the Group’s shares to assess the reasonableness of the historical volatility and adjustments made where appropriate. Share Incentive Plan FREE SHARES An award of shares may be made annually to employees up to a maximum of £3,000. The shares awarded are held in trust for a mandatory period of three years on the employee’s behalf, during which period the employee is entitled to any dividends paid on such shares. The award is subject to a non-market based condition. If an employee leaves the Group within this three year period for other than a ‘good’ reason, all of the shares awarded will be forfeited. On 10 May 2018, the Group made an award of £200 (2017: £200) of shares to all eligible employees. The number of shares awarded was 21,513,300 (2017: 21,566,047), with an average fair value of £0.67 (2017: £0.69) based on the market price at the date of award. MATCHING SHARES The Group undertakes to match shares purchased by employees up to the value of £45 per month; these matching shares are held in trust for a mandatory period of three years on the employee’s behalf, during which period the employee is entitled to any dividends paid on such shares. The award is subject to a non-market based condition: if an employee leaves within this three year period for other than a ‘good’ reason, 100 per cent of the matching shares are forfeited. Similarly if the employees sell their purchased shares within three years, their matching shares are forfeited. The number of shares awarded relating to matching shares in 2018 was 34,174,161 (2017: 32,025,497), with an average fair value of £0.63 (2017: £0.67), based on market prices at the date of award. FIXED SHARE AWARDS Fixed share awards were introduced in 2014 in order to ensure that total fixed remuneration is commensurate with role and to provide a competitive reward package for certain Lloyds Banking Group employees, with an appropriate balance of fixed and variable remuneration, in line with regulatory requirements. The fixed share awards are delivered in Lloyds Banking Group shares, released over five years with 20 per cent being released each year following the year of award. The number of shares purchased in 2018 was 8,965,562 (2017: 9,313,314). The fixed share award is not subject to any performance conditions, performance adjustment or clawback. On an employee leaving the Group, there is no change to the timeline for which shares will become unrestricted. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of related party [text block] [Abstract] | |
Disclosure of related party [text block] | NOTE 46: RELATED PARTY TRANSACTIONS Key management personnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of an entity; the Group’s key management personnel are the members of the Lloyds Banking Group plc Group Executive Committee together with its Non-Executive Directors. The table below details, on an aggregated basis, key management personnel compensation: 2018 £m 2017 2016 Compensation Salaries and other short-term benefits 14 13 17 Post-employment benefits – – – Share-based payments 18 22 23 Total compensation 32 35 40 Aggregate contributions in respect of key management personnel to defined contribution pension schemes were £nil million (2017: £0.05 million; 2016: £0.1 million). 2018 million 2017 2016 Share option plans At 1 January 1 3 9 Granted, including certain adjustments (includes entitlements of appointed key management personnel) – – 3 Exercised/lapsed (includes entitlements of former key management personnel) (1 ) (2 ) (9 ) At 31 December – 1 3 2018 million 2017 million 2016 million Share plans At 1 January 82 65 82 Granted, including certain adjustments (includes entitlements of appointed key management personnel) 39 37 29 Exercised/lapsed (includes entitlements of former key management personnel) (37 ) (20 ) (46 ) At 31 December 84 82 65 The tables below detail, on an aggregated basis, balances outstanding at the year end and related income and expense, together with information relating to other transactions between the Group and its key management personnel: 2018 £m 2017 2016 Loans At 1 January 2 4 5 Advanced (includes loans of appointed key management personnel) 1 1 3 Repayments (includes loans of former key management personnel) (1 ) (3 ) (4 ) At 31 December 2 2 4 The loans are on both a secured and unsecured basis and are expected to be settled in cash. The loans attracted interest rates of between 6.70 per cent and 24.20 per cent in 2018 (2017: 6.45 per cent and 23.95 per cent; 2016: 2.49 per cent and 23.95 per cent). No provisions have been recognised in respect of loans given to key management personnel (2017 and 2016: £nil). 2018 £m 2017 2016 Deposits At 1 January 20 12 13 Placed (includes deposits of appointed key management personnel) 33 41 41 Withdrawn (includes deposits of former key management personnel) (33 ) (33 ) (42 ) At 31 December 20 20 12 Deposits placed by key management personnel attracted interest rates of up to 3.5 per cent (2017: 4.0 per cent; 2016: 4.0 per cent). At 31 December 2018, the Group did not provide any guarantees in respect of key management personnel (2017 and 2016: none). At 31 December 2018, transactions, arrangements and agreements entered into by the Group’s banking subsidiaries with directors and connected persons included amounts outstanding in respect of loans and credit card transactions of £0.5 million with 3 directors and 3 connected persons (2017: £0.01 million with three directors and two connected persons; 2016: £0.4 million with five directors and two connected persons). Subsidiaries In accordance with IFRS 10 Consolidated financial statements, transactions and balances with subsidiaries have been eliminated on consolidation. Pension funds The Group provides banking and some investment management services to certain of its pension funds. At 31 December 2018, customer deposits of £225 million (2017: £337 million) and investment and insurance contract liabilities of £79 million (2017: £307 million) related to the Group’s pension funds. Collective investment vehicles The Group manages 131 (2017: 134) collective investment vehicles, such as Open Ended Investment Companies (OEICs) and of these 82 (2017: 83) are consolidated. The Group invested £620 million (2017: £418 million) and redeemed £404 million (2017: £616 million) in the unconsolidated collective investment vehicles during the year and had investments, at fair value, of £2,513 million (2017: £2,328 million) at 31 December. The Group earned fees of £128 million from the unconsolidated collective investment vehicles during 2018 (2017: £133 million). Joint ventures and associates At 31 December 2018 there were loans and advances to customers of £57 million (2017: £123 million) outstanding and balances within customer deposits of £2 million (2017: £9 million) relating to joint ventures and associates. In addition to the above balances, the Group has a number of other associates held by its venture capital business that it accounts for at fair value through profit or loss. At 31 December 2018, these companies had total assets of approximately £4,091 million (2017: £4,661 million), total liabilities of approximately £4,616 million (2017: £5,228 million) and for the year ended 31 December 2018 had turnover of approximately £4,522 million (2017: £4,601 million) and made a loss of approximately £125 million (2017: net loss of £87 million). In addition, the Group has provided £1,141 million (2017: £1,226 million) of financing to these companies on which it received £49 million (2017: £81 million) of interest income in the year. |
CONTINGENT LIABILITIES AND COMM
CONTINGENT LIABILITIES AND COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of commitments and contingent liabilities [text block] [Abstract] | |
Disclosure of commitments and contingent liabilities [text block] | NOTE 47: CONTINGENT LIABILITIES AND COMMITMENTS Interchange fees With respect to multi-lateral interchange fees (MIFs), the Group is not directly involved in the ongoing investigations and litigation (as described below) which involve card schemes such as Visa and Mastercard. However, the Group is a member / licensee of Visa and Mastercard and other card schemes: – The European Commission continues to pursue competition investigations against Mastercard and Visa probing, amongst other things, MIFs paid in respect of cards issued outside the EEA; – Litigation brought by retailers continues in the English Courts against both Visa and Mastercard; – Any ultimate impact on the Group of the above investigations and litigation against Visa and Mastercard remains uncertain at this time. Visa Inc completed its acquisition of Visa Europe on 21 June 2016. As part of this transaction, the Group and certain other UK banks also entered into a Loss Sharing Agreement (LSA) with Visa Inc, which clarifies the allocation of liabilities between the parties should the litigation referred to above result in Visa Inc being liable for damages payable by Visa Europe. The maximum amount of liability to which the Group may be subject under the LSA is capped at the cash consideration which was received by the Group at completion. Visa Inc may also have recourse to a general indemnity, previously in place under Visa Europe’s Operating Regulations, for damages claims concerning inter or intra-regional MIF setting activities. LIBOR and other trading rates In July 2014, the Group announced that it had reached settlements totalling £217 million (at 30 June 2014 exchange rates) to resolve with UK and US federal authorities legacy issues regarding the manipulation several years ago of Group companies’ submissions to the British Bankers’ Association (BBA) London Interbank Offered Rate (LIBOR) and Sterling Repo Rate. The Group continues to cooperate with various other government and regulatory authorities, including the Swiss Competition Commission, and a number of US State Attorneys General, in conjunction with their investigations into submissions made by panel members to the bodies that set LIBOR and various other interbank offered rates. Certain Group companies, together with other panel banks, have also been named as defendants in private lawsuits, including purported class action suits, in the US in connection with their roles as panel banks contributing to the setting of US Dollar, Japanese Yen and Sterling LIBOR and the Australian BBSW Reference Rate. Certain of the plaintiffs’ claims, have been dismissed by the US Federal Court for Southern District of New York (subject to appeals). Certain Group companies are also named as defendants in (i) UK based claims; and (ii) in 2 Dutch class actions, raising LIBOR manipulation allegations. A number of the claims against the Group in relation to the alleged mis-sale of interest rate hedging products also include allegations of LIBOR manipulation. It is currently not possible to predict the scope and ultimate outcome on the Group of the various outstanding regulatory investigations not encompassed by the settlements, any private lawsuits or any related challenges to the interpretation or validity of any of the Group’s contractual arrangements, including their timing and scale. UK shareholder litigation In August 2014, the Group and a number of former directors were named as defendants in a claim by a number of claimants who held shares in Lloyds TSB Group plc (LTSB) prior to the acquisition of HBOS plc, alleging breaches of duties in relation to information provided to shareholders in connection with the acquisition and the recapitalisation of LTSB. The defendants refute all claims made. A trial commenced in the English High Court on 18 October 2017 and concluded on 5 March 2018 with judgment to follow. It is currently not possible to determine the ultimate impact on the Group (if any). Tax authorities The Group has an open matter in relation to a claim for group relief of losses incurred in its former Irish banking subsidiary, which ceased trading on 31 December 2010. In 2013 HMRC informed the Group that their interpretation of the UK rules which allow the offset of such losses denies the claim. If HMRC’s position is found to be correct management estimate that this would result in an increase in current tax liabilities of approximately £770 million (including interest) and a reduction in the Group’s deferred tax asset of approximately £250 million. The Group does not agree with HMRC’s position and, having taken appropriate advice, does not consider that this is a case where additional tax will ultimately fall due. There are a number of other open matters on which the Group is in discussion with HMRC (including the tax treatment of certain costs arising from the divestment of TSB Banking Group plc), none of which is expected to have a material impact on the financial position of the Group. Residential mortgage repossessions In August 2014, the Northern Ireland High Court handed down judgment in favour of the borrowers in relation to three residential mortgage test cases concerning certain aspects of the Group’s practice with respect to the recalculation of contractual monthly instalments of customers in arrears. The FCA has been actively engaged with the industry in relation to these considerations and has published Guidance on the treatment of customers with mortgage payment shortfalls. The Guidance covers remediation for mortgage customers who may have been affected by the way firms calculate these customers’ monthly mortgage instalments. The Group is implementing the Guidance and has now contacted nearly all affected customers with any remaining customers anticipated to be contacted by the end of March 2019. Mortgage arrears handling activities- FCA investigation On 26 May 2016, the Group was informed that an enforcement team at the FCA had commenced an investigation in connection with the Group’s mortgage arrears handling activities. This investigation is ongoing and the Group continues to cooperate with the FCA. It is not currently possible to make a reliable assessment of any liability that may result from the investigation including any financial penalty or public censure. HBOS Reading – FCA investigation On 7 April 2017 the FCA announced that it had resumed its investigation into the events surrounding the discovery of misconduct within the Reading-based Impaired Assets team of HBOS. The investigation is ongoing and the Group continues to cooperate with the FCA. It is not currently possible to make a reliable assessment of any liability that may result from the investigation including any financial penalty or public censure. Other legal actions and regulatory matters In addition, during the ordinary course of business the Group is subject to other complaints and threatened or actual legal proceedings (including class or group action claims) brought by or on behalf of current or former employees, customers, investors or other third parties, as well as legal and regulatory reviews, challenges, investigations and enforcement actions, both in the UK and overseas. All such material matters are periodically reassessed, with the assistance of external professional advisers where appropriate, to determine the likelihood of the Group incurring a liability. In those instances where it is concluded that it is more likely than not that a payment will be made, a provision is established to management's best estimate of the amount required at the relevant balance sheet date. In some cases it will not be possible to form a view, for example because the facts are unclear or because further time is needed properly to assess the merits of the case, and no provisions are held in relation to such matters. In these circumstances, specific disclosure in relation to a contingent liability will be made where material. However the Group does not currently expect the final outcome of any such case to have a material adverse effect on its financial position, operations or cash flows. 2018 2017 Contingent liabilities Acceptances and endorsements 194 71 Other: Other items serving as direct credit substitutes 632 740 Performance bonds and other transaction-related contingencies 2,425 2,300 3,057 3,040 Total contingent liabilities 3,251 3,111 The contingent liabilities of the Group arise in the normal course of its banking business and it is not practicable to quantify their future financial effect. 2018 2017 Commitments and guarantees Documentary credits and other short-term trade-related transactions 1 – Forward asset purchases and forward deposits placed 731 384 Undrawn formal standby facilities, credit lines and other commitments to lend: Less than 1 year original maturity: Mortgage offers made 11,594 11,156 Other commitments and guarantees 85,060 85,015 96,654 96,171 1 year or over original maturity 37,712 39,074 Total commitments and guarantees 135,098 135,629 Of the amounts shown above in respect of undrawn formal standby facilities, credit lines and other commitments to lend, £64,884 million (2017: £65,946 million) was irrevocable. Operating lease commitments Where a Group company is the lessee the future minimum lease payments under non-cancellable premises operating leases are as follows: 2018 2017 Not later than 1 year 259 275 Later than 1 year and not later than 5 years 807 845 Later than 5 years 977 934 Total operating lease commitments 2,043 2,054 Operating lease payments represent rental payable by the Group for certain of its properties. Some of these operating lease arrangements have renewal options and rent escalation clauses, although the effect of these is not material. No arrangements have been entered into for contingent rental payments. Capital commitments Excluding commitments in respect of investment property (note 26), capital expenditure contracted but not provided for at 31 December 2018 amounted to £378 million (2017: £444 million). Of this amount, £369 million (2017: £440 million) related to assets to be leased to customers under operating leases. The Group’s management is confident that future net revenues and funding will be sufficient to cover these commitments. |
STRUCTURED ENTITIES
STRUCTURED ENTITIES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of unconsolidated structured entities [line items] | |
Disclosure of information about interests in structured entity [text block] | NOTE 48: STRUCTURED ENTITIES The Group’s interests in structured entities are both consolidated and unconsolidated. Detail of the Group’s interests in consolidated structured entities are set out in: note 30 for securitisations and covered bond vehicles, note 35 for structured entities associated with the Group’s pension schemes, and below in part (A) and (B). Details of the Group’s interests in unconsolidated structured entities are included below in part (C). (A) Asset-backed conduits In addition to the structured entities discussed in note 30, which are used for securitisation and covered bond programmes, the Group sponsors an active asset-backed conduit, Cancara, which invests in client receivables and debt securities. The total consolidated exposure of Cancara at 31 December 2018 was £5,122 million (2017: £6,049 million), comprising £5,012 million of loans and advances (2017: £5,939 million) and £110 million of debt securities (2017: £110 million). All lending assets and debt securities held by the Group in Cancara are restricted in use, as they are held by the collateral agent for the benefit of the commercial paper investors and the liquidity providers only. The Group provides liquidity facilities to Cancara under terms that are usual and customary for standard lending activities in the normal course of the Group’s banking activities. During 2018 there have continued to be planned drawdowns on certain liquidity facilities for balance sheet management purposes, supporting the programme to provide funding alongside the proceeds of the asset-backed commercial paper issuance. The Group could be asked to provide support under the contractual terms of these arrangements including, for example, if Cancara experienced a shortfall in external funding, which may occur in the event of market disruption. The external assets in Cancara are consolidated in the Group’s financial statements. (B) Consolidated collective investment vehicles and limited partnerships The assets of the Insurance business held in consolidated collective investment vehicles, such as Open-Ended Investment Companies and limited partnerships, are not directly available for use by the Group. However, the Group’s investment in the majority of these collective investment vehicles is readily realisable. As at 31 December 2018, the total carrying value of these consolidated collective investment vehicle assets and liabilities held by the Group was £62,648 million (2017: £68,124 million). The Group has no contractual arrangements (such as liquidity facilities) that would require it to provide financial or other support to the consolidated collective investment vehicles; the Group has not previously provided such support and has no current intentions to provide such support. (C) Unconsolidated collective investment vehicles and limited partnerships The Group’s direct interests in unconsolidated structured entities comprise investments in collective investment vehicles, such as Open-Ended Investment Companies, and limited partnerships with a total carrying value of £26,028 million at 31 December 2018 (2017: £28,759 million), included within financial assets designated at fair value through profit and loss (see note 16). These investments include both those entities managed by third parties and those managed by the Group. At 31 December 2018, the total asset value of these unconsolidated structured entities, including the portion in which the Group has no interest, was £2,435 billion (2017: £2,338 billion). The Group’s maximum exposure to loss is equal to the carrying value of the investment. However, the Group’s investments in these entities are primarily held to match policyholder liabilities in the Insurance division and the majority of the risk from a change in the value of the Group’s investment is matched by a change in policyholder liabilities. The collective investment vehicles are primarily financed by investments from investors in the vehicles. During the year the Group has not provided any non-contractual financial or other support to these entities and has no current intention of providing any financial or other support. There were no transfers from/to these unconsolidated collective investment vehicles and limited partnerships. The Group considers itself the sponsor of a structured entity where it is primarily involved in the design and establishment of the structured entity; and further where the Group transfers assets to the structured entity; market products associated with the structured entity in its own name and/or provide guarantees regarding the structured entity’s performance. The Group sponsors a range of diverse investment funds and limited partnerships where it acts as the fund manager or equivalent decision maker and markets the funds under one of the Group’s brands. The Group earns fees from managing the investments of these funds. The investment management fees that the Group earned from these entities, including those in which the Group held no ownership interest at 31 December 2018, are reported in note 6. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of financial instruments [text block] [Abstract] | |
Disclosure of financial instruments [text block] | NOTE 49: FINANCIAL INSTRUMENTS (1) Measurement basis of financial assets and liabilities The accounting policies in note 2 describe how different classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised. The following table analyses the carrying amounts of the financial assets and liabilities by category and by balance sheet heading. Mandatorily held at fair value Derivatives Held for Other Designated at At fair value Held at Insurance Total At 31 December 2018 Financial assets Cash and balances at central banks – – – – – 54,663 – 54,663 Items in the course of collection from banks – – – – – 647 – 647 Financial assets at fair value through profit or loss – 35,246 123,283 – – – – 158,529 Derivative financial instruments 1,563 22,032 – – – – – 23,595 Loans and advances to banks – – – – – 6,283 – 6,283 Loans and advances to customers – – – – – 484,858 – 484,858 Debt securities – – – – – 5,238 – 5,238 Financial assets at amortised cost – – – – – 496,379 – 496,379 Financial assets at fair value through other comprehensive income – – – – 24,815 – – 24,815 Total financial assets 1,563 57,278 123,283 – 24,815 551,689 – 758,628 Financial liabilities Deposits from banks – – – – – 30,320 – 30,320 Customer deposits – – – – – 418,066 – 418,066 Items in course of transmission to banks – – – – – 636 – 636 Financial liabilities at fair value through profit or loss – 23,451 – 7,096 – – – 30,547 Derivative financial instruments 1,108 20,265 – – – – – 21,373 Notes in circulation – – – – – 1,104 – 1,104 Debt securities in issue – – – – – 91,168 – 91,168 Liabilities arising from insurance contracts and participating investment contracts – – – – – – 98,874 98,874 Liabilities arising from non-participating investment contracts – – – – – – 13,853 13,853 Unallocated surplus within insurance businesses – – – – – – 382 382 Subordinated liabilities – – – – – 17,656 – 17,656 Total financial liabilities 1,108 43,716 – 7,096 – 558,950 113,109 723,979 At fair value Derivatives Held for Other Available- Held at Insurance Total At 31 December 2017 Financial assets Cash and balances at central banks – – – – 58,521 – 58,521 Items in the course of collection from banks – – – – 755 – 755 Financial assets at fair value through profit or loss – 42,236 120,642 – – – 162,878 Derivative financial instruments 1,881 23,953 – – – – 25,834 Loans and advances to banks – – – – 6,611 – 6,611 Loans and advances to customers – – – – 472,498 – 472,498 Debt securities – – – – 3,643 – 3,643 Financial assets at amortised cost – – – – 482,752 – 482,752 Available-for-sale financial assets – – – 42,098 – – 42,098 Total financial assets 1,881 66,189 120,642 42,098 542,028 – 772,838 Financial liabilities Deposits from banks – – – – 29,804 – 29,804 Customer deposits – – – – 418,124 – 418,124 Items in course of transmission to banks – – – – 584 – 584 Financial liabilities at fair value through profit or loss – 43,062 7,815 – – – 50,877 Derivative financial instruments 1,613 24,511 – – – – 26,124 Notes in circulation – – – – 1,313 – 1,313 Debt securities in issue – – – – 72,450 – 72,450 Liabilities arising from insurance contracts and participating investment contracts – – – – – 103,413 103,413 Liabilities arising from non-participating investment contracts – – – – – 15,447 15,447 Unallocated surplus within insurance businesses – – – – – 390 390 Subordinated liabilities – – – – 17,922 – 17,922 Total financial liabilities 1,613 67,573 7,815 – 540,197 119,250 736,448 (2) Fair value measurement Fair value 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. It is a measure as at a specific date and may be significantly different from the amount which will actually be paid or received on maturity or settlement date. Wherever possible, fair values have been calculated using unadjusted quoted market prices in active markets for identical instruments held by the Group. Where quoted market prices are not available, or are unreliable because of poor liquidity, fair values have been determined using valuation techniques which, to the extent possible, use market observable inputs, but in some cases use non-market observable inputs. Valuation techniques used include discounted cash flow analysis and pricing models and, where appropriate, comparison to instruments with characteristics similar to those of the instruments held by the Group. The Group manages valuation adjustments for its derivative exposures on a net basis; the Group determines their fair values on the basis of their net exposures. In all other cases, fair values of financial assets and liabilities measured at fair value are determined on the basis of their gross exposures. The carrying amount of the following financial instruments is a reasonable approximation of fair value: cash and balances at central banks, items in the course of collection from banks, items in course of transmission to banks, notes in circulation and liabilities arising from non-participating investment contracts. Because a variety of estimation techniques are employed and significant estimates made, comparisons of fair values between financial institutions may not be meaningful. Readers of these financial statements are thus advised to use caution when using this data to evaluate the Group’s financial position. Fair value information is not provided for items that are not financial instruments or for other assets and liabilities which are not carried at fair value in the Group’s consolidated balance sheet. These items include intangible assets, such as the value of the Group’s branch network, the long-term relationships with depositors and credit card relationships; premises and equipment; and shareholders’ equity. These items are material and accordingly the Group believes that the fair value information presented does not represent the underlying value of the Group. VALUATION CONTROL FRAMEWORK The key elements of the control framework for the valuation of financial instruments include model validation, product implementation review and independent price verification. These functions are carried out by appropriately skilled risk and finance teams, independent of the business area responsible for the products. Model validation covers both qualitative and quantitative elements relating to new models. In respect of new products, a product implementation review is conducted pre- and post-trading. Pre-trade testing ensures that the new model is integrated into the Group’s systems and that the profit and loss and risk reporting are consistent throughout the trade life cycle. Post-trade testing examines the explanatory power of the implemented model, actively monitoring model parameters and comparing in-house pricing to external sources. Independent price verification procedures cover financial instruments carried at fair value. The frequency of the review is matched to the availability of independent data, monthly being the minimum. Valuation differences in breach of established thresholds are escalated to senior management. The results from independent pricing and valuation reserves are reviewed monthly by senior management. Formal committees, consisting of senior risk, finance and business management, meet at least quarterly to discuss and approve valuations in more judgemental areas, in particular for unquoted equities, structured credit, over-the-counter options and the Credit Valuation Adjustment (CVA) reserve. VALUATION OF FINANCIAL ASSETS AND LIABILITIES Assets and liabilities carried at fair value or for which fair values are disclosed have been classified into three levels according to the quality and reliability of information used to determine the fair values. LEVEL 1 Level 1 fair value measurements are those derived from unadjusted quoted prices in active markets for identical assets or liabilities. Products classified as level 1 predominantly comprise equity shares, treasury bills and other government securities. LEVEL 2 Level 2 valuations are those where quoted market prices are not available, for example where the instrument is traded in a market that is not considered to be active or valuation techniques are used to determine fair value and where these techniques use inputs that are based significantly on observable market data. Examples of such financial instruments include most over-the-counter derivatives, financial institution issued securities, certificates of deposit and certain asset-backed securities. LEVEL 3 Level 3 portfolios are those where at least one input which could have a significant effect on the instrument’s valuation is not based on observable market data. Such instruments would include the Group’s venture capital and unlisted equity investments which are valued using various valuation techniques that require significant management judgement in determining appropriate assumptions, including earnings multiples and estimated future cash flows. Certain of the Group’s asset-backed securities and derivatives, principally where there is no trading activity in such securities, are also classified as level 3. Transfers out of the level 3 portfolio arise when inputs that could have a significant impact on the instrument’s valuation become market observable after previously having been non-market observable. In the case of asset-backed securities this can arise if more than one consistent independent source of data becomes available. Conversely transfers into the portfolio arise when consistent sources of data cease to be available. (3) Financial assets and liabilities carried at fair value (A) FINANCIAL ASSETS, EXCLUDING DERIVATIVES VALUATION HIERARCHY At 31 December 2018, the Group’s financial assets carried at fair value, excluding derivatives, totalled £183,344 million (31 December 2017: £204,976 million). The table below analyses these financial assets by balance sheet classification, asset type and valuation methodology (level 1, 2 or 3, as described on page F-76). The fair value measurement approach is recurring in nature. There were no significant transfers between level 1 and 2 during the year. Valuation hierarchy Level 1 Level 2 Level 3 Total At 31 December 2018 Financial assets at fair value through profit or loss Loans and advances to customers – 27,285 10,565 37,850 Loans and advances to banks – 3,026 – 3,026 Debt securities: Government securities 17,926 169 – 18,095 Other public sector securities – 2,064 – 2,064 Bank and building society certificates of deposit 84 1,021 – 1,105 Asset-backed securities: Mortgage-backed securities – 219 6 225 Other asset-backed securities – 231 118 349 Corporate and other debt securities – 16,840 1,470 18,310 18,010 20,544 1,594 40,148 Treasury and other bills 20 – – 20 Equity shares 75,701 26 1,758 77,485 Total financial assets at fair value through profit or loss 93,731 50,881 13,917 158,529 Financial assets at fair value through other comprehensive income Debt securities: Government securities 18,847 124 – 18,971 Bank and building society certificates of deposit – 118 – 118 Asset-backed securities: Mortgage-backed securities – – 120 120 Other asset-backed securities – 5 126 131 Corporate and other debt securities 32 5,119 – 5,151 18,879 5,366 246 24,491 Treasury and other bills 303 – – 303 Equity shares – – 21 21 Total financial assets at fair value through other comprehensive income 19,182 5,366 267 24,815 Total financial assets carried at fair value, excluding derivatives 112,913 56,247 14,184 183,344 Level 1 Level 2 Level 3 Total At 31 December 2017 Financial assets at fair value through profit or loss Loans and advances to customers – 29,976 – 29,976 Loans and advances to banks – 1,614 – 1,614 Debt securities: Government securities 20,268 1,729 23 22,020 Other public sector securities – 1,526 1 1,527 Bank and building society certificates of deposit – 222 – 222 Asset-backed securities: Mortgage-backed securities 3 348 49 400 Other asset-backed securities 5 229 787 1,021 Corporate and other debt securities – 18,542 1,448 19,990 20,276 22,596 2,308 45,180 Treasury and other bills 18 – – 18 Equity shares 84,694 18 1,378 86,090 Total trading and other financial assets at fair value through profit or loss 104,988 54,204 3,686 162,878 Available-for-sale financial assets Debt securities: Government securities 34,534 174 – 34,708 Bank and building society certificates of deposit – 167 – 167 Asset-backed securities: Mortgage-backed securities – 1,156 – 1,156 Other asset-backed securities – 163 92 255 Corporate and other debt securities 229 4,386 – 4,615 34,763 6,046 92 40,901 Equity shares 555 38 604 1,197 Total available-for-sale financial assets 35,318 6,084 696 42,098 Total financial assets carried at fair value, excluding derivatives 140,306 60,288 4,382 204,976 MOVEMENTS IN LEVEL 3 PORTFOLIO The table below analyses movements in level 3 financial assets, excluding derivatives, carried at fair value (recurring measurement). 2018 2017 Financial At fair value Available- Total level 3 Financial assets Available- Total level 3 At 31 December 2017 3,686 696 4,382 Adjustment on adoption of IFRS 9 (note 54) 10,466 302 (696 ) 10,072 At 1 January 14,152 302 14,454 3,806 894 4,700 Exchange and other adjustments 87 (2 ) 85 (1 ) (24 ) (25 ) Gains recognised in the income statement within other income 439 – 439 202 – 202 (Losses) gains recognised in other comprehensive income within the revaluation reserve in respect of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) – (4 ) (4 ) – (117 ) (117 ) Purchases/increases to customer loans 2,480 2 2,482 774 41 815 Sales (3,593 ) (95 ) (3,688 ) (1,005 ) (61 ) (1,066 ) Transfers into the level 3 portfolio 815 348 1,163 152 2 154 Transfers out of the level 3 portfolio (463 ) (284 ) (747 ) (242 ) (39 ) (281 ) At 31 December 13,917 267 14,184 3,686 696 4,382 Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December (104 ) – (104 ) 125 – 125 VALUATION METHODOLOGY FOR FINANCIAL ASSETS, EXCLUDING DERIVATIVES Loans and advances to customers and banks These assets are principally reverse repurchase agreements. The fair value of these assets is determined using discounted cash flow techniques. The discount rates are derived from observable repo curves specific to the type of security purchased under the reverse repurchase agreement. Debt securities Debt securities measured at fair value and classified as level 2 are valued by discounting expected cash flows using an observable credit spread applicable to the particular instrument. Where there is limited trading activity in debt securities, the Group uses valuation models, consensus pricing information from third party pricing services and broker or lead manager quotes to determine an appropriate valuation. Debt securities are classified as level 3 if there is a significant valuation input that cannot be corroborated through market sources or where there are materially inconsistent values for an input. Asset classes classified as level 3 mainly comprise certain collateralised loan obligations and collateralised debt obligations. Equity investments Unlisted equity and fund investments are valued using different techniques in accordance with the Group’s valuation policy and International Private Equity and Venture Capital Guidelines. Depending on the business sector and the circumstances of the investment, unlisted equity valuations are based on earnings multiples, net asset values or discounted cash flows. – A number of earnings multiples are used in valuing the portfolio including price earnings, earnings before interest and tax and earnings before interest, tax, depreciation and amortisation. The particular multiple selected being appropriate for the type of business being valued and is derived by reference to the current market-based multiple. Consideration is given to the risk attributes, growth prospects and financial gearing of comparable businesses when selecting an appropriate multiple. – Discounted cash flow valuations use estimated future cash flows, usually based on management forecasts, with the application of appropriate exit yields or terminal multiples and discounted using rates appropriate to the specific investment, business sector or recent economic rates of return. Recent transactions involving the sale of similar businesses may sometimes be used as a frame of reference in deriving an appropriate multiple. – For fund investments the most recent capital account value calculated by the fund manager is used as the basis for the valuation and adjusted, if necessary, to align valuation techniques with the Group’s valuation policy. Unlisted equity investments and investments in property partnerships held in the life assurance funds are valued using third party valuations. Management take account of any pertinent information, such as recent transactions and information received on particular investments, to adjust the third party valuations where necessary. (B) FINANCIAL LIABILITIES, EXCLUDING DERIVATIVES VALUATION HIERARCHY At 31 December 2018, the Group’s financial liabilities carried at fair value, excluding derivatives, comprised its financial liabilities at fair value through profit or loss and totalled £30,547 million (31 December 2017: £50,877 million). The table below analyses these financial liabilities by balance sheet classification and valuation methodology (level 1, 2 or 3, as described on page F-76). The fair value measurement approach is recurring in nature. There were no significant transfers between level 1 and 2 during the year. Level 1 Level 2 Level 3 Total At 31 December 2018 Financial liabilities at fair value through profit or loss Liabilities held at fair value through profit or loss – 7,085 11 7,096 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements – 21,595 – 21,595 Other deposits – 242 – 242 Short positions in securities 1,464 150 – 1,614 1,464 21,987 – 23,451 Total financial liabilities carried at fair value, excluding derivatives 1,464 29,072 11 30,547 At 31 December 2017 Financial liabilities at fair value through profit or loss Liabilities held at fair value through profit or loss 3 7,812 – 7,815 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements – 41,378 – 41,378 Other deposits – 381 – 381 Short positions in securities 1,106 197 – 1,303 1,106 41,956 – 43,062 Total financial liabilities carried at fair value, excluding derivatives 1,109 49,768 – 50,877 The table below analyses movements in the level 3 financial liabilities portfolio, excluding derivatives. 2018 2017 At 1 January – 2 Losses (gains) recognised in the income statement within other income – (2 ) Redemptions – – Transfers into the level 3 portfolio 11 – Transfers out of the level 3 portfolio – – At 31 December 11 – Gains recognised in the income statement, within other income, relating to the change in fair value of those liabilities held at 31 December – – VALUATION METHODOLOGY FOR FINANCIAL LIABILITIES, EXCLUDING DERIVATIVES Liabilities held at fair value through profit or loss These principally comprise debt securities in issue which are classified as level 2 and their fair value is determined using techniques whose inputs are based on observable market data. The carrying amount of the securities is adjusted to reflect the effect of changes in own credit spreads and the resulting gain or loss is recognised in other comprehensive income. At 31 December 2018, the own credit adjustment arising from the fair valuation of £7,085 million (2017: £7,812 million) of the Group’s debt securities in issue designated at fair value through profit or loss resulted in a gain of £533 million (2017: loss of £55 million), before tax, recognised in other comprehensive income. Trading liabilities in respect of securities sold under repurchase agreements The fair value of these liabilities is determined using discounted cash flow techniques. The discount rates are derived from observable repo curves specific to the type of security sold under the repurchase agreement. (C) DERIVATIVES All of the Group’s derivative assets and liabilities are carried at fair value. At 31 December 2018, such assets totalled £23,595 million (31 December 2017: £25,834 million) and liabilities totalled £21,373 million (31 December 2017: £26,124 million). The table below analyses these derivative balances by valuation methodology (level 1, 2 or 3, as described on page F-76). The fair value measurement approach is recurring in nature. There were no significant transfers between level 1 and level 2 during the year. 2018 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets 93 22,575 927 23,595 246 24,532 1,056 25,834 Derivative liabilities (132 ) (20,525 ) (716 ) (21,373 ) (587 ) (24,733 ) (804 ) (26,124 ) Where the Group’s derivative assets and liabilities are not traded on an exchange, they are valued using valuation techniques, including discounted cash flow and options pricing models, as appropriate. The types of derivatives classified as level 2 and the valuation techniques used include: – Interest rate swaps which are valued using discounted cash flow models; the most significant inputs into those models are interest rate yield curves which are developed from publicly quoted rates. – Foreign exchange derivatives that do not contain options which are priced using rates available from publicly quoted sources. – Credit derivatives which are valued using standard models with observable inputs, except for the items classified as level 3, which are valued using publicly available yield and credit default swap (CDS) curves. – Less complex interest rate and foreign exchange option products which are valued using volatility surfaces developed from publicly available interest rate cap, interest rate swaption and other option volatilities; option volatility skew information is derived from a market standard consensus pricing service. For more complex option products, the Group calibrates its models using observable at-the-money data; where necessary, the Group adjusts for out-of-the-money positions using a market standard consensus pricing service. Complex interest rate and foreign exchange products where there is significant dispersion of consensus pricing or where implied funding costs are material and unobservable are classified as level 3. Where credit protection, usually in the form of credit default swaps, has been purchased or written on asset-backed securities, the security is referred to as a negative basis asset-backed security and the resulting derivative assets or liabilities have been classified as either level 2 or level 3 according to the classification of the underlying asset-backed security. Certain unobservable inputs are used to calculate CVA, FVA, and own credit adjustments, but are not considered significant in determining the classification of the derivative and debt portfolios. Consequently, those inputs do not form part of the Level 3 sensitivities presented. The table below analyses movements in level 3 derivative assets and liabilities carried at fair value. 2018 2017 Derivative Derivative Derivative Derivative At 1 January 1,056 (804 ) 1,399 (960 ) Exchange and other adjustments 7 (5 ) 24 (20 ) Losses (gains) recognised in the income statement within other income (84 ) 49 (208 ) 215 Purchases (additions) – (68 ) 103 (18 ) (Sales) redemptions (52 ) 112 (79 ) 53 Transfers into the level 3 portfolio – – 33 (74 ) Transfers out of the level 3 portfolio – – (216 ) – At 31 December 927 (716 ) 1,056 (804 ) Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets or liabilities held at 31 December (424 ) 82 (208 ) 213 DERIVATIVE VALUATION ADJUSTMENTS Derivative financial instruments which are carried in the balance sheet at fair value are adjusted where appropriate to reflect credit risk, market liquidity and other risks. (i) Uncollateralised derivative valuation adjustments, excluding monoline counterparties The following table summarises the movement on this valuation adjustment account during 2017 and 2018: 2018 2017 At 1 January 521 744 Income statement charge (credit) 47 (260 ) Transfers (6 ) 37 At 31 December 562 521 Represented by: 2018 2017 Credit Valuation Adjustment 409 408 Debit Valuation Adjustment (79 ) (37 ) Funding Valuation Adjustment 232 150 562 521 Credit and Debit Valuation Adjustments (CVA and DVA) are applied to the Group’s over-the-counter derivative exposures with counterparties that are not subject to standard interbank collateral arrangements. These exposures largely relate to the provision of risk management solutions for corporate customers within the Commercial Banking division. A CVA is taken where the Group has a positive future uncollateralised exposure (asset). A DVA is taken where the Group has a negative future uncollateralised exposure (liability). These adjustments reflect interest rates and expectations of counterparty creditworthiness and the Group’s own credit spread respectively. The CVA is sensitive to: – the current size of the mark-to-market position on the uncollateralised asset; – expectations of future market volatility of the underlying asset; and – expectations of counterparty creditworthiness. In circumstances where exposures to a counterparty become impaired, any associated derivative valuation adjustment is transferred and assessed for specific loss alongside other non-derivative assets and liabilities that the counterparty may have with the Group. Market Credit Default Swap (CDS) spreads are used to develop the probability of default for quoted counterparties. For unquoted counterparties, internal credit ratings and market sector CDS curves and recovery rates are used. The Loss Given Default (LGD) is based on market recovery rates and internal credit assessments. The combination of a one notch deterioration in the credit rating of derivative counterparties and a ten per cent increase in LGD increases the CVA by £89 million. Current market value is used to estimate the projected exposure for products not supported by the model, which are principally complex interest rate options that are traded in very low volumes. For these, the CVA is calculated on an add-on basis (although no such adjustment was required at 31 December 2018). The DVA is sensitive to: – the current size of the mark-to-market position on the uncollateralised liability; – expectations of future market volatility of the underlying liability; and – the Group’s own CDS spread. A one per cent rise in the CDS spread would lead to an increase in the DVA of £67 million to £146 million. The risk exposures that are used for the CVA and DVA calculations are strongly influenced by interest rates. Due to the nature of the Group’s business the CVA/DVA exposures tend to be on average the same way around such that the valuation adjustments fall when interest rates rise. A one per cent rise in interest rates would lead to a £108 million fall in the overall valuation adjustment to £222 million. The CVA model used by the Group does not assume any correlation between the level of interest rates and default rates. The Group has also recognised a Funding Valuation Adjustment to adjust for the net cost of funding uncollateralised derivative positions. This adjustment is calculated on the expected future exposure discounted at a suitable cost of funds. A ten basis points increase in the cost of funds will increase the funding valuation adjustment by approximately £23 million. (ii) Market liquidity The Group includes mid to bid-offer valuation adjustments against the expected cost of closing out the net market risk in the Group’s trading positions within a timeframe that is consistent with historical trading activity and spreads that the trading desks have accessed historically during the ordinary course of business in normal market conditions. At 31 December 2018, the Group’s derivative trading business held mid to bid-offer valuation adjustments of £80 million (2017: £74 million). (D) SENSITIVITY OF LEVEL 3 VALUATIONS At 31 December 2018 At 31 December 2017 Effect of reasonably possible 2 Effect of reasonably possible 2 Valuation techniques Significant unobservable 1 Carrying Favourable Unfavourable Carrying Favourable Unfavourable Financial assets at fair value through profit or loss Loans and advances to customers Discounted cash flows Gross interest rates, inferred spreads (bps) 97bps/208bps 10,565 380 (371 ) – – – Debt securities Discounted cash flows Credit spreads (bps) (1bps/2bps) 274 92 (21 ) 11 – – Equity and venture capital investments Market approach Earnings multiple (0.9/14.6) 1,657 54 (55 ) 1,879 65 (65 ) Underlying asset/net asset value (incl. property prices) 3 n/a 523 48 (57 ) 50 5 (5 ) Unlisted equities, debt securities and property partnerships in the life funds Underlying asset/net asset value (incl. property prices), broker quotes or discounted cash flows 3 n/a 898 2 (45 ) 1,746 26 (76 ) 13,917 3,686 Financial assets at fair value through other comprehensive income/available-for-sale financial assets Asset-backed securities Lead manager or broker quote/consensus pricing n/a 246 3 (5 ) 92 – (4 ) Equity and venture capital investments Underlying asset/net asset value (incl. property prices) 3 n/a 21 2 (2 ) 604 83 (42 ) 267 696 Derivative financial assets Interest rate derivatives Option pricing model Interest rate volatility (19%/80%) 927 7 (5 ) 1,056 11 (3 ) 927 1,056 Level 3 financial assets carried at fair value 15,111 5,438 Financial liabilities at fair value through profit or loss 11 – – – – – Derivative financial liabilities Interest rate derivatives Option pricing model Interest rate volatility (19%/80%) 716 – – 804 – – 716 804 Level 3 financial liabilities carried at fair value 727 804 1 Ranges are shown where appropriate and represent the highest and lowest inputs used in the level 3 valuations. 2 Where the exposure to an unobservable input is managed on a net basis, only the net impact is shown in the table. 3 Underlying asset/net asset values represent fair value. UNOBSERVABLE INPUTS Significant unobservable inputs affecting the valuation of debt securities, unlisted equity investments and derivatives are as follows: – Interest rates and inflation rates are referenced in some derivatives where the payoff that the holder of the derivative receives depends on the behaviour of those underlying references through time. – Credit spreads represent the premium above the benchmark reference instrument required to compensate for lower credit quality; higher spreads lead to a lower fair value. – Volatility parameters represent key attributes of option behaviour; higher volatilities typically denote a wider range of possible outcomes. – Earnings multiples are used to value certain unlisted equity investments; a higher earnings multiple will result in a higher fair value. REASONABLY POSSIBLE ALTERNATIVE ASSUMPTIONS Valuation techniques applied to many of the Group’s level 3 instruments often involve the use of two or more inputs whose relationship is interdependent. The calculation of the effect of reasonably possible alternative assumptions included in the table above reflects such relationships. Debt securities Reasonably possible alternative assumptions have been determined in respect of the Group’s structured credit investment by flexing credit spreads. Derivatives Reasonably possible alternative assumptions have been determined in respect of swaptions in the Group’s derivative portfolios which are priced using industry standard option pricing models. Such models require interest rate volatilities which may be unobservable at longer maturities. To derive reasonably possible alternative valuations these volatilities have been flexed within a range of 19 per cent to 80 per cent (2017: 9 per cent to 94 per cent). Unlisted equity, venture capital investments and investments in property partnerships The valuation techniques used for unlisted equity and venture capital investments vary depending on the nature of the investment. Reasonably possible alternative valuations for these investments have been calculated by reference to the approach taken, as appropriate to the business sector and investment circumstances and as such the following inputs have been considered: – for valuations derived from earnings multiples, consideration is given to the risk a |
TRANSFERS OF FINANCIAL ASSETS
TRANSFERS OF FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of transferred financial assets that are not derecognised in their entirety [text block] [Abstract] | |
Disclosure of transferred financial assets that are not derecognised in their entirety [text block] | NOTE 50: TRANSFERS OF FINANCIAL ASSETS There were no significant transferred financial assets which were derecognised in their entirety, but with ongoing exposure. Details of transferred financial assets that continue to be recognised in full are as follows. The Group enters into repurchase and securities lending transactions in the normal course of business that do not result in derecognition of the financial assets covered as substantially all of the risks and rewards, including credit, interest rate, prepayment and other price risks are retained by the Group. In all cases, the transferee has the right to sell or repledge the assets concerned. As set out in note 30, included within financial assets measured at amortised cost are loans transferred under the Group’s securitisation and covered bond programmes. As the Group retains all of a majority of the risks and rewards associated with these loans, including credit, interest rate, prepayment and liquidity risk, they remain on the Group’s balance sheet. Assets transferred into the Group’s securitisation and covered bond programmes are not available to be used by the Group whilst the assets are within the programmes. However, the Group retains the right to remove loans from the covered bond programmes where they are in excess of the programme’s requirements. In addition, where the Group has retained some of the notes issued by securitisation and covered bond programmes, the Group has the ability to sell or pledge these retained notes. The table below sets out the carrying values of the transferred assets and the associated liabilities. For repurchase and securities lending transactions, the associated liabilities represent the Group’s obligation to repurchase the transferred assets. For securitisation programmes, the associated liabilities represent the external notes in issue (note 30). Except as otherwise noted below, none of the liabilities shown in the table below have recourse only to the transferred assets. 2018 2017 Carrying Carrying Carrying Carrying Repurchase and securities lending transactions Financial assets at fair value through profit or loss 6,815 961 9,946 3,257 Financial assets at fair value through other comprehensive income 7,279 5,337 19,359 16,753 Securitisation programmes Financial assets at amortised cost: Loans and advances to customers 1 41,674 5,479 35,475 3,660 1 The carrying value of associated liabilities excludes securitisation notes held by the Group of £31,701 million (31 December 2017: £21,536 million). |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of offsetting of financial assets and financial liabilities [text block] [Abstract] | |
Disclosure of offsetting of financial assets and financial liabilities [text block] | NOTE 51: OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES The following information relates to financial assets and liabilities which have been offset in the balance sheet and those which have not been offset but for which the Group has enforceable master netting agreements or collateral arrangements in place with counterparties. Related amounts where set off in 3 Potential At 31 December 2018 Gross amounts 1 Amounts offset 2 Net amounts Cash collateral Non-cash net amounts Financial assets Financial assets at fair value through profit or loss: Excluding reverse repos 130,172 – 130,172 – (978 ) 129,194 Reverse repos 33,472 (5,115 ) 28,357 (622 ) (27,735 ) – 163,644 (5,115 ) 158,529 (622 ) (28,713 ) 129,194 Derivative financial instruments 78,607 (55,012 ) 23,595 (6,039 ) (15,642 ) 1,914 Loans and advances to banks: Excluding reverse repos 5,822 – 5,822 (2,676 ) – 3,146 Reverse repos 461 – 461 – (461 ) – 6,283 – 6,283 (2,676 ) (461 ) 3,146 Loans and advances to customers: Excluding reverse repos 447,020 (2,645 ) 444,375 (1,319 ) (3,241 ) 439,815 Reverse repos 42,494 (2,011 ) 40,483 – (40,483 ) – 489,514 (4,656 ) 484,858 (1,319 ) (43,724 ) 439,815 Debt securities 5,238 – 5,238 – – 5,238 Financial assets at fair value through other comprehensive income 24,815 – 24,815 – (5,361 ) 19,454 Financial liabilities Deposits from banks: Excluding repos 9,150 – 9,150 (5,291 ) – 3,859 Repos 21,170 – 21,170 – (21,170 ) – 30,320 – 30,320 (5,291 ) (21,170 ) 3,859 Customer deposits: Excluding repos 417,652 (1,404 ) 416,248 (1,370 ) (3,241 ) 411,637 Repos 1,818 – 1,818 – (1,818 ) – 419,470 (1,404 ) 418,066 (1,370 ) (5,059 ) 411,637 Financial liabilities at fair value through profit or loss: Excluding repos 8,952 – 8,952 – – 8,952 Repos 28,721 (7,126 ) 21,595 – (21,595 ) – 37,673 (7,126 ) 30,547 – (21,595 ) 8,952 Derivative financial instruments 77,626 (56,253 ) 21,373 (3,995 ) (17,313 ) 65 Related amounts where set off in 3 Potential At 31 December 2017 Gross amounts 1 Amounts offset 2 Net amounts Cash collateral Non-cash net amounts Financial assets Financial assets at fair value through profit or loss: Excluding reverse repos 131,288 – 131,288 – (3,322 ) 127,966 Reverse repos 38,882 (7,292 ) 31,590 – (31,590 ) – 170,170 (7,292 ) 162,878 – (34,912 ) 127,966 Derivative financial instruments 72,869 (47,035 ) 25,834 (5,419 ) (13,807 ) 6,608 Loans and advances to banks: Excluding reverse repos 5,840 – 5,840 (2,293 ) – 3,547 Reverse repos 771 – 771 (646 ) (125 ) – 6,611 – 6,611 (2,939 ) (125 ) 3,547 Loans and advances to customers: Excluding reverse repos 457,382 (1,716 ) 455,666 (1,656 ) (7,030 ) 446,980 Reverse repos 16,832 – 16,832 – (16,832 ) – 474,214 (1,716 ) 472,498 (1,656 ) (23,862 ) 446,980 Debt securities 3,643 – 3,643 – – 3,643 Available-for-sale financial assets 42,098 – 42,098 – (16,751 ) 25,347 Financial liabilities Deposits from banks: Excluding repos 6,629 – 6,629 (4,860 ) – 1,769 Repos 23,175 – 23,175 – (23,175 ) – 29,804 – 29,804 (4,860 ) (23,175 ) 1,769 Customer deposits: Excluding repos 417,009 (1,523 ) 415,486 (1,205 ) (7,030 ) 407,251 Repos 2,638 – 2,638 – (2,638 ) – 419,647 (1,523 ) 418,124 (1,205 ) (9,668 ) 407,251 Financial liabilities at fair value through profit or loss: Excluding repos 9,499 – 9,499 – – 9,499 Repos 48,670 (7,292 ) 41,378 – (41,378 ) – 58,169 (7,292 ) 50,877 – (41,378 ) 9,499 Derivative financial instruments 73,352 (47,228 ) 26,124 (3,949 ) (17,459 ) 4,716 1 After impairment allowance. 2 The amounts set off in the balance sheet as shown above represent derivatives and repurchase agreements with central clearing houses which meet the criteria for offsetting under IAS 32. 3 The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master netting agreements. The Group holds and provides cash and securities collateral in respect of derivative transactions covered by these agreements. The right to set off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result, these arrangements do not qualify for offsetting under IAS 32. The effects of over collateralisation have not been taken into account in the above table. |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of financial risk management [text block] [Abstract] | |
Disclosure of financial risk management [text block] | NOTE 52: FINANCIAL RISK MANAGEMENT As a bancassurer, financial instruments are fundamental to the Group’s activities and, as a consequence, the risks associated with financial instruments represent a significant component of the risks faced by the Group. The primary risks affecting the Group through its use of financial instruments are: credit risk; market risk, which includes interest rate risk and foreign exchange risk; liquidity risk; capital risk; and insurance risk. Information about the Group’s exposure to each of the above risks and capital can be found on pages 35–103. The following additional disclosures, which provide quantitative information about the risks within financial instruments held or issued by the Group, should be read in conjunction with that earlier information. Market risk (A) INTEREST RATE RISK Interest rate risk arises from the different repricing characteristics of the assets and liabilities. Liabilities are either insensitive to interest rate movements, for example interest free or very low interest customer deposits, or are sensitive to interest rate changes but bear rates which may be varied at the Group’s discretion and that for competitive reasons generally reflect changes in the Bank of England’s base rate. The rates on the remaining deposits are contractually fixed for their term to maturity. Many banking assets are sensitive to interest rate movements; there is a large volume of managed rate assets such as variable rate mortgages which may be considered as a natural offset to the interest rate risk arising from the managed rate liabilities. However, a significant proportion of the Group’s lending assets, for example many personal loans and mortgages, bear interest rates which are contractually fixed. The Group’s risk management policy is to optimise reward whilst managing its market risk exposures within the risk appetite defined by the Board. The largest residual risk exposure arises from balances that are deemed to be insensitive to changes in market rates (including current accounts, a portion of variable rate deposits and investable equity), and is managed through the Group’s structural hedge. The structural hedge consists of longer-term fixed rate assets or interest rate swaps and the amount and duration of the hedging activity is reviewed regularly by the Group Asset and Liability Committee. Further details on the Group market risk policy can be found on page 96. The Group establishes hedge accounting relationships for interest rate risk using cash flow hedges and fair value hedges. The Group is exposed to cash flow interest rate risk on its variable rate loans and deposits together with its floating rate subordinated debt. The derivatives used to manage the structural hedge may be designated into cash flow hedges to manage income statement volatility. The economic items related to the structural hedge, for example current accounts, are not suitable hedge items to be documented into accounting hedge relationships. The Group is exposed to fair value interest rate risk on its fixed rate customer loans, its fixed rate customer deposits and the majority of its subordinated debt, and to cash flow interest rate risk on its variable rate loans and deposits together with its floating rate subordinated debt. The Group applies netting between similar risks before applying hedge accounting. Hedge ineffectiveness arises during the management of interest rate risk due to residual unhedged risk. Sources of ineffectiveness, which the Group may decide to not fully mitigate, can include basis differences, timing differences and notional amount differences. The effectiveness of accounting hedge relationships is assessed between the hedging derivatives and the documented hedged item, which can differ to the underlying economically hedged item. At 31 December 2018 the aggregate notional principal of interest rate swaps designated as fair value hedges was £150,971 million (2017: £109,670 million) with a net fair value asset of £760 million (2017: asset of £738 million) (note 17). The gains on the hedging instruments were £94 million (2017: losses of £420 million). The losses on the hedged items attributable to the hedged risk were £32 million (2017: gains of £484 million). The gains and losses relating to the fair value hedges are recorded in net trading income. In addition the Group has cash flow hedges which are primarily used to hedge the variability in the cost of funding within the commercial business. Note 17 shows when the hedged cash flows are expected to occur and when they will affect income for designated cash flow hedges. The notional principal of the interest rate swaps designated as cash flow hedges at 31 December 2018 was £556,945 million (2017: £549,099 million) with a net fair value liability of £486 million (2017: liability of £456 million) (note 17). In 2018, ineffectiveness recognised in the income statement that arises from cash flow hedges was a loss of £25 million (2017: loss of £21 million). (B) CURRENCY RISK The corporate and retail businesses incur foreign exchange risk in the course of providing services to their customers. All non-structural foreign exchange exposures in the non-trading book are transferred to the trading area where they are monitored and controlled. These risks reside in the authorised trading centres who are allocated exposure limits. The limits are monitored daily by the local centres and reported to the market and liquidity risk function in London. Associated VaR and the closing, average, maximum and minimum are disclosed on page 102. The Group also manages foreign currency risk via cash flow hedge accounting, utilising currency swaps. Risk arises from the Group’s investments in its overseas operations. The Group’s structural foreign currency exposure is represented by the net asset value of the foreign currency equity and subordinated debt investments in its subsidiaries and branches. Gains or losses on structural foreign currency exposures are taken to reserves. The Group ceased all hedging of the currency translation risk of the net investment in foreign operations on 1 January 2018. At 31 December 2017 the Group used foreign currency borrowings with an aggregate principal of £41 million to hedge currency translation risk. In 2017, an ineffectiveness loss of £11 million before tax and £8 million after tax was recognised in the income statement arising from net investment hedges. The Group’s main overseas operations are in the Americas and Europe. Details of the Group’s structural foreign currency exposures, after net investment hedges, are as follows: (C) FUNCTIONAL CURRENCY OF GROUP OPERATIONS 2018 2017 Euro £m US Dollar £m Other non-sterling £m Euro £m US Dollar £m Other non-sterling Gross exposure 112 59 60 73 374 32 Net investment hedges – – – (41 ) – – Total structural foreign currency exposures, after net investment hedges 112 59 60 32 374 32 Credit risk The Group’s credit risk exposure arises in respect of the instruments below and predominantly in the United Kingdom. Information about the Group’s exposure to credit risk, credit risk management, measurement and mitigation can be found on pages 51–65. (A) MAXIMUM CREDIT EXPOSURE The maximum credit risk exposure of the Group in the event of other parties failing to perform their obligations is detailed below. No account is taken of any collateral held and the maximum exposure to loss, which includes amounts held to cover unit-linked and With Profits funds liabilities, is considered to be the balance sheet carrying amount or, for non-derivative off-balance sheet transactions and financial guarantees, their contractual nominal amounts. At 31 December 2018 At 31 December 2017 Maximum exposure £m Offset 2 £m Net exposure £m Maximum exposure £m Offset 2 £m Net exposure £m Loans and advances to banks, net 1 6,283 – 6,283 6,611 – 6,611 Loans and advances to customers, net 1 484,858 (3,241 ) 481,617 472,498 (7,030 ) 465,468 Debt securities, net 1 5,238 – 5,238 3,643 – 3,643 Financial assets at amortised cost 496,379 (3,241 ) 493,138 482,752 (7,030 ) 475,722 Financial assets at fair value through other comprehensive income/available-for-sale financial assets 3 24,794 – 24,794 40,901 – 40,901 Financial assets at fair value through profit or loss: 3,4 Loans and advances 40,876 – 40,876 31,590 – 31,590 Debt securities, treasury and other bills 40,168 – 40,168 45,198 – 45,198 81,044 – 81,044 76,788 – 76,788 Derivative assets 23,595 (14,327 ) 9,268 25,834 (13,049 ) 12,785 Assets arising from reinsurance contracts held 749 – 749 602 – 602 Off-balance sheet items: Acceptances and endorsements 194 – 194 71 – 71 Other items serving as direct credit substitutes 632 – 632 740 – 740 Performance bonds and other transaction-related contingencies 2,425 – 2,425 2,300 – 2,300 Irrevocable commitments and guarantees 64,884 – 64,884 65,946 – 65,946 68,135 – 68,135 69,057 – 69,057 694,696 (17,568 ) 677,128 695,934 (20,079 ) 675,855 1 Amounts shown net of related impairment allowances. 2 Offset items comprise deposit amounts available for offset, and amounts available for offset under master netting arrangements, that do not meet the criteria under IAS 32 to enable loans and advances and derivative assets respectively to be presented net of these balances in the financial statements. 3 Excluding equity shares. 4 Includes assets within the Group’s unit-linked funds for which credit risk is borne by the policyholders and assets within the Group’s With-Profits funds for which credit risk is largely borne by the policyholders. Consequently, the Group has no significant exposure to credit risk for such assets which back related contract liabilities. (B) CONCENTRATIONS OF EXPOSURE The Group’s management of concentration risk includes single name, industry sector and country limits as well as controls over the Group’s overall exposure to certain products. Further information on the Group’s management of this risk is included within Credit risk mitigation, Risk management on page 51. At 31 December 2018 the most significant concentrations of exposure were in mortgages (comprising 61 per cent of total loans and advances to customers) and to financial, business and other services (comprising 16 per cent of the total). 31 December 2018 £m 1 January 2018 £m 31 December 2017 £m Agriculture, forestry and fishing 7,314 7,074 7,461 Energy and water supply 1,517 1,384 1,609 Manufacturing 8,260 7,886 7,886 Construction 4,684 4,378 4,428 Transport, distribution and hotels 14,113 14,074 14,074 Postal and telecommunications 2,711 2,148 2,148 Property companies 28,451 27,631 30,980 Financial, business and other services 77,505 50,707 57,006 Personal: Mortgages 297,498 304,515 304,665 Other 28,699 28,757 28,757 Lease financing 1,822 2,094 2,094 Hire purchase 15,434 13,591 13,591 Total loans and advances to customers before allowance for impairment losses 488,008 464,239 474,699 Allowance for impairment losses (note 20) (3,150 ) (3,223 ) (2,201 ) Total loans and advances to customers 484,858 461,016 472,498 Following the reduction in the Group’s non-UK activities, an analysis of credit risk exposures by geographical region has not been provided. (C) CREDIT QUALITY OF ASSETS LOANS AND ADVANCES The analysis of lending has been prepared based on the division in which the asset is held; with the business segment in which the exposure is recorded reflected in the ratings system applied. The internal credit ratings systems used by the Group differ between Retail and Commercial, reflecting the characteristics of these exposures and the way that they are managed internally; these credit ratings are set out below. All probabilities of default (PDs) include forward-looking information and are based on 12 month values, with the exception of credit impaired. Retail Corporate Grade IFRS 9 PD% Grade IFRS 9 PD% Good quality 1–6 0.00–4.50 1–10 0.00–0.50 Satisfactory quality 7–9 4.51–14.00 11–14 0.51–3.00 Lower quality 10 14.01–20.00 15–18 3.01–20.00 Below standard 11–13 20.01–99.99 19 20.01–99.99 Credit impaired 14 100.00 20–23 100.00 Loans and advances to customers Gross carrying amount Loans and advances to banks £m Retail – mortgages £m Retail – other £m Commercial £m Other £m Total £m At 31 December 2018 Stage 1 Good quality 6,177 257,740 44,314 65,089 44,369 411,512 Satisfactory quality 105 57 2,562 25,472 – 28,091 Lower quality – – 72 1,441 – 1,513 Below standard, but not credit-impaired – – 415 – – 415 6,282 257,797 47,363 92,002 44,369 441,531 Stage 2 Good quality 3 10,784 2,737 100 6 13,627 Satisfactory quality – 1,709 1,158 3,450 6 6,323 Lower quality – 262 285 2,988 – 3,535 Below standard, but not credit-impaired – 899 907 54 – 1,860 3 13,654 5,087 6,592 12 25,345 Stage 3 Credit-impaired – 1,393 997 3,296 55 5,741 Purchased or originated credit-impaired Credit-impaired – 15,391 – – – 15,391 Total 6,285 288,235 53,447 101,890 44,436 488,008 Expected credit losses Stage 1 Good quality 2 37 279 32 43 391 Satisfactory quality – – 65 50 – 115 Lower quality – – 4 11 – 15 Below standard, but not credit-impaired – – 4 – – 4 2 37 352 93 43 525 Stage 2 Good quality – 141 89 1 1 232 Satisfactory quality – 34 100 86 6 226 Lower quality – 9 40 231 – 280 Below standard, but not credit-impaired – 42 207 7 – 256 – 226 436 325 7 994 Stage 3 Credit-impaired – 118 366 1,058 11 1,553 Purchased or originated credit-impaired Credit-impaired – 78 – – – 78 Total 2 459 1,154 1,476 61 3,150 Stage 3 assets include balances of approximately £250 million (with outstanding amounts due of approximately £2,200 million) which have been subject to a partial write off and where the Group continues to enforce recovery action. Stage 2 and Stage 3 assets with a carrying amount of approximately £1,000 million were modified during the year. No material gain or loss was recognised by the Group. Loan commitments and financial guarantees Retail – mortgages £m Retail – other £m Commercial £m Other £m Total £m At 31 December 2018 Stage 1 Good quality 12,024 60,379 51,632 246 124,281 Satisfactory quality 2 532 6,501 – 7,035 Lower quality – 10 126 – 136 Below standard, but not credit-impaired – 363 31 – 394 12,026 61,284 58,290 246 131,846 Stage 2 Good quality 19 1,858 – – 1,877 Satisfactory quality 1 156 693 – 850 Lower quality – 27 297 – 324 Below standard, but not credit-impaired – 50 11 – 61 20 2,091 1,001 – 3,112 Stage 3 Credit-impaired 5 39 6 – 50 Purchased or originated credit-impaired Credit-impaired 90 – – – 90 Total 12,141 63,414 59,297 246 135,098 Expected credit losses Stage 1 Good quality 1 98 9 1 109 Satisfactory quality – 5 7 – 12 Lower quality – – 1 – 1 Below standard, but not credit-impaired – – 1 – 1 1 103 18 1 123 Stage 2 Good quality – 28 – – 28 Satisfactory quality – 10 7 – 17 Lower quality – 3 5 – 8 Below standard, but not credit-impaired – 10 1 – 11 – 51 13 – 64 Stage 3 Credit-impaired – – 6 – 6 Total 1 154 37 1 193 Loans and advances to customers Gross carrying amount Loans and advances to banks £m Retail – mortgages £m Retail – other £m Commercial £m Other £m Total £m At 1 January 2018 Stage 1 Good quality 4,245 251,663 40,951 64,207 17,276 374,097 Satisfactory quality – 44 3,203 25,577 – 28,824 Lower quality – – 127 557 – 684 Below standard, but not credit-impaired – – 276 – – 276 4,245 251,707 44,557 90,341 17,276 403,881 Stage 2 Good quality 2 17,599 2,711 210 67 20,587 Satisfactory quality – 1,359 1,377 4,470 4,094 11,300 Lower quality – 290 299 2,616 – 3,205 Below standard, but not credit-impaired – 861 823 469 – 2,153 2 20,109 5,210 7,765 4,161 37,245 Stage 3 Credit-impaired – 1,232 873 2,714 321 5,140 Purchased or originated credit-impaired Credit-impaired – 17,973 – – – 17,973 Total 4,247 291,021 50,640 100,820 21,758 464,239 Expected credit losses Stage 1 Good quality 1 30 276 35 72 413 Satisfactory quality – – 104 60 – 164 Lower quality – – 9 6 – 15 Below standard, but not credit-impaired – – 5 – – 5 1 30 394 101 72 597 Stage 2 Good quality – 169 92 1 16 278 Satisfactory quality – 24 123 134 110 391 Lower quality – 7 42 183 – 232 Below standard, but not credit-impaired – 36 147 64 – 247 – 236 404 382 126 1,148 Stage 3 Credit-impaired – 86 313 957 90 1,446 Purchased or originated credit-impaired Credit-impaired – 32 – – – 32 Total 1 384 1,111 1,440 288 3,223 Loan commitments and financial guarantees Retail – mortgages £m Retail – other £m Commercial £m Other £m Total £m At 1 January 2018 Stage 1 Good quality 11,690 60,305 53,335 287 125,617 Satisfactory quality – 801 5,463 – 6,264 Lower quality – 26 226 – 252 Below standard, but not credit-impaired – 7 – – 7 11,690 61,139 59,024 287 132,140 Stage 2 Good quality 50 1,908 59 – 2,017 Satisfactory quality – 221 577 – 798 Lower quality – 32 347 – 379 Below standard, but not credit-impaired – 45 76 – 121 50 2,206 1,059 – 3,315 Stage 3 Credit-impaired – 61 – – 61 Purchased or originated credit-impaired Credit-impaired 113 – – – 113 Total 11,853 63,406 60,083 287 135,629 Expected credit losses Stage 1 Good quality 1 91 11 2 105 Satisfactory quality – 19 19 – 38 Lower quality – 2 1 – 3 Below standard, but not credit-impaired – 1 – – 1 1 113 31 2 147 Stage 2 Good quality – 37 – – 37 Satisfactory quality – 15 28 – 43 Lower quality – 4 14 – 18 Below standard, but not credit-impaired – 20 8 – 28 – 76 50 – 126 Total 1 189 81 2 273 Loans and advances carried at fair value through profit or loss comprise £27,734 million (1 January 2018: £31,590 million) of trading assets of which £27,685 million (1 January 2018: £31,548 million) have a good quality rating and £49 million (1 January 2018: £42 million) have a satisfactory rating; and £13,142 million (1 January 2018: £14,016 million) of other assets mandatorily held at fair value through profit or loss of which £12,509 million (1 January 2018: £13,338 million) is viewed by the business as investment grade. DEBT SECURITIES HELD AT AMORTISED COST An analysis by credit rating of the Group’s debt securities held at amortised cost is provided below: 31 December 2018 1 January 2018 Investment grade 1 £m Other 2 £m Total Investment grade 1 £m Other 2 £m Total Asset-backed securities: Mortgage-backed securities 3,263 9 3,272 2,265 – 2,265 Other asset-backed securities 763 17 780 1,025 7 1,032 4,026 26 4,052 3,290 7 3,297 Corporate and other debt securities 1,176 16 1,192 27 16 43 Gross exposure 5,202 42 5,244 3,317 23 3,340 Allowance for impairment losses (6 ) (26 ) Total debt securities held at amortised cost 5,238 3,314 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (31 December 2018: £6 million; 1 January 2018: £nil) and not rated (31 December 2018: £36 million; 1 January 2018: £23 million). FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME/AVAILABLE-FOR-SALE FINANCIAL ASSETS (EXCLUDING EQUITY SHARES) An analysis of the Group’s financial assets at fair value through other comprehensive income (available-for-sale financial assets at 31 December 2017) is included in note 21. The credit quality of the Group’s financial assets at fair value through other comprehensive income (available-for-sale financial assets at 31 December 2017) (excluding equity shares) is set out below: 31 December 2018 1 January 2018 Investment grade 1 £m Other 2 £m Total Investment grade 1 £m Other 2 £m Total Debt securities: Government securities 18,971 – 18,971 34,708 – 34,708 Bank and building society certificates of deposit 118 – 118 167 – 167 Asset-backed securities: Mortgage-backed securities 120 – 120 2,381 – 2,381 Other asset-backed securities – 131 131 358 109 467 120 131 251 2,739 109 2,848 Corporate and other debt securities 4,934 217 5,151 4,250 365 4,615 Total debt securities 24,143 348 24,491 41,864 474 42,338 Treasury and other bills 303 – 303 – – – Total financial assets at fair value through other comprehensive income/available-for-sale financial assets 24,446 348 24,794 41,864 474 42,338 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (31 December 2018: £85 million; 1 January 2018: £98 million) and not rated (31 December 2018: £263 million; 1 January 2018: £376 million). DEBT SECURITIES, TREASURY AND OTHER BILLS HELD AT FAIR VALUE THROUGH PROFIT OR LOSS An analysis of the Group’s financial assets at fair value through profit or loss is included in note 16. The credit quality of the Group’s debt securities, treasury and other bills held at fair value through profit or loss is set out below: 2018 2017 Investment grade 1 £m Other 2 £m Total Investment grade 1 £m Other 2 £m Total Debt securities, treasury and other bills held at fair value through profit or loss Trading assets: Government securities 7,192 – 7,192 9,833 – 9,833 Asset-backed securities: Mortgage-backed securities 10 – 10 84 105 189 Other asset-backed securities 63 – 63 95 – 95 73 – 73 179 105 284 Corporate and other debt securities 228 19 247 469 54 523 Total held as trading assets 7,493 19 7,512 10,481 159 10,640 Other assets held at fair value through profit or loss: Government securities 10,903 – 10,903 12,180 7 12,187 Other public sector securities 2,059 5 2,064 1,519 8 1,527 Bank and building society certificates of deposit 1,105 – 1,105 222 – 222 Asset-backed securities: Mortgage-backed securities 208 7 215 208 3 211 Other asset-backed securities 283 3 286 924 2 926 491 10 501 1,132 5 1,137 Corporate and other debt securities 16,141 1,922 18,063 17,343 2,124 19,467 Total debt securities held at fair value through profit or loss 30,699 1,937 32,636 32,396 2,144 34,540 Treasury bills and other bills 20 – 20 18 – 18 Total other assets held at fair value through profit or loss 30,719 1,937 32,656 32,414 2,144 34,558 Total held at fair value through profit or loss 38,212 1,956 40,168 42,895 2,303 45,198 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2018: £411 million; 2017: £331 million) and not rated (2018: £1,545 million; 2017: £1,972 million). Credit risk in respect of trading and other financial assets at fair value through profit or loss held within the Group’s unit-linked funds is borne by the policyholders and credit risk in respect of with-profits funds is largely borne by the policyholders. Consequently, the Group has no significant exposure to credit risk for such assets which back those contract liabilities. DERIVATIVE ASSETS An analysis of derivative assets is given in note 17. The Group reduces exposure to credit risk by using master netting agreements and by obtaining collateral in the form of cash or highly liquid securities. In respect of the Group’s net credit risk relating to derivative assets of £9,268 million (2017: £12,785 million), cash collateral of £6,039 million (2017: £5,419 million) was held and a further 213 million was due from OECD banks (2017: £275 million). 2018 2017 Investment grade 1 £m Other 2 £m Total Investment grade 1 £m Other 2 £m Total Trading and other 19,797 2,235 22,032 21,742 2,211 23,953 Hedging 1,534 29 1,563 1,874 7 1,881 Total derivative financial instruments 21,331 2,264 23,595 23,616 2,218 25,834 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2018: £1,920 million; 2017: £1,878 million) and not rated (2018: £344 million; 2017: £340 million). FINANCIAL GUARANTEES AND IRREVOCABLE LOAN COMMITMENTS Financial guarantees represent undertakings that the Group will meet a customer’s obligation to third parties if the customer fails to do so. Commitments to extend credit represent unused portions of authorisations to extend credit in the form of loans, guarantees or letters of credit. The Group is theoretically exposed to loss in an amount equal to the total guarantees or unused commitments, however, the likely amount of loss is expected to be significantly less; most commitments to extend credit are contingent upon customers maintaining specific credit standards. (D) COLLATERAL HELD AS SECURITY FOR FINANCIAL ASSETS A general description of collateral held as security in respect of financial instruments is provided on page 52. The Group holds collateral against loans and advances and irrevocable loan commitments; qualitative and, where appropriate, quantitative information is provided in respect of this collateral below. Collateral held as security for financial assets at fair value through profit or loss and for derivative assets is also shown below. The Group holds collateral in respect of loans and advances to banks and customers as set out below. The Group does not hold collateral against debt securities, comprising asset-backed securities and corporate and other debt securities, which are classified as financial assets held at amortised cost. LOANS AND ADVANCES TO BANKS There were reverse repurchase agreements which are accounted for as collateralised loans within loans and advances to banks with a carrying value of £461 million (2017: £771 million), against which the Group held collateral with a fair value of £481 million (2017: £796 million). These transactions were generally conducted under terms that are usual and customary for standard secured lending activities. LOANS AND ADVANCES TO CUSTOMERS Retail lending Mortgages An analysis by loan-to-value ratio of the Group’s residential mortgage lending is provided below. The value of collateral used in determining the loan-to-value ratios has been estimated based upon the last actual valuation, adjusted to take into account subsequent movements in house prices, after making allowances for indexation error and dilapidations. In some circumstances, where the discounted value of the estimated net proceeds from the liquidation of collateral (i.e. net of costs, expected haircuts and anticipated changes in the value of the collateral to the point of sale) is greater than the estimated exposure at default, no credit losses are expected and no ECL allowance is recognised. Stage 1 Stage 2 Stage 3 Purchased or Total gross At 31 December 2018 Less than 70 per cent 186,974 10,853 1,058 11,658 210,543 70 per cent to 80 per cent 38,865 1,704 176 1,864 42,609 80 per cent to 90 per cent 26,353 837 90 1,024 28,304 90 per cent to 100 per cent 5,136 154 33 349 5,672 Greater than 100 per cent 469 106 36 496 1,107 Total 257,797 13,654 1,393 15,391 288,235 Neither past due Past due but not Impaired Gross At 31 December 2017 Less than 70 per cent 211,366 4,211 2,348 217,925 70 per cent to 80 per cent 41,323 754 544 42,621 80 per cent to 90 per cent 22,421 422 398 23,241 90 per cent to 100 per cent 5,036 145 209 5,390 Greater than 100 per cent 1,326 95 387 1,808 Total 281,472 5,627 3,886 290,985 Other The majority of non-mortgage retail lending is unsecured. At 31 December 2018, Stage 3 non-mortgage lending amounted to £631 million, net of an impairment allowance of £366 million (2017: impaired non-mortgage lending amounted to £817 million, net of an impairment allowance of £542 million). Stage 1 and Stage 2 non-mortgage retail lending amounted to £52,450 million (2017: unimpaired non-mortgage lending amounted to £49,482 million). Lending decisions are predominantly based on an obligor’s ability to repay from normal business operations rather than reliance on the disposal of any security provided. Collateral values are rigorously assessed at the time of loan origination and are thereafter monitored in accordance with business unit credit policy. The Group credit risk disclosures for unimpaired non-mortgage retail lending report assets gross of collateral and therefore disclose the maximum loss exposure. The Group believes that this approach is appropriate. Commercial lending Reverse repurchase transactions At 31 December 2018 there were reverse repurchase agreements which were accounted for as collateralised loans with a carrying value of £40,483 million (2017: £16,832 million), against which the Group held collateral with a fair value of £42,339 million (2017: £17,122 million), all of which the Group was able to repledge. Included in these amounts were collateral balances in the form of cash provided in respect of reverse repurchase agreements of £nil (2017: £nil). These transactions were generally conducted under terms that are usual and customary for standard secured lending activities. Stage 3 secured lending The value of collateral is re-evaluated and its legal soundness re-assessed if there is observable evidence of distress of the borrower; this evaluation is used to determine potential loss allowances and management’s strategy to try to either repair the business or recover the debt. At 31 December 2018, Stage 3 secured commercial lending amounted to £658 million, net of an impairment allowance of £215 million (2017: impaired secured commercial lending amounted to £698 million, net of an impairment allowance of £242 million). The fair value of the collateral held in respect of impaired secured commercial lending was £590 million (2017: £797 million). In determining the fair value of collateral, no specific amounts have been attributed to the costs of realisation. For the purposes of determining the total collateral held by the Group in respect of impaired secured commercial lending, the value of collateral for each loan has been limited to the principal amount of the outstanding advance in order to eliminate the effects of any over-collateralisation and to provide a clearer representation of the Group’s exposure. Stage 3 secured commercial lending and associated collateral relates to lending to property companies and to customers in the financial, business and other services; transport, distribution and hotels; and construction industries. Stage 1 and Stage 2 secured lending For Stage 1 and Stage 2 secured commercial lending, the Group reports assets gross of collateral and therefore discloses the maximum loss exposure. The Group believes that this approach is appropriate as collateral values at origination and during a period of good performance may not be representative of the value of collateral if the obligor enters a distressed state. Stage 1 and Stage 2 secured commercial lending is predominantly managed on a cash flow basis. On occasion, it may include an assessment of underlying collateral, although, for Stage 3 lending, this will not always involve assessing it on a fair value basis. No aggregated collateral information for the entire unimpaired secured commercial lending portfolio is provided to key management personnel. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (EXCLUDING EQUITY SHARES) Included in financial assets at fair value through profit or loss are reverse repurchase agreements treated as collateralised loans with a carrying value of £28,356 million (2017: £31,590 million). Collateral is held with a fair value of £36,101 million (2017: £39,099 million), all of which the Group is able to repledge. At 31 December 2018, £31,013 million had been repledged (2017: £31,281 million). In addition, securities held as collateral in the form of stock borrowed amounted to £51,202 million (2017: £61,469 million). Of this amount, £49,233 million (2017: £44,432 million) had been resold or repledged as collateral for the Group’s own transactions. These transactions were generally conducted under terms that are usual and customary for standard secured lending activities. DERIVATIVE ASSETS, AFTER OFFSETTING OF AMOUNTS UNDER MASTER NETTING ARRANGEMENTS The Group reduces exposure to credit risk by using master netting agreements and by obtaining collateral in the form of cash or highly liquid securities. In respect of the net derivative assets after offsetting of amounts under master netting arrangements of £14,327 million (2017: £12,785 million), cash collateral of £6,039 million (2017: £5,419 million) was held. IRREVOCABLE LOAN COMMITMENTS AND OTHER CREDIT-RELATED CONTINGENCIES At 31 December 2018, the Group held irrevocable loan commitments and other credit-related contingencies of £62,640 million (2017: £63,237 million). Collateral is held as security, in the event that lending is drawn down, on £10,661 million (2017: £10,956 million) of these balances. COLLATERAL REPOSSESSED During the year, £245 million of collateral was repossessed (2017: £297 million), consisting primarily of residential property. In respect of retail portfolios, the Group does not take physical possession of properties or other assets held as collateral and uses external agents to realise the value as soon as practicable, generally at auction, to settle indebtedness. Any surplus funds are returned to the borrower or are otherwise dealt with in accordance with appropriate insolvency regulations. In certain circumstances the Group takes physical possession of assets held as collateral against commercial lending. In |
CONSOLIDATED CASH FLOW STATEM_2
CONSOLIDATED CASH FLOW STATEMENT | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of cash flow statement [text block] [Abstract] | |
Disclosure of cash flow statement [text block] | NOTE 53: CONSOLIDATED CASH FLOW STATEMENT (A) Change in operating assets 2018 £m 2017 2016 Change in financial assets held at amortised cost (27,038 ) (24,747 ) 710 Change in derivative financial instruments and financial assets at fair value through profit or loss 22,046 9,916 (13,889 ) Change in other operating assets 520 (661 ) 961 Change in operating assets (4,472 ) (15,492 ) (12,218 ) (B) Change in operating liabilities 2018 2017 2016 £m £m £m Change in deposits from banks 515 13,415 (654 ) Change in customer deposits (322 ) 2,913 (3,690 ) Change in debt securities in issue 18,579 (3,600 ) (6,552 ) Change in derivative financial instruments and liabilities at fair value through profit or loss (24,606 ) (12,481 ) 11,265 Change in investment contract liabilities (1,594 ) (4,665 ) (2,665 ) Change in other operating liabilities (1,245 ) 136 (363 ) Change in operating liabilities (8,673 ) (4,282 ) (2,659 ) (C) Non-cash and other items 2018 £m 2017 2016 Depreciation and amortisation 2,405 2,370 2,380 Revaluation of investment properties (139 ) (230 ) 83 Allowance for loan losses 1,024 691 592 Write-off of allowance for loan losses, net of recoveries (1,025 ) (1,061 ) (1,272 ) Impairment charge relating to undrawn balances (73 ) (9 ) (13 ) Impairment of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) (14 ) 6 173 Change in insurance contract liabilities (4,547 ) 9,168 14,084 Payment protection insurance provision 750 1,300 1,350 Other regulatory provisions 600 865 1,085 Other provision movements (518 ) (8 ) (27 ) Net charge (credit) in respect of defined benefit schemes 405 369 287 Impact of consolidation and deconsolidation of OEICs 1 – – (3,157 ) Unwind of discount on impairment allowances (44 ) (23 ) (32 ) Foreign exchange impact on balance sheet 2 191 125 (155 ) Loss on ECN transactions – – 721 Interest expense on subordinated liabilities 1,388 1,436 1,864 Loss (profit) on disposal of businesses – – – Net gain on sale of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) (275 ) (446 ) (575 ) Hedging valuation adjustments on subordinated debt (429 ) (327 ) 153 Value of employee services 260 414 309 Transactions in own shares 40 (411 ) (175 ) Accretion of discounts and amortisation of premiums and issue costs 1,947 1,701 465 Share of post-tax results of associates and joint ventures (9 ) (6 ) 1 Transfers to income statement from reserves (701 ) (650 ) (557 ) Profit on disposal of tangible fixed assets (104 ) (120 ) (93 ) Other non-cash items (34 ) – (17 ) Total non-cash items 1,098 15,154 17,474 Contributions to defined benefit schemes (868 ) (587 ) (630 ) Payments in respect of payment protection insurance provision (2,104 ) (1,657 ) (2,200 ) Payments in respect of other regulatory provisions (1,032 ) (928 ) (761 ) Other 14 – 2 Total other items (3,990 ) (3,172 ) (3,589 ) Non-cash and other items (2,892 ) 11,982 13,885 1 These OEICs (Open-ended investment companies) are mutual funds which are consolidated if the Group manages the funds and also has a sufficient beneficial interest. The population of OEICs to be consolidated varies at each reporting date as external investors acquire and divest holdings in the various funds. The consolidation of these funds is effected by the inclusion of the fund investments and a matching liability to the unitholders; and changes in funds consolidated represent a non-cash movement on the balance sheet. 2 When considering the movement on each line of the balance sheet, the impact of foreign exchange rate movements is removed in order to show the underlying cash impact. (D) Analysis of cash and cash equivalents as shown in the balance sheet 2018 £m 2017 2016 Cash and balances at central banks 54,663 58,521 47,452 Less: mandatory reserve deposits 1 (2,553 ) (957 ) (914 ) 52,110 57,564 46,538 Loans and advances to banks 6,283 6,611 26,902 Less: amounts with a maturity of three months or more (3,169 ) (3,193 ) (11,052 ) 3,114 3,418 15,850 Total cash and cash equivalents 55,224 60,982 62,388 1 Mandatory reserve deposits are held with local central banks in accordance with statutory requirements; these deposits are not available to finance the Group’s day-to-day operations. Included within cash and cash equivalents at 31 December 2018 is £40 million (31 December 2017: £2,322 million; 1 January 2018 £48 million; 31 December 2016: £14,475 million) held within the Group’s long-term insurance and investments businesses, which is not immediately available for use in the business. (E) Acquisition of group undertakings and businesses 2018 £m 2017 2016 Net assets acquired: Cash and cash equivalents – 123 – Loans and advances to customers – 7,811 – Available-for-sale financial assets – 16 – Intangible assets 21 702 – Property, plant and equipment – 6 – Other assets 6 414 – Deposits from banks 1 – (6,431 ) – Other liabilities (1 ) (927 ) – Goodwill arising on acquisition – 302 – Cash consideration 26 2,016 – Less: Cash and cash equivalents acquired – (123 ) – Net cash outflow arising from acquisition of subsidiaries and businesses 26 1,893 – Acquisition of and additional investment in joint ventures 23 30 20 Net cash outflow from acquisitions in the year 49 1,923 20 1 Upon acquisition in 2017, the funding of MBNA was assumed by Lloyds Bank plc. (F) Disposal and closure of group undertakings and businesses 2018 £m 2017 2016 Loans and advances to customers – 342 – Non-controlling interests – (242 ) – Other net assets (liabilities) 1 29 5 1 129 5 Net assets 1 129 5 Non-cash consideration received – – – (Loss) profit on sale – – – Cash consideration received on losing control of group undertakings and businesses 1 129 5 Cash and cash equivalents disposed – – – Net cash inflow (outflow) 1 129 5 |
ADOPTION OF IFRS 9 AND IFRS 15
ADOPTION OF IFRS 9 AND IFRS 15 | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of initial application of standards or interpretations [text block] [Abstract] | |
Disclosure of initial application of standards or interpretations [text block] | NOTE 54: ADOPTION OF IFRS 9 AND IFRS 15 The following table summarises the adjustments arising on the adoption of IFRS 9 and IFRS 15 (see below) to the Group’s balance sheet as at 1 January 2018. As at IFRS 9: IFRS 9: IFRS 15 Adjusted as at 1 January 2018 £m Assets Cash and balances at central banks 58,521 – – – 58,521 Items in course of collection from banks 755 – – – 755 Financial assets at fair value through profit or loss 162,878 13,130 – – 176,008 Derivative financial instruments 25,834 (360 ) – – 25,474 Loans and advances to banks 6,611 (2,364 ) (1 ) – 4,246 Loans and advances to customers 472,498 (10,460 ) (1,022 ) – 461,016 Debt securities 3,643 (329 ) – – 3,314 Financial assets at amortised cost 482,752 (13,153 ) (1,023 ) – 468,576 Financial assets at fair value through other comprehensive income 42,917 – – 42,917 Available-for-sale financial assets 42,098 (42,098 ) – – Goodwill 2,310 – – – 2,310 Value of in-force business 4,839 – – – 4,839 Other intangible assets 2,835 – – – 2,835 Property, plant and equipment 12,727 – – – 12,727 Current tax recoverable 16 – – – 16 Deferred tax assets 2,284 22 300 3 2,609 Retirement benefit assets 723 – – – 723 Other assets 13,537 (655 ) (10 ) – 12,872 Total assets 812,109 (197 ) (733 ) 3 811,182 Equity and liabilities Liabilities Deposits from banks 29,804 – – – 29,804 Customer deposits 418,124 – – – 418,124 Items in course of transmission to banks 584 – – – 584 Financial liabilities at fair value through profit or loss 50,877 58 – – 50,935 Derivative financial instruments 26,124 – – – 26,124 Notes in circulation 1,313 – – – 1,313 Debt securities in issue 72,450 (48 ) – – 72,402 Liabilities arising from insurance contracts and participating investment contracts 103,413 – – – 103,413 Liabilities arising from non-participating investment contracts 15,447 – – – 15,447 Other liabilities 20,730 – (3 ) 14 20,741 Retirement benefit obligations 358 – – – 358 Current tax liabilities 274 – – – 274 Other provisions 5,546 – 243 – 5,789 Subordinated liabilities 17,922 – – – 17,922 Total liabilities 762,966 10 240 14 763,230 Equity Shareholders’ equity 43,551 (207 ) (973 ) (11 ) 42,360 Other equity instruments 5,355 – – – 5,355 Non-controlling interests 237 – – – 237 Total equity 49,143 (207 ) (973 ) (11 ) 47,952 Total equity and liabilities 812,109 (197 ) (733 ) 3 811,182 IFRS 9 Financial Instruments Impairment The Group adopted IFRS 9 from 1 January 2018. In accordance with the transition requirements of IFRS 9, comparative information for 2017 has not been restated and transitional adjustments have been accounted for through retained earnings as at 1 January 2018, the date of initial application; and as a result shareholders’ equity reduced by £1,180 million, driven by the effects of additional impairment provisions following the implementation of the expected credit loss methodology and measurement adjustments following the reclassification of certain financial assets to be measured at fair value rather than amortised cost. It is not practicable to quantify the impact of adoption of IFRS 9 on the results for the current year. The following table summarises the impact of the transitional adjustment on the Group’s loss allowances at 1 January 2018: IAS 39 allowance Transitional IFRS 9 loss allowance at 1 January 2018 £m Loans and advances to banks – 1 1 Loans and advances to customers 2,201 1,022 3,223 Debt securities 26 – 26 Other – 10 10 2,227 1,033 3,260 Provisions for undrawn commitments and financial guarantees 30 243 273 Total loss allowance 2,257 1,276 3,533 There were no impacts on the Group’s loss allowances as a result of changes in the measurement category of financial assets at 1 January 2018. The net impact of IFRS 9 on transition was an increase in impairment allowances of £1,276 million which is analysed as follows: IAS 39 12-month Lifetime Undrawn Multiple Total £m Retail Secured (561 ) 24 371 1 226 61 Unsecured (133 ) 279 251 161 8 566 UK Motor Finance (99 ) 112 72 1 1 87 Other (30 ) 30 29 13 4 46 (823 ) 445 723 176 239 760 Commercial Banking (190 ) 108 330 60 63 371 Insurance and Wealth (5 ) 15 6 – 1 17 Other (115 ) 51 144 – 48 128 Total (1,133 ) 619 1,203 236 351 1,276 The key drivers for the provision movements from IAS 39 to IFRS 9 for the Group are as follows: – Latent risk: under IAS 39 provisions were held against losses that had been incurred at the balance sheet date but had either not been specifically identified or not been adequately captured in the provisioning models. Under IFRS 9 assets which had not defaulted are allocated to Stages 1 and 2 and an appropriate expected credit loss allowance made. – 12-month expected loss: IFRS 9 requires that for financial assets where there has been no significant increase in credit risk since origination (Stage 1) a loss allowance equivalent to 12-month expected credit losses should be held. Under IAS 39 these balances would not be specifically provided against although a provision for latent risk would be held. – Lifetime expected credit loss: financial assets that have experienced a significant increase in credit risk since initial recognition (Stage 2) and credit impaired assets (Stage 3) are required to carry a lifetime expected credit loss allowance. Under IAS 39, Stage 2 assets were treated as performing and consequently no specific impairment provision was held, although a proportion of the provision held against latent risks was held against these assets. Assets treated as impaired under IAS 39 carried a provision reducing the carrying value to the estimated recoverable amount. – Undrawn commitments: IFRS 9 requires a loss allowance to be held against undrawn lending commitments. Previously, an impairment provision would only have been held in the event that the commitment was irrevocable and a loss event had occurred. – Multiple economic scenarios: IFRS 9 requires that the expected credit loss allowance should reflect an unbiased range of possible future economic outcomes. This was not required under IAS 39. Reclassifications On transition to IFRS 9, the Group assessed its business models in order to determine the appropriate classification. The Retail and Commercial Banking loan books are generally held to collect contractual cash flows until the lending matures and met the criteria to remain at amortised cost. Certain portfolios which are subject to higher levels of sales were reclassified as fair value through other comprehensive income. Within the Group’s insurance business, assets are managed on a fair value basis and so continued to be accounted for at fair value through profit or loss. IFRS 9 reclassification to IAS 39 carrying At fair value At fair value Total IFRS 9 At Financial assets Financial assets at fair value through profit or loss 162,878 14,447 (1,139 ) 13,308 (178 ) 176,008 Derivatives 25,834 (360 ) – (360 ) – 25,474 Loans and advances to banks 6,611 (2,274 ) (90 ) (2,364 ) – 4,247 Loans and advances to customers 472,498 (10,474 ) – (10,474 ) 14 462,038 Debt securities 3,643 – (329 ) (329 ) – 3,314 Financial assets at amortised cost 482,752 (12,748 ) (419 ) (13,167 ) 14 469,599 Financial assets at fair value through other comprehensive income – 42,972 42,972 (55 ) 42,917 Available-for-sale financial assets 42,098 (684 ) (41,414 ) (42,098 ) – – Other assets 13,537 (655 ) – (655 ) – 12,882 Total 727,099 – – – (219 ) 726,880 Financial liabilities Financial liabilities at fair value through profit or loss 50,877 48 – 48 10 50,935 Debt securities in issue 72,450 (48 ) – (48 ) – 72,402 Total 123,327 – – – 10 123,337 Loans and advances accounted for at amortised cost reduced by £13,167 million largely driven by: – lending assets transferred from the banking business to the insurance business in recent years totalling £6,882 million which had been accounted for at amortised cost in the Group’s accounts under IAS 39. Upon implementation of IFRS 9, these assets were been designated at FVTPL, in common with other assets within the insurance business, as they are backing insurance and investment contract liabilities which either have cash flows that are contractually based upon the performance of the assets or are contracts whose measurement takes account of current market conditions and where significant measurement inconsistencies would otherwise arise. Loans and advances to banks of £2,274 million were transferred to FVTPL for similar reasons. – assets held by the Commercial business totalling £3,116 million were reclassified to FVTPL having not met the requirements of the SPPI test. These assets are principally holdings of notes issued by securitisation vehicles. Whilst the credit quality of these notes is generally good, there is a contractual linkage to the underlying asset pools which are exposed to residual value risk. – A further £847 million of Commercial lending assets were reclassified following changes in the business model. At 1 January 2018, the Group was required to reclassify certain assets from fair value through profit or loss to fair value through other comprehensive income; these assets were sold during the course of the year. If these assets had not been reclassified, the Group would have recognised a loss of £0.2 million in the period before being sold. The effective interest rate applied to these assets on 1 January 2018 was 1.97 per cent, and the interest revenue recognised prior to the sale was £20 million. Remeasurements There has been a pre-tax charge of £229 million (£207 million net of tax) arising from the reclassification of financial assets and liabilities to fair value through profit or loss and fair value through other comprehensive income and consequent remeasurement to fair value. IFRS 15 Revenue from Contracts with Customers The Group has adopted IFRS 15 from 1 January 2018 and in nearly all cases the Group’s existing accounting policy was consistent with the requirements of IFRS 15; however, certain income streams within the Group’s car leasing business are now deferred, resulting in an additional £14 million being recognised as deferred income at 1 January 2018 with a corresponding debit of £11 million, net of tax, to shareholders’ equity. As permitted by the transition options under IFRS 15, comparative figures for the prior year have not been restated. The impact of adoption of IFRS 15 on the current period is not material. Accounting policies applied for comparative periods In accordance with the transition requirements of IFRS 9 and IFRS 15, comparative information has not been restated. The comparative information was prepared in accordance with IAS 39 and IAS 18. With the exception of certain income streams within the Group’s car leasing business, the Group accounting policy under IAS 18 was substantially aligned with the requirements of IFRS 15 and is not reproduced here; the principal policies applied by the Group under IAS 39 are set out below: Impairment At each balance sheet date the Group assesses whether, as a result of one or more events occurring after initial recognition of a financial asset accounted for at amortised cost and prior to the balance sheet date, there is objective evidence that a financial asset or group of financial assets has become impaired. Where such an event, including the identification of fraud, has had an impact on the estimated future cash flows of the financial asset or group of financial assets, an impairment allowance is recognised. The amount of impairment allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The Group assesses, at each balance sheet date, whether there is objective evidence that an available-for-sale financial asset is impaired. In addition to the criteria for financial assets accounted for at amortised cost set out above, this assessment involves reviewing the current financial circumstances (including creditworthiness) and future prospects of the issuer, assessing the future cash flows expected to be realised and, in the case of equity shares, considering whether there has been a significant or prolonged decline in the fair value of the asset below its cost. If an impairment loss has been incurred, the cumulative loss measured as the difference between the acquisition cost (net of any principal repayment and amortisation) and the current fair value, less any impairment loss on that asset previously recognised, is reclassified from equity to the income statement. Classification and measurement On initial recognition, financial assets are classified into fair value through profit or loss, available for sale financial assets, held to maturity investments or loans and receivables. Financial liabilities are measured at amortised cost, except for trading liabilities and other financial liabilities designated at fair value through profit or loss on initial recognition which are held at fair value. Financial instruments are classified at fair value through profit or loss where they are trading securities or where they are designated at fair value through profit or loss by management. Derivatives are carried at fair value. Loans and receivables include loans and advances to banks and customers and are accounted for at amortised cost using the effective interest method. Debt securities and equity shares that are not classified as trading securities, at fair value through profit or loss, held-to-maturity investments or as loans and receivables are classified as available-for-sale financial assets and are recognised in the balance sheet at their fair value, inclusive of transaction costs. Gains and losses arising from changes in fair value are recognised directly in other comprehensive income, until the financial asset is either sold, becomes impaired or matures, at which time the cumulative gain or loss previously recognised in other comprehensive income is recognised in the income statement. Interest calculated using the effective interest method is recognised in the income statement. |
FUTURE ACCOUNTING DEVELOPMENTS
FUTURE ACCOUNTING DEVELOPMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of expected impact of initial application of new standards or interpretations [text block] [Abstract] | |
Disclosure of expected impact of initial application of new standards or interpretations [text block] | NOTE 55: FUTURE ACCOUNTING DEVELOPMENTS The following pronouncements are not applicable for the year ending 31 December 2018 and have not been applied in preparing these financial statements. Save as disclosed below, the impact of these accounting changes is still being assessed by the Group and reliable estimates cannot be made at this stage. IFRS 16 Leases IFRS 16 replaces IAS 17 ‘Leases’ and is effective for annual periods beginning on or after 1 January 2019. The Group’s accounting as a lessor will remain aligned to the current approach under IAS 17; however for lessee accounting there will no longer be a distinction between finance and operating leases. The transition approach adopted by the Group will result in the recognition of right of use assets and lease liabilities of approximately £1.8 billion in respect of leased properties previously accounted for as operating leases; there will be no impact on shareholders’ equity. As permitted by the transition options under IFRS 16, comparative figures for the prior year will not be restated. Going forward, the Group will recognise a finance charge on the lease liability and a depreciation charge on the right-of-use asset, whereas previously the Group included lease rentals within operating expenses. The Group intends to take advantage of a number of exemptions within IFRS 16, including the election not to recognise a lease liability and a right-of-use asset for leases for which the underlying asset is of low value. IFRS 17 Insurance Contracts IFRS 17 replaces IFRS 4 ‘Insurance Contracts’ and is currently effective for annual periods beginning on or after 1 January 2021 although the International Accounting Standards Board have proposed delaying implementation until 1 January 2022. IFRS 17 requires insurance contracts and participating investment contracts to be measured on the balance sheet as the total of the fulfilment cash flows and the contractual service margin. Changes to estimates of future cash flows from one reporting date to another are recognised either as an amount in profit or loss or as an adjustment to the expected profit for providing insurance coverage, depending on the type of change and the reason for it. The effects of some changes in discount rates can either be recognised in profit or loss or in other comprehensive income as an accounting policy choice. The risk adjustment is released to profit and loss as an insurer’s risk reduces. Profits which are currently recognised through a Value in Force asset, will no longer be recognised at inception of an insurance contract. Instead, the expected profit for providing insurance coverage is recognised in profit or loss over time as the insurance coverage is provided. The standard will have a significant impact on the accounting for the insurance and participating investment contracts issued by the Group. Minor amendments to other accounting standards The IASB has issued a number of minor amendments to IFRSs effective 1 January 2019 and 1 January 2020 (including IAS 19 Employee Benefits, IAS 12 Income Taxes and IFRIC 23 Uncertainty over Income Tax Treatments). The Group will adopt the changes to IAS 12 Income Taxes with effect from 1 January 2019, resulting in the presentation of the tax benefit of distributions on other equity instruments in the Group’s income statement; these impacts are currently recognised directly in equity. Comparative information will be restated. For the comparative year ended 31 December 2018, this will result in the reclassification of a tax credit of £106 million (2017: £102 million). These changes will have no impact on the Group’s reported balance sheet or profit before tax. The amendments to other accounting standards are not expected to have a significant impact on the Group. |
PARENT COMPANY DISCLOSURES
PARENT COMPANY DISCLOSURES | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Parent Company Financial Statements Explanatory [Abstract] | |
Disclosure of parent company financial statements [text block] | NOTE 56: PARENT COMPANY DISCLOSURES A COMPANY INCOME STATEMENT 2018 2017 2016 Net interest (expense) income (173 ) (121 ) 66 Other income 4,524 2,792 3,618 Total income 4,351 2,671 3,684 Operating expenses (246 ) (255 ) (221 ) Trading surplus 4,105 2,416 3,463 Impairment (3 ) – – Profit on ordinary activities before tax 4,102 2,416 3,463 Tax expense (80 ) (17 ) (328 ) Profit for the year 4,022 2,399 3,135 Profit attributable to ordinary shareholders 3,589 1,984 2,723 Profit attributable to other equity holders 1 433 415 412 Profit for the year 4,022 2,399 3,135 1 The profit after tax attributable to other equity holders of £433 million (2017: £415 million; 2016: £412 million) is offset in reserves by a tax credit attributable to ordinary shareholders of £82 million (2017: £79 million; 2016: £82 million). B COMPANY BALANCE SHEET 2018 2017 Assets Non-current assets: Investment in subsidiaries 46,725 44,863 Loans to subsidiaries 24,211 14,379 Deferred tax assets 9 22 70,945 59,264 Current assets: Derivative financial instruments 256 265 Financial assets at fair value through profit or loss 588 – Other assets 955 961 Amounts due from subsidiaries 27 47 Cash and cash equivalents 57 272 Current tax recoverable 76 724 1,959 2,269 Total assets 72,904 61,533 Equity and liabilities Capital and reserves: Share capital 7,116 7,197 Share premium account 17,719 17,634 Merger reserve 7,423 7,423 Capital redemption reserve 4,273 4,115 Retained profits 2,103 1,500 Shareholders’ equity 38,634 37,869 Other equity instruments 6,491 5,355 Total equity 45,125 43,224 Non-current liabilities: Debt securities in issue 20,394 10,886 Subordinated liabilities 6,043 3,993 26,437 14,879 Current liabilities: Derivative financial instruments 209 327 Other liabilities 1,133 3,103 1,342 3,430 Total liabilities 27,779 18,309 Total equity and liabilities 72,904 61,533 C COMPANY STATEMENT OF CHANGES IN EQUITY Share capital Merger Capital Retained 1 Total Other equity Total Balance at 1 January 2016 24,558 7,633 4,115 785 37,091 5,355 42,446 Total comprehensive income 1 – – – 3,135 3,135 – 3,135 Dividends paid – – – (2,014 ) (2,014 ) – (2,014 ) Distributions on other equity instruments, net of tax 2 – – – (330 ) (330 ) – (330 ) Redemption of preference shares 210 (210 ) – – – – – Movement in treasury shares – – – (301 ) (301 ) – (301 ) Value of employee services: Share option schemes – – – 141 141 – 141 Other employee award schemes – – – 168 168 – 168 Balance at 31 December 2016 24,768 7,423 4,115 1,584 37,890 5,355 43,245 Total comprehensive income 1 – – – 2,399 2,399 – 2,399 Dividends paid – – – (2,284 ) (2,284 ) – (2,284 ) Distributions on other equity instruments, net of tax 2 – – – (336 ) (336 ) – (336 ) Issue of ordinary shares 63 – – – 63 – 63 Movement in treasury shares – – – (277 ) (277 ) – (277 ) Value of employee services: Share option schemes – – – 82 82 – 82 Other employee award schemes – – – 332 332 – 332 Balance at 31 December 2017 24,831 7,423 4,115 1,500 37,869 5,355 43,224 Adjustment on adoption of IFRS 9 – – – (2 ) (2 ) – (2 ) Balance at 1 January 2018 24,831 7,423 4,115 1,498 37,867 5,355 43,222 Total comprehensive income 1 – – – 4,022 4,022 – 4,022 Dividends paid – – – (2,240 ) (2,240 ) – (2,240 ) Distributions on other equity instruments, net of tax 2 – – – (351 ) (351 ) – (351 ) Issue of ordinary shares 162 – – – 162 – 162 Share buy-back programme (158 ) – 158 (1,005 ) (1,005 ) – (1,005 ) Issue of AT1 securities – – – (7 ) (7 ) 1,136 1,129 Movement in treasury shares – – – (74 ) (74 ) – (74 ) Value of employee services: Share option schemes – – – 53 53 – 53 Other employee award schemes – – – 207 207 – 207 Balance at 31 December 2018 24,835 7,423 4,273 2,103 38,634 6,491 45,125 1 Total comprehensive income comprises only the profit for the year. 2 Distributions on other equity instruments are shown net of tax of £82 million (2017: £79 million; 2016: £82 million) credited to retained profits. D COMPANY CASH FLOW STATEMENT 2018 £m 2017 2016 Profit before tax 4,102 2,416 3,463 Fair value and exchange adjustments and other non-cash items (715 ) 495 1,986 Change in other assets (572 ) 18 (50 ) Change in other liabilities and other items 7,538 8,431 (8,392 ) Dividends received (4,000 ) (2,650 ) (3,759 ) Distributions on other equity instruments received (324 ) (292 ) (119 ) Tax (paid) received 660 (197 ) (679 ) Net cash provided by (used in) operating activities 6,689 8,221 (7,550 ) Cash flows from investing activities Return of capital contribution 9 77 441 Dividends received 4,000 2,650 3,759 Distributions on other equity instruments received 324 292 119 Acquisition of and capital injections to subsidiaries (12,753 ) (320 ) (3,522 ) Return of capital 11,114 – – Amounts advanced to subsidiaries (21,577 ) (8,476 ) (4,978 ) Repayment of loans to subsidiaries 12,602 475 13,166 Interest received on loans to subsidiaries 370 244 496 Net cash (used in) provided by investing activities (5,911 ) (5,058 ) 9,481 Cash flows from financing activities Dividends paid to ordinary shareholders (2,240 ) (2,284 ) (2,014 ) Distributions on other equity instruments (433 ) (415 ) (412 ) Issue of subordinated liabilities 1,729 – 1,061 Interest paid on subordinated liabilities (275 ) (248 ) (229 ) Share buy-back (1,005 ) – – Issue of other equity instruments 1,129 – – Repayment of subordinated liabilities – – (319 ) Proceeds from issue of ordinary shares 102 14 – Net cash provided by financing activities (993 ) (2,933 ) (1,913 ) Change in cash and cash equivalents (215 ) 230 18 Cash and cash equivalents at beginning of year 272 42 24 Cash and cash equivalents at end of year 57 272 42 E INTERESTS IN SUBSIDIARIES The principal subsidiaries, all of which have prepared accounts to 31 December and whose results are included in the consolidated accounts of Lloyds Banking Group plc, are: Country of Percentage Nature of business Lloyds Bank plc England 100% Banking and financial services Scottish Widows Limited Scotland 100% 1 Life assurance HBOS plc Scotland 100% 1 Holding company Bank of Scotland plc Scotland 100% 1 Banking and financial services Lloyds Bank Corporate Markets plc England 100% Banking and financial services 1 Indirect interest. The principal area of operation for each of the above subsidiaries is the United Kingdom. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Condensed Consolidating Financial Information [Abstract] | |
Disclosure of Condensed Consolidating Financial Information [Text Block] | NOTE 57: CONDENSED CONSOLIDATING FINANCIAL INFORMATION The Company owns 100 per cent of the share capital of Lloyds Bank plc (Lloyds Bank), which intends to offer and sell certain securities in the US from time to time utilising a registration statement on Form F-3 filed with the SEC by the Company. This will be accompanied by a full and unconditional guarantee by the Company. Lloyds Bank intends to utilise an exception provided in Rule 3-10 of Regulation S-X, which allows it to not file its financial statements with the SEC. In accordance with the requirements to qualify for the exception, presented below is condensed consolidating financial information for: – The Company on a stand-alone basis as guarantor; – Lloyds Bank on a stand-alone basis as issuer; – Non-guarantor subsidiaries of the Company and Lloyds Bank on a combined basis (Subsidiaries); – Consolidation adjustments; and – Lloyds Banking Group’s consolidated amounts (the Group). Under IAS 27, the Company and Lloyds Bank account for investments in their subsidiary undertakings at cost less impairment. Rule 3-10 of Regulation S-X requires a company to account for its investments in subsidiary undertakings using the equity method, which would increase/(decrease) the results of the Company and Lloyds Bank in the information below by £280 million and £(1,453) million, respectively, for the year ended 31 December 2018; by £1,408 million and £(1,140) million, respectively, for the year ended 31 December 2017; and by £(1,072) million and £(851) million, respectively, for the year ended 31 December 2016. The net assets of the Company and Lloyds Bank in the information below would also be increased/(decreased) by £4,800 million and £(11,994) million, respectively, at 31 December 2018; and by £5,682 million and £(9,962) million, respectively, at 31 December 2017. INCOME STATEMENTS For the year ended 31 December 2018 Company Lloyds Bank Subsidiaries Consolidation Group Net interest income (173 ) 6,129 7,769 (329 ) 13,396 Other income 4,524 7,992 7,136 (10,957 ) 8,695 Total income 4,351 14,121 14,905 (11,286 ) 22,091 Insurance claims – – (3,465 ) – (3,465 ) Total income, net of insurance claims 4,351 14,121 11,440 (11,286 ) 18,626 Operating expenses (246 ) (6,492 ) (7,033 ) 2,042 (11,729 ) Trading surplus 4,105 7,629 4,407 (9,244 ) 6,897 Impairment (3 ) (504 ) (480 ) 50 (937 ) Profit before tax 4,102 7,125 3,927 (9,194 ) 5,960 Taxation (80 ) (853 ) (795 ) 168 (1,560 ) Profit for the year 4,022 6,272 3,132 (9,026 ) 4,400 For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Net interest (expense) income (121 ) 5,829 5,360 (156 ) 10,912 Other income 2,792 7,642 22,553 (9,662 ) 23,325 Total income 2,671 13,471 27,913 (9,818 ) 34,237 Insurance claims – – (15,578 ) – (15,578 ) Total income, net of insurance claims 2,671 13,471 12,335 (9,818 ) 18,659 Operating expenses (255 ) (7,201 ) (6,939 ) 2,049 (12,346 ) Trading surplus 2,416 6,270 5,396 (7,769 ) 6,313 Impairment – (462 ) (281 ) 55 (688 ) Profit before tax 2,416 5,808 5,115 (7,714 ) 5,625 Taxation (17 ) (529 ) (1,153 ) (29 ) (1,728 ) Profit for the year 2,399 5,279 3,962 (7,743 ) 3,897 For the year ended 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Net interest income 66 4,883 4,661 (336 ) 9,274 Other income 3,618 5,489 30,349 (9,119 ) 30,337 Total income 3,684 10,372 35,010 (9,455 ) 39,611 Insurance claims – – (22,344 ) – (22,344 ) Total income, net of insurance claims 3,684 10,372 12,666 (9,455 ) 17,267 Operating expenses (221 ) (7,722 ) (6,380 ) 1,696 (12,627 ) Trading surplus 3,463 2,650 6,286 (7,759 ) 4,640 Impairment – (620 ) (239 ) 107 (752 ) Profit before tax 3,463 2,030 6,047 (7,652 ) 3,888 Taxation (328 ) (77 ) (1,815 ) 496 (1,724 ) Profit for the year 3,135 1,953 4,232 (7,156 ) 2,164 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the year ended 31 December 2018 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 4,022 6,272 3,132 (9,026 ) 4,400 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post-retirement defined benefit scheme remeasurements: Remeasurements before taxation – (206 ) 373 – 167 Taxation – 44 (91 ) – (47 ) – (162 ) 282 – 120 Movements in revaluation reserve in respect of equity shares held at fair value through other comprehensive income: Change in fair value – (102 ) 9 (4 ) (97 ) Tax – – – 22 22 – (102 ) 9 18 (75 ) Gains and losses attributable to own credit risk: Gains (losses) before tax – 533 – – 533 Tax – (144 ) – – (144 ) – 389 – – 389 Share of other comprehensive income of associates and joint ventures – – – 8 8 Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income: Change in fair value – (58 ) (35 ) 56 (37 ) Income statement transfers in respect of disposals – (258 ) (6 ) (11 ) (275 ) Taxation – 114 5 – 119 – (202 ) (36 ) 45 (193 ) Movements in cash flow hedging reserve: Effective portion of changes in fair value – 255 (89 ) 68 234 Net income statement transfers – (628 ) (29 ) (44 ) (701 ) Taxation – 87 31 (5 ) 113 – (286 ) (87 ) 19 (354 ) Currency translation differences (tax: nil) – 2 (10 ) – (8 ) Other comprehensive income for the year, net of tax – (361 ) 158 90 (113 ) Total comprehensive income for the year 4,022 5,911 3,290 (8,936 ) 4,287 Total comprehensive income attributable to ordinary shareholders 3,589 5,636 3,085 (8,554 ) 3,756 Total comprehensive income attributable to other equity holders 433 275 107 (382 ) 433 Total comprehensive income attributable to equity holders 4,022 5,911 3,192 (8,936 ) 4,189 Total comprehensive income attributable to non-controlling interests – – 98 – 98 Total comprehensive income for the year 4,022 5,911 3,290 (8,936 ) 4,287 For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 2,399 5,279 3,962 (7,743 ) 3,897 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post–retirement defined benefit scheme remeasurements: Remeasurements before taxation – 442 186 – 628 Taxation – (110 ) (36 ) – (146 ) – 332 150 – 482 Gains and losses attributable to own credit risk: Gains (losses) before taxation – (55 ) – – (55 ) Taxation – 15 – – 15 – (40 ) – – (40 ) Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of available-for-sale financial assets: Change in fair value – 231 38 34 303 Income statement transfers in respect of disposals – (333 ) (131 ) 18 (446 ) Income statement transfers in respect of impairment – – 9 (3 ) 6 Taxation – 46 17 – 63 – (56 ) (67 ) 49 (74 ) Movements in cash flow hedging reserve: Effective portion of changes in fair value – 15 (136 ) (242 ) (363 ) Net income statement transfers – (436 ) 46 (261 ) (651 ) Taxation – 130 23 130 283 – (291 ) (67 ) (373 ) (731 ) Currency translation differences (tax: nil) – (5 ) (27 ) – (32 ) Other comprehensive income for the year, net of tax – (60 ) (11 ) (324 ) (395 ) Total comprehensive income for the year 2,399 5,219 3,951 (8,067 ) 3,502 Total comprehensive income attributable to ordinary shareholders 1,984 4,946 3,740 (7,673 ) 2,997 Total comprehensive income attributable to other equity holders 415 273 121 (394 ) 415 Total comprehensive income attributable to equity holders 2,399 5,219 3,861 (8,067 ) 3,412 Total comprehensive income attributable to non-controlling interests – – 90 – 90 Total comprehensive income for the year 2,399 5,219 3,951 (8,067 ) 3,502 For the year ended 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 3,135 1,953 4,232 (7,156 ) 2,164 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post-retirement defined benefit scheme remeasurements: Remeasurements before taxation – (682 ) (666 ) – (1,348 ) Taxation – 184 136 – 320 – (498 ) (530 ) – (1,028 ) Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of available-for-sale financial assets: Adjustment on transfer from held-to-maturity portfolio – 1,544 – – 1,544 Change in fair value – 268 84 4 356 Income statement transfers in respect of disposals – (507 ) (68 ) – (575 ) Income statement transfers in respect of impairment – 172 1 – 173 Taxation – (269 ) (32 ) – (301 ) – 1,208 (15 ) 4 1,197 Movements in cash flow hedging reserve: Effective portion of changes in fair value – 1,290 125 1,017 2,432 Net income statement transfers – (241 ) (233 ) (83 ) (557 ) Taxation – (258 ) 29 (237 ) (466 ) – 791 (79 ) 697 1,409 Currency translation differences (tax: nil) – 19 44 (67 ) (4 ) Other comprehensive income for the year, net of tax – 1,520 (580 ) 634 1,574 Total comprehensive income for the year 3,135 3,473 3,652 (6,522 ) 3,738 Total comprehensive income attributable to ordinary shareholders 2,723 3,354 3,450 (6,302 ) 3,225 Total comprehensive income attributable to other equity holders 412 119 101 (220 ) 412 Total comprehensive income attributable to equity holders 3,135 3,473 3,551 (6,522 ) 3,637 Total comprehensive income attributable to non-controlling interests – – 101 – 101 Total comprehensive income for the year 3,135 3,473 3,652 (6,522 ) 3,738 BALANCE SHEETS At 31 December 2018 Company Lloyds Bank Subsidiaries Consolidation Group Assets Cash and balances at central banks – 37,632 17,031 – 54,663 Items in course of collection from banks – 464 183 – 647 Financial assets at fair value through profit or loss 588 20,843 139,339 (2,241 ) 158,529 Derivative financial instruments 256 15,431 26,872 (18,964 ) 23,595 At amortised cost: Loans and advances to banks – 3,153 3,105 25 6,283 Loans and advances to customers – 172,315 312,388 155 484,858 Debt securities – 4,960 271 7 5,238 Due from fellow Lloyds Banking Group undertakings 24,295 173,475 99,186 (296,956 ) – Financial assets at fair value through other comprehensive income – 23,208 1,607 – 24,815 Goodwill – – 2,331 (21 ) 2,310 Value of in-force business – – 4,543 219 4,762 Other intangible assets – 2,062 318 967 3,347 Property, plant and equipment – 2,940 9,346 14 12,300 Current tax recoverable 76 – 227 (298 ) 5 Deferred tax assets 9 1,980 2,278 (1,814 ) 2,453 Retirement benefit assets – 704 551 12 1,267 Investment in subsidiary undertakings, including assets held for sale 46,725 32,656 – (79,381 ) – Other assets 955 849 11,366 (644 ) 12,526 Total assets 72,904 492,672 630,942 (398,920 ) 797,598 Equity and liabilities Liabilities Deposits from banks – 5,320 25,002 (2 ) 30,320 Customer deposits – 229,402 188,735 (71 ) 418,066 Due to fellow Lloyds Banking Group undertakings 51 88,383 175,761 (264,195 ) – Items in course of transmission to banks – 341 295 – 636 Financial liabilities at fair value through profit or loss – 17,719 14,177 (1,349 ) 30,547 Derivative financial instruments 209 14,546 25,582 (18,964 ) 21,373 Notes in circulation – – 1,104 – 1,104 Debt securities in issue 20,394 70,556 30,102 (29,884 ) 91,168 Liabilities arising from insurance contracts and participating investment contracts – – 98,890 (16 ) 98,874 Liabilities arising from non-participating investment contracts – – 13,853 – 13,853 Other liabilities 1,082 2,643 18,793 (2,885 ) 19,633 Retirement benefit obligations – 121 122 2 245 Current tax liabilities – 231 639 (493 ) 377 Deferred tax liabilities – – 750 (750 ) – Other provisions – 1,608 2,135 (196 ) 3,547 Subordinated liabilities 6,043 9,528 6,611 (4,526 ) 17,656 Total liabilities 27,779 440,398 602,551 (323,329 ) 747,399 Equity Shareholders’ equity 38,634 49,057 25,530 (69,787 ) 43,434 Other equity instruments 6,491 3,217 2,587 (5,804 ) 6,491 Total equity excluding non-controlling interests 45,125 52,274 28,117 (75,591 ) 49,925 Non-controlling interests – – 274 – 274 Total equity 45,125 52,274 28,391 (75,591 ) 50,199 Total equity and liabilities 72,904 492,672 630,942 (398,920 ) 797,598 Consolidation Company Lloyds Bank Subsidiaries adjustments Group At 31 December 2017 £m £m £m £m £m Assets Cash and balances at central banks – 55,835 2,686 – 58,521 Items in course of collection from banks – 490 265 – 755 Financial assets at fair value through profit or loss – 43,977 126,864 (7,963 ) 162,878 Derivative financial instruments 265 26,764 14,785 (15,980 ) 25,834 At amortised cost: Loans and advances to banks – 3,611 2,975 25 6,611 Loans and advances to customers – 170,804 294,463 7,231 472,498 Debt securities – 3,182 420 41 3,643 Due from fellow Lloyds Banking Group undertakings 14,698 180,772 119,914 (315,384 ) – Available-for-sale financial assets – 42,566 1,582 (2,050 ) 42,098 Goodwill – – 2,332 (22 ) 2,310 Value of in-force business – – 4,590 249 4,839 Other intangible assets – 1,415 345 1,075 2,835 Property, plant and equipment – 3,252 9,526 (51 ) 12,727 Current tax recoverable 724 – 26 (734 ) 16 Deferred tax assets 22 1,995 2,285 (2,018 ) 2,284 Retirement benefit assets – 673 69 (19 ) 723 Investment in subsidiary undertakings, including assets held for sale 44,863 40,500 – (85,363 ) – Other assets 961 1,117 12,107 (648 ) 13,537 Total assets 61,533 576,953 595,234 (421,611 ) 812,109 Equity and liabilities Liabilities Deposits from banks – 7,538 22,268 (2 ) 29,804 Customer deposits – 234,397 183,830 (103 ) 418,124 Due to fellow Lloyds Banking Group undertakings 2,168 112,769 179,952 (294,889 ) – Items in course of transmission to banks – 304 280 – 584 Financial liabilities at fair value through profit or loss – 51,045 53 (221 ) 50,877 Derivative financial instruments 327 28,267 13,510 (15,980 ) 26,124 Notes in circulation – – 1,313 – 1,313 Debt securities in issue 10,886 66,249 15,847 (20,532 ) 72,450 Liabilities arising from insurance contracts and participating investment contracts – – 103,434 (21 ) 103,413 Liabilities arising from non-participating investment contracts – – 15,447 – 15,447 Other liabilities 935 3,425 18,480 (2,110 ) 20,730 Retirement benefit obligations – 143 134 81 358 Current tax liabilities – 105 1,242 (1,073 ) 274 Deferred tax liabilities – – 779 (779 ) – Other provisions – 2,593 2,865 88 5,546 Subordinated liabilities 3,993 9,341 8,288 (3,700 ) 17,922 Total liabilities 18,309 516,176 567,722 (339,241 ) 762,966 Equity Shareholders’ equity 37,869 57,560 25,470 (77,348 ) 43,551 Other equity instruments 5,355 3,217 1,805 (5,022 ) 5,355 Total equity excluding non-controlling interests 43,224 60,777 27,275 (82,370 ) 48,906 Non-controlling interests – – 237 – 237 Total equity 43,224 60,777 27,512 (82,370 ) 49,143 Total equity and liabilities 61,533 576,953 595,234 (421,611 ) 812,109 CASH FLOW STATEMENTS For the year ended 31 December 2018 Company £m Lloyds Bank £m Subsidiaries £m Consolidation adjustments £m Group £m Net cash provided by (used in) operating activities 6,689 (27,290 ) 8,871 623 (11,107 ) Cash flows from investing activities Dividends received from subsidiary undertakings 4,000 4,867 – (8,867 ) – Distributions on other equity instruments received 324 101 – (425 ) – Financial assets at fair value through other comprehensive income: Purchases – (11,699 ) (958 ) – (12,657 ) Proceeds from sale and maturity – 25,927 918 (39 ) 26,806 Purchase of fixed assets – (1,486 ) (2,028 ) – (3,514 ) Proceeds from sale of fixed assets – 113 1,221 – 1,334 Acquisitions of and capital injections to subsidiaries (12,753 ) (111 ) (131 ) 12,946 (49 ) Return of capital 11,114 210 – (11,324 ) – Return of capital contribution 9 – – (9 ) – Capital lending to subsidiaries (21,577 ) – – 21,577 – Capital loan repayments by subsidiaries 12,602 – (12,602 ) – Interest received on lending to subsidiaries 370 – (370 ) – Disposal of businesses, net of cash disposed – 7,704 1,373 (9,076 ) 1 Net cash flows from investing activities (5,911 ) 25,626 395 (8,189 ) 11,921 Cash flows from financing activities Dividends paid to ordinary shareholders (2,240 ) (11,022 ) (5,467 ) 16,489 (2,240 ) Distributions on other equity instruments (433 ) (275 ) (150 ) 425 (433 ) Dividends paid to non-controlling interests – – (61 ) – (61 ) Interest paid on subordinated liabilities (275 ) (659 ) (673 ) 339 (1,268 ) Issue of ordinary shares 102 – – – 102 Share buy-back programme (1,005 ) – – – (1,005 ) Issue of other equity instruments 1,129 – 782 (780 ) 1,131 Proceeds from issue of subordinated liabilities 1,729 – – – 1,729 Repayment of subordinated liabilities – – (2,273 ) 17 (2,256 ) Capital contributions received – – 3,088 (3,088 ) – Return of capital contributions – (9 ) – 9 – Return of capital to parent company – (2,975 ) – 2,975 – Capital borrowing from the Company – 9,860 11,717 (21,577 ) – Capital repayments to the Company – (10,354 ) (2,248 ) 12,602 – Interest paid on borrowing from the Company – (370 ) – 370 – Changes in non-controlling interests – – – – – Net cash used in financing activities (993 ) (15,804 ) 4,715 7,781 (4,301 ) Effects of exchange rate changes on cash and cash equivalents – 2 1 – 3 Change in cash and cash equivalents (215 ) (17,466 ) 13,982 215 (3,484 ) Cash and cash equivalents at beginning of year 1 272 56,120 2,588 (272 ) 58,708 Cash and cash equivalents at end of year 57 38,654 16,570 (57 ) 55,224 1 Adjusted for IFRS 9 For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries £m Consolidation adjustments Group Net cash (used in) provided by operating activities 8,221 (3,430 ) (5,959 ) (2,027 ) (3,195 ) Cash flows from investing activities Dividends received from subsidiary undertakings 2,650 4,378 – (7,028 ) – Distributions on other equity instruments received 292 101 – (393 ) – Return of capital contributions 77 – – (77 ) – Available-for-sale financial assets: Purchases – (7,550 ) (482 ) 170 (7,862 ) Proceeds from sale and maturity – 16,480 2,195 – 18,675 Purchase of fixed assets – (1,155 ) (2,500 ) – (3,655 ) Proceeds from sale of fixed assets – 85 1,359 – 1,444 Additional capital lending to subsidiaries (8,476 ) (34 ) – 8,510 – Capital repayments by subsidiaries 475 – – (475 ) – Interest received on lending to Lloyds Bank 244 – – (244 ) – Acquisition of businesses, net of cash acquired (320 ) (2,026 ) (622 ) 1,045 (1,923 ) Disposal of businesses, net of cash disposed – 592 129 (592 ) 129 Net cash flows from investing activities (5,058 ) 10,871 79 916 6,808 Cash flows from financing activities Dividends paid to equity shareholders (2,284 ) (2,650 ) (4,378 ) 7,028 (2,284 ) Distributions on other equity instruments (415 ) (273 ) (120 ) 393 (415 ) Dividends paid to non-controlling interests – – (51 ) – (51 ) Interest paid on subordinated liabilities (248 ) (668 ) (700 ) 341 (1,275 ) Proceeds from issue of subsordinated liabilities – – – – – Proceeds from issue of ordinary shares 14 – – – 14 Repayment of subordinated liabilities – (675 ) (1,132 ) 799 (1,008 ) Capital contributions received – – – – – Changes in non-controlling interests – – – – – Return of capital contribution – (77 ) – 77 – Capital borrowing from the Company – 8,476 – (8,476 ) – Capital repayments to parent company – (475 ) – 475 – Interest paid on borrowing from the Company – (244 ) – 244 – Net cash used in financing activities (2,933 ) 3,414 (6,381 ) 881 (5,019 ) Effects of exchange rate changes on cash and cash equivalents – (1 ) 1 – – Change in cash and cash equivalents 230 10,854 (12,260 ) (230 ) (1,406 ) Cash and cash equivalents at beginning of year 42 45,266 17,122 (42 ) 62,388 Cash and cash equivalents at end of year 272 56,120 4,862 (272 ) 60,982 For the year ended 31 December 2016 Company £m Lloyds Bank Subsidiaries Consolidation Group Net cash provided by (used in) operating activities (7,550 ) 1,073 11,131 (2,580 ) 2,074 Cash flows from investing activities Dividends received from subsidiary undertakings 3,759 3,984 – (7,743 ) – Distributions on other equity instruments received 119 – – (119 ) – Return of capital contributions 441 – – (441 ) – Available-for-sale financial assets and held-to-maturity investments: Purchases – (4,664 ) (322 ) 56 (4,930 ) Proceeds from sale and maturity – 6,429 2,350 (2,444 ) 6,335 Purchase of fixed assets – (1,122 ) (2,638 ) – (3,760 ) Proceeds from sale of fixed assets – 19 1,665 – 1,684 Purchase of other equity instruments issued by subsidiaries – – – – – Capital lending to Lloyds Bank – – – – – Capital repayments by Lloyds Bank – – – – – Additional capital lending to subsidiaries (4,978 ) – – 4,978 – Capital repayments by subsidiaries 13,166 – – (13,166 ) – Interest received on lending to Lloyds Bank 496 – – (496 ) – Additional capital injections to subsidiaries (3,522 ) (309 ) – 3,831 – Acquisition of businesses, net of cash acquired – – (20 ) – (20 ) Disposal of businesses, net of cash disposed – 231 5 (231 ) 5 Net cash flows from investing activities 9,481 4,568 1,040 (15,775 ) (686 ) Cash flows from financing activities Dividends paid to ordinary shareholders (2,014 ) (3,040 ) (4,602 ) 7,642 (2,014 ) Distributions on other equity instruments (412 ) (119 ) (101 ) 220 (412 ) Dividends paid to non-controlling interests – – (29 ) – (29 ) Interest paid on subordinated liabilities (229 ) (1,516 ) (893 ) 951 (1,687 ) Proceeds from issue of subordinated liabilities 1,061 2,753 – (2,753 ) 1,061 Repayment of subordinated liabilities (319 ) (13,200 ) (4,952 ) 10,586 (7,885 ) Proceeds from issue of other equity instruments – 3,217 305 (3,522 ) – Capital contribution received – – 309 (309 ) – Return of capital contributions – (441 ) – 441 – Capital borrowing from the Company – – – – – Capital repayments to the Company – (3,387 ) (1,198 ) 4,585 – Interest paid on borrowing from the Company – (496 ) – 496 – Change in stake of non-controlling interests – – (8 ) – (8 ) Net cash used in financing activities (1,913 ) (16,229 ) (11,169 ) 18,337 (10,974 ) Effects of exchange rate changes on cash and cash equivalents – 2 19 – 21 Change in cash and cash equivalents 18 (10,586 ) 1,021 (18 ) (9,565 ) Cash and cash equivalents at beginning of year 24 55,852 16,101 (24 ) 71,953 Cash and cash equivalents at end of year 42 45,266 17,122 (42 ) 62,388 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of accounting policy for consolidation [text block] | (A) Consolidation The assets, liabilities and results of Group undertakings (including structured entities) are included in the financial statements on the basis of accounts made up to the reporting date. Group undertakings include subsidiaries, associates and joint ventures. (1) SUBSIDIARIES Subsidiaries are entities controlled by the Group. The Group controls an entity when it has power over the entity, is exposed to, or has rights to, variable returns from its involvement with the entity, and has the ability to affect those returns through the exercise of its power. This generally accompanies a shareholding of more than one half of the voting rights although in certain circumstances a holding of less than one half of the voting rights may still result in the ability of the Group to exercise control. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. The Group reassesses whether or not it controls an entity if facts and circumstances indicate that there are changes to any of the above elements. Subsidiaries are fully consolidated from the date on which control is transferred to the Group; they are de-consolidated from the date that control ceases. The Group consolidates collective investment vehicles if its beneficial ownership interests give it substantive rights to remove the external fund manager over the investment activities of the fund. Where a subsidiary of the Group is the fund manager of a collective investment vehicle, the Group considers a number of factors in determining whether it acts as principal, and therefore controls the collective investment vehicle, including: an assessment of the scope of the Group’s decision making authority over the investment vehicle; the rights held by other parties including substantive removal rights without cause over the Group acting as fund manager; the remuneration to which the Group is entitled in its capacity as decision maker; and the Group’s exposure to variable returns from the beneficial interest it holds in the investment vehicle. Consolidation may be appropriate in circumstances where the Group has less than a majority beneficial interest. Where a collective investment vehicle is consolidated the interests of parties other than the Group are reported in other liabilities and the movement in these interests in interest expense. Structured entities are entities that are designed so that their activities are not governed by way of voting rights. In assessing whether the Group has power over such entities in which it has an interest, the Group considers factors such as the purpose and design of the entity; its practical ability to direct the relevant activities of the entity; the nature of the relationship with the entity; and the size of its exposure to the variability of returns of the entity. The treatment of transactions with non-controlling interests depends on whether, as a result of the transaction, the Group loses control of the subsidiary. Changes in the parent’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions; any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the parent entity. Where the Group loses control of the subsidiary, at the date when control is lost the amount of any non-controlling interest in that former subsidiary is derecognised and any investment retained in the former subsidiary is remeasured to its fair value; the gain or loss that is recognised in profit or loss on the partial disposal of the subsidiary includes the gain or loss on the remeasurement of the retained interest. Intercompany transactions, balances and unrealised gains and losses on transactions between Group companies are eliminated. The acquisition method of accounting is used to account for business combinations by the Group. The consideration for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition related costs are expensed as incurred except those relating to the issuance of debt instruments (see (E)(5) below) or share capital (see (P) below). Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair value at the acquisition date. (2) JOINT VENTURES AND ASSOCIATES Joint ventures are joint arrangements over which the Group has joint control with other parties and has rights to the net assets of the arrangements. Associates are entities over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the entity, but is not control or joint control of those policies, and is generally achieved through holding between 20 per cent and 50 per cent of the voting share capital of the entity. The Group utilises the venture capital exemption for investments where significant influence or joint control is present and the business unit operates as a venture capital business. These investments are designated at initial recognition at fair value through profit or loss. Otherwise, the Group’s investments in joint ventures and associates are accounted for by the equity method of accounting |
Description of accounting policy for goodwill [text block] | (B) Goodwill Goodwill arises on business combinations and represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable assets, liabilities and contingent liabilities acquired. Where the fair value of the Group’s share of the identifiable assets, liabilities and contingent liabilities of the acquired entity is greater than the cost of acquisition, the excess is recognised immediately in the income statement. Goodwill is recognised as an asset at cost and is tested at least annually for impairment. If an impairment is identified the carrying value of the goodwill is written down immediately through the income statement and is not subsequently reversed. At the date of disposal of a subsidiary, the carrying value of attributable goodwill is included in the calculation of the profit or loss on disposal. |
Description of accounting policy for intangible assets other than goodwill [text block] | (C) Other intangible assets Intangible assets which have been determined to have a finite useful life are amortised on a straight line basis over their estimated useful life as follows: up to 7 years for capitalised software; 10 to 15 years for brands and other intangibles. Intangible assets with finite useful lives are reviewed at each reporting date to assess whether there is any indication that they are impaired. If any such indication exists the recoverable amount of the asset is determined and in the event that the asset’s carrying amount is greater than its recoverable amount, it is written down immediately. Certain brands have been determined to have an indefinite useful life and are not amortised. Such intangible assets are reassessed annually to reconfirm that an indefinite useful life remains appropriate. In the event that an indefinite life is inappropriate a finite life is determined and an impairment review is performed on the asset. |
Description of accounting policy for recognition of revenue [text block] | (D) Revenue recognition (1) NET INTEREST INCOME Interest income and expense are recognised in the income statement for all interest-bearing financial instruments using the effective interest method, except for those classified at fair value through profit or loss. The effective interest method is a method of calculating the amortised cost of a financial asset or liability and of allocating the interest income or interest expense over the expected life of the financial instrument. The effective interest rate is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument to the gross carrying amount of the financial asset (before adjusting for expected credit losses) or to the amortised cost of the financial liability, including early redemption fees, and related penalties, and premiums and discounts that are an integral part of the overall return. Direct incremental transaction costs related to the acquisition, issue or disposal of a financial instrument are also taken into account. Interest income from non-credit impaired financial assets is recognised by applying the effective interest rate to the gross carrying amount of the asset; for credit impaired financial assets, the effective interest rate is applied to the net carrying amount after deducting the allowance for expected credit losses. Impairment policies are set out in (H) below. (2) FEE AND COMMISSION INCOME AND EXPENSE Fees and commissions receivable which are not an integral part of the effective interest rate are recognised as income as the Group fulfils its performance obligations. The Group’s principal performance obligations arising from contracts with customers are in respect of value added current accounts, credit cards and debit cards. These fees are received, and the Group’s provides the service, monthly; the fees are recognised in income on this basis. The Group also receives certain fees in respect of its asset finance business where the performance obligations are typically fulfilled towards the end of the customer contract; these fees are recognised in income on this basis. Where it is unlikely that the loan commitments will be drawn, loan commitment fees are recognised in fee and commission income over the life of the facility, rather than as an adjustment to the effective interest rate for loans expected to be drawn. Incremental costs incurred to generate fee and commission income are charged to fees and commissions expense as they are incurred. (3) OTHER Dividend income is recognised when the right to receive payment is established. Revenue recognition policies specific to trading income are set out in E(3) below, life insurance and general insurance business are detailed below (see (M) below); those relating to leases are set out in (J)(2) below. |
Description of accounting policy for financial assets and liabilities policy [text block] | (E) Financial assets and liabilities On initial recognition, financial assets are classified as measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss, depending on the Group’s business model for managing the financial assets and whether the cash flows represent solely payments of principal and interest. The Group assesses its business models at a portfolio level based on its objectives for the relevant portfolio, how the performance of the portfolio is managed and reported, and the frequency of asset sales. Financial assets with embedded derivatives are considered in their entirety when considering their cash flow characteristics. The Group reclassifies financial assets when and only when its business model for managing those assets changes. A reclassification will only take place when the change is significant to the Group’s operations and will occur at a portfolio level and not for individual instruments; reclassifications are expected to be rare. Equity investments are measured at fair value through profit or loss unless the Group elects at initial recognition to account for the instruments at fair value through other comprehensive income. For these instruments, principally strategic investments, dividends are recognised in profit or loss but fair value gains and losses are not subsequently reclassified to profit or loss following derecognition of the investment. The Group initially recognises loans and advances, deposits, debt securities in issue and subordinated liabilities when the Group becomes a party to the contractual provisions of the instrument. Regular way purchases and sales of securities and other financial assets and trading liabilities are recognised on trade date, being the date that the Group is committed to purchase or sell an asset. Financial assets are derecognised when the contractual right to receive cash flows from those assets has expired or when the Group has transferred its contractual right to receive the cash flows from the assets and either: substantially all of the risks and rewards of ownership have been transferred; or the Group has neither retained nor transferred substantially all of the risks and rewards, but has transferred control. Financial liabilities are derecognised when the obligation is discharged, cancelled or expires. (1) FINANCIAL INSTRUMENTS MEASURED AT AMORTISED COST Financial assets that are held to collect contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A basic lending arrangement results in contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. Where the contractual cash flows introduce exposure to risks or volatility unrelated to a basic lending arrangement such as changes in equity prices or commodity prices, the payments do not comprise solely principal and interest. Financial assets measured at amortised cost are predominantly loans and advances to customers and banks together with certain debt securities. Loans and advances are initially recognised when cash is advanced to the borrower at fair value inclusive of transaction costs. Interest income is accounted for using the effective interest method (see (D) above). Financial liabilities are measured at amortised cost, except for trading liabilities and other financial liabilities designated at fair value through profit or loss on initial recognition which are held at fair value. (2) FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Financial assets that are held to collect contractual cash flows and for subsequent sale, where the assets’ cash flows represent solely payments of principal and interest, are recognised in the balance sheet at their fair value, inclusive of transaction costs. Interest calculated using the effective interest method and foreign exchange gains and losses on assets denominated in foreign currencies are recognised in the income statement. All other gains and losses arising from changes in fair value are recognised directly in other comprehensive income, until the financial asset is either sold or matures, at which time the cumulative gain or loss previously recognised in other comprehensive income is recognised in the income statement other than in respect of equity shares, for which the cumulative revaluation amount is transferred directly to retained profits. The Group recognises a charge for expected credit losses in the income statement (see (H) below). As the asset is measured at fair value, the charge does not adjust the carrying value of the asset, it is reflected in other comprehensive income. (3) FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS Financial assets are classified at fair value through profit or loss where they do not meet the criteria to be measured at amortised cost or fair value through other comprehensive income or where they are designated at fair value through profit or loss to reduce an accounting mismatch. All derivatives are carried at fair value through profit or loss. The assets backing the insurance and investment contracts issued by the Group do not meet the criteria to be measured at amortised cost or fair value through other comprehensive income as they are managed on a fair value basis and accordingly are measured at fair value through profit or loss. Similarly, trading securities, which are debt securities and equity shares acquired principally for the purpose of selling in the short term or which are part of a portfolio which is managed for short-term gains, do not meet these criteria and are also measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognised in the balance sheet at their fair value. Fair value gains and losses together with interest coupons and dividend income are recognised in the income statement within net trading income. Financial liabilities are measured at fair value through profit or loss where they are trading liabilities or where they are designated at fair value through profit or loss in order to reduce an accounting mismatch; where the liabilities are part of a group of liabilities (or assets and liabilities) which is managed, and its performance evaluated, on a fair value basis; or where the liabilities contain one or more embedded derivatives that significantly modify the cash flows arising under the contract and would otherwise need to be separately accounted for. Financial liabilities measured at fair value through profit or loss are recognised in the balance sheet at their fair value. Fair value gains and losses are recognised in the income statement within net trading income in the period in which they occur, except that gains and losses attributable to changes in own credit risk are recognised in other comprehensive income. The fair values of assets and liabilities traded in active markets are based on current bid and offer prices respectively. If the market is not active the Group establishes a fair value by using valuation techniques. The fair values of derivative financial instruments are adjusted where appropriate to reflect credit risk (via credit valuation adjustments (CVAs), debit valuation adjustments (DVAs) and funding valuation adjustments (FVAs)), market liquidity and other risks. (4) BORROWINGS Borrowings (which include deposits from banks, customer deposits, debt securities in issue and subordinated liabilities) are recognised initially at fair value, being their issue proceeds net of transaction costs incurred. These instruments are subsequently stated at amortised cost using the effective interest method. Preference shares and other instruments which carry a mandatory coupon or are redeemable on a specific date are classified as financial liabilities. The coupon on these instruments is recognised in the income statement as interest expense. Securities which carry a discretionary coupon and have no fixed maturity or redemption date are classified as other equity instruments. Interest payments on these securities are recognised, net of tax, as distributions from equity in the period in which they are paid. An exchange of financial liabilities on substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of a financial liability extinguished and the new financial liability is recognised in profit or loss together with any related costs or fees incurred. When a financial liability is exchanged for an equity instrument, the new equity instrument is recognised at fair value and any difference between the carrying value of the liability and the fair value of the new equity is recognised in profit or loss. (5) SALE AND REPURCHASE AGREEMENTS (INCLUDING SECURITIES LENDING AND BORROWING) Securities sold subject to repurchase agreements (repos) continue to be recognised on the balance sheet where substantially all of the risks and rewards are retained. Funds received under these arrangements are included in deposits from banks, customer deposits, or trading liabilities. Conversely, securities purchased under agreements to resell (reverse repos), where the Group does not acquire substantially all of the risks and rewards of ownership, are recorded as loans and advances measured at amortised cost or trading securities. The difference between sale and repurchase price is treated as interest and accrued over the life of the agreements using the effective interest method. Securities borrowing and lending transactions are typically secured; collateral takes the form of securities or cash advanced or received. Securities lent to counterparties are retained on the balance sheet. Securities borrowed are not recognised on the balance sheet, unless these are sold to third parties, in which case the obligation to return them is recorded at fair value as a trading liability. Cash collateral given or received is treated as a loan and advance measured at amortised cost or customer deposit. |
Description of accounting policy for derivative financial instruments and hedging [text block] | (F) Derivative financial instruments and hedge accounting As permitted by IFRS 9, the Group continues to apply the requirements of IAS 39 to its hedging relationships. All derivatives are recognised at their fair value. Derivatives are carried on the balance sheet as assets when their fair value is positive and as liabilities when their fair value is negative. Refer to note 49(3) (Financial instruments: Financial assets and liabilities carried at fair value) for details of valuation techniques and significant inputs to valuation models. Changes in the fair value of all derivative instruments, other than those in effective cash flow and net investment hedging relationships, are recognised immediately in the income statement. As noted in (2) and (3) below, the change in fair value of a derivative in an effective cash flow or net investment hedging relationship is allocated between the income statement and other comprehensive income. Derivatives embedded in a financial asset are not considered separately; the financial asset is considered in its entirety when determining whether its cash flows are solely payments of principal and interest. Derivatives embedded in financial liabilities and insurance contracts (unless the embedded derivative is itself an insurance contract) are treated as separate derivatives when their economic characteristics and risks are not closely related to those of the host contract and the host contract is not carried at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognised in the income statement. In accordance with IFRS 4 Insurance Contracts, a policyholder’s option to surrender an insurance contract for a fixed amount is not treated as an embedded derivative. Hedge accounting allows one financial instrument, generally a derivative such as a swap, to be designated as a hedge of another financial instrument such as a loan or deposit or a portfolio of such instruments. At the inception of the hedge relationship, formal documentation is drawn up specifying the hedging strategy, the hedged item, the hedging instrument and the methodology that will be used to measure the effectiveness of the hedge relationship in offsetting changes in the fair value or cash flow of the hedged risk. The effectiveness of the hedging relationship is tested both at inception and throughout its life and if at any point it is concluded that it is no longer highly effective in achieving its documented objective, hedge accounting is discontinued. Note 17 provides details of the types of derivatives held by the Group and presents separately those designated in hedge relationships. Further information on hedge accounting is set out below. (1) FAIR VALUE HEDGES Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk; this also applies if the hedged asset is classified as a financial asset at fair value through other comprehensive income. If the hedge no longer meets the criteria for hedge accounting, changes in the fair value of the hedged item attributable to the hedged risk are no longer recognised in the income statement. The cumulative adjustment that has been made to the carrying amount of the hedged item is amortised to the income statement using the effective interest method over the period to maturity. (2) CASH FLOW HEDGES The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income in the cash flow hedge reserve. The gain or loss relating to the ineffective portion is recognised immediately in the income statement. Amounts accumulated in equity are reclassified to the income statement in the periods in which the hedged item affects profit or loss. 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 in the income statement when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement. (3) NET INVESTMENT HEDGES Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income, the gain or loss relating to the ineffective portion is recognised immediately in the income statement. Gains and losses accumulated in equity are included in the income statement when the foreign operation is disposed of. The hedging instrument used in net investment hedges may include non-derivative liabilities as well as derivative financial instruments. |
Description of accounting policy for offsetting of financial instruments [text block] | (G) Offset Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right of set-off and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. Cash collateral on exchange traded derivative transactions is presented gross unless the collateral cash flows are always settled net with the derivative cash flows. In certain situations, even though master netting agreements exist, the lack of management intention to settle on a net basis results in the financial assets and liabilities being reported gross on the balance sheet. |
Description of accounting policy for impairment of financial assets [text block] | (H) Impairment of financial assets The impairment charge in the income statement includes the change in expected credit losses and certain fraud costs. Expected credit losses are recognised for loans and advances to customers and banks, other financial assets held at amortised cost, financial assets measured at fair value through other comprehensive income, and certain loan commitments and financial guarantee contracts. Expected credit losses are calculated as an unbiased and probability-weighted estimate using an appropriate probability of default, adjusted to take into account a range of possible future economic scenarios, and applying this to the estimated exposure of the Group at the point of default after taking into account the value of any collateral held, repayments, or other mitigants of loss and including the impact of discounting using the effective interest rate. At initial recognition, allowance (or provision in the case of some loan commitments and financial guarantees) is made for expected credit losses resulting from default events that are possible within the next 12 months (12-month expected credit losses). In the event of a significant increase in credit risk since origination, allowance (or provision) is made for expected credit losses resulting from all possible default events over the expected life of the financial instrument (lifetime expected credit losses). Financial assets where 12-month expected credit losses are recognised are considered to be Stage 1; financial assets which are considered to have experienced a significant increase in credit risk since initial recognition are in Stage 2; and financial assets which have defaulted or are otherwise considered to be credit impaired are allocated to Stage 3. Some Stage 3 assets, mainly in Commercial Banking, are subject to individual rather than collective assessment. Such cases are subject to a risk-based impairment sanctioning process, and these are reviewed and updated at least quarterly, or more frequently if there is a significant change in the credit profile. An assessment of whether credit risk has increased significantly since initial recognition considers the change in the risk of default occurring over the remaining expected life of the financial instrument. The assessment is unbiased, probability-weighted and uses forward-looking information consistent with that used in the measurement of expected credit losses. In determining whether there has been a significant increase in credit risk, the Group uses quantitative tests based on relative and absolute probability of default (PD) movements linked to internal credit ratings together with qualitative indicators such as watchlists and other indicators of historical delinquency, credit weakness or financial difficulty. However, unless identified at an earlier stage, the credit risk of financial assets is deemed to have increased significantly when more than 30 days past due. Where the credit risk subsequently improves such that it no longer represents a significant increase in credit risk since origination, the asset is transferred back to Stage 1. Assets are transferred to Stage 3 when they have defaulted or are otherwise considered to be credit impaired. Default is considered to have occurred when there is evidence that the customer is experiencing financial difficulty which is likely to affect significantly the ability to repay the amount due. IFRS 9 contains a rebuttable presumption that default occurs no later than when a payment is 90 days past due. The Group uses this 90 day backstop for all its products except for UK mortgages. For UK mortgages, the Group uses a backstop of 180 days past due as mortgage exposures more than 90 days past due, but less than 180 days, typically show high cure rates and this aligns with the Group’s risk management practices. In certain circumstances, the Group will renegotiate the original terms of a customer’s loan, either as part of an ongoing customer relationship or in response to adverse changes in the circumstances of the borrower. In the latter circumstances, the loan will remain classified as either Stage 2 or Stage 3 until the credit risk has improved such that it no longer represents a significant increase since origination (for a return to Stage 1), or the loan is no longer credit impaired (for a return to Stage 2). Renegotiation may also lead to the loan and associated allowance being derecognised and a new loan being recognised initially at fair value. Purchased or originated credit-impaired financial assets (POCI) are financial assets that are purchased or originated at a deep discount that reflects incurred credit losses. At initial recognition, POCI assets do not carry an impairment allowance; instead, lifetime expected credit losses are incorporated into the calculation of the effective interest rate. All changes in lifetime expected credit losses subsequent to the assets’ initial recognition are recognised as an impairment charge. A loan or advance is normally written off, either partially or in full, against the related allowance when the proceeds from realising any available security have been received or there is no realistic prospect of recovery and the amount of the loss has been determined. Subsequent recoveries of amounts previously written off decrease the amount of impairment losses recorded in the income statement. For both secured and unsecured retail balances, the write-off takes place only once an extensive set of collections processes has been completed, or the status of the account reaches a point where policy dictates that continuing attempts to recover are no longer appropriate. For commercial lending, a write-off occurs if the loan facility with the customer is restructured, the asset is under administration and the only monies that can be received are the amounts estimated by the administrator, the underlying assets are disposed and a decision is made that no further settlement monies will be received, or external evidence (for example, third party valuations) is available that there has been an irreversible decline in expected cash flows. |
Description of accounting policy for property, plant and equipment [text block] | (I) Property, plant and equipment Property, plant and equipment (other than investment property) is included at cost less accumulated depreciation. The value of land (included in premises) is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate the difference between the cost and the residual value over their estimated useful lives, as follows: the shorter of 50 years and the remaining period of the lease for freehold/long and short leasehold premises; the shorter of 10 years and, if lease renewal is not likely, the remaining period of the lease for leasehold improvements; 10 to 20 years for fixtures and furnishings; and 2 to 8 years for other equipment and motor vehicles. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In the event that an asset’s carrying amount is determined to be greater than its recoverable amount it is written down immediately. The recoverable amount is the higher of the asset’s fair value less costs to sell and its value in use. Investment property comprises freehold and long leasehold land and buildings that are held either to earn rental income or for capital accretion or both, primarily within the life insurance funds. In accordance with the guidance published by the Royal Institution of Chartered Surveyors, investment property is carried at fair value based on current prices for similar properties, adjusted for the specific characteristics of the property (such as location or condition). If this information is not available, the Group uses alternative valuation methods such as discounted cash flow projections or recent prices in less active markets. These valuations are reviewed at least annually by independent professionally qualified valuers. Investment property being redeveloped for continuing use as investment property, or for which the market has become less active, continues to be valued at fair value. |
Description of accounting policy for leases [text block] | (J) Leases (1) AS LESSEE The leases entered into by the Group are primarily operating leases. Operating lease rentals payable are charged to the income statement on a straight-line basis over the period of the lease. When an operating lease is terminated before the end of the lease period, any payment made to the lessor by way of penalty is recognised as an expense in the period of termination. (2) AS LESSOR Assets leased to customers are classified as finance leases if the lease agreements transfer substantially all the risks and rewards of ownership to the lessee but not necessarily legal title. All other leases are classified as operating leases. When assets are subject to finance leases, the present value of the lease payments, together with any unguaranteed residual value, is recognised as a receivable, net of allowances for expected credit losses, within loans and advances to banks and customers. The difference between the gross receivable and the present value of the receivable is recognised as unearned finance lease income. Finance lease income is recognised in interest income over the term of the lease using the net investment method (before tax) so as to give a constant rate of return on the net investment in the leases. Unguaranteed residual values are reviewed regularly to identify any impairment. Operating lease assets are included within tangible fixed assets at cost and depreciated over their estimated useful lives, which equates to the lives of the leases, after taking into account anticipated residual values. Operating lease rental income is recognised on a straight-line basis over the life of the lease. The Group evaluates non-lease arrangements such as outsourcing and similar contracts to determine if they contain a lease which is then accounted for separately. |
Description of accounting policy for employee benefits [text block] | (K) Employee benefits Short-term employee benefits, such as salaries, paid absences, performance-based cash awards and social security costs are recognised over the period in which the employees provide the related services. (1) PENSION SCHEMES The Group operates a number of post-retirement benefit schemes for its employees including both defined benefit and defined contribution pension plans. A defined benefit scheme is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, dependent on one or more factors such as age, years of service and salary. A defined contribution plan is a pension plan into which the Group pays fixed contributions; there is no legal or constructive obligation to pay further contributions. Scheme assets are included at their fair value and scheme liabilities are measured on an actuarial basis using the projected unit credit method. The defined benefit scheme liabilities are discounted using rates equivalent to the market yields at the balance sheet date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. The Group’s income statement charge includes the current service cost of providing pension benefits, past service costs, net interest expense (income), and plan administration costs that are not deducted from the return on plan assets. Past service costs, which represents the change in the present value of the defined benefit obligation resulting from a plan amendment or curtailment, are recognised when the plan amendment or curtailment occurs. Net interest expense (income) is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Remeasurements, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest expense (income) and net of the cost of managing the plan assets), and the effect of changes to the asset ceiling (if applicable) are reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurements recognised in other comprehensive income are reflected immediately in retained profits and will not subsequently be reclassified to profit or loss. The Group’s balance sheet includes the net surplus or deficit, being the difference between the fair value of scheme assets and the discounted value of scheme liabilities at the balance sheet date. Surpluses are only recognised to the extent that they are recoverable through reduced contributions in the future or through refunds from the schemes. In assessing whether a surplus is recoverable, the Group considers its current right to obtain a refund or a reduction in future contributions and does not anticipate any future acts by other parties that could change the amount of the surplus that may ultimately be recovered. The costs of the Group’s defined contribution plans are charged to the income statement in the period in which they fall due. (2) SHARE-BASED COMPENSATION The Group operates a number of equity-settled, share-based compensation plans in respect of services received from certain of its employees. The value of the employee services received in exchange for equity instruments granted under these plans is recognised as an expense over the vesting period of the instruments, with a corresponding increase in equity. This expense is determined by reference to the fair value of the number of equity instruments that are expected to vest. The fair value of equity instruments granted is based on market prices, if available, at the date of grant. In the absence of market prices, the fair value of the instruments at the date of grant is estimated using an appropriate valuation technique, such as a Black-Scholes option pricing model or a Monte Carlo simulation. The determination of fair values excludes the impact of any non-market vesting conditions, which are included in the assumptions used to estimate the number of options that are expected to vest. At each balance sheet date, this estimate is reassessed and if necessary revised. Any revision of the original estimate is recognised in the income statement, together with a corresponding adjustment to equity. Cancellations by employees of contributions to the Group’s Save As You Earn plans are treated as non-vesting conditions and the Group recognises, in the year of cancellation, the amount of the expense that would have otherwise been recognised over the remainder of the vesting period. Modifications are assessed at the date of modification and any incremental charges are charged to the income statement. |
Description of accounting policy for income tax [text block] | (L) Taxation Tax expense comprises current and deferred tax. Current and deferred tax are charged or credited in the income statement except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different period, outside the income statement (either in other comprehensive income, directly in equity, or through a business combination), in which case the tax appears in the same statement as the transaction that gave rise to it. Current tax is the amount of corporate income taxes expected to be payable or recoverable based on the profit for the period as adjusted for items that are not taxable or not deductible, and is calculated using tax rates and laws that were enacted or substantively enacted at the balance sheet date. Current tax includes amounts provided in respect of uncertain tax positions when management expects that, upon examination of the uncertainty by Her Majesty’s Revenue and Customs (HMRC) or other relevant tax authority, it is more likely than not that an economic outflow will occur. Provisions reflect management’s best estimate of the ultimate liability based on their interpretation of tax law, precedent and guidance, informed by external tax advice as necessary. Changes in facts and circumstances underlying these provisions are reassessed at each balance sheet date, and the provisions are re-measured as required to reflect current information. For the Group’s long-term insurance businesses, the tax expense is analysed between tax that is payable in respect of policyholders’ returns and tax that is payable on the shareholders’ returns. This allocation is based on an assessment of the rates of tax which will be applied to the returns under the current UK tax rules. Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the balance sheet. Deferred tax is calculated using tax rates and laws that have been enacted or substantively enacted at the balance sheet date, and which are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax liabilities are generally recognised for all taxable temporary differences but not recognised for taxable temporary differences arising on investments in subsidiaries where the reversal of the temporary difference can be controlled and it is probable that the difference will not reverse in the foreseeable future. Deferred tax liabilities are not recognised on temporary differences that arise from goodwill which is not deductible for tax purposes. Deferred tax assets are recognised to the extent it is probable that taxable profits will be available against which the deductible temporary differences can be utilised, and are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are not recognised in respect of temporary differences that arise on initial recognition of assets and liabilities acquired other than in a business combination. Deferred tax is not discounted. |
Description of accounting policy for insurance contracts and related assets, liabilities, income and expense [text block] | (M) Insurance The Group undertakes both life insurance and general insurance business. Insurance and participating investment contracts are accounted for under IFRS 4 Insurance Contracts Products sold by the life insurance business are classified into three categories: – Insurance contracts – these contracts transfer significant insurance risk and may also transfer financial risk. The Group defines significant insurance risk as the possibility of having to pay benefits on the occurrence of an insured event which are significantly more than the benefits payable if the insured event were not to occur. These contracts may or may not include discretionary participation features. – Investment contracts containing a discretionary participation feature (participating investment contracts) – these contracts do not transfer significant insurance risk, but contain a contractual right which gives the holder the right to receive, in addition to the guaranteed benefits, further additional discretionary benefits or bonuses that are likely to be a significant proportion of the total contractual benefits and the amount and timing of which is at the discretion of the Group, within the constraints of the terms and conditions of the instrument and based upon the performance of specified assets. – Non-participating investment contracts – these contracts do not transfer significant insurance risk or contain a discretionary participation feature. The general insurance business issues only insurance contracts. (1) LIFE INSURANCE BUSINESS (I) ACCOUNTING FOR INSURANCE AND PARTICIPATING INVESTMENT CONTRACTS Premiums and claims Premiums received in respect of insurance and participating investment contracts are recognised as revenue when due except for unit-linked contracts on which premiums are recognised as revenue when received. Claims are recorded as an expense on the earlier of the maturity date or the date on which the claim is notified. Liabilities Changes in the value of liabilities are recognised in the income statement through insurance claims. – Insurance and participating investment contracts in the Group’s with-profit funds Liabilities of the Group’s with-profit funds, including guarantees and options embedded within products written by these funds, are stated at their realistic values in accordance with the Prudential Regulation Authority’s realistic capital regime, except that projected transfers out of the funds into other Group funds are recorded in the unallocated surplus (see below). – Insurance and participating investment contracts which are not unit-linked or in the Group’s with-profit funds A liability for contractual benefits that are expected to be incurred in the future is recorded when the premiums are recognised. The liability is calculated by estimating the future cash flows over the duration of in-force policies and discounting them back to the valuation date allowing for probabilities of occurrence. The liability will vary with movements in interest rates and with the cost of life insurance and annuity benefits where future mortality is uncertain. Assumptions are made in respect of all material factors affecting future cash flows, including future interest rates, mortality and costs. – Insurance and participating investment contracts which are unit-linked Liabilities for unit-linked insurance contracts and participating investment contracts are stated at the bid value of units plus an additional allowance where appropriate (such as for any excess of future expenses over charges). The liability is increased or reduced by the change in the unit prices and is reduced by policy administration fees, mortality and surrender charges and any withdrawals. Benefit claims in excess of the account balances incurred in the period are also charged through insurance claims. Revenue consists of fees deducted for mortality, policy administration and surrender charges. Unallocated surplus Any amounts in the with-profit funds not yet determined as being due to policyholders or shareholders are recognised as an unallocated surplus which is shown separately from liabilities arising from insurance contracts and participating investment contracts. (II) ACCOUNTING FOR NON-PARTICIPATING INVESTMENT CONTRACTS The Group’s non-participating investment contracts are primarily unit-linked. These contracts are accounted for as financial liabilities whose value is contractually linked to the fair values of financial assets within the Group’s unitised investment funds. The value of the unit-linked financial liabilities is determined using current unit prices multiplied by the number of units attributed to the contract holders at the balance sheet date. Their value is never less than the amount payable on surrender, discounted for the required notice period where applicable. Investment returns (including movements in fair value and investment income) allocated to those contracts are recognised in the income statement through insurance claims. Deposits and withdrawals are not accounted for through the income statement but are accounted for directly in the balance sheet as adjustments to the non-participating investment contract liability. The Group receives investment management fees in the form of an initial adjustment or charge to the amount invested. These fees are in respect of services rendered in conjunction with the issue and management of investment contracts where the Group actively manages the consideration received from its customers to fund a return that is based on the investment profile that the customer selected on origination of the contract. These services comprise an indeterminate number of acts over the lives of the individual contracts and, therefore, the Group defers these fees and recognises them over the estimated lives of the contracts, in line with the provision of investment management services. Costs which are directly attributable and incremental to securing new non-participating investment contracts are deferred. This asset is subsequently amortised over the period of the provision of investment management services and its recoverability is reviewed in circumstances where its carrying amount may not be recoverable. If the asset is greater than its recoverable amount it is written down immediately through fee and commission expense in the income statement. All other costs are recognised as expenses when incurred. (III) VALUE OF IN-FORCE BUSINESS The Group recognises as an asset the value of in-force business in respect of insurance contracts and participating investment contracts. The asset represents the present value of the shareholders’ interest in the profits expected to emerge from those contracts written at the balance sheet date. This is determined after making appropriate assumptions about future economic and operating conditions such as future mortality and persistency rates and includes allowances for both non-market risk and for the realistic value of financial options and guarantees. Each cash flow is valued using the discount rate consistent with that applied to such a cash flow in the capital markets. The asset in the consolidated balance sheet is presented gross of attributable tax and movements in the asset are reflected within other operating income in the income statement. The Group’s contractual rights to benefits from providing investment management services in relation to non-participating investment contracts acquired in business combinations and portfolio transfers are measured at fair value at the date of acquisition. The resulting asset is amortised over the estimated lives of the contracts. At each reporting date an assessment is made to determine if there is any indication of impairment. Where impairment exists, the carrying value of the asset is reduced to its recoverable amount and the impairment loss recognised in the income statement. (2) GENERAL INSURANCE BUSINESS The Group both underwrites and acts as intermediary in the sale of general insurance products. Underwriting premiums are included in insurance premium income, net of refunds, in the period in which insurance cover is provided to the customer; premiums received relating to future periods are deferred in the balance sheet within liabilities arising from insurance contracts and participating investment contracts on a basis that reflects the length of time for which contracts have been in force and the projected incidence of risk over the term of the contract and only credited to the income statement when earned. Broking commission is recognised when the underwriter accepts the risk of providing insurance cover to the customer. Where appropriate, provision is made for the effect of future policy terminations based upon past experience. The underwriting business makes provision for the estimated cost of claims notified but not settled and claims incurred but not reported at the balance sheet date. The provision for the cost of claims notified but not settled is based upon a best estimate of the cost of settling the outstanding claims after taking into account all known facts. In those cases where there is insufficient information to determine the required provision, statistical techniques are used which take into account the cost of claims that have recently been settled and make assumptions about the future development of the outstanding cases. Similar statistical techniques are used to determine the provision for claims incurred but not reported at the balance sheet date. Claims liabilities are not discounted. (3) LIABILITY ADEQUACY TEST At each balance sheet date liability adequacy tests are performed to ensure the adequacy of insurance and participating investment contract liabilities net of related deferred cost assets and value of in-force business. In performing these tests current best estimates of discounted future contractual cash flows and claims handling and policy administration expenses, as well as investment income from the assets backing such liabilities, are used. Any deficiency is immediately charged to the income statement, initially by writing off the relevant assets and subsequently by establishing a provision for losses arising from liability adequacy tests. (4) REINSURANCE Contracts entered into by the Group with reinsurers under which the Group is compensated for benefits payable on one or more contracts issued by the Group are recognised as assets arising from reinsurance contracts held. Where the underlying contracts issued by the Group are classified as insurance contracts and the reinsurance contract transfers significant insurance risk on those contracts to the reinsurer, the assets arising from reinsurance contracts held are classified as insurance contracts. Where the underlying contracts issued by the Group are classified as non-participating investment contracts and the reinsurance contract transfers financial risk on those contracts to the reinsurer, the assets arising from reinsurance contracts held are classified as non-participating investment contracts. Assets arising from reinsurance contracts held – Classified as insurance contracts Amounts recoverable from or due to reinsurers are measured consistently with the amounts associated with the reinsured contracts and in accordance with the terms of each reinsurance contract and are regularly reviewed for impairment. Premiums payable for reinsurance contracts are recognised as an expense when due within insurance premium income. Changes in the reinsurance recoverable assets are recognised in the income statement through insurance claims. Assets arising from reinsurance contracts held – Classified as non-participating investment contracts These contracts are accounted for as financial assets whose value is contractually linked to the fair values of financial assets within the reinsurers’ investment funds. Investment returns (including movements in fair value and investment income) allocated to these contracts are recognised in insurance claims. Deposits and withdrawals are not accounted for through the income statement but are accounted for directly in the balance sheet as adjustments to the assets arising from reinsurance contracts held. |
Description of accounting policy for foreign currency translation [text block] | (N) Foreign currency translation Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). Foreign currency transactions are translated into the appropriate functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when recognised in other comprehensive income as qualifying cash flow or net investment hedges. Non-monetary assets that are measured at fair value are translated using the exchange rate at the date that the fair value was determined. Translation differences on equities and similar non-monetary items held at fair value through profit and loss are recognised in profit or loss as part of the fair value gain or loss. Translation differences on non-monetary financial assets measured at fair value through other comprehensive income, such as equity shares, are included in the fair value reserve in equity unless the asset is a hedged item in a fair value hedge. The results and financial position of all group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: the assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on the acquisition of a foreign entity, are translated into sterling at foreign exchange rates ruling at the balance sheet date; and the income and expenses of foreign operations are translated into sterling at average exchange rates unless these do not approximate to the foreign exchange rates ruling at the dates of the transactions in which case income and expenses are translated at the dates of the transactions. Foreign exchange differences arising on the translation of a foreign operation are recognised in other comprehensive income and accumulated in a separate component of equity together with exchange differences arising from the translation of borrowings and other currency instruments designated as hedges of such investments (see (F)(3) above). On disposal or liquidation of a foreign operation, the cumulative amount of exchange differences relating to that foreign operation are reclassified from equity and included in determining the profit or loss arising on disposal or liquidation. |
Description of accounting policy for provisions [text block] | (O) Provisions and contingent liabilities Provisions are recognised in respect of present obligations arising from past events where it is probable that outflows of resources will be required to settle the obligations and they can be reliably estimated. Contingent liabilities are possible obligations whose existence depends on the outcome of uncertain future events or those present obligations where the outflows of resources are uncertain or cannot be measured reliably. Contingent liabilities are not recognised in the financial statements but are disclosed unless they are remote. Provision is made for expected credit losses in respect of irrevocable undrawn loan commitments and financial guarantee contracts (see (H) above). |
Description of accounting policy for issued capital [text block] | (P) Share capital Incremental costs directly attributable to the issue of new shares or options or to the acquisition of a business are shown in equity as a deduction, net of tax, from the proceeds. Dividends paid on the Group’s ordinary shares are recognised as a reduction in equity in the period in which they are paid. Where the Company or any member of the Group purchases the Company’s share capital, the consideration paid is deducted from shareholders’ equity as treasury shares until they are cancelled; if these shares are subsequently sold or reissued, any consideration received is included in shareholders’ equity. |
Description of accounting policy for determining components of cash and cash equivalents [text block] | (Q) Cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents comprise cash and non-mandatory balances with central banks and amounts due from banks with a maturity of less than three months. |
CRITICAL ACCOUNTING JUDGEMENT_2
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) [Line Items] | |
Explanation of credit risk management practices and how they relate to recognition and measurement of expected credit losses [text block] | The table below shows the Group’s ECL for the upside and downside scenarios using a 100 per cent weighting compared to the base case scenario; both stage allocation and the ECL are based on the single scenario only. All non-modelled provisions, including management judgement, remain unchanged. Upside £m Downside £m ECL allowance 2,775 3,573 |
Economic Assumptions [Member] | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) [Line Items] | |
Explanation of credit risk management practices and how they relate to recognition and measurement of expected credit losses [text block] | The key UK economic assumptions made by the Group as at 31 December 2018 averaged over a five-year period are shown below: Economic assumptions Base Case % Upside % Downside % Severe downside % At 31 December 2018 Interest rate 1.25 2.34 1.30 0.71 Unemployment rate 4.5 3.9 5.3 6.9 House price growth 2.5 6.1 (4.8 ) (7.5 ) Commercial real estate price growth 0.4 5.3 (4.7 ) (6.4 ) At 1 January 2018 Interest rate 1.18 2.44 0.84 0.01 Unemployment rate 5.0 4.0 6.1 7.1 House price growth 2.7 7.0 (2.4 ) (8.2 ) Commercial real estate price growth 0.0 3.0 (2.5 ) (5.4 ) Economic assumptions – start to peak Base Case % Upside % Downside % Severe Downside % At 31 December 2018 Interest rate 1.75 4.00 1.75 1.25 Unemployment rate 4.8 4.3 6.3 8.6 House price growth 13.7 34.9 0.6 (1.6 ) Commercial real estate price growth 0.1 26.9 (0.5 ) (0.5 ) Economic assumptions – start to trough Base Case % Upside % Downside % Severe Downside % At 31 December 2018 Interest rate 0.75 0.75 0.75 0.25 Unemployment rate 4.1 3.5 4.3 4.2 House price growth 0.4 2.3 (26.5 ) (33.5 ) Commercial real estate price growth (0.1 ) 0.0 (23.8 ) (33.8 ) |
Economic Scenarios [Member] | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) [Line Items] | |
Explanation of credit risk management practices and how they relate to recognition and measurement of expected credit losses [text block] | The table below shows the extent to which a higher ECL allowance has been recognised to take account of forward looking information from the weighted multiple economic scenarios. Impact of multiple economic scenarios Base Case £m Probability weighted £m Difference £m UK mortgages 253 460 207 Other Retail 1,294 1,308 14 Commercial Banking 1,472 1,513 41 Other 81 81 – At 31 December 2018 3,100 3,362 262 At 1 January 2018 3,182 3,533 351 |
Increase (Decrease) in House Price Index [Member] | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) [Line Items] | |
Explanation of credit risk management practices and how they relate to recognition and measurement of expected credit losses [text block] | The table below shows the impact on the Group’s ECL resulting from a decrease/increase in Loss Given Default for a 10 percentage point (pp) increase/decrease in the UK House Price Index (HPI). 10pp increase in HPI 10pp decrease in HPI ECL impact, £m (114 ) 154 |
Increase (Decrease) in Unemployment [Member] | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) [Line Items] | |
Explanation of credit risk management practices and how they relate to recognition and measurement of expected credit losses [text block] | The table below shows the impact on the Group’s ECL resulting from a decrease/increase in Loss Given Default for a 1 percentage point (pp) increase/decrease in the UK unemployment rate. 1pp increase in unemployment 1pp decrease in unemployment ECL impact, £m 172 (155 ) |
SEGMENTAL ANALYSIS (Tables)
SEGMENTAL ANALYSIS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of entity's operating segments [text block] [Abstract] | |
Disclosure of Operating Segments [Text Block] | Retail Commercial Insurance Other Underlying Year ended 31 December 2018 Net interest income 9,066 3,004 123 521 12,714 Other income, net of insurance claims 2,171 1,653 1,865 321 6,010 Total underlying income, net of insurance claims 11,237 4,657 1,988 842 18,724 Operating lease depreciation 1 (921 ) (35 ) – – (956 ) Net income 10,316 4,622 1,988 842 17,768 Operating costs (4,915 ) (2,167 ) (1,021 ) (62 ) (8,165 ) Remediation (267 ) (203 ) (39 ) (91 ) (600 ) Total costs (5,182 ) (2,370 ) (1,060 ) (153 ) (8,765 ) Impairment (charge) credit (862 ) (92 ) (1 ) 18 (937 ) Underlying profit 4,272 2,160 927 707 8,066 External income 13,097 4,876 1,895 (1,144 ) 18,724 Inter-segment income (1,860 ) (219 ) 93 1,986 – Segment underlying income, net of insurance claims 11,237 4,657 1,988 842 18,724 Segment external assets 349,719 164,897 140,487 142,495 797,598 Segment customer deposits 252,808 148,633 14,063 2,562 418,066 Segment external liabilities 260,378 191,071 147,673 148,277 747,399 Analysis of segment underlying other income, net of insurance claims: Current accounts 503 142 5 – 650 Credit and debit card fees 988 4 1 – 993 Commercial banking and treasury fees – 305 – – 305 Unit trust and insurance broking 13 – 208 – 221 Private banking and asset management – 5 92 – 97 Factoring – 83 – – 83 Other fees and commissions 52 253 163 31 499 Fees and commissions receivable 1,556 792 469 31 2,848 Fees and commissions payable (855 ) (57 ) (418 ) (56 ) (1,386 ) Net fee and commission income 701 735 51 (25 ) 1,462 Operating lease rental income 1,305 38 – – 1,343 Rental income from investment properties – – 197 – 197 Gains less losses on disposal of financial assets at fair value through other comprehensive income – – – 275 275 Lease termination income – 7 – – 7 Net trading income, excluding insurance 71 766 – 227 1,064 Insurance and other, net of insurance claims 247 358 2,146 (1,089 ) 1,662 Other external income, net of insurance claims 1,623 1,169 2,343 (587 ) 4,548 Inter-segment other income (153 ) (251 ) (529 ) 933 – Segment other income, net of insurance claims 2,171 1,653 1,865 321 6,010 Other segment items reflected in income statement above: Depreciation and amortisation 1,573 278 154 400 2,405 Decrease in value of in-force business – – (55 ) – (55 ) Defined benefit scheme charges 121 48 20 216 405 Other segment items: Additions to fixed assets 2,092 208 223 991 3,514 Investments in joint ventures and associates at end of year 4 6 – 81 91 Retail Commercial Insurance Other Underlying Year ended 31 December 2017 1 Net interest income 8,706 3,030 133 451 12,320 Other income, net of insurance claims 2,221 1,798 1,846 340 6,205 Total underlying income, net of insurance claims 10,927 4,828 1,979 791 18,525 Operating lease depreciation 2 (947 ) (105 ) – (1 ) (1,053 ) Net income 9,980 4,723 1,979 790 17,472 Operating costs (4,866 ) (2,230 ) (1,040 ) (48 ) (8,184 ) Remediation (633 ) (173 ) (40 ) (19 ) (865 ) Total costs (5,499 ) (2,403 ) (1,080 ) (67 ) (9,049 ) Impairment (charge) credit (711 ) (89 ) – 5 (795 ) Underlying profit 3,770 2,231 899 728 7,628 External income 12,682 3,176 1,883 784 18,525 Inter-segment income (1,755 ) 1,652 96 7 – Segment underlying income, net of insurance claims 10,927 4,828 1,979 791 18,525 Segment external assets 350,219 177,808 151,986 132,096 812,109 Segment customer deposits 253,127 148,313 13,770 2,914 418,124 Segment external liabilities 258,612 224,577 157,824 121,953 762,966 Analysis of segment underlying other income, net of insurance claims: Current accounts 572 135 5 – 712 Credit and debit card fees 948 4 1 – 953 Commercial banking and treasury fees – 321 – – 321 Unit trust and insurance broking 10 – 214 – 224 Private banking and asset management – 5 93 – 98 Factoring – 91 – – 91 Other fees and commissions 95 273 184 14 566 Fees and commissions receivable 1,625 829 497 14 2,965 Fees and commissions payable (873 ) (50 ) (380 ) (79 ) (1,382 ) Net fee and commission income 752 779 117 (65 ) 1,583 Operating lease rental income 1,281 63 – – 1,344 Rental income from investment properties – 1 212 – 213 Gains less losses on disposal of available-for-sale financial assets – 29 (3 ) 420 446 Lease termination income – 74 – – 74 Trading income 26 490 – (98 ) 418 Insurance and other, net of insurance claims 6 27 2,223 (129 ) 2,127 Other external income, net of insurance claims 1,313 684 2,432 193 4,622 Inter-segment other income 156 335 (703 ) 212 – Segment other income, net of insurance claims 2,221 1,798 1,846 340 6,205 Other segment items reflected in income statement above: Depreciation and amortisation 1,547 322 197 304 2,370 Increase in value of in-force business – – (165 ) – (165 ) Defined benefit scheme charges 149 52 25 133 359 Other segment items: Additions to fixed assets 2,431 130 274 820 3,655 Investments in joint ventures and associates at end of year 12 6 – 47 65 Retail Commercial Insurance Other Underlying Year ended 31 December 2016 1 Net interest income 8,074 2,863 80 418 11,435 Other income, net of insurance claims 2,165 1,875 1,878 86 6,004 Total underlying income, net of insurance claims 10,239 4,738 1,958 504 17,439 Operating lease depreciation 2 (777 ) (118 ) – – (895 ) Net income 9,462 4,620 1,958 504 16,544 Operating costs (4,761 ) (2,215 ) (1,046 ) (71 ) (8,093 ) Remediation (750 ) (148 ) (103 ) (23 ) (1,024 ) Total costs (5,511 ) (2,363 ) (1,149 ) (94 ) (9,117 ) Impairment (charge) credit (648 ) (11 ) – 14 (645 ) Underlying profit 3,303 2,246 809 424 6,782 External income 12,243 3,656 1,373 167 17,439 Inter-segment income (2,004 ) 1,082 585 337 – Segment underlying income, net of insurance claims 10,239 4,738 1,958 504 17,439 Segment external assets 340,253 193,054 154,782 129,704 817,793 Segment customer deposits 256,453 142,439 13,798 2,770 415,460 Segment external liabilities 265,128 231,450 160,815 111,935 769,328 Analysis of segment underlying other income, net of insurance claims: Current accounts 614 131 7 – 752 Credit and debit card fees 854 4 1 16 875 Commercial banking and treasury fees – 303 – – 303 Unit trust and insurance broking – – 244 – 244 Private banking and asset management – 5 94 – 99 Factoring – 112 – – 112 Other fees and commissions 125 237 292 6 660 Fees and commissions receivable 1,593 792 638 22 3,045 Fees and commissions payable (783 ) (54 ) (424 ) (95 ) (1,356 ) Net fee and commission income 810 738 214 (73 ) 1,689 Operating lease rental income 1,142 83 – – 1,225 Rental income from investment properties – 2 227 – 229 Gains less losses on disposal of available-for-sale financial assets – 17 (2 ) 76 91 Lease termination income – 1 – – 1 Trading income 46 1,937 – (570 ) 1,413 Insurance and other, net of insurance claims (2 ) (627 ) 1,613 372 1,356 Other external income, net of insurance claims 1,186 1,413 1,838 (122 ) 4,315 Inter-segment other income 169 (276 ) (174 ) 281 – Segment other income, net of insurance claims 2,165 1,875 1,878 86 6,004 Other segment items reflected in income statement above: Depreciation and amortisation 1,345 326 169 540 2,380 Decrease in value of in-force business – – 472 – 472 Defined benefit scheme charges 141 51 31 64 287 Other segment items: Additions to fixed assets 2,362 145 481 772 3,760 Investments in joint ventures and associates at end of year 9 28 – 22 59 1 Net of profits on disposal of operating lease assets of £60 million. 1 Restated see page F-22. 2 Net of profits on disposal of operating lease assets of £32 million. 1 Restated – see page F-22. 2 Net of profits on disposal of operating lease assets of £58 million. |
Disclosure of reconciliation of underlying basis to statutory results [text block] | The underlying basis is the basis on which financial information is presented to the chief operating decision maker which excludes certain items included in the statutory results. The table below reconciles the statutory results to the underlying basis. Removal of: Lloyds Volatility 1 Insurance 2 PPI Underlying Year ended 31 December 2018 Net interest income 13,396 152 (834 ) – 12,714 Other income, net of insurance claims 5,230 107 673 – 6,010 Total income, net of insurance claims 18,626 259 (161 ) – 18,724 Operating lease depreciation 3 (956 ) – – (956 ) Net income 18,626 (697 ) (161 ) – 17,768 Operating expenses (11,729 ) 2,053 161 750 (8,765 ) Impairment (937 ) – – – (937 ) Profit before tax 5,960 1,356 – 750 8,066 Removal of: Lloyds Volatility 4 Insurance 2 PPI Underlying Year ended 31 December 2017 Net interest income 10,912 228 1,180 – 12,320 Other income, net of insurance claims 7,747 (186 ) (1,356 ) – 6,205 Total income, net of insurance claims 18,659 42 (176 ) – 18,525 Operating lease depreciation 3 (1,053 ) – – (1,053 ) Net income 18,659 (1,011 ) (176 ) – 17,472 Operating expenses (12,346 ) 1,821 176 1,300 (9,049 ) Impairment (688 ) (107 ) – – (795 ) Profit before tax 5,625 703 – 1,300 7,628 Removal of: Lloyds Volatility 5 Insurance 2 PPI Underlying Year ended 31 December 2016 Net interest income 9,274 263 1,898 – 11,435 Other income, net of insurance claims 7,993 121 (2,110 ) – 6,004 Total income, net of insurance claims 17,267 384 (212 ) – 17,439 Operating lease depreciation 3 (895 ) – – (895 ) Net income 17,267 (511 ) (212 ) – 16,544 Operating expenses (12,627 ) 1,948 212 1,350 (9,117 ) Impairment (752 ) 107 – – (645 ) Profit before tax 3,888 1,544 – 1,350 6,782 1 In the year ended 31 December 2018 this comprises the effects of asset sales (loss of £145 million); volatility and other items (gains of £95 million); the amortisation of purchased intangibles (£108 million); restructuring (£879 million, comprising severance related costs, the rationalisation of the non-branch property portfolio, the work on implementing the ring-fencing requirements and the integration of MBNA and Zurich’s UK workplace pensions and savings business); and the fair value unwind and other items (losses of £319 million). 2 The Group’s insurance businesses’ income statements include income and expenditure which are attributable to the policyholders of the Group’s long-term assurance funds. These items have no impact in total upon the profit attributable to equity shareholders and, in order to provide a clearer representation of the underlying trends within the business, these items are shown net within the underlying results. 3 Net of profits on disposal of operating lease assets of £60 million (2017: £32 million; 2016: £58 million). 4 Comprises the effects of asset sales (gain of £30 million); volatile items (gain of £263 million); liability management (loss of £14 million); the amortisation of purchased intangibles (£91 million); restructuring costs (£621 million, principally comprising costs relating to the Simplification programme; the rationalisation of the non-branch property portfolio, the work on implementing the ring-fencing requirements and the integration of MBNA); and the fair value unwind and other items (loss of £270 million). 5 Comprises the write-off of the Enhanced Capital Note embedded derivative and premium paid on redemption of the remaining notes (loss of £790 million); the effects of asset sales (gain of £217 million); volatile items (gain of £99 million); liability management (gain of £123 million); the amortisation of purchased intangibles (£340 million); restructuring costs (£622 million, principally comprising the severance related costs related to phase II of the Simplification programme); and the fair value unwind and other items (loss of £231 million). |
NET INTEREST INCOME (Tables)
NET INTEREST INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of interest income (expense) [text block] [Abstract] | |
Disclosure of interest income [text block] | Weighted average 2018 2017 2016 2018 2017 2016 Interest and similar income: Loans and advances to customers 3.17 3.16 3.32 15,078 14,712 15,190 Loans and advances to banks 0.84 0.40 0.46 565 271 381 Debt securities held at amortised cost 1.60 1.29 1.47 66 43 56 Held-to-maturity investments — 1.44 — 231 Interest receivable on financial assets held at amortised cost 2.87 2.81 2.83 15,709 15,026 15,858 Financial assets at fair value through other comprehensive income 1.98 640 Available-for-sale financial assets 1.96 1.88 980 762 Total interest and similar income 1 2.82 2.73 2.77 16,349 16,006 16,620 Interest and similar expense: Deposits from banks, excluding liabilities under sale and repurchase transactions 1.39 1.18 0.65 (117 ) (80 ) (68 ) Customer deposits, excluding liabilities under sale and repurchase transactions 0.53 0.49 0.69 (1,813 ) (1,722 ) (2,520 ) Debt securities in issue 2 0.27 0.37 0.94 (234 ) (266 ) (799 ) Subordinated liabilities 7.63 7.93 8.35 (1,388 ) (1,481 ) (1,864 ) Liabilities under sale and repurchase agreements 0.96 0.58 0.46 (245 ) (110 ) (38 ) Interest payable on liabilities held at amortised cost 0.79 0.79 1.07 (3,797 ) (3,659 ) (5,289 ) Amounts payable to unitholders in consolidated open-ended investment vehicles (6.07 ) 9.15 10.85 844 (1,435 ) (2,057 ) Total interest and similar expense 3 0.60 1.06 1.44 (2,953 ) (5,094 ) (7,346 ) Net interest income 13,396 10,912 9,274 1 Includes £31 million (2017: £12 million; 2016: £nil) of interest income on liabilities with negative interest rates. 2 The impact of the Group’s hedging arrangements is included on this line; excluding this impact the weighted average effective interest rate in respect of debt securities in issue would be 2.68 per cent (2017: 2.43 per cent; 2016: 2.70 per cent). 3 Includes £10 million (2017: £50 million; 2016: £51 million) of interest expense on assets with negative interest rates. |
NET FEE AND COMMISSION INCOME (
NET FEE AND COMMISSION INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of fee and commission income (expense) [text block] [Abstract] | |
Disclosure of fee and commission income (expense) [text block] | 2018 2017 2016 Fee and commission income: Current accounts 650 712 752 Credit and debit card fees 993 953 875 Commercial banking and treasury fees 305 321 303 Unit trust and insurance broking 221 224 244 Private banking and asset management 97 98 99 Factoring 83 91 112 Other fees and commissions 499 566 660 Total fee and commission income 2,848 2,965 3,045 Fee and commission expense (1,386 ) (1,382 ) (1,356 ) Net fee and commission income 1,462 1,583 1,689 |
NET TRADING INCOME (Tables)
NET TRADING INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
NET TRADING INCOME (Tables) [Line Items] | |
Disclosure of trading income (expense) [text block] | NOTE 7: NET TRADING INCOME 2018 £m 2017 2016 Foreign exchange translation gains/(losses) 342 (174 ) 1,363 Gains on foreign exchange trading transactions 580 517 542 Total foreign exchange 922 343 1,905 Investment property gains (losses) (note 26) 139 230 (83 ) Securities and other gains (see below) (4,937 ) 11,244 16,723 Net trading income (3,876 ) 11,817 18,545 Securities and other gains comprise net gains (losses) arising on assets and liabilities held at fair value through profit or loss as follows: 2018 £m 2017 2016 Net income arising on assets and liabilities mandatorily held at fair value through profit or loss: Financial instruments held for trading (8 ) 404 (428 ) Other financial instruments mandatorily held at fair value through profit or loss: Debt securities, loans and advances (26 ) 1,122 4,771 Equity shares (4,747 ) 9,862 12,534 (4,781 ) 11,388 16,877 Net (expense) income arising on assets and liabilities designated at fair value through profit or loss (156 ) (144 ) (154 ) Securities and other gains (4,937 ) 11,244 16,723 |
Securities and other gains [member] | |
NET TRADING INCOME (Tables) [Line Items] | |
Disclosure of trading income (expense) [text block] | Securities and other gains comprise net gains (losses) arising on assets and liabilities held at fair value through profit or loss as follows: 2018 £m 2017 2016 Net income arising on assets and liabilities mandatorily held at fair value through profit or loss: Financial instruments held for trading (8 ) 404 (428 ) Other financial instruments mandatorily held at fair value through profit or loss: Debt securities, loans and advances (26 ) 1,122 4,771 Equity shares (4,747 ) 9,862 12,534 (4,781 ) 11,388 16,877 Net (expense) income arising on assets and liabilities designated at fair value through profit or loss (156 ) (144 ) (154 ) Securities and other gains (4,937 ) 11,244 16,723 |
Financial assets at fair value through profit or loss, classified as held for trading, category [member] | |
NET TRADING INCOME (Tables) [Line Items] | |
Disclosure of trading income (expense) [text block] | 2018 £m 2017 2016 Foreign exchange translation gains/(losses) 342 (174 ) 1,363 Gains on foreign exchange trading transactions 580 517 542 Total foreign exchange 922 343 1,905 Investment property gains (losses) (note 26) 139 230 (83 ) Securities and other gains (see below) (4,937 ) 11,244 16,723 Net trading income (3,876 ) 11,817 18,545 |
INSURANCE PREMIUM INCOME (Table
INSURANCE PREMIUM INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance premium income [Member] | |
INSURANCE PREMIUM INCOME (Tables) [Line Items] | |
Disclosure of insurance premium revenue [text block] | 2018 £m 2017 2016 Life insurance Gross premiums: Life and pensions 6,612 6,273 5,613 Annuities 2,178 1,082 1,685 8,790 7,355 7,298 Ceded reinsurance premiums (271 ) (168 ) (88 ) Net earned premiums 8,519 7,187 7,210 Non-life insurance Net earned premiums 670 743 858 Total net earned premiums 9,189 7,930 8,068 |
OTHER OPERATING INCOME (Tables)
OTHER OPERATING INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other operating income [Member] | |
OTHER OPERATING INCOME (Tables) [Line Items] | |
Disclosure of other operating income [text block] | 2018 £m 2017 2016 Operating lease rental income 1,343 1,344 1,225 Rental income from investment properties (note 26) 197 213 229 Gains less losses on disposal of financial assets at fair value through other comprehensive income (2017 and 2016: available-for-sale financial assets) (note 41) 275 446 575 Movement in value of in-force business (note 24) (55 ) (165 ) 472 Liability management – (14 ) (598 ) Share of results of joint ventures and associates 9 6 (1 ) Other 151 165 133 Total other operating income 1,920 1,995 2,035 |
INSURANCE CLAIMS (Tables)
INSURANCE CLAIMS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of claims and benefits paid [text block] [Abstract] | |
Disclosure of Insurance Claims [Text Block] | Insurance claims comprise: 2018 £m 2017 2016 Life insurance and participating investment contracts Claims and surrenders (8,735 ) (8,898 ) (8,617 ) Change in insurance and participating investment contracts (note 31) 4,565 (9,067 ) (14,160 ) Change in non-participating investment contracts 628 2,836 679 (3,542 ) (15,129 ) (22,098 ) Reinsurers’ share 404 35 106 (3,138 ) (15,094 ) (21,992 ) Change in unallocated surplus 8 (147 ) 14 Total life insurance and participating investment contracts (3,130 ) (15,241 ) (21,978 ) Non-life insurance Total non-life insurance claims, net of reinsurance (335 ) (337 ) (366 ) Total insurance claims (3,465 ) (15,578 ) (22,344 ) Life insurance and participating investment contracts gross claims and surrenders can also be analysed as follows: Deaths (721 ) (675 ) (635 ) Maturities (1,198 ) (1,280 ) (1,347 ) Surrenders (5,548 ) (5,674 ) (5,444 ) Annuities (1,032 ) (985 ) (949 ) Other (236 ) (284 ) (242 ) Total life insurance gross claims and surrenders (8,735 ) (8,898 ) (8,617 ) |
OPERATING EXPENSES (Tables)
OPERATING EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of expenses [text block] [Abstract] | |
Disclosure of other operating expense [text block] | 2018 £m 2017 2016 Staff costs: Salaries 2,482 2,679 2,750 Performance-based compensation 509 473 475 Social security costs 343 361 363 Pensions and other post-retirement benefit schemes (note 35) 705 625 555 Restructuring costs 249 24 241 Other staff costs 474 448 433 4,762 4,610 4,817 Premises and equipment: Rent and rates 370 365 365 Repairs and maintenance 190 231 187 Other 169 134 120 729 730 672 Other expenses: Communications and data processing 1,121 882 848 Advertising and promotion 197 208 198 Professional fees 287 328 265 UK bank levy 225 231 200 Other 653 814 873 2,483 2,463 2,384 Depreciation and amortisation: Depreciation of property, plant and equipment (note 26) 1,852 1,944 1,761 Amortisation of acquired value of in-force non-participating investment contracts (note 24) 40 34 37 Amortisation of other intangible assets (note 25) 513 392 582 2,405 2,370 2,380 Goodwill impairment (note 23) – 8 – Total operating expenses, excluding regulatory provisions 10,379 10,181 10,253 Regulatory provisions: Payment protection insurance provision (note 37) 750 1,300 1,350 Other regulatory provisions 1 600 865 1,024 1,350 2,165 2,374 Total operating expenses 11,729 12,346 12,627 1 In 2016, regulatory provisions of £61 million were charged against income. |
Disclosure of performance-based compensation costs [text block] | The table below analyses the Group’s performance-based compensation costs between those relating to the current performance year and those relating to earlier years. 2018 £m 2017 2016 Performance-based compensation expense comprises: Awards made in respect of the year ended 31 December 362 334 312 Awards made in respect of earlier years 147 139 163 509 473 475 Performance-based compensation expense deferred until later years comprises: Awards made in respect of the year ended 31 December 152 127 123 Awards made in respect of earlier years 37 35 41 189 162 164 |
Disclosure of information about employees [text block] | The average number of persons on a headcount basis employed by the Group during the year was as follows: 2018 2017 2016 UK 71,857 75,150 79,606 Overseas 769 794 812 Total 72,626 75,944 80,418 |
AUDITORS' REMUNERATION (Tables)
AUDITORS' REMUNERATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Group [Member] | |
AUDITORS' REMUNERATION (Tables) [Line Items] | |
Disclosure of fees payable to auditors [text block] | Fees payable to the Company’s auditors by the Group are as follows: 2018 £m 2017 2016 Fees payable for the audit of the Company’s current year annual report 1.5 1.5 1.5 Fees payable for other services: Audit of the Company’s subsidiaries pursuant to legislation 19.1 18.6 14.7 Other services supplied pursuant to legislation 2.9 3.0 3.1 Total audit fees 23.5 23.1 19.3 Other services – audit related fees 1.2 1.2 3.1 Total audit and audit related fees 24.7 24.3 22.4 Services relating to taxation: Taxation compliance services – – 0.2 All other taxation advisory services – – 0.1 – – 0.3 Other non-audit fees: Services relating to corporate finance transactions – 1.2 0.1 Other services 2.0 2.4 1.5 Total other non-audit fees 2.0 3.6 1.6 Total fees payable to the Company’s auditors by the Group 26.7 27.9 24.3 |
Entities Outside of Lloyds [Member] | |
AUDITORS' REMUNERATION (Tables) [Line Items] | |
Disclosure of fees payable to auditors [text block] | During the year, the auditors also earned fees payable by entities outside the consolidated Lloyds Banking Group in respect of the following: 2018 £m 2017 2016 Audits of Group pension schemes 0.1 0.1 0.3 Audits of the unconsolidated Open Ended Investment Companies managed by the Group 0.3 0.3 0.4 Reviews of the financial position of corporate and other borrowers 0.4 0.2 1.2 Acquisition due diligence and other work performed in respect of potential venture capital investments – 0.1 1.0 |
IMPAIRMENT (Tables)
IMPAIRMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of impairment loss and reversal of impairment loss [text block] [Abstract] | |
Disclosure of impairment [text block] | Stage 1 Stage 2 Stage 3 Purchased or Total Year ended 31 December 2018 Impact of transfers between stages (12 ) 51 446 – 485 Other changes in credit quality (20 ) (47 ) 541 69 543 Additions (repayments) 18 (82 ) 43 (69 ) (90 ) Methodology changes (71 ) (21 ) 72 – (20 ) Other items (13 ) – 32 – 19 Other items impacting the impairment charge (86 ) (150 ) 688 – 452 Total impairment (98 ) (99 ) 1,134 – 937 In respect of: Loans and advances to banks 1 – – – 1 Loans and advances to customers (66 ) (51 ) 1,139 – 1,022 Debt securities – – – – – Financial assets at amortised cost (65 ) (51 ) 1,139 – 1,023 Other assets – – 1 – 1 Impairment charge on drawn balances (65 ) (51 ) 1,140 – 1,024 Loan commitments and financial guarantees (19 ) (48 ) (6 ) – (73 ) Financial assets at fair value through other comprehensive income (14 ) – – – (14 ) Total impairment (98 ) (99 ) 1,134 – 937 |
Disclosure of Impairment Loss and Reversal of Impairment Loss [text block] | 2017 2016 Impairment losses on loans and receivables: Loans and advances to customers 697 592 Debt securities classified as loans and receivables (6 ) – Total impairment losses on loans and receivables 691 592 Impairment of available-for-sale financial assets 6 173 Other credit risk provisions (9 ) (13 ) Total impairment charged to the income statement 688 752 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of income tax [text block] [Abstract] | |
Disclosure of tax receivables and payables [text block] | 2018 £m 2017 2016 UK corporation tax: Current tax on profit for the year (1,386 ) (1,342 ) (1,010 ) Adjustments in respect of prior years 11 122 156 (1,375 ) (1,220 ) (854 ) Foreign tax: Current tax on profit for the year (34 ) (40 ) (20 ) Adjustments in respect of prior years 5 10 2 (29 ) (30 ) (18 ) Current tax expense (1,404 ) (1,250 ) (872 ) Deferred tax: Current year (127 ) (430 ) (758 ) Adjustments in respect of prior years (29 ) (48 ) (94 ) Deferred tax expense (156 ) (478 ) (852 ) Tax expense (1,560 ) (1,728 ) (1,724 ) |
Disclosure of Income Tax Charges [Text Block] | The income tax expense is made up as follows: 2018 £m 2017 £m 2016 £m Tax (expense) credit attributable to policyholders 14 (82 ) (301 ) Shareholder tax expense (1,574 ) (1,646 ) (1,423 ) Tax expense (1,560 ) (1,728 ) (1,724 ) |
Disclosure of reconciliation of charge resulting from applying UK corporation tax rate | An explanation of the relationship between tax expense and accounting profit is set out below: 2018 £m 2017 2016 Profit before tax 5,960 5,625 3,888 UK corporation tax thereon (1,132 ) (1,083 ) (778 ) Impact of surcharge on banking profits (432 ) (452 ) (266 ) Non-deductible costs: conduct charges (101 ) (287 ) (289 ) Non-deductible costs: bank levy (43 ) (44 ) (40 ) Other non-deductible costs (90 ) (59 ) (135 ) Non-taxable income 87 72 75 Tax-exempt gains on disposals 124 128 19 (Derecognition) recognition of losses that arose in prior years (9 ) – 59 Remeasurement of deferred tax due to rate changes 32 (9 ) (201 ) Differences in overseas tax rates 6 (15 ) 10 Policyholder tax (62 ) (66 ) (57 ) Policyholder deferred tax asset in respect of life assurance expenses 73 – (184 ) Adjustments in respect of prior years (13 ) 88 64 Tax effect of share of results of joint ventures – (1 ) (1 ) Tax expense (1,560 ) (1,728 ) (1,724 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retained earnings [member] | |
EARNINGS PER SHARE (Tables) [Line Items] | |
Disclosure of earnings per share [text block] | 2018 £m 2017 2016 Profit attributable to equity shareholders – basic and diluted 3,869 3,392 1,651 Tax credit on distributions to other equity holders 106 102 91 3,975 3,494 1,742 2018 million 2017 million 2016 million Weighted average number of ordinary shares in issue – basic 71,638 71,710 71,234 Adjustment for share options and awards 641 683 790 Weighted average number of ordinary shares in issue – diluted 72,279 72,393 72,024 Basic earnings per share 5.5 p 4.9 p 2.4 p Diluted earnings per share 5.5 p 4.8 p 2.4 p |
FINANCIAL ASSETS AT FAIR VALU_3
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Trading And Other Financial Assets At Fair Value Through Profit Or Loss [Abstract] | |
Disclosure Of Trading And Other Financial Assets At Fair Value Through Profit Or Loss [Table Text Block] | These assets are comprised as follows: 31 December 2018 1 January 2018 31 December 2017 Trading Other financial Total Trading Other financial Total Trading Other financial Total Loans and advances to customers 26,886 10,964 37,850 29,976 11,434 41,410 29,976 – 29,976 Loans and advances to banks 848 2,178 3,026 1,614 2,582 4,196 1,614 – 1,614 Debt securities: Government securities 7,192 10,903 18,095 9,833 11,117 20,950 9,833 12,187 22,020 Other public sector securities – 2,064 2,064 – 1,543 1,543 – 1,527 1,527 Bank and building society certificates of deposit – 1,105 1,105 – 222 222 – 222 222 Asset-backed securities: Mortgage-backed securities 10 215 225 189 213 402 189 211 400 Other asset-backed securities 63 286 349 95 233 328 95 926 1,021 Corporate and other debt securities 247 18,063 18,310 523 19,707 20,230 523 19,467 19,990 7,512 32,636 40,148 10,640 33,035 43,675 10,640 34,540 45,180 Equity shares – 77,485 77,485 6 86,703 86,709 6 86,084 86,090 Treasury and other bills – 20 20 – 18 18 – 18 18 Total 35,246 123,283 158,529 42,236 133,772 176,008 42,236 120,642 162,878 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [text block] | Details of the Group’s hedging instruments are set out below: Maturity 31 December 2018 Up to 1 month 1-3 months 3-12 months 1-5 years Over 5 years Total Fair value hedges Interest rate Cross currency swap Notional – 36 – 283 171 490 Average fixed interest rate – 4.82 % – 5.88 % 4.44 % Average EUR/USD exchange rate – – – 1.13 – Average USD/GBP exchange rate – – – 1.30 – Average NOK/GBP exchange rate – 9.22 – 9.19 9.03 Interest rate swap Notional 393 417 32,876 86,451 30,834 150,971 Average fixed interest rate 1.38 % 2.06 % 1.65 % 1.75 % 2.98 % Cash flow hedges Foreign exchange Currency swap Notional 67 47 2,234 2,111 6,119 10,578 Average USD/EUR exchange rate 1.15 – 1.13 1.10 1.07 Average USD/GBP exchange rate – 1.32 1.34 1.27 1.28 Interest rate Interest rate swap Notional 4,874 11,204 66,312 292,712 181,843 556,945 Average fixed interest rate 1.47 % 1.03 % 0.99 % 1.46 % 1.85 % |
Swaps [Member] | |
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of hedge accounting [text block] | The carrying amounts of the Group’s hedging instruments are as follows: Carrying amount of the hedging instrument Contract/notional Assets Liabilities Changes in fair 31 December 2018 £m £m £m £m Fair value hedges Interest rate Currency swaps 490 3 29 (10 ) Interest rate swaps 150,971 947 187 104 Cash flow hedges Foreign exchange Currency swaps 10,578 255 48 229 Interest rate Interest rate swaps 556,945 358 844 (781 ) |
DebSecurities[Member] | |
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | The Group’s hedged items are as follows: Carrying amount of the hedged Accumulated amount of fair Change in fair Cash flow hedge/currency Assets Liabilities Assets Liabilities for Continuing Discontinued 31 December 2018 £m £m £m £m £m £m £m Fair value hedges Interest rate Fixed rate mortgages 1 53,136 – (45 ) – (173 ) Fixed rate issuance 2 – 63,746 – 1,598 807 Fixed rate bonds 3 23,285 – 232 – (666 ) Cash flow hedges Foreign exchange Foreign currency issuance 2 (165 ) 114 327 Customer deposits 4 (62 ) 70 (78 ) Interest rate Customer loans 1 456 867 60 Central bank balances 5 (16 ) 30 20 Customer deposits 4 (118 ) (9 ) (6 ) 1 Included within Loans and advances to customers 2 Included within Debt securities in issue 3 Included within Financial assets at fair value through other comprehensive income 4 Included within Customer deposits 5 Included within Cash and balances at central banks |
Change in fair value of hedged item for ineffectiveness assessment | |
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | Gains and losses arising from hedge accounting are summarised as follows: Amounts reclassified from reserves to Gain (loss) Hedge 1 Hedged item Income statement 31 December 2018 £m £m £m Fair value hedge Interest rate Fixed rate mortgages 106 Fixed rate issuance (17 ) Fixed rate bonds (27 ) Cash flow hedges Foreign exchange Foreign currency issuance 85 – (81 ) Interest expense Customer deposits (22 ) (2 ) (32 ) Interest expense Interest rate Customer loans (418 ) (17 ) (467 ) Interest income Central bank balances (63 ) (5 ) (52 ) Interest income Customer deposits (49 ) (1 ) (69 ) Interest expense 1 Hedge ineffectiveness is included in the income statement within net trading income. |
At fair value [member] | |
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The fair values and notional amounts of derivative instruments are set out in the following table: 31 December 2018 31 December 2017 Contract/ Fair value Fair value Contract/ Fair value Fair value Trading and other Exchange rate contracts: Spot, forwards and futures 41,571 746 549 31,716 1,023 789 Currency swaps 311,491 4,566 3,709 223,624 3,157 3,534 Options purchased 10,202 485 – 8,191 580 – Options written 11,393 – 495 6,684 – 627 374,657 5,797 4,753 270,215 4,760 4,950 Interest rate contracts: Interest rate swaps 4,381,271 13,624 12,629 2,264,834 15,791 15,364 Forward rate agreements 494,430 – 2 239,797 5 1 Options purchased 30,724 2,107 – 32,097 2,329 – Options written 26,463 – 1,997 32,817 – 2,524 Futures 128,211 16 4 35,542 9 7 5,061,099 15,747 14,632 2,605,087 18,134 17,896 Credit derivatives 13,757 99 181 4,568 77 423 Equity and other contracts 15,145 389 699 25,150 982 1,242 Total derivative assets/liabilities – trading and other 5,464,658 22,032 20,265 2,905,020 23,953 24,511 Hedging Derivatives designated as fair value hedges: Currency swaps 490 3 29 1,327 19 38 Interest rate swaps 150,971 947 187 109,670 1,145 407 151,461 950 216 110,997 1,164 445 Derivatives designated as cash flow hedges: Interest rate swaps 556,945 358 844 549,099 597 1,053 Futures – – – 73,951 – 1 Currency swaps 10,578 255 48 7,310 120 114 567,523 613 892 630,360 717 1,168 Total derivative assets/liabilities – hedging 718,984 1,563 1,108 741,357 1,881 1,613 Total recognised derivative assets/liabilities 6,183,642 23,595 21,373 3,646,377 25,834 26,124 |
FINANCIAL ASSETS AT AMORTISED_2
FINANCIAL ASSETS AT AMORTISED COST (Tables) - Financial assets at amortised cost, category [member] | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL ASSETS AT AMORTISED COST (Tables) [Line Items] | |
Disclosure of loans and advances to customers [text block] | Stage 1 Stage 2 Stage 3 Purchased or Total At 31 December 2017 474,699 Adjustment on adoption of IFRS 9 (note 54) (10,460 ) At 1 January 2018 403,881 37,245 5,140 17,973 464,239 Exchange and other movements 958 32 – – 990 Additions (repayments) 34,942 (2,187 ) (2,074 ) (2,609 ) 28,072 Transfers to Stage 1 19,524 (19,501 ) (23 ) – Transfers to Stage 2 (15,743 ) 15,996 (253 ) – Transfers to Stage 3 (2,031 ) (2,220 ) 4,251 – 1,750 (5,725 ) 3,975 – Recoveries – – 553 27 580 Disposal of businesses – (4,020 ) (277 ) – (4,297 ) Financial assets that have been written off during the year (1,576 ) – (1,576 ) At 31 December 2018 441,531 25,345 5,741 15,391 488,008 Allowance for impairment losses (525 ) (994 ) (1,553 ) (78 ) (3,150 ) Total loans and advances to customers 441,006 24,351 4,188 15,313 484,858 |
Disclosure of loans and advances to banks [text block] | Stage 1 Stage 2 Stage 3 Purchased or Total At 31 December 2017 6,611 Adjustment on adoption of IFRS 9 (note 54) (2,364 ) At 1 January 2018 4,245 2 – – 4,247 Exchange and other movements (29 ) 1 – – (28 ) Additions (repayments) 2,066 – – – 2,066 At 31 December 2018 6,282 3 – – 6,285 Allowance for impairment losses (2 ) – – – (2 ) Total loans and advances to banks 6,280 3 – – 6,283 |
Disclosure of debt instruments [text block] | Stage 1 Stage 2 Stage 3 Purchased or Total At 31 December 2017 3,669 Adjustment on adoption of IFRS 9 (note 54) (329 ) At 1 January 2018 3,291 – 49 – 3,340 Exchange and other movements 77 – (14 ) – 63 Additions (repayments) 1,870 – – – 1,870 Financial assets that have been written off during the year (29 ) – (29 ) At 31 December 2018 5,238 – 6 – 5,244 Allowance for impairment losses – – (6 ) – (6 ) Total debt securities 5,238 – – – 5,238 Total financial assets at amortised cost 452,524 24,354 4,188 15,313 496,379 |
FINANCE LEASE RECEIVABLES (Tabl
FINANCE LEASE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Gross [Member] | |
FINANCE LEASE RECEIVABLES (Tables) [Line Items] | |
Disclosure of maturity analysis of finance lease payments receivable [text block] | The Group’s finance lease receivables are classified as loans and advances to customers and accounted for at amortised cost. The balance is analysed as follows: 2018 2017 Gross investment in finance leases, receivable: Not later than 1 year 458 680 Later than 1 year and not later than 5 years 1,351 1,106 Later than 5 years 1,104 1,053 2,913 2,839 Unearned future finance income on finance leases (1,068 ) (692 ) Rentals received in advance (23 ) (53 ) Net investment in finance leases 1,822 2,094 |
Net [Member] | |
FINANCE LEASE RECEIVABLES (Tables) [Line Items] | |
Disclosure of maturity analysis of finance lease payments receivable [text block] | The net investment in finance leases represents amounts recoverable as follows: 2018 2017 Not later than 1 year 152 546 Later than 1 year and not later than 5 years 679 887 Later than 5 years 991 661 Net investment in finance leases 1,822 2,094 |
ALLOWANCE FOR IMPAIRMENT LOSS_2
ALLOWANCE FOR IMPAIRMENT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ALLOWANCE FOR IMPAIRMENT LOSSES (Tables) [Line Items] | |
Disclosure of movement in the allowance for impairment losses | ANALYSIS OF MOVEMENT IN THE ALLOWANCE FOR IMPAIRMENT LOSSES BY STAGE Stage 1 Stage 2 Stage 3 Purchased or Total In respect of drawn balances Balance at 31 December 2017 2,227 Adjustment on adoption of IFRS 9 (note 54) 1,033 Balance at 1 January 2018 590 1,147 1,491 32 3,260 Exchange and other adjustments 2 – 133 – 135 Transfers to Stage 1 304 (299 ) (5 ) – Transfers to Stage 2 (46 ) 85 (39 ) – Transfers to Stage 3 (32 ) (131 ) 163 – Impact of transfers between stages (233 ) 401 325 493 (7 ) 56 444 493 Other items charged to the income statement (58 ) (107 ) 696 – 531 Charge to the income statement (note 13) (65 ) (51 ) 1,140 – 1,024 Advances written off (1,605 ) – (1,605 ) Disposal of businesses 1 – (102 ) (79 ) – (181 ) Recoveries of advances written off in previous years 553 27 580 Discount unwind (63 ) 19 (44 ) At 31 December 2018 527 994 1,570 78 3,169 In respect of undrawn balances Balance at 31 December 2017 30 Adjustment on adoption of IFRS 9 (note 54) 243 Balance at 1 January 2018 147 126 – – 273 Exchange and other adjustments (5 ) (14 ) 12 – (7 ) Transfers to Stage 1 28 (28 ) – – Transfers to Stage 2 (6 ) 6 – – Transfers to Stage 3 (2 ) (5 ) 7 – Impact of transfers between stages (25 ) 22 (5 ) (8 ) (5 ) (5 ) 2 (8 ) Other items charged to the income statement (14 ) (43 ) (8 ) – (65 ) Charge to the income statement (note 13) (19 ) (48 ) (6 ) – (73 ) At 31 December 2018 123 64 6 – 193 Total 650 1,058 1,576 78 3,362 In respect of: Loans and advances to banks 2 – – – 2 Loans and advances to customers 525 994 1,553 78 3,150 Debt securities – – 6 – 6 Financial assets at amortised cost 527 994 1,559 78 3,158 Other assets – – 11 – 11 Provisions in relation to loan commitments and financial guarantees 123 64 6 – 193 Total 650 1,058 1,576 78 3,362 Expected credit loss in respect of financial assets at fair value through other comprehensive income (memorandum item) 1 – – – 1 1 Reflects the sale of the Group’s Irish mortgage portfolio. |
Disclosure of impairment [text block] | Stage 1 Stage 2 Stage 3 Purchased or Total Year ended 31 December 2018 Impact of transfers between stages (12 ) 51 446 – 485 Other changes in credit quality (20 ) (47 ) 541 69 543 Additions (repayments) 18 (82 ) 43 (69 ) (90 ) Methodology changes (71 ) (21 ) 72 – (20 ) Other items (13 ) – 32 – 19 Other items impacting the impairment charge (86 ) (150 ) 688 – 452 Total impairment (98 ) (99 ) 1,134 – 937 In respect of: Loans and advances to banks 1 – – – 1 Loans and advances to customers (66 ) (51 ) 1,139 – 1,022 Debt securities – – – – – Financial assets at amortised cost (65 ) (51 ) 1,139 – 1,023 Other assets – – 1 – 1 Impairment charge on drawn balances (65 ) (51 ) 1,140 – 1,024 Loan commitments and financial guarantees (19 ) (48 ) (6 ) – (73 ) Financial assets at fair value through other comprehensive income (14 ) – – – (14 ) Total impairment (98 ) (99 ) 1,134 – 937 |
Disclosure of allowance for Credit Losses Explanatory [text block] | Loans and Debt Total At 1 January 2017 2,412 76 2,488 Exchange and other adjustments 132 – 132 Advances written off (1,499 ) (44 ) (1,543 ) Recoveries of advances written off in previous years 482 – 482 Unwinding of discount (23 ) – (23 ) Charge (release) to the income statement (note 13) 697 (6 ) 691 At 31 December 2017 2,201 26 2,227 |
Impairment charged to the income statement | |
ALLOWANCE FOR IMPAIRMENT LOSSES (Tables) [Line Items] | |
Disclosure of impairment [text block] | The Group income statement charge comprises: £m Drawn balances 1,024 Undrawn balances (73 ) Financial assets at fair value through other comprehensive income (14 ) Total 937 |
FINANCIAL ASSETS AT FAIR VALU_4
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial assets at fair value through profit or loss, classified as held for trading, category [member] | |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Tables) [Line Items] | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [text block] | 31 December 1 January Debt securities: Government securities 18,971 34,708 Bank and building society certificates of deposit 118 167 Asset-backed securities: Mortgage-backed securities 120 2,381 Other asset-backed securities 131 467 Corporate and other debt securities 5,151 4,615 24,491 42,338 Treasury and other bills 303 – Equity shares 21 579 Total financial assets at fair value through other comprehensive income 24,815 42,917 |
AVAILABLE-FOR-SALE FINANCIAL _2
AVAILABLE-FOR-SALE FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial assets available-for-sale, category [member] | |
AVAILABLE-FOR-SALE FINANCIAL ASSETS (Tables) [Line Items] | |
Disclosure of Available-For-Sale Financial Assets [text block] | 2017 Debt securities: Government securities 34,708 Bank and building society certificates of deposit 167 Asset-backed securities: Mortgage-backed securities 1,156 Other asset-backed securities 255 Corporate and other debt securities 4,615 40,901 Equity shares 1,197 Total available-for-sale financial assets 42,098 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of goodwill [text block] [Abstract] | |
Disclosure of reconciliation of changes in goodwill [text block] | 2018 2017 At 1 January 2,310 2,016 Acquisition of businesses – 302 Impairment charged to the income statement (note 11) – (8 ) At 31 December 2,310 2,310 Cost 1 2,664 2,664 Accumulated impairment losses (354 ) (354 ) At 31 December 2,310 2,310 1 For acquisitions made prior to 1 January 2004, the date of transition to IFRS, cost is included net of amounts amortised up to 31 December 2003. |
VALUE OF IN-FORCE BUSINESS (Tab
VALUE OF IN-FORCE BUSINESS (Tables) - In-Force [Member] | 12 Months Ended |
Dec. 31, 2018 | |
VALUE OF IN-FORCE BUSINESS (Tables) [Line Items] | |
Disclosure of range of yields and other key assumptions | The table below shows the resulting range of yields and other key assumptions at 31 December: 2018 2017 Risk-free rate (value of in-force non-annuity business) 1 0.00 to 4.05 0.00 to 4.20 Risk-free rate (value of in-force annuity business) 1 1.28 to 5.33 1.14 to 5.34 Risk-free rate (financial options and guarantees) 1 0.00 to 4.05 0.00 to 4.20 Retail price inflation 3.43 3.43 Expense inflation 3.75 3.67 1 All risk-free rates are quoted as the range of rates implied by the relevant forward swap curve. |
Disclosure Of Gross Value Of In-Force Business Asset Explanatory [Text Block] | The gross value of in-force business asset in the consolidated balance sheet is as follows: 2018 2017 Acquired value of in-force non-participating investment contracts 271 306 Value of in-force insurance and participating investment contracts 4,491 4,533 Total value of in-force business 4,762 4,839 |
Nonparticipating Life Insurance Contract [Member] | |
VALUE OF IN-FORCE BUSINESS (Tables) [Line Items] | |
Disclosure Of Movement Of Value In Force Explanatory [Text Block] | The movement in the acquired value of in-force non-participating investment contracts over the year is as follows: 2018 2017 At 1 January 306 340 Acquisition of business 5 – Amortisation (note 11) (40 ) (34 ) At 31 December 271 306 |
Participating Life Insurance Contract [Member] | |
VALUE OF IN-FORCE BUSINESS (Tables) [Line Items] | |
Disclosure Of Movement Of Value In Force Explanatory [Text Block] | The movement in the value of in-force insurance and participating investment contracts over the year 2018 2017 At 1 January 4,533 4,702 Exchange and other adjustments 13 (4 ) Movements in the year: New business 675 348 Existing business: Expected return (304 ) (318 ) Experience variances (122 ) (226 ) Assumption changes (67 ) (238 ) Economic variance (237 ) 269 Movement in the value of in-force business (note 9) (55 ) (165 ) At 31 December 4,491 4,533 |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of intangible assets [text block] [Abstract] | |
Disclosure of detailed information about intangible assets [text block] | Brands Core deposit Purchased Customer- Capitalised Total Cost: At 1 January 2017 596 2,770 315 538 2,167 6,386 Acquisition of businesses – – 702 – – 702 Additions – – – – 850 850 Disposals – – – – (77 ) (77 ) At 31 December 2017 596 2,770 1,017 538 2,940 7,861 Additions – – – – 1,046 1,046 Disposals – – (15 ) – (55 ) (70 ) At 31 December 2018 596 2,770 1,002 538 3,931 8,837 Accumulated amortisation: At 1 January 2017 171 2,757 311 499 967 4,705 Charge for the year 22 13 44 20 293 392 Disposals – – – – (71 ) (71 ) At 31 December 2017 193 2,770 355 519 1,189 5,026 Charge for the year 23 – 71 19 400 513 Disposals – – (15 ) – (34 ) (49 ) At 31 December 2018 216 2,770 411 538 1,555 5,490 Balance sheet amount at 31 December 2018 380 – 591 – 2,376 3,347 Balance sheet amount at 31 December 2017 403 – 662 19 1,751 2,835 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of property, plant and equipment [text block] [Abstract] | |
Disclosure of detailed information about property, plant and equipment [text block] | Investment properties £m Premises £m Equipment £m Operating lease assets £m Total £m Cost or valuation: At 1 January 2017 3,764 2,550 5,965 6,206 18,485 Exchange and other adjustments – (37 ) – (44 ) (81 ) Acquisition of businesses – 3 3 – 6 Additions – 70 382 2,262 2,714 Expenditure on investment properties (see below) 209 – – – 209 Change in fair value of investment properties (note 7) 230 – – – 230 Disposals (504 ) (795 ) (1,282 ) (1,896 ) (4,477 ) At 31 December 2017 3,699 1,791 5,068 6,528 17,086 Exchange and other adjustments – – (6 ) 11 5 Additions – 72 519 1,755 2,346 Expenditure on investment properties (see below) 143 – – – 143 Change in fair value of investment properties (note 7) 139 – – – 139 Disposals (211 ) (647 ) (574 ) (1,540 ) (2,972 ) At 31 December 2018 3,770 1,216 5,007 6,754 16,747 Accumulated depreciation and impairment: At 1 January 2017 – 1,333 2,671 1,509 5,513 Exchange and other adjustments – (8 ) (9 ) (34 ) (51 ) Depreciation charge for the year – 125 734 1,085 1,944 Disposals – (722 ) (1,271 ) (1,054 ) (3,047 ) At 31 December 2017 – 728 2,125 1,506 4,359 Exchange and other adjustments – 1 (8 ) 6 (1 ) Depreciation charge for the year – 121 715 1,016 1,852 Disposals – (634 ) (534 ) (595 ) (1,763 ) At 31 December 2018 – 216 2,298 1,933 4,447 Balance sheet amount at 31 December 2018 3,770 1,000 2,709 4,821 12,300 Balance sheet amount at 31 December 2017 3,699 1,063 2,943 5,022 12,727 |
Disclosure of detailed information about investment property [text block] | Expenditure on investment properties is comprised as follows: 2018 2017 Acquisitions of new properties 81 82 Additional expenditure on existing properties 62 127 143 209 |
Disclosure Of Minimum Lease Payments Receivable Under Noncancellable Operating Lease Explanatory | At 31 December the future minimum rentals receivable under non-cancellable operating leases were as follows: 2018 2017 Receivable within 1 year 1,095 1,301 1 to 5 years 1,156 1,419 Over 5 years 6 128 Total future minimum rentals receivable 2,257 2,848 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other assets [text block] [Abstract] | |
Disclosure of prepayments and other assets [text block] | 2018 2017 Assets arising from reinsurance contracts held (notes 31 and 33) 749 602 Deferred acquisition and origination costs 90 104 Settlement balances 743 720 Corporate pension asset 7,111 7,786 Investments in joint ventures and associates 91 65 Other assets and prepayments 3,742 4,260 Total other assets 12,526 13,537 |
FINANCIAL LIABILITIES AT FAIR_2
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial liabilities at fair value through profit or loss, category [member] | |
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Tables) [Line Items] | |
Disclosure of financial instruments designated at fair value through profit or loss [text block] | 2018 2017 Liabilities designated at fair value through profit or loss: Debt securities in issue 7,085 7,812 Other 11 3 7,096 7,815 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements 21,595 41,378 Other deposits 242 381 Short positions in securities 1,614 1,303 23,451 43,062 Financial liabilities at fair value through profit or loss 30,547 50,877 |
DEBT SECURITIES IN ISSUE (Table
DEBT SECURITIES IN ISSUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of debt instruments [text block] [Abstract] | |
Disclosure of Debt Securities in Issue [Text Block] | 2018 2017 Medium-term notes issued 37,490 29,418 Covered bonds (note 30) 28,194 26,132 Certificates of deposit issued 12,020 9,999 Securitisation notes (note 30) 5,426 3,660 Commercial paper 8,038 3,241 Total debt securities in issue 91,168 72,450 |
SECURITISATIONS AND COVERED B_2
SECURITISATIONS AND COVERED BONDS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Securitisations Programmes And Transactions [Abstract] | |
Information about Securitisation programmes and transactions | The Group’s principal securitisation and covered bond programmes, together with the balances of the advances subject to these arrangements and the carrying value of the notes in issue at 31 December, are listed below. The notes in issue are reported in note 29. 2018 2017 Loans and Notes Loans and Notes Securitisation programmes UK residential mortgages 25,018 22,485 21,158 14,105 Commercial loans 5,746 6,577 6,616 7,001 Credit card receivables 8,060 5,263 7,701 4,090 Motor vehicle finance 2,850 2,855 – – 41,674 37,180 35,475 25,196 Less held by the Group (31,701 ) (21,536 ) Total securitisation programmes (notes 28 and 29) 1 5,479 3,660 Covered bond programmes Residential mortgage-backed 34,963 27,694 30,361 25,632 Social housing loan-backed 1,839 1,200 1,628 1,200 36,802 28,894 31,989 26,832 Less held by the Group (700 ) (700 ) Total covered bond programmes (note 29) 28,194 26,132 Total securitisation and covered bond programmes 33,673 29,792 1 Includes £53 million (2017: £nil) of securitisation notes held at fair value through profit or loss. |
LIABILITIES ARISING FROM INSU_2
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items] | |
Disclosure of types of insurance contracts [text block] | Insurance contract and participating investment contract liabilities are comprised as follows: 2018 2017 Gross Reinsurance 1 Net Gross 1 Reinsurance 2 Net Life insurance (see (1) below): Insurance contracts 84,366 (716 ) 83,650 86,949 (563 ) 86,386 Participating investment contracts 13,912 – 13,912 15,881 – 15,881 98,278 (716 ) 97,562 102,830 (563 ) 102,267 Non-life insurance contracts (see (2) below): Unearned premiums 342 (13 ) 329 358 (13 ) 345 Claims outstanding 254 – 254 225 – 225 596 (13 ) 583 583 (13 ) 570 Total 98,874 (729 ) 98,145 103,413 (576 ) 102,837 1 During the year the Group has reviewed the classification of pre-2007 unitised pension savings products and as a result these products have been reclassified from insurance contracts to participating investment contracts; comparatives have been restated accordingly. 2 Reinsurance balances are reported within other assets (note 27). |
Disclosure of provisions for unearned premiums [text block] | The movements in non-life insurance contract liabilities and reinsurance assets over the year have been as follows: 2018 £m 2017 £m Provisions for unearned premiums Gross provision at 1 January 358 404 Increase in the year 681 724 Release in the year (697 ) (770 ) Change in provision for unearned premiums charged to income statement (16 ) (46 ) Gross provision at 31 December 342 358 Reinsurers’ share (13 ) (13 ) Net provision at 31 December 329 345 |
Participating Life Insurance Contract [Member] | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items] | |
Disclosure of Life Insurance and Participating Contract Liabilities [text block] | The movement in life insurance contract and participating investment contract liabilities over the year can be analysed as follows: Insurance contracts £m Participating investment contracts £m Gross £m Reinsurance £m Net £m At 1 January 2017 77,881 15,896 93,777 (671 ) 93,106 New business 4,154 43 4,197 (21 ) 4,176 Changes in existing business 4,928 (58 ) 4,870 129 4,999 Change in liabilities charged to the income statement (note 10) 9,082 (15 ) 9,067 108 9,175 Exchange and other adjustments (14 ) – (14 ) – (14 ) At 31 December 2017 86,949 15,881 102,830 (563 ) 102,267 New business 5,476 31 5,507 (42 ) 5,465 Changes in existing business (8,072 ) (2,000 ) (10,072 ) (111 ) (10,183 ) Change in liabilities charged to the income statement (note 10) (2,596 ) (1,969 ) (4,565 ) (153 ) (4,718 ) Exchange and other adjustments 13 – 13 – 13 At 31 December 2018 84,366 13,912 98,278 (716 ) 97,562 |
Nonparticipating Life Insurance Contract [Member] | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items] | |
Disclosure of Liabilities for Insurance Contracts and Participating Investment Contracts [text block] | Liabilities for insurance contracts and participating investment contracts can be split into with-profit fund liabilities, accounted for using the PRA’s realistic capital regime (realistic liabilities) and non-profit fund liabilities, accounted for using a prospective actuarial discounted cash flow methodology, as follows: 2018 2017 With-profit Non-profit Total With-profit Non-profit Total Insurance contracts 7,851 76,515 84,366 8,946 78,003 86,949 Participating investment contracts 7,438 6,474 13,912 8,481 7,400 15,881 Total 15,289 82,989 98,278 17,427 85,403 102,830 |
Claims outstanding [Member] | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items] | |
Disclosure of Insurance Claims Outstanding [text block] | These provisions represent the liability for short-term insurance contracts for which the Group’s obligations are not expired at the year end. 2018 £m 2017 £m Claims outstanding Gross claims outstanding at 1 January 225 209 Cash paid for claims settled in the year (306 ) (321 ) Increase/(decrease) in liabilities charged to the income statement 1 335 337 29 16 Gross claims outstanding at 31 December 254 225 Reinsurers’ share – – Net claims outstanding at 31 December 254 225 Notified claims 170 174 Incurred but not reported 84 51 Net claims outstanding at 31 December 254 225 1 Of which an increase of £367 million (2017: £350 million) was in respect of current year claims and a decrease of £32 million (2017: a decrease of £13 million) was in respect of prior year claims. |
LIFE INSURANCE SENSITIVITY AN_2
LIFE INSURANCE SENSITIVITY ANALYSIS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
6311 Life Insurance [Member] | |
LIFE INSURANCE SENSITIVITY ANALYSIS (Tables) [Line Items] | |
Disclosure of accounting judgements and estimates [text block] | 2018 2017 Change in Increase (reduction in profit before tax £m ) Increase (reduction in equity £m ) Increase (reduction in profit before tax £m ) Increase (reduction in equity £m ) Non-annuitant mortality and morbidity 1 5% reduction 22 18 23 19 Annuitant mortality 2 5% reduction (234 ) (194 ) (221 ) (184 ) Lapse rates 3 10% reduction 89 74 75 62 Future maintenance and investment expenses 4 10% reduction 262 217 289 240 Risk-free rate 5 0.25% reduction 76 63 (40 ) (33 ) Guaranteed annuity option take up 6 5% addition (3 ) (2 ) (6 ) (5 ) Equity investment volatility 7 1% addition (5 ) (4 ) (7 ) (6 ) Widening of credit default spreads on corporate bonds 8 0.25% addition (364 ) (303 ) (235 ) (195 ) Increase in illiquidity premia 9 0.10% addition 153 127 145 120 1 This sensitivity shows the impact of reducing mortality and morbidity rates on non-annuity business to 95 per cent of the expected rate. 2 This sensitivity shows the impact on the annuity and deferred annuity business of reducing mortality rates to 95 per cent of the expected rate. 3 This sensitivity shows the impact of reducing lapse and surrender rates to 90 per cent of the expected rate. 4 This sensitivity shows the impact of reducing maintenance expenses and investment expenses to 90 per cent of the expected rate. 5 This sensitivity shows the impact on the value of in-force business, financial options and guarantee costs, statutory reserves and asset values of reducing the risk-free rate by 25 basis points. 6 This sensitivity shows the impact of a flat 5 per cent addition to the expected rate. 7 This sensitivity shows the impact of a flat 1 per cent addition to the expected rate. 8 This sensitivity shows the impact of a 25 basis point increase in credit default spreads on corporate bonds and the corresponding reduction in market values. Swap curves, the risk-free rate and illiquidity premia are all assumed to be unchanged. 9 This sensitivity shows the impact of a 10 basis point increase in the allowance for illiquidity premia. It assumes the overall spreads on assets are unchanged and hence market values are unchanged. Swap curves and the non-annuity risk-free rate are both assumed to be unchanged. The increased illiquidity premium increases the annuity risk-free rate. |
LIABILITIES ARISING FROM NON-_2
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of investment contracts liabilities [text block] [Abstract] | |
Disclosure of investment contract liabilities explanatory | 2018 £m 2017 £m At 1 January 15,447 20,112 New business 668 608 Changes in existing business (2,262 ) (5,273 ) At 31 December 13,853 15,447 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other liabilities [text block] [Abstract] | |
Disclosure Of Other Liabilities | 2018 £m 2017 £m Settlement balances 485 501 Unitholders’ interest in Open Ended Investment Companies 12,933 14,480 Unallocated surplus within insurance businesses 382 390 Other creditors and accruals 5,833 5,359 Total other liabilities 19,633 20,730 |
DEFERRED TAX (Tables)
DEFERRED TAX (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of deferred taxes [text block] [Abstract] | |
Disclosure Of Deferred Taxes | The Group’s deferred tax assets and liabilities are as follows: Statutory position Tax disclosure 2018 2017 2018 2017 Deferred tax assets 2,453 2,284 4,731 4,989 Deferred tax liabilities – – (2,278 ) (2,705 ) Asset at 31 December 2,453 2,284 2,453 2,284 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Movements in deferred tax liabilities and assets (before taking into consideration the offsetting of balances within the same taxing jurisdiction) can be summarised as follows: Deferred tax assets Tax losses Property, Pension Provisions Share-based Other Total At 1 January 2017 4,298 969 228 40 61 38 5,634 (Charge) credit to the income statement (264 ) (226 ) (287 ) (7 ) 7 (28 ) (805 ) (Charge) credit to other comprehensive income – – 149 25 – – 174 Other (charge) credit to equity – – – – (17 ) – (17 ) Impact of acquisitions and disposals – – – – – 3 3 At 31 December 2017 4,034 743 90 58 51 13 4,989 Adjustment on adoption of IFRS 9 and IFRS 15 (note 54) – – – 322 – 3 325 At 1 January 2018 4,034 743 90 380 51 16 5,314 (Charge) credit to the income statement (256 ) (100 ) 64 (45 ) (6 ) (5 ) (348 ) (Charge) credit to other comprehensive income – – (92 ) (138 ) – – (230 ) Other (charge) credit to equity – – – – (5 ) – (5 ) At 31 December 2018 3,778 643 62 197 40 11 4,731 Deferred tax liabilities Long-term assurance business £m Acquisition fair value £m Pension assets £m Derivatives £m Asset revaluations 1 £m Other temporary differences £m Total £m At 1 January 2017 (914 ) (798 ) (85 ) (643 ) (234 ) (254 ) (2,928 ) (Charge) credit to the income statement 115 76 199 (139 ) (40 ) 116 327 (Charge) credit to other comprehensive income – – (295 ) 283 67 – 55 Impact of acquisitions and disposals – (157 ) – – – (2 ) (159 ) At 31 December 2017 (799 ) (879 ) (181 ) (499 ) (207 ) (140 ) (2,705 ) (Charge) credit to the income statement 162 142 (67 ) (19 ) (33 ) 7 192 (Charge) credit to other comprehensive income – – (25 ) 113 141 – 229 Exchange and other adjustments – – – – – 6 6 At 31 December 2018 (637 ) (737 ) (273 ) (405 ) (99 ) (127 ) (2,278 ) 1 Financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets). |
OTHER PROVISIONS (Tables)
OTHER PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of other provisions [text block] [Abstract] | |
Disclosure of other provisions [text block] | Provisions for Payment Other Vacant Other Total At 31 December 2017 30 2,778 1,292 56 1,390 5,546 Adjustment on adoption of IFRS 9 (note 54) 243 243 Balance at 1 January 2018 273 5,789 Exchange and other adjustments (7 ) 100 1 – 41 135 Provisions applied – (2,104 ) (1,032 ) (44 ) (619 ) (3,799 ) Charge for the year (73 ) 750 600 50 95 1,422 At 31 December 2018 193 1,524 861 62 907 3,547 |
SUBORDINATED LIABILITIES (Table
SUBORDINATED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SUBORDINATED LIABILITIES (Tables) [Line Items] | |
Disclosure of movement in subordinated liabilities [text block] | The movement in subordinated liabilities during the year was as follows: Preference Preferred Undated Dated Total At 1 January 2017 864 4,134 599 14,234 19,831 Repurchases and redemptions during the year 1 – (237 ) – (771 ) (1,008 ) Foreign exchange movements (43 ) (221 ) (34 ) (487 ) (785 ) Other movements (all non-cash) (8 ) 14 – (122 ) (116 ) At 31 December 2017 813 3,690 565 12,854 17,922 Issued during the year 1 – – – 1,729 1,729 Repurchases and redemptions during the year 1 – (614 ) – (1,642 ) (2,256 ) Foreign exchange movements 18 131 20 377 546 Other movements (all non-cash) (28 ) (2 ) 3 (258 ) (285 ) At 31 December 2018 803 3,205 588 13,060 17,656 1 The repurchases and redemptions resulted in cash outflows of £2,256 million (2017: £1,008 million). |
Disclosure of repurchase and reverse repurchase agreements [text block] | Repurchases and redemptions during 2018 Preferred securities £m 6.461% Guaranteed Non-voting Non-cumulative Perpetual Preferred Securities 600 Undated Perpetual Preferred Securities 14 614 Dated subordinated liabilities £m 10.5% Subordinated Bonds callable 2018 150 6.75% Subordinated Fixed Rate Notes callable 2018 1,492 1,642 Repurchases and redemptions during 2017 Preferred securities £m 7.627% Fixed to Floating Rate Guaranteed Non-voting Non-cumulative 163 Preferred Securities 4.385% Step-up Perpetual Capital Securities callable 2017 (€750 million) 74 237 Dated subordinated liabilities £m Subordinated Callable Notes 2017 771 771 |
Dated subordinated liabilities [Member] | |
SUBORDINATED LIABILITIES (Tables) [Line Items] | |
Disclosure of movement in subordinated liabilities [text block] | Issued during 2018 Dated subordinated liabilities £m 1.75% Subordinated Fixed Rate Notes 2028 callable 2023 664 4.344% Subordinated Fixed Rate Notes callable 2048 1,065 1,729 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of issued capital [text block] [Abstract] | |
Disclosure of classes of share capital [text block] | 2018 2017 2016 2018 2017 2016 Ordinary shares of 10p (formerly 25p) each At 1 January 71,972,949,589 71,373,735,357 71,373,735,357 7,197 7,138 7,138 Issued under employee share schemes 768,551,098 518,293,181 – 77 51 – Share buy-back programme (note 41) (1,577,908,423 ) – – (158 ) – – Redesignation of limited voting ordinary shares (see below) – 80,921,051 – – 8 – At 31 December 71,163,592,264 71,972,949,589 71,373,735,357 7,116 7,197 7,138 Limited voting ordinary shares of 10p (formerly 25p) each At 1 January – 80,921,051 80,921,051 – 8 8 Redesignation to ordinary shares (see below) – (80,921,051 ) – – (8 ) – At 31 December – – 80,921,051 – – 8 Total issued share capital 7,116 7,197 7,146 |
SHARE PREMIUM ACCOUNT (Tables)
SHARE PREMIUM ACCOUNT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure For Share Premium Account Explanatory [Abstract] | |
Disclosure of share premium accounts | 2018 2017 2016 At 1 January 17,634 17,622 17,412 Issued under employee share schemes 85 12 – Redemption of preference shares 1 – – 210 At 31 December 17,719 17,634 17,622 1 During the year ended 31 December 2016, the Company redeemed all of its outstanding 6.267% Non-cumulative Fixed to Floating Rate Callable US Dollar Preference Shares at their combined sterling equivalent par value of £210 million. These preference shares had been accounted for as subordinated liabilities. On redemption an amount of £210 million was transferred from the distributable merger reserve to the share premium account. |
OTHER RESERVES (Tables)
OTHER RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER RESERVES (Tables) [Line Items] | |
Disclosure of Merger Reserve [text block] | The foreign currency translation reserve represents the cumulative after-tax gains and losses on the translation of foreign operations and exchange differences arising on financial instruments designated as hedges of the Group’s net investment in foreign operations. 2018 2017 2016 Merger reserve At 1 January 7,766 7,766 7,976 Redemption of preference shares (note 40) – – (210 ) At 31 December 7,766 7,766 7,766 |
Disclosure of capital redemption reserve text block | 2018 £m 2017 2016 Capital redemption reserve At 1 January 4,115 4,115 4,115 Shares cancelled under share buy-back programme (see below) 158 – – At 31 December 4,273 4,115 4,115 |
Financial assets available-for-sale, category [member] | |
OTHER RESERVES (Tables) [Line Items] | |
Disclosure of Movement in Other Reserves [text block] | Movements in other reserves were as follows: 2017 2016 Revaluation reserve in respect of available-for-sale financial assets At 1 January 759 (438 ) Adjustment on transfer from held-to-maturity portfolio – 1,544 Deferred tax – (417 ) – 1,127 Change in fair value of available-for-sale financial assets 303 356 Deferred tax (26 ) (25 ) Current tax (4 ) (3 ) 273 328 Income statement transfers: Disposals (note 9) (446 ) (575 ) Deferred tax 93 196 Current tax – (52 ) (353 ) (431 ) Impairment 6 173 Deferred tax – – 6 173 At 31 December 685 759 |
Reserve of cash flow hedges [member] | |
OTHER RESERVES (Tables) [Line Items] | |
Disclosure of Movement in Other Reserves [text block] | 2018 £m 2017 2016 Cash flow hedging reserve At 1 January 1,405 2,136 727 Change in fair value of hedging derivatives 234 (363 ) 2,432 Deferred tax (69 ) 121 (610 ) 165 (242 ) 1,822 Income statement transfers (note 5) (701 ) (651 ) (557 ) Deferred tax 182 162 144 (519 ) (489 ) (413 ) At 31 December 1,051 1,405 2,136 |
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | |
OTHER RESERVES (Tables) [Line Items] | |
Revaluation reserve in respect of debt securities text block | 2018 Revaluation reserve in respect of debt securities held at fair value through other comprehensive income At 31 December 2017 Adjustment on adoption of IFRS 9 (note 54) 472 At 1 January 2018 472 Change in fair value (37 ) Deferred tax 35 Current tax – (2 ) Income statement transfers: Disposals (note 9) (275 ) Deferred tax 84 Current tax – (191 ) At 31 December 2018 279 |
Revaluation reserve in respect of equity shares text block | 2018 £m Revaluation reserve in respect of equity shares held at fair value through other comprehensive income At 31 December 2017 Adjustment on adoption of IFRS 9 (note 54) (49 ) At 1 January 2018 (49 ) Change in fair value (97 ) Deferred tax 22 Current tax – (75 ) Realised gains and losses transferred to retained profits 151 Deferred tax (22 ) Current tax – 129 At 31 December 2018 5 |
Foreign currency translation reserve [member] | |
OTHER RESERVES (Tables) [Line Items] | |
Disclosure of Movement in Other Reserves [text block] | 2018 £m 2017 2016 Foreign currency translation reserve At 1 January (156 ) (124 ) (120 ) Currency translation differences arising in the year (8 ) (21 ) (110 ) Foreign currency gains on net investment hedges (tax: £nil) – (11 ) 106 At 31 December (164 ) (156 ) (124 ) |
Other reserves [member] | |
OTHER RESERVES (Tables) [Line Items] | |
Disclosure of other reserves [text block] | 2018 2017 2016 Other reserves comprise: Merger reserve 7,766 7,766 7,766 Capital redemption reserve 4,273 4,115 4,115 Revaluation reserve in respect of debt securities held at fair value through other comprehensive income 279 Revaluation reserve in respect of equity shares held at fair value through other comprehensive income 5 Revaluation reserve in respect of available-for-sale financial assets 685 759 Cash flow hedging reserve 1,051 1,405 2,136 Foreign currency translation reserve (164 ) (156 ) (124 ) At 31 December 13,210 13,815 14,652 |
RETAINED PROFITS (Tables)
RETAINED PROFITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retained earnings [member] | |
RETAINED PROFITS (Tables) [Line Items] | |
Disclosure Of Retained Earnings [text block] | 2018 2017 2016 At 31 December 2017 4,905 Adjustment on adoption of IFRS 9 and IFRS 15 (note 54) (929 ) At 1 January 3,976 3,250 4,416 Profit for the year 4,302 3,807 2,063 Dividends paid 1 (2,240 ) (2,284 ) (2,014 ) Issue costs of other equity instruments (net of tax) (note 43) (5 ) – – Distributions on other equity instruments (net of tax) (327 ) (313 ) (321 ) Share buy-back programme (note 41) (1,005 ) – – Realised gains and losses on equity shares held at fair value through other comprehensive income (129 ) Post-retirement defined benefit scheme remeasurements 120 482 (1,028 ) Share of other comprehensive income of associates and joint ventures 8 – – Gains and losses attributable to own credit risk (net of tax) 2 389 (40 ) – Movement in treasury shares 40 (411 ) (175 ) Value of employee services: Share option schemes 53 82 141 Other employee award schemes 207 332 168 At 31 December 5,389 4,905 3,250 1 In 2017 and 2016, net of a credit in respect of unclaimed dividends written-back in accordance with the Company’s Articles of Association. 2 During 2017 the Group derecognised, on redemption, financial liabilities on which cumulative fair value movements relating to own credit of £3 million net of tax, had been recognised directly in retained profits (2018: £nil). |
OTHER EQUITY INSTRUMENTS (Table
OTHER EQUITY INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Other Equity Instruments Explanatory [Abstract] | |
Disclosure Of Other Equity Instruments [text block] | 2018 £m 2017 2016 At 1 January 5,355 5,355 5,355 Issued in the year: US dollar notes ($1,500 million nominal) 1,136 – – At 31 December 6,491 5,355 5,355 |
DIVIDENDS ON ORDINARY SHARES (T
DIVIDENDS ON ORDINARY SHARES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Dividend award [Member] | |
DIVIDENDS ON ORDINARY SHARES (Tables) [Line Items] | |
Disclosure of Dividends On Ordinary Shares [Text Block] | Dividends paid during the year were as follows: 2018 pence per share 2017 2016 2018 £m 2017 2016 Recommended by directors at previous year end: Final dividend 2.05 1.70 1.50 1,475 1,212 1,070 Special dividend – 0.50 0.50 – 356 357 Interim dividend paid in the year 1.07 1.00 0.85 765 720 607 3.12 3.20 2.85 2,240 2,288 2,034 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SHARE-BASED PAYMENTS (Tables) [Line Items] | |
Charges to Income Statement [text block] | The charge to the income statement is set out below: 2018 £m 2017 2016 Deferred bonus plan 325 313 266 Executive and SAYE plans: Options granted in the year 14 17 16 Options granted in prior years 71 81 138 85 98 154 Share plans: Shares granted in the year 16 17 15 Shares granted in prior years 17 9 7 33 26 22 Total charge to the income statement 443 437 442 |
Disclosure Of Share Based Payments Assumptions [text block] | The fair value calculations at 31 December 2018 for grants made in the year, using Black-Scholes models and Monte Carlo simulation, are based on the following assumptions: Save-As-You-Earn Executive Share Plan 2003 LTIP Weighted average risk-free interest rate 0.96% 0.74% 0.94% Weighted average expected life 3.3 years 1.3 years 3.7 years Weighted average expected volatility 28% 21% 29% Weighted average expected dividend yield 4.0% 4.0% 4.0% Weighted average share price £0.59 £0.58 £0.67 Weighted average exercise price £0.48 Nil Nil |
Save-as-you-earn [Member] | |
SHARE-BASED PAYMENTS (Tables) [Line Items] | |
Disclosure Of Share Based Payments Movements [text block] | Movements in the number of share options outstanding under the SAYE schemes are set out below: 2018 2017 Number of options Weighted average exercise price (pence ) Number of Weighted ) Outstanding at 1 January 860,867,088 51.34 678,692,896 51.76 Granted 188,866,162 47.92 268,653,890 51.03 Exercised (135,721,404 ) 59.00 (13,119,229 ) 55.58 Forfeited (22,909,999 ) 49.85 (18,545,569 ) 51.70 Cancelled (78,073,042 ) 50.66 (41,211,075 ) 52.77 Expired (10,033,887 ) 55.20 (13,603,825 ) 56.98 Outstanding at 31 December 802,994,918 49.30 860,867,088 51.34 Exercisable at 31 December 68,378 60.02 – – 2018 2017 Number of options Weighted average exercise price (pence ) Number of Weighted ) Outstanding at 1 January 14,523,989 Nil 218,962,281 Nil Granted 3,914,599 Nil 5,466,405 Nil Exercised (6,854,043 ) Nil (104,967,667 ) Nil Vested (148,109 ) Nil – – Forfeited (662,985 ) Nil (81,883 ) Nil Lapsed (510,423 ) Nil (104,855,147 ) Nil Outstanding at 31 December 10,263,028 Nil 14,523,989 Nil Exercisable at 31 December 3,305,442 Nil 7,729,919 Nil |
Lloyds Banking Group Executive Share Plan 2003 [Member] | |
SHARE-BASED PAYMENTS (Tables) [Line Items] | |
Disclosure Of Share Based Payments Movements [text block] | 2018 Number of shares 2017 Outstanding at 1 January 370,804,915 358,228,028 Granted 160,586,201 139,812,788 Vested (73,270,301 ) (57,406,864 ) Forfeited (48,108,870 ) (73,268,966 ) Dividend award 7,373,691 3,439,929 Outstanding at 31 December 417,385,636 370,804,915 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Compensation [Member] | |
RELATED PARTY TRANSACTIONS (Tables) [Line Items] | |
Disclosure of information about key management personnel [text block] | The table below details, on an aggregated basis, key management personnel compensation: 2018 £m 2017 2016 Compensation Salaries and other short-term benefits 14 13 17 Post-employment benefits – – – Share-based payments 18 22 23 Total compensation 32 35 40 |
Defined benefit plans [member] | |
RELATED PARTY TRANSACTIONS (Tables) [Line Items] | |
Disclosure of information about key management personnel [text block] | 2018 million 2017 2016 Share option plans At 1 January 1 3 9 Granted, including certain adjustments (includes entitlements of appointed key management personnel) – – 3 Exercised/lapsed (includes entitlements of former key management personnel) (1 ) (2 ) (9 ) At 31 December – 1 3 2018 million 2017 million 2016 million Share plans At 1 January 82 65 82 Granted, including certain adjustments (includes entitlements of appointed key management personnel) 39 37 29 Exercised/lapsed (includes entitlements of former key management personnel) (37 ) (20 ) (46 ) At 31 December 84 82 65 |
Loans and receivables, category [member] | |
RELATED PARTY TRANSACTIONS (Tables) [Line Items] | |
Disclosure of information about key management personnel [text block] | The tables below detail, on an aggregated basis, balances outstanding at the year end and related income and expense, together with information relating to other transactions between the Group and its key management personnel: 2018 £m 2017 2016 Loans At 1 January 2 4 5 Advanced (includes loans of appointed key management personnel) 1 1 3 Repayments (includes loans of former key management personnel) (1 ) (3 ) (4 ) At 31 December 2 2 4 |
Deposits Placed [Member] | |
RELATED PARTY TRANSACTIONS (Tables) [Line Items] | |
Disclosure of information about key management personnel [text block] | 2018 £m 2017 2016 Deposits At 1 January 20 12 13 Placed (includes deposits of appointed key management personnel) 33 41 41 Withdrawn (includes deposits of former key management personnel) (33 ) (33 ) (42 ) At 31 December 20 20 12 |
CONTINGENT LIABILITIES AND CO_2
CONTINGENT LIABILITIES AND COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of commitments and contingent liabilities [text block] [Abstract] | |
Disclosure of contingent liabilities [text block] | 2018 2017 Contingent liabilities Acceptances and endorsements 194 71 Other: Other items serving as direct credit substitutes 632 740 Performance bonds and other transaction-related contingencies 2,425 2,300 3,057 3,040 Total contingent liabilities 3,251 3,111 |
Disclosure of commitments [text block] | 2018 2017 Commitments and guarantees Documentary credits and other short-term trade-related transactions 1 – Forward asset purchases and forward deposits placed 731 384 Undrawn formal standby facilities, credit lines and other commitments to lend: Less than 1 year original maturity: Mortgage offers made 11,594 11,156 Other commitments and guarantees 85,060 85,015 96,654 96,171 1 year or over original maturity 37,712 39,074 Total commitments and guarantees 135,098 135,629 |
Disclosure of maturity analysis of operating lease payments [text block] | Where a Group company is the lessee the future minimum lease payments under non-cancellable premises operating leases are as follows: 2018 2017 Not later than 1 year 259 275 Later than 1 year and not later than 5 years 807 845 Later than 5 years 977 934 Total operating lease commitments 2,043 2,054 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of measurement basis of financial assets and liabilities [text block] | The accounting policies in note 2 describe how different classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised. The following table analyses the carrying amounts of the financial assets and liabilities by category and by balance sheet heading. Mandatorily held at fair value Derivatives Held for Other Designated at At fair value Held at Insurance Total At 31 December 2018 Financial assets Cash and balances at central banks – – – – – 54,663 – 54,663 Items in the course of collection from banks – – – – – 647 – 647 Financial assets at fair value through profit or loss – 35,246 123,283 – – – – 158,529 Derivative financial instruments 1,563 22,032 – – – – – 23,595 Loans and advances to banks – – – – – 6,283 – 6,283 Loans and advances to customers – – – – – 484,858 – 484,858 Debt securities – – – – – 5,238 – 5,238 Financial assets at amortised cost – – – – – 496,379 – 496,379 Financial assets at fair value through other comprehensive income – – – – 24,815 – – 24,815 Total financial assets 1,563 57,278 123,283 – 24,815 551,689 – 758,628 Financial liabilities Deposits from banks – – – – – 30,320 – 30,320 Customer deposits – – – – – 418,066 – 418,066 Items in course of transmission to banks – – – – – 636 – 636 Financial liabilities at fair value through profit or loss – 23,451 – 7,096 – – – 30,547 Derivative financial instruments 1,108 20,265 – – – – – 21,373 Notes in circulation – – – – – 1,104 – 1,104 Debt securities in issue – – – – – 91,168 – 91,168 Liabilities arising from insurance contracts and participating investment contracts – – – – – – 98,874 98,874 Liabilities arising from non-participating investment contracts – – – – – – 13,853 13,853 Unallocated surplus within insurance businesses – – – – – – 382 382 Subordinated liabilities – – – – – 17,656 – 17,656 Total financial liabilities 1,108 43,716 – 7,096 – 558,950 113,109 723,979 At fair value Derivatives Held for Other Available- Held at Insurance Total At 31 December 2017 Financial assets Cash and balances at central banks – – – – 58,521 – 58,521 Items in the course of collection from banks – – – – 755 – 755 Financial assets at fair value through profit or loss – 42,236 120,642 – – – 162,878 Derivative financial instruments 1,881 23,953 – – – – 25,834 Loans and advances to banks – – – – 6,611 – 6,611 Loans and advances to customers – – – – 472,498 – 472,498 Debt securities – – – – 3,643 – 3,643 Financial assets at amortised cost – – – – 482,752 – 482,752 Available-for-sale financial assets – – – 42,098 – – 42,098 Total financial assets 1,881 66,189 120,642 42,098 542,028 – 772,838 Financial liabilities Deposits from banks – – – – 29,804 – 29,804 Customer deposits – – – – 418,124 – 418,124 Items in course of transmission to banks – – – – 584 – 584 Financial liabilities at fair value through profit or loss – 43,062 7,815 – – – 50,877 Derivative financial instruments 1,613 24,511 – – – – 26,124 Notes in circulation – – – – 1,313 – 1,313 Debt securities in issue – – – – 72,450 – 72,450 Liabilities arising from insurance contracts and participating investment contracts – – – – – 103,413 103,413 Liabilities arising from non-participating investment contracts – – – – – 15,447 15,447 Unallocated surplus within insurance businesses – – – – – 390 390 Subordinated liabilities – – – – 17,922 – 17,922 Total financial liabilities 1,613 67,573 7,815 – 540,197 119,250 736,448 |
Disclosure of financial liabilities [text block] | At 31 December 2018, the Group’s financial liabilities carried at fair value, excluding derivatives, comprised its financial liabilities at fair value through profit or loss and totalled £30,547 million (31 December 2017: £50,877 million). The table below analyses these financial liabilities by balance sheet classification and valuation methodology (level 1, 2 or 3, as described on page F-76). The fair value measurement approach is recurring in nature. There were no significant transfers between level 1 and 2 during the year. Level 1 Level 2 Level 3 Total At 31 December 2018 Financial liabilities at fair value through profit or loss Liabilities held at fair value through profit or loss – 7,085 11 7,096 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements – 21,595 – 21,595 Other deposits – 242 – 242 Short positions in securities 1,464 150 – 1,614 1,464 21,987 – 23,451 Total financial liabilities carried at fair value, excluding derivatives 1,464 29,072 11 30,547 At 31 December 2017 Financial liabilities at fair value through profit or loss Liabilities held at fair value through profit or loss 3 7,812 – 7,815 Trading liabilities: Liabilities in respect of securities sold under repurchase agreements – 41,378 – 41,378 Other deposits – 381 – 381 Short positions in securities 1,106 197 – 1,303 1,106 41,956 – 43,062 Total financial liabilities carried at fair value, excluding derivatives 1,109 49,768 – 50,877 |
Disclosure of significant adjustments to valuation obtained [text block] | The following table summarises the movement on this valuation adjustment account during 2017 and 2018: 2018 2017 At 1 January 521 744 Income statement charge (credit) 47 (260 ) Transfers (6 ) 37 At 31 December 562 521 |
Disclosure Of Significant Adjustment Categories To Valuation Obtained, Explanatory | Represented by: 2018 2017 Credit Valuation Adjustment 409 408 Debit Valuation Adjustment (79 ) (37 ) Funding Valuation Adjustment 232 150 562 521 |
Disclosure of fair value measurement of assets [text block] | The table below analyses the fair values of the financial assets of the Group which are carried at amortised cost by valuation methodology (level 1, 2 or 3, as described on page F-76). Financial assets carried at amortised cost are mainly classified as level 3 due to significant unobservable inputs used in the valuation models. Where inputs are observable, debt securities are classified as level 1 or 2. Valuation hierarchy Carrying value Fair value Level 1 Level 2 Level 3 At 31 December 2018 Financial assets at amortised cost: Loans and advances to customers: Stage 1 441,006 440,542 – 40,483 400,059 Loans and advances to customers: Stage 2 24,351 25,516 – – 25,516 Loans and advances to customers: Stage 3 4,188 3,289 – – 3,289 Loans and advances to customers: purchased or originated credit-impaired 15,313 15,313 – – 15,313 Loans and advances to customers 484,858 484,660 – 40,483 444,177 Loans and advances to banks 6,283 6,286 – 461 5,825 Debt securities 5,238 5,244 – 5,233 11 Reverse repos included in above amounts: Loans and advances to customers 40,483 40,483 – 40,483 – Loans and advances to banks 461 461 – 461 – At 31 December 2017 Financial assets at amortised cost: Loans and advances to customers: unimpaired 467,670 467,276 – 16,832 450,444 Loans and advances to customers: impaired 4,828 4,809 – – 4,809 Loans and advances to customers 472,498 472,085 – 16,832 455,253 Loans and advances to banks 6,611 6,564 – 771 5,793 Debt securities 3,643 3,586 – 3,571 15 Reverse repos included in above amounts: Loans and advances to customers 16,832 16,832 – 16,832 – Loans and advances to banks 771 771 – 771 – |
Disclosure of fair value measurement of liabilities [text block] | The table below analyses the fair values of the financial liabilities of the Group which are carried at amortised cost by valuation methodology (level 1, 2 or 3, as described on page F-76). Valuation hierarchy Carrying value Fair value Level 1 Level 2 Level 3 At 31 December 2018 Deposits from banks 30,320 30,322 – 30,322 – Customer deposits 418,066 418,450 – 412,283 6,167 Debt securities in issue 91,168 93,233 – 93,233 – Subordinated liabilities 17,656 19,564 – 19,564 – Repos included in above amounts: Deposits from banks 21,170 21,170 – 21,170 – Customer deposits 1,818 1,818 – 1,818 – At 31 December 2017 Deposits from banks 29,804 29,798 – 29,798 – Customer deposits 418,124 418,441 – 411,591 6,850 Debt securities in issue 72,450 75,756 – 75,756 – Subordinated liabilities 17,922 21,398 – 21,398 – Repos included in above amounts: Deposits from banks 23,175 23,175 – 23,175 – Customer deposits 2,638 2,638 – 2,638 – |
Level 3 of fair value hierarchy [member] | |
FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of movements in level 3 portfolio [text block] | The table below analyses movements in level 3 financial assets, excluding derivatives, carried at fair value (recurring measurement). 2018 2017 Financial At fair value Available- Total level 3 Financial assets Available- Total level 3 At 31 December 2017 3,686 696 4,382 Adjustment on adoption of IFRS 9 (note 54) 10,466 302 (696 ) 10,072 At 1 January 14,152 302 14,454 3,806 894 4,700 Exchange and other adjustments 87 (2 ) 85 (1 ) (24 ) (25 ) Gains recognised in the income statement within other income 439 – 439 202 – 202 (Losses) gains recognised in other comprehensive income within the revaluation reserve in respect of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) – (4 ) (4 ) – (117 ) (117 ) Purchases/increases to customer loans 2,480 2 2,482 774 41 815 Sales (3,593 ) (95 ) (3,688 ) (1,005 ) (61 ) (1,066 ) Transfers into the level 3 portfolio 815 348 1,163 152 2 154 Transfers out of the level 3 portfolio (463 ) (284 ) (747 ) (242 ) (39 ) (281 ) At 31 December 13,917 267 14,184 3,686 696 4,382 Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December (104 ) – (104 ) 125 – 125 |
Disclosure of financial liabilities [text block] | The table below analyses movements in the level 3 financial liabilities portfolio, excluding derivatives. 2018 2017 At 1 January – 2 Losses (gains) recognised in the income statement within other income – (2 ) Redemptions – – Transfers into the level 3 portfolio 11 – Transfers out of the level 3 portfolio – – At 31 December 11 – Gains recognised in the income statement, within other income, relating to the change in fair value of those liabilities held at 31 December – – |
Disclosure of assets and liabilities [text block] | The table below analyses movements in level 3 derivative assets and liabilities carried at fair value. 2018 2017 Derivative Derivative Derivative Derivative At 1 January 1,056 (804 ) 1,399 (960 ) Exchange and other adjustments 7 (5 ) 24 (20 ) Losses (gains) recognised in the income statement within other income (84 ) 49 (208 ) 215 Purchases (additions) – (68 ) 103 (18 ) (Sales) redemptions (52 ) 112 (79 ) 53 Transfers into the level 3 portfolio – – 33 (74 ) Transfers out of the level 3 portfolio – – (216 ) – At 31 December 927 (716 ) 1,056 (804 ) Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets or liabilities held at 31 December (424 ) 82 (208 ) 213 |
Disclosure of Sensitivity of Level 3 Valuations [text block] | At 31 December 2018 At 31 December 2017 Effect of reasonably possible 2 Effect of reasonably possible 2 Valuation techniques Significant unobservable 1 Carrying Favourable Unfavourable Carrying Favourable Unfavourable Financial assets at fair value through profit or loss Loans and advances to customers Discounted cash flows Gross interest rates, inferred spreads (bps) 97bps/208bps 10,565 380 (371 ) – – – Debt securities Discounted cash flows Credit spreads (bps) (1bps/2bps) 274 92 (21 ) 11 – – Equity and venture capital investments Market approach Earnings multiple (0.9/14.6) 1,657 54 (55 ) 1,879 65 (65 ) Underlying asset/net asset value (incl. property prices) 3 n/a 523 48 (57 ) 50 5 (5 ) Unlisted equities, debt securities and property partnerships in the life funds Underlying asset/net asset value (incl. property prices), broker quotes or discounted cash flows 3 n/a 898 2 (45 ) 1,746 26 (76 ) 13,917 3,686 Financial assets at fair value through other comprehensive income/available-for-sale financial assets Asset-backed securities Lead manager or broker quote/consensus pricing n/a 246 3 (5 ) 92 – (4 ) Equity and venture capital investments Underlying asset/net asset value (incl. property prices) 3 n/a 21 2 (2 ) 604 83 (42 ) 267 696 Derivative financial assets Interest rate derivatives Option pricing model Interest rate volatility (19%/80%) 927 7 (5 ) 1,056 11 (3 ) 927 1,056 Level 3 financial assets carried at fair value 15,111 5,438 Financial liabilities at fair value through profit or loss 11 – – – – – Derivative financial liabilities Interest rate derivatives Option pricing model Interest rate volatility (19%/80%) 716 – – 804 – – 716 804 Level 3 financial liabilities carried at fair value 727 804 1 Ranges are shown where appropriate and represent the highest and lowest inputs used in the level 3 valuations. 2 Where the exposure to an unobservable input is managed on a net basis, only the net impact is shown in the table. 3 Underlying asset/net asset values represent fair value. |
Financial Assets, Excluding Derivatives [Member] | |
FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of financial assets excluding derivatives [text block] | Valuation hierarchy Level 1 Level 2 Level 3 Total At 31 December 2018 Financial assets at fair value through profit or loss Loans and advances to customers – 27,285 10,565 37,850 Loans and advances to banks – 3,026 – 3,026 Debt securities: Government securities 17,926 169 – 18,095 Other public sector securities – 2,064 – 2,064 Bank and building society certificates of deposit 84 1,021 – 1,105 Asset-backed securities: Mortgage-backed securities – 219 6 225 Other asset-backed securities – 231 118 349 Corporate and other debt securities – 16,840 1,470 18,310 18,010 20,544 1,594 40,148 Treasury and other bills 20 – – 20 Equity shares 75,701 26 1,758 77,485 Total financial assets at fair value through profit or loss 93,731 50,881 13,917 158,529 Financial assets at fair value through other comprehensive income Debt securities: Government securities 18,847 124 – 18,971 Bank and building society certificates of deposit – 118 – 118 Asset-backed securities: Mortgage-backed securities – – 120 120 Other asset-backed securities – 5 126 131 Corporate and other debt securities 32 5,119 – 5,151 18,879 5,366 246 24,491 Treasury and other bills 303 – – 303 Equity shares – – 21 21 Total financial assets at fair value through other comprehensive income 19,182 5,366 267 24,815 Total financial assets carried at fair value, excluding derivatives 112,913 56,247 14,184 183,344 Level 1 Level 2 Level 3 Total At 31 December 2017 Financial assets at fair value through profit or loss Loans and advances to customers – 29,976 – 29,976 Loans and advances to banks – 1,614 – 1,614 Debt securities: Government securities 20,268 1,729 23 22,020 Other public sector securities – 1,526 1 1,527 Bank and building society certificates of deposit – 222 – 222 Asset-backed securities: Mortgage-backed securities 3 348 49 400 Other asset-backed securities 5 229 787 1,021 Corporate and other debt securities – 18,542 1,448 19,990 20,276 22,596 2,308 45,180 Treasury and other bills 18 – – 18 Equity shares 84,694 18 1,378 86,090 Total trading and other financial assets at fair value through profit or loss 104,988 54,204 3,686 162,878 Available-for-sale financial assets Debt securities: Government securities 34,534 174 – 34,708 Bank and building society certificates of deposit – 167 – 167 Asset-backed securities: Mortgage-backed securities – 1,156 – 1,156 Other asset-backed securities – 163 92 255 Corporate and other debt securities 229 4,386 – 4,615 34,763 6,046 92 40,901 Equity shares 555 38 604 1,197 Total available-for-sale financial assets 35,318 6,084 696 42,098 Total financial assets carried at fair value, excluding derivatives 140,306 60,288 4,382 204,976 |
Recurring fair value measurement [member] | |
FINANCIAL INSTRUMENTS (Tables) [Line Items] | |
Disclosure of Derivatives by recurring fair value measurement [text block] | All of the Group’s derivative assets and liabilities are carried at fair value. At 31 December 2018, such assets totalled £23,595 million (31 December 2017: £25,834 million) and liabilities totalled £21,373 million (31 December 2017: £26,124 million). The table below analyses these derivative balances by valuation methodology (level 1, 2 or 3, as described on page F-76). The fair value measurement approach is recurring in nature. There were no significant transfers between level 1 and level 2 during the year. 2018 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets 93 22,575 927 23,595 246 24,532 1,056 25,834 Derivative liabilities (132 ) (20,525 ) (716 ) (21,373 ) (587 ) (24,733 ) (804 ) (26,124 ) |
TRANSFERS OF FINANCIAL ASSETS (
TRANSFERS OF FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of transferred financial assets that are not derecognised in their entirety [text block] [Abstract] | |
Disclosure of Transfered Assets and Liabilities [Text Block] | The table below sets out the carrying values of the transferred assets and the associated liabilities. 2018 2017 Carrying Carrying Carrying Carrying Repurchase and securities lending transactions Financial assets at fair value through profit or loss 6,815 961 9,946 3,257 Financial assets at fair value through other comprehensive income 7,279 5,337 19,359 16,753 Securitisation programmes Financial assets at amortised cost: Loans and advances to customers 1 41,674 5,479 35,475 3,660 1 The carrying value of associated liabilities excludes securitisation notes held by the Group of £31,701 million (31 December 2017: £21,536 million). |
OFFSETTING OF FINANCIAL ASSET_2
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Offset [Member] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) [Line Items] | |
Disclosure of Offsetting of Financial Assets and Liabilities [text block] | The following information relates to financial assets and liabilities which have been offset in the balance sheet and those which have not been offset but for which the Group has enforceable master netting agreements or collateral arrangements in place with counterparties. Related amounts where set off in 3 Potential At 31 December 2018 Gross amounts 1 Amounts offset 2 Net amounts Cash collateral Non-cash net amounts Financial assets Financial assets at fair value through profit or loss: Excluding reverse repos 130,172 – 130,172 – (978 ) 129,194 Reverse repos 33,472 (5,115 ) 28,357 (622 ) (27,735 ) – 163,644 (5,115 ) 158,529 (622 ) (28,713 ) 129,194 Derivative financial instruments 78,607 (55,012 ) 23,595 (6,039 ) (15,642 ) 1,914 Loans and advances to banks: Excluding reverse repos 5,822 – 5,822 (2,676 ) – 3,146 Reverse repos 461 – 461 – (461 ) – 6,283 – 6,283 (2,676 ) (461 ) 3,146 Loans and advances to customers: Excluding reverse repos 447,020 (2,645 ) 444,375 (1,319 ) (3,241 ) 439,815 Reverse repos 42,494 (2,011 ) 40,483 – (40,483 ) – 489,514 (4,656 ) 484,858 (1,319 ) (43,724 ) 439,815 Debt securities 5,238 – 5,238 – – 5,238 Financial assets at fair value through other comprehensive income 24,815 – 24,815 – (5,361 ) 19,454 Financial liabilities Deposits from banks: Excluding repos 9,150 – 9,150 (5,291 ) – 3,859 Repos 21,170 – 21,170 – (21,170 ) – 30,320 – 30,320 (5,291 ) (21,170 ) 3,859 Customer deposits: Excluding repos 417,652 (1,404 ) 416,248 (1,370 ) (3,241 ) 411,637 Repos 1,818 – 1,818 – (1,818 ) – 419,470 (1,404 ) 418,066 (1,370 ) (5,059 ) 411,637 Financial liabilities at fair value through profit or loss: Excluding repos 8,952 – 8,952 – – 8,952 Repos 28,721 (7,126 ) 21,595 – (21,595 ) – 37,673 (7,126 ) 30,547 – (21,595 ) 8,952 Derivative financial instruments 77,626 (56,253 ) 21,373 (3,995 ) (17,313 ) 65 Related amounts where set off in 3 Potential At 31 December 2017 Gross amounts 1 Amounts offset 2 Net amounts Cash collateral Non-cash net amounts Financial assets Financial assets at fair value through profit or loss: Excluding reverse repos 131,288 – 131,288 – (3,322 ) 127,966 Reverse repos 38,882 (7,292 ) 31,590 – (31,590 ) – 170,170 (7,292 ) 162,878 – (34,912 ) 127,966 Derivative financial instruments 72,869 (47,035 ) 25,834 (5,419 ) (13,807 ) 6,608 Loans and advances to banks: Excluding reverse repos 5,840 – 5,840 (2,293 ) – 3,547 Reverse repos 771 – 771 (646 ) (125 ) – 6,611 – 6,611 (2,939 ) (125 ) 3,547 Loans and advances to customers: Excluding reverse repos 457,382 (1,716 ) 455,666 (1,656 ) (7,030 ) 446,980 Reverse repos 16,832 – 16,832 – (16,832 ) – 474,214 (1,716 ) 472,498 (1,656 ) (23,862 ) 446,980 Debt securities 3,643 – 3,643 – – 3,643 Available-for-sale financial assets 42,098 – 42,098 – (16,751 ) 25,347 Financial liabilities Deposits from banks: Excluding repos 6,629 – 6,629 (4,860 ) – 1,769 Repos 23,175 – 23,175 – (23,175 ) – 29,804 – 29,804 (4,860 ) (23,175 ) 1,769 Customer deposits: Excluding repos 417,009 (1,523 ) 415,486 (1,205 ) (7,030 ) 407,251 Repos 2,638 – 2,638 – (2,638 ) – 419,647 (1,523 ) 418,124 (1,205 ) (9,668 ) 407,251 Financial liabilities at fair value through profit or loss: Excluding repos 9,499 – 9,499 – – 9,499 Repos 48,670 (7,292 ) 41,378 – (41,378 ) – 58,169 (7,292 ) 50,877 – (41,378 ) 9,499 Derivative financial instruments 73,352 (47,228 ) 26,124 (3,949 ) (17,459 ) 4,716 1 After impairment allowance. 2 The amounts set off in the balance sheet as shown above represent derivatives and repurchase agreements with central clearing houses which meet the criteria for offsetting under IAS 32. 3 The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master netting agreements. The Group holds and provides cash and securities collateral in respect of derivative transactions covered by these agreements. The right to set off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result, these arrangements do not qualify for offsetting under IAS 32. |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of structural foreign currency exposures [text block] | The Group’s main overseas operations are in the Americas and Europe. Details of the Group’s structural foreign currency exposures, after net investment hedges, are as follows: 2018 2017 Euro £m US Dollar £m Other non-sterling £m Euro £m US Dollar £m Other non-sterling Gross exposure 112 59 60 73 374 32 Net investment hedges – – – (41 ) – – Total structural foreign currency exposures, after net investment hedges 112 59 60 32 374 32 |
Disclosure of credit risk exposure [text block] | At 31 December 2018 At 31 December 2017 Maximum exposure £m Offset 2 £m Net exposure £m Maximum exposure £m Offset 2 £m Net exposure £m Loans and advances to banks, net 1 6,283 – 6,283 6,611 – 6,611 Loans and advances to customers, net 1 484,858 (3,241 ) 481,617 472,498 (7,030 ) 465,468 Debt securities, net 1 5,238 – 5,238 3,643 – 3,643 Financial assets at amortised cost 496,379 (3,241 ) 493,138 482,752 (7,030 ) 475,722 Financial assets at fair value through other comprehensive income/available-for-sale financial assets 3 24,794 – 24,794 40,901 – 40,901 Financial assets at fair value through profit or loss: 3,4 Loans and advances 40,876 – 40,876 31,590 – 31,590 Debt securities, treasury and other bills 40,168 – 40,168 45,198 – 45,198 81,044 – 81,044 76,788 – 76,788 Derivative assets 23,595 (14,327 ) 9,268 25,834 (13,049 ) 12,785 Assets arising from reinsurance contracts held 749 – 749 602 – 602 Off-balance sheet items: Acceptances and endorsements 194 – 194 71 – 71 Other items serving as direct credit substitutes 632 – 632 740 – 740 Performance bonds and other transaction-related contingencies 2,425 – 2,425 2,300 – 2,300 Irrevocable commitments and guarantees 64,884 – 64,884 65,946 – 65,946 68,135 – 68,135 69,057 – 69,057 694,696 (17,568 ) 677,128 695,934 (20,079 ) 675,855 1 Amounts shown net of related impairment allowances. 2 Offset items comprise deposit amounts available for offset, and amounts available for offset under master netting arrangements, that do not meet the criteria under IAS 32 to enable loans and advances and derivative assets respectively to be presented net of these balances in the financial statements. 3 Excluding equity shares. 4 Includes assets within the Group’s unit-linked funds for which credit risk is borne by the policyholders and assets within the Group’s With-Profits funds for which credit risk is largely borne by the policyholders. Consequently, the Group has no significant exposure to credit risk for such assets which back related contract liabilities. |
Analysis of credit exposures using internal credit grading system [text block] | Retail Corporate Grade IFRS 9 PD% Grade IFRS 9 PD% Good quality 1–6 0.00–4.50 1–10 0.00–0.50 Satisfactory quality 7–9 4.51–14.00 11–14 0.51–3.00 Lower quality 10 14.01–20.00 15–18 3.01–20.00 Below standard 11–13 20.01–99.99 19 20.01–99.99 Credit impaired 14 100.00 20–23 100.00 |
Information about credit quality of neither past due nor impaired financial assets [text block] | Loans and advances to customers Gross carrying amount Loans and advances to banks £m Retail – mortgages £m Retail – other £m Commercial £m Other £m Total £m At 31 December 2018 Stage 1 Good quality 6,177 257,740 44,314 65,089 44,369 411,512 Satisfactory quality 105 57 2,562 25,472 – 28,091 Lower quality – – 72 1,441 – 1,513 Below standard, but not credit-impaired – – 415 – – 415 6,282 257,797 47,363 92,002 44,369 441,531 Stage 2 Good quality 3 10,784 2,737 100 6 13,627 Satisfactory quality – 1,709 1,158 3,450 6 6,323 Lower quality – 262 285 2,988 – 3,535 Below standard, but not credit-impaired – 899 907 54 – 1,860 3 13,654 5,087 6,592 12 25,345 Stage 3 Credit-impaired – 1,393 997 3,296 55 5,741 Purchased or originated credit-impaired Credit-impaired – 15,391 – – – 15,391 Total 6,285 288,235 53,447 101,890 44,436 488,008 Expected credit losses Stage 1 Good quality 2 37 279 32 43 391 Satisfactory quality – – 65 50 – 115 Lower quality – – 4 11 – 15 Below standard, but not credit-impaired – – 4 – – 4 2 37 352 93 43 525 Stage 2 Good quality – 141 89 1 1 232 Satisfactory quality – 34 100 86 6 226 Lower quality – 9 40 231 – 280 Below standard, but not credit-impaired – 42 207 7 – 256 – 226 436 325 7 994 Stage 3 Credit-impaired – 118 366 1,058 11 1,553 Purchased or originated credit-impaired Credit-impaired – 78 – – – 78 Total 2 459 1,154 1,476 61 3,150 Loan commitments and financial guarantees Retail – mortgages £m Retail – other £m Commercial £m Other £m Total £m At 31 December 2018 Stage 1 Good quality 12,024 60,379 51,632 246 124,281 Satisfactory quality 2 532 6,501 – 7,035 Lower quality – 10 126 – 136 Below standard, but not credit-impaired – 363 31 – 394 12,026 61,284 58,290 246 131,846 Stage 2 Good quality 19 1,858 – – 1,877 Satisfactory quality 1 156 693 – 850 Lower quality – 27 297 – 324 Below standard, but not credit-impaired – 50 11 – 61 20 2,091 1,001 – 3,112 Stage 3 Credit-impaired 5 39 6 – 50 Purchased or originated credit-impaired Credit-impaired 90 – – – 90 Total 12,141 63,414 59,297 246 135,098 Expected credit losses Stage 1 Good quality 1 98 9 1 109 Satisfactory quality – 5 7 – 12 Lower quality – – 1 – 1 Below standard, but not credit-impaired – – 1 – 1 1 103 18 1 123 Stage 2 Good quality – 28 – – 28 Satisfactory quality – 10 7 – 17 Lower quality – 3 5 – 8 Below standard, but not credit-impaired – 10 1 – 11 – 51 13 – 64 Stage 3 Credit-impaired – – 6 – 6 Total 1 154 37 1 193 Loans and advances to customers Gross carrying amount Loans and advances to banks £m Retail – mortgages £m Retail – other £m Commercial £m Other £m Total £m At 1 January 2018 Stage 1 Good quality 4,245 251,663 40,951 64,207 17,276 374,097 Satisfactory quality – 44 3,203 25,577 – 28,824 Lower quality – – 127 557 – 684 Below standard, but not credit-impaired – – 276 – – 276 4,245 251,707 44,557 90,341 17,276 403,881 Stage 2 Good quality 2 17,599 2,711 210 67 20,587 Satisfactory quality – 1,359 1,377 4,470 4,094 11,300 Lower quality – 290 299 2,616 – 3,205 Below standard, but not credit-impaired – 861 823 469 – 2,153 2 20,109 5,210 7,765 4,161 37,245 Stage 3 Credit-impaired – 1,232 873 2,714 321 5,140 Purchased or originated credit-impaired Credit-impaired – 17,973 – – – 17,973 Total 4,247 291,021 50,640 100,820 21,758 464,239 Expected credit losses Stage 1 Good quality 1 30 276 35 72 413 Satisfactory quality – – 104 60 – 164 Lower quality – – 9 6 – 15 Below standard, but not credit-impaired – – 5 – – 5 1 30 394 101 72 597 Stage 2 Good quality – 169 92 1 16 278 Satisfactory quality – 24 123 134 110 391 Lower quality – 7 42 183 – 232 Below standard, but not credit-impaired – 36 147 64 – 247 – 236 404 382 126 1,148 Stage 3 Credit-impaired – 86 313 957 90 1,446 Purchased or originated credit-impaired Credit-impaired – 32 – – – 32 Total 1 384 1,111 1,440 288 3,223 Loan commitments and financial guarantees Retail – mortgages £m Retail – other £m Commercial £m Other £m Total £m At 1 January 2018 Stage 1 Good quality 11,690 60,305 53,335 287 125,617 Satisfactory quality – 801 5,463 – 6,264 Lower quality – 26 226 – 252 Below standard, but not credit-impaired – 7 – – 7 11,690 61,139 59,024 287 132,140 Stage 2 Good quality 50 1,908 59 – 2,017 Satisfactory quality – 221 577 – 798 Lower quality – 32 347 – 379 Below standard, but not credit-impaired – 45 76 – 121 50 2,206 1,059 – 3,315 Stage 3 Credit-impaired – 61 – – 61 Purchased or originated credit-impaired Credit-impaired 113 – – – 113 Total 11,853 63,406 60,083 287 135,629 Expected credit losses Stage 1 Good quality 1 91 11 2 105 Satisfactory quality – 19 19 – 38 Lower quality – 2 1 – 3 Below standard, but not credit-impaired – 1 – – 1 1 113 31 2 147 Stage 2 Good quality – 37 – – 37 Satisfactory quality – 15 28 – 43 Lower quality – 4 14 – 18 Below standard, but not credit-impaired – 20 8 – 28 – 76 50 – 126 Total 1 189 81 2 273 |
Disclosure of fair value of financial instruments [text block] | An analysis of the Group’s financial assets at fair value through profit or loss is included in note 16. The credit quality of the Group’s debt securities, treasury and other bills held at fair value through profit or loss is set out below: 2018 2017 Investment grade 1 £m Other 2 £m Total Investment grade 1 £m Other 2 £m Total Debt securities, treasury and other bills held at fair value through profit or loss Trading assets: Government securities 7,192 – 7,192 9,833 – 9,833 Asset-backed securities: Mortgage-backed securities 10 – 10 84 105 189 Other asset-backed securities 63 – 63 95 – 95 73 – 73 179 105 284 Corporate and other debt securities 228 19 247 469 54 523 Total held as trading assets 7,493 19 7,512 10,481 159 10,640 Other assets held at fair value through profit or loss: Government securities 10,903 – 10,903 12,180 7 12,187 Other public sector securities 2,059 5 2,064 1,519 8 1,527 Bank and building society certificates of deposit 1,105 – 1,105 222 – 222 Asset-backed securities: Mortgage-backed securities 208 7 215 208 3 211 Other asset-backed securities 283 3 286 924 2 926 491 10 501 1,132 5 1,137 Corporate and other debt securities 16,141 1,922 18,063 17,343 2,124 19,467 Total debt securities held at fair value through profit or loss 30,699 1,937 32,636 32,396 2,144 34,540 Treasury bills and other bills 20 – 20 18 – 18 Total other assets held at fair value through profit or loss 30,719 1,937 32,656 32,414 2,144 34,558 Total held at fair value through profit or loss 38,212 1,956 40,168 42,895 2,303 45,198 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2018: £411 million; 2017: £331 million) and not rated (2018: £1,545 million; 2017: £1,972 million). |
Analysis of Loan-to-value ratio of Residential Mortgage Lending | An analysis by loan-to-value ratio of the Group’s residential mortgage lending is provided below. The value of collateral used in determining the loan-to-value ratios has been estimated based upon the last actual valuation, adjusted to take into account subsequent movements in house prices, after making allowances for indexation error and dilapidations. In some circumstances, where the discounted value of the estimated net proceeds from the liquidation of collateral (i.e. net of costs, expected haircuts and anticipated changes in the value of the collateral to the point of sale) is greater than the estimated exposure at default, no credit losses are expected and no ECL allowance is recognised. Stage 1 Stage 2 Stage 3 Purchased or Total gross At 31 December 2018 Less than 70 per cent 186,974 10,853 1,058 11,658 210,543 70 per cent to 80 per cent 38,865 1,704 176 1,864 42,609 80 per cent to 90 per cent 26,353 837 90 1,024 28,304 90 per cent to 100 per cent 5,136 154 33 349 5,672 Greater than 100 per cent 469 106 36 496 1,107 Total 257,797 13,654 1,393 15,391 288,235 Neither past due Past due but not Impaired Gross At 31 December 2017 Less than 70 per cent 211,366 4,211 2,348 217,925 70 per cent to 80 per cent 41,323 754 544 42,621 80 per cent to 90 per cent 22,421 422 398 23,241 90 per cent to 100 per cent 5,036 145 209 5,390 Greater than 100 per cent 1,326 95 387 1,808 Total 281,472 5,627 3,886 290,985 |
Concentrations of risk [member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of loans and advances to customers [text block] | 31 December 2018 £m 1 January 2018 £m 31 December 2017 £m Agriculture, forestry and fishing 7,314 7,074 7,461 Energy and water supply 1,517 1,384 1,609 Manufacturing 8,260 7,886 7,886 Construction 4,684 4,378 4,428 Transport, distribution and hotels 14,113 14,074 14,074 Postal and telecommunications 2,711 2,148 2,148 Property companies 28,451 27,631 30,980 Financial, business and other services 77,505 50,707 57,006 Personal: Mortgages 297,498 304,515 304,665 Other 28,699 28,757 28,757 Lease financing 1,822 2,094 2,094 Hire purchase 15,434 13,591 13,591 Total loans and advances to customers before allowance for impairment losses 488,008 464,239 474,699 Allowance for impairment losses (note 20) (3,150 ) (3,223 ) (2,201 ) Total loans and advances to customers 484,858 461,016 472,498 |
Participating investment contracts [Member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of Liabilities Arising from Insurance and Participating Investment Contracts [text block] | Liabilities arising from insurance and participating investment contracts are analysed on a behavioural basis, as permitted by IFRS 4, as follows: Up to 1-3 3-12 1-5 Over 5 Total At 31 December 2018 1,667 1,624 5,925 25,414 64,244 98,874 At 31 December 2017 1,708 1,747 6,467 26,479 67,012 103,413 |
Available-for-Sale Financial Assets (Excluding Equity Shares) [Member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of Available-for-Sale Financial Assets (Excluding Equity Shares) [text block] | An analysis of the Group’s financial assets at fair value through other comprehensive income (available-for-sale financial assets at 31 December 2017) is included in note 21. The credit quality of the Group’s financial assets at fair value through other comprehensive income (available-for-sale financial assets at 31 December 2017) (excluding equity shares) is set out below: 31 December 2018 1 January 2018 Investment grade 1 £m Other 2 £m Total Investment grade 1 £m Other 2 £m Total Debt securities: Government securities 18,971 – 18,971 34,708 – 34,708 Bank and building society certificates of deposit 118 – 118 167 – 167 Asset-backed securities: Mortgage-backed securities 120 – 120 2,381 – 2,381 Other asset-backed securities – 131 131 358 109 467 120 131 251 2,739 109 2,848 Corporate and other debt securities 4,934 217 5,151 4,250 365 4,615 Total debt securities 24,143 348 24,491 41,864 474 42,338 Treasury and other bills 303 – 303 – – – Total financial assets at fair value through other comprehensive income/available-for-sale financial assets 24,446 348 24,794 41,864 474 42,338 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (31 December 2018: £85 million; 1 January 2018: £98 million) and not rated (31 December 2018: £263 million; 1 January 2018: £376 million). |
Derivative assets [Member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of Derivative Assets [text block] | 2018 2017 Investment grade 1 £m Other 2 £m Total Investment grade 1 £m Other 2 £m Total Trading and other 19,797 2,235 22,032 21,742 2,211 23,953 Hedging 1,534 29 1,563 1,874 7 1,881 Total derivative financial instruments 21,331 2,264 23,595 23,616 2,218 25,834 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (2018: £1,920 million; 2017: £1,878 million) and not rated (2018: £344 million; 2017: £340 million). |
Securities lending [member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of transfers of financial assets [text block] | The following on balance sheet financial assets have been lent to counterparties under securities lending transactions: 2018 2017 Financial assets at fair value through profit or loss 5,837 6,622 Loans and advances to customers – 197 Financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) 1,917 2,608 7,754 9,427 |
Loans to corporate entities [member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of Debt Securities Classified as Loans and Receivables [text block] | An analysis by credit rating of the Group’s debt securities held at amortised cost is provided below: 31 December 2018 1 January 2018 Investment grade 1 £m Other 2 £m Total Investment grade 1 £m Other 2 £m Total Asset-backed securities: Mortgage-backed securities 3,263 9 3,272 2,265 – 2,265 Other asset-backed securities 763 17 780 1,025 7 1,032 4,026 26 4,052 3,290 7 3,297 Corporate and other debt securities 1,176 16 1,192 27 16 43 Gross exposure 5,202 42 5,244 3,317 23 3,340 Allowance for impairment losses (6 ) (26 ) Total debt securities held at amortised cost 5,238 3,314 1 Credit ratings equal to or better than ‘BBB’. 2 Other comprises sub-investment grade (31 December 2018: £6 million; 1 January 2018: £nil) and not rated (31 December 2018: £36 million; 1 January 2018: £23 million). |
Assets and liabilities [member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Maturity analysis for total assets and total liabilities | The table below analyses assets and liabilities of the Group into relevant maturity groupings based on the remaining contractual period at the balance sheet date; balances with no fixed maturity are included in the over 5 years category. Certain balances, included in the table below on the basis of their residual maturity, are repayable on demand upon payment of a penalty. Up to 1-3 3-6 6-9 9-12 1-2 2-5 Over 5 Total At 31 December 2018 Assets Cash and balances at central banks 54,662 1 – – – – – – 54,663 Financial assets at fair value through profit or loss 10,686 8,826 8,492 5,133 2,587 2,090 5,467 115,248 158,529 Derivative financial instruments 579 688 418 336 441 1,064 3,075 16,994 23,595 Loans and advances to banks 2,594 520 584 172 203 160 – 2,050 6,283 Loans and advances to customers 36,326 19,383 18,415 14,378 11,318 30,459 72,028 282,551 484,858 Debt securities held at amortised cost 7 – – 521 – – 2,262 2,448 5,238 Financial assets at fair value through other comprehensive income 166 453 249 800 1,685 2,536 11,496 7,430 24,815 Other assets 2,667 1,552 196 238 219 387 1,118 33,240 39,617 Total assets 107,687 31,423 28,354 21,578 16,453 36,696 95,446 459,961 797,598 Liabilities Deposits from banks 2,793 1,688 748 54 45 4,758 16,052 4,182 30,320 Customer deposits 380,753 10,623 5,628 4,543 4,431 6,421 3,244 2,423 418,066 Derivative financial instruments and financial liabilities at fair value through profit or loss 5,160 11,877 5,048 1,663 522 1,104 4,108 22,438 51,920 Debt securities in issue 4,172 5,692 9,007 4,668 1,694 13,062 28,676 24,197 91,168 Liabilities arising from insurance and investment contracts 1,844 1,850 2,316 2,302 2,104 7,995 20,986 73,330 112,727 Other liabilities 4,403 3,201 733 1,182 1,383 756 232 13,652 25,542 Subordinated liabilities 85 145 95 251 – 2,600 2,559 11,921 17,656 Total liabilities 399,210 35,076 23,575 14,663 10,179 36,696 75,857 152,143 747,399 At 31 December 2017 Assets Cash and balances at central banks 58,519 2 – – – – – – 58,521 Financial assets at fair value through profit or loss 11,473 13,345 4,858 2,781 1,056 2,655 5,341 121,369 162,878 Derivative financial instruments 449 601 763 451 503 965 2,763 19,339 25,834 Loans and advances to banks 3,104 314 190 190 192 131 2,405 85 6,611 Loans and advances to customers 28,297 15,953 13,585 11,881 10,482 29,340 70,967 291,993 472,498 Debt securities held as loans and receivables 10 29 – – 7 350 2,775 472 3,643 Available-for-sale financial assets 59 365 286 1,025 265 3,040 15,366 21,692 42,098 Other assets 3,807 897 414 1,170 854 725 5,618 26,541 40,026 Total assets 105,718 31,506 20,096 17,498 13,359 37,206 105,235 481,491 812,109 Liabilities Deposits from banks 2,810 2,318 1,885 87 28 – 22,378 298 29,804 Customer deposits 366,778 18,821 10,615 5,524 5,074 7,823 2,986 503 418,124 Derivative financial instruments and financial liabilities at fair value through profit or loss 19,215 16,932 4,933 3,419 948 1,961 4,298 25,295 77,001 Debt securities in issue 3,248 6,014 4,431 3,506 2,902 6,333 25,669 20,347 72,450 Liabilities arising from insurance and investment contracts 1,898 2,003 2,484 2,466 2,425 8,532 21,842 77,210 118,860 Other liabilities 4,229 2,805 239 2,216 1,894 1,498 1,933 13,991 28,805 Subordinated liabilities – 202 1,588 – 570 574 3,983 11,005 17,922 Total liabilities 398,178 49,095 26,175 17,218 13,841 26,721 83,089 148,649 762,966 |
Financial liabilities, category [member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Disclosure of maturity analysis for non-derivative financial liabilities [text block] | The table below analyses financial instrument liabilities of the Group, excluding those arising from insurance and participating investment contracts, on an undiscounted future cash flow basis according to contractual maturity, into relevant maturity groupings based on the remaining period at the balance sheet date; balances with no fixed maturity are included in the over 5 years category. Up to 1-3 3-12 1-5 Over 5 Total At 31 December 2018 Deposits from banks 2,820 2,710 1,022 20,920 3,502 30,974 Customer deposits 380,985 10,584 14,169 11,634 1,554 418,926 Financial liabilities at fair value through profit or loss 9,693 10,984 7,553 930 10,771 39,931 Debt securities in issue 5,942 7,314 22,564 48,233 24,201 108,254 Liabilities arising from non-participating investment contracts 13,853 – – – – 13,853 Subordinated liabilities 247 1,017 1,144 8,231 19,328 29,967 Total non-derivative financial liabilities 413,540 32,609 46,452 89,948 59,356 641,905 Derivative financial liabilities: Gross settled derivatives – outflows 39,165 27,976 23,978 43,239 33,763 168,121 Gross settled derivatives – inflows (38,301 ) (27,283 ) (23,134 ) (40,690 ) (28,933 ) (158,341 ) Gross settled derivatives – net flows 864 693 844 2,549 4,830 9,780 Net settled derivatives liabilities 13,511 103 209 782 2,193 16,798 Total derivative financial liabilities 14,375 796 1,053 3,331 7,023 26,578 At 31 December 2017 Deposits from banks 2,516 3,545 2,096 21,498 660 30,315 Customer deposits 367,103 18,854 21,308 11,198 2,375 420,838 Financial liabilities at fair value through profit or loss 21,286 14,424 6,499 4,251 13,044 59,504 Debt securities in issue 3,444 6,331 12,562 36,999 23,923 83,259 Liabilities arising from non-participating investment contracts 15,447 – – – – 15,447 Subordinated liabilities 231 454 2,907 7,170 19,164 29,926 Total non-derivative financial liabilities 410,027 43,608 45,372 81,116 59,166 639,289 Derivative financial liabilities: Gross settled derivatives – outflows 23,850 31,974 24,923 43,444 30,605 154,796 Gross settled derivatives – inflows (23,028 ) (30,972 ) (23,886 ) (43,523 ) (32,065 ) (153,474 ) Gross settled derivatives – net flows 822 1,002 1,037 (79 ) (1,460 ) 1,322 Net settled derivatives liabilities 17,425 128 776 974 2,795 22,098 Total derivative financial liabilities 18,247 1,130 1,813 895 1,335 23,420 |
Off balance sheet [Member] | |
FINANCIAL RISK MANAGEMENT (Tables) [Line Items] | |
Maturity Analysis For Commitments And Contingent Liabilities | The following tables set out the amounts and residual maturities of the Group’s off balance sheet contingent liabilities and commitments. Up to 1 month £m 1-3 months £m 3-6 months £m 6-9 months £m 9-12 months £m 1-3 years £m 3-5 years £m Over 5 years £m Total £m At 31 December 2018 Acceptances and endorsements 64 83 34 13 – – – – 194 Other contingent liabilities 450 484 203 223 150 665 133 749 3,057 Total contingent liabilities 514 567 237 236 150 665 133 749 3,251 Lending commitments and guarantees 67,055 2,947 4,474 6,055 16,123 17,737 15,374 4,602 134,367 Other commitments 428 – – 2 92 20 13 176 731 Total commitments and guarantees 67,483 2,947 4,474 6,057 16,215 17,757 15,387 4,778 135,098 Total contingents and commitments 67,997 3,514 4,711 6,293 16,365 18,422 15,520 5,527 138,349 At 31 December 2017 Acceptances and endorsements 12 51 4 – – 4 – – 71 Other contingent liabilities 392 669 210 131 205 506 271 656 3,040 Total contingent liabilities 404 720 214 131 205 510 271 656 3,111 Lending commitments and guarantees 66,964 3,137 5,966 5,525 14,572 18,001 16,577 4,503 135,245 Other commitments 19 – – 38 – 46 71 210 384 Total commitments and guarantees 66,983 3,137 5,966 5,563 14,572 18,047 16,648 4,713 135,629 Total contingents and commitments 67,387 3,857 6,180 5,694 14,777 18,557 16,919 5,369 138,740 |
CONSOLIDATED CASH FLOW STATEM_3
CONSOLIDATED CASH FLOW STATEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of cash flow statement [text block] [Abstract] | |
Disclosure of Change in Operating Assets [text block] | 2018 £m 2017 2016 Change in financial assets held at amortised cost (27,038 ) (24,747 ) 710 Change in derivative financial instruments and financial assets at fair value through profit or loss 22,046 9,916 (13,889 ) Change in other operating assets 520 (661 ) 961 Change in operating assets (4,472 ) (15,492 ) (12,218 ) |
Disclosure of change in operating liabilities [text block] | 2018 2017 2016 £m £m £m Change in deposits from banks 515 13,415 (654 ) Change in customer deposits (322 ) 2,913 (3,690 ) Change in debt securities in issue 18,579 (3,600 ) (6,552 ) Change in derivative financial instruments and liabilities at fair value through profit or loss (24,606 ) (12,481 ) 11,265 Change in investment contract liabilities (1,594 ) (4,665 ) (2,665 ) Change in other operating liabilities (1,245 ) 136 (363 ) Change in operating liabilities (8,673 ) (4,282 ) (2,659 ) |
Disclosure of Non-cash and other items [text block] | 2018 £m 2017 2016 Depreciation and amortisation 2,405 2,370 2,380 Revaluation of investment properties (139 ) (230 ) 83 Allowance for loan losses 1,024 691 592 Write-off of allowance for loan losses, net of recoveries (1,025 ) (1,061 ) (1,272 ) Impairment charge relating to undrawn balances (73 ) (9 ) (13 ) Impairment of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) (14 ) 6 173 Change in insurance contract liabilities (4,547 ) 9,168 14,084 Payment protection insurance provision 750 1,300 1,350 Other regulatory provisions 600 865 1,085 Other provision movements (518 ) (8 ) (27 ) Net charge (credit) in respect of defined benefit schemes 405 369 287 Impact of consolidation and deconsolidation of OEICs 1 – – (3,157 ) Unwind of discount on impairment allowances (44 ) (23 ) (32 ) Foreign exchange impact on balance sheet 2 191 125 (155 ) Loss on ECN transactions – – 721 Interest expense on subordinated liabilities 1,388 1,436 1,864 Loss (profit) on disposal of businesses – – – Net gain on sale of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) (275 ) (446 ) (575 ) Hedging valuation adjustments on subordinated debt (429 ) (327 ) 153 Value of employee services 260 414 309 Transactions in own shares 40 (411 ) (175 ) Accretion of discounts and amortisation of premiums and issue costs 1,947 1,701 465 Share of post-tax results of associates and joint ventures (9 ) (6 ) 1 Transfers to income statement from reserves (701 ) (650 ) (557 ) Profit on disposal of tangible fixed assets (104 ) (120 ) (93 ) Other non-cash items (34 ) – (17 ) Total non-cash items 1,098 15,154 17,474 Contributions to defined benefit schemes (868 ) (587 ) (630 ) Payments in respect of payment protection insurance provision (2,104 ) (1,657 ) (2,200 ) Payments in respect of other regulatory provisions (1,032 ) (928 ) (761 ) Other 14 – 2 Total other items (3,990 ) (3,172 ) (3,589 ) Non-cash and other items (2,892 ) 11,982 13,885 1 These OEICs (Open-ended investment companies) are mutual funds which are consolidated if the Group manages the funds and also has a sufficient beneficial interest. The population of OEICs to be consolidated varies at each reporting date as external investors acquire and divest holdings in the various funds. The consolidation of these funds is effected by the inclusion of the fund investments and a matching liability to the unitholders; and changes in funds consolidated represent a non-cash movement on the balance sheet. 2 When considering the movement on each line of the balance sheet, the impact of foreign exchange rate movements is removed in order to show the underlying cash impact. |
Disclosure of cash and cash equivalents [text block] | 2018 £m 2017 2016 Cash and balances at central banks 54,663 58,521 47,452 Less: mandatory reserve deposits 1 (2,553 ) (957 ) (914 ) 52,110 57,564 46,538 Loans and advances to banks 6,283 6,611 26,902 Less: amounts with a maturity of three months or more (3,169 ) (3,193 ) (11,052 ) 3,114 3,418 15,850 Total cash and cash equivalents 55,224 60,982 62,388 1 Mandatory reserve deposits are held with local central banks in accordance with statutory requirements; these deposits are not available to finance the Group’s day-to-day operations. |
Disclosure of Acquisitions of Group Undertakings and Businesses [text block] | 2018 £m 2017 2016 Net assets acquired: Cash and cash equivalents – 123 – Loans and advances to customers – 7,811 – Available-for-sale financial assets – 16 – Intangible assets 21 702 – Property, plant and equipment – 6 – Other assets 6 414 – Deposits from banks 1 – (6,431 ) – Other liabilities (1 ) (927 ) – Goodwill arising on acquisition – 302 – Cash consideration 26 2,016 – Less: Cash and cash equivalents acquired – (123 ) – Net cash outflow arising from acquisition of subsidiaries and businesses 26 1,893 – Acquisition of and additional investment in joint ventures 23 30 20 Net cash outflow from acquisitions in the year 49 1,923 20 1 Upon acquisition in 2017, the funding of MBNA was assumed by Lloyds Bank plc. |
Disclosure of disposal of group undertakings and businesses | 2018 £m 2017 2016 Loans and advances to customers – 342 – Non-controlling interests – (242 ) – Other net assets (liabilities) 1 29 5 1 129 5 Net assets 1 129 5 Non-cash consideration received – – – (Loss) profit on sale – – – Cash consideration received on losing control of group undertakings and businesses 1 129 5 Cash and cash equivalents disposed – – – Net cash inflow (outflow) 1 129 5 |
ADOPTION OF IFRS 9 AND IFRS 15
ADOPTION OF IFRS 9 AND IFRS 15 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
IFRS 9 and IFRS 15 [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Tables) [Line Items] | |
Disclosure Of Initial Application Of Standards Or Interpretations [Table Text Block] | The following table summarises the adjustments arising on the adoption of IFRS 9 and IFRS 15 (see below) to the Group’s balance sheet as at 1 January 2018. As at IFRS 9: IFRS 9: IFRS 15 Adjusted as at 1 January 2018 £m Assets Cash and balances at central banks 58,521 – – – 58,521 Items in course of collection from banks 755 – – – 755 Financial assets at fair value through profit or loss 162,878 13,130 – – 176,008 Derivative financial instruments 25,834 (360 ) – – 25,474 Loans and advances to banks 6,611 (2,364 ) (1 ) – 4,246 Loans and advances to customers 472,498 (10,460 ) (1,022 ) – 461,016 Debt securities 3,643 (329 ) – – 3,314 Financial assets at amortised cost 482,752 (13,153 ) (1,023 ) – 468,576 Financial assets at fair value through other comprehensive income 42,917 – – 42,917 Available-for-sale financial assets 42,098 (42,098 ) – – Goodwill 2,310 – – – 2,310 Value of in-force business 4,839 – – – 4,839 Other intangible assets 2,835 – – – 2,835 Property, plant and equipment 12,727 – – – 12,727 Current tax recoverable 16 – – – 16 Deferred tax assets 2,284 22 300 3 2,609 Retirement benefit assets 723 – – – 723 Other assets 13,537 (655 ) (10 ) – 12,872 Total assets 812,109 (197 ) (733 ) 3 811,182 Equity and liabilities Liabilities Deposits from banks 29,804 – – – 29,804 Customer deposits 418,124 – – – 418,124 Items in course of transmission to banks 584 – – – 584 Financial liabilities at fair value through profit or loss 50,877 58 – – 50,935 Derivative financial instruments 26,124 – – – 26,124 Notes in circulation 1,313 – – – 1,313 Debt securities in issue 72,450 (48 ) – – 72,402 Liabilities arising from insurance contracts and participating investment contracts 103,413 – – – 103,413 Liabilities arising from non-participating investment contracts 15,447 – – – 15,447 Other liabilities 20,730 – (3 ) 14 20,741 Retirement benefit obligations 358 – – – 358 Current tax liabilities 274 – – – 274 Other provisions 5,546 – 243 – 5,789 Subordinated liabilities 17,922 – – – 17,922 Total liabilities 762,966 10 240 14 763,230 Equity Shareholders’ equity 43,551 (207 ) (973 ) (11 ) 42,360 Other equity instruments 5,355 – – – 5,355 Non-controlling interests 237 – – – 237 Total equity 49,143 (207 ) (973 ) (11 ) 47,952 Total equity and liabilities 812,109 (197 ) (733 ) 3 811,182 |
IFRS 9 [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Tables) [Line Items] | |
Explanation of initial application of impairment requirements for financial instruments [text block] | The following table summarises the impact of the transitional adjustment on the Group’s loss allowances at 1 January 2018: IAS 39 allowance Transitional IFRS 9 loss allowance at 1 January 2018 £m Loans and advances to banks – 1 1 Loans and advances to customers 2,201 1,022 3,223 Debt securities 26 – 26 Other – 10 10 2,227 1,033 3,260 Provisions for undrawn commitments and financial guarantees 30 243 273 Total loss allowance 2,257 1,276 3,533 |
Disclosure of expected impact of initial application of new standards or interpretations [text block] | The net impact of IFRS 9 on transition was an increase in impairment allowances of £1,276 million which is analysed as follows: IAS 39 12-month Lifetime Undrawn Multiple Total £m Retail Secured (561 ) 24 371 1 226 61 Unsecured (133 ) 279 251 161 8 566 UK Motor Finance (99 ) 112 72 1 1 87 Other (30 ) 30 29 13 4 46 (823 ) 445 723 176 239 760 Commercial Banking (190 ) 108 330 60 63 371 Insurance and Wealth (5 ) 15 6 – 1 17 Other (115 ) 51 144 – 48 128 Total (1,133 ) 619 1,203 236 351 1,276 |
Disclosure of reclassification of financial instruments [text block] | IFRS 9 reclassification to IAS 39 carrying At fair value At fair value Total IFRS 9 At Financial assets Financial assets at fair value through profit or loss 162,878 14,447 (1,139 ) 13,308 (178 ) 176,008 Derivatives 25,834 (360 ) – (360 ) – 25,474 Loans and advances to banks 6,611 (2,274 ) (90 ) (2,364 ) – 4,247 Loans and advances to customers 472,498 (10,474 ) – (10,474 ) 14 462,038 Debt securities 3,643 – (329 ) (329 ) – 3,314 Financial assets at amortised cost 482,752 (12,748 ) (419 ) (13,167 ) 14 469,599 Financial assets at fair value through other comprehensive income – 42,972 42,972 (55 ) 42,917 Available-for-sale financial assets 42,098 (684 ) (41,414 ) (42,098 ) – – Other assets 13,537 (655 ) – (655 ) – 12,882 Total 727,099 – – – (219 ) 726,880 Financial liabilities Financial liabilities at fair value through profit or loss 50,877 48 – 48 10 50,935 Debt securities in issue 72,450 (48 ) – (48 ) – 72,402 Total 123,327 – – – 10 123,337 |
PARENT COMPANY DISCLOSURES (Tab
PARENT COMPANY DISCLOSURES (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2018 | |
PARENT COMPANY DISCLOSURES (Tables) [Line Items] | |
Condensed Income Statement [Table Text Block] | 2018 2017 2016 Net interest (expense) income (173 ) (121 ) 66 Other income 4,524 2,792 3,618 Total income 4,351 2,671 3,684 Operating expenses (246 ) (255 ) (221 ) Trading surplus 4,105 2,416 3,463 Impairment (3 ) – – Profit on ordinary activities before tax 4,102 2,416 3,463 Tax expense (80 ) (17 ) (328 ) Profit for the year 4,022 2,399 3,135 Profit attributable to ordinary shareholders 3,589 1,984 2,723 Profit attributable to other equity holders 1 433 415 412 Profit for the year 4,022 2,399 3,135 1 The profit after tax attributable to other equity holders of £433 million (2017: £415 million; 2016: £412 million) is offset in reserves by a tax credit attributable to ordinary shareholders of £82 million (2017: £79 million; 2016: £82 million). |
Condensed Balance Sheet [Table Text Block] | 2018 2017 Assets Non-current assets: Investment in subsidiaries 46,725 44,863 Loans to subsidiaries 24,211 14,379 Deferred tax assets 9 22 70,945 59,264 Current assets: Derivative financial instruments 256 265 Financial assets at fair value through profit or loss 588 – Other assets 955 961 Amounts due from subsidiaries 27 47 Cash and cash equivalents 57 272 Current tax recoverable 76 724 1,959 2,269 Total assets 72,904 61,533 Equity and liabilities Capital and reserves: Share capital 7,116 7,197 Share premium account 17,719 17,634 Merger reserve 7,423 7,423 Capital redemption reserve 4,273 4,115 Retained profits 2,103 1,500 Shareholders’ equity 38,634 37,869 Other equity instruments 6,491 5,355 Total equity 45,125 43,224 Non-current liabilities: Debt securities in issue 20,394 10,886 Subordinated liabilities 6,043 3,993 26,437 14,879 Current liabilities: Derivative financial instruments 209 327 Other liabilities 1,133 3,103 1,342 3,430 Total liabilities 27,779 18,309 Total equity and liabilities 72,904 61,533 |
Condensed Cash Flow Statement [Table Text Block] | 2018 £m 2017 2016 Profit before tax 4,102 2,416 3,463 Fair value and exchange adjustments and other non-cash items (715 ) 495 1,986 Change in other assets (572 ) 18 (50 ) Change in other liabilities and other items 7,538 8,431 (8,392 ) Dividends received (4,000 ) (2,650 ) (3,759 ) Distributions on other equity instruments received (324 ) (292 ) (119 ) Tax (paid) received 660 (197 ) (679 ) Net cash provided by (used in) operating activities 6,689 8,221 (7,550 ) Cash flows from investing activities Return of capital contribution 9 77 441 Dividends received 4,000 2,650 3,759 Distributions on other equity instruments received 324 292 119 Acquisition of and capital injections to subsidiaries (12,753 ) (320 ) (3,522 ) Return of capital 11,114 – – Amounts advanced to subsidiaries (21,577 ) (8,476 ) (4,978 ) Repayment of loans to subsidiaries 12,602 475 13,166 Interest received on loans to subsidiaries 370 244 496 Net cash (used in) provided by investing activities (5,911 ) (5,058 ) 9,481 Cash flows from financing activities Dividends paid to ordinary shareholders (2,240 ) (2,284 ) (2,014 ) Distributions on other equity instruments (433 ) (415 ) (412 ) Issue of subordinated liabilities 1,729 – 1,061 Interest paid on subordinated liabilities (275 ) (248 ) (229 ) Share buy-back (1,005 ) – – Issue of other equity instruments 1,129 – – Repayment of subordinated liabilities – – (319 ) Proceeds from issue of ordinary shares 102 14 – Net cash provided by financing activities (993 ) (2,933 ) (1,913 ) Change in cash and cash equivalents (215 ) 230 18 Cash and cash equivalents at beginning of year 272 42 24 Cash and cash equivalents at end of year 57 272 42 |
Disclosure of interests in subsidiaries [text block] | The principal subsidiaries, all of which have prepared accounts to 31 December and whose results are Country of Percentage Nature of business Lloyds Bank plc England 100% Banking and financial services Scottish Widows Limited Scotland 100% 1 Life assurance HBOS plc Scotland 100% 1 Holding company Bank of Scotland plc Scotland 100% 1 Banking and financial services Lloyds Bank Corporate Markets plc England 100% Banking and financial services 1 Indirect interest. |
Statement of changes in equity [Member] | |
PARENT COMPANY DISCLOSURES (Tables) [Line Items] | |
Statement of Changes In Equity [table text block] | Share capital Merger Capital Retained 1 Total Other equity Total Balance at 1 January 2016 24,558 7,633 4,115 785 37,091 5,355 42,446 Total comprehensive income 1 – – – 3,135 3,135 – 3,135 Dividends paid – – – (2,014 ) (2,014 ) – (2,014 ) Distributions on other equity instruments, net of tax 2 – – – (330 ) (330 ) – (330 ) Redemption of preference shares 210 (210 ) – – – – – Movement in treasury shares – – – (301 ) (301 ) – (301 ) Value of employee services: Share option schemes – – – 141 141 – 141 Other employee award schemes – – – 168 168 – 168 Balance at 31 December 2016 24,768 7,423 4,115 1,584 37,890 5,355 43,245 Total comprehensive income 1 – – – 2,399 2,399 – 2,399 Dividends paid – – – (2,284 ) (2,284 ) – (2,284 ) Distributions on other equity instruments, net of tax 2 – – – (336 ) (336 ) – (336 ) Issue of ordinary shares 63 – – – 63 – 63 Movement in treasury shares – – – (277 ) (277 ) – (277 ) Value of employee services: Share option schemes – – – 82 82 – 82 Other employee award schemes – – – 332 332 – 332 Balance at 31 December 2017 24,831 7,423 4,115 1,500 37,869 5,355 43,224 Adjustment on adoption of IFRS 9 – – – (2 ) (2 ) – (2 ) Balance at 1 January 2018 24,831 7,423 4,115 1,498 37,867 5,355 43,222 Total comprehensive income 1 – – – 4,022 4,022 – 4,022 Dividends paid – – – (2,240 ) (2,240 ) – (2,240 ) Distributions on other equity instruments, net of tax 2 – – – (351 ) (351 ) – (351 ) Issue of ordinary shares 162 – – – 162 – 162 Share buy-back programme (158 ) – 158 (1,005 ) (1,005 ) – (1,005 ) Issue of AT1 securities – – – (7 ) (7 ) 1,136 1,129 Movement in treasury shares – – – (74 ) (74 ) – (74 ) Value of employee services: Share option schemes – – – 53 53 – 53 Other employee award schemes – – – 207 207 – 207 Balance at 31 December 2018 24,835 7,423 4,273 2,103 38,634 6,491 45,125 1 Total comprehensive income comprises only the profit for the year. 2 Distributions on other equity instruments are shown net of tax of £82 million (2017: £79 million; 2016: £82 million) credited to retained profits. |
CONDENSED CONSOLIDATING FINAN_2
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Consolidated Income Statement [Member] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | For the year ended 31 December 2018 Company Lloyds Bank Subsidiaries Consolidation Group Net interest income (173 ) 6,129 7,769 (329 ) 13,396 Other income 4,524 7,992 7,136 (10,957 ) 8,695 Total income 4,351 14,121 14,905 (11,286 ) 22,091 Insurance claims – – (3,465 ) – (3,465 ) Total income, net of insurance claims 4,351 14,121 11,440 (11,286 ) 18,626 Operating expenses (246 ) (6,492 ) (7,033 ) 2,042 (11,729 ) Trading surplus 4,105 7,629 4,407 (9,244 ) 6,897 Impairment (3 ) (504 ) (480 ) 50 (937 ) Profit before tax 4,102 7,125 3,927 (9,194 ) 5,960 Taxation (80 ) (853 ) (795 ) 168 (1,560 ) Profit for the year 4,022 6,272 3,132 (9,026 ) 4,400 For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Net interest (expense) income (121 ) 5,829 5,360 (156 ) 10,912 Other income 2,792 7,642 22,553 (9,662 ) 23,325 Total income 2,671 13,471 27,913 (9,818 ) 34,237 Insurance claims – – (15,578 ) – (15,578 ) Total income, net of insurance claims 2,671 13,471 12,335 (9,818 ) 18,659 Operating expenses (255 ) (7,201 ) (6,939 ) 2,049 (12,346 ) Trading surplus 2,416 6,270 5,396 (7,769 ) 6,313 Impairment – (462 ) (281 ) 55 (688 ) Profit before tax 2,416 5,808 5,115 (7,714 ) 5,625 Taxation (17 ) (529 ) (1,153 ) (29 ) (1,728 ) Profit for the year 2,399 5,279 3,962 (7,743 ) 3,897 For the year ended 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Net interest income 66 4,883 4,661 (336 ) 9,274 Other income 3,618 5,489 30,349 (9,119 ) 30,337 Total income 3,684 10,372 35,010 (9,455 ) 39,611 Insurance claims – – (22,344 ) – (22,344 ) Total income, net of insurance claims 3,684 10,372 12,666 (9,455 ) 17,267 Operating expenses (221 ) (7,722 ) (6,380 ) 1,696 (12,627 ) Trading surplus 3,463 2,650 6,286 (7,759 ) 4,640 Impairment – (620 ) (239 ) 107 (752 ) Profit before tax 3,463 2,030 6,047 (7,652 ) 3,888 Taxation (328 ) (77 ) (1,815 ) 496 (1,724 ) Profit for the year 3,135 1,953 4,232 (7,156 ) 2,164 |
Condensed Consolidated Statement of Comprehensive Income [Member] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | For the year ended 31 December 2018 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 4,022 6,272 3,132 (9,026 ) 4,400 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post-retirement defined benefit scheme remeasurements: Remeasurements before taxation – (206 ) 373 – 167 Taxation – 44 (91 ) – (47 ) – (162 ) 282 – 120 Movements in revaluation reserve in respect of equity shares held at fair value through other comprehensive income: Change in fair value – (102 ) 9 (4 ) (97 ) Tax – – – 22 22 – (102 ) 9 18 (75 ) Gains and losses attributable to own credit risk: Gains (losses) before tax – 533 – – 533 Tax – (144 ) – – (144 ) – 389 – – 389 Share of other comprehensive income of associates and joint ventures – – – 8 8 Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income: Change in fair value – (58 ) (35 ) 56 (37 ) Income statement transfers in respect of disposals – (258 ) (6 ) (11 ) (275 ) Taxation – 114 5 – 119 – (202 ) (36 ) 45 (193 ) Movements in cash flow hedging reserve: Effective portion of changes in fair value – 255 (89 ) 68 234 Net income statement transfers – (628 ) (29 ) (44 ) (701 ) Taxation – 87 31 (5 ) 113 – (286 ) (87 ) 19 (354 ) Currency translation differences (tax: nil) – 2 (10 ) – (8 ) Other comprehensive income for the year, net of tax – (361 ) 158 90 (113 ) Total comprehensive income for the year 4,022 5,911 3,290 (8,936 ) 4,287 Total comprehensive income attributable to ordinary shareholders 3,589 5,636 3,085 (8,554 ) 3,756 Total comprehensive income attributable to other equity holders 433 275 107 (382 ) 433 Total comprehensive income attributable to equity holders 4,022 5,911 3,192 (8,936 ) 4,189 Total comprehensive income attributable to non-controlling interests – – 98 – 98 Total comprehensive income for the year 4,022 5,911 3,290 (8,936 ) 4,287 For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 2,399 5,279 3,962 (7,743 ) 3,897 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post–retirement defined benefit scheme remeasurements: Remeasurements before taxation – 442 186 – 628 Taxation – (110 ) (36 ) – (146 ) – 332 150 – 482 Gains and losses attributable to own credit risk: Gains (losses) before taxation – (55 ) – – (55 ) Taxation – 15 – – 15 – (40 ) – – (40 ) Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of available-for-sale financial assets: Change in fair value – 231 38 34 303 Income statement transfers in respect of disposals – (333 ) (131 ) 18 (446 ) Income statement transfers in respect of impairment – – 9 (3 ) 6 Taxation – 46 17 – 63 – (56 ) (67 ) 49 (74 ) Movements in cash flow hedging reserve: Effective portion of changes in fair value – 15 (136 ) (242 ) (363 ) Net income statement transfers – (436 ) 46 (261 ) (651 ) Taxation – 130 23 130 283 – (291 ) (67 ) (373 ) (731 ) Currency translation differences (tax: nil) – (5 ) (27 ) – (32 ) Other comprehensive income for the year, net of tax – (60 ) (11 ) (324 ) (395 ) Total comprehensive income for the year 2,399 5,219 3,951 (8,067 ) 3,502 Total comprehensive income attributable to ordinary shareholders 1,984 4,946 3,740 (7,673 ) 2,997 Total comprehensive income attributable to other equity holders 415 273 121 (394 ) 415 Total comprehensive income attributable to equity holders 2,399 5,219 3,861 (8,067 ) 3,412 Total comprehensive income attributable to non-controlling interests – – 90 – 90 Total comprehensive income for the year 2,399 5,219 3,951 (8,067 ) 3,502 For the year ended 31 December 2016 Company Lloyds Bank Subsidiaries Consolidation Group Profit (loss) for the year 3,135 1,953 4,232 (7,156 ) 2,164 Other comprehensive income Items that will not subsequently be reclassified to profit or loss: Post-retirement defined benefit scheme remeasurements: Remeasurements before taxation – (682 ) (666 ) – (1,348 ) Taxation – 184 136 – 320 – (498 ) (530 ) – (1,028 ) Items that may subsequently be reclassified to profit or loss: Movements in revaluation reserve in respect of available-for-sale financial assets: Adjustment on transfer from held-to-maturity portfolio – 1,544 – – 1,544 Change in fair value – 268 84 4 356 Income statement transfers in respect of disposals – (507 ) (68 ) – (575 ) Income statement transfers in respect of impairment – 172 1 – 173 Taxation – (269 ) (32 ) – (301 ) – 1,208 (15 ) 4 1,197 Movements in cash flow hedging reserve: Effective portion of changes in fair value – 1,290 125 1,017 2,432 Net income statement transfers – (241 ) (233 ) (83 ) (557 ) Taxation – (258 ) 29 (237 ) (466 ) – 791 (79 ) 697 1,409 Currency translation differences (tax: nil) – 19 44 (67 ) (4 ) Other comprehensive income for the year, net of tax – 1,520 (580 ) 634 1,574 Total comprehensive income for the year 3,135 3,473 3,652 (6,522 ) 3,738 Total comprehensive income attributable to ordinary shareholders 2,723 3,354 3,450 (6,302 ) 3,225 Total comprehensive income attributable to other equity holders 412 119 101 (220 ) 412 Total comprehensive income attributable to equity holders 3,135 3,473 3,551 (6,522 ) 3,637 Total comprehensive income attributable to non-controlling interests – – 101 – 101 Total comprehensive income for the year 3,135 3,473 3,652 (6,522 ) 3,738 |
Condensed Consolidated Balance Sheet [Member] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | BALANCE SHEETS At 31 December 2018 Company Lloyds Bank Subsidiaries Consolidation Group Assets Cash and balances at central banks – 37,632 17,031 – 54,663 Items in course of collection from banks – 464 183 – 647 Financial assets at fair value through profit or loss 588 20,843 139,339 (2,241 ) 158,529 Derivative financial instruments 256 15,431 26,872 (18,964 ) 23,595 At amortised cost: Loans and advances to banks – 3,153 3,105 25 6,283 Loans and advances to customers – 172,315 312,388 155 484,858 Debt securities – 4,960 271 7 5,238 Due from fellow Lloyds Banking Group undertakings 24,295 173,475 99,186 (296,956 ) – Financial assets at fair value through other comprehensive income – 23,208 1,607 – 24,815 Goodwill – – 2,331 (21 ) 2,310 Value of in-force business – – 4,543 219 4,762 Other intangible assets – 2,062 318 967 3,347 Property, plant and equipment – 2,940 9,346 14 12,300 Current tax recoverable 76 – 227 (298 ) 5 Deferred tax assets 9 1,980 2,278 (1,814 ) 2,453 Retirement benefit assets – 704 551 12 1,267 Investment in subsidiary undertakings, including assets held for sale 46,725 32,656 – (79,381 ) – Other assets 955 849 11,366 (644 ) 12,526 Total assets 72,904 492,672 630,942 (398,920 ) 797,598 Equity and liabilities Liabilities Deposits from banks – 5,320 25,002 (2 ) 30,320 Customer deposits – 229,402 188,735 (71 ) 418,066 Due to fellow Lloyds Banking Group undertakings 51 88,383 175,761 (264,195 ) – Items in course of transmission to banks – 341 295 – 636 Financial liabilities at fair value through profit or loss – 17,719 14,177 (1,349 ) 30,547 Derivative financial instruments 209 14,546 25,582 (18,964 ) 21,373 Notes in circulation – – 1,104 – 1,104 Debt securities in issue 20,394 70,556 30,102 (29,884 ) 91,168 Liabilities arising from insurance contracts and participating investment contracts – – 98,890 (16 ) 98,874 Liabilities arising from non-participating investment contracts – – 13,853 – 13,853 Other liabilities 1,082 2,643 18,793 (2,885 ) 19,633 Retirement benefit obligations – 121 122 2 245 Current tax liabilities – 231 639 (493 ) 377 Deferred tax liabilities – – 750 (750 ) – Other provisions – 1,608 2,135 (196 ) 3,547 Subordinated liabilities 6,043 9,528 6,611 (4,526 ) 17,656 Total liabilities 27,779 440,398 602,551 (323,329 ) 747,399 Equity Shareholders’ equity 38,634 49,057 25,530 (69,787 ) 43,434 Other equity instruments 6,491 3,217 2,587 (5,804 ) 6,491 Total equity excluding non-controlling interests 45,125 52,274 28,117 (75,591 ) 49,925 Non-controlling interests – – 274 – 274 Total equity 45,125 52,274 28,391 (75,591 ) 50,199 Total equity and liabilities 72,904 492,672 630,942 (398,920 ) 797,598 Consolidation Company Lloyds Bank Subsidiaries adjustments Group At 31 December 2017 £m £m £m £m £m Assets Cash and balances at central banks – 55,835 2,686 – 58,521 Items in course of collection from banks – 490 265 – 755 Financial assets at fair value through profit or loss – 43,977 126,864 (7,963 ) 162,878 Derivative financial instruments 265 26,764 14,785 (15,980 ) 25,834 At amortised cost: Loans and advances to banks – 3,611 2,975 25 6,611 Loans and advances to customers – 170,804 294,463 7,231 472,498 Debt securities – 3,182 420 41 3,643 Due from fellow Lloyds Banking Group undertakings 14,698 180,772 119,914 (315,384 ) – Available-for-sale financial assets – 42,566 1,582 (2,050 ) 42,098 Goodwill – – 2,332 (22 ) 2,310 Value of in-force business – – 4,590 249 4,839 Other intangible assets – 1,415 345 1,075 2,835 Property, plant and equipment – 3,252 9,526 (51 ) 12,727 Current tax recoverable 724 – 26 (734 ) 16 Deferred tax assets 22 1,995 2,285 (2,018 ) 2,284 Retirement benefit assets – 673 69 (19 ) 723 Investment in subsidiary undertakings, including assets held for sale 44,863 40,500 – (85,363 ) – Other assets 961 1,117 12,107 (648 ) 13,537 Total assets 61,533 576,953 595,234 (421,611 ) 812,109 Equity and liabilities Liabilities Deposits from banks – 7,538 22,268 (2 ) 29,804 Customer deposits – 234,397 183,830 (103 ) 418,124 Due to fellow Lloyds Banking Group undertakings 2,168 112,769 179,952 (294,889 ) – Items in course of transmission to banks – 304 280 – 584 Financial liabilities at fair value through profit or loss – 51,045 53 (221 ) 50,877 Derivative financial instruments 327 28,267 13,510 (15,980 ) 26,124 Notes in circulation – – 1,313 – 1,313 Debt securities in issue 10,886 66,249 15,847 (20,532 ) 72,450 Liabilities arising from insurance contracts and participating investment contracts – – 103,434 (21 ) 103,413 Liabilities arising from non-participating investment contracts – – 15,447 – 15,447 Other liabilities 935 3,425 18,480 (2,110 ) 20,730 Retirement benefit obligations – 143 134 81 358 Current tax liabilities – 105 1,242 (1,073 ) 274 Deferred tax liabilities – – 779 (779 ) – Other provisions – 2,593 2,865 88 5,546 Subordinated liabilities 3,993 9,341 8,288 (3,700 ) 17,922 Total liabilities 18,309 516,176 567,722 (339,241 ) 762,966 Equity Shareholders’ equity 37,869 57,560 25,470 (77,348 ) 43,551 Other equity instruments 5,355 3,217 1,805 (5,022 ) 5,355 Total equity excluding non-controlling interests 43,224 60,777 27,275 (82,370 ) 48,906 Non-controlling interests – – 237 – 237 Total equity 43,224 60,777 27,512 (82,370 ) 49,143 Total equity and liabilities 61,533 576,953 595,234 (421,611 ) 812,109 |
Condensed Consolidated Cash Flow Statement [Member] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) [Line Items] | |
Disclosure of separate financial statements [text block] | For the year ended 31 December 2018 Company £m Lloyds Bank £m Subsidiaries £m Consolidation adjustments £m Group £m Net cash provided by (used in) operating activities 6,689 (27,290 ) 8,871 623 (11,107 ) Cash flows from investing activities Dividends received from subsidiary undertakings 4,000 4,867 – (8,867 ) – Distributions on other equity instruments received 324 101 – (425 ) – Financial assets at fair value through other comprehensive income: Purchases – (11,699 ) (958 ) – (12,657 ) Proceeds from sale and maturity – 25,927 918 (39 ) 26,806 Purchase of fixed assets – (1,486 ) (2,028 ) – (3,514 ) Proceeds from sale of fixed assets – 113 1,221 – 1,334 Acquisitions of and capital injections to subsidiaries (12,753 ) (111 ) (131 ) 12,946 (49 ) Return of capital 11,114 210 – (11,324 ) – Return of capital contribution 9 – – (9 ) – Capital lending to subsidiaries (21,577 ) – – 21,577 – Capital loan repayments by subsidiaries 12,602 – (12,602 ) – Interest received on lending to subsidiaries 370 – (370 ) – Disposal of businesses, net of cash disposed – 7,704 1,373 (9,076 ) 1 Net cash flows from investing activities (5,911 ) 25,626 395 (8,189 ) 11,921 Cash flows from financing activities Dividends paid to ordinary shareholders (2,240 ) (11,022 ) (5,467 ) 16,489 (2,240 ) Distributions on other equity instruments (433 ) (275 ) (150 ) 425 (433 ) Dividends paid to non-controlling interests – – (61 ) – (61 ) Interest paid on subordinated liabilities (275 ) (659 ) (673 ) 339 (1,268 ) Issue of ordinary shares 102 – – – 102 Share buy-back programme (1,005 ) – – – (1,005 ) Issue of other equity instruments 1,129 – 782 (780 ) 1,131 Proceeds from issue of subordinated liabilities 1,729 – – – 1,729 Repayment of subordinated liabilities – – (2,273 ) 17 (2,256 ) Capital contributions received – – 3,088 (3,088 ) – Return of capital contributions – (9 ) – 9 – Return of capital to parent company – (2,975 ) – 2,975 – Capital borrowing from the Company – 9,860 11,717 (21,577 ) – Capital repayments to the Company – (10,354 ) (2,248 ) 12,602 – Interest paid on borrowing from the Company – (370 ) – 370 – Changes in non-controlling interests – – – – – Net cash used in financing activities (993 ) (15,804 ) 4,715 7,781 (4,301 ) Effects of exchange rate changes on cash and cash equivalents – 2 1 – 3 Change in cash and cash equivalents (215 ) (17,466 ) 13,982 215 (3,484 ) Cash and cash equivalents at beginning of year 1 272 56,120 2,588 (272 ) 58,708 Cash and cash equivalents at end of year 57 38,654 16,570 (57 ) 55,224 For the year ended 31 December 2017 Company Lloyds Bank Subsidiaries £m Consolidation adjustments Group Net cash (used in) provided by operating activities 8,221 (3,430 ) (5,959 ) (2,027 ) (3,195 ) Cash flows from investing activities Dividends received from subsidiary undertakings 2,650 4,378 – (7,028 ) – Distributions on other equity instruments received 292 101 – (393 ) – Return of capital contributions 77 – – (77 ) – Available-for-sale financial assets: Purchases – (7,550 ) (482 ) 170 (7,862 ) Proceeds from sale and maturity – 16,480 2,195 – 18,675 Purchase of fixed assets – (1,155 ) (2,500 ) – (3,655 ) Proceeds from sale of fixed assets – 85 1,359 – 1,444 Additional capital lending to subsidiaries (8,476 ) (34 ) – 8,510 – Capital repayments by subsidiaries 475 – – (475 ) – Interest received on lending to Lloyds Bank 244 – – (244 ) – Acquisition of businesses, net of cash acquired (320 ) (2,026 ) (622 ) 1,045 (1,923 ) Disposal of businesses, net of cash disposed – 592 129 (592 ) 129 Net cash flows from investing activities (5,058 ) 10,871 79 916 6,808 Cash flows from financing activities Dividends paid to equity shareholders (2,284 ) (2,650 ) (4,378 ) 7,028 (2,284 ) Distributions on other equity instruments (415 ) (273 ) (120 ) 393 (415 ) Dividends paid to non-controlling interests – – (51 ) – (51 ) Interest paid on subordinated liabilities (248 ) (668 ) (700 ) 341 (1,275 ) Proceeds from issue of subsordinated liabilities – – – – – Proceeds from issue of ordinary shares 14 – – – 14 Repayment of subordinated liabilities – (675 ) (1,132 ) 799 (1,008 ) Capital contributions received – – – – – Changes in non-controlling interests – – – – – Return of capital contribution – (77 ) – 77 – Capital borrowing from the Company – 8,476 – (8,476 ) – Capital repayments to parent company – (475 ) – 475 – Interest paid on borrowing from the Company – (244 ) – 244 – Net cash used in financing activities (2,933 ) 3,414 (6,381 ) 881 (5,019 ) Effects of exchange rate changes on cash and cash equivalents – (1 ) 1 – – Change in cash and cash equivalents 230 10,854 (12,260 ) (230 ) (1,406 ) Cash and cash equivalents at beginning of year 42 45,266 17,122 (42 ) 62,388 Cash and cash equivalents at end of year 272 56,120 4,862 (272 ) 60,982 For the year ended 31 December 2016 Company £m Lloyds Bank Subsidiaries Consolidation Group Net cash provided by (used in) operating activities (7,550 ) 1,073 11,131 (2,580 ) 2,074 Cash flows from investing activities Dividends received from subsidiary undertakings 3,759 3,984 – (7,743 ) – Distributions on other equity instruments received 119 – – (119 ) – Return of capital contributions 441 – – (441 ) – Available-for-sale financial assets and held-to-maturity investments: Purchases – (4,664 ) (322 ) 56 (4,930 ) Proceeds from sale and maturity – 6,429 2,350 (2,444 ) 6,335 Purchase of fixed assets – (1,122 ) (2,638 ) – (3,760 ) Proceeds from sale of fixed assets – 19 1,665 – 1,684 Purchase of other equity instruments issued by subsidiaries – – – – – Capital lending to Lloyds Bank – – – – – Capital repayments by Lloyds Bank – – – – – Additional capital lending to subsidiaries (4,978 ) – – 4,978 – Capital repayments by subsidiaries 13,166 – – (13,166 ) – Interest received on lending to Lloyds Bank 496 – – (496 ) – Additional capital injections to subsidiaries (3,522 ) (309 ) – 3,831 – Acquisition of businesses, net of cash acquired – – (20 ) – (20 ) Disposal of businesses, net of cash disposed – 231 5 (231 ) 5 Net cash flows from investing activities 9,481 4,568 1,040 (15,775 ) (686 ) Cash flows from financing activities Dividends paid to ordinary shareholders (2,014 ) (3,040 ) (4,602 ) 7,642 (2,014 ) Distributions on other equity instruments (412 ) (119 ) (101 ) 220 (412 ) Dividends paid to non-controlling interests – – (29 ) – (29 ) Interest paid on subordinated liabilities (229 ) (1,516 ) (893 ) 951 (1,687 ) Proceeds from issue of subordinated liabilities 1,061 2,753 – (2,753 ) 1,061 Repayment of subordinated liabilities (319 ) (13,200 ) (4,952 ) 10,586 (7,885 ) Proceeds from issue of other equity instruments – 3,217 305 (3,522 ) – Capital contribution received – – 309 (309 ) – Return of capital contributions – (441 ) – 441 – Capital borrowing from the Company – – – – – Capital repayments to the Company – (3,387 ) (1,198 ) 4,585 – Interest paid on borrowing from the Company – (496 ) – 496 – Change in stake of non-controlling interests – – (8 ) – (8 ) Net cash used in financing activities (1,913 ) (16,229 ) (11,169 ) 18,337 (10,974 ) Effects of exchange rate changes on cash and cash equivalents – 2 19 – 21 Change in cash and cash equivalents 18 (10,586 ) 1,021 (18 ) (9,565 ) Cash and cash equivalents at beginning of year 24 55,852 16,101 (24 ) 71,953 Cash and cash equivalents at end of year 42 45,266 17,122 (42 ) 62,388 1 Adjusted for IFRS 9 |
BASIS OF PREPARATION (Details)
BASIS OF PREPARATION (Details) £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
Reclassified items [member] | |
BASIS OF PREPARATION (Details) [Line Items] | |
Reclassification into financial assets at fair value through profit or loss | £ 2,274 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Bottom of range [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Proportion of voting rights held by non-controlling interests | 20.00% |
Bottom of range [member] | Brand names [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 10 |
Top of range [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Proportion of voting rights held by non-controlling interests | 50.00% |
Top of range [member] | Computer software [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 7 years |
Top of range [member] | Brand names [member] | |
ACCOUNTING POLICIES (Details) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 15 years |
CRITICAL ACCOUNTING JUDGEMENT_3
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Allowance account for credit losses of financial assets | £ 3,362 | £ 3,533 |
Information about entity's definitions of default | The probability of default (PD) of an exposure, both over a 12 monthperiod and over its lifetime, is a key input to the measurement of the ECL allowance. Default has occurred when there is evidencethat the customer is experiencing significant financial difficulty which is likely to affect the ability to repay amounts due.The definition of default adopted by the Group is described in note 2(H) Impairment of financial assets. The Group has rebuttedthe presumption in IFRS 9 that default occurs no later than when a payment is 90 days past due for UK mortgages. As a result, approximately£0.6 billion of UK mortgages were classified as Stage 2 rather than Stage 3 at 31 December 2018; the impact on the Group’sECL allowance was not material. | |
Loans and advances to customers | £ 484,858 | 461,016 |
Information on how entity determined whether credit risk of financial instruments has increased significantly since initial recognition | Performing assets are classified as either Stage 1 or Stage 2. AnECL allowance equivalent to 12 months expected losses is established against assets in Stage 1; assets classified as Stage 2 carryan ECL allowance equivalent to lifetime expected losses. Assets are transferred from Stage 1 to Stage 2 when there has been a significantincrease in credit risk (SICR) since initial recognition.The Group uses a quantitative test together with qualitative indicatorsto determine whether there has been a SICR for an asset. For retail, a deterioration in the Retail Master Scale of four gradesfor credit cards, personal loans or overdrafts, three grades for personal mortgages, or two grades in the Corporate MasterScale for UK motor finance accounts is treated as a SICR. For Commercial a doubling of PD with a minimum increase in PD of 1 percent and a resulting change in the underlying grade is treated as a SICR. All financial assets are assumed to have suffered a SICRif they are more than 30 days past due | |
Assets | £ 797,598 | 811,182 |
Liabilities Arising From Insurance Contracts and Participating Investment Contracts | 98,874 | 103,413 |
Liabilities | 747,399 | 763,230 |
Deferred tax assets | 2,453 | 2,609 |
Other provisions | 3,547 | 5,789 |
Financial assets, at fair value | 206,939 | 230,810 |
Financial liabilities, at fair value | 51,920 | 77,001 |
Previously stated [member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Loans and advances to customers | 472,498 | |
Assets | 812,109 | |
Liabilities Arising From Insurance Contracts and Participating Investment Contracts | 103,413 | |
Liabilities | 762,966 | |
Deferred tax assets | 2,284 | |
Other provisions | 5,546 | |
Defined benefit pension schemes [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Assets | 1,267 | 723 |
Assets (liabilities) | 1,146 | 509 |
Liabilities | 121 | 214 |
Trading Losses [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Deferred tax assets | 3,778 | 4,034 |
Not Recognized | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Deferred tax assets | 585 | 683 |
Insurance Contracts and Participating Investment Contracts [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Liabilities Arising From Insurance Contracts and Participating Investment Contracts | 98,874 | 103,413 |
In-Force [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Assets | 4,491 | 4,533 |
Acquired In-Force [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Assets | 271 | 306 |
Historical Regulatory Breaches [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Other provisions | 2,385 | 4,070 |
Mis-selling of Payment Protection Insurance [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Other provisions | 1,524 | 2,778 |
Stage 2 [member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Loans and advances to customers | 600 | |
Drawn balance [member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) [Line Items] | ||
Impaired Financing Receivable, Related Allowance | £ 3,169 | £ 3,260 |
CRITICAL ACCOUNTING JUDGEMENT_4
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions | Dec. 31, 2018 | Dec. 31, 2017 |
Base Case [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 1.25% | 1.18% |
Unemployment rate | 4.50% | 5.00% |
House price growth | 2.50% | 2.70% |
Commercial real estate price growth | 0.40% | 0.00% |
Upside [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 2.34% | 2.44% |
Unemployment rate | 3.90% | 4.00% |
House price growth | 6.10% | 7.00% |
Commercial real estate price growth | 5.30% | 3.00% |
Downside [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 1.30% | 0.84% |
Unemployment rate | 5.30% | 6.10% |
House price growth | (4.80%) | (2.40%) |
Commercial real estate price growth | (4.70%) | (2.50%) |
Severe Downside [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 0.71% | 0.01% |
Unemployment rate | 6.90% | 7.10% |
House price growth | (7.50%) | (8.20%) |
Commercial real estate price growth | (6.40%) | (5.40%) |
Start To Peak [Member] | Base Case [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 1.75% | |
Unemployment rate | 4.80% | |
House price growth | 13.70% | |
Commercial real estate price growth | 0.10% | |
Start To Peak [Member] | Upside [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 4.00% | |
Unemployment rate | 4.30% | |
House price growth | 34.90% | |
Commercial real estate price growth | 26.90% | |
Start To Peak [Member] | Downside [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 1.75% | |
Unemployment rate | 6.30% | |
House price growth | 0.60% | |
Commercial real estate price growth | (0.50%) | |
Start To Peak [Member] | Severe Downside [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 1.25% | |
Unemployment rate | 8.60% | |
House price growth | (1.60%) | |
Commercial real estate price growth | (0.50%) | |
Start To Trough [Member] | Base Case [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 0.75% | |
Unemployment rate | 4.10% | |
House price growth | 0.40% | |
Commercial real estate price growth | (0.10%) | |
Start To Trough [Member] | Upside [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 0.75% | |
Unemployment rate | 3.50% | |
House price growth | 2.30% | |
Commercial real estate price growth | 0.00% | |
Start To Trough [Member] | Downside [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 0.75% | |
Unemployment rate | 4.30% | |
House price growth | (26.50%) | |
Commercial real estate price growth | (23.80%) | |
Start To Trough [Member] | Severe Downside [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Key Economic Assumptions [Line Items] | ||
Interest rate | 0.25% | |
Unemployment rate | 4.20% | |
House price growth | (33.50%) | |
Commercial real estate price growth | (33.80%) |
CRITICAL ACCOUNTING JUDGEMENT_5
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Base Case [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | £ 3,100 | £ 3,182 |
Probability Weighted [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 3,362 | 3,533 |
Difference [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 262 | £ 351 |
UK Mortgages [Member] | Base Case [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 253 | |
UK Mortgages [Member] | Probability Weighted [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 460 | |
UK Mortgages [Member] | Difference [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 207 | |
Other Retail [Member] | Base Case [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 1,294 | |
Other Retail [Member] | Probability Weighted [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 1,308 | |
Other Retail [Member] | Difference [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 14 | |
Commercial Banking [Member] | Base Case [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 1,472 | |
Commercial Banking [Member] | Probability Weighted [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 1,513 | |
Commercial Banking [Member] | Difference [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 41 | |
Other [Member] | Base Case [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | 81 | |
Other [Member] | Probability Weighted [Member] | ||
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Multiple Economic Scenarios [Line Items] | ||
Impact of economic scenario | £ 81 |
CRITICAL ACCOUNTING JUDGEMENT_6
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Expected Credit Loss £ in Millions | Dec. 31, 2018GBP (£) |
Upside [Member] | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Expected Credit Loss [Line Items] | |
ECL allowance | £ 2,775 |
Downside [Member] | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Expected Credit Loss [Line Items] | |
ECL allowance | £ 3,573 |
CRITICAL ACCOUNTING JUDGEMENT_7
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Expected Credit Loss Relating to House Price Index £ in Millions | Dec. 31, 2018GBP (£) |
HPI 10pp Increase [Member] | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Expected Credit Loss Relating to House Price Index [Line Items] | |
ECL impact, £m | £ (114) |
HPI 10pp Decrease [Member] | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Expected Credit Loss Relating to House Price Index [Line Items] | |
ECL impact, £m | £ 154 |
CRITICAL ACCOUNTING JUDGEMENT_8
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Expected Credit Loss Relating to Unemployment £ in Millions | Dec. 31, 2018GBP (£) |
Unemployment Increase 1pp [Member] | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Expected Credit Loss Relating to Unemployment [Line Items] | |
ECL impact, £m | £ 172 |
Unemployment Decrease 1pp [Member] | |
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - Schedule of Expected Credit Loss Relating to Unemployment [Line Items] | |
ECL impact, £m | £ (155) |
SEGMENTAL ANALYSIS (Details)
SEGMENTAL ANALYSIS (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEGMENTAL ANALYSIS (Details) [Line Items] | |||
Description of types of products and services from which each reportable segment derives its revenues | The Group’s activities are organised into three financial reportingsegments: Retail; Commercial Banking; and Insurance and Wealth. | ||
Profit (loss) on disposal of investments and changes in value of investments | £ 60 | £ 32 | £ 58 |
Expense due to unwinding of discount on provisions | (44) | (23) | (32) |
Volatility And Other Items [Member] | |||
SEGMENTAL ANALYSIS (Details) [Line Items] | |||
Gains (losses) on available-for-sale financial assets | 145 | 30 | |
Loss on Volatile Items | 95 | 263 | |
Amortisation, intangible assets other than goodwill | 108 | 91 | |
Expense of restructuring activities | 879 | 621 | |
Expense due to unwinding of discount on provisions | £ 319 | (270) | |
Transfers of cumulative gain (loss) within equity when changes in liability's credit risk are presented in other comprehensive income | £ (14) | ||
Write-Off of the ECN [Member] | |||
SEGMENTAL ANALYSIS (Details) [Line Items] | |||
Gains (losses) on available-for-sale financial assets | 217 | ||
Loss on Volatile Items | 99 | ||
Amortisation, intangible assets other than goodwill | 340 | ||
Expense of restructuring activities | 622 | ||
Expense due to unwinding of discount on provisions | (231) | ||
Transfers of cumulative gain (loss) within equity when changes in liability's credit risk are presented in other comprehensive income | (123) | ||
Gains (losses) on change in fair value of derivatives | £ (790) |
SEGMENTAL ANALYSIS (Details) -
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments - Underlying Basis [Member] - GBP (£) £ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Net interest income | £ 12,714 | £ 12,320 | [1] | £ 11,435 | [2] | ||
Other income, net of insurance claims | 6,010 | 6,205 | 6,004 | ||||
Total underlying income, net of insurance claims | 18,724 | 18,525 | 17,439 | ||||
Operating lease depreciation | (956) | [3] | (1,053) | [4] | (895) | [5] | |
Net income | 17,768 | 17,472 | 16,544 | ||||
Operating costs | (8,165) | (8,184) | (8,093) | ||||
Remediation | (600) | (865) | (1,024) | ||||
Total costs | (8,765) | (9,049) | (9,117) | ||||
Impairment | (937) | (795) | (645) | ||||
Underlying profit (loss) | 8,066 | 7,628 | 6,782 | ||||
External income | 18,724 | 18,525 | 17,439 | ||||
Segment underlying income, net of insurance claims | 18,724 | 18,525 | 17,439 | ||||
Segment external assets | 797,598 | 812,109 | 817,793 | ||||
Segment customer deposits | 418,066 | 418,124 | 415,460 | ||||
Segment external liabilities | 747,399 | 762,966 | 769,328 | ||||
Fees and commissions receivable | 2,848 | 2,965 | 3,045 | ||||
Fees and commissions payable | (1,386) | (1,382) | (1,356) | ||||
Net fee and commission income | 1,462 | 1,583 | 1,689 | ||||
Operating lease rental income | 1,343 | 1,344 | 1,225 | ||||
Rental income from investment properties | 197 | 213 | 229 | ||||
Gains less losses on disposal of financial assets at fair value through other comprehensive income | 275 | 446 | 91 | ||||
Lease termination income | 7 | 74 | 1 | ||||
Net trading income, excluding insurance | 1,064 | 418 | 1,413 | ||||
Insurance and other, net of insurance claims | 1,662 | 2,127 | 1,356 | ||||
Other external income, net of insurance claims | 4,548 | 4,622 | 4,315 | ||||
Segment other income, net of insurance claims | 6,010 | 6,205 | 6,004 | ||||
income statement above: | |||||||
Depreciation and amortisation | 2,405 | 2,370 | 2,380 | ||||
Increase/Decrease in value of in-force business | (55) | (165) | 472 | ||||
Defined benefit scheme charges | 405 | 359 | 287 | ||||
Other segment items: | |||||||
Additions to fixed assets | 3,514 | 3,655 | 3,760 | ||||
Investments in joint ventures and associates at end of year | 91 | 65 | 59 | ||||
Current Accounts [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 650 | 712 | 752 | ||||
Credit and Debit Card [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 993 | 953 | 875 | ||||
Corporate Banking and Treasury Fees | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 305 | 321 | 303 | ||||
Unit Trust and Insurance Broking [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 221 | 224 | 244 | ||||
Private Banking and Asset Management [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 97 | 98 | 99 | ||||
Factoring of receivables [member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 83 | 91 | 112 | ||||
Other Fees and Commissions [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 499 | 566 | 660 | ||||
5200 to 5999 Retail Trade [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Net interest income | 9,066 | 8,706 | [1] | 8,074 | [2] | ||
Other income, net of insurance claims | 2,171 | 2,221 | 2,165 | ||||
Total underlying income, net of insurance claims | 11,237 | 10,927 | 10,239 | ||||
Operating lease depreciation | (921) | [3] | (947) | [4] | (777) | [5] | |
Net income | 10,316 | 9,980 | 9,462 | ||||
Operating costs | (4,915) | (4,866) | (4,761) | ||||
Remediation | (267) | (633) | (750) | ||||
Total costs | (5,182) | (5,499) | (5,511) | ||||
Impairment | (862) | (711) | (648) | ||||
Underlying profit (loss) | 4,272 | 3,770 | 3,303 | ||||
External income | 13,097 | 12,682 | 12,243 | ||||
Inter-segment income | (1,860) | (1,755) | (2,004) | ||||
Segment underlying income, net of insurance claims | 11,237 | 10,927 | 10,239 | ||||
Segment external assets | 349,719 | 350,219 | 340,253 | ||||
Segment customer deposits | 252,808 | 253,127 | 256,453 | ||||
Segment external liabilities | 260,378 | 258,612 | 265,128 | ||||
Fees and commissions receivable | 1,556 | 1,625 | 1,593 | ||||
Fees and commissions payable | (855) | (873) | (783) | ||||
Net fee and commission income | 701 | 752 | 810 | ||||
Operating lease rental income | 1,305 | 1,281 | 1,142 | ||||
Net trading income, excluding insurance | 71 | 26 | 46 | ||||
Insurance and other, net of insurance claims | 247 | 6 | (2) | ||||
Other external income, net of insurance claims | 1,623 | 1,313 | 1,186 | ||||
Inter-segment other income | (153) | 156 | 169 | ||||
Segment other income, net of insurance claims | 2,171 | 2,221 | 2,165 | ||||
income statement above: | |||||||
Depreciation and amortisation | 1,573 | 1,547 | 1,345 | ||||
Defined benefit scheme charges | 121 | 149 | 141 | ||||
Other segment items: | |||||||
Additions to fixed assets | 2,092 | 2,431 | 2,362 | ||||
Investments in joint ventures and associates at end of year | 4 | 12 | 9 | ||||
5200 to 5999 Retail Trade [Member] | Current Accounts [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 503 | 572 | 614 | ||||
5200 to 5999 Retail Trade [Member] | Credit and Debit Card [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 988 | 948 | 854 | ||||
5200 to 5999 Retail Trade [Member] | Unit Trust and Insurance Broking [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 13 | 10 | |||||
5200 to 5999 Retail Trade [Member] | Other Fees and Commissions [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 52 | 95 | 125 | ||||
522110 Commercial Banking [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Net interest income | 3,004 | 3,030 | [1] | 2,863 | [2] | ||
Other income, net of insurance claims | 1,653 | 1,798 | 1,875 | ||||
Total underlying income, net of insurance claims | 4,657 | 4,828 | 4,738 | ||||
Operating lease depreciation | (35) | [3] | (105) | [4] | (118) | [5] | |
Net income | 4,622 | 4,723 | 4,620 | ||||
Operating costs | (2,167) | (2,230) | (2,215) | ||||
Remediation | (203) | (173) | (148) | ||||
Total costs | (2,370) | (2,403) | (2,363) | ||||
Impairment | (92) | (89) | (11) | ||||
Underlying profit (loss) | 2,160 | 2,231 | 2,246 | ||||
External income | 4,876 | 3,176 | 3,656 | ||||
Inter-segment income | (219) | 1,652 | 1,082 | ||||
Segment underlying income, net of insurance claims | 4,657 | 4,828 | 4,738 | ||||
Segment external assets | 164,897 | 177,808 | 193,054 | ||||
Segment customer deposits | 148,633 | 148,313 | 142,439 | ||||
Segment external liabilities | 191,071 | 224,577 | 231,450 | ||||
Fees and commissions receivable | 792 | 829 | 792 | ||||
Fees and commissions payable | (57) | (50) | (54) | ||||
Net fee and commission income | 735 | 779 | 738 | ||||
Operating lease rental income | 38 | 63 | 83 | ||||
Rental income from investment properties | 1 | 2 | |||||
Gains less losses on disposal of financial assets at fair value through other comprehensive income | 29 | 17 | |||||
Lease termination income | 7 | 74 | 1 | ||||
Net trading income, excluding insurance | 766 | 490 | 1,937 | ||||
Insurance and other, net of insurance claims | 358 | 27 | (627) | ||||
Other external income, net of insurance claims | 1,169 | 684 | 1,413 | ||||
Inter-segment other income | (251) | 335 | (276) | ||||
Segment other income, net of insurance claims | 1,653 | 1,798 | 1,875 | ||||
income statement above: | |||||||
Depreciation and amortisation | 278 | 322 | 326 | ||||
Defined benefit scheme charges | 48 | 52 | 51 | ||||
Other segment items: | |||||||
Additions to fixed assets | 208 | 130 | 145 | ||||
Investments in joint ventures and associates at end of year | 6 | 6 | 28 | ||||
522110 Commercial Banking [Member] | Current Accounts [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 142 | 135 | 131 | ||||
522110 Commercial Banking [Member] | Credit and Debit Card [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 4 | 4 | 4 | ||||
522110 Commercial Banking [Member] | Corporate Banking and Treasury Fees | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 305 | 321 | 303 | ||||
522110 Commercial Banking [Member] | Private Banking and Asset Management [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 5 | 5 | 5 | ||||
522110 Commercial Banking [Member] | Factoring of receivables [member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 83 | 91 | 112 | ||||
522110 Commercial Banking [Member] | Other Fees and Commissions [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 253 | 273 | 237 | ||||
Insurance and wealth [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Net interest income | 123 | 133 | [1] | 80 | [2] | ||
Other income, net of insurance claims | 1,865 | 1,846 | 1,878 | ||||
Total underlying income, net of insurance claims | 1,988 | 1,979 | 1,958 | ||||
Net income | 1,988 | 1,979 | 1,958 | ||||
Operating costs | (1,021) | (1,040) | (1,046) | ||||
Remediation | (39) | (40) | (103) | ||||
Total costs | (1,060) | (1,080) | (1,149) | ||||
Impairment | (1) | ||||||
Underlying profit (loss) | 927 | 899 | 809 | ||||
External income | 1,895 | 1,883 | 1,373 | ||||
Inter-segment income | 93 | 96 | 585 | ||||
Segment underlying income, net of insurance claims | 1,988 | 1,979 | 1,958 | ||||
Segment external assets | 140,487 | 151,986 | 154,782 | ||||
Segment customer deposits | 14,063 | 13,770 | 13,798 | ||||
Segment external liabilities | 147,673 | 157,824 | 160,815 | ||||
Fees and commissions receivable | 469 | 497 | 638 | ||||
Fees and commissions payable | (418) | (380) | (424) | ||||
Net fee and commission income | 51 | 117 | 214 | ||||
Rental income from investment properties | 197 | 212 | 227 | ||||
Gains less losses on disposal of financial assets at fair value through other comprehensive income | (3) | (2) | |||||
Insurance and other, net of insurance claims | 2,146 | 2,223 | 1,613 | ||||
Other external income, net of insurance claims | 2,343 | 2,432 | 1,838 | ||||
Inter-segment other income | (529) | (703) | (174) | ||||
Segment other income, net of insurance claims | 1,865 | 1,846 | 1,878 | ||||
income statement above: | |||||||
Depreciation and amortisation | 154 | 197 | 169 | ||||
Increase/Decrease in value of in-force business | (55) | (165) | 472 | ||||
Defined benefit scheme charges | 20 | 25 | 31 | ||||
Other segment items: | |||||||
Additions to fixed assets | 223 | 274 | 481 | ||||
Insurance and wealth [Member] | Current Accounts [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 5 | 5 | 7 | ||||
Insurance and wealth [Member] | Credit and Debit Card [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 1 | 1 | 1 | ||||
Insurance and wealth [Member] | Unit Trust and Insurance Broking [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 208 | 214 | 244 | ||||
Insurance and wealth [Member] | Private Banking and Asset Management [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 92 | 93 | 94 | ||||
Insurance and wealth [Member] | Other Fees and Commissions [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 163 | 184 | 292 | ||||
Other Income [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Net interest income | 521 | 451 | [1] | 418 | [2] | ||
Other income, net of insurance claims | 321 | 340 | 86 | ||||
Total underlying income, net of insurance claims | 842 | 791 | 504 | ||||
Operating lease depreciation | [4] | (1) | |||||
Net income | 842 | 790 | 504 | ||||
Operating costs | (62) | (48) | (71) | ||||
Remediation | (91) | (19) | (23) | ||||
Total costs | (153) | (67) | (94) | ||||
Impairment | 18 | 5 | 14 | ||||
Underlying profit (loss) | 707 | 728 | 424 | ||||
External income | (1,144) | 784 | 167 | ||||
Inter-segment income | 1,986 | 7 | 337 | ||||
Segment underlying income, net of insurance claims | 842 | 791 | 504 | ||||
Segment external assets | 142,495 | 132,096 | 129,704 | ||||
Segment customer deposits | 2,562 | 2,914 | 2,770 | ||||
Segment external liabilities | 148,277 | 121,953 | 111,935 | ||||
Fees and commissions receivable | 31 | 14 | 22 | ||||
Fees and commissions payable | (56) | (79) | (95) | ||||
Net fee and commission income | (25) | (65) | (73) | ||||
Gains less losses on disposal of financial assets at fair value through other comprehensive income | 275 | 420 | 76 | ||||
Net trading income, excluding insurance | 227 | (98) | (570) | ||||
Insurance and other, net of insurance claims | (1,089) | (129) | 372 | ||||
Other external income, net of insurance claims | (587) | 193 | (122) | ||||
Inter-segment other income | 933 | 212 | 281 | ||||
Segment other income, net of insurance claims | 321 | 340 | 86 | ||||
income statement above: | |||||||
Depreciation and amortisation | 400 | 304 | 540 | ||||
Defined benefit scheme charges | 216 | 133 | 64 | ||||
Other segment items: | |||||||
Additions to fixed assets | 991 | 820 | 772 | ||||
Investments in joint ventures and associates at end of year | 81 | 47 | 22 | ||||
Other Income [Member] | Credit and Debit Card [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | 16 | ||||||
Other Income [Member] | Other Fees and Commissions [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Operating Segments [Line Items] | |||||||
Underlying other income, net of insurance claims | £ 31 | £ 14 | £ 6 | ||||
[1] | Restated see page F-22. | ||||||
[2] | Restated - see page F-22. | ||||||
[3] | Net of profits on disposal of operating lease assets of 60 million. | ||||||
[4] | Net of profits on disposal of operating lease assets of 32 million. | ||||||
[5] | Net of profits on disposal of operating lease assets of 58 million. |
SEGMENTAL ANALYSIS (Details) _2
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results - GBP (£) £ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Net interest income | £ 13,396 | £ 10,912 | £ 9,274 | ||||
Other income, net of insurance claims | 5,230 | 7,747 | 7,993 | ||||
Total income, net of insurance claims | 18,626 | 18,659 | 17,267 | ||||
Operating lease depreciation | [1] | 0 | 0 | 0 | |||
Net income | 18,626 | 18,659 | 17,267 | ||||
Operating expenses | (11,729) | (12,346) | (12,627) | ||||
Impairment | (937) | (688) | (752) | ||||
Profit | 5,960 | 5,625 | 3,888 | ||||
Volatility And Other Items [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Net interest income | 152 | [2] | 228 | [3] | 263 | [4] | |
Other income, net of insurance claims | 107 | [2] | (186) | [3] | 121 | [4] | |
Total income, net of insurance claims | 259 | [2] | 42 | [3] | 384 | [4] | |
Operating lease depreciation | [1] | (956) | [2] | (1,053) | [3] | (895) | [4] |
Net income | (697) | [2] | (1,011) | [3] | (511) | [4] | |
Operating expenses | 2,053 | [2] | 1,821 | [3] | 1,948 | [4] | |
Impairment | [2] | (107) | [3] | 107 | [4] | ||
Profit | 1,356 | [2] | 703 | [3] | 1,544 | [4] | |
Insurance Gross Up [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Net interest income | [5] | (834) | 1,180 | 1,898 | |||
Other income, net of insurance claims | [5] | 673 | (1,356) | (2,110) | |||
Total income, net of insurance claims | [5] | (161) | (176) | (212) | |||
Operating lease depreciation | [1],[5] | ||||||
Net income | [5] | (161) | (176) | (212) | |||
Operating expenses | [5] | 161 | 176 | 212 | |||
Impairment | [5] | ||||||
Profit | [5] | ||||||
Underlying Basis [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Net interest income | 12,714 | 12,320 | 11,435 | ||||
Other income, net of insurance claims | 6,010 | 6,205 | 6,004 | ||||
Total income, net of insurance claims | 18,724 | 18,525 | 17,439 | ||||
Operating lease depreciation | [1] | (956) | (1,053) | (895) | |||
Net income | 17,768 | 17,472 | 16,544 | ||||
Operating expenses | (8,765) | (9,049) | (9,117) | ||||
Impairment | (937) | (795) | (645) | ||||
Profit | 8,066 | 7,628 | 6,782 | ||||
Payment Protection Insurance [Member] | |||||||
SEGMENTAL ANALYSIS (Details) - Schedule of Reconciliation of Underlying Basis to Statutory Results [Line Items] | |||||||
Operating lease depreciation | [1] | ||||||
Operating expenses | 750 | 1,300 | 1,350 | ||||
Profit | £ 750 | £ 1,300 | £ 1,350 | ||||
[1] | Net of profits on disposal of operating lease assets of 60 million (2017: 32 million; 2016: 58 million). | ||||||
[2] | In the year ended 31 December 2018 this comprises the effects of asset sales (loss of 145 million); volatility and other items (gains of 95 million); the amortisation of purchased intangibles (108 million); restructuring (879 million, comprising severance related costs, the rationalisation of the non-branch property portfolio, the work on implementing the ring-fencing requirements and the integration of MBNA and Zurich's UK workplace pensions and savings business); and the fair value unwind and other items (losses of 319 million). | ||||||
[3] | Comprises the effects of asset sales (gain of 30 million); volatile items (gain of 263 million); liability management (loss of 14 million); the amortisation of purchased intangibles (91 million); restructuring costs (621 million, principally comprising costs relating to the Simplification programme; the rationalisation of the non-branch property portfolio, the work on implementing the ring-fencing requirements and the integration of MBNA); and the fair value unwind and other items (loss of 270 million). | ||||||
[4] | Comprises the write-off of the Enhanced Capital Note embedded derivative and premium paid on redemption of the remaining notes (loss of 790 million); the effects of asset sales (gain of 217 million); volatile items (gain of 99 million); liability management (gain of 123 million); the amortisation of purchased intangibles (340 million); restructuring costs (622 million, principally comprising the severance related costs related to phase II of the Simplification programme); and the fair value unwind and other items (loss of 231 million). | ||||||
[5] | The Group's insurance businesses' income statements include income and expenditure which are attributable to the policyholders of the Group's long-term assurance funds. These items have no impact in total upon the profit attributable to equity shareholders and, in order to provide a clearer representation of the underlying trends within the business, these items are shown net within the underlying results. |
NET INTEREST INCOME (Details)
NET INTEREST INCOME (Details) - GBP (£) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
NET INTEREST INCOME (Details) [Line Items] | ||||
Interest income | £ 16,349,000,000 | £ 16,006,000,000 | £ 16,620,000,000 | |
Borrowings, interest rate | 2.68% | 2.43% | 2.70% | |
Interest expense | [1] | £ 2,953,000,000 | £ 5,094,000,000 | £ 7,346,000,000 |
Interest income on impaired financial assets accrued | 227,000,000 | 179,000,000 | 205,000,000 | |
Reserve of cash flow hedges [member] | ||||
NET INTEREST INCOME (Details) [Line Items] | ||||
Interest income | 701,000,000 | 651,000,000 | 557,000,000 | |
Negative interest rates [Member] | ||||
NET INTEREST INCOME (Details) [Line Items] | ||||
Interest income | 31,000,000 | 12,000,000 | 0 | |
Interest expense | £ 10,000,000 | £ 50,000,000 | £ 51,000,000 | |
[1] | Includes 10 million (2017: 50 million; 2016: 51 million) of interest expense on assets with negative interest rates. |
NET INTEREST INCOME (Details) -
NET INTEREST INCOME (Details) - Schedule of Net Interest Income - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
NET INTEREST INCOME (Details) - Schedule of Net Interest Income [Line Items] | ||||
Total interest and similar income | £ 16,349 | £ 16,006 | £ 16,620 | |
Subordinated liabilities | £ (1,388) | £ (1,436) | £ (1,864) | |
Total interest and similar expense | [1] | 0.60% | 1.06% | 1.44% |
Total interest and similar expense | [1] | £ (2,953) | £ (5,094) | £ (7,346) |
Net interest income | £ 13,396 | £ 10,912 | £ 9,274 | |
Interest and similar income [Member] | ||||
NET INTEREST INCOME (Details) - Schedule of Net Interest Income [Line Items] | ||||
Loans and advances to customers | 3.17% | 3.16% | 3.32% | |
Loans and advances to customers | £ 15,078 | £ 14,712 | £ 15,190 | |
Loans and advances to banks | 0.84% | 0.40% | 0.46% | |
Loans and advances to banks | £ 565 | £ 271 | £ 381 | |
Debt securities held at amortised cost | 1.60% | 1.29% | 1.47% | |
Debt securities held at amortised cost | £ 66 | £ 43 | £ 56 | |
Held-to-maturity investments | 1.44% | |||
Held-to-maturity investments | £ 231 | |||
Interest receivable on financial assets held at amortised cost | 2.87% | 2.81% | 2.83% | |
Interest receivable on financial assets held at amortised cost | £ 15,709 | £ 15,026 | £ 15,858 | |
Financial assets at fair value through other comprehensive income | 1.98% | |||
Financial assets at fair value through other comprehensive income | £ 640 | |||
Available-for-sale financial assets | 1.96% | 1.88% | ||
Available-for-sale financial assets | £ 980 | £ 762 | ||
Total interest and similar income | [2] | 2.82% | 2.73% | 2.77% |
Total interest and similar income | [2] | £ 16,349 | £ 16,006 | £ 16,620 |
Interest and similar expense [Member] | ||||
NET INTEREST INCOME (Details) - Schedule of Net Interest Income [Line Items] | ||||
Deposits from banks, excluding liabilities under sale and repurchase transactions | 1.39% | 1.18% | 0.65% | |
Deposits from banks, excluding liabilities under sale and repurchase transactions | £ (117) | £ (80) | £ (68) | |
Customer deposits, excluding liabilities under sale and repurchase transactions | 0.53% | 0.49% | 0.69% | |
Customer deposits, excluding liabilities under sale and repurchase transactions | £ (1,813) | £ (1,722) | £ (2,520) | |
Debt securities in issue | [3] | 0.27% | 0.37% | 0.94% |
Debt securities in issue | [3] | £ (234) | £ (266) | £ (799) |
Subordinated liabilities | 7.63% | 7.93% | 8.35% | |
Subordinated liabilities | £ (1,388) | £ (1,481) | £ (1,864) | |
Liabilities under sale and repurchase agreements | 0.96% | 0.58% | 0.46% | |
Liabilities under sale and repurchase agreements | £ (245) | £ (110) | £ (38) | |
Interest payable on liabilities held at amortised cost | 0.79% | 0.79% | 1.07% | |
Interest payable on liabilities held at amortised cost | £ (3,797) | £ (3,659) | £ (5,289) | |
Amounts payable to unitholders in consolidated open-ended investment vehicles | (6.07%) | 9.15% | 10.85% | |
Amounts payable to unitholders in consolidated open-ended investment vehicles | £ 844 | £ (1,435) | £ (2,057) | |
[1] | Includes 10 million (2017: 50 million; 2016: 51 million) of interest expense on assets with negative interest rates. | |||
[2] | Includes 31 million (2017: 12 million; 2016: nil) of interest income on liabilities with negative interest rates. | |||
[3] | The impact of the Group's hedging arrangements is included on this line; excluding this impact the weighted average effective interest rate in respect of debt securities in issue would be 2.68 per cent (2017: 2.43 per cent; 2016: 2.70 per cent). |
NET FEE AND COMMISSION INCOME_2
NET FEE AND COMMISSION INCOME (Details) - Increase (decrease) due to application of IFRS 15 [member] - GBP (£) £ in Millions | Jan. 01, 2019 | Dec. 31, 2018 |
NET FEE AND COMMISSION INCOME (Details) [Line Items] | ||
Receivables from contracts with customers | £ 282 | |
Transaction price allocated to remaining performance obligations | £ 314 | |
Services provided after balance sheet date | ||
NET FEE AND COMMISSION INCOME (Details) [Line Items] | ||
Receivables from contracts with customers | £ 168 |
NET FEE AND COMMISSION INCOME_3
NET FEE AND COMMISSION INCOME (Details) - Schedule of Fee and Commission Income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fee and commission income: | |||
Fee and commission income | £ 2,848 | £ 2,965 | £ 3,045 |
Fee and commission expense | (1,386) | (1,382) | (1,356) |
Net fee and commission income | 1,462 | 1,583 | 1,689 |
Current Accounts [Member] | |||
Fee and commission income: | |||
Fee and commission income | 650 | 712 | 752 |
Credit and Debit Card Fees [Member] | |||
Fee and commission income: | |||
Fee and commission income | 993 | 953 | 875 |
Commercial banking and treasury fees [Member] | |||
Fee and commission income: | |||
Fee and commission income | 305 | 321 | 303 |
Unit Trust and Insurance Broking [Member] | |||
Fee and commission income: | |||
Fee and commission income | 221 | 224 | 244 |
Private Banking and Asset Management [Member] | |||
Fee and commission income: | |||
Fee and commission income | 97 | 98 | 99 |
Factoring [Member] | |||
Fee and commission income: | |||
Fee and commission income | 83 | 91 | 112 |
Other Fees and Commissions [Member] | |||
Fee and commission income: | |||
Fee and commission income | £ 499 | £ 566 | £ 660 |
NET TRADING INCOME (Details) -
NET TRADING INCOME (Details) - Schedule of Net Trading Income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Net Trading Income [Abstract] | |||
Foreign exchange translation gains/(losses) | £ 342 | £ (174) | £ 1,363 |
Gains on foreign exchange trading transactions | 580 | 517 | 542 |
Total foreign exchange | 922 | 343 | 1,905 |
Investment property gains (losses) (note 26) | 139 | 230 | (83) |
Securities and other gains (see below) | (4,937) | 11,244 | 16,723 |
Net trading income | £ (3,876) | £ 11,817 | £ 18,545 |
NET TRADING INCOME (Details) _2
NET TRADING INCOME (Details) - Schedule of Net Gains (Losses) Held For Trading - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income arising on assets and liabilities mandatorily held at fair value through profit or loss: | |||
Net gains (losses) on financial instruments held for trading | £ (8) | £ 404 | £ (428) |
Other financial instruments mandatorily held at fair value through profit or loss: | |||
Debt securities, loans and advances | (26) | 1,122 | 4,771 |
Equity shares | (4,747) | 9,862 | 12,534 |
(4,781) | 11,388 | 16,877 | |
Net (expense) income arising on assets and liabilities designated at fair value through profit or loss | (156) | (144) | (154) |
Securities and other gains | £ (4,937) | £ 11,244 | £ 16,723 |
INSURANCE PREMIUM INCOME (Detai
INSURANCE PREMIUM INCOME (Details) - Schedule of Insurance Premium Income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gross premiums: | |||
Net earned premiums | £ 9,189 | £ 7,930 | £ 8,068 |
Life insurance contracts [member] | |||
Gross premiums: | |||
Gross premiums | 8,790 | 7,355 | 7,298 |
Net earned premiums | 8,519 | 7,187 | 7,210 |
Non-life insurance contracts [member] | |||
Gross premiums: | |||
Net earned premiums | 670 | 743 | 858 |
Life and pensions [Member] | Life insurance contracts [member] | |||
Gross premiums: | |||
Gross premiums | 6,612 | 6,273 | 5,613 |
Annuities [member] | Life insurance contracts [member] | |||
Gross premiums: | |||
Gross premiums | 2,178 | 1,082 | 1,685 |
Ceded reinsurance premiums [Member] | |||
Gross premiums: | |||
Gross premiums | £ (271) | £ (168) | £ (88) |
OTHER OPERATING INCOME (Details
OTHER OPERATING INCOME (Details) - Schedule of Other Operating Income - Operating Income (Loss) [Member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER OPERATING INCOME (Details) - Schedule of Other Operating Income [Line Items] | |||
Operating lease rental income | £ 1,343 | £ 1,344 | £ 1,225 |
Rental income from investment properties (note 26) | 197 | 213 | 229 |
Gains less losses on disposal of financial assets at fair value through other comprehensive income (2017 and 2016: available-for-sale financial assets) (note 41) | 275 | 446 | 575 |
Movement in value of in-force business (note 24) | (55) | (165) | 472 |
Liability management | (14) | (598) | |
Share of results of joint ventures and associates | 9 | 6 | (1) |
Other | 151 | 165 | 133 |
Total other operating income | £ 1,920 | £ 1,995 | £ 2,035 |
INSURANCE CLAIMS (Details) - Sc
INSURANCE CLAIMS (Details) - Schedule of Insurance Claims - Insurance Claims [Member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Life insurance and participating investment contracts | |||
Claims and surrenders | £ (8,735) | £ (8,898) | £ (8,617) |
(3,542) | (15,129) | (22,098) | |
Reinsurers’ share | 404 | 35 | 106 |
(3,138) | (15,094) | (21,992) | |
Change in unallocated surplus | 8 | (147) | 14 |
Insurance claims | (3,465) | (15,578) | (22,344) |
Participating investment contracts [Member] | |||
Life insurance and participating investment contracts | |||
Change in insurance and participating investment contracts (note 31) | 4,565 | (9,067) | (14,160) |
Non-participating investment contracts [Member] | |||
Life insurance and participating investment contracts | |||
Change in non-participating investment contracts | 628 | 2,836 | 679 |
Deaths [Member] | |||
Life insurance and participating investment contracts | |||
Claims and surrenders | (721) | (675) | (635) |
Maturities [Member] | |||
Life insurance and participating investment contracts | |||
Claims and surrenders | (1,198) | (1,280) | (1,347) |
Surrenders [Member] | |||
Life insurance and participating investment contracts | |||
Claims and surrenders | (5,548) | (5,674) | (5,444) |
Annuities [member] | |||
Life insurance and participating investment contracts | |||
Claims and surrenders | (1,032) | (985) | (949) |
Other [Member] | |||
Life insurance and participating investment contracts | |||
Claims and surrenders | (236) | (284) | (242) |
Life insurance and participating investment contracts [member] | |||
Life insurance and participating investment contracts | |||
Insurance claims | (3,130) | (15,241) | (21,978) |
Non-life insurance, net of reinsurrance [Member] | |||
Life insurance and participating investment contracts | |||
Insurance claims | £ (335) | £ (337) | £ (366) |
OPERATING EXPENSES (Details)
OPERATING EXPENSES (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of expenses [text block] [Abstract] | |||
Regulatory provision charged to income | £ 61 | ||
Performance-based Cash Awards | £ 137 | £ 102 | £ 116 |
OPERATING EXPENSES (Details) -
OPERATING EXPENSES (Details) - Schedule of Operating Expenses - Operating Expense [Member] - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
OPERATING EXPENSES (Details) - Schedule of Operating Expenses [Line Items] | ||||
Salaries | £ 2,482 | £ 2,679 | £ 2,750 | |
Performance-based compensation | 509 | 473 | 475 | |
Social security costs | 343 | 361 | 363 | |
Pensions and other post-retirement benefit schemes (note 35) | 705 | 625 | 555 | |
Restructuring costs | 249 | 24 | 241 | |
Other staff costs | 474 | 448 | 433 | |
4,762 | 4,610 | 4,817 | ||
Rent and rates | 370 | 365 | 365 | |
Repairs and maintenance | 190 | 231 | 187 | |
Other | 169 | 134 | 120 | |
729 | 730 | 672 | ||
Communications and data processing | 1,121 | 882 | 848 | |
Advertising and promotion | 197 | 208 | 198 | |
Professional fees | 287 | 328 | 265 | |
UK bank levy | 225 | 231 | 200 | |
Other | 653 | 814 | 873 | |
2,483 | 2,463 | 2,384 | ||
Depreciation of property, plant and equipment (note 26) | 1,852 | 1,944 | 1,761 | |
Amortisation of acquired value of in-force non-participating investment contracts (note 24) | 40 | 34 | 37 | |
Amortisation of other intangible assets (note 25) | 513 | 392 | 582 | |
2,405 | 2,370 | 2,380 | ||
Goodwill impairment (note 23) | 8 | |||
Total operating expenses, excluding regulatory provisions | 10,379 | 10,181 | 10,253 | |
Total operating expenses | 11,729 | 12,346 | 12,627 | |
Regulatory provisions | 1,350 | 2,165 | 2,374 | |
Payment Protection Insurance [Member] | ||||
OPERATING EXPENSES (Details) - Schedule of Operating Expenses [Line Items] | ||||
Regulatory provisions | 750 | 1,300 | 1,350 | |
Other regulatory provisions [Member] | ||||
OPERATING EXPENSES (Details) - Schedule of Operating Expenses [Line Items] | ||||
Regulatory provisions | [1] | £ 600 | £ 865 | £ 1,024 |
[1] | In 2016, regulatory provisions of £61 million were charged against income. |
OPERATING EXPENSES (Details) _2
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Performance-based compensation expense comprises [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | £ 509 | £ 473 | £ 475 |
Performance-based compensation expense deferred until later years comprises [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | 189 | 162 | 164 |
Current year [Member] | Performance-based compensation expense comprises [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | 362 | 334 | 312 |
Current year [Member] | Performance-based compensation expense deferred until later years comprises [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | 152 | 127 | 123 |
Prior year [Member] | Performance-based compensation expense comprises [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | 147 | 139 | 163 |
Prior year [Member] | Performance-based compensation expense deferred until later years comprises [Member] | |||
OPERATING EXPENSES (Details) - Schedule of Performance-Based Compensation Costs [Line Items] | |||
Awards made | £ 37 | £ 35 | £ 41 |
OPERATING EXPENSES (Details) _3
OPERATING EXPENSES (Details) - Schedule of Average Number of Persons Employed by the Group | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING EXPENSES (Details) - Schedule of Average Number of Persons Employed by the Group [Line Items] | |||
Number of Employees | 72,626 | 75,944 | 80,418 |
Country of domicile [member] | |||
OPERATING EXPENSES (Details) - Schedule of Average Number of Persons Employed by the Group [Line Items] | |||
Number of Employees | 71,857 | 75,150 | 79,606 |
Foreign countries [member] | |||
OPERATING EXPENSES (Details) - Schedule of Average Number of Persons Employed by the Group [Line Items] | |||
Number of Employees | 769 | 794 | 812 |
AUDITORS' REMUNERATION (Details
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by the Group - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by the Group [Line Items] | |||
Audit fees | £ 24.7 | £ 24.3 | £ 22.4 |
Services relating to taxation: | |||
Services relating to taxation | 0.3 | ||
Other non-audit fees: | |||
Other non-audit fees | 2 | 3.6 | 1.6 |
Total fees payable to the Company’s auditors by the Group | 26.7 | 27.9 | 24.3 |
Audit of the company's current year annual report [Member] | |||
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by the Group [Line Items] | |||
Audit fees | 1.5 | 1.5 | 1.5 |
Audit of the company's subsidiaries pursuant to legislation [Member] | |||
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by the Group [Line Items] | |||
Audit fees | 19.1 | 18.6 | 14.7 |
Other services supplied pursuant to legislation [Member] | |||
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by the Group [Line Items] | |||
Audit fees | 2.9 | 3 | 3.1 |
Total audit fees [Member] | |||
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by the Group [Line Items] | |||
Audit fees | 23.5 | 23.1 | 19.3 |
Other services – audit related fees [Member] | |||
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by the Group [Line Items] | |||
Audit fees | 1.2 | 1.2 | 3.1 |
Taxation compliance services [Member] | |||
Services relating to taxation: | |||
Services relating to taxation | 0.2 | ||
All other taxation advisory services [Member] | |||
Services relating to taxation: | |||
Services relating to taxation | 0.1 | ||
Services relating to corporate finanace transactions [Member] | |||
Other non-audit fees: | |||
Other non-audit fees | 1.2 | 0.1 | |
Other services [member] | |||
Other non-audit fees: | |||
Other non-audit fees | £ 2 | £ 2.4 | £ 1.5 |
AUDITORS' REMUNERATION (Detai_2
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by Outside Entities - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Audits of group pension schemes [Member] | |||
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by Outside Entities [Line Items] | |||
£ 0.1 | £ 0.1 | £ 0.3 | |
Audits of the unconsolidated Open Ended Investment Companies managed by the Group [Member] | |||
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by Outside Entities [Line Items] | |||
0.3 | 0.3 | 0.4 | |
Reviews of the financial position of corporate and other borrowers [Member] | |||
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by Outside Entities [Line Items] | |||
£ 0.4 | 0.2 | 1.2 | |
Acquisition due diligence and other work performed in respect of potential venture capital investments [Member] | |||
AUDITORS' REMUNERATION (Details) - Schedule of Fees Payable to Auditors by Outside Entities [Line Items] | |||
£ 0.1 | £ 1 |
IMPAIRMENT (Details) - Schedule
IMPAIRMENT (Details) - Schedule of Impairment - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
IMPAIRMENT (Details) - Schedule of Impairment [Line Items] | |||
Impact of transfers between stages | £ 485 | ||
Other changes in credit quality | 543 | ||
Additions (repayments) | (90) | ||
Methodology changes | (20) | ||
Other items | 19 | ||
Other items impacting the impairment charge | 452 | ||
Total impairment | 937 | £ 688 | £ 752 |
In respect of: | |||
Financial assets at amortised cost | 1,023 | ||
Other assets | 1 | ||
Impairment charge on drawn balances | 1,024 | ||
Loan commitments and financial guarantees | (73) | ||
Financial assets at fair value through other comprehensive income | (14) | ||
Stage 1 [member] | |||
IMPAIRMENT (Details) - Schedule of Impairment [Line Items] | |||
Impact of transfers between stages | (12) | ||
Other changes in credit quality | (20) | ||
Additions (repayments) | 18 | ||
Methodology changes | (71) | ||
Other items | (13) | ||
Other items impacting the impairment charge | (86) | ||
Total impairment | (98) | ||
In respect of: | |||
Financial assets at amortised cost | (65) | ||
Impairment charge on drawn balances | (65) | ||
Loan commitments and financial guarantees | (19) | ||
Financial assets at fair value through other comprehensive income | (14) | ||
Stage 2 [member] | |||
IMPAIRMENT (Details) - Schedule of Impairment [Line Items] | |||
Impact of transfers between stages | 51 | ||
Other changes in credit quality | (47) | ||
Additions (repayments) | (82) | ||
Methodology changes | (21) | ||
Other items impacting the impairment charge | (150) | ||
Total impairment | (99) | ||
In respect of: | |||
Financial assets at amortised cost | (51) | ||
Impairment charge on drawn balances | (51) | ||
Loan commitments and financial guarantees | (48) | ||
Stage 3 [member] | |||
IMPAIRMENT (Details) - Schedule of Impairment [Line Items] | |||
Impact of transfers between stages | 446 | ||
Other changes in credit quality | 541 | ||
Additions (repayments) | 43 | ||
Methodology changes | 72 | ||
Other items | 32 | ||
Other items impacting the impairment charge | 688 | ||
Total impairment | 1,134 | ||
In respect of: | |||
Financial assets at amortised cost | 1,139 | ||
Other assets | 1 | ||
Impairment charge on drawn balances | 1,140 | ||
Loan commitments and financial guarantees | (6) | ||
Purchased or originated credit-impaired [member] | |||
IMPAIRMENT (Details) - Schedule of Impairment [Line Items] | |||
Other changes in credit quality | 69 | ||
Additions (repayments) | (69) | ||
Loans and Advances to Banks [Member] | |||
In respect of: | |||
Loans and advances | 1 | ||
Loans and Advances to Banks [Member] | Stage 1 [member] | |||
In respect of: | |||
Loans and advances | 1 | ||
Loans and Advances to Banks [Member] | Stage 2 [member] | |||
In respect of: | |||
Loans and advances | |||
Loans and Advances to Banks [Member] | Stage 3 [member] | |||
In respect of: | |||
Loans and advances | |||
Loans and Advances to Banks [Member] | Purchased or originated credit-impaired [member] | |||
In respect of: | |||
Loans and advances | |||
Loans and advances to customers [Member] | |||
In respect of: | |||
Loans and advances | 1,022 | ||
Loans and advances to customers [Member] | Stage 1 [member] | |||
In respect of: | |||
Loans and advances | (66) | ||
Loans and advances to customers [Member] | Stage 2 [member] | |||
In respect of: | |||
Loans and advances | (51) | ||
Loans and advances to customers [Member] | Stage 3 [member] | |||
In respect of: | |||
Loans and advances | £ 1,139 |
IMPAIRMENT (Details) - Schedu_2
IMPAIRMENT (Details) - Schedule of Movement in Impairment Charges - Impairment charged to the income statement - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
IMPAIRMENT (Details) - Schedule of Movement in Impairment Charges [Line Items] | ||
Total impairment losses on loans and receivables | £ 691 | £ 592 |
Impairment of available-for-sale financial assets | 6 | 173 |
Other credit risk provisions | (9) | (13) |
Total impairment charged to the income statement | 688 | 752 |
Loans and advances to customers [Member] | ||
IMPAIRMENT (Details) - Schedule of Movement in Impairment Charges [Line Items] | ||
Impairment losses on loans and receivables | 697 | £ 592 |
Debt securities classified as loans and receivables [Member] | ||
IMPAIRMENT (Details) - Schedule of Movement in Impairment Charges [Line Items] | ||
Impairment losses on loans and receivables | £ (6) |
TAXATION (Details)
TAXATION (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of income tax [text block] [Abstract] | |||
Applicable tax rate | 19.00% | 19.25% | 20.00% |
TAXATION (Details) - Schedule o
TAXATION (Details) - Schedule of Tax Charges - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
TAXATION (Details) - Schedule of Tax Charges [Line Items] | |||
Current tax expense | £ (1,404) | £ (1,250) | £ (872) |
Deferred tax expense | (156) | (478) | (852) |
Tax expense | (1,560) | (1,728) | (1,724) |
UK Corporation Tax [Member] | |||
TAXATION (Details) - Schedule of Tax Charges [Line Items] | |||
Current tax on profit for the year | (1,386) | (1,342) | (1,010) |
Adjustments in respect of prior years | 11 | 122 | 156 |
Current tax expense | (1,375) | (1,220) | (854) |
Foreign Tax [Member] | |||
TAXATION (Details) - Schedule of Tax Charges [Line Items] | |||
Current tax on profit for the year | (34) | (40) | (20) |
Adjustments in respect of prior years | 5 | 10 | 2 |
Current tax expense | (29) | (30) | (18) |
DeferredTax[Member] | |||
TAXATION (Details) - Schedule of Tax Charges [Line Items] | |||
Current year | (127) | (430) | (758) |
Adjustments in respect of prior years | £ (29) | £ (48) | £ (94) |
TAXATION (Details) - Schedule_2
TAXATION (Details) - Schedule of Income Tax Charges - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Income Tax Charges [Abstract] | |||
Tax (expense) credit attributable to policyholders | £ 14 | £ (82) | £ (301) |
Shareholder tax expense | (1,574) | (1,646) | (1,423) |
Tax expense | £ (1,560) | £ (1,728) | £ (1,724) |
TAXATION (Details) - Schedule_3
TAXATION (Details) - Schedule of Reconciliation of the Charge Resulting from Applying the Standard UK Corporation Tax Rate - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Reconciliation of the Charge Resulting from Applying the Standard UK Corporation Tax Rate [Abstract] | |||
Profit before tax | £ 5,960 | £ 5,625 | £ 3,888 |
UK corporation tax thereon | (1,132) | (1,083) | (778) |
Impact of surcharge on banking profits | (432) | (452) | (266) |
Non-deductible costs: conduct charges | (101) | (287) | (289) |
Non-deductible costs: bank levy | (43) | (44) | (40) |
Other non-deductible costs | (90) | (59) | (135) |
Non-taxable income | 87 | 72 | 75 |
Tax-exempt gains on disposals | 124 | 128 | 19 |
(Derecognition) recognition of losses that arose in prior years | (9) | 59 | |
Remeasurement of deferred tax due to rate changes | 32 | (9) | (201) |
Differences in overseas tax rates | 6 | (15) | 10 |
Policyholder tax | (62) | (66) | (57) |
Policyholder deferred tax asset in respect of life assurance expenses | 73 | (184) | |
Adjustments in respect of prior years | (13) | 88 | 64 |
Tax effect of share of results of joint ventures | (1) | (1) | |
Tax expense | £ (1,560) | £ (1,728) | £ (1,724) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - GBP (£) £ in Millions, shares in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of earnings per share [text block] [Abstract] | |||
Number of shares reserved for issue under options and contracts for sale of shares | 38 | 57 | 140 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Number Of Shares | £ 0 | £ 0 | £ 0.3 |
EARNINGS PER SHARE (Details) -
EARNINGS PER SHARE (Details) - Schedule of Earnings Per Share - GBP (£) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Earnings Per Share [Abstract] | |||
Profit attributable to equity shareholders – basic and diluted | £ 3,869 | £ 3,392 | £ 1,651 |
Tax credit on distributions to other equity holders | 106 | 102 | 91 |
£ 3,975 | £ 3,494 | £ 1,742 | |
Weighted average number of ordinary shares in issue – basic | 71,638 | 71,710 | 71,234 |
Adjustment for share options and awards | 641 | 683 | 790 |
Weighted average number of ordinary shares in issue – diluted | 72,279 | 72,393 | 72,024 |
Basic earnings per share | £ 0.055 | £ 0.049 | £ 0.024 |
Diluted earnings per share | £ 0.055 | £ 0.048 | £ 0.024 |
FINANCIAL ASSETS AT FAIR VALU_5
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Types of insurance contracts [member] | |||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) [Line Items] | |||
Financial assets at fair value through profit or loss | £ 116,903 | £ 126,968 | £ 117,323 |
Unconsolidated structured entities [member] | Types of insurance contracts [member] | |||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) [Line Items] | |||
Financial assets at fair value through profit or loss | £ 26,028 | £ 28,759 | £ 28,759 |
FINANCIAL ASSETS AT FAIR VALU_6
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss - Financial assets at fair value through profit or loss, category [member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss [Line Items] | ||
Loans and advances to customers | £ 37,850 | £ 29,976 |
Loans and advances to banks | 3,026 | 1,614 |
Government securities | 18,095 | 22,020 |
Other public sector securities | 2,064 | 1,527 |
Bank and building society certificates of deposit | 1,105 | 222 |
Asset-backed securities: | ||
Mortgage-backed securities | 225 | 400 |
Other asset-backed securities | 349 | 1,021 |
Corporate and other debt securities | 18,310 | 19,990 |
Debt securities | 40,148 | 45,180 |
Equity shares | 77,485 | 86,090 |
Treasury and other bills | 20 | 18 |
Total | 158,529 | |
Increase (decrease) due to application of IFRS 15 [member] | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss [Line Items] | ||
Loans and advances to customers | 41,410 | |
Loans and advances to banks | 4,196 | |
Government securities | 20,950 | |
Other public sector securities | 1,543 | |
Bank and building society certificates of deposit | 222 | |
Asset-backed securities: | ||
Mortgage-backed securities | 402 | |
Other asset-backed securities | 328 | |
Corporate and other debt securities | 20,230 | |
Debt securities | 43,675 | |
Equity shares | 86,709 | |
Treasury and other bills | 18 | |
Total | 176,008 | |
Previously stated [member] | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss [Line Items] | ||
Loans and advances to customers | 29,976 | |
Loans and advances to banks | 1,614 | |
Government securities | 22,020 | |
Other public sector securities | 1,527 | |
Bank and building society certificates of deposit | 222 | |
Asset-backed securities: | ||
Mortgage-backed securities | 400 | |
Other asset-backed securities | 1,021 | |
Corporate and other debt securities | 19,990 | |
Debt securities | 45,180 | |
Equity shares | 86,090 | |
Treasury and other bills | 18 | |
Total | 162,878 | |
Trading Assets, Excluding Debt and Equity Securities [Member] | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss [Line Items] | ||
Loans and advances to customers | 26,886 | 29,976 |
Loans and advances to banks | 848 | 1,614 |
Government securities | 7,192 | 9,833 |
Asset-backed securities: | ||
Mortgage-backed securities | 10 | 189 |
Other asset-backed securities | 63 | 95 |
Corporate and other debt securities | 247 | 523 |
Debt securities | 7,512 | 10,640 |
Equity shares | 6 | |
Total | 35,246 | 42,236 |
Trading Assets, Excluding Debt and Equity Securities [Member] | Previously stated [member] | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss [Line Items] | ||
Loans and advances to customers | 29,976 | |
Loans and advances to banks | 1,614 | |
Government securities | 9,833 | |
Asset-backed securities: | ||
Mortgage-backed securities | 189 | |
Other asset-backed securities | 95 | |
Corporate and other debt securities | 523 | |
Debt securities | 10,640 | |
Equity shares | 6 | |
Total | 42,236 | |
Financial assets at fair value through profit or loss, mandatorily measured at fair value, category [member] | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss [Line Items] | ||
Loans and advances to customers | 10,964 | 11,434 |
Loans and advances to banks | 2,178 | 2,582 |
Government securities | 10,903 | 11,117 |
Other public sector securities | 2,064 | 1,543 |
Bank and building society certificates of deposit | 1,105 | 222 |
Asset-backed securities: | ||
Mortgage-backed securities | 215 | 213 |
Other asset-backed securities | 286 | 233 |
Corporate and other debt securities | 18,063 | 19,707 |
Debt securities | 32,636 | 33,035 |
Equity shares | 77,485 | 86,703 |
Treasury and other bills | 20 | 18 |
Total | £ 123,283 | 133,772 |
Financial assets at fair value through profit or loss, classified as other, category [member] | Previously stated [member] | ||
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Assets at Fair Value Through Profit or Loss [Line Items] | ||
Government securities | 12,187 | |
Other public sector securities | 1,527 | |
Bank and building society certificates of deposit | 222 | |
Asset-backed securities: | ||
Mortgage-backed securities | 211 | |
Other asset-backed securities | 926 | |
Corporate and other debt securities | 19,467 | |
Debt securities | 34,540 | |
Equity shares | 86,084 | |
Treasury and other bills | 18 | |
Total | £ 120,642 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) £ in Millions | Dec. 31, 2018GBP (£) |
Disclosure of derivative financial instruments [text block] [Abstract] | |
Hedged Liability, Fair Value Hedge | £ 170 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Derivative Instruments - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Exchange rate contracts: | ||
Contract/notional amount | £ 6,183,642 | |
Fair value assets | 23,595 | £ 25,474 |
Fair value liabilities | 21,373 | 26,124 |
Fair value hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 150,971 | 109,670 |
Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 556,945 | 549,099 |
Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 3,646,377 | |
Fair value assets | 25,834 | |
Fair value liabilities | 26,124 | |
Trading and other exchange rate contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 374,657 | |
Fair value assets | 5,797 | |
Fair value liabilities | 4,753 | |
Trading and other exchange rate contracts [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 270,215 | |
Fair value assets | 4,760 | |
Fair value liabilities | 4,950 | |
Interest Rate Contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 5,061,099 | |
Fair value assets | 15,747 | |
Fair value liabilities | 14,632 | |
Interest Rate Contract [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 2,605,087 | |
Fair value assets | 18,134 | |
Fair value liabilities | 17,896 | |
Credit Derivatives [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 13,757 | |
Fair value assets | 99 | |
Fair value liabilities | 181 | |
Credit Derivatives [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 4,568 | |
Fair value assets | 77 | |
Fair value liabilities | 423 | |
Equity And Other Contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 15,145 | |
Fair value assets | 389 | |
Fair value liabilities | 699 | |
Equity And Other Contracts [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 25,150 | |
Fair value assets | 982 | |
Fair value liabilities | 1,242 | |
Trading and Other [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 5,464,658 | |
Fair value assets | 22,032 | |
Fair value liabilities | 20,265 | |
Trading and Other [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 2,905,020 | |
Fair value assets | 23,953 | |
Fair value liabilities | 24,511 | |
Hedging instruments [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 718,984 | |
Fair value assets | 1,563 | |
Fair value liabilities | 1,108 | |
Hedging instruments [member] | Fair value hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 151,461 | |
Fair value assets | 950 | |
Fair value liabilities | 216 | |
Hedging instruments [member] | Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 567,523 | |
Fair value assets | 613 | |
Fair value liabilities | 892 | |
Hedging instruments [member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 741,357 | |
Fair value assets | 1,881 | |
Fair value liabilities | 1,613 | |
Hedging instruments [member] | Previously stated [member] | Fair value hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 110,997 | |
Fair value assets | 1,164 | |
Fair value liabilities | 445 | |
Hedging instruments [member] | Previously stated [member] | Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 630,360 | |
Fair value assets | 717 | |
Fair value liabilities | 1,168 | |
Spots, Forwards, and Futures [Member] | Trading and other exchange rate contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 41,571 | |
Fair value assets | 746 | |
Fair value liabilities | 549 | |
Spots, Forwards, and Futures [Member] | Trading and other exchange rate contracts [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 31,716 | |
Fair value assets | 1,023 | |
Fair value liabilities | 789 | |
Currency swap contract [member] | Trading and other exchange rate contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 311,491 | |
Fair value assets | 4,566 | |
Fair value liabilities | 3,709 | |
Currency swap contract [member] | Trading and other exchange rate contracts [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 223,624 | |
Fair value assets | 3,157 | |
Fair value liabilities | 3,534 | |
Currency swap contract [member] | Hedging instruments [member] | Fair value hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 490 | |
Fair value assets | 3 | |
Fair value liabilities | 29 | |
Currency swap contract [member] | Hedging instruments [member] | Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 10,578 | |
Fair value assets | 255 | |
Fair value liabilities | 48 | |
Currency swap contract [member] | Hedging instruments [member] | Previously stated [member] | Fair value hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 1,327 | |
Fair value assets | 19 | |
Fair value liabilities | 38 | |
Currency swap contract [member] | Hedging instruments [member] | Previously stated [member] | Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 7,310 | |
Fair value assets | 120 | |
Fair value liabilities | 114 | |
Purchased call options [member] | Trading and other exchange rate contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 10,202 | |
Fair value assets | 485 | |
Purchased call options [member] | Trading and other exchange rate contracts [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 8,191 | |
Fair value assets | 580 | |
Purchased call options [member] | Interest Rate Contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 30,724 | |
Fair value assets | 2,107 | |
Purchased call options [member] | Interest Rate Contract [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 32,097 | |
Fair value assets | 2,329 | |
Written put options [member] | Trading and other exchange rate contracts [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 11,393 | |
Fair value liabilities | 495 | |
Written put options [member] | Trading and other exchange rate contracts [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 6,684 | |
Fair value liabilities | 627 | |
Written put options [member] | Interest Rate Contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 26,463 | |
Fair value liabilities | 1,997 | |
Written put options [member] | Interest Rate Contract [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 32,817 | |
Fair value liabilities | 2,524 | |
Interest rate swap contract [member] | Interest Rate Contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 4,381,271 | |
Fair value assets | 13,624 | |
Fair value liabilities | 12,629 | |
Interest rate swap contract [member] | Interest Rate Contract [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 2,264,834 | |
Fair value assets | 15,791 | |
Fair value liabilities | 15,364 | |
Interest rate swap contract [member] | Hedging instruments [member] | Fair value hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 150,971 | |
Fair value assets | 947 | |
Fair value liabilities | 187 | |
Interest rate swap contract [member] | Hedging instruments [member] | Previously stated [member] | Fair value hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 109,670 | |
Fair value assets | 1,145 | |
Fair value liabilities | 407 | |
Forward Rate Agreements [Member] | Interest Rate Contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 494,430 | |
Fair value liabilities | 2 | |
Forward Rate Agreements [Member] | Interest Rate Contract [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 239,797 | |
Fair value assets | 5 | |
Fair value liabilities | 1 | |
Futures contract [member] | Interest Rate Contract [Member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 128,211 | |
Fair value assets | 16 | |
Fair value liabilities | 4 | |
Futures contract [member] | Interest Rate Contract [Member] | Previously stated [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 35,542 | |
Fair value assets | 9 | |
Fair value liabilities | 7 | |
Futures contract [member] | Hedging instruments [member] | Previously stated [member] | Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 73,951 | |
Fair value liabilities | 1 | |
Interest Rate Swap [Member] | Hedging instruments [member] | Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 556,945 | |
Fair value assets | 358 | |
Fair value liabilities | £ 844 | |
Interest Rate Swap [Member] | Hedging instruments [member] | Previously stated [member] | Cash flow hedges [member] | ||
Exchange rate contracts: | ||
Contract/notional amount | 549,099 | |
Fair value assets | 597 | |
Fair value liabilities | £ 1,053 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 150,971 | £ 109,670 |
Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | 556,945 | £ 549,099 |
Later than one month and not later than three months [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 11,204 | |
Average fixed interest rate | 1.03% | |
Later than one year and not later than five years [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 292,712 | |
Average fixed interest rate | 1.46% | |
Later than five years [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 181,843 | |
Average fixed interest rate | 1.85% | |
Not later than one month [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 4,874 | |
Average fixed interest rate | 1.47% | |
Later than three months and not later than one year [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 66,312 | |
Average fixed interest rate | 0.99% | |
Swaps [Member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 490 | |
Swaps [Member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | 10,578 | |
Swaps [Member] | Later than one month and not later than three months [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 36 | |
Average fixed interest rate | 4.82% | |
Swaps [Member] | Later than one month and not later than three months [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 47 | |
Swaps [Member] | Later than one year and not later than five years [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 283 | |
Average fixed interest rate | 5.88% | |
Swaps [Member] | Later than one year and not later than five years [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 2,111 | |
Swaps [Member] | Later than five years [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 171 | |
Average fixed interest rate | 4.44% | |
Swaps [Member] | Later than five years [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 6,119 | |
Swaps [Member] | Not later than one month [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | 67 | |
Swaps [Member] | Later than three months and not later than one year [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 2,234 | |
Swaps [Member] | Euro to USD | Later than one year and not later than five years [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 1.13 | |
Swaps [Member] | Euro to USD | Later than one year and not later than five years [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 1.10 | |
Swaps [Member] | Euro to USD | Later than five years [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 1.07 | |
Swaps [Member] | Euro to USD | Not later than one month [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 1.15 | |
Swaps [Member] | Euro to USD | Later than three months and not later than one year [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 1.13 | |
Swaps [Member] | USD to Euro | Later than one month and not later than three months [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 1.32 | |
Swaps [Member] | USD to Euro | Later than one year and not later than five years [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 1.30 | |
Swaps [Member] | USD to Euro | Later than one year and not later than five years [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 1.27 | |
Swaps [Member] | USD to Euro | Later than five years [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 1.28 | |
Swaps [Member] | USD to Euro | Later than three months and not later than one year [member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 1.34 | |
Swaps [Member] | NOK to GBP | Later than one month and not later than three months [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 9.22 | |
Swaps [Member] | NOK to GBP | Later than one year and not later than five years [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 9.19 | |
Swaps [Member] | NOK to GBP | Later than five years [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Average exchange rate | 9.03 | |
InterestRateHedges[Member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 150,971 | |
InterestRateHedges[Member] | Later than one month and not later than three months [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 417 | |
Average fixed interest rate | 2.06% | |
InterestRateHedges[Member] | Later than one year and not later than five years [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 86,451 | |
Average fixed interest rate | 1.75% | |
InterestRateHedges[Member] | Later than five years [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 30,834 | |
Average fixed interest rate | 2.98% | |
InterestRateHedges[Member] | Not later than one month [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 393 | |
Average fixed interest rate | 1.38% | |
InterestRateHedges[Member] | Later than three months and not later than one year [member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Amount, timing and uncertainty of future cash flows [Line Items] | ||
Notional (in Pounds) | £ 32,876 | |
Average fixed interest rate | 1.65% |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of the effects of hedge accounting on swaps £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
Currency Swap [Member] | Fair value hedges [member] | |
Interest rate | |
Contract/notional amount | £ 490 |
Assets | 3 |
Liabilities | 29 |
Changes in fair value used for calculating hedge ineffectiveness | (10) |
Currency Swap [Member] | Cash flow hedges [member] | |
Interest rate | |
Contract/notional amount | 10,578 |
Assets | 255 |
Liabilities | 48 |
Changes in fair value used for calculating hedge ineffectiveness | 229 |
Interest Rate Swap [Member] | Fair value hedges [member] | |
Interest rate | |
Contract/notional amount | 150,971 |
Assets | 947 |
Liabilities | 187 |
Changes in fair value used for calculating hedge ineffectiveness | 104 |
Interest Rate Swap [Member] | Cash flow hedges [member] | |
Interest rate | |
Contract/notional amount | 556,945 |
Assets | 358 |
Liabilities | 844 |
Changes in fair value used for calculating hedge ineffectiveness | £ (781) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of the effects of hedge accounting £ in Millions | 12 Months Ended | |
Dec. 31, 2018GBP (£) | ||
FixedRateMorgages[Member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of the effects of hedge accounting [Line Items] | ||
Carrying amount of the hedged item, Assets | £ 53,136 | [1] |
Accumulated amount of fair value adjustment on the hedged item, Assets | (45) | [1] |
Change in fair value of hedged item for ineffectiveness assessment | (173) | [1] |
Foreign Currency Issuance [Member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of the effects of hedge accounting [Line Items] | ||
Carrying amount of the hedged item, Liabilities | 63,746 | [2] |
Accumulated amount of fair value adjustment on the hedged item, Liabilities | 1,598 | [2] |
Change in fair value of hedged item for ineffectiveness assessment | 807 | [2] |
Foreign Currency Issuance [Member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of the effects of hedge accounting [Line Items] | ||
Change in fair value of hedged item for ineffectiveness assessment | (165) | [2] |
Cash flow hedge/currency translation reserve, Continuing hedges | 114 | [2] |
Cash flow hedge/currency translation reserve, Discontinued hedges | 327 | [2] |
Fixed Rate Bonds [Member] | Fair value hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of the effects of hedge accounting [Line Items] | ||
Carrying amount of the hedged item, Assets | 23,285 | [3] |
Accumulated amount of fair value adjustment on the hedged item, Assets | 232 | [3] |
Change in fair value of hedged item for ineffectiveness assessment | (666) | [3] |
Other Customer Deposits [Member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of the effects of hedge accounting [Line Items] | ||
Change in fair value of hedged item for ineffectiveness assessment | (62) | [4] |
Cash flow hedge/currency translation reserve, Continuing hedges | 70 | [4] |
Cash flow hedge/currency translation reserve, Discontinued hedges | (78) | [4] |
Customer Loans [Member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of the effects of hedge accounting [Line Items] | ||
Change in fair value of hedged item for ineffectiveness assessment | 456 | [1] |
Cash flow hedge/currency translation reserve, Continuing hedges | 867 | [1] |
Cash flow hedge/currency translation reserve, Discontinued hedges | 60 | [1] |
Central Bank Balances [Member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of the effects of hedge accounting [Line Items] | ||
Change in fair value of hedged item for ineffectiveness assessment | (16) | [5] |
Cash flow hedge/currency translation reserve, Continuing hedges | 30 | [5] |
Cash flow hedge/currency translation reserve, Discontinued hedges | 20 | [5] |
Deposits from Customers [Member] | Cash flow hedges [member] | ||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of the effects of hedge accounting [Line Items] | ||
Change in fair value of hedged item for ineffectiveness assessment | (118) | [4] |
Cash flow hedge/currency translation reserve, Continuing hedges | (9) | [4] |
Cash flow hedge/currency translation reserve, Discontinued hedges | £ (6) | [4] |
[1] | Included within Loans and advances to customers | |
[2] | Included within Debt securities in issue | |
[3] | Included within Financial assets at fair value through other comprehensive income | |
[4] | Included within Customer deposits | |
[5] | Included within Cash and balances at central banks |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of amounts reclassified from reserves to income statement £ in Millions | 12 Months Ended | |
Dec. 31, 2018GBP (£) | ||
Interest Rate [Member] | Fixed Rate Mortgages [Member] | Fair value hedges [member] | ||
Fair value hedge | ||
Hedge ineffectiveness recognised in the income statement | £ 106 | [1] |
Interest Rate [Member] | Fixed Rate Issuance [Member] | Fair value hedges [member] | ||
Fair value hedge | ||
Hedge ineffectiveness recognised in the income statement | (17) | [1] |
Interest Rate [Member] | Fixed Rate Bonds [Member] | Fair value hedges [member] | ||
Fair value hedge | ||
Hedge ineffectiveness recognised in the income statement | (27) | [1] |
Interest Rate [Member] | Customer Loans [Member] | Cash flow hedges [member] | ||
Fair value hedge | ||
Gain (loss) recognised in other comprehensive income | (418) | |
Hedge ineffectiveness recognised in the income statement | (17) | [1] |
Hedged item affected income statement | (467) | |
Interest Rate [Member] | Central Bank Balances [Member] | Cash flow hedges [member] | ||
Fair value hedge | ||
Gain (loss) recognised in other comprehensive income | (63) | |
Hedge ineffectiveness recognised in the income statement | (5) | [1] |
Hedged item affected income statement | (52) | |
Interest Rate [Member] | Deposits from Customers [Member] | Cash flow hedges [member] | ||
Fair value hedge | ||
Gain (loss) recognised in other comprehensive income | (49) | |
Hedge ineffectiveness recognised in the income statement | (1) | [1] |
Hedged item affected income statement | (69) | |
Foreign Exchange [Member] | Foreign Currency Issuance [Member] | Cash flow hedges [member] | ||
Fair value hedge | ||
Gain (loss) recognised in other comprehensive income | 85 | |
Hedge ineffectiveness recognised in the income statement | [1] | |
Hedged item affected income statement | (81) | |
Foreign Exchange [Member] | Deposits from Customers [Member] | Cash flow hedges [member] | ||
Fair value hedge | ||
Gain (loss) recognised in other comprehensive income | (22) | |
Hedge ineffectiveness recognised in the income statement | (2) | [1] |
Hedged item affected income statement | £ (32) | |
[1] | Hedge ineffectiveness is included in the income statement within net trading income. |
FINANCIAL ASSETS AT AMORTISED_3
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers - Loans and advances to customers [Member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Beginning Balance | £ 464,239 | ||
Exchange and other movements | 990 | ||
Additions (repayments) | 28,072 | ||
Recoveries | 580 | ||
Disposal of businesses | (4,297) | ||
Financial assets that have been written off during the year | (1,576) | ||
Ending Balance | 488,008 | ||
Allowance for impairment losses | £ (3,150) | ||
Total loans and advances to customers | 464,239 | £ 464,239 | 484,858 |
Previously stated [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Beginning Balance | 474,699 | ||
Total loans and advances to customers | 474,699 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Beginning Balance | (10,460) | ||
Total loans and advances to customers | (10,460) | ||
Stage 1 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Beginning Balance | 403,881 | ||
Exchange and other movements | 958 | ||
Additions (repayments) | 34,942 | ||
Transfers | 1,750 | ||
Ending Balance | 441,531 | ||
Allowance for impairment losses | (525) | ||
Total loans and advances to customers | 403,881 | 403,881 | 441,006 |
Stage 2 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Beginning Balance | 37,245 | ||
Exchange and other movements | 32 | ||
Additions (repayments) | (2,187) | ||
Transfers | (5,725) | ||
Disposal of businesses | (4,020) | ||
Ending Balance | 25,345 | ||
Allowance for impairment losses | (994) | ||
Total loans and advances to customers | 37,245 | 37,245 | 24,351 |
Stage 3 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Beginning Balance | 5,140 | ||
Additions (repayments) | (2,074) | ||
Transfers | 3,975 | ||
Recoveries | 553 | ||
Disposal of businesses | (277) | ||
Financial assets that have been written off during the year | (1,576) | ||
Ending Balance | 5,741 | ||
Allowance for impairment losses | (1,553) | ||
Total loans and advances to customers | 5,140 | 5,140 | 4,188 |
Purchased or originated credit-impaired [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Beginning Balance | 17,973 | ||
Additions (repayments) | (2,609) | ||
Recoveries | 27 | ||
Ending Balance | 15,391 | ||
Allowance for impairment losses | (78) | ||
Total loans and advances to customers | 17,973 | £ 17,973 | £ 15,313 |
Stage 1 [member] | Stage 1 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Transfers to Stage 1 | 19,524 | ||
Stage 1 [member] | Stage 2 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Transfers to Stage 1 | (19,501) | ||
Stage 1 [member] | Stage 3 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Transfers to Stage 1 | (23) | ||
Stage 2 [member] | Stage 1 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Transfers to Stage 2 | (15,743) | ||
Stage 2 [member] | Stage 2 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Transfers to Stage 2 | 15,996 | ||
Stage 2 [member] | Stage 3 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Transfers to Stage 2 | (253) | ||
Stage 3 [member] | Stage 1 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Transfers to Stage 3 | (2,031) | ||
Stage 3 [member] | Stage 2 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Transfers to Stage 3 | (2,220) | ||
Stage 3 [member] | Stage 3 [member] | |||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to customers [Line Items] | |||
Transfers to Stage 3 | £ 4,251 |
FINANCIAL ASSETS AT AMORTISED_4
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to banks - Loans and Advances to Banks [Member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | |
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to banks [Line Items] | ||
Beginning Balance | £ 4,247 | |
Exchange and other movements | (28) | |
Additions (repayments) | 2,066 | |
Ending Balance | 6,285 | |
Allowance for impairment losses | £ (2) | |
Total loans and advances to banks | 4,247 | 6,283 |
Previously stated [member] | ||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to banks [Line Items] | ||
Beginning Balance | 6,611 | |
Total loans and advances to banks | 6,611 | |
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to banks [Line Items] | ||
Beginning Balance | (2,364) | |
Total loans and advances to banks | (2,364) | |
Stage 1 [member] | ||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to banks [Line Items] | ||
Beginning Balance | 4,245 | |
Exchange and other movements | (29) | |
Additions (repayments) | 2,066 | |
Ending Balance | 6,282 | |
Allowance for impairment losses | (2) | |
Total loans and advances to banks | 4,245 | 6,280 |
Stage 2 [member] | ||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Loans and advances to banks [Line Items] | ||
Beginning Balance | 2 | |
Exchange and other movements | 1 | |
Ending Balance | 3 | |
Total loans and advances to banks | £ 2 | £ 3 |
FINANCIAL ASSETS AT AMORTISED_5
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Debt securities - Debt securities [member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | |
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Debt securities [Line Items] | ||
Beginning Balance | £ 3,340 | |
Exchange and other movements | 63 | |
Additions (repayments) | 1,870 | |
Financial assets that have been written off during the year | (29) | |
Ending Balance | 5,244 | |
Allowance for impairment losses | £ (6) | |
Total debt securities | 3,340 | 5,238 |
Total financial assets at amortised cost | 496,379 | |
Previously stated [member] | ||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Debt securities [Line Items] | ||
Beginning Balance | 3,669 | |
Total debt securities | 3,669 | |
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Debt securities [Line Items] | ||
Beginning Balance | (329) | |
Total debt securities | (329) | |
Stage 1 [member] | ||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Debt securities [Line Items] | ||
Beginning Balance | 3,291 | |
Exchange and other movements | 77 | |
Additions (repayments) | 1,870 | |
Ending Balance | 5,238 | |
Total debt securities | 3,291 | 5,238 |
Total financial assets at amortised cost | 452,524 | |
Stage 3 [member] | ||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Debt securities [Line Items] | ||
Beginning Balance | 49 | |
Exchange and other movements | (14) | |
Financial assets that have been written off during the year | (29) | |
Ending Balance | 6 | |
Allowance for impairment losses | (6) | |
Total debt securities | £ 49 | |
Total financial assets at amortised cost | 4,188 | |
Stage 2 [member] | ||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Debt securities [Line Items] | ||
Total financial assets at amortised cost | 24,354 | |
Purchased or originated credit-impaired [member] | ||
FINANCIAL ASSETS AT AMORTISED COST (Details) - Disclosure of Debt securities [Line Items] | ||
Total financial assets at amortised cost | £ 15,313 |
FINANCE LEASE RECEIVABLES (Deta
FINANCE LEASE RECEIVABLES (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis of finance lease payments receivable [text block] [Abstract] | ||
Capital Leases, Net Investment in Direct Financing Leases, Allowance for Uncollectible Minimum Lease Payments | £ 1 | £ 0 |
FINANCE LEASE RECEIVABLES (Det
FINANCE LEASE RECEIVABLES (Details) - Schedule of Lease Receivable Balances - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCE LEASE RECEIVABLES (Details) - Schedule of Lease Receivable Balances [Line Items] | ||
Gross investment in finance leases, receivable: | £ 2,913 | £ 2,839 |
Unearned future finance income on finance leases | (1,068) | (692) |
Rentals received in advance | (23) | (53) |
Net investment in finance leases | 1,822 | 2,094 |
Not later than one year [member] | ||
FINANCE LEASE RECEIVABLES (Details) - Schedule of Lease Receivable Balances [Line Items] | ||
Gross investment in finance leases, receivable: | 458 | 680 |
Net investment in finance leases | 152 | 546 |
Later than one year and not later than five years [member] | ||
FINANCE LEASE RECEIVABLES (Details) - Schedule of Lease Receivable Balances [Line Items] | ||
Gross investment in finance leases, receivable: | 1,351 | 1,106 |
Net investment in finance leases | 679 | 887 |
Later than five years [member] | ||
FINANCE LEASE RECEIVABLES (Details) - Schedule of Lease Receivable Balances [Line Items] | ||
Gross investment in finance leases, receivable: | 1,104 | 1,053 |
Net investment in finance leases | £ 991 | £ 661 |
FINANCE LEASE RECEIVABLES (D_2
FINANCE LEASE RECEIVABLES (Details) - Schedule of Lease Receivable Net Investment - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCE LEASE RECEIVABLES (Details) - Schedule of Lease Receivable Net Investment [Line Items] | ||
Net investment in finance leases | £ 1,822 | £ 2,094 |
Not later than one year [member] | ||
FINANCE LEASE RECEIVABLES (Details) - Schedule of Lease Receivable Net Investment [Line Items] | ||
Net investment in finance leases | 152 | 546 |
Later than one year and not later than five years [member] | ||
FINANCE LEASE RECEIVABLES (Details) - Schedule of Lease Receivable Net Investment [Line Items] | ||
Net investment in finance leases | 679 | 887 |
Later than five years [member] | ||
FINANCE LEASE RECEIVABLES (Details) - Schedule of Lease Receivable Net Investment [Line Items] | ||
Net investment in finance leases | £ 991 | £ 661 |
ALLOWANCE FOR IMPAIRMENT LOSS_3
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) [Line Items] | ||
Allowance account for credit losses of financial assets | £ 3,362 | £ 3,533 |
Expected credit losses collectively assessed [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) [Line Items] | ||
Allowance account for credit losses of financial assets | 1,201 | |
Drawn balance [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) [Line Items] | ||
Change in expected credit loss | (493) | |
Allowance account for credit losses of financial assets | 3,169 | 3,260 |
Undrawn balances [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) [Line Items] | ||
Change in expected credit loss | (8) | |
Allowance account for credit losses of financial assets | £ 193 | 273 |
Financial assets impaired [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) [Line Items] | ||
Allowance account for credit losses of financial assets | £ 1,772 |
ALLOWANCE FOR IMPAIRMENT LOSS_4
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses £ in Millions | 12 Months Ended | |
Dec. 31, 2018GBP (£) | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | £ 3,533 | |
Impact of transfers between stages | 485 | |
Other items charged to the income statement | 19 | |
Ending Balance | 3,362 | |
Impairment loss recognised in profit or loss | 3,362 | |
In respect of: | ||
Expected credit loss in respect of financial assets at fair value through other comprehensive income (memorandum item) | 1 | |
Drawn balance [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 3,260 | |
Exchange and other adjustments | 135 | |
Impact of transfers between stages | 493 | |
Other items charged to the income statement | 531 | |
Charge to the income statement (note 13) | 1,024 | |
Advances written off | (1,605) | |
Disposal of businesses | (181) | [1] |
Recoveries of advances written off in previous years | 580 | |
Discount unwind | (44) | |
Ending Balance | 3,169 | |
Drawn balance [member] | Previously stated [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 2,227 | |
Ending Balance | ||
Drawn balance [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 1,033 | |
Ending Balance | ||
Drawn balance [member] | Impact of transfers between stages [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | 493 | |
Undrawn balances [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 273 | |
Exchange and other adjustments | (7) | |
Impact of transfers between stages | (8) | |
Other items charged to the income statement | (65) | |
Charge to the income statement (note 13) | (73) | |
Ending Balance | 193 | |
Undrawn balances [member] | Previously stated [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 30 | |
Ending Balance | ||
Undrawn balances [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 243 | |
Ending Balance | ||
Undrawn balances [member] | Impact of transfers between stages [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (8) | |
Stage 1 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 650 | |
In respect of: | ||
Expected credit loss in respect of financial assets at fair value through other comprehensive income (memorandum item) | 1 | |
Stage 1 [member] | Drawn balance [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 590 | |
Exchange and other adjustments | 2 | |
Impact of transfers between stages | (7) | |
Other items charged to the income statement | (58) | |
Charge to the income statement (note 13) | (65) | |
Disposal of businesses | [1] | |
Ending Balance | 527 | |
Stage 1 [member] | Drawn balance [member] | Stage 1 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | 304 | |
Stage 1 [member] | Drawn balance [member] | Stage 2 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (46) | |
Stage 1 [member] | Drawn balance [member] | Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (32) | |
Stage 1 [member] | Drawn balance [member] | Impact of transfers between stages [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (233) | |
Stage 1 [member] | Undrawn balances [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 147 | |
Exchange and other adjustments | (5) | |
Impact of transfers between stages | (5) | |
Other items charged to the income statement | (14) | |
Charge to the income statement (note 13) | (19) | |
Ending Balance | 123 | |
Stage 1 [member] | Undrawn balances [member] | Stage 1 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | 28 | |
Stage 1 [member] | Undrawn balances [member] | Stage 2 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (6) | |
Stage 1 [member] | Undrawn balances [member] | Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (2) | |
Stage 1 [member] | Undrawn balances [member] | Impact of transfers between stages [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (25) | |
Stage 2 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 1,058 | |
Stage 2 [member] | Drawn balance [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 1,147 | |
Impact of transfers between stages | 56 | |
Other items charged to the income statement | (107) | |
Charge to the income statement (note 13) | (51) | |
Disposal of businesses | (102) | [1] |
Ending Balance | 994 | |
Stage 2 [member] | Drawn balance [member] | Stage 1 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (299) | |
Stage 2 [member] | Drawn balance [member] | Stage 2 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | 85 | |
Stage 2 [member] | Drawn balance [member] | Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (131) | |
Stage 2 [member] | Drawn balance [member] | Impact of transfers between stages [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | 401 | |
Stage 2 [member] | Undrawn balances [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 126 | |
Exchange and other adjustments | (14) | |
Impact of transfers between stages | (5) | |
Other items charged to the income statement | (43) | |
Charge to the income statement (note 13) | (48) | |
Ending Balance | 64 | |
Stage 2 [member] | Undrawn balances [member] | Stage 1 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (28) | |
Stage 2 [member] | Undrawn balances [member] | Stage 2 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | 6 | |
Stage 2 [member] | Undrawn balances [member] | Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (5) | |
Stage 2 [member] | Undrawn balances [member] | Impact of transfers between stages [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | 22 | |
Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 1,576 | |
Stage 3 [member] | Drawn balance [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 1,491 | |
Exchange and other adjustments | 133 | |
Impact of transfers between stages | 444 | |
Other items charged to the income statement | 696 | |
Charge to the income statement (note 13) | 1,140 | |
Advances written off | (1,605) | |
Disposal of businesses | (79) | [1] |
Recoveries of advances written off in previous years | 553 | |
Discount unwind | (63) | |
Ending Balance | 1,570 | |
Stage 3 [member] | Drawn balance [member] | Stage 1 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (5) | |
Stage 3 [member] | Drawn balance [member] | Stage 2 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (39) | |
Stage 3 [member] | Drawn balance [member] | Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | 163 | |
Stage 3 [member] | Drawn balance [member] | Impact of transfers between stages [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | 325 | |
Stage 3 [member] | Undrawn balances [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Exchange and other adjustments | 12 | |
Impact of transfers between stages | 2 | |
Other items charged to the income statement | (8) | |
Charge to the income statement (note 13) | (6) | |
Ending Balance | 6 | |
Stage 3 [member] | Undrawn balances [member] | Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | 7 | |
Stage 3 [member] | Undrawn balances [member] | Impact of transfers between stages [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impact of transfers between stages | (5) | |
Purchased or originated credit-impaired [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 78 | |
Purchased or originated credit-impaired [member] | Drawn balance [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Beginning Balance | 32 | |
Disposal of businesses | [1] | |
Recoveries of advances written off in previous years | 27 | |
Discount unwind | 19 | |
Ending Balance | 78 | |
Loans and Advances to Banks [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 2 | |
Loans and Advances to Banks [Member] | Stage 1 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 2 | |
Loans and advances to customers [Member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 3,150 | |
Loans and advances to customers [Member] | Stage 1 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 525 | |
Loans and advances to customers [Member] | Stage 2 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 994 | |
Loans and advances to customers [Member] | Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 1,553 | |
Loans and advances to customers [Member] | Purchased or originated credit-impaired [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 78 | |
Debt securities [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 6 | |
Debt securities [member] | Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 6 | |
Financial assets at amortised cost, class [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 3,158 | |
Financial assets at amortised cost, class [member] | Stage 1 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 527 | |
Financial assets at amortised cost, class [member] | Stage 2 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 994 | |
Financial assets at amortised cost, class [member] | Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 1,559 | |
Financial assets at amortised cost, class [member] | Purchased or originated credit-impaired [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 78 | |
Other assets [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 11 | |
Other assets [member] | Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 11 | |
Loan commitments and financial guarantees [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 193 | |
Loan commitments and financial guarantees [member] | Stage 1 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 123 | |
Loan commitments and financial guarantees [member] | Stage 2 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | 64 | |
Loan commitments and financial guarantees [member] | Stage 3 [member] | ||
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of movement in the allowance for impairment losses [Line Items] | ||
Impairment loss recognised in profit or loss | £ 6 | |
[1] | Reflects the sale of the Group's Irish mortgage portfolio. |
ALLOWANCE FOR IMPAIRMENT LOSS_5
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of Asset Impairment Charges - Accumulated impairment [member] £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of Asset Impairment Charges [Line Items] | |
Balances | £ 937 |
Financial assets at fair value through other comprehensive income | (14) |
Drawn balance [member] | |
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of Asset Impairment Charges [Line Items] | |
Balances | 1,024 |
Undrawn balances [member] | |
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Disclosure of Asset Impairment Charges [Line Items] | |
Balances | £ (73) |
ALLOWANCE FOR IMPAIRMENT LOSS_6
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Schedule of Allowance for Impairment Losses on Loans and Receivables - Accumulated impairment [member] - Previously stated [member] £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Schedule of Allowance for Impairment Losses on Loans and Receivables [Line Items] | |
Beginning Balance | £ 2,488 |
Exchange and other adjustments | 132 |
Advances written off | (1,543) |
Recoveries of advances written off in previous years | 482 |
Unwinding of discount | (23) |
Charge (release) to the income statement (note 13) | 691 |
Ending Balance | 2,227 |
Loans and advances to customers [Member] | |
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Schedule of Allowance for Impairment Losses on Loans and Receivables [Line Items] | |
Beginning Balance | 2,412 |
Exchange and other adjustments | 132 |
Advances written off | (1,499) |
Recoveries of advances written off in previous years | 482 |
Unwinding of discount | (23) |
Charge (release) to the income statement (note 13) | 697 |
Ending Balance | 2,201 |
Debt securities [member] | |
ALLOWANCE FOR IMPAIRMENT LOSSES (Details) - Schedule of Allowance for Impairment Losses on Loans and Receivables [Line Items] | |
Beginning Balance | 76 |
Advances written off | (44) |
Charge (release) to the income statement (note 13) | (6) |
Ending Balance | £ 26 |
FINANCIAL ASSETS AT FAIR VALU_7
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Details) - Schedule of Financial Assets At Fair Value Through Other Comprehensive Income - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt securities: | ||
Government securities | £ 18,971 | £ 34,708 |
Bank and building society certificates of deposit | 118 | 167 |
Asset-backed securities: | ||
Mortgage-backed securities | 120 | 2,381 |
Other asset-backed securities | 131 | 467 |
Corporate and other debt securities | 5,151 | 4,615 |
24,491 | 42,338 | |
Treasury and other bills | 303 | |
Equity shares | 21 | 579 |
Total financial assets at fair value through other comprehensive income | £ 24,815 | £ 42,917 |
AVAILABLE-FOR-SALE FINANCIAL _3
AVAILABLE-FOR-SALE FINANCIAL ASSETS (Details) - Schedule of Available-For-Sale Financial Assets - Financial assets available-for-sale, category [member] £ in Millions | Dec. 31, 2017GBP (£) |
Debt securities: | |
Government securities | £ 34,708 |
Bank and building society certificates of deposit | 167 |
Asset-backed securities: | |
Mortgage-backed securities | 1,156 |
Other asset-backed securities | 255 |
Corporate and other debt securities | 4,615 |
40,901 | |
Equity shares | 1,197 |
Total available-for-sale financial assets | £ 42,098 |
GOODWILL (Details)
GOODWILL (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
GOODWILL (Details) [Line Items] | |||
Goodwill | £ 2,310 | £ 2,310 | £ 2,016 |
Scottish Widows [member] | |||
GOODWILL (Details) [Line Items] | |||
Goodwill | £ 1,836 | £ 1,836 | |
Percentage of entity goodwill | 79.00% | 79.00% | |
MBNA Limited [Member] | |||
GOODWILL (Details) [Line Items] | |||
Goodwill | £ 302 | £ 302 | |
Percentage of entity goodwill | 13.00% | 13.00% | |
Motor Finance [member] | |||
GOODWILL (Details) [Line Items] | |||
Goodwill | £ 170 | £ 170 | |
Percentage of entity goodwill | 7.00% | 7.00% |
GOODWILL (Details) - Schedule o
GOODWILL (Details) - Schedule of Goodwill - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
GOODWILL (Details) - Schedule of Goodwill [Line Items] | |||
Beginning Balance | £ 2,310 | £ 2,016 | |
Acquisition of businesses | 302 | ||
Impairment charged to the income statement (note 11) | (8) | ||
Ending Balance | 2,310 | 2,310 | |
Cost [Member] | |||
GOODWILL (Details) - Schedule of Goodwill [Line Items] | |||
Beginning Balance | [1] | 2,664 | |
Ending Balance | [1] | 2,664 | 2,664 |
Accumulated impairment losses [Member] | |||
GOODWILL (Details) - Schedule of Goodwill [Line Items] | |||
Beginning Balance | (354) | ||
Ending Balance | £ (354) | £ (354) | |
[1] | For acquisitions made prior to 1 January 2004, the date of transition to IFRS, cost is included net of amounts amortised up to 31 December 2003. |
VALUE OF IN-FORCE BUSINESS (Det
VALUE OF IN-FORCE BUSINESS (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
VALUE OF IN-FORCE BUSINESS (Details) [Line Items] | ||
Estimated Illiquidity Premium | 128.00% | 114.00% |
OEIC [member] | ||
VALUE OF IN-FORCE BUSINESS (Details) [Line Items] | ||
AcquiredValueOfNonParticipatingInvestmentContract | £ 167 | £ 185 |
VALUE OF IN-FORCE BUSINESS (D_2
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Value of In-Force Non-Annuity Business [Member] | Bottom of range [member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 0.00% | 0.00% |
Value of In-Force Non-Annuity Business [Member] | Top of range [member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 4.05% | 4.20% |
Value of In-Force Annuity Business [Member] | Bottom of range [member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 1.28% | 1.14% |
Value of In-Force Annuity Business [Member] | Top of range [member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 5.33% | 5.34% |
Financial Options and Guarantees [Member] | Bottom of range [member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 0.00% | 0.00% |
Financial Options and Guarantees [Member] | Top of range [member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Risk-free rate | [1] | 4.05% | 4.20% |
Retail Price [Member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Inflation | 3.43% | 3.43% | |
Expense [Member] | |||
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Range of Yields and Other Key Assumptions [Line Items] | |||
Inflation | 3.75% | 3.67% | |
[1] | All risk-free rates are quoted as the range of rates implied by the relevant forward swap curve. |
VALUE OF IN-FORCE BUSINESS (D_3
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Value of In-Force Business - In-Force [Member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Value of In-Force Business [Line Items] | ||
Acquired value of in-force non-participating investment contracts | £ 271 | £ 306 |
Value of in-force insurance and investment contracts | 4,491 | 4,533 |
Total value of in-force business | £ 4,762 | £ 4,839 |
VALUE OF IN-FORCE BUSINESS (D_4
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Acquired Value of In-Force Non-Participating Investment Contracts - Life and Annuity Insurance Product Line [Member] - In-Force [Member] - Nonparticipating Life Insurance Contract [Member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Acquired Value of In-Force Non-Participating Investment Contracts [Line Items] | ||
Beginning Balance | £ 306 | £ 340 |
Acquisition of business | 5 | |
Amortisation taken to income statement (note 11) | (40) | (34) |
Ending Balance | £ 271 | £ 306 |
VALUE OF IN-FORCE BUSINESS (D_5
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Value of In-Force Insurance and Participating Investment Contracts - Life and Annuity Insurance Product Line [Member] - Participating Life Insurance Contract [Member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
VALUE OF IN-FORCE BUSINESS (Details) - Schedule of Value of In-Force Insurance and Participating Investment Contracts [Line Items] | ||
Beginning Balance | £ 4,533 | £ 4,702 |
Exchange and other adjustments | 13 | (4) |
Movements in the year: | ||
Movements in the year | (55) | (165) |
Existing business: | ||
Ending Balance | 4,491 | 4,533 |
New business [Member] | ||
Movements in the year: | ||
Movements in the year | 675 | 348 |
Expected return [Member] | ||
Movements in the year: | ||
Movements in the year | (304) | (318) |
Experience variances [Member] | ||
Movements in the year: | ||
Movements in the year | (122) | (226) |
Assumption changes [Member] | ||
Movements in the year: | ||
Movements in the year | (67) | (238) |
Economic variance [Member] | ||
Movements in the year: | ||
Movements in the year | £ (237) | £ 269 |
OTHER INTANGIBLE ASSETS (Detail
OTHER INTANGIBLE ASSETS (Details) £ in Millions | Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) |
Disclosure of intangible assets [text block] [Abstract] | ||
Brand names | £ 380 | £ 380 |
Remaining amortisation period of intangible assets material to entity | 9 |
OTHER INTANGIBLE ASSETS (Deta_2
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | £ 2,835 | |
End Balance | 3,347 | £ 2,835 |
Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 7,861 | 6,386 |
Acquisition of businesses | 702 | |
Additions | 1,046 | 850 |
Disposals | (70) | (77) |
End Balance | 8,837 | 7,861 |
Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 5,026 | 4,705 |
Charge for the year | 513 | 392 |
Disposals | (49) | (71) |
End Balance | 5,490 | 5,026 |
Brand names [member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 403 | |
End Balance | 380 | 403 |
Brand names [member] | Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 596 | 596 |
End Balance | 596 | 596 |
Brand names [member] | Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 193 | 171 |
Charge for the year | 23 | 22 |
End Balance | 216 | 193 |
Core Deposit Intangible [Member] | Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 2,770 | 2,770 |
End Balance | 2,770 | 2,770 |
Core Deposit Intangible [Member] | Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 2,770 | 2,757 |
Charge for the year | 13 | |
End Balance | 2,770 | 2,770 |
Purchased Credit Card Relationships [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 662 | |
End Balance | 591 | 662 |
Purchased Credit Card Relationships [Member] | Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 1,017 | 315 |
Acquisition of businesses | 702 | |
Disposals | (15) | |
End Balance | 1,002 | 1,017 |
Purchased Credit Card Relationships [Member] | Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 355 | 311 |
Charge for the year | 71 | 44 |
Disposals | (15) | |
End Balance | 411 | 355 |
Customer-related intangible assets [member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 19 | |
End Balance | 19 | |
Customer-related intangible assets [member] | Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 538 | 538 |
End Balance | 538 | 538 |
Customer-related intangible assets [member] | Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 519 | 499 |
Charge for the year | 19 | 20 |
End Balance | 538 | 519 |
Computer software [member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 1,751 | |
End Balance | 2,376 | 1,751 |
Computer software [member] | Cost [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 2,940 | 2,167 |
Additions | 1,046 | 850 |
Disposals | (55) | (77) |
End Balance | 3,931 | 2,940 |
Computer software [member] | Accumulated amortisation [Member] | ||
OTHER INTANGIBLE ASSETS (Details) - Schedule of Other Intangible Assets [Line Items] | ||
Beginning Balance | 1,189 | 967 |
Charge for the year | 400 | 293 |
Disposals | (34) | (71) |
End Balance | £ 1,555 | £ 1,189 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2017GBP (£) | |
Disclosure of property, plant and equipment [text block] [Abstract] | |||
Rental income | £ 197 | £ 213 | |
Direct operating expense from investment property generating rental income | 23 | 24 | |
Capital expenditure contracted for but not recognised | 33 | 21 | |
Contingent rents recognised as income, classified as operating lease | $ 0 | 0 | |
Expected future minimum sublease payments receivable under non-cancellable subleases, classified as operating lease | £ 60 | £ 71 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | £ 12,727 | ||
Expenditure on investment properties (see below) | 143 | £ 209 | |
Change in fair value of investment properties (note 7) | (139) | (230) | £ 83 |
Ending Balance | 12,300 | 12,727 | |
Gross carrying amount [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 17,086 | 18,485 | |
Exchange and other adjustments | 5 | (81) | |
Acquisition of businesses | 6 | ||
Additions | 2,346 | 2,714 | |
Expenditure on investment properties (see below) | 143 | 209 | |
Change in fair value of investment properties (note 7) | 139 | 230 | |
Disposals | (2,972) | (4,477) | |
Ending Balance | 16,747 | 17,086 | 18,485 |
Accumulated depreciation, amortisation and impairment [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 4,359 | 5,513 | |
Exchange and other adjustments | (1) | (51) | |
Depreciation charge for the year | 1,852 | 1,944 | |
Disposals | (1,763) | (3,047) | |
Ending Balance | 4,447 | 4,359 | 5,513 |
Investment property [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 3,699 | ||
Ending Balance | 3,770 | 3,699 | |
Investment property [member] | Gross carrying amount [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 3,699 | 3,764 | |
Expenditure on investment properties (see below) | 143 | 209 | |
Change in fair value of investment properties (note 7) | 139 | 230 | |
Disposals | (211) | (504) | |
Ending Balance | 3,770 | 3,699 | 3,764 |
Buildings [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 1,063 | ||
Ending Balance | 1,000 | 1,063 | |
Buildings [member] | Gross carrying amount [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 1,791 | 2,550 | |
Exchange and other adjustments | (37) | ||
Acquisition of businesses | 3 | ||
Additions | 72 | 70 | |
Disposals | (647) | (795) | |
Ending Balance | 1,216 | 1,791 | 2,550 |
Buildings [member] | Accumulated depreciation, amortisation and impairment [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 728 | 1,333 | |
Exchange and other adjustments | 1 | (8) | |
Depreciation charge for the year | 121 | 125 | |
Disposals | (634) | (722) | |
Ending Balance | 216 | 728 | 1,333 |
Other property, plant and equipment [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 2,943 | ||
Ending Balance | 2,709 | 2,943 | |
Other property, plant and equipment [member] | Gross carrying amount [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 5,068 | 5,965 | |
Exchange and other adjustments | (6) | ||
Acquisition of businesses | 3 | ||
Additions | 519 | 382 | |
Disposals | (574) | (1,282) | |
Ending Balance | 5,007 | 5,068 | 5,965 |
Other property, plant and equipment [member] | Accumulated depreciation, amortisation and impairment [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 2,125 | 2,671 | |
Exchange and other adjustments | (8) | (9) | |
Depreciation charge for the year | 715 | 734 | |
Disposals | (534) | (1,271) | |
Ending Balance | 2,298 | 2,125 | 2,671 |
Property, plant and equipment under operating leases [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 5,022 | ||
Ending Balance | 4,821 | 5,022 | |
Property, plant and equipment under operating leases [member] | Gross carrying amount [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 6,528 | 6,206 | |
Exchange and other adjustments | 11 | (44) | |
Additions | 1,755 | 2,262 | |
Disposals | (1,540) | (1,896) | |
Ending Balance | 6,754 | 6,528 | 6,206 |
Property, plant and equipment under operating leases [member] | Accumulated depreciation, amortisation and impairment [member] | |||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment [Line Items] | |||
Beginning Balance | 1,506 | 1,509 | |
Exchange and other adjustments | 6 | (34) | |
Depreciation charge for the year | 1,016 | 1,085 | |
Disposals | (595) | (1,054) | |
Ending Balance | £ 1,933 | £ 1,506 | £ 1,509 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Expenditure on Investment Properties - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Expenditure on Investment Properties [Abstract] | ||
Acquisitions of new properties | £ 81 | £ 82 |
Additional expenditure on existing properties | 62 | 127 |
Expenditure on investment properties | £ 143 | £ 209 |
PROPERTY, PLANT AND EQUIPMENT_5
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Future Minimum Rentals Receivable under Non-Cancellable Operating Leases - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Future Minimum Rentals Receivable under Non-Cancellable Operating Leases [Line Items] | ||
Future minimum rentals receivable | £ 2,257 | £ 2,848 |
Not later than one year [member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Future Minimum Rentals Receivable under Non-Cancellable Operating Leases [Line Items] | ||
Future minimum rentals receivable | 1,095 | 1,301 |
Later than one year and not later than five years [member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Future Minimum Rentals Receivable under Non-Cancellable Operating Leases [Line Items] | ||
Future minimum rentals receivable | 1,156 | 1,419 |
Later than five years [member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Future Minimum Rentals Receivable under Non-Cancellable Operating Leases [Line Items] | ||
Future minimum rentals receivable | £ 6 | £ 128 |
OTHER ASSETS (Details) - Schedu
OTHER ASSETS (Details) - Schedule of Other Assets - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
OTHER ASSETS (Details) - Schedule of Other Assets [Line Items] | ||
Assets arising from reinsurance contracts held (notes 31 and 33) | £ 749 | |
Deferred acquisition and origination costs | 90 | |
Settlement balances | 743 | |
Corporate pension asset | 7,111 | |
Investments in joint ventures and associates | 91 | |
Other assets and prepayments | 3,742 | |
Total other assets | £ 12,526 | £ 12,872 |
Previously stated [member] | ||
OTHER ASSETS (Details) - Schedule of Other Assets [Line Items] | ||
Assets arising from reinsurance contracts held (notes 31 and 33) | 602 | |
Deferred acquisition and origination costs | 104 | |
Settlement balances | 720 | |
Corporate pension asset | 7,786 | |
Investments in joint ventures and associates | 65 | |
Other assets and prepayments | 4,260 | |
Total other assets | £ 13,537 |
FINANCIAL LIABILITIES AT FAIR_3
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Trading And Other Financial Liabilities At Fair Value Through Profit Or Loss [Abstract] | ||
Amount Contractually Payable On Debt Securities Held At Fair Value Through Profit Or Loss | £ 15,435 | £ 14,224 |
Difference Between The Balance Sheet Carrying Value And Amount Contractually Payable On Debt Securities Held At Fair Value Through Profit Or Loss | 8,350 | 6,412 |
Increase (decrease) in fair value measurement, liabilities | (386) | |
Increase (decrease) in fair value of financial liability, attributable to changes in credit risk of liability | £ (533) | £ 52 |
FINANCIAL LIABILITIES AT FAIR_4
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Liabilities and Fair Value Through Profit or Loss - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Liabilities and Fair Value Through Profit or Loss [Line Items] | ||
Debt securities in issue | £ 7,085 | |
Other | 11 | |
7,096 | ||
Trading liabilities: | ||
Liabilities in respect of securities sold under repurchase agreements | 21,595 | |
Other deposits | 242 | |
Short positions in securities | 1,614 | |
23,451 | ||
Financial liabilities at fair value through profit or loss | £ 30,547 | £ 50,935 |
Previously stated [member] | ||
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - Schedule of Trading and Other Financial Liabilities and Fair Value Through Profit or Loss [Line Items] | ||
Debt securities in issue | 7,812 | |
Other | 3 | |
7,815 | ||
Trading liabilities: | ||
Liabilities in respect of securities sold under repurchase agreements | 41,378 | |
Other deposits | 381 | |
Short positions in securities | 1,303 | |
43,062 | ||
Financial liabilities at fair value through profit or loss | £ 50,877 |
DEBT SECURITIES IN ISSUE (Detai
DEBT SECURITIES IN ISSUE (Details) - Schedule of Debt Securities in Issue - Before IFRS 9 impairment adjustments [member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
DEBT SECURITIES IN ISSUE (Details) - Schedule of Debt Securities in Issue [Line Items] | ||
Medium-term notes issued | £ 37,490 | £ 29,418 |
Covered bonds (note 30) | 28,194 | 26,132 |
Certificates of deposit issued | 12,020 | 9,999 |
Securitisation notes (note 30) | 5,426 | 3,660 |
Commercial paper | 8,038 | 3,241 |
Total debt securities in issue | £ 91,168 | £ 72,450 |
SECURITISATIONS AND COVERED B_3
SECURITISATIONS AND COVERED BONDS (Details) - Securitisation programme [Member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
SECURITISATIONS AND COVERED BONDS (Details) [Line Items] | ||
Securitisation Notes At Fair Value Through Profit Or Loss | £ 53 | |
Cash Deposits Held Restricted In Use To Securitisation And Covered Bonds | 4,102 | £ 3,507 |
Maximum exposure to loss from interests in structured entities | £ 88 | £ 95 |
SECURITISATIONS AND COVERED B_4
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | £ 33,673 | £ 29,792 | |
Securitisation programme [Member] | Securities lending [member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 41,674 | 35,475 | |
Securitisation programme [Member] | Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 37,180 | 25,196 | |
Covered bond programme [Member] | Securities lending [member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 36,802 | 31,989 | |
Covered bond programme [Member] | Securities lending [member] | Residential mortgage-backed [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 34,963 | 30,361 | |
Covered bond programme [Member] | Securities lending [member] | Social housing loan-backed [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 1,839 | 1,628 | |
Covered bond programme [Member] | Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 28,894 | 26,832 | |
Covered bond programme [Member] | Notes in issue [Member] | Residential mortgage-backed [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 27,694 | 25,632 | |
Covered bond programme [Member] | Notes in issue [Member] | Social housing loan-backed [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 1,200 | 1,200 | |
UK residential mortgages [Member] | Securitisation programme [Member] | Securities lending [member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 25,018 | 21,158 | |
UK residential mortgages [Member] | Securitisation programme [Member] | Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 22,485 | 14,105 | |
Commercial loans [Member] | Securitisation programme [Member] | Securities lending [member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 5,746 | 6,616 | |
Commercial loans [Member] | Securitisation programme [Member] | Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 6,577 | 7,001 | |
Credit Card Receivable [Member] | Securitisation programme [Member] | Securities lending [member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 8,060 | 7,701 | |
Credit Card Receivable [Member] | Securitisation programme [Member] | Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 5,263 | 4,090 | |
Motor Vehicle Finance [Member] | Securitisation programme [Member] | Securities lending [member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 2,850 | ||
Motor Vehicle Finance [Member] | Securitisation programme [Member] | Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | 2,855 | ||
Less held by the group [Member] | Securitisation programme [Member] | Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | (31,701) | (21,536) | |
Less held by the group [Member] | Covered bond programme [Member] | Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | (700) | (700) | |
Net securitisation programmes [Member] | Securitisation programme [Member] | Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | [1] | 5,479 | 3,660 |
Net covered bond programmes [Member] | Covered bond programme [Member] | Notes in issue [Member] | |||
SECURITISATIONS AND COVERED BONDS (Details) - Schedule of Securitisation and Covered Bond Programmes [Line Items] | |||
Securitisation and covered bond programmes | £ 28,194 | £ 26,132 | |
[1] | Includes 53 million (2017: nil) of securitisation notes held at fair value through profit or loss. |
LIABILITIES ARISING FROM INSU_3
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Actuarial gains (losses) arising from changes in financial assumptions, net defined benefit liability (asset) | £ 2,347 | £ (1,468) |
Provisions | 329 | 345 |
Participating Life Insurance Contract [Member] | Scottish Widows [member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Additional Costs Of Providing Guaranteed Benefits | £ 2,500 | 2,800 |
With-profit fund [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Percent of distributed profits | 90.00% | |
Non-profit fund [Member] | Participating Life Insurance Contract [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Provisions | £ 39 | 35 |
Change in persistency assumptions [Member] | Participating Life Insurance Contract [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Actuarial gains (losses) arising from changes in financial assumptions, net defined benefit liability (asset) | (135) | |
Change in current and future mortality and morbidity rates [Member] | Participating Life Insurance Contract [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Actuarial gains (losses) arising from changes in financial assumptions, net defined benefit liability (asset) | 173 | |
Changes in expenses assumptions [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Actuarial gains (losses) arising from changes in financial assumptions, net defined benefit liability (asset) | (43) | |
Current year [Member] | Participating Life Insurance Contract [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Adjustments for increase (decrease) in other current liabilities | 367 | 350 |
Previously stated [member] | Participating Life Insurance Contract [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Adjustments for increase (decrease) in other liabilities | £ 32 | £ 13 |
LIABILITIES ARISING FROM INSU_4
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts - Insurance Contracts and Participating Investment Contracts [Member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | £ 98,145 | £ 102,837 | ||
Gross amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 98,874 | 103,413 | [1] | |
Reinsurer's share of amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | (729) | [1] | (576) | [2] |
Life insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 97,562 | 102,267 | ||
Life insurance contracts [member] | Gross amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 98,278 | 102,830 | [1] | |
Life insurance contracts [member] | Reinsurer's share of amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | (716) | [1] | (563) | [2] |
Life insurance contracts [member] | Types of insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 83,650 | 86,386 | ||
Life insurance contracts [member] | Types of insurance contracts [member] | Gross amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 84,366 | 86,949 | [1] | |
Life insurance contracts [member] | Types of insurance contracts [member] | Reinsurer's share of amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | (716) | [1] | (563) | [2] |
Life insurance contracts [member] | Participating investment contracts [Member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 13,912 | 15,881 | ||
Life insurance contracts [member] | Participating investment contracts [Member] | Gross amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 13,912 | 15,881 | [1] | |
Life insurance contracts [member] | Participating investment contracts [Member] | Reinsurer's share of amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | [1] | [2] | ||
Non-life insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 583 | 570 | ||
Non-life insurance contracts [member] | Gross amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 596 | 583 | [1] | |
Non-life insurance contracts [member] | Reinsurer's share of amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | (13) | [1] | (13) | [2] |
Non-life insurance contracts [member] | Unearned premiums [Member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 329 | 345 | ||
Non-life insurance contracts [member] | Unearned premiums [Member] | Gross amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 342 | 358 | [1] | |
Non-life insurance contracts [member] | Unearned premiums [Member] | Reinsurer's share of amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | (13) | [1] | (13) | [2] |
Non-life insurance contracts [member] | Claims outstanding [Member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 254 | 225 | ||
Non-life insurance contracts [member] | Claims outstanding [Member] | Gross amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | 254 | 225 | [1] | |
Non-life insurance contracts [member] | Claims outstanding [Member] | Reinsurer's share of amount arising from insurance contracts [member] | ||||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Contracts [Line Items] | ||||
Insurance contract and participating investment contract liabilities | [1] | [2] | ||
[1] | During the year the Group has reviewed the classification of pre-2007 unitised pension savings products and as a result these products have been reclassified from insurance contracts to participating investment contracts; comparatives have been restated accordingly. | |||
[2] | Reinsurance balances are reported within other assets (note 27). |
LIABILITIES ARISING FROM INSU_5
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Types of insurance contracts [member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities [Line Items] | ||
Beginning Balance | £ 86,949 | £ 77,881 |
New business | 5,476 | 4,154 |
Changes in existing business | (8,072) | 4,928 |
Change in liabilities charged to the income statement (note 10) | (2,596) | 9,082 |
Exchange and other adjustments | 13 | (14) |
Ending Balance | 84,366 | 86,949 |
Participating investment contracts [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities [Line Items] | ||
Beginning Balance | 15,881 | 15,896 |
New business | 31 | 43 |
Changes in existing business | (2,000) | (58) |
Change in liabilities charged to the income statement (note 10) | (1,969) | (15) |
Ending Balance | 13,912 | 15,881 |
Gross amount arising from insurance contracts [member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities [Line Items] | ||
Beginning Balance | 102,830 | 93,777 |
New business | 5,507 | 4,197 |
Changes in existing business | (10,072) | 4,870 |
Change in liabilities charged to the income statement (note 10) | (4,565) | 9,067 |
Exchange and other adjustments | 13 | (14) |
Ending Balance | 98,278 | 102,830 |
Reinsurer's share of amount arising from insurance contracts [member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities [Line Items] | ||
Beginning Balance | (563) | (671) |
New business | (42) | (21) |
Changes in existing business | (111) | 129 |
Change in liabilities charged to the income statement (note 10) | (153) | 108 |
Ending Balance | (716) | (563) |
Net amount arising from insurance contracts [member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Life Insurance and Participating Contract Liabilities [Line Items] | ||
Beginning Balance | 102,267 | 93,106 |
New business | 5,465 | 4,176 |
Changes in existing business | (10,183) | 4,999 |
Change in liabilities charged to the income statement (note 10) | (4,718) | 9,175 |
Exchange and other adjustments | 13 | (14) |
Ending Balance | £ 97,562 | £ 102,267 |
LIABILITIES ARISING FROM INSU_6
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities for Insurance Contracts and Participating Investment Contracts - Discounted cash flow [member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities for Insurance Contracts and Participating Investment Contracts [Line Items] | ||
Insurance contracts | £ 84,366 | £ 86,949 |
Participating investment contracts | 13,912 | 15,881 |
Total | 98,278 | 102,830 |
With-profit fund [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities for Insurance Contracts and Participating Investment Contracts [Line Items] | ||
Insurance contracts | 7,851 | 8,946 |
Participating investment contracts | 7,438 | 8,481 |
Total | 15,289 | 17,427 |
Non-profit fund [Member] | ||
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities for Insurance Contracts and Participating Investment Contracts [Line Items] | ||
Insurance contracts | 76,515 | 78,003 |
Participating investment contracts | 6,474 | 7,400 |
Total | £ 82,989 | £ 85,403 |
LIABILITIES ARISING FROM INSU_7
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Provisions for Unearned Premiums - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Provisions for unearned premiums | ||
Gross provision at 1 January | £ 358 | £ 404 |
Change in the year | 1,422 | |
Change in provision for unearned premiums charged to income statement | (16) | (46) |
Gross provision at 31 December | 342 | 358 |
Reinsurers’ share | (13) | (13) |
Net provision at 31 December | 329 | 345 |
Increase [Member] | ||
Provisions for unearned premiums | ||
Change in the year | 681 | 724 |
Release [Member] | ||
Provisions for unearned premiums | ||
Change in the year | £ (697) | £ (770) |
LIABILITIES ARISING FROM INSU_8
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Insurance Claims Outstanding - Not expired at year end [Member] - Participating Life Insurance Contract [Member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Claims outstanding | |||
Gross claims outstanding at 1 January | £ 225 | £ 209 | |
Cash paid for claims settled in the year | (306) | (321) | |
Increase/(decrease) in liabilities charged to the income statement | [1] | 335 | 337 |
29 | 16 | ||
Gross claims outstanding at 31 December | 254 | 225 | |
Net claims outstanding at 31 December | 254 | 225 | |
Notified claims | 170 | 174 | |
Incurred but not reported | £ 84 | £ 51 | |
[1] | Of which an increase of 367 million (2017: 350 million) was in respect of current year claims and a decrease of 32 million (2017: a decrease of 13 million) was in respect of prior year claims. |
LIFE INSURANCE SENSITIVITY AN_3
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) | Dec. 31, 2018 |
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) [Line Items] | |
Long-Duration Contracts, Assumptions by Product and Guarantee, Lapse Rate | 90.00% |
Maintenance and investment expenses expected rate | 90.00% |
Adjustment To Risk-Free Rate | (0.25%) |
Guaranteed annuity option take up expected rate | 5.00% |
Long-Duration Contracts, Assumptions by Product and Guarantee, Volatility Rate | 1.00% |
Credit default spreads | 0.25% |
Allowance for illiquid premia | 0.10% |
Value of In-Force Non-Annuity Business [Member] | |
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) [Line Items] | |
Actuarial assumption of mortality rates | 95 |
Value of In-Force Annuity Business [Member] | |
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) [Line Items] | |
Actuarial assumption of mortality rates | 95 |
LIFE INSURANCE SENSITIVITY AN_4
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Non-annuitant mortality and morbidity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [1] | 5% reduction | |
Non-annuitant mortality and morbidity [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [1] | £ 22 | £ 23 |
Non-annuitant mortality and morbidity [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [1] | £ 18 | 19 |
Annuitant mortality [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [2] | 5% reduction | |
Annuitant mortality [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [2] | £ (234) | (221) |
Annuitant mortality [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [2] | £ (194) | (184) |
Lapse rates [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [3] | 10% reduction | |
Lapse rates [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [3] | £ 89 | 75 |
Lapse rates [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [3] | £ 74 | 62 |
Future maintenance and investment expenses [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [4] | 10% reduction | |
Future maintenance and investment expenses [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [4] | £ 262 | 289 |
Future maintenance and investment expenses [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [4] | £ 217 | 240 |
Risk-free rate [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [5] | 0.25% reduction | |
Risk-free rate [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [5] | £ 76 | (40) |
Risk-free rate [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [5] | £ 63 | (33) |
Guaranteed annuity option take up [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [6] | 5% addition | |
Guaranteed annuity option take up [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [6] | £ (3) | (6) |
Guaranteed annuity option take up [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [6] | £ (2) | (5) |
Equity investment volatility [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [7] | 1% addition | |
Equity investment volatility [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [7] | £ (5) | (7) |
Equity investment volatility [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [7] | £ (4) | (6) |
Widening of credit default spreads on corporate bonds [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [8] | 0.25% addition | |
Widening of credit default spreads on corporate bonds [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [8] | £ (364) | (235) |
Widening of credit default spreads on corporate bonds [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [8] | £ (303) | (195) |
Increase in illiquidity premia [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Change in variable | [9] | 0.10% addition | |
Increase in illiquidity premia [Member] | Increase (reduction) in profit before tax [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [9] | £ 153 | 145 |
Increase in illiquidity premia [Member] | Increase (reduction) in equity [Member] | |||
LIFE INSURANCE SENSITIVITY ANALYSIS (Details) - Schedule of Accounting Estimates and Judgements [Line Items] | |||
Increase (decrease) in accounting estimate | [9] | £ 127 | £ 120 |
[1] | This sensitivity shows the impact of reducing mortality and morbidity rates on non-annuity business to 95 per cent of the expected rate. | ||
[2] | This sensitivity shows the impact on the annuity and deferred annuity business of reducing mortality rates to 95 per cent of the expected rate. | ||
[3] | This sensitivity shows the impact of reducing lapse and surrender rates to 90 per cent of the expected rate. | ||
[4] | This sensitivity shows the impact of reducing maintenance expenses and investment expenses to 90 per cent of the expected rate. | ||
[5] | This sensitivity shows the impact on the value of in-force business, financial options and guarantee costs, statutory reserves and asset values of reducing the risk-free rate by 25 basis points. | ||
[6] | This sensitivity shows the impact of a flat 5 per cent addition to the expected rate. | ||
[7] | This sensitivity shows the impact of a flat 1 per cent addition to the expected rate. | ||
[8] | This sensitivity shows the impact of a 25 basis point increase in credit default spreads on corporate bonds and the corresponding reduction in market values. Swap curves, the risk-free rate and illiquidity premia are all assumed to be unchanged. | ||
[9] | This sensitivity shows the impact of a 10 basis point increase in the allowance for illiquidity premia. It assumes the overall spreads on assets are unchanged and hence market values are unchanged. Swap curves and the non-annuity risk-free rate are both assumed to be unchanged. The increased illiquidity premium increases the annuity risk-free rate. |
LIABILITIES ARISING FROM NON-_3
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Nonparticipating Life Insurance Contract [Member] | ||
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Details) [Line Items] | ||
Reinsurance assets | £ 20 | £ 26 |
LIABILITIES ARISING FROM NON-_4
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities Arising From Non-Participating Investment Contracts - Nonparticipating Life Insurance Contract [Member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
LIABILITIES ARISING FROM NON-PARTICIPATING INVESTMENT CONTRACTS (Details) - Schedule of Liabilities Arising From Non-Participating Investment Contracts [Line Items] | ||
Beginning Balance | £ 15,447 | £ 20,112 |
New business | 668 | 608 |
Changes in existing business | (2,262) | (5,273) |
Ending Balance | £ 13,853 | £ 15,447 |
OTHER LIABILITIES (Details) - S
OTHER LIABILITIES (Details) - Schedule of Other Liabilities - Before IFRS 9 impairment adjustments [member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
OTHER LIABILITIES (Details) - Schedule of Other Liabilities [Line Items] | ||
Total other liabilities | £ 19,633 | £ 20,730 |
Settlement balances [Member] | ||
OTHER LIABILITIES (Details) - Schedule of Other Liabilities [Line Items] | ||
Settlement balances | 485 | 501 |
Unitholders interest in Open Ended Investment Companies [Member] | ||
OTHER LIABILITIES (Details) - Schedule of Other Liabilities [Line Items] | ||
Unitholders’ interest in Open Ended Investment Companies | 12,933 | 14,480 |
Unallocated surplus within insurance businesses [Member] | ||
OTHER LIABILITIES (Details) - Schedule of Other Liabilities [Line Items] | ||
Unallocated surplus within insurance businesses | 382 | 390 |
Other creditors and accruals [Member] | ||
OTHER LIABILITIES (Details) - Schedule of Other Liabilities [Line Items] | ||
Other creditors and accruals | £ 5,833 | £ 5,359 |
RETIREMENT BENEFIT OBLIGATIONS
RETIREMENT BENEFIT OBLIGATIONS (Details) £ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2024GBP (£) | Dec. 31, 2023GBP (£) | Dec. 31, 2022GBP (£) | Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | Dec. 31, 2019GBP (£) | Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | Jun. 30, 2014GBP (£) | |
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Contributions to plan, net defined benefit liability (asset) | £ (1,050) | £ (868) | £ (587) | £ (630) | ||||||
Net defined benefit liability (asset) | £ 1,146 | £ 509 | (244) | |||||||
Actuarial assumption of discount rates | 2.90% | 2.59% | ||||||||
Description of asset-liability matching strategies used by plan or entity to manage risk | Asset-liability matching strategiesThe main schemes’ assets are invested in a diversifiedportfolio, consisting primarily of debt securities. The investment strategy is not static and will evolve to reflect the structureof liabilities within the schemes. Specific asset-liability matching strategies for each pension plan are independently determinedby the responsible governance body for each scheme and in consultation with the employer.A significant goal of the asset-liability matching strategiesadopted by Group schemes is to reduce volatility caused by changes in market expectations of interest rates and inflation. Inthe main schemes, this is achieved by investing scheme assets in bonds, primarily fixed interest gilts and index linked gilts,and by entering into interest rate and inflation swap arrangements. These investments are structured to take into account theprofile of scheme liabilities, and actively managed to reflect both changing market conditions and changes to the liability profile.At 31 December 2018 the asset-liability matching strategymitigated 105 per cent of the liability sensitivity to interest rate movements and 106 per cent of the liabilitysensitivity to inflation movements. In addition a small amount of interest rate sensitivity arises through holdings of corporateand other debt securities. | |||||||||
Employer contributions | £ 300 | £ 256 | £ 268 | |||||||
Percentage of reasonably possible increase in actuarial assumption | 6.81% | |||||||||
Investment Grade [Member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Defined benefit scheme fair value of scheme assets debt instruments with investment grade | £ 29,033 | £ 27,732 | ||||||||
The group's three main schemes [member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Percentage of gross defined benefit pension assets | 94.00% | 95.00% | ||||||||
The group's three main schemes [member] | Minimum [Member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Actuarial assumption of retirement age | 55 | |||||||||
Aggregated measurement [member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Triennial Funding Valuation, Aggregate Funding Deficit | £ 7,300 | |||||||||
Defined benefit plan funding level | 85.60% | 85.90% | ||||||||
Surplus (deficit) in plan | £ 5,200 | |||||||||
Contributions to plan, net defined benefit liability (asset) | £ 1,305 | £ 1,305 | £ 1,305 | £ 1,287 | £ 798 | £ 618 | £ 412 | |||
Defined benefit pension schemes [Member] | Limited liability partnerships [Member] | LLoyds Bank Pension Scheme No 1 and No 2 [Member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Net defined benefit liability (asset) | 6,700 | |||||||||
Defined benefit pension schemes [Member] | Limited liability partnerships [Member] | HBOs Final Salary Pension Scheme [Member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Net defined benefit liability (asset) | 4,600 | |||||||||
Guaranteed Minimum Pension Benefits [Member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Past service cost and gains (losses) arising from settlements, net defined benefit liability (asset) | £ 108 | |||||||||
Contractual Right to Retire Earlier [Member] | The group's three main schemes [member] | Minimum [Member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Actuarial assumption of retirement age | 50 | |||||||||
RPI [Member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Actuarial assumption of expected rates of inflation | 3.20% | 3.20% | ||||||||
CPI [Member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Actuarial assumption of expected rates of inflation | 2.15% | 2.15% | ||||||||
Men [Member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Actuarial assumption of life expectancy after retirement | 27.8 | |||||||||
Women [Member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Actuarial assumption of life expectancy after retirement | 29.4 | |||||||||
Healthcare premiums [Member] | ||||||||||
RETIREMENT BENEFIT OBLIGATIONS (Details) [Line Items] | ||||||||||
Percentage of reasonably possible increase in actuarial assumption | 6.81% |
RETIREMENT BENEFIT OBLIGATION_2
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefit Charges to Income Statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Charge to the income statement | |||
Defined benefit plans | £ (401) | £ (362) | |
Total charge to the income statement (note 11) | 705 | 625 | £ 555 |
Defined benefit pension schemes [Member] | |||
Charge to the income statement | |||
Defined benefit plans | 401 | 362 | 279 |
Other post-retirement benefit schemes [Member] | |||
Charge to the income statement | |||
Defined benefit plans | 4 | 7 | 8 |
Defined Benefit Schemes [Member] | |||
Charge to the income statement | |||
Defined benefit plans | 405 | 369 | 287 |
Defined contribution pension schemes [Member] | |||
Charge to the income statement | |||
Defined benefit plans | (401) | (362) | (279) |
Defined contribution pension schemes | £ 300 | £ 256 | £ 268 |
RETIREMENT BENEFIT OBLIGATION_3
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognised in Balance Sheet - Amount Recognized [Member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Recognised in Balance Sheet [Line Items] | ||
Retirement benefit assets | £ 1,267 | £ 723 |
Retirement benefit obligations | (245) | (358) |
Total amounts recognised in the balance sheet | £ 1,022 | £ 365 |
RETIREMENT BENEFIT OBLIGATION_4
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefit Total Amounts Recognized in Balance Sheet - Amount Recognized [Member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefit Total Amounts Recognized in Balance Sheet [Line Items] | ||
Defined benefit schemes | £ 1,022 | £ 365 |
Defined benefit pension schemes [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefit Total Amounts Recognized in Balance Sheet [Line Items] | ||
Defined benefit schemes | 1,146 | 509 |
Other post-retirement benefit schemes [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefit Total Amounts Recognized in Balance Sheet [Line Items] | ||
Defined benefit schemes | £ (124) | £ (144) |
RETIREMENT BENEFIT OBLIGATION_5
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Amounts Recognized in Balance Sheet - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Amounts Recognized in Balance Sheet [Line Items] | |||
Present value of funded obligations | £ (41,092) | £ (44,384) | £ (45,822) |
Net amount recognised in the balance sheet | 1,146 | 509 | |
Net amounts presented in the balance sheet [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefits Amounts Recognized in Balance Sheet [Line Items] | |||
Present value of funded obligations | (41,092) | (44,384) | |
Fair value of scheme assets | £ 42,238 | £ 44,893 |
RETIREMENT BENEFIT OBLIGATION_6
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Retirement Benefit Net Amounts Recognized in Balance Sheet - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net amount recognised in the balance sheet | ||
Beginning Balance | £ 509 | £ (244) |
Net defined benefit pension charge | (401) | (362) |
Actuarial gains (losses) on defined benefit obligation | 1,707 | (731) |
Return on plan assets | (1,558) | 1,267 |
Employer contributions | 863 | 580 |
Exchange and other adjustments | 26 | (1) |
Ending Balance | £ 1,146 | £ 509 |
RETIREMENT BENEFIT OBLIGATION_7
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Movements in Defined Benefit Obligation - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Movements in the defined benefit obligation | ||
At 1 January | £ (44,384) | £ (45,822) |
Current service cost | (261) | (295) |
Interest expense | (1,130) | (1,241) |
Remeasurements: | ||
Actuarial losses – experience | (439) | (347) |
Actuarial (losses) gains – demographic assumptions | (201) | 1,084 |
Actuarial gains (losses) – financial assumptions | 2,347 | (1,468) |
Benefits paid | 3,079 | 3,714 |
Past service cost | (108) | (14) |
Curtailments | (12) | (10) |
Settlements | 17 | 15 |
At 31 December | £ (41,092) | £ (44,384) |
RETIREMENT BENEFIT OBLIGATION_8
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Analysis of Defined Benefit Obligations - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Analysis of the defined benefit obligation: | |||
Defined benefit obligation | £ (41,092) | £ (44,384) | £ (45,822) |
Active members [Member] | |||
Analysis of the defined benefit obligation: | |||
Defined benefit obligation | (6,448) | (7,947) | |
Deferred members [Member] | |||
Analysis of the defined benefit obligation: | |||
Defined benefit obligation | (14,208) | (15,823) | |
Pensioners [Member] | |||
Analysis of the defined benefit obligation: | |||
Defined benefit obligation | (18,885) | (19,014) | |
Dependants [Member] | |||
Analysis of the defined benefit obligation: | |||
Defined benefit obligation | £ (1,551) | £ (1,600) |
RETIREMENT BENEFIT OBLIGATION_9
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Change in Fair Value of Scheme Assets - Postemployment Retirement Benefits [Member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in the fair value of scheme assets | ||
Beginning Balance | £ 44,893 | £ 45,578 |
Return on plan assets excluding amounts included in interest income | (1,558) | 1,267 |
Interest income | 1,152 | 1,242 |
Employer contributions | 863 | 580 |
Benefits paid | (3,079) | (3,714) |
Settlements | (18) | (18) |
Administrative costs paid | (41) | (41) |
Exchange and other adjustments | 26 | (1) |
Ending Balance | £ 42,238 | £ 44,893 |
RETIREMENT BENEFIT OBLIGATIO_10
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Defined Benefit Pension Expense - Defined contribution pension schemes [Member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Defined Benefit Pension Expense [Line Items] | |||
Current service cost | £ 261 | £ 295 | £ 257 |
Net interest amount | (22) | (1) | (40) |
Past service credits and curtailments | 12 | 10 | |
Settlements | 1 | 3 | 6 |
Past service cost – plan amendments | 108 | 14 | 20 |
Plan administration costs incurred during the year | 41 | 41 | 36 |
Total defined benefit pension expense | £ 401 | £ 362 | £ 279 |
RETIREMENT BENEFIT OBLIGATIO_11
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Composition of Scheme Assets - Retirement Scheme Assets [Member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Composition of Scheme Assets [Line Items] | |||
Equity instruments | £ 859 | £ 851 | |
Fixed interest government bonds | [1] | 7,449 | 5,344 |
Index-linked government bonds | [1] | 16,477 | 17,439 |
Corporate and other debt securities | [1] | 8,813 | 6,903 |
Asset-backed securities | [1] | 138 | 121 |
Debt instruments | [1] | 32,877 | 29,807 |
Property | 556 | 544 | |
Pooled investment vehicles | 15,072 | 17,380 | |
Money market instruments, cash, derivatives and other assets and liabilities | (7,126) | (3,689) | |
At 31 December | 42,238 | 44,893 | |
Quoted [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Composition of Scheme Assets [Line Items] | |||
Equity instruments | 637 | 846 | |
Fixed interest government bonds | [1] | 7,449 | 5,344 |
Index-linked government bonds | [1] | 16,477 | 17,439 |
Corporate and other debt securities | [1] | 8,813 | 6,903 |
Asset-backed securities | [1] | 138 | 121 |
Debt instruments | [1] | 32,877 | 29,807 |
Pooled investment vehicles | 4,578 | 3,937 | |
Money market instruments, cash, derivatives and other assets and liabilities | (283) | 1,501 | |
At 31 December | 37,809 | 36,091 | |
Unquoted [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Composition of Scheme Assets [Line Items] | |||
Equity instruments | 222 | 5 | |
Fixed interest government bonds | [1] | ||
Index-linked government bonds | [1] | ||
Corporate and other debt securities | [1] | ||
Asset-backed securities | [1] | ||
Debt instruments | [1] | ||
Property | 556 | 544 | |
Pooled investment vehicles | 10,494 | 13,443 | |
Money market instruments, cash, derivatives and other assets and liabilities | (6,843) | (5,190) | |
At 31 December | £ 4,429 | £ 8,802 | |
[1] | Of the total debt instruments, 29,033 million (31 December 2017: 27,732 million) were investment grade (credit ratings equal to or better than 'BBB'). |
RETIREMENT BENEFIT OBLIGATIO_12
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | £ 15,072 | £ 17,380 |
Equity Funds [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | 2,329 | 2,669 |
Hedge and mutual funds [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | 2,487 | 2,377 |
Liquidity funds [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | 2,329 | 2,877 |
Bond and debt funds [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | 313 | 1,830 |
Other [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Pension Scheme's Pooled Investment Vehicles [Line Items] | ||
Pooled investment vehicle | £ 7,614 | £ 7,627 |
RETIREMENT BENEFIT OBLIGATIO_13
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Principal Actuarial and Financial Assumptions Used in Valuation of Defined Benefit Pension Schemes | Dec. 31, 2018 | Dec. 31, 2017 |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Principal Actuarial and Financial Assumptions Used in Valuation of Defined Benefit Pension Schemes [Line Items] | ||
Discount rate | 2.90% | 2.59% |
Rate of inflation: | ||
Rate of salary increases | 0.00% | 0.00% |
Weighted-average rate of increase for pensions in payment | 2.73% | 2.73% |
RPI [Member] | ||
Rate of inflation: | ||
Price Index | 3.20% | 3.20% |
CPI [Member] | ||
Rate of inflation: | ||
Price Index | 2.15% | 2.15% |
RETIREMENT BENEFIT OBLIGATIO_14
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Benefit Plan Member Life Expectancy | Dec. 31, 2018 | Dec. 31, 2017 |
Men [Member] | On Valuation Date [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Benefit Plan Member Life Expectancy [Line Items] | ||
Members | 27.8 | 27.9 |
Men [Member] | 15 Years After Valuation Date [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Benefit Plan Member Life Expectancy [Line Items] | ||
Members | 28.8 | 28.9 |
Women [Member] | On Valuation Date [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Benefit Plan Member Life Expectancy [Line Items] | ||
Members | 29.4 | 29.5 |
Women [Member] | 15 Years After Valuation Date [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Benefit Plan Member Life Expectancy [Line Items] | ||
Members | 30.6 | 30.7 |
RETIREMENT BENEFIT OBLIGATIO_15
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Increase of 0.1 percent [Member] | Actuarial assumption of expected rates of inflation [member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | [1] | £ 14 | £ 16 |
Increase (decrease) in the net defined benefit pension scheme liability | [1] | 410 | 472 |
Increase of 0.1 percent [Member] | Actuarial assumption of discount rates [member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | [2] | (27) | (28) |
Increase (decrease) in the net defined benefit pension scheme liability | [2] | (670) | (773) |
Decrease of 0.1 percent [Member] | Actuarial assumption of expected rates of inflation [member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | [1] | (14) | (15) |
Increase (decrease) in the net defined benefit pension scheme liability | [1] | (395) | (453) |
Decrease of 0.1 percent [Member] | Actuarial assumption of discount rates [member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | [2] | 25 | 26 |
Increase (decrease) in the net defined benefit pension scheme liability | [2] | 686 | 794 |
Increase of one year [Member] | Actuarial assumption of expected life expectancy of members [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | 43 | 44 | |
Increase (decrease) in the net defined benefit pension scheme liability | 1,299 | 1,404 | |
Decrease of one year [Member] | Actuarial assumption of expected life expectancy of members [Member] | |||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Possible Alternative Assumptions Used in Valuations of Defined Benefit Pension Schemes [Line Items] | |||
Increase (decrease) in the income statement charge | (42) | (41) | |
Increase (decrease) in the net defined benefit pension scheme liability | £ (1,257) | £ (1,357) | |
[1] | At 31 December 2018, the assumed rate of RPI inflation is 3.20 per cent and CPI inflation 2.15 per cent (2017: RPI 3.20 per cent and CPI 2.15 per cent). | ||
[2] | At 31 December 2018, the assumed discount rate is 2.90 per cent (2017: 2.59 per cent). |
RETIREMENT BENEFIT OBLIGATIO_16
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Weighted Average Duration of Defined Benefit Pension Obligations | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Weighted Average Duration of Defined Benefit Pension Obligations [Abstract] | ||
Duration of the defined benefit obligation | 18 | 19 |
RETIREMENT BENEFIT OBLIGATIO_17
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Maturity Analysis of Benefits Expected To Be Paid - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Paid Within 12 Months [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Maturity Analysis of Benefits Expected To Be Paid [Line Items] | ||
Benefits expected to be paid | £ 1,225 | £ 1,174 |
Paid Between 1 and 2 Years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Maturity Analysis of Benefits Expected To Be Paid [Line Items] | ||
Benefits expected to be paid | 1,299 | 1,235 |
Paid Between 2 and 5 Years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Maturity Analysis of Benefits Expected To Be Paid [Line Items] | ||
Benefits expected to be paid | 4,303 | 4,089 |
Paid Between 5 and 10 Years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Maturity Analysis of Benefits Expected To Be Paid [Line Items] | ||
Benefits expected to be paid | 8,305 | 8,082 |
Paid Between 10 and 15 Years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Maturity Analysis of Benefits Expected To Be Paid [Line Items] | ||
Benefits expected to be paid | 9,416 | 9,360 |
Paid Between 15 and 25 Years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Maturity Analysis of Benefits Expected To Be Paid [Line Items] | ||
Benefits expected to be paid | 18,417 | 19,044 |
Paid Between 25 and 35 Years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Maturity Analysis of Benefits Expected To Be Paid [Line Items] | ||
Benefits expected to be paid | 15,631 | 16,735 |
Paid Between 35 and 45 Years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Maturity Analysis of Benefits Expected To Be Paid [Line Items] | ||
Benefits expected to be paid | 9,924 | 11,156 |
Paid In More Than 45 Years [Member] | ||
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Maturity Analysis of Benefits Expected To Be Paid [Line Items] | ||
Benefits expected to be paid | £ 4,270 | £ 5,219 |
RETIREMENT BENEFIT OBLIGATIO_18
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Movements in Oher Post-Retirement Benefits Obligation - Other Postretirement Benefits Plan [Member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
RETIREMENT BENEFIT OBLIGATIONS (Details) - Schedule of Movements in Oher Post-Retirement Benefits Obligation [Line Items] | ||
Beginning Balance | £ (144) | £ (236) |
Actuarial gains | 18 | 92 |
Insurance premiums paid | 5 | 7 |
Charge for the year | (4) | (7) |
Exchange and other adjustments | 1 | |
Ending Balance | £ (124) | £ (144) |
DEFERRED TAX (Details)
DEFERRED TAX (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DEFERRED TAX (Details) [Line Items] | |||
Applicable tax rate | 19.00% | 19.25% | 20.00% |
Income Statement, Effect of remeasurement of deferred tax utilisation | £ 32 | ||
Other Comphrensive Income, Effect of remeasurement of deferred tax utilisation | (19) | ||
Increase (decrease) in deferred tax expense (income) due to rate regulation | (41) | ||
Life assurance [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 371 | £ 470 | |
UK [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 78 | 76 | |
Current tax expense (income) | 438 | ||
Foreign Tax Authority [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 46 | 46 | |
20 Years [Member] | Trading Losses [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | £ 36 | £ 35 | |
Deferred Tax Assets, Expiration Term | 20 years | 20 years | |
Trading Losses [Member] | Trading Losses [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | £ 53 | £ 56 | |
No Expiration [Member] | Trading Losses [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Deferred Tax Assets, Expiration Term | 0 years | 0 years | |
Current year [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Applicable tax rate | 19.00% | ||
1 April 2020 [Member] | |||
DEFERRED TAX (Details) [Line Items] | |||
Applicable tax rate | 17.00% |
DEFERRED TAX (Details) - Schedu
DEFERRED TAX (Details) - Schedule of Statutory Position and Tax Disclosure - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statutory position [Member] | ||
DEFERRED TAX (Details) - Schedule of Statutory Position and Tax Disclosure [Line Items] | ||
Deferred tax assets | £ 2,453 | £ 2,284 |
Asset at 31 December | 2,453 | 2,284 |
Tax disclosure [Member] | ||
DEFERRED TAX (Details) - Schedule of Statutory Position and Tax Disclosure [Line Items] | ||
Deferred tax assets | 4,731 | 4,989 |
Deferred tax liabilities | (2,278) | (2,705) |
Asset at 31 December | £ 2,453 | £ 2,284 |
DEFERRED TAX (Details) - Moveme
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets - Prior to offsetting of balances within same taxing jurisdiction [Member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | £ 5,314 | ||
(Charge) credit to the income statement | (348) | ||
(Charge) credit to other comprehensive income | (230) | ||
Other (charge) credit to equity | (5) | ||
Deferred Tax Assets, Ending Balance | 4,731 | £ 5,314 | |
Deferred Tax Liabilities, Beginning Balance | (2,705) | (2,928) | |
(Charge) credit to the income statement | 192 | 327 | |
(Charge) credit to other comprehensive income | 229 | 55 | |
Exchange and other adjustments | 6 | ||
Impact of acquisitions and disposals | (159) | ||
Deferred Tax Liabilities, Ending Balance | (2,278) | (2,705) | |
Previously stated [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 4,989 | 5,634 | |
(Charge) credit to the income statement | (805) | ||
(Charge) credit to other comprehensive income | 174 | ||
Other (charge) credit to equity | (17) | ||
Impact of acquisitions and disposals on assets | 3 | ||
Deferred Tax Assets, Ending Balance | 4,989 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 325 | ||
Deferred Tax Assets, Ending Balance | 325 | ||
Tax Losses [Member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 4,034 | ||
(Charge) credit to the income statement | (256) | ||
Deferred Tax Assets, Ending Balance | 3,778 | 4,034 | |
Tax Losses [Member] | Previously stated [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 4,034 | 4,298 | |
(Charge) credit to the income statement | (264) | ||
Deferred Tax Assets, Ending Balance | 4,034 | ||
Property, Plant and Equipment [Member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 743 | ||
(Charge) credit to the income statement | (100) | ||
Deferred Tax Assets, Ending Balance | 643 | 743 | |
Property, Plant and Equipment [Member] | Previously stated [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 743 | 969 | |
(Charge) credit to the income statement | (226) | ||
Deferred Tax Assets, Ending Balance | 743 | ||
Pension defined benefit plans [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 90 | ||
(Charge) credit to the income statement | 64 | ||
(Charge) credit to other comprehensive income | (92) | ||
Deferred Tax Assets, Ending Balance | 62 | 90 | |
Deferred Tax Liabilities, Beginning Balance | (181) | (85) | |
(Charge) credit to the income statement | (67) | 199 | |
(Charge) credit to other comprehensive income | (25) | (295) | |
Deferred Tax Liabilities, Ending Balance | (273) | (181) | |
Pension defined benefit plans [member] | Previously stated [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 90 | 228 | |
(Charge) credit to the income statement | (287) | ||
(Charge) credit to other comprehensive income | 149 | ||
Deferred Tax Assets, Ending Balance | 90 | ||
Other provisions [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 380 | ||
(Charge) credit to the income statement | (45) | ||
(Charge) credit to other comprehensive income | (138) | ||
Deferred Tax Assets, Ending Balance | 197 | 380 | |
Other provisions [member] | Previously stated [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 58 | 40 | |
(Charge) credit to the income statement | (7) | ||
(Charge) credit to other comprehensive income | 25 | ||
Deferred Tax Assets, Ending Balance | 58 | ||
Other provisions [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 322 | ||
Deferred Tax Assets, Ending Balance | 322 | ||
Share-based payment arrangements [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 51 | ||
(Charge) credit to the income statement | (6) | ||
Other (charge) credit to equity | (5) | ||
Deferred Tax Assets, Ending Balance | 40 | 51 | |
Share-based payment arrangements [member] | Previously stated [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 51 | 61 | |
(Charge) credit to the income statement | 7 | ||
Other (charge) credit to equity | (17) | ||
Deferred Tax Assets, Ending Balance | 51 | ||
Other temporary differences [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 16 | ||
(Charge) credit to the income statement | (5) | ||
Deferred Tax Assets, Ending Balance | 11 | 16 | |
Deferred Tax Liabilities, Beginning Balance | (140) | (254) | |
(Charge) credit to the income statement | 7 | 116 | |
Exchange and other adjustments | 6 | ||
Impact of acquisitions and disposals | (2) | ||
Deferred Tax Liabilities, Ending Balance | (127) | (140) | |
Other temporary differences [member] | Previously stated [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 13 | 38 | |
(Charge) credit to the income statement | (28) | ||
Impact of acquisitions and disposals on assets | 3 | ||
Deferred Tax Assets, Ending Balance | 13 | ||
Other temporary differences [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Assets, Beginning Balance | 3 | ||
Deferred Tax Assets, Ending Balance | 3 | ||
Long-term assurance business [Member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Liabilities, Beginning Balance | (799) | (914) | |
(Charge) credit to the income statement | 162 | 115 | |
Deferred Tax Liabilities, Ending Balance | (637) | (799) | |
Acquisition Fair Value [Member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Liabilities, Beginning Balance | (879) | (798) | |
(Charge) credit to the income statement | 142 | 76 | |
Impact of acquisitions and disposals | (157) | ||
Deferred Tax Liabilities, Ending Balance | (737) | (879) | |
Derivatives [member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Liabilities, Beginning Balance | (499) | (643) | |
(Charge) credit to the income statement | (19) | (139) | |
(Charge) credit to other comprehensive income | 113 | 283 | |
Deferred Tax Liabilities, Ending Balance | (405) | (499) | |
Revaluation of Assets [Member] | |||
DEFERRED TAX (Details) - Movements in deferred tax liabilities and assets [Line Items] | |||
Deferred Tax Liabilities, Beginning Balance | [1] | (207) | (234) |
(Charge) credit to the income statement | [1] | (33) | (40) |
(Charge) credit to other comprehensive income | [1] | 141 | 67 |
Impact of acquisitions and disposals | [1] | ||
Deferred Tax Liabilities, Ending Balance | [1] | £ (99) | £ (207) |
[1] | Financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets). |
OTHER PROVISIONS (Details)
OTHER PROVISIONS (Details) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018GBP (£) | Dec. 31, 2014GBP (£) | Dec. 31, 2017GBP (£) | |
OTHER PROVISIONS (Details) [Line Items] | |||
Increase (decrease) in other provisions | £ 1,422 | ||
Other provisions | 3,547 | £ 5,789 | |
Provision used, other provisions | (3,799) | ||
Payments in respect of settlements, reimbursement rights | £ 217 | ||
Restructuring provision | 191 | 104 | |
Provisions | 329 | 345 | |
Payment Protection Insurance [Member] | |||
OTHER PROVISIONS (Details) [Line Items] | |||
Increase (decrease) in other provisions | 750 | ||
Total Payment Protection Insurance To Date | £ 19,425 | ||
Description of Average Number of Complaints Per Week PPI | 13,000 | ||
Other provisions | £ 1,329 | ||
Provision used, other provisions | £ 1,859 | ||
Number of Policies Sold | 16,000,000 | ||
Estimated percentage of policies contacted settled or provided | 53.00% | ||
Description of Reactive Complaint Sensitivities | For every additional 1,000 reactive complaints per week above 13,000 on average from January 2019 throughto the industry deadline of the end of August 2019, the Group would expect an additional charge of approximately £85 million. | ||
Maximum exposure to credit risk | £ 240 | ||
HBOS [Member] | |||
OTHER PROVISIONS (Details) [Line Items] | |||
Increase (decrease) in other provisions | 15 | ||
Other provisions | £ 115 | ||
Percent of accepted offers after compensation assessment | 96.00% | ||
Value of offers after compensation assessment | £ 96 | ||
Value of accepted offers after compensation assessment | 78 | ||
ExGratiaPayments | 9 | ||
Payments in respect of settlements, reimbursement rights | 5 | ||
Other regulatory provisions [Member] | |||
OTHER PROVISIONS (Details) [Line Items] | |||
Increase (decrease) in other provisions | 600 | ||
Other provisions | 861 | 1,292 | |
Provision used, other provisions | (1,032) | ||
Arreas Handling | |||
OTHER PROVISIONS (Details) [Line Items] | |||
Total Arrears Handling To Date | 793 | ||
Arreas Handling | Management Fees and Activities [Member] | |||
OTHER PROVISIONS (Details) [Line Items] | |||
Increase (decrease) in other provisions | 151 | ||
Mis-selling of packaged bank accounts [Member] | |||
OTHER PROVISIONS (Details) [Line Items] | |||
Total Packaged Bank Accounts To Date | 795 | ||
Mis-selling of packaged bank accounts [Member] | In respect of complaints | |||
OTHER PROVISIONS (Details) [Line Items] | |||
Increase (decrease) in other provisions | 45 | ||
Other provisions | 245 | ||
Customer claims in relation to insurance branch business in Germany | |||
OTHER PROVISIONS (Details) [Line Items] | |||
Other provisions | 639 | ||
Relating to the Transitional Service Agreement [Member] | TSB Banking Group plc [Member] | |||
OTHER PROVISIONS (Details) [Line Items] | |||
Other provisions | 168 | ||
Total TSB Various Ongoing Commitments To Date Today | 665 | ||
Indemnities and other matters relating to legacy business disposals [member] | |||
OTHER PROVISIONS (Details) [Line Items] | |||
Other provisions | £ 122 | ||
Provisions | £ 136 |
OTHER PROVISIONS (Details) - Sc
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Beginning Balance | £ 5,789 |
Exchange and other adjustments | 135 |
Provisions applied | (3,799) |
Charge for the year | 1,422 |
Ending Balance | 3,547 |
Previously stated [member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Beginning Balance | 5,546 |
Ending Balance | |
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Beginning Balance | 243 |
Ending Balance | |
Provision for credit commitments [member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Beginning Balance | 273 |
Exchange and other adjustments | (7) |
Charge for the year | (73) |
Ending Balance | 193 |
Provision for credit commitments [member] | Previously stated [member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Beginning Balance | 30 |
Ending Balance | |
Provision for credit commitments [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Beginning Balance | 243 |
Ending Balance | |
Payment Protection Insurance [Member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Exchange and other adjustments | 100 |
Provisions applied | (2,104) |
Charge for the year | 750 |
Ending Balance | 1,524 |
Payment Protection Insurance [Member] | Previously stated [member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Beginning Balance | 2,778 |
Ending Balance | |
Other regulatory provisions [Member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Beginning Balance | 1,292 |
Exchange and other adjustments | 1 |
Provisions applied | (1,032) |
Charge for the year | 600 |
Ending Balance | 861 |
Other regulatory provisions [Member] | Previously stated [member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Beginning Balance | 1,292 |
Ending Balance | |
Vacant leasehold property [Member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Provisions applied | (44) |
Charge for the year | 50 |
Ending Balance | 62 |
Vacant leasehold property [Member] | Previously stated [member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Beginning Balance | 56 |
Ending Balance | |
Miscellaneous other provisions [member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Exchange and other adjustments | 41 |
Provisions applied | (619) |
Charge for the year | 95 |
Ending Balance | 907 |
Miscellaneous other provisions [member] | Previously stated [member] | |
OTHER PROVISIONS (Details) - Schedule of Assumptions for Other Provisions [Line Items] | |
Beginning Balance | £ 1,390 |
Ending Balance |
SUBORDINATED LIABILITIES (Detai
SUBORDINATED LIABILITIES (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of subordinated liabilities [text block] [Abstract] | |||
Expected cash outflow on redemption or repurchase of puttable financial instruments | [1] | £ (2,256) | £ (1,008) |
[1] | The repurchases and redemptions resulted in cash outflows of 2,256 million (2017: 1,008 million). |
SUBORDINATED LIABILITIES (Det_2
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | |||
Beginning Balance | £ 17,922 | £ 19,831 | |
Repurchases and redemptions during the year | [1] | (2,256) | (1,008) |
Foreign exchange movements | 546 | (785) | |
Other movements (all non-cash) | (285) | (116) | |
Ending Balance | 17,656 | 17,922 | |
Issued during the year | [1] | 1,729 | |
Preference shares [member] | |||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | |||
Beginning Balance | 813 | 864 | |
Repurchases and redemptions during the year | [1] | ||
Foreign exchange movements | 18 | (43) | |
Other movements (all non-cash) | (28) | (8) | |
Ending Balance | 803 | 813 | |
Issued during the year | [1] | ||
Preferred securities [Member] | |||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | |||
Beginning Balance | 3,690 | 4,134 | |
Repurchases and redemptions during the year | [1] | (614) | (237) |
Foreign exchange movements | 131 | (221) | |
Other movements (all non-cash) | (2) | 14 | |
Ending Balance | 3,205 | 3,690 | |
Issued during the year | [1] | ||
Undated subordinated liabilities [Member] | |||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | |||
Beginning Balance | 565 | 599 | |
Repurchases and redemptions during the year | [1] | ||
Foreign exchange movements | 20 | (34) | |
Other movements (all non-cash) | 3 | ||
Ending Balance | 588 | 565 | |
Issued during the year | [1] | ||
Dated subordinated liabilities [Member] | |||
SUBORDINATED LIABILITIES (Details) - Schedule of Movement in Subordinated Liabilities [Line Items] | |||
Beginning Balance | 12,854 | 14,234 | |
Repurchases and redemptions during the year | [1] | (1,642) | (771) |
Foreign exchange movements | 377 | (487) | |
Other movements (all non-cash) | (258) | (122) | |
Ending Balance | 13,060 | £ 12,854 | |
Issued during the year | [1] | £ 1,729 | |
[1] | The repurchases and redemptions resulted in cash outflows of 2,256 million (2017: 1,008 million). |
SUBORDINATED LIABILITIES (Det_3
SUBORDINATED LIABILITIES (Details) - Disclosure of dated subordinated liabilities £ in Millions | Dec. 31, 2018GBP (£) |
SUBORDINATED LIABILITIES (Details) - Disclosure of dated subordinated liabilities [Line Items] | |
Dated subordinated liabilities, Issued during 2018 | £ 1,729 |
1.75% Subordinated Fixed Rate Notes 2028 callable 2023 [Member] | |
SUBORDINATED LIABILITIES (Details) - Disclosure of dated subordinated liabilities [Line Items] | |
Dated subordinated liabilities, Issued during 2018 | 664 |
4.344% Subordinated Fixed Rate Notes callable 2048 [Member] | |
SUBORDINATED LIABILITIES (Details) - Disclosure of dated subordinated liabilities [Line Items] | |
Dated subordinated liabilities, Issued during 2018 | £ 1,065 |
SUBORDINATED LIABILITIES (Det_4
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions during the year - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions during the year [Line Items] | |||
Repurchase and redemptions | [1] | £ 2,256 | £ 1,008 |
Dated subordinated liabilities [Member] | |||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions during the year [Line Items] | |||
Repurchase and redemptions | 1,642 | 771 | |
10.5% Subordinated Bonds callable 2018 [member] | Dated subordinated liabilities [Member] | |||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions during the year [Line Items] | |||
Repurchase and redemptions | 150 | ||
6.75% Subordinated Fixed Rate Notes callable 2018 [member] | Dated subordinated liabilities [Member] | |||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions during the year [Line Items] | |||
Repurchase and redemptions | 1,492 | ||
Subordinated Callable Notes 2017 [Member] | Dated subordinated liabilities [Member] | |||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions during the year [Line Items] | |||
Repurchase and redemptions | 771 | ||
Preferred securities [Member] | |||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions during the year [Line Items] | |||
Repurchase and redemptions | 614 | 237 | |
Preferred securities [Member] | 6.461% Guaranteed Non-voting Non-cumulative Perpetual Preferred Securities [Member] | |||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions during the year [Line Items] | |||
Repurchase and redemptions | 600 | ||
Preferred securities [Member] | Undated Perpetual Preferred Securities [member] | |||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions during the year [Line Items] | |||
Repurchase and redemptions | £ 14 | ||
Preferred securities [Member] | 7.627% Fixed to Floating Rate Guaranteed Non-voting Non-cumulative Preferred Securities [Member] | |||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions during the year [Line Items] | |||
Repurchase and redemptions | 163 | ||
Preferred securities [Member] | 4.385% Step-up Perpetual Capital Securities callable 2017 [member] | |||
SUBORDINATED LIABILITIES (Details) - Disclosure of repurchases and redemptions during the year [Line Items] | |||
Repurchase and redemptions | £ 74 | ||
[1] | The repurchases and redemptions resulted in cash outflows of 2,256 million (2017: 1,008 million). |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) - £ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of issued capital [text block] [Abstract] | |||
Number of shares issued and fully paid | 769,000,000 | 518,000,000 | 0 |
Proportion of voting rights held by non-controlling interests | 100.00% | ||
Number of shares redesignated as ordinary shares | 80,921,051 | ||
Par Value Of Redesignated Ordinary Shares (in Pounds per share) | £ 0.10 |
SHARE CAPITAL (Details) - Sched
SHARE CAPITAL (Details) - Schedule of Issued and Fully Paid Share Capital - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SHARE CAPITAL (Details) - Schedule of Issued and Fully Paid Share Capital [Line Items] | |||
Beginning Balance | £ 7,197 | £ 7,146 | |
Number of shares, Redesignation to ordinary shares (in Shares) | 80,921,051 | ||
Ending Balance | £ 7,116 | £ 7,197 | £ 7,146 |
Ordinary shares [member] | |||
SHARE CAPITAL (Details) - Schedule of Issued and Fully Paid Share Capital [Line Items] | |||
Number of shares outstanding, Start of Period (in Shares) | 71,972,949,589 | 71,373,735,357 | 71,373,735,357 |
Beginning Balance | £ 7,197 | £ 7,138 | £ 7,138 |
Number of shares, Issued under employee share schemes (in Shares) | 768,551,098 | 518,293,181 | |
Value of shares, Issued under employee share schemes | £ 77 | £ 51 | |
Number of shares, Share buy-back programme (in Shares) | (1,577,908,423) | ||
Value of shares, Share buy-back programme | £ (158) | ||
Number of shares, Redesignation of limited voting ordinary shares (in Shares) | 80,921,051 | ||
Value of shares, Redesignation of limited voting ordinary shares | £ 8 | ||
Number of shares outstanding, End of Period (in Shares) | 71,163,592,264 | 71,972,949,589 | 71,373,735,357 |
Ending Balance | £ 7,116 | £ 7,197 | £ 7,138 |
Limited voting [Member] | |||
SHARE CAPITAL (Details) - Schedule of Issued and Fully Paid Share Capital [Line Items] | |||
Number of shares outstanding, Start of Period (in Shares) | 80,921,051 | 80,921,051 | |
Beginning Balance | £ 8 | £ 8 | |
Number of shares, Redesignation to ordinary shares (in Shares) | (80,921,051) | ||
Value of shares, Redesignation to ordinary shares | £ (8) | ||
Number of shares outstanding, End of Period (in Shares) | 80,921,051 | ||
Ending Balance | £ 8 |
SHARE PREMIUM ACCOUNT (Details)
SHARE PREMIUM ACCOUNT (Details) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure For Share Premium Account Explanatory [Abstract] | ||||
Payments for Repurchase of Redeemable Preferred Stock | [1] | £ 210 | ||
Redemption Of Preference Shares | £ 210 | |||
[1] | During the year ended 31 December 2016, the Company redeemed all of its outstanding 6.267% Non-cumulative Fixed to Floating Rate Callable US Dollar Preference Shares at their combined sterling equivalent par value of 210 million. These preference shares had been accounted for as subordinated liabilities. On redemption an amount of 210 million was transferred from the distributable merger reserve to the share premium account. |
SHARE PREMIUM ACCOUNT (Detail_2
SHARE PREMIUM ACCOUNT (Details) - Schedule of Share Premium Account - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Schedule of Share Premium Account [Abstract] | ||||
Beginning Balance | £ 17,634 | £ 17,622 | £ 17,412 | |
Issued under employee share schemes | 85 | 12 | ||
Redemption of preference shares | [1] | 210 | ||
Ending Balance | £ 17,719 | £ 17,634 | £ 17,622 | |
[1] | During the year ended 31 December 2016, the Company redeemed all of its outstanding 6.267% Non-cumulative Fixed to Floating Rate Callable US Dollar Preference Shares at their combined sterling equivalent par value of 210 million. These preference shares had been accounted for as subordinated liabilities. On redemption an amount of 210 million was transferred from the distributable merger reserve to the share premium account. |
OTHER RESERVES (Details)
OTHER RESERVES (Details) - Share buy-back programme [member] - GBP (£) £ in Millions, shares in Millions | 12 Months Ended | |
Dec. 31, 2018 | Mar. 08, 2018 | |
OTHER RESERVES (Details) [Line Items] | ||
Stock Repurchase Program, Authorized Amount | £ 1,000 | |
Stock Repurchased and Retired During Period, Shares (in Shares) | 1,578 | |
Stock Repurchased During Period, Value | £ 1,005 | |
Capital redemption reserve [member] | ||
OTHER RESERVES (Details) [Line Items] | ||
Credit derivative, nominal amount | £ 158 |
OTHER RESERVES (Details) - Sche
OTHER RESERVES (Details) - Schedule of Other Reserves - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other reserves comprise: | |||
Merger reserve | £ 7,766 | ||
Capital redemption reserve | 4,273 | ||
Cash flow hedging reserve | 1,051 | ||
Foreign currency translation reserve | (164) | ||
At 31 December | 13,210 | ||
Previously stated [member] | |||
Other reserves comprise: | |||
Merger reserve | £ 7,766 | £ 7,766 | |
Capital redemption reserve | 4,115 | 4,115 | |
Revaluation reserve in respect of available-for-sale financial assets | 685 | 759 | |
Cash flow hedging reserve | 1,405 | 2,136 | |
Foreign currency translation reserve | (156) | (124) | |
At 31 December | £ 13,815 | £ 14,652 | |
Debt Securities [Member] | |||
Other reserves comprise: | |||
Revaluation reserve held at fair value through other comprehensive income | 279 | ||
Equity Securities [Member] | |||
Other reserves comprise: | |||
Revaluation reserve held at fair value through other comprehensive income | £ 5 |
OTHER RESERVES (Details) - Sc_2
OTHER RESERVES (Details) - Schedule of Merger Reserve - Hedges of net investment in foreign operations [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Merger reserve | |||
Beginning Balance | £ 7,766 | £ 7,766 | £ 7,976 |
Redemption of preference shares (note 40) | (210) | ||
Ending Balance | £ 7,766 | £ 7,766 | £ 7,766 |
OTHER RESERVES (Details) - Sc_3
OTHER RESERVES (Details) - Schedule of Capital Redemption Reserve - Capital redemption reserve [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER RESERVES (Details) - Schedule of Capital Redemption Reserve [Line Items] | |||
Beginning Balance | £ 4,115 | £ 4,115 | £ 4,115 |
Shares cancelled under share buy-back programme (see below) | 158 | ||
Ending Balance | £ 4,273 | £ 4,115 | £ 4,115 |
OTHER RESERVES (Details) - Sc_4
OTHER RESERVES (Details) - Schedule of revaluation reserve in respect of debt securities - Debt Securities [Member] - Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
OTHER RESERVES (Details) - Schedule of revaluation reserve in respect of debt securities [Line Items] | |
Beginning Balance | £ 472 |
Change in fair value | (37) |
Deferred tax | 35 |
(2) | |
Ending Balance | 279 |
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |
OTHER RESERVES (Details) - Schedule of revaluation reserve in respect of debt securities [Line Items] | |
Beginning Balance | 472 |
Ending Balance | |
Income statement transfers [Member] | |
OTHER RESERVES (Details) - Schedule of revaluation reserve in respect of debt securities [Line Items] | |
Disposals (note 9) | (275) |
Deferred tax | 84 |
Net Income statement transfers | £ (191) |
OTHER RESERVES (Details) - Sc_5
OTHER RESERVES (Details) - Schedule of revaluation reserve in respect of equity shares - Equity shares [Member] - Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] £ in Millions | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
OTHER RESERVES (Details) - Schedule of revaluation reserve in respect of equity shares [Line Items] | |
Beginning Balance | £ (49) |
Change in fair value | (97) |
Deferred tax | 22 |
(75) | |
Ending Balance | 5 |
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |
OTHER RESERVES (Details) - Schedule of revaluation reserve in respect of equity shares [Line Items] | |
Beginning Balance | (49) |
Ending Balance | |
Retained Earnings [Member] | |
OTHER RESERVES (Details) - Schedule of revaluation reserve in respect of equity shares [Line Items] | |
Realised gains and losses transferred to retained profits | 151 |
Deferred tax | (22) |
£ 129 |
OTHER RESERVES (Details) - Sc_6
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves - Reserve of gains and losses on remeasuring available-for-sale financial assets [member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Beginning Balance | £ 759 | £ (438) |
Adjustment on transfer from held-to-maturity portfolio | 1,127 | |
Ending Balance | 685 | 759 |
Financial assets available-for-sale, category [member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Change in fair value of available-for-sale financial assets | 273 | 328 |
Income statement transfers [Member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Disposals | (353) | (431) |
Income statement transfers [Member] | Other [Member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Impairment | 6 | 173 |
Pre-Tax [Member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Adjustment on transfer from held-to-maturity portfolio | 1,544 | |
Pre-Tax [Member] | Financial assets available-for-sale, category [member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Change in fair value of available-for-sale financial assets | 303 | 356 |
Pre-Tax [Member] | Income statement transfers [Member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Disposals | (446) | (575) |
Pre-Tax [Member] | Income statement transfers [Member] | Other [Member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Impairment | 6 | 173 |
Deferred Income Tax Charge [Member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Adjustment on transfer from held-to-maturity portfolio | (417) | |
Deferred Income Tax Charge [Member] | Financial assets available-for-sale, category [member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Change in fair value of available-for-sale financial assets | (26) | (25) |
Deferred Income Tax Charge [Member] | Income statement transfers [Member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Disposals | 93 | 196 |
Current Tax [Member] | Financial assets available-for-sale, category [member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Change in fair value of available-for-sale financial assets | £ (4) | (3) |
Current Tax [Member] | Income statement transfers [Member] | ||
OTHER RESERVES (Details) - Schedule of Movement in Other Reserves [Line Items] | ||
Disposals | £ (52) |
OTHER RESERVES (Details) - Sc_7
OTHER RESERVES (Details) - Schedule of Cash Flow Hedging Reserve - Reserve of cash flow hedges [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flow hedging reserve | |||
Balance | £ 1,405 | £ 2,136 | £ 727 |
Change in fair value of hedging derivatives | 165 | (242) | 1,822 |
Income statement transfers | (519) | (489) | (413) |
Balance | 1,051 | 1,405 | 2,136 |
Pre-Tax [Member] | |||
Cash flow hedging reserve | |||
Change in fair value of hedging derivatives | 234 | (363) | 2,432 |
Income statement transfers | (701) | (651) | (557) |
Deferred Income Tax Charge [Member] | |||
Cash flow hedging reserve | |||
Change in fair value of hedging derivatives | (69) | 121 | (610) |
Income statement transfers | £ 182 | £ 162 | £ 144 |
OTHER RESERVES (Details) - Sc_8
OTHER RESERVES (Details) - Schedule of Foreign Currency Translation Reserve - Reserve of change in value of foreign currency basis spreads [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign currency translation reserve | |||
At 1 January | £ (156) | £ (124) | £ (120) |
Currency translation differences arising in the year | (8) | (21) | (110) |
Foreign currency gains on net investment hedges (tax: £nil) | (11) | 106 | |
At 31 December | £ (164) | £ (156) | £ (124) |
RETAINED PROFITS (Details)
RETAINED PROFITS (Details) - Retained earnings [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
RETAINED PROFITS (Details) [Line Items] | |||
Income from continuing involvement in derecognised financial assets | £ 0 | £ 3 | |
Treasury shares | 499 | 611 | £ 495 |
Treasury shares held | £ 909 | £ 861 | £ 730 |
RETAINED PROFITS (Details) - Sc
RETAINED PROFITS (Details) - Schedule of Retained Profits - Retained earnings [member] - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
RETAINED PROFITS (Details) - Schedule of Retained Profits [Line Items] | |||||
Beginning Balance | £ 3,976 | ||||
Profit for the year | 4,302 | ||||
Dividends paid | (2,240) | [1] | £ (2,284) | £ (2,014) | |
Issue costs of other equity instruments (net of tax) (note 43) | (5) | ||||
Distributions on other equity instruments (net of tax) | (327) | ||||
Share buy-back programme (note 41) | (1,005) | ||||
Realised gains and losses on equity shares held at fair value through other comprehensive income | (129) | ||||
Post-retirement defined benefit scheme remeasurements | 120 | 482 | (1,028) | ||
Share of other comprehensive income of associates and joint ventures | 8 | ||||
Gains and losses attributable to own credit risk (net of tax) | [2] | 389 | |||
Movement in treasury shares | 40 | (411) | (175) | ||
Value of employee services: | |||||
Share option schemes | 53 | 82 | 141 | ||
Other employee award schemes | 207 | 332 | 168 | ||
Ending Balance | 5,389 | 3,976 | |||
Previously stated [member] | |||||
RETAINED PROFITS (Details) - Schedule of Retained Profits [Line Items] | |||||
Beginning Balance | 4,905 | 3,250 | 4,416 | ||
Profit for the year | 3,807 | 2,063 | |||
Dividends paid | [1] | (2,284) | (2,014) | ||
Distributions on other equity instruments (net of tax) | (313) | (321) | |||
Post-retirement defined benefit scheme remeasurements | 482 | (1,028) | |||
Gains and losses attributable to own credit risk (net of tax) | [2] | (40) | |||
Movement in treasury shares | (411) | (175) | |||
Value of employee services: | |||||
Share option schemes | 82 | 141 | |||
Other employee award schemes | 332 | 168 | |||
Ending Balance | 4,905 | £ 3,250 | |||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||||
RETAINED PROFITS (Details) - Schedule of Retained Profits [Line Items] | |||||
Beginning Balance | £ (929) | ||||
Value of employee services: | |||||
Ending Balance | £ (929) | ||||
[1] | Net of a credit in respect of unclaimed dividends written-back in accordance with the Company's Articles of Association. | ||||
[2] | During 2017 the Group derecognised, on redemption, financial liabilities on which cumulative fair value movements relating to own credit of 3 million net of tax, had been recognised directly in retained profits (2018: nil). |
OTHER EQUITY INSTRUMENTS (Detai
OTHER EQUITY INSTRUMENTS (Details) - AT1 Securities [Member] £ in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2018GBP (£) | Dec. 31, 2018USD ($) | |
OTHER EQUITY INSTRUMENTS (Details) [Line Items] | ||
Issue of equity | £ 1,136 | $ 1,500 |
Debt Issuance Costs, Net | £ 5 | |
Debt Instrument, Convertible, Terms of Conversion Feature | The securities convert into ordinary shares of Lloyds Banking Group plc, at a pre-determined price, should the fully loaded Common Equity Tier 1 ratio of the Group fall below 7.0 per cent. | The securities convert into ordinary shares of Lloyds Banking Group plc, at a pre-determined price, should the fully loaded Common Equity Tier 1 ratio of the Group fall below 7.0 per cent. |
OTHER EQUITY INSTRUMENTS (Det_2
OTHER EQUITY INSTRUMENTS (Details) - Schedule of Other Equity Instruments - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER EQUITY INSTRUMENTS (Details) - Schedule of Other Equity Instruments [Line Items] | |||
Beginning Balance | £ 5,355 | £ 5,355 | £ 5,355 |
Issued in the year: | |||
US dollar notes ($1,500 million nominal) | 162 | 63 | |
Ending Balance | 6,491 | 5,355 | 5,355 |
US dollar notes, nominal | |||
Issued in the year: | |||
US dollar notes ($1,500 million nominal) | £ 1,136 |
OTHER EQUITY INSTRUMENTS (Det_3
OTHER EQUITY INSTRUMENTS (Details) - Schedule of Other Equity Instruments (Parentheticals) $ in Millions | Dec. 31, 2018USD ($) |
Schedule of Other Equity Instruments [Abstract] | |
US dollar notes, nominal | $ 1,500 |
DIVIDENDS ON ORDINARY SHARES (D
DIVIDENDS ON ORDINARY SHARES (Details) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Dividends paid, ordinary shares | £ 2,240 | £ 2,288 | £ 2,034 |
Stock Repurchase Program, Authorized Amount | £ 1,750 | £ 1,000 | |
Final dividend [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in Pounds per share) | £ 0.0214 | £ 0.0205 | £ 0.017 |
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | £ 1,523 | £ 1,475 | £ 1,212 |
Dividends Payable, Date to be Paid | May 21, 2019 | ||
Special dividend [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in Pounds per share) | £ 0.005 | ||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | £ 356 | ||
Net of Credit for Unclaimed Dividends [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Dividends paid, ordinary shares | £ 2,284 | £ 2,014 | |
Lloyds Banking Group Share Incentive Plan [Member] | Waived [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Number of shares in entity held by entity or by its subsidiaries or associates (in Shares) | 5,538,164 | 12,414,401 | |
HBOS Share Incentive Plan Trust [Member] | Waived [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Number of shares in entity held by entity or by its subsidiaries or associates (in Shares) | 445,625 | 445,625 | |
Lloyds Banking Group Employee Share Ownernship Trust [Member] | Waived [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Number of shares in entity held by entity or by its subsidiaries or associates (in Shares) | 5,679,119 | 13,346,132 | |
Lloyds Group Holdings (Jersey) Limited [Member] | Waived rights to all but a nominal amount of one penny [Member] | |||
DIVIDENDS ON ORDINARY SHARES (Details) [Line Items] | |||
Number of shares in entity held by entity or by its subsidiaries or associates (in Shares) | 42,846 | 42,846 |
DIVIDENDS ON ORDINARY SHARES _2
DIVIDENDS ON ORDINARY SHARES (Details) - Schedule of Dividends On Ordinary Shares - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Recommended by directors at previous year end: | |||
Dividend Per Share | £ 0.0312 | £ 0.0320 | £ 0.0285 |
Total Dividends Paid | £ 2,240 | £ 2,288 | £ 2,034 |
Final dividend [Member] | |||
Recommended by directors at previous year end: | |||
Dividend Per Share | £ 0.0205 | £ 0.0170 | £ 0.0150 |
Total Dividends Paid | £ 1,475 | £ 1,212 | £ 1,070 |
Special dividend [Member] | |||
Recommended by directors at previous year end: | |||
Dividend Per Share | £ 0.0050 | £ 0.0050 | |
Total Dividends Paid | £ 356 | £ 357 | |
Interim dividend [Member] | |||
Recommended by directors at previous year end: | |||
Dividend Per Share | £ 0.0107 | £ 0.0100 | £ 0.0085 |
Total Dividends Paid | £ 765 | £ 720 | £ 607 |
SHARE-BASED PAYMENTS (Details)
SHARE-BASED PAYMENTS (Details) | 12 Months Ended | |
Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | |
Fixed Share Awards [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Number of other equity instruments granted in share-based payment arrangement | 8,965,562 | 9,313,314 |
Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Maximum monthly scheme savings | £ 500 | |
Time period to use savings | 6 months | |
Discounted market price of shares | 80.00% | |
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | £ 0.67 | £ 0.67 |
Weighted average remaining contractual life of outstanding share options | 2.16 | 1.4 |
Weighted average fair value at measurement date, share options granted | £ 0.13 | £ 0.15 |
Save-As-You-Earn [Member] | Bottom of range [member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Contract Term Under Share based Payment Arrangement | 3 years | |
Save-As-You-Earn [Member] | Top of range [member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Contract Term Under Share based Payment Arrangement | 5 years | |
Lloyds Banking Group Executive Share Plan 2003 [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | £ 0.65 | £ 0.69 |
Weighted average remaining contractual life of outstanding share options | 5.2 | 4.9 |
Weighted average fair value at measurement date, share options granted | £ 0.55 | £ 0.62 |
Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Weighted average fair value at measurement date, share options granted | 0.48 | 0.57 |
Free Share Awards [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Maximum Employer Contribution To Free Shares Scheme | 3,000 | |
Employer Contribution To Free Shares Scheme | £ 200 | £ 200 |
Number of other equity instruments granted in share-based payment arrangement | 21,513,300 | 21,566,047 |
Weighted Average Fair Value At Date Of Award Of Shares Awarded To Employees Under Matching Shares Scheme | £ 0.67 | £ 0.69 |
Matching Shares [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Number of other equity instruments granted in share-based payment arrangement | 34,174,161 | 32,025,497 |
Weighted Average Fair Value At Date Of Award Of Shares Awarded To Employees Under Matching Shares Scheme | £ 0.63 | £ 0.67 |
Maximum Employer Contribution To Matching Shares Scheme | £ 45 | |
2015 [Member] | Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Awards Vesting Rate | 66.30% | |
2016 [Member] | Lloyds Banking Group Long-Term Incentive Plan [Member] | ||
SHARE-BASED PAYMENTS (Details) [Line Items] | ||
Awards Vesting Rate | 68.70% |
SHARE-BASED PAYMENTS (Details)
SHARE-BASED PAYMENTS (Details) - Schedule of Charges to the Income Statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SHARE-BASED PAYMENTS (Details) - Schedule of Charges to the Income Statement [Line Items] | |||
Deferred bonus plan | £ 325 | £ 313 | £ 266 |
Executive and SAYE plans: | |||
Executive and SAYE plans | 85 | 98 | 154 |
Share plans: | |||
Share plans | 33 | 26 | 22 |
Total charge to the income statement | 443 | 437 | 442 |
Granted in current year [Member] | |||
Executive and SAYE plans: | |||
Executive and SAYE plans | 14 | 17 | 16 |
Share plans: | |||
Share plans | 16 | 17 | 15 |
Granted in prior years [Member] | |||
Executive and SAYE plans: | |||
Executive and SAYE plans | 71 | 81 | 138 |
Share plans: | |||
Share plans | £ 17 | £ 9 | £ 7 |
SHARE-BASED PAYMENTS (Details_2
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding | 12 Months Ended | |
Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | |
Save-As-You-Earn [Member] | Save-As-You-Earn [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Number of options outstanding, Start of Period | 860,867,088 | 678,692,896 |
Weighted Average Exercise Price of options outstanding, Start of Period | £ 0.5134 | £ 0.5176 |
Number of options, Granted | 188,866,162 | 268,653,890 |
Weighted Average Exercise Price, Granted | £ 0.4792 | £ 0.5103 |
Number of options, Exercised | (135,721,404) | (13,119,229) |
Weighted Average Exercise Price, Exercised | £ 0.5900 | £ 0.5558 |
Number of options, Forfeited | (22,909,999) | (18,545,569) |
Weighted Average Exercise Price, Forfeited | £ 0.4985 | £ 0.5170 |
Number of options, Cancelled | (78,073,042) | (41,211,075) |
Weighted Average Exercise Price, Cancelled | £ 0.5066 | £ 0.5277 |
Number of options, Expired | (10,033,887) | (13,603,825) |
Weighted Average Exercise Price, Expired | £ 0.5520 | £ 0.5698 |
Number of options outstanding, End of Period | 802,994,918 | 860,867,088 |
Weighted Average Exercise Price of options outstanding, End of Period | £ 0.4930 | £ 0.5134 |
Number of options exercisable, End of Period | 68,378 | |
Weighted Average Exercise Price of options exercisable, End of Period | £ 0.6002 | |
Lloyds Banking Group Executive Share Plan 2003 [Member] | Lloyds Banking Group Executive Share Plan 2003 [Member] | ||
SHARE-BASED PAYMENTS (Details) - Schedule of Share Options Outstanding [Line Items] | ||
Number of options outstanding, Start of Period | 14,523,989 | 218,962,281 |
Weighted Average Exercise Price of options outstanding, Start of Period | ||
Number of options, Granted | 3,914,599 | 5,466,405 |
Weighted Average Exercise Price, Granted | ||
Number of options, Exercised | (6,854,043) | (104,967,667) |
Weighted Average Exercise Price, Exercised | ||
Number of options, Vested | (148,109) | |
Weighted Average Exercise Price, Vested | ||
Number of options, Forfeited | (662,985) | (81,883) |
Weighted Average Exercise Price, Forfeited | ||
Number of options, Expired | (510,423) | (104,855,147) |
Weighted Average Exercise Price, Expired | ||
Number of options outstanding, End of Period | 10,263,028 | 14,523,989 |
Weighted Average Exercise Price of options outstanding, End of Period | ||
Number of options exercisable, End of Period | 3,305,442 | 7,729,919 |
Weighted Average Exercise Price of options exercisable, End of Period |
SHARE-BASED PAYMENTS (Details_3
SHARE-BASED PAYMENTS (Details) - Schedule of Shares under the Executive Share Ownership Plan - Lloyds Banking Group Executive Share Plan 2003 [Member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SHARE-BASED PAYMENTS (Details) - Schedule of Shares under the Executive Share Ownership Plan [Line Items] | ||
Outstanding, Period Start | 370,804,915 | 358,228,028 |
Granted | 160,586,201 | 139,812,788 |
Vested | (73,270,301) | (57,406,864) |
Forfeited | (48,108,870) | (73,268,966) |
Dividend award | 7,373,691 | 3,439,929 |
Outstanding, Period End | 417,385,636 | 370,804,915 |
SHARE-BASED PAYMENTS (Details_4
SHARE-BASED PAYMENTS (Details) - Schedule of Assumptions Used for Calculating Benefit Plans | 12 Months Ended |
Dec. 31, 2018GBP (£) | |
Save-as-you-earn [Member] | |
SHARE-BASED PAYMENTS (Details) - Schedule of Assumptions Used for Calculating Benefit Plans [Line Items] | |
Weighted average risk-free interest rate | 0.96% |
Weighted average expected life | 3 years 109 days |
Weighted average expected volatility | 28.00% |
Weighted average expected dividend yield | 4.00% |
Weighted average share price (in Pounds) | £ 0.59 |
Weighted average exercise price (in Pounds) | £ 0.48 |
Executive share plan 2003 [Member] | |
SHARE-BASED PAYMENTS (Details) - Schedule of Assumptions Used for Calculating Benefit Plans [Line Items] | |
Weighted average risk-free interest rate | 0.74% |
Weighted average expected life | 1 year 109 days |
Weighted average expected volatility | 21.00% |
Weighted average expected dividend yield | 4.00% |
Weighted average share price (in Pounds) | £ 0.58 |
Weighted average exercise price (in Pounds) | |
LTIP [Member] | |
SHARE-BASED PAYMENTS (Details) - Schedule of Assumptions Used for Calculating Benefit Plans [Line Items] | |
Weighted average risk-free interest rate | 0.94% |
Weighted average expected life | 3 years 255 days |
Weighted average expected volatility | 29.00% |
Weighted average expected dividend yield | 4.00% |
Weighted average share price (in Pounds) | £ 0.67 |
Weighted average exercise price (in Pounds) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Key management personnel - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS (Details) - Key management personnel [Line Items] | |||
Borrowings, interest rate | 2.68% | 2.43% | 2.70% |
Deposits from customers | £ 418,066,000 | £ 418,124,000 | |
Key management personnel of entity or parent [member] | |||
RELATED PARTY TRANSACTIONS (Details) - Key management personnel [Line Items] | |||
Payment for Pension Benefits | £ 50 | £ 100 | |
Interest rate on deposits | 3.50% | 4.00% | 4.00% |
Directors and connected persons [member] | |||
RELATED PARTY TRANSACTIONS (Details) - Key management personnel [Line Items] | |||
Outstanding commitments made by entity, related party transactions | £ 500 | £ 10 | £ 400 |
Bottom of range [member] | Key management personnel of entity or parent [member] | |||
RELATED PARTY TRANSACTIONS (Details) - Key management personnel [Line Items] | |||
Borrowings, interest rate | 6.70% | 6.45% | 2.49% |
Top of range [member] | Key management personnel of entity or parent [member] | |||
RELATED PARTY TRANSACTIONS (Details) - Key management personnel [Line Items] | |||
Borrowings, interest rate | 24.20% | 23.95% | 23.95% |
525110 Pension Funds [Member] | |||
RELATED PARTY TRANSACTIONS (Details) - Key management personnel [Line Items] | |||
Deposits from customers | £ 225,000 | £ 337,000 | |
Contract liabilities | £ 79,000 | £ 307,000 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details) - Collective investment vehicles £ in Millions | 12 Months Ended | ||
Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | |
RELATED PARTY TRANSACTIONS (Details) - Collective investment vehicles [Line Items] | |||
Number of investment vehicles | 131 | 134 | |
Financial assets at fair value through profit or loss | £ 158,529 | £ 176,008 | |
Financial assets, at fair value | 206,939 | 230,810 | |
Fee and commission income | £ 2,848 | £ 2,965 | £ 3,045 |
Consolidated [member] | |||
RELATED PARTY TRANSACTIONS (Details) - Collective investment vehicles [Line Items] | |||
Number of investment vehicles | 82 | 83 | |
Unconsolidated [member] | |||
RELATED PARTY TRANSACTIONS (Details) - Collective investment vehicles [Line Items] | |||
Current investments | £ 620 | ||
Money redeemed from disposal of unconsolidated OEICs | 404 | ||
Financial assets at fair value through profit or loss | 2,513 | ||
Fee and commission income | £ 128 | ||
Investment Vehicles [Member] | |||
RELATED PARTY TRANSACTIONS (Details) - Collective investment vehicles [Line Items] | |||
Current investments | £ 418 | ||
Money redeemed from disposal of unconsolidated OEICs | 616 | ||
Financial assets, at fair value | 2,328 | ||
Fee and commission income | £ 133 |
RELATED PARTY TRANSACTIONS (D_3
RELATED PARTY TRANSACTIONS (Details) - Joint ventures and associates - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS (Details) - Joint ventures and associates [Line Items] | |||
Loans and advances to customers | £ 484,858 | £ 461,016 | |
Balances on term deposits from customers | 2 | 9 | |
Assets | 797,598 | 811,182 | |
Liabilities | 747,399 | 763,230 | |
Profit (loss) | 4,400 | 3,897 | £ 2,164 |
Cash flows from (used in) financing activities | (4,301) | ||
Interest income | 16,349 | 16,006 | £ 16,620 |
Associates [member] | |||
RELATED PARTY TRANSACTIONS (Details) - Joint ventures and associates [Line Items] | |||
Assets | 4,091 | 4,661 | |
Liabilities | 4,616 | 5,228 | |
Turnover | 4,522 | 4,601 | |
Profit (loss) | (125) | (87) | |
Cash flows from (used in) financing activities | 1,141 | 1,226 | |
Interest income | 49 | 81 | |
Outstanding [Member] | |||
RELATED PARTY TRANSACTIONS (Details) - Joint ventures and associates [Line Items] | |||
Loans and advances to customers | £ 57 | £ 123 |
RELATED PARTY TRANSACTIONS (D_4
RELATED PARTY TRANSACTIONS (Details) - Schedule of Compensation of Key Management Personnel - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation | |||
Salaries and other short-term benefits | £ 14 | £ 13 | £ 17 |
Share-based payments | 18 | 22 | 23 |
Total compensation | £ 32 | £ 35 | £ 40 |
RELATED PARTY TRANSACTIONS (D_5
RELATED PARTY TRANSACTIONS (Details) - Aggregate contributions in respect of key management personnel to defined contribution pension schemes - Key management personnel of entity or parent [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share option plans [Member] | |||
RELATED PARTY TRANSACTIONS (Details) - Aggregate contributions in respect of key management personnel to defined contribution pension schemes [Line Items] | |||
Beginning Balance | £ 1 | £ 3 | £ 9 |
Granted, including certain adjustments (includes entitlements of appointed key management personnel) | 3 | ||
Exercised/lapsed (includes entitlements of former key management personnel) | (1) | (2) | (9) |
Ending Balance | 1 | 3 | |
Share plans [Member] | |||
RELATED PARTY TRANSACTIONS (Details) - Aggregate contributions in respect of key management personnel to defined contribution pension schemes [Line Items] | |||
Beginning Balance | 82 | 65 | 82 |
Granted, including certain adjustments (includes entitlements of appointed key management personnel) | 39 | 37 | 29 |
Exercised/lapsed (includes entitlements of former key management personnel) | (37) | (20) | (46) |
Ending Balance | £ 84 | £ 82 | £ 65 |
RELATED PARTY TRANSACTIONS (D_6
RELATED PARTY TRANSACTIONS (Details) - Schedule of Loan Balances Outstanding - Key management personnel of entity or parent [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans | |||
Beginning Balance | £ 2 | £ 4 | £ 5 |
Advanced (includes loans of appointed key management personnel) | 1 | 1 | 3 |
Repayments (includes loans of former key management personnel) | (1) | (3) | (4) |
Ending Balance | £ 2 | £ 2 | £ 4 |
RELATED PARTY TRANSACTIONS (D_7
RELATED PARTY TRANSACTIONS (Details) - Schedule of Deposits - Key management personnel of entity or parent [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deposits | |||
Deposits | £ 20 | £ 12 | £ 13 |
Placed (includes deposits of appointed key management personnel) | 33 | 41 | 41 |
Withdrawn (includes deposits of former key management personnel) | (33) | (33) | (42) |
Deposits | £ 20 | £ 20 | £ 12 |
CONTINGENT LIABILITIES AND CO_3
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | |
CONTINGENT LIABILITIES AND COMMITMENTS (Details) [Line Items] | |||
Payments in respect of settlements, reimbursement rights | £ 217 | ||
Gross loan commitments | £ 135,098 | £ 135,629 | |
Capital commitments | 378 | 444 | |
Amounts Related To Assets To Be Leased Under Operating Leases Signage | 369 | 440 | |
Legal proceedings contingent liability [member] | |||
CONTINGENT LIABILITIES AND COMMITMENTS (Details) [Line Items] | |||
Increase (Decrease) In Current Tax Liability | 770 | ||
Increase (decrease) in deferred tax liability (asset) | (250) | ||
Irrevocable Loan Commitments [Member] | |||
CONTINGENT LIABILITIES AND COMMITMENTS (Details) [Line Items] | |||
Gross loan commitments | £ 64,884 | £ 65,946 |
CONTINGENT LIABILITIES AND CO_4
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Contingent Liabilities - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Contingent liabilities | ||
Contingent liabilities | £ 3,251 | £ 3,111 |
Acceptances and endorsements [Member] | ||
Contingent liabilities | ||
Contingent liabilities | 194 | 71 |
Other items serving as direct credit subsitutes [Member] | ||
Contingent liabilities | ||
Contingent liabilities | 632 | 740 |
Performance bonds and other transaction-related contingencies [Member] | ||
Contingent liabilities | ||
Contingent liabilities | 2,425 | 2,300 |
Other contingent liabilities [member] | ||
Contingent liabilities | ||
Contingent liabilities | £ 3,057 | £ 3,040 |
CONTINGENT LIABILITIES AND CO_5
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Commitments - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments and guarantees | ||
Commitments | £ 135,098 | £ 135,629 |
Not later than one year [member] | ||
Commitments and guarantees | ||
Commitments | 96,654 | 96,171 |
Later than one year [member] | ||
Commitments and guarantees | ||
Commitments | 37,712 | 39,074 |
Documentary credits and other short-term trade-related transactions [member] | ||
Commitments and guarantees | ||
Commitments | 1 | |
Forward asset purchases and forward deposits placed [member] | ||
Commitments and guarantees | ||
Commitments | 731 | 384 |
Mortgages [member] | Not later than one year [member] | ||
Commitments and guarantees | ||
Commitments | 11,594 | 11,156 |
Other [Member] | Not later than one year [member] | ||
Commitments and guarantees | ||
Commitments | £ 85,060 | £ 85,015 |
CONTINGENT LIABILITIES AND CO_6
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Operating Lease Commitments - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Operating Lease Commitments [Line Items] | ||
Operating lease commitments | £ 2,043 | £ 2,054 |
Not later than one year [member] | ||
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Operating Lease Commitments [Line Items] | ||
Operating lease commitments | 259 | 275 |
Later than one year and not later than five years [member] | ||
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Operating Lease Commitments [Line Items] | ||
Operating lease commitments | 807 | 845 |
Later than five years [member] | ||
CONTINGENT LIABILITIES AND COMMITMENTS (Details) - Schedule of Operating Lease Commitments [Line Items] | ||
Operating lease commitments | £ 977 | £ 934 |
STRUCTURED ENTITIES (Details)
STRUCTURED ENTITIES (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
STRUCTURED ENTITIES (Details) [Line Items] | ||
Loans and advances to customers | £ 484,858 | £ 461,016 |
Asset-backed debt instruments held | 24,491 | 42,338 |
Assets and liabilities held in consolidated collective investment vehicles | 62,648 | 68,124 |
Assets and liabilities held in unconsolidated collective investment vehicles | 26,028 | 28,759 |
Total Asset Value Of Unconsolidated Structured Entities | 2,435,000 | 2,338,000 |
Cancara [Member] | ||
STRUCTURED ENTITIES (Details) [Line Items] | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | 5,122 | 6,049 |
Loans and advances to customers | 5,012 | 5,939 |
Asset-backed debt instruments held | £ 110 | £ 110 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Financial assets, at fair value | £ 206,939 | £ 230,810 |
Financial liabilities, at fair value | 51,920 | 77,001 |
Debt instruments issued | 91,168 | 72,402 |
Adjustments for fair value losses (gains) | £ 533 | 55 |
Description of sensitivity of fair value measurement to changes in unobservable inputs, assets | A one per cent risein interest rates would lead to a £108 million fall in the overall valuation adjustment to £222 million. | |
Debt Instrument, Interest Rate, Increase (Decrease) | 1.00% | |
Adjustments for gains (losses) on change in fair value of derivatives | £ 80 | £ 74 |
Bottom of range [member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Increase (decrease) in valuation adjustment | £ (108) | |
Expected volatility, share options granted | 19.00% | 9.00% |
Top of range [member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Increase (decrease) in valuation adjustment | £ 222 | |
Expected volatility, share options granted | 80.00% | 94.00% |
Financial assets at fair value through profit or loss, category [member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Debt instruments issued | £ 7,085 | £ 7,812 |
Derivative financial assets, carried at fair value | 23,595 | 25,834 |
Derivative financial liabilities carried at fair value | 21,373 | 26,124 |
Excluding Derivatives [Member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Financial assets, at fair value | 183,344 | 204,976 |
Financial liabilities, at fair value | £ 30,547 | £ 50,877 |
CVA [Member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Description of sensitivity of fair value measurement to changes in unobservable inputs, assets | The combination of a one notch deterioration in the credit ratingof derivative counterparties and a ten per cent increase in LGD increases the CVA by £89 million. | |
Increase (decrease) in loss given default | 10.00% | |
Increase (decrease) in valuation adjustment | £ 89 | |
DVA [Member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Description of sensitivity of fair value measurement to changes in unobservable inputs, assets | A one per cent rise in the CDS spread would lead to an increase inthe DVA of £67 million to £146 million. | |
Increase (decrease) in credit default swap | 1.00% | |
DVA [Member] | Bottom of range [member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Increase (decrease) in valuation adjustment | £ 67 | |
DVA [Member] | Top of range [member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Increase (decrease) in valuation adjustment | £ 146 | |
Funding Valuation Adjustment [Member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Description of sensitivity of fair value measurement to changes in unobservable inputs, assets | A ten basis points increase in the cost of funds will increase the funding valuationadjustment by approximately £23 million. | |
Increase (decrease) in valuation adjustment | £ 23 | |
Increase (decrease) in cost of funds | 0.10% | |
Residential Mortgage Backed Securities [Member] | Bottom of range [member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Debt Instrument, Term | 2 years | |
Residential Mortgage Backed Securities [Member] | Top of range [member] | ||
FINANCIAL INSTRUMENTS (Details) [Line Items] | ||
Debt Instrument, Term | 5 years |
FINANCIAL INSTRUMENTS (Detail_2
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Assets and Liabilites - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets | |||
Cash and balances at central banks | £ 54,663 | £ 58,521 | |
Items in the course of collection from banks | 647 | 755 | |
Financial assets at fair value through profit or loss | 158,529 | 176,008 | |
Derivative financial instruments | 23,595 | 25,474 | |
Loans and advances to banks | 6,283 | 4,246 | |
Loans and advances to customers | 484,858 | 461,016 | |
Debt securities | 5,238 | 3,314 | |
Financial assets at amortised cost | 496,379 | 468,576 | |
Financial assets at fair value through other comprehensive income | 24,815 | 42,917 | |
Total financial assets | 758,628 | ||
Financial liabilities | |||
Deposits from banks | 30,320 | 29,804 | |
Customer deposits | 418,066 | 418,124 | |
Items in course of transmission to banks | 636 | 584 | |
Financial liabilities at fair value through profit or loss | 30,547 | 50,935 | |
Derivative financial instruments | 21,373 | 26,124 | |
Notes in circulation | 1,104 | 1,313 | |
Debt securities in issue | 91,168 | 72,402 | |
Liabilities arising from insurance contracts and participating investment contracts | 98,874 | ||
Liabilities arising from non-participating investment contracts | 13,853 | ||
Unallocated surplus within insurance businesses | 382 | ||
Subordinated liabilities | 17,656 | 17,922 | £ 19,831 |
Total financial liabilities | 723,979 | ||
Previously stated [member] | |||
Financial assets | |||
Cash and balances at central banks | 58,521 | 47,452 | |
Items in the course of collection from banks | 755 | ||
Financial assets at fair value through profit or loss | 162,878 | ||
Derivative financial instruments | 25,834 | ||
Loans and advances to banks | 6,611 | £ 26,902 | |
Loans and advances to customers | 472,498 | ||
Debt securities | 3,643 | ||
Financial assets at amortised cost | 482,752 | ||
Financial assets at fair value through other comprehensive income | 42,098 | ||
Total financial assets | 772,838 | ||
Financial liabilities | |||
Deposits from banks | 29,804 | ||
Customer deposits | 418,124 | ||
Items in course of transmission to banks | 584 | ||
Financial liabilities at fair value through profit or loss | 50,877 | ||
Derivative financial instruments | 26,124 | ||
Notes in circulation | 1,313 | ||
Debt securities in issue | 72,450 | ||
Liabilities arising from insurance contracts and participating investment contracts | 103,413 | ||
Liabilities arising from non-participating investment contracts | 15,447 | ||
Unallocated surplus within insurance businesses | 390 | ||
Subordinated liabilities | 17,922 | ||
Total financial liabilities | 736,448 | ||
Held at amortised cost [member] | |||
Financial assets | |||
Cash and balances at central banks | 54,663 | ||
Items in the course of collection from banks | 647 | ||
Loans and advances to banks | 6,283 | ||
Loans and advances to customers | 484,858 | ||
Debt securities | 5,238 | ||
Financial assets at amortised cost | 496,379 | ||
Total financial assets | 551,689 | ||
Financial liabilities | |||
Deposits from banks | 30,320 | ||
Customer deposits | 418,066 | ||
Items in course of transmission to banks | 636 | ||
Notes in circulation | 1,104 | ||
Debt securities in issue | 91,168 | ||
Subordinated liabilities | 17,656 | ||
Total financial liabilities | 558,950 | ||
Held at amortised cost [member] | Previously stated [member] | |||
Financial assets | |||
Cash and balances at central banks | 58,521 | ||
Items in the course of collection from banks | 755 | ||
Loans and advances to banks | 6,611 | ||
Loans and advances to customers | 472,498 | ||
Debt securities | 3,643 | ||
Financial assets at amortised cost | 482,752 | ||
Total financial assets | 542,028 | ||
Financial liabilities | |||
Deposits from banks | 29,804 | ||
Customer deposits | 418,124 | ||
Items in course of transmission to banks | 584 | ||
Notes in circulation | 1,313 | ||
Debt securities in issue | 72,450 | ||
Subordinated liabilities | 17,922 | ||
Total financial liabilities | 540,197 | ||
Held for trading at fair value through profit or loss [member] | Mandatorily held at fair value through profit or loss [member] | |||
Financial assets | |||
Financial assets at fair value through profit or loss | 35,246 | ||
Derivative financial instruments | 22,032 | ||
Total financial assets | 57,278 | ||
Financial liabilities | |||
Financial liabilities at fair value through profit or loss | 23,451 | ||
Derivative financial instruments | 20,265 | ||
Total financial liabilities | 43,716 | ||
Held for trading at fair value through profit or loss [member] | Designated at fair value through profit or loss [member] | Previously stated [member] | |||
Financial assets | |||
Financial assets at fair value through profit or loss | 42,236 | ||
Derivative financial instruments | 23,953 | ||
Total financial assets | 66,189 | ||
Financial liabilities | |||
Financial liabilities at fair value through profit or loss | 43,062 | ||
Derivative financial instruments | 24,511 | ||
Total financial liabilities | 67,573 | ||
Other [Member] | Mandatorily held at fair value through profit or loss [member] | |||
Financial assets | |||
Financial assets at fair value through profit or loss | 123,283 | ||
Total financial assets | 123,283 | ||
Other [Member] | Designated at fair value through profit or loss [member] | Previously stated [member] | |||
Financial assets | |||
Financial assets at fair value through profit or loss | 120,642 | ||
Total financial assets | 120,642 | ||
Financial liabilities | |||
Financial liabilities at fair value through profit or loss | 7,815 | ||
Total financial liabilities | 7,815 | ||
Derivatives designated as hedging instruments [member] | |||
Financial assets | |||
Derivative financial instruments | 1,563 | ||
Total financial assets | 1,563 | ||
Financial liabilities | |||
Derivative financial instruments | 1,108 | ||
Total financial liabilities | 1,108 | ||
Derivatives designated as hedging instruments [member] | Previously stated [member] | |||
Financial assets | |||
Derivative financial instruments | 1,881 | ||
Total financial assets | 1,881 | ||
Financial liabilities | |||
Derivative financial instruments | 1,613 | ||
Total financial liabilities | 1,613 | ||
At fair value through other comprehensive income [member] | |||
Financial assets | |||
Financial assets at fair value through other comprehensive income | 24,815 | ||
Total financial assets | 24,815 | ||
Available-for-sale Securities [Member] | Previously stated [member] | |||
Financial assets | |||
Financial assets at fair value through other comprehensive income | 42,098 | ||
Total financial assets | 42,098 | ||
Designated at fair value through profit or loss [member] | |||
Financial liabilities | |||
Financial liabilities at fair value through profit or loss | 7,096 | ||
Total financial liabilities | 7,096 | ||
Insurance contracts [member] | |||
Financial liabilities | |||
Liabilities arising from insurance contracts and participating investment contracts | 98,874 | ||
Liabilities arising from non-participating investment contracts | 13,853 | ||
Unallocated surplus within insurance businesses | 382 | ||
Total financial liabilities | £ 113,109 | ||
Insurance contracts [member] | Previously stated [member] | |||
Financial liabilities | |||
Liabilities arising from insurance contracts and participating investment contracts | 103,413 | ||
Liabilities arising from non-participating investment contracts | 15,447 | ||
Unallocated surplus within insurance businesses | 390 | ||
Total financial liabilities | £ 119,250 |
FINANCIAL INSTRUMENTS (Detail_3
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Assets Excluding Derivatives - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets at fair value through profit or loss, category [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Assets Excluding Derivatives [Line Items] | ||
Loans and advances to customers | £ 37,850 | £ 29,976 |
Loans and advances to banks | 3,026 | 1,614 |
Debt securities: | ||
Government securities | 18,095 | 22,020 |
Other public sector securities | 2,064 | 1,527 |
Bank and building society certificates of deposit | 1,105 | 222 |
Asset-backed securities: | ||
Mortgage-backed securities | 225 | 400 |
Other asset-backed securities | 349 | 1,021 |
Corporate and other debt securities | 18,310 | 19,990 |
debtinstrumentsheld | 40,148 | 45,180 |
Treasury and other bills | 20 | 18 |
Equity shares | 77,485 | 86,090 |
Total trading and other financial assets at fair value through profit or loss | 162,878 | |
Total financial assets carried at fair value | 158,529 | |
Financial assets at fair value through profit or loss, category [member] | Level 2 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Assets Excluding Derivatives [Line Items] | ||
Loans and advances to customers | 27,285 | 29,976 |
Loans and advances to banks | 3,026 | 1,614 |
Debt securities: | ||
Government securities | 169 | 1,729 |
Other public sector securities | 2,064 | 1,526 |
Bank and building society certificates of deposit | 1,021 | 222 |
Asset-backed securities: | ||
Mortgage-backed securities | 219 | 348 |
Other asset-backed securities | 231 | 229 |
Corporate and other debt securities | 16,840 | 18,542 |
debtinstrumentsheld | 20,544 | 22,596 |
Equity shares | 26 | 18 |
Total trading and other financial assets at fair value through profit or loss | 54,204 | |
Total financial assets carried at fair value | 50,881 | |
Financial assets at fair value through profit or loss, category [member] | Level 3 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Assets Excluding Derivatives [Line Items] | ||
Loans and advances to customers | 10,565 | |
Debt securities: | ||
Government securities | 23 | |
Other public sector securities | 1 | |
Asset-backed securities: | ||
Mortgage-backed securities | 6 | 49 |
Other asset-backed securities | 118 | 787 |
Corporate and other debt securities | 1,470 | 1,448 |
debtinstrumentsheld | 1,594 | 2,308 |
Equity shares | 1,758 | 1,378 |
Total trading and other financial assets at fair value through profit or loss | 3,686 | |
Total financial assets carried at fair value | 13,917 | |
Financial assets at fair value through profit or loss, category [member] | Level 1 of fair value hierarchy [member] | ||
Debt securities: | ||
Government securities | 17,926 | 20,268 |
Bank and building society certificates of deposit | 84 | |
Asset-backed securities: | ||
Mortgage-backed securities | 3 | |
Other asset-backed securities | 5 | |
debtinstrumentsheld | 18,010 | 20,276 |
Treasury and other bills | 20 | 18 |
Equity shares | 75,701 | 84,694 |
Total trading and other financial assets at fair value through profit or loss | 104,988 | |
Total financial assets carried at fair value | 93,731 | |
Financial assets at fair value through other comprehensive income, category [member] | ||
Debt securities: | ||
Government securities | 18,971 | |
Bank and building society certificates of deposit | 118 | |
Asset-backed securities: | ||
Mortgage-backed securities | 120 | |
Other asset-backed securities | 131 | |
Corporate and other debt securities | 5,151 | |
debtinstrumentsheld | 24,491 | |
Treasury and other bills | 303 | |
Equity shares | 21 | |
Total financial assets at fair value through other comprehensive income | 24,815 | |
Total financial assets carried at fair value, excluding derivatives | 183,344 | |
Financial assets at fair value through other comprehensive income, category [member] | Level 2 of fair value hierarchy [member] | ||
Debt securities: | ||
Government securities | 124 | |
Bank and building society certificates of deposit | 118 | |
Asset-backed securities: | ||
Other asset-backed securities | 5 | |
Corporate and other debt securities | 5,119 | |
debtinstrumentsheld | 5,366 | |
Total financial assets at fair value through other comprehensive income | 5,366 | |
Total financial assets carried at fair value, excluding derivatives | 56,247 | |
Financial assets at fair value through other comprehensive income, category [member] | Level 3 of fair value hierarchy [member] | ||
Asset-backed securities: | ||
Mortgage-backed securities | 120 | |
Other asset-backed securities | 126 | |
debtinstrumentsheld | 246 | |
Equity shares | 21 | |
Total financial assets at fair value through other comprehensive income | 267 | |
Total financial assets carried at fair value, excluding derivatives | 14,184 | |
Financial assets at fair value through other comprehensive income, category [member] | Level 1 of fair value hierarchy [member] | ||
Debt securities: | ||
Government securities | 18,847 | |
Asset-backed securities: | ||
Corporate and other debt securities | 32 | |
debtinstrumentsheld | 18,879 | |
Treasury and other bills | 303 | |
Total financial assets at fair value through other comprehensive income | 19,182 | |
Total financial assets carried at fair value, excluding derivatives | £ 112,913 | |
Financial assets available-for-sale, category [member] | ||
Debt securities: | ||
Government securities | 34,708 | |
Bank and building society certificates of deposit | 167 | |
Asset-backed securities: | ||
Mortgage-backed securities | 1,156 | |
Other asset-backed securities | 255 | |
Corporate and other debt securities | 4,615 | |
debtinstrumentsheld | 40,901 | |
Equity shares | 1,197 | |
Total available-for-sale financial assets | 42,098 | |
Total financial assets carried at fair value, excluding derivatives | 204,976 | |
Financial assets available-for-sale, category [member] | Level 2 of fair value hierarchy [member] | ||
Debt securities: | ||
Government securities | 174 | |
Bank and building society certificates of deposit | 167 | |
Asset-backed securities: | ||
Mortgage-backed securities | 1,156 | |
Other asset-backed securities | 163 | |
Corporate and other debt securities | 4,386 | |
debtinstrumentsheld | 6,046 | |
Equity shares | 38 | |
Total available-for-sale financial assets | 6,084 | |
Total financial assets carried at fair value, excluding derivatives | 60,288 | |
Financial assets available-for-sale, category [member] | Level 3 of fair value hierarchy [member] | ||
Asset-backed securities: | ||
Other asset-backed securities | 92 | |
debtinstrumentsheld | 92 | |
Equity shares | 604 | |
Total available-for-sale financial assets | 696 | |
Total financial assets carried at fair value, excluding derivatives | 4,382 | |
Financial assets available-for-sale, category [member] | Level 1 of fair value hierarchy [member] | ||
Debt securities: | ||
Government securities | 34,534 | |
Asset-backed securities: | ||
Corporate and other debt securities | 229 | |
debtinstrumentsheld | 34,763 | |
Equity shares | 555 | |
Total available-for-sale financial assets | 35,318 | |
Total financial assets carried at fair value, excluding derivatives | £ 140,306 |
FINANCIAL INSTRUMENTS (Detail_4
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio - Level 3 of fair value hierarchy [member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets at fair value through profit or loss, category [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | £ 14,152 | |
Exchange and other adjustments | 87 | |
Gains recognised in the income statement within other income | 439 | |
Purchases/increases to customer loans | 2,480 | |
Sales | (3,593) | |
Transfers into the level 3 portfolio | 815 | |
Transfers out of the level 3 portfolio | (463) | |
Ending Balance | 13,917 | £ 14,152 |
Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December | (104) | |
Financial assets at fair value through profit or loss, category [member] | Previously stated [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | 3,686 | |
Ending Balance | 3,686 | |
Financial assets at fair value through profit or loss, category [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | 10,466 | |
Ending Balance | 10,466 | |
Financial assets available-for-sale, category [member] | Previously stated [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | 696 | |
Ending Balance | 696 | |
Financial assets available-for-sale, category [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | (696) | |
Ending Balance | (696) | |
Financial Assets, Excluding Derivatives [Member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | 14,454 | |
Exchange and other adjustments | 85 | |
Gains recognised in the income statement within other income | 439 | |
(Losses) gains recognised in other comprehensive income within the revaluation reserve in respect of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) | (4) | |
Purchases/increases to customer loans | 2,482 | |
Sales | (3,688) | |
Transfers into the level 3 portfolio | 1,163 | |
Transfers out of the level 3 portfolio | (747) | |
Ending Balance | 14,184 | 14,454 |
Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December | (104) | |
Financial Assets, Excluding Derivatives [Member] | Previously stated [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | 4,382 | |
Ending Balance | 4,382 | |
Financial Assets, Excluding Derivatives [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | 10,072 | |
Ending Balance | 10,072 | |
Financial assets at fair value through other comprehensive income, category [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | 302 | |
Exchange and other adjustments | (2) | |
(Losses) gains recognised in other comprehensive income within the revaluation reserve in respect of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) | (4) | |
Purchases/increases to customer loans | 2 | |
Sales | (95) | |
Transfers into the level 3 portfolio | 348 | |
Transfers out of the level 3 portfolio | (284) | |
Ending Balance | 267 | 302 |
Financial assets at fair value through other comprehensive income, category [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | 302 | |
Ending Balance | 302 | |
Previously stated [member] | Financial assets at fair value through profit or loss, category [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | 3,686 | 3,806 |
Exchange and other adjustments | (1) | |
Gains recognised in the income statement within other income | 202 | |
Purchases/increases to customer loans | 774 | |
Sales | (1,005) | |
Transfers into the level 3 portfolio | 152 | |
Transfers out of the level 3 portfolio | (242) | |
Ending Balance | 3,686 | |
Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December | 125 | |
Previously stated [member] | Financial assets available-for-sale, category [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | 696 | 894 |
Exchange and other adjustments | (24) | |
(Losses) gains recognised in other comprehensive income within the revaluation reserve in respect of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) | (117) | |
Purchases/increases to customer loans | 41 | |
Sales | (61) | |
Transfers into the level 3 portfolio | 2 | |
Transfers out of the level 3 portfolio | (39) | |
Ending Balance | 696 | |
Previously stated [member] | Financial Assets, Excluding Derivatives [Member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Movements in Level 3 Portfolio [Line Items] | ||
Beginning Balance | £ 4,382 | 4,700 |
Exchange and other adjustments | (25) | |
Gains recognised in the income statement within other income | 202 | |
(Losses) gains recognised in other comprehensive income within the revaluation reserve in respect of financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) | (117) | |
Purchases/increases to customer loans | 815 | |
Sales | (1,066) | |
Transfers into the level 3 portfolio | 154 | |
Transfers out of the level 3 portfolio | (281) | |
Ending Balance | 4,382 | |
Gains (losses) recognised in the income statement, within other income, relating to the change in fair value of those assets held at 31 December | £ 125 |
FINANCIAL INSTRUMENTS (Detail_5
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives [Line Items] | ||
Liabilities held at fair value through profit or loss | £ 7,096 | |
Trading liabilities: | ||
Trading Liabilities | 23,451 | |
Total financial liabilities carried at fair value, excluding derivatives | 30,547 | £ 50,935 |
Level 1 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives [Line Items] | ||
Liabilities held at fair value through profit or loss | ||
Trading liabilities: | ||
Trading Liabilities | 1,464 | |
Total financial liabilities carried at fair value, excluding derivatives | 1,464 | |
Level 2 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives [Line Items] | ||
Liabilities held at fair value through profit or loss | 7,085 | |
Trading liabilities: | ||
Trading Liabilities | 21,987 | |
Total financial liabilities carried at fair value, excluding derivatives | 29,072 | |
Level 3 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives [Line Items] | ||
Liabilities held at fair value through profit or loss | 11 | |
Trading liabilities: | ||
Total financial liabilities carried at fair value, excluding derivatives | 11 | |
Previously stated [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives [Line Items] | ||
Liabilities held at fair value through profit or loss | 7,815 | |
Trading liabilities: | ||
Trading Liabilities | 43,062 | |
Total financial liabilities carried at fair value, excluding derivatives | 50,877 | |
Previously stated [member] | Level 1 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives [Line Items] | ||
Liabilities held at fair value through profit or loss | 3 | |
Trading liabilities: | ||
Trading Liabilities | 1,106 | |
Total financial liabilities carried at fair value, excluding derivatives | 1,109 | |
Previously stated [member] | Level 2 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Financial Liabilities Excluding Derivatives [Line Items] | ||
Liabilities held at fair value through profit or loss | 7,812 | |
Trading liabilities: | ||
Trading Liabilities | 41,956 | |
Total financial liabilities carried at fair value, excluding derivatives | 49,768 | |
Securities Sold under Agreements to Repurchase [Member] | ||
Trading liabilities: | ||
Trading Liabilities | 21,595 | |
Securities Sold under Agreements to Repurchase [Member] | Level 2 of fair value hierarchy [member] | ||
Trading liabilities: | ||
Trading Liabilities | 21,595 | |
Securities Sold under Agreements to Repurchase [Member] | Previously stated [member] | ||
Trading liabilities: | ||
Trading Liabilities | 41,378 | |
Securities Sold under Agreements to Repurchase [Member] | Previously stated [member] | Level 2 of fair value hierarchy [member] | ||
Trading liabilities: | ||
Trading Liabilities | 41,378 | |
Deposits [Member] | ||
Trading liabilities: | ||
Trading Liabilities | 242 | |
Deposits [Member] | Level 2 of fair value hierarchy [member] | ||
Trading liabilities: | ||
Trading Liabilities | 242 | |
Deposits [Member] | Previously stated [member] | ||
Trading liabilities: | ||
Trading Liabilities | 381 | |
Deposits [Member] | Previously stated [member] | Level 2 of fair value hierarchy [member] | ||
Trading liabilities: | ||
Trading Liabilities | 381 | |
Short [Member] | ||
Trading liabilities: | ||
Trading Liabilities | 1,614 | |
Short [Member] | Level 1 of fair value hierarchy [member] | ||
Trading liabilities: | ||
Trading Liabilities | 1,464 | |
Short [Member] | Level 2 of fair value hierarchy [member] | ||
Trading liabilities: | ||
Trading Liabilities | £ 150 | |
Short [Member] | Previously stated [member] | ||
Trading liabilities: | ||
Trading Liabilities | 1,303 | |
Short [Member] | Previously stated [member] | Level 1 of fair value hierarchy [member] | ||
Trading liabilities: | ||
Trading Liabilities | 1,106 | |
Short [Member] | Previously stated [member] | Level 2 of fair value hierarchy [member] | ||
Trading liabilities: | ||
Trading Liabilities | £ 197 |
FINANCIAL INSTRUMENTS (Detail_6
FINANCIAL INSTRUMENTS (Details) - Schedule of Movement in Level 3 Financial Liabilities - Excluding Derivatives [Member] - Level 3 of fair value hierarchy [member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS (Details) - Schedule of Movement in Level 3 Financial Liabilities [Line Items] | ||
Beginning Balance | £ 2 | |
Losses (gains) recognised in the income statement within other income | £ (2) | |
Transfers into the level 3 portfolio | £ 11 | |
End Balance | £ 11 |
FINANCIAL INSTRUMENTS (Detail_7
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | ||
Derivative assets | £ 23,595 | £ 25,474 |
Derivative liabilities | (21,373) | (26,124) |
Level 1 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | ||
Derivative assets | 93 | |
Derivative liabilities | (132) | |
Level 2 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | ||
Derivative assets | 22,575 | |
Derivative liabilities | (20,525) | |
Level 3 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | ||
Derivative assets | 927 | |
Derivative liabilities | £ (716) | |
Previously stated [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | ||
Derivative assets | 25,834 | |
Derivative liabilities | (26,124) | |
Previously stated [member] | Level 1 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | ||
Derivative assets | 246 | |
Derivative liabilities | (587) | |
Previously stated [member] | Level 2 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | ||
Derivative assets | 24,532 | |
Derivative liabilities | (24,733) | |
Previously stated [member] | Level 3 of fair value hierarchy [member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Derivatives [Line Items] | ||
Derivative assets | 1,056 | |
Derivative liabilities | £ (804) |
FINANCIAL INSTRUMENTS (Detail_8
FINANCIAL INSTRUMENTS (Details) - Schedule of Level 3 Derivative Assets and Liabilities - Level 3 of fair value hierarchy [member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative assets [Member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Level 3 Derivative Assets and Liabilities [Line Items] | ||
Beginning Balance | £ 1,056 | £ 1,399 |
Exchange and other adjustments | 7 | 24 |
Losses (gains) recognised in the income statement within other income | (84) | (208) |
Purchases (additions) | 103 | |
(Sales) redemptions | (52) | (79) |
Transfers into the level 3 portfolio | 33 | |
Transfers out of the level 3 portfolio | (216) | |
Ending Balance | 927 | 1,056 |
Derivative assets [Member] | Other Income [Member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Level 3 Derivative Assets and Liabilities [Line Items] | ||
Losses (gains) recognised in the income statement within other income | (424) | (208) |
Derivative liabilities [Member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Level 3 Derivative Assets and Liabilities [Line Items] | ||
Beginning Balance | (804) | (960) |
Exchange and other adjustments | (5) | (20) |
Losses (gains) recognised in the income statement within other income | 49 | 215 |
Purchases (additions) | (68) | (18) |
(Sales) redemptions | 112 | 53 |
Transfers into the level 3 portfolio | (74) | |
Ending Balance | (716) | (804) |
Derivative liabilities [Member] | Other Income [Member] | ||
FINANCIAL INSTRUMENTS (Details) - Schedule of Level 3 Derivative Assets and Liabilities [Line Items] | ||
Losses (gains) recognised in the income statement within other income | £ 82 | £ 213 |
FINANCIAL INSTRUMENTS (Detail_9
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Adjustment Movements - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Valuation Adjustment Movements [Abstract] | ||
At 1 January | £ 521 | £ 744 |
Income statement charge (credit) | 47 | (260) |
Transfers | (6) | 37 |
At 31 December | £ 562 | £ 521 |
FINANCIAL INSTRUMENTS (Detai_10
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Adjustments - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Adjustments [Line Items] | |||
Valuation Adjustment | £ 562 | £ 521 | £ 744 |
Credit Valuation Adjustment [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Adjustments [Line Items] | |||
Valuation Adjustment | 409 | 408 | |
Debit Valuation Adjustment [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Adjustments [Line Items] | |||
Valuation Adjustment | (79) | (37) | |
Funding Valuation Adjustment [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Adjustments [Line Items] | |||
Valuation Adjustment | £ 232 | £ 150 |
FINANCIAL INSTRUMENTS (Detai_11
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Loans and advances to customers | £ 484,858 | £ 461,016 | |
Debt securities | 91,168 | 72,402 | |
Asset-backed securities | 24,491 | 42,338 | |
158,529 | 176,008 | ||
21,373 | 26,124 | ||
Derivative financial instruments | 23,595 | 25,474 | |
Level 3 financial assets carried at fair value | 206,939 | 230,810 | |
Trading and other financial liabilities at fair value through profit or loss | 30,547 | 50,935 | |
Level 3 financial liabilities carried at fair value | 51,920 | 77,001 | |
Level 3 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Loans and advances to customers | 444,177 | 455,253 | |
716 | |||
Derivative financial instruments | 927 | ||
Trading and other financial liabilities at fair value through profit or loss | 11 | ||
Level 3 of fair value hierarchy [member] | Favourable changes [Member] | Financial assets at fair value, class [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Level 3 financial assets carried at fair value | 15,111 | 5,438 | |
Level 3 of fair value hierarchy [member] | Financial liabilities at fair value, class [member] | Favourable changes [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Level 3 financial liabilities carried at fair value | 727 | 804 | |
Financial liabilities at fair value through profit or loss, category [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Trading and other financial liabilities at fair value through profit or loss | [1] | ||
Financial liabilities at fair value through profit or loss, category [member] | Gross carrying amount [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Trading and other financial liabilities at fair value through profit or loss | [1] | ||
Financial liabilities at fair value through profit or loss, category [member] | Favourable changes [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Trading and other financial liabilities at fair value through profit or loss | 11 | ||
Financial liabilities at fair value through profit or loss, category [member] | Unfavourable changes [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Trading and other financial liabilities at fair value through profit or loss | [1] | ||
Derivative liabilities [Member] | Favourable changes [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
716 | 804 | ||
Derivative liabilities [Member] | Favourable changes [Member] | Interest rate volatility [Member] | Option pricing model [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Interest rate derivatives | [1] | 716 | 804 |
Derivative liabilities [Member] | Unfavourable changes [Member] | Interest rate volatility [Member] | Option pricing model [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Interest rate derivatives | [1] | ||
Financial assets at fair value through profit or loss, category [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Loans and advances to customers | 37,850 | 29,976 | |
Debt securities | 7,085 | 7,812 | |
158,529 | |||
Financial assets at fair value through profit or loss, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | (5) | ||
Financial assets at fair value through profit or loss, category [member] | Earnings multiple [Member] | Market approach [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | (65) | ||
Financial assets at fair value through profit or loss, category [member] | Gross carrying amount [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Loans and advances to customers | (371) | ||
Financial assets at fair value through profit or loss, category [member] | Gross carrying amount [member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | [2] | (57) | |
Financial assets at fair value through profit or loss, category [member] | Gross carrying amount [member] | Credit spreads [Member] | Discounted cash flow [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Debt securities | (21) | ||
Financial assets at fair value through profit or loss, category [member] | Gross carrying amount [member] | Earnings multiple [Member] | Market approach [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | (55) | ||
Financial assets at fair value through profit or loss, category [member] | Favourable changes [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Loans and advances to customers | 10,565 | ||
13,917 | 3,686 | ||
Financial assets at fair value through profit or loss, category [member] | Favourable changes [Member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | [1],[2] | 523 | 50 |
Financial assets at fair value through profit or loss, category [member] | Favourable changes [Member] | Credit spreads [Member] | Discounted cash flow [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Debt securities | [1] | 274 | 11 |
Financial assets at fair value through profit or loss, category [member] | Favourable changes [Member] | Earnings multiple [Member] | Market approach [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | [1] | 1,657 | 1,879 |
Financial assets at fair value through profit or loss, category [member] | Unfavourable changes [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Loans and advances to customers | 380 | ||
Financial assets at fair value through profit or loss, category [member] | Unfavourable changes [Member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | [1],[2] | 48 | 5 |
Financial assets at fair value through profit or loss, category [member] | Unfavourable changes [Member] | Credit spreads [Member] | Discounted cash flow [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Debt securities | [1] | 92 | |
Financial assets at fair value through profit or loss, category [member] | Unfavourable changes [Member] | Earnings multiple [Member] | Market approach [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | [1] | 54 | 65 |
Financial assets at fair value through profit or loss, category [member] | Level 3 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Loans and advances to customers | 10,565 | ||
13,917 | |||
Financial assets available-for-sale, category [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Asset-backed securities | 40,901 | ||
42,098 | |||
Financial assets available-for-sale, category [member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | (42) | ||
Financial assets available-for-sale, category [member] | Gross carrying amount [member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | (2) | ||
Financial assets available-for-sale, category [member] | Favourable changes [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
267 | 696 | ||
Financial assets available-for-sale, category [member] | Favourable changes [Member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | [1] | 21 | 604 |
Financial assets available-for-sale, category [member] | Unfavourable changes [Member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Equity and venture capital investments | [1] | 2 | 83 |
Financial assets available-for-sale, category [member] | Level 3 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
696 | |||
Derivative assets [Member] | Interest rate volatility [Member] | Option pricing model [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Interest rate derivatives | (3) | ||
Derivative assets [Member] | Gross carrying amount [member] | Interest rate volatility [Member] | Option pricing model [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Interest rate derivatives | (5) | ||
Derivative assets [Member] | Favourable changes [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Derivative financial instruments | 927 | 1,056 | |
Derivative assets [Member] | Favourable changes [Member] | Interest rate volatility [Member] | Option pricing model [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Interest rate derivatives | [1] | 927 | 1,056 |
Derivative assets [Member] | Unfavourable changes [Member] | Interest rate volatility [Member] | Option pricing model [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Interest rate derivatives | [1] | 7 | 11 |
Discounted cash flow [member] | Financial assets at fair value through profit or loss, category [member] | Broker quotes [Member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Unlisted equities and debt securities, property partnerships in the life funds | (76) | ||
Discounted cash flow [member] | Financial assets at fair value through profit or loss, category [member] | Gross carrying amount [member] | Broker quotes [Member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Unlisted equities and debt securities, property partnerships in the life funds | (45) | ||
Discounted cash flow [member] | Financial assets at fair value through profit or loss, category [member] | Favourable changes [Member] | Broker quotes [Member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Unlisted equities and debt securities, property partnerships in the life funds | [1] | 898 | 1,746 |
Discounted cash flow [member] | Financial assets at fair value through profit or loss, category [member] | Unfavourable changes [Member] | Broker quotes [Member] | Underlying asset/net asset value (incl. property prices) [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Unlisted equities and debt securities, property partnerships in the life funds | [1] | 2 | 26 |
Consensus pricing [member] | Financial assets available-for-sale, category [member] | Broker quotes [Member] | Lead manager [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Asset-backed securities | (4) | ||
Consensus pricing [member] | Financial assets available-for-sale, category [member] | Gross carrying amount [member] | Broker quotes [Member] | Lead manager [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Asset-backed securities | (5) | ||
Consensus pricing [member] | Financial assets available-for-sale, category [member] | Favourable changes [Member] | Broker quotes [Member] | Lead manager [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Asset-backed securities | [1] | 246 | £ 92 |
Consensus pricing [member] | Financial assets available-for-sale, category [member] | Unfavourable changes [Member] | Broker quotes [Member] | Lead manager [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Sensitivity of Level 3 Valuations [Line Items] | |||
Asset-backed securities | [1] | £ 3 | |
[1] | Where the exposure to an unobservable input is managed on a net basis, only the net impact is shown in the table. | ||
[2] | Underlying asset/net asset values represent fair value. |
FINANCIAL INSTRUMENTS (Detai_12
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Assets - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets at amortised cost: | ||
Loans and advances to customers | £ 484,858 | £ 461,016 |
Loans and advances to banks | 6,283 | 4,246 |
Debt securities | 5,238 | 3,314 |
Level 2 of fair value hierarchy [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 40,483 | 16,832 |
Loans and advances to banks | 461 | 771 |
Debt securities | 5,233 | 3,571 |
Level 3 of fair value hierarchy [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 444,177 | 455,253 |
Loans and advances to banks | 5,825 | 5,793 |
Debt securities | 11 | 15 |
Purchased or originated credit-impaired [member] | Level 3 of fair value hierarchy [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 15,313 | |
Reverse Repurchase Agreement [Member] | Level 2 of fair value hierarchy [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 40,483 | 16,832 |
Loans and advances to banks | 461 | 771 |
Gross carrying amount [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 484,858 | 472,498 |
Loans and advances to banks | 6,283 | 6,611 |
Debt securities | 5,238 | 3,643 |
Gross carrying amount [member] | Purchased or originated credit-impaired [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 15,313 | |
Gross carrying amount [member] | Reverse Repurchase Agreement [Member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 40,483 | 16,832 |
Loans and advances to banks | 461 | 771 |
At fair value [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 484,660 | 472,085 |
Loans and advances to banks | 6,286 | 6,564 |
Debt securities | 5,244 | 3,586 |
At fair value [member] | Purchased or originated credit-impaired [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 15,313 | |
At fair value [member] | Reverse Repurchase Agreement [Member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 40,483 | 16,832 |
Loans and advances to banks | 461 | 771 |
Stage 1 [member] | Level 2 of fair value hierarchy [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 40,483 | |
Stage 1 [member] | Level 3 of fair value hierarchy [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 400,059 | |
Stage 1 [member] | Gross carrying amount [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 441,006 | |
Stage 1 [member] | At fair value [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 440,542 | |
Stage 2 [member] | Level 3 of fair value hierarchy [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 25,516 | |
Stage 2 [member] | Gross carrying amount [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 24,351 | |
Stage 2 [member] | At fair value [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 25,516 | |
Stage 3 [member] | Level 3 of fair value hierarchy [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 3,289 | |
Stage 3 [member] | Gross carrying amount [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 4,188 | |
Stage 3 [member] | At fair value [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | £ 3,289 | |
Unimpaired [Member] | Level 2 of fair value hierarchy [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 16,832 | |
Unimpaired [Member] | Level 3 of fair value hierarchy [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 450,444 | |
Unimpaired [Member] | Gross carrying amount [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 467,670 | |
Unimpaired [Member] | At fair value [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 467,276 | |
Financial assets impaired [member] | Level 3 of fair value hierarchy [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 4,809 | |
Financial assets impaired [member] | Gross carrying amount [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | 4,828 | |
Financial assets impaired [member] | At fair value [member] | ||
Financial assets at amortised cost: | ||
Loans and advances to customers | £ 4,809 |
FINANCIAL INSTRUMENTS (Detai_13
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | £ 30,320 | £ 29,804 | |
Customer deposits | 418,066 | 418,124 | |
Debt securities in issue | 91,168 | 72,402 | |
Subordinated liabilities | 17,656 | 17,922 | £ 19,831 |
Level 2 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 30,322 | 29,798 | |
Customer deposits | 412,283 | 411,591 | |
Debt securities in issue | 93,233 | 75,756 | |
Subordinated liabilities | 19,564 | 21,398 | |
Level 2 of fair value hierarchy [member] | Repurchase Agreement [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 21,170 | 23,175 | |
Customer deposits | 1,818 | 2,638 | |
Level 3 of fair value hierarchy [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Customer deposits | 6,167 | 6,850 | |
Gross carrying amount [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 30,320 | 29,804 | |
Customer deposits | 418,066 | 418,124 | |
Debt securities in issue | 91,168 | 72,450 | |
Subordinated liabilities | 17,656 | 17,922 | |
Gross carrying amount [member] | Repurchase Agreement [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 21,170 | 23,175 | |
Customer deposits | 1,818 | 2,638 | |
At fair value [member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 30,322 | 29,798 | |
Customer deposits | 418,450 | 418,441 | |
Debt securities in issue | 93,233 | 75,756 | |
Subordinated liabilities | 19,564 | 21,398 | |
At fair value [member] | Repurchase Agreement [Member] | |||
FINANCIAL INSTRUMENTS (Details) - Schedule of Valuation Hierarchy for Financial Liabilities [Line Items] | |||
Deposits from banks | 21,170 | 23,175 | |
Customer deposits | £ 1,818 | £ 2,638 |
TRANSFERS OF FINANCIAL ASSETS_2
TRANSFERS OF FINANCIAL ASSETS (Details) - Securitisations [member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
TRANSFERS OF FINANCIAL ASSETS (Details) [Line Items] | ||
Fair value of associated financial liabilities | £ 31,701 | |
Notes and debentures issued | £ 21,536 |
TRANSFERS OF FINANCIAL ASSETS_3
TRANSFERS OF FINANCIAL ASSETS (Details) - Schedule of Transfered Assets and Liabilities - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Repurchase agreement & stock lending [Member] | Carrying value of transferred assets [Member] | |||
TRANSFERS OF FINANCIAL ASSETS (Details) - Schedule of Transfered Assets and Liabilities [Line Items] | |||
Financial assets at fair value through profit or loss | £ 6,815 | £ 9,946 | |
Financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) | 7,279 | 19,359 | |
Repurchase agreement & stock lending [Member] | Carrying value of associated liabilities [Member] | |||
TRANSFERS OF FINANCIAL ASSETS (Details) - Schedule of Transfered Assets and Liabilities [Line Items] | |||
Financial assets at fair value through profit or loss | 961 | 3,257 | |
Financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) | 5,337 | 16,753 | |
Securitisation programme [Member] | Carrying value of transferred assets [Member] | |||
Financial assets at amortised cost: | |||
Loans and advances to customers | [1] | 41,674 | 35,475 |
Securitisation programme [Member] | Carrying value of associated liabilities [Member] | |||
Financial assets at amortised cost: | |||
Loans and advances to customers | [1] | £ 5,479 | £ 3,660 |
[1] | The carrying value of associated liabilities excludes securitisation notes held by the Group of 31,701 million (31 December 2017: 21,536 million). |
OFFSETTING OF FINANCIAL ASSET_3
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - Schedule of Offsetting of Financial Assets and Liabilities - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Gross assets and liabilities [Member] | ||||
Financial assets | ||||
Financial assets at fair value through other comprehensive income | £ 24,815 | |||
Loans and advances to customers | [1] | £ 474,214 | ||
Gross assets and liabilities [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [1] | 457,382 | ||
Gross assets and liabilities [Member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [1] | 16,832 | ||
Gross assets and liabilities [Member] | Deposits From Banks [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | [1] | 30,320 | 29,804 | |
Gross assets and liabilities [Member] | Deposits From Banks [Member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | [1] | 9,150 | 6,629 | |
Gross assets and liabilities [Member] | Deposits From Banks [Member] | Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | [1] | 21,170 | 23,175 | |
Gross assets and liabilities [Member] | Deposits from Customers [Member] | ||||
Financial liabilities | ||||
Customer deposits: | [1] | 419,470 | 419,647 | |
Gross assets and liabilities [Member] | Deposits from Customers [Member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Customer deposits: | [1] | 417,652 | 417,009 | |
Gross assets and liabilities [Member] | Deposits from Customers [Member] | Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Customer deposits: | [1] | 1,818 | 2,638 | |
Gross assets and liabilities [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | [1] | 37,673 | 58,169 | |
Gross assets and liabilities [Member] | Financial liabilities at fair value through profit or loss, category [member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | [1] | 8,952 | 9,499 | |
Gross assets and liabilities [Member] | Financial liabilities at fair value through profit or loss, category [member] | Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | [1] | 28,721 | 48,670 | |
Gross assets and liabilities [Member] | Derivative liabilities [Member] | ||||
Financial liabilities | ||||
Derivative financial instruments | [1] | 77,626 | 73,352 | |
Gross assets and liabilities [Member] | Financial assets at fair value through profit or loss, category [member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | [1] | 163,644 | 170,170 | |
Gross assets and liabilities [Member] | Financial assets at fair value through profit or loss, category [member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | [1] | 130,172 | 131,288 | |
Gross assets and liabilities [Member] | Financial assets at fair value through profit or loss, category [member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | [1] | 33,472 | 38,882 | |
Gross assets and liabilities [Member] | Derivative assets [Member] | ||||
Financial assets | ||||
Derivative financial instruments | [1] | 78,607 | 72,869 | |
Gross assets and liabilities [Member] | Loans and Advances to Banks [Member] | ||||
Financial assets | ||||
Loans and advances to banks | 6,283 | 6,611 | [1] | |
Gross assets and liabilities [Member] | Loans and Advances to Banks [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to banks | [1] | 5,822 | 5,840 | |
Gross assets and liabilities [Member] | Loans and Advances to Banks [Member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to banks | [1] | 461 | 771 | |
Gross assets and liabilities [Member] | Loans and advances to customers [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [1] | 489,514 | ||
Gross assets and liabilities [Member] | Loans and advances to customers [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [1] | 447,020 | ||
Gross assets and liabilities [Member] | Loans and advances to customers [Member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [1] | 42,494 | ||
Gross assets and liabilities [Member] | Debt securities [member] | ||||
Financial assets | ||||
Debt securities | [1] | 5,238 | 3,643 | |
Gross assets and liabilities [Member] | Financial assets available-for-sale, category [member] | ||||
Financial assets | ||||
Available-for-sale financial assets | [1] | 42,098 | ||
Net amounts presented in the balance sheet [Member] | ||||
Financial assets | ||||
Financial assets at fair value through other comprehensive income | 24,815 | |||
Loans and advances to customers | 472,498 | |||
Net amounts presented in the balance sheet [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | 455,666 | |||
Net amounts presented in the balance sheet [Member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | 16,832 | |||
Net amounts presented in the balance sheet [Member] | Deposits From Banks [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | 30,320 | 29,804 | ||
Net amounts presented in the balance sheet [Member] | Deposits From Banks [Member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | 9,150 | 6,629 | ||
Net amounts presented in the balance sheet [Member] | Deposits From Banks [Member] | Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | 21,170 | 23,175 | ||
Net amounts presented in the balance sheet [Member] | Deposits from Customers [Member] | ||||
Financial liabilities | ||||
Customer deposits: | 418,066 | 418,124 | ||
Net amounts presented in the balance sheet [Member] | Deposits from Customers [Member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Customer deposits: | 416,248 | 415,486 | ||
Net amounts presented in the balance sheet [Member] | Deposits from Customers [Member] | Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Customer deposits: | 1,818 | 2,638 | ||
Net amounts presented in the balance sheet [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | 30,547 | 50,877 | ||
Net amounts presented in the balance sheet [Member] | Financial liabilities at fair value through profit or loss, category [member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | 8,952 | 9,499 | ||
Net amounts presented in the balance sheet [Member] | Financial liabilities at fair value through profit or loss, category [member] | Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | 21,595 | 41,378 | ||
Net amounts presented in the balance sheet [Member] | Derivative liabilities [Member] | ||||
Financial liabilities | ||||
Derivative financial instruments | 21,373 | 26,124 | ||
Net amounts presented in the balance sheet [Member] | Financial assets at fair value through profit or loss, category [member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | 158,529 | 162,878 | ||
Net amounts presented in the balance sheet [Member] | Financial assets at fair value through profit or loss, category [member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | 130,172 | 131,288 | ||
Net amounts presented in the balance sheet [Member] | Financial assets at fair value through profit or loss, category [member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | 28,357 | 31,590 | ||
Net amounts presented in the balance sheet [Member] | Derivative assets [Member] | ||||
Financial assets | ||||
Derivative financial instruments | 23,595 | 25,834 | ||
Net amounts presented in the balance sheet [Member] | Loans and Advances to Banks [Member] | ||||
Financial assets | ||||
Loans and advances to banks | 6,283 | 6,611 | ||
Net amounts presented in the balance sheet [Member] | Loans and Advances to Banks [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to banks | 5,822 | 5,840 | ||
Net amounts presented in the balance sheet [Member] | Loans and Advances to Banks [Member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to banks | 461 | 771 | ||
Net amounts presented in the balance sheet [Member] | Loans and advances to customers [Member] | ||||
Financial assets | ||||
Loans and advances to customers | 484,858 | |||
Net amounts presented in the balance sheet [Member] | Loans and advances to customers [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | 444,375 | |||
Net amounts presented in the balance sheet [Member] | Loans and advances to customers [Member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | 40,483 | |||
Net amounts presented in the balance sheet [Member] | Debt securities [member] | ||||
Financial assets | ||||
Debt securities | 5,238 | 3,643 | ||
Net amounts presented in the balance sheet [Member] | Financial assets available-for-sale, category [member] | ||||
Financial assets | ||||
Available-for-sale financial assets | 42,098 | |||
Non-cash collateral received/pledged [Member] | ||||
Financial assets | ||||
Financial assets at fair value through other comprehensive income | (5,361) | |||
Loans and advances to customers | [2] | (23,862) | ||
Non-cash collateral received/pledged [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [2] | (7,030) | ||
Non-cash collateral received/pledged [Member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [2] | (16,832) | ||
Non-cash collateral received/pledged [Member] | Deposits From Banks [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | (21,170) | (23,175) | [2] | |
Non-cash collateral received/pledged [Member] | Deposits From Banks [Member] | Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | [2] | (21,170) | (23,175) | |
Non-cash collateral received/pledged [Member] | Deposits from Customers [Member] | ||||
Financial liabilities | ||||
Customer deposits: | [2] | (5,059) | (9,668) | |
Non-cash collateral received/pledged [Member] | Deposits from Customers [Member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Customer deposits: | [2] | (3,241) | (7,030) | |
Non-cash collateral received/pledged [Member] | Deposits from Customers [Member] | Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Customer deposits: | [2] | (1,818) | (2,638) | |
Non-cash collateral received/pledged [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | [2] | (21,595) | (41,378) | |
Non-cash collateral received/pledged [Member] | Financial liabilities at fair value through profit or loss, category [member] | Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | [2] | (21,595) | (41,378) | |
Non-cash collateral received/pledged [Member] | Derivative liabilities [Member] | ||||
Financial liabilities | ||||
Derivative financial instruments | [2] | (17,313) | (17,459) | |
Non-cash collateral received/pledged [Member] | Financial assets at fair value through profit or loss, category [member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | [2] | (28,713) | (34,912) | |
Non-cash collateral received/pledged [Member] | Financial assets at fair value through profit or loss, category [member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | [2] | (978) | (3,322) | |
Non-cash collateral received/pledged [Member] | Financial assets at fair value through profit or loss, category [member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | [2] | (27,735) | (31,590) | |
Non-cash collateral received/pledged [Member] | Derivative assets [Member] | ||||
Financial assets | ||||
Derivative financial instruments | [2] | (15,642) | (13,807) | |
Non-cash collateral received/pledged [Member] | Loans and Advances to Banks [Member] | ||||
Financial assets | ||||
Loans and advances to banks | (461) | (125) | [2] | |
Non-cash collateral received/pledged [Member] | Loans and Advances to Banks [Member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to banks | [2] | (461) | (125) | |
Non-cash collateral received/pledged [Member] | Loans and advances to customers [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [2] | (43,724) | ||
Non-cash collateral received/pledged [Member] | Loans and advances to customers [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [2] | (3,241) | ||
Non-cash collateral received/pledged [Member] | Loans and advances to customers [Member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [2] | (40,483) | ||
Non-cash collateral received/pledged [Member] | Financial assets available-for-sale, category [member] | ||||
Financial assets | ||||
Available-for-sale financial assets | [2] | (16,751) | ||
Potential net amounts if offset of related amounts permitted [Member] | ||||
Financial assets | ||||
Financial assets at fair value through other comprehensive income | 19,454 | |||
Loans and advances to customers | 446,980 | |||
Potential net amounts if offset of related amounts permitted [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | 446,980 | |||
Potential net amounts if offset of related amounts permitted [Member] | Deposits From Banks [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | 3,859 | 1,769 | ||
Potential net amounts if offset of related amounts permitted [Member] | Deposits From Banks [Member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | 3,859 | 1,769 | ||
Potential net amounts if offset of related amounts permitted [Member] | Deposits from Customers [Member] | ||||
Financial liabilities | ||||
Customer deposits: | 411,637 | 407,251 | ||
Potential net amounts if offset of related amounts permitted [Member] | Deposits from Customers [Member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Customer deposits: | 411,637 | 407,251 | ||
Potential net amounts if offset of related amounts permitted [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | 8,952 | 9,499 | ||
Potential net amounts if offset of related amounts permitted [Member] | Financial liabilities at fair value through profit or loss, category [member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | 8,952 | 9,499 | ||
Potential net amounts if offset of related amounts permitted [Member] | Derivative liabilities [Member] | ||||
Financial liabilities | ||||
Derivative financial instruments | 65 | 4,716 | ||
Potential net amounts if offset of related amounts permitted [Member] | Financial assets at fair value through profit or loss, category [member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | 129,194 | 127,966 | ||
Potential net amounts if offset of related amounts permitted [Member] | Financial assets at fair value through profit or loss, category [member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | 129,194 | 127,966 | ||
Potential net amounts if offset of related amounts permitted [Member] | Derivative assets [Member] | ||||
Financial assets | ||||
Derivative financial instruments | 1,914 | 6,608 | ||
Potential net amounts if offset of related amounts permitted [Member] | Loans and Advances to Banks [Member] | ||||
Financial assets | ||||
Loans and advances to banks | 3,146 | 3,547 | ||
Potential net amounts if offset of related amounts permitted [Member] | Loans and Advances to Banks [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to banks | 3,146 | 3,547 | ||
Potential net amounts if offset of related amounts permitted [Member] | Loans and advances to customers [Member] | ||||
Financial assets | ||||
Loans and advances to customers | 439,815 | |||
Potential net amounts if offset of related amounts permitted [Member] | Loans and advances to customers [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | 439,815 | |||
Potential net amounts if offset of related amounts permitted [Member] | Debt securities [member] | ||||
Financial assets | ||||
Debt securities | 5,238 | 3,643 | ||
Potential net amounts if offset of related amounts permitted [Member] | Financial assets available-for-sale, category [member] | ||||
Financial assets | ||||
Available-for-sale financial assets | 25,347 | |||
Offset [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [3] | (1,716) | ||
Offset [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [3] | (1,716) | ||
Offset [Member] | Deposits from Customers [Member] | ||||
Financial liabilities | ||||
Customer deposits: | [3] | (1,404) | (1,523) | |
Offset [Member] | Deposits from Customers [Member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Customer deposits: | [3] | (1,404) | (1,523) | |
Offset [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | [3] | (7,126) | (7,292) | |
Offset [Member] | Financial liabilities at fair value through profit or loss, category [member] | Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Trading and other financial liabilities at fair value through profit or loss: | [3] | (7,126) | (7,292) | |
Offset [Member] | Derivative liabilities [Member] | ||||
Financial liabilities | ||||
Derivative financial instruments | [3] | (56,253) | (47,228) | |
Offset [Member] | Financial assets at fair value through profit or loss, category [member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | [3] | (5,115) | (7,292) | |
Offset [Member] | Financial assets at fair value through profit or loss, category [member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | [3] | (5,115) | (7,292) | |
Offset [Member] | Derivative assets [Member] | ||||
Financial assets | ||||
Derivative financial instruments | [3] | (55,012) | (47,035) | |
Offset [Member] | Loans and advances to customers [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [3] | (4,656) | ||
Offset [Member] | Loans and advances to customers [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [3] | (2,645) | ||
Offset [Member] | Loans and advances to customers [Member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [3] | (2,011) | ||
Cash collateral received/pledged [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [2] | (1,656) | ||
Cash collateral received/pledged [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [2] | (1,656) | ||
Cash collateral received/pledged [Member] | Deposits From Banks [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | [2] | (5,291) | (4,860) | |
Cash collateral received/pledged [Member] | Deposits From Banks [Member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Deposits from banks: | [2] | (5,291) | (4,860) | |
Cash collateral received/pledged [Member] | Deposits from Customers [Member] | ||||
Financial liabilities | ||||
Customer deposits: | [2] | (1,370) | (1,205) | |
Cash collateral received/pledged [Member] | Deposits from Customers [Member] | Excluding Repurchase Agreement [Member] | ||||
Financial liabilities | ||||
Customer deposits: | [2] | (1,370) | (1,205) | |
Cash collateral received/pledged [Member] | Derivative liabilities [Member] | ||||
Financial liabilities | ||||
Derivative financial instruments | [2] | (3,995) | (3,949) | |
Cash collateral received/pledged [Member] | Financial assets at fair value through profit or loss, category [member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | [2] | (622) | ||
Cash collateral received/pledged [Member] | Financial assets at fair value through profit or loss, category [member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Trading and other financial assets at fair value through profit or loss | [2] | (622) | ||
Cash collateral received/pledged [Member] | Derivative assets [Member] | ||||
Financial assets | ||||
Derivative financial instruments | [2] | (6,039) | (5,419) | |
Cash collateral received/pledged [Member] | Loans and Advances to Banks [Member] | ||||
Financial assets | ||||
Loans and advances to banks | (2,676) | (2,939) | [2] | |
Cash collateral received/pledged [Member] | Loans and Advances to Banks [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to banks | [2] | (2,676) | (2,293) | |
Cash collateral received/pledged [Member] | Loans and Advances to Banks [Member] | Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to banks | [2] | £ (646) | ||
Cash collateral received/pledged [Member] | Loans and advances to customers [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [2] | (1,319) | ||
Cash collateral received/pledged [Member] | Loans and advances to customers [Member] | Excluding Reverse Repurchase Agreement [Member] | ||||
Financial assets | ||||
Loans and advances to customers | [2] | £ (1,319) | ||
[1] | After impairment allowance. | |||
[2] | The Group enters into derivatives and repurchase and reverse repurchase agreements with various counterparties which are governed by industry standard master netting agreements. The Group holds and provides cash and securities collateral in respect of derivative transactions covered by these agreements. The right to set off balances under these master netting agreements or to set off cash and securities collateral only arises in the event of non-payment or default and, as a result, these arrangements do not qualify for offsetting under IAS 32. | |||
[3] | The amounts set off in the balance sheet as shown above represent derivatives and repurchase agreements with central clearing houses which meet the criteria for offsetting under IAS 32. |
FINANCIAL RISK MANAGEMENT (Deta
FINANCIAL RISK MANAGEMENT (Details) - Interest Rate Risk - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair value hedges [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Interest Rate Risk [Line Items] | ||
Derivative, Notional Amount | £ 150,971 | £ 109,670 |
Hedging instrument, assets | 760 | 738 |
Gains (losses) on hedging instrument, fair value hedges | 94 | (420) |
Gains (losses) on hedged item attributable to hedged risk, fair value hedges | (32) | 484 |
Cash flow hedges [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Interest Rate Risk [Line Items] | ||
Derivative, Notional Amount | 556,945 | 549,099 |
Hedging instrument, liabilities | 486 | 456 |
Gain (loss) on hedge ineffectiveness recognised in profit or loss | £ (25) | £ (21) |
FINANCIAL RISK MANAGEMENT (De_2
FINANCIAL RISK MANAGEMENT (Details) - Currency Risk £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Disclosure of financial risk management [text block] [Abstract] | |
Other comprehensive income, net of tax, hedges of net investments in foreign operations | £ 41 |
Gains (losses) on hedges of net investments in foreign operations, before tax | (11) |
Gains (losses) on hedges of net investments in foreign operations, net of tax | £ (8) |
FINANCIAL RISK MANAGEMENT (De_3
FINANCIAL RISK MANAGEMENT (Details) - Concentrations of Exposure | 12 Months Ended |
Dec. 31, 2018 | |
Loans and Advances to Customers Exposure [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Concentrations of Exposure [Line Items] | |
Percentage of Exposure | 61.00% |
Financial, Business and other Services Exposure [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Concentrations of Exposure [Line Items] | |
Percentage of Exposure | 16.00% |
FINANCIAL RISK MANAGEMENT (De_4
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Financial assets at fair value through profit or loss | £ 158,529 | £ 176,008 | |
Financial assets at fair value through profit or loss, mandatorily measured at fair value | 14,016 | ||
Debt securities | 5,238 | 3,314 | |
Financial assets, at fair value | 206,939 | 230,810 | |
Derivative financial assets | 23,595 | 25,474 | |
Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Derivative financial assets | [1] | 2,264 | |
Loans and advances designated at fair value through profit or loss [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Financial assets at fair value through profit or loss | 27,734 | 31,590 | |
Financial assets at fair value through profit or loss, mandatorily measured at fair value | 13,142 | ||
Net Credit Risk [Member] | Group [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Derivative financial assets | 9,268 | 12,785 | |
Cash collateral received/pledged [Member] | Group [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Derivative financial assets | 6,039 | ||
OECD Banks [Member] | Group [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Derivative financial assets | 213 | ||
Good Quality [Member] | Loans and advances designated at fair value through profit or loss [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Financial assets at fair value through profit or loss | 27,685 | 31,548 | |
Satisfactory Quality [Member] | Loans and advances designated at fair value through profit or loss [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Financial assets at fair value through profit or loss | 49 | 42 | |
Investment Grade [Member] | Loans and advances designated at fair value through profit or loss [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Financial assets at fair value through profit or loss, mandatorily measured at fair value | 12,509 | 13,338 | |
Sub-Investment Grade [Member] | Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Debt securities | 6 | 0 | |
Financial assets, at fair value | 85 | 98 | |
Financial assets at fair value through profit or loss, classified as held for trading | 411 | 331 | |
Derivative financial assets | 1,920 | 1,878 | |
Sub-Investment Grade [Member] | Cash collateral received/pledged [Member] | Group [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Derivative financial assets | 5,419 | ||
Not Rated [Member] | Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Debt securities | 36 | 23 | |
Financial assets, at fair value | 263 | 376 | |
Financial assets at fair value through profit or loss, classified as held for trading | 1,545 | 1,972 | |
Derivative financial assets | 344 | 340 | |
Not Rated [Member] | OECD Banks [Member] | Group [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Derivative financial assets | £ 275 | ||
Stage 3 [member] | Partial Write Off [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Loans and advances to banks and customers | 250 | ||
Loans and advances to banks and customers, outstanding | 2,200 | ||
Stage 2 and Stage 3 [Member] | Modified [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Credit Quality of Assets [Line Items] | |||
Loans and advances to banks and customers | £ 1,000 | ||
[1] | Other comprises sub-investment grade (2018: 1,920 million; 2017: 1,878 million) and not rated (2018: 344 million; 2017: 340 million). |
FINANCIAL RISK MANAGEMENT (De_5
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Loans and advances to customers | £ 484,858 | £ 461,016 |
Allowance for Impairment Losses | 1,276 | |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | 14,327 | 12,785 |
Cash collateral received subject to enforceable master netting arrangement or similar agreement not set off against financial assets | 6,039 | 5,419 |
Gross loan commitments | 135,098 | 135,629 |
Assets obtained by taking possession of collateral or calling on other credit enhancements | 245 | 297 |
Irrevocable Loan Commitments And Contingencies [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Fair Value Of Collateral Held | 10,661 | |
Collateral sold or repledged in absence of default by owner of collateral, at fair value | 10,956 | |
Gross loan commitments | 62,640 | 63,237 |
Loans and Advances to Banks [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Reverse repurchase agreements and cash collateral on securities borrowed | 461 | 771 |
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | 481 | 796 |
Retail Non-Mortgage [Member] | Stage 3 [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Loans and advances to customers | 631 | 817 |
Allowance for Impairment Losses | 366 | 542 |
Retail Non-Mortgage [Member] | Stage 1 and Stage 2 [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Loans and advances to customers | 52,450 | 49,482 |
Commercial loans [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Reverse repurchase agreements and cash collateral on securities borrowed | 40,483 | 16,832 |
Commercial loans [Member] | Stage 3 [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Loans and advances to customers | 658 | 698 |
Allowance for Impairment Losses | 215 | 242 |
Collateralised Loan [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | 42,339 | 17,122 |
Collateralised Loan [Member] | Cash collateral [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | 0 | |
Trading & other financial assets at fair value through profit or loss [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Reverse repurchase agreements and cash collateral on securities borrowed | 28,356 | 31,590 |
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | 36,101 | 39,099 |
Collateral sold or repledged in absence of default by owner of collateral, at fair value | 31,013 | 31,281 |
Trading & other financial assets at fair value through profit or loss [Member] | Stock Borrowing [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | 51,202 | 61,469 |
Collateral sold or repledged in absence of default by owner of collateral, at fair value | 49,233 | 44,432 |
Accumulated impairment [member] | Commercial loans [Member] | Stage 3 [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Held as Security for Financial Assets [Line Items] | ||
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | £ 797 | |
Fair Value Of Collateral Held | £ 590 |
FINANCIAL RISK MANAGEMENT (De_6
FINANCIAL RISK MANAGEMENT (Details) - Collateral Pledged as Security - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT (Details) - Collateral Pledged as Security [Line Items] | ||
Repurchase agreements and cash collateral on securities lent | £ 21,595 | |
Financial assets at fair value through profit or loss, classified as held for trading, category [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Pledged as Security [Line Items] | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | 28,438 | £ 48,765 |
Gross carrying amount [member] | Deposits From Banks [Member] | Repurchase Agreements [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Pledged as Security [Line Items] | ||
Repurchase agreements and cash collateral on securities lent | 21,170 | 23,175 |
Gross carrying amount [member] | Deposits from Customers [Member] | Collateral Pledged [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Pledged as Security [Line Items] | ||
Repurchase agreements and cash collateral on securities lent | 2,638 | |
Gross carrying amount [member] | Deposits from Customers [Member] | Repurchase Agreements [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Pledged as Security [Line Items] | ||
Repurchase agreements and cash collateral on securities lent | 1,818 | |
At fair value [member] | Deposits From Banks [Member] | Collateral Pledged [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Pledged as Security [Line Items] | ||
Repurchase agreements and cash collateral on securities lent | 19,615 | 23,082 |
At fair value [member] | Deposits from Customers [Member] | Collateral Pledged [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Pledged as Security [Line Items] | ||
Repurchase agreements and cash collateral on securities lent | £ 2,640 | |
At fair value [member] | Deposits from Customers [Member] | Repurchase Agreements [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Collateral Pledged as Security [Line Items] | ||
Repurchase agreements and cash collateral on securities lent | £ 1,710 |
FINANCIAL RISK MANAGEMENT (De_7
FINANCIAL RISK MANAGEMENT (Details) - Maturities of Assets and Liabilities - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial risk management [text block] [Abstract] | ||
Undated subordinated liabilities | £ 27 | £ 24 |
FINANCIAL RISK MANAGEMENT (De_8
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Functional Currency of Group Operations - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Euro Member Countries, Euro | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Functional Currency of Group Operations [Line Items] | ||
Gross exposure | £ 112 | £ 73 |
Net investment hedges | (41) | |
Total structural foreign currency exposures, after net investment hedges | 112 | 32 |
United States of America, Dollars | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Functional Currency of Group Operations [Line Items] | ||
Gross exposure | 59 | 374 |
Total structural foreign currency exposures, after net investment hedges | 59 | 374 |
Other Non-Sterling [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Functional Currency of Group Operations [Line Items] | ||
Gross exposure | 60 | 32 |
Total structural foreign currency exposures, after net investment hedges | £ 60 | £ 32 |
FINANCIAL RISK MANAGEMENT (De_9
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maximum Credit Exposure - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Maximum Exposure [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maximum Credit Exposure [Line Items] | |||
Loans and advances to banks, net | [1] | £ 6,283 | £ 6,611 |
Loans and advances to customers, net | [1] | 484,858 | 472,498 |
Debt securities, net | [1] | 5,238 | 3,643 |
Financial assets at amortised cost | 496,379 | 482,752 | |
Financial assets at fair value through other comprehensive income/available-for-sale financial assets | [2] | 24,794 | 40,901 |
Financial assets at fair value through profit or loss:3,4 | |||
Financial assets at fair value through profit or loss | [2],[3] | 81,044 | 76,788 |
Derivative assets | 23,595 | 25,834 | |
Assets arising from reinsurance contracts held | 749 | 602 | |
Off-balance sheet items: | |||
Acceptances and endorsements | 194 | 71 | |
Other items serving as direct credit substitutes | 632 | 740 | |
Performance bonds and other transaction-related contingencies | 2,425 | 2,300 | |
Irrevocable commitments and guarantees | 64,884 | 65,946 | |
68,135 | 69,057 | ||
694,696 | 695,934 | ||
Maximum Exposure [Member] | Loans and advances designated at fair value through profit or loss [Member] | |||
Financial assets at fair value through profit or loss:3,4 | |||
Financial assets at fair value through profit or loss | [2],[3] | 40,876 | 31,590 |
Maximum Exposure [Member] | Debt securities, treasury, and other bills at fair value through profit or loss [Member] | |||
Financial assets at fair value through profit or loss:3,4 | |||
Financial assets at fair value through profit or loss | [2],[3] | 40,168 | 45,198 |
Offset [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maximum Credit Exposure [Line Items] | |||
Loans and advances to banks, net | [1],[4] | ||
Loans and advances to customers, net | [1],[4] | (3,241) | (7,030) |
Debt securities, net | [1],[4] | ||
Financial assets at amortised cost | (3,241) | (7,030) | |
Financial assets at fair value through other comprehensive income/available-for-sale financial assets | [2],[4] | ||
Financial assets at fair value through profit or loss:3,4 | |||
Financial assets at fair value through profit or loss | [2],[3],[4] | ||
Derivative assets | [4] | (14,327) | (13,049) |
Assets arising from reinsurance contracts held | [4] | ||
Off-balance sheet items: | |||
Acceptances and endorsements | [4] | ||
Other items serving as direct credit substitutes | [4] | ||
Performance bonds and other transaction-related contingencies | [4] | ||
Irrevocable commitments and guarantees | [4] | ||
[4] | |||
[4] | (17,568) | (20,079) | |
Offset [Member] | Loans and advances designated at fair value through profit or loss [Member] | |||
Financial assets at fair value through profit or loss:3,4 | |||
Financial assets at fair value through profit or loss | [2],[3],[4] | ||
Offset [Member] | Debt securities, treasury, and other bills at fair value through profit or loss [Member] | |||
Financial assets at fair value through profit or loss:3,4 | |||
Financial assets at fair value through profit or loss | [2],[3],[4] | ||
Net Exposure [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maximum Credit Exposure [Line Items] | |||
Loans and advances to banks, net | [1] | 6,283 | 6,611 |
Loans and advances to customers, net | [1] | 481,617 | 465,468 |
Debt securities, net | [1] | 5,238 | 3,643 |
Financial assets at amortised cost | 493,138 | 475,722 | |
Financial assets at fair value through other comprehensive income/available-for-sale financial assets | [2] | 24,794 | 40,901 |
Financial assets at fair value through profit or loss:3,4 | |||
Financial assets at fair value through profit or loss | [2],[3] | 81,044 | 76,788 |
Derivative assets | 9,268 | 12,785 | |
Assets arising from reinsurance contracts held | 749 | 602 | |
Off-balance sheet items: | |||
Acceptances and endorsements | 194 | 71 | |
Other items serving as direct credit substitutes | 632 | 740 | |
Performance bonds and other transaction-related contingencies | 2,425 | 2,300 | |
Irrevocable commitments and guarantees | 64,884 | 65,946 | |
68,135 | 69,057 | ||
677,128 | 675,855 | ||
Net Exposure [Member] | Loans and advances designated at fair value through profit or loss [Member] | |||
Financial assets at fair value through profit or loss:3,4 | |||
Financial assets at fair value through profit or loss | [2],[3] | 40,876 | 31,590 |
Net Exposure [Member] | Debt securities, treasury, and other bills at fair value through profit or loss [Member] | |||
Financial assets at fair value through profit or loss:3,4 | |||
Financial assets at fair value through profit or loss | [2],[3] | £ 40,168 | £ 45,198 |
[1] | Amounts shown net of related impairment allowances. | ||
[2] | Excluding equity shares. | ||
[3] | Includes assets within the Group's unit-linked funds for which credit risk is borne by the policyholders and assets within the Group's With-Profits funds for which credit risk is largely borne by the policyholders. Consequently, the Group has no significant exposure to credit risk for such assets which back related contract liabilities. | ||
[4] | Offset items comprise deposit amounts available for offset, and amounts available for offset under master netting arrangements, that do not meet the criteria under IAS 32 to enable loans and advances and derivative assets respectively to be presented net of these balances in the financial statements. |
FINANCIAL RISK MANAGEMENT (D_10
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | £ 484,858 | £ 461,016 |
Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 472,498 | |
0000 to 0999 Agriculture, Forestry, and Fishing [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 7,314 | 7,074 |
0000 to 0999 Agriculture, Forestry, and Fishing [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 7,461 | |
Energy and water supply [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 1,517 | 1,384 |
Energy and water supply [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 1,609 | |
2000 to 3999 Manufacturing [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 8,260 | 7,886 |
2000 to 3999 Manufacturing [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 7,886 | |
230000 to 239999 Construction [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 4,684 | 4,378 |
230000 to 239999 Construction [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 4,428 | |
Transport, distribution and hotels [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 14,113 | 14,074 |
Transport, distribution and hotels [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 14,074 | |
Postal and telecommunications [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 2,711 | 2,148 |
Postal and telecommunications [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 2,148 | |
Property companies [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 28,451 | 27,631 |
Property companies [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 30,980 | |
Financial, business and other services [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 77,505 | 50,707 |
Financial, business and other services [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 57,006 | |
Mortgages [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 297,498 | 304,515 |
Mortgages [member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 304,665 | |
Other [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 28,699 | 28,757 |
Other [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 28,757 | |
Gross and Lease Financing [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 1,822 | 2,094 |
Gross and Lease Financing [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 2,094 | |
Hire purchase [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 15,434 | 13,591 |
Hire purchase [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 13,591 | |
Before Allowance for Impairment Losses [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 488,008 | 464,239 |
Before Allowance for Impairment Losses [Member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | 474,699 | |
Allowance for credit losses [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | £ (3,150) | (3,223) |
Allowance for credit losses [member] | Previously stated [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Concentration of Exposure [Line Items] | ||
Loans and advances to customers | £ (2,201) |
FINANCIAL RISK MANAGEMENT (D_11
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 | 12 Months Ended |
Dec. 31, 2018 | |
Credit Impaired [Member] | Retail Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 100.00% |
Credit Impaired [Member] | Corporate Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 100.00% |
Minimum [Member] | Good Quality [Member] | Retail Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 0.00% |
Minimum [Member] | Good Quality [Member] | Corporate Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 0.00% |
Minimum [Member] | Satisfactory Quality [Member] | Retail Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 4.51% |
Minimum [Member] | Satisfactory Quality [Member] | Corporate Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 0.51% |
Minimum [Member] | Lower Quality [Member] | Retail Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 14.01% |
Minimum [Member] | Lower Quality [Member] | Corporate Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 3.01% |
Minimum [Member] | Below Standard, But Not Impaired [Member] | Retail Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 20.01% |
Minimum [Member] | Below Standard, But Not Impaired [Member] | Corporate Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 20.01% |
Maximum [Member] | Good Quality [Member] | Retail Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 4.50% |
Maximum [Member] | Good Quality [Member] | Corporate Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 0.50% |
Maximum [Member] | Satisfactory Quality [Member] | Retail Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 14.00% |
Maximum [Member] | Satisfactory Quality [Member] | Corporate Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 3.00% |
Maximum [Member] | Lower Quality [Member] | Retail Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 20.00% |
Maximum [Member] | Lower Quality [Member] | Corporate Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 20.00% |
Maximum [Member] | Below Standard, But Not Impaired [Member] | Retail Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 99.99% |
Maximum [Member] | Below Standard, But Not Impaired [Member] | Corporate Loans and Advances [Member] | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Probability of Default Under IFRS 9 [Line Items] | |
IFRS 9 PD% | 99.99% |
FINANCIAL RISK MANAGEMENT (D_12
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Advances to Banks [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | £ 6,285 | £ 4,247 |
Loans and advances, gross carrying amount, expected credit losses | 2 | 1 |
Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 488,008 | 464,239 |
Loans and advances, gross carrying amount, expected credit losses | 3,150 | 3,223 |
Loans and advances, loan commitments and financial guarantees | 135,098 | 135,629 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 193 | 273 |
Retail - Mortgages [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 288,235 | 291,021 |
Loans and advances, gross carrying amount, expected credit losses | 459 | 384 |
Loans and advances, loan commitments and financial guarantees | 12,141 | 11,853 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | 1 |
Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 53,447 | 50,640 |
Loans and advances, gross carrying amount, expected credit losses | 1,154 | 1,111 |
Loans and advances, loan commitments and financial guarantees | 63,414 | 63,406 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 154 | 189 |
Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 101,890 | 100,820 |
Loans and advances, gross carrying amount, expected credit losses | 1,476 | 1,440 |
Loans and advances, loan commitments and financial guarantees | 59,297 | 60,083 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 37 | 81 |
Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 44,436 | 21,758 |
Loans and advances, gross carrying amount, expected credit losses | 61 | 288 |
Loans and advances, loan commitments and financial guarantees | 246 | 287 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | 2 |
Stage 1 [member] | Loans and Advances to Banks [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 6,282 | 4,245 |
Loans and advances, gross carrying amount, expected credit losses | 2 | 1 |
Stage 1 [member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 441,531 | 403,881 |
Loans and advances, gross carrying amount, expected credit losses | 525 | 597 |
Loans and advances, loan commitments and financial guarantees | 131,846 | 132,140 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 123 | 147 |
Stage 1 [member] | Retail - Mortgages [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 257,797 | 251,707 |
Loans and advances, gross carrying amount, expected credit losses | 37 | 30 |
Loans and advances, loan commitments and financial guarantees | 12,026 | 11,690 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | 1 |
Stage 1 [member] | Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 47,363 | 44,557 |
Loans and advances, gross carrying amount, expected credit losses | 352 | 394 |
Loans and advances, loan commitments and financial guarantees | 61,284 | 61,139 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 103 | 113 |
Stage 1 [member] | Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 92,002 | 90,341 |
Loans and advances, gross carrying amount, expected credit losses | 93 | 101 |
Loans and advances, loan commitments and financial guarantees | 58,290 | 59,024 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 18 | 31 |
Stage 1 [member] | Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 44,369 | 17,276 |
Loans and advances, gross carrying amount, expected credit losses | 43 | 72 |
Loans and advances, loan commitments and financial guarantees | 246 | 287 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | 2 |
Stage 1 [member] | Good Quality [Member] | Loans and Advances to Banks [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 6,177 | 4,245 |
Loans and advances, gross carrying amount, expected credit losses | 2 | 1 |
Stage 1 [member] | Good Quality [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 411,512 | 374,097 |
Loans and advances, gross carrying amount, expected credit losses | 391 | 413 |
Loans and advances, loan commitments and financial guarantees | 124,281 | 125,617 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 109 | 105 |
Stage 1 [member] | Good Quality [Member] | Retail - Mortgages [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 257,740 | 251,663 |
Loans and advances, gross carrying amount, expected credit losses | 37 | 30 |
Loans and advances, loan commitments and financial guarantees | 12,024 | 11,690 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | 1 |
Stage 1 [member] | Good Quality [Member] | Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 44,314 | 40,951 |
Loans and advances, gross carrying amount, expected credit losses | 279 | 276 |
Loans and advances, loan commitments and financial guarantees | 60,379 | 60,305 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 98 | 91 |
Stage 1 [member] | Good Quality [Member] | Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 65,089 | 64,207 |
Loans and advances, gross carrying amount, expected credit losses | 32 | 35 |
Loans and advances, loan commitments and financial guarantees | 51,632 | 53,335 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 9 | 11 |
Stage 1 [member] | Good Quality [Member] | Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 44,369 | 17,276 |
Loans and advances, gross carrying amount, expected credit losses | 43 | 72 |
Loans and advances, loan commitments and financial guarantees | 246 | 287 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | 2 |
Stage 1 [member] | Satisfactory Quality [Member] | Loans and Advances to Banks [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 105 | |
Stage 1 [member] | Satisfactory Quality [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 28,091 | 28,824 |
Loans and advances, gross carrying amount, expected credit losses | 115 | 164 |
Loans and advances, loan commitments and financial guarantees | 7,035 | 6,264 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 12 | 38 |
Stage 1 [member] | Satisfactory Quality [Member] | Retail - Mortgages [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 57 | 44 |
Loans and advances, loan commitments and financial guarantees | 2 | |
Stage 1 [member] | Satisfactory Quality [Member] | Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 2,562 | 3,203 |
Loans and advances, gross carrying amount, expected credit losses | 65 | 104 |
Loans and advances, loan commitments and financial guarantees | 532 | 801 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 5 | 19 |
Stage 1 [member] | Satisfactory Quality [Member] | Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 25,472 | 25,577 |
Loans and advances, gross carrying amount, expected credit losses | 50 | 60 |
Loans and advances, loan commitments and financial guarantees | 6,501 | 5,463 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 7 | 19 |
Stage 1 [member] | Lower Quality [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 1,513 | 684 |
Loans and advances, gross carrying amount, expected credit losses | 15 | 15 |
Loans and advances, loan commitments and financial guarantees | 136 | 252 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | 3 |
Stage 1 [member] | Lower Quality [Member] | Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 72 | 127 |
Loans and advances, gross carrying amount, expected credit losses | 4 | 9 |
Loans and advances, loan commitments and financial guarantees | 10 | 26 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 2 | |
Stage 1 [member] | Lower Quality [Member] | Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 1,441 | 557 |
Loans and advances, gross carrying amount, expected credit losses | 11 | 6 |
Loans and advances, loan commitments and financial guarantees | 126 | 226 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | 1 |
Stage 1 [member] | Below Standard, But Not Impaired [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 415 | 276 |
Loans and advances, gross carrying amount, expected credit losses | 4 | 5 |
Loans and advances, loan commitments and financial guarantees | 394 | 7 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | 1 |
Stage 1 [member] | Below Standard, But Not Impaired [Member] | Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 415 | 276 |
Loans and advances, gross carrying amount, expected credit losses | 4 | 5 |
Loans and advances, loan commitments and financial guarantees | 363 | 7 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | |
Stage 1 [member] | Below Standard, But Not Impaired [Member] | Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, loan commitments and financial guarantees | 31 | |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | |
Stage 2 [member] | Loans and Advances to Banks [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 3 | 2 |
Stage 2 [member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 25,345 | 37,245 |
Loans and advances, gross carrying amount, expected credit losses | 994 | 1,148 |
Loans and advances, loan commitments and financial guarantees | 3,112 | 3,315 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 64 | 126 |
Stage 2 [member] | Retail - Mortgages [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 13,654 | 20,109 |
Loans and advances, gross carrying amount, expected credit losses | 226 | 236 |
Loans and advances, loan commitments and financial guarantees | 20 | 50 |
Stage 2 [member] | Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 5,087 | 5,210 |
Loans and advances, gross carrying amount, expected credit losses | 436 | 404 |
Loans and advances, loan commitments and financial guarantees | 2,091 | 2,206 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 51 | 76 |
Stage 2 [member] | Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 6,592 | 7,765 |
Loans and advances, gross carrying amount, expected credit losses | 325 | 382 |
Loans and advances, loan commitments and financial guarantees | 1,001 | 1,059 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 13 | 50 |
Stage 2 [member] | Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 12 | 4,161 |
Loans and advances, gross carrying amount, expected credit losses | 7 | 126 |
Stage 2 [member] | Good Quality [Member] | Loans and Advances to Banks [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 3 | 2 |
Stage 2 [member] | Good Quality [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 13,627 | 20,587 |
Loans and advances, gross carrying amount, expected credit losses | 232 | 278 |
Loans and advances, loan commitments and financial guarantees | 1,877 | 2,017 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 28 | 37 |
Stage 2 [member] | Good Quality [Member] | Retail - Mortgages [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 10,784 | 17,599 |
Loans and advances, gross carrying amount, expected credit losses | 141 | 169 |
Loans and advances, loan commitments and financial guarantees | 19 | 50 |
Stage 2 [member] | Good Quality [Member] | Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 2,737 | 2,711 |
Loans and advances, gross carrying amount, expected credit losses | 89 | 92 |
Loans and advances, loan commitments and financial guarantees | 1,858 | 1,908 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 28 | 37 |
Stage 2 [member] | Good Quality [Member] | Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 100 | 210 |
Loans and advances, gross carrying amount, expected credit losses | 1 | 1 |
Loans and advances, loan commitments and financial guarantees | 59 | |
Stage 2 [member] | Good Quality [Member] | Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 6 | 67 |
Loans and advances, gross carrying amount, expected credit losses | 1 | 16 |
Stage 2 [member] | Satisfactory Quality [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 6,323 | 11,300 |
Loans and advances, gross carrying amount, expected credit losses | 226 | 391 |
Loans and advances, loan commitments and financial guarantees | 850 | 798 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 17 | 43 |
Stage 2 [member] | Satisfactory Quality [Member] | Retail - Mortgages [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 1,709 | 1,359 |
Loans and advances, gross carrying amount, expected credit losses | 34 | 24 |
Loans and advances, loan commitments and financial guarantees | 1 | |
Stage 2 [member] | Satisfactory Quality [Member] | Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 1,158 | 1,377 |
Loans and advances, gross carrying amount, expected credit losses | 100 | 123 |
Loans and advances, loan commitments and financial guarantees | 156 | 221 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 10 | 15 |
Stage 2 [member] | Satisfactory Quality [Member] | Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 3,450 | 4,470 |
Loans and advances, gross carrying amount, expected credit losses | 86 | 134 |
Loans and advances, loan commitments and financial guarantees | 693 | 577 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 7 | 28 |
Stage 2 [member] | Satisfactory Quality [Member] | Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 6 | 4,094 |
Loans and advances, gross carrying amount, expected credit losses | 6 | 110 |
Stage 2 [member] | Lower Quality [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 3,535 | 3,205 |
Loans and advances, gross carrying amount, expected credit losses | 280 | 232 |
Loans and advances, loan commitments and financial guarantees | 324 | 379 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 8 | 18 |
Stage 2 [member] | Lower Quality [Member] | Retail - Mortgages [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 262 | 290 |
Loans and advances, gross carrying amount, expected credit losses | 9 | 7 |
Stage 2 [member] | Lower Quality [Member] | Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 285 | 299 |
Loans and advances, gross carrying amount, expected credit losses | 40 | 42 |
Loans and advances, loan commitments and financial guarantees | 27 | 32 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 3 | 4 |
Stage 2 [member] | Lower Quality [Member] | Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 2,988 | 2,616 |
Loans and advances, gross carrying amount, expected credit losses | 231 | 183 |
Loans and advances, loan commitments and financial guarantees | 297 | 347 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 5 | 14 |
Stage 2 [member] | Below Standard, But Not Impaired [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 1,860 | 2,153 |
Loans and advances, gross carrying amount, expected credit losses | 256 | 247 |
Loans and advances, loan commitments and financial guarantees | 61 | 121 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 11 | 28 |
Stage 2 [member] | Below Standard, But Not Impaired [Member] | Retail - Mortgages [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 899 | 861 |
Loans and advances, gross carrying amount, expected credit losses | 42 | 36 |
Stage 2 [member] | Below Standard, But Not Impaired [Member] | Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 907 | 823 |
Loans and advances, gross carrying amount, expected credit losses | 207 | 147 |
Loans and advances, loan commitments and financial guarantees | 50 | 45 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 10 | 20 |
Stage 2 [member] | Below Standard, But Not Impaired [Member] | Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 54 | 469 |
Loans and advances, gross carrying amount, expected credit losses | 7 | 64 |
Loans and advances, loan commitments and financial guarantees | 11 | 76 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 1 | 8 |
Stage 3 [member] | Credit Impaired [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 5,741 | 5,140 |
Loans and advances, gross carrying amount, expected credit losses | 1,553 | 1,446 |
Loans and advances, loan commitments and financial guarantees | 50 | 61 |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 6 | |
Stage 3 [member] | Credit Impaired [Member] | Retail - Mortgages [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 1,393 | 1,232 |
Loans and advances, gross carrying amount, expected credit losses | 118 | 86 |
Loans and advances, loan commitments and financial guarantees | 5 | |
Stage 3 [member] | Credit Impaired [Member] | Retail - Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 997 | 873 |
Loans and advances, gross carrying amount, expected credit losses | 366 | 313 |
Loans and advances, loan commitments and financial guarantees | 39 | 61 |
Stage 3 [member] | Credit Impaired [Member] | Commercial [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 3,296 | 2,714 |
Loans and advances, gross carrying amount, expected credit losses | 1,058 | 957 |
Loans and advances, loan commitments and financial guarantees | 6 | |
Loans and advances, loan commitments and financial guarantees, expected credit losses | 6 | |
Stage 3 [member] | Credit Impaired [Member] | Other [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 55 | 321 |
Loans and advances, gross carrying amount, expected credit losses | 11 | 90 |
Purchased or originated credit-impaired [member] | Credit Impaired [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 15,391 | 17,973 |
Loans and advances, gross carrying amount, expected credit losses | 78 | 32 |
Loans and advances, loan commitments and financial guarantees | 90 | 113 |
Purchased or originated credit-impaired [member] | Credit Impaired [Member] | Retail - Mortgages [Member] | Loans and advances to customers [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Loans and Advances Which Are Neither Past Due Nor Impaired [Line Items] | ||
Loans and advances, gross carrying amount | 15,391 | 17,973 |
Loans and advances, gross carrying amount, expected credit losses | 78 | 32 |
Loans and advances, loan commitments and financial guarantees | £ 90 | £ 113 |
FINANCIAL RISK MANAGEMENT (D_13
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities Classified as Loans and Receivables - Loans and receivables, category [member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset-backed securities: | |||
Asset-backed securities | £ 4,052 | £ 3,297 | |
Corporate and other debt securities | 1,192 | 43 | |
Debt securities | 5,238 | 3,314 | |
Investment Grade [Member] | |||
Asset-backed securities: | |||
Asset-backed securities | [1] | 4,026 | 3,290 |
Corporate and other debt securities | [1] | 1,176 | 27 |
Other [Member] | |||
Asset-backed securities: | |||
Asset-backed securities | [2] | 26 | 7 |
Corporate and other debt securities | [2] | 16 | 16 |
Mortgages [member] | |||
Asset-backed securities: | |||
Asset-backed securities | 3,272 | 2,265 | |
Mortgages [member] | Investment Grade [Member] | |||
Asset-backed securities: | |||
Asset-backed securities | [1] | 3,263 | 2,265 |
Mortgages [member] | Other [Member] | |||
Asset-backed securities: | |||
Asset-backed securities | [2] | 9 | |
Other asset-backed [Member] | |||
Asset-backed securities: | |||
Asset-backed securities | 780 | 1,032 | |
Other asset-backed [Member] | Investment Grade [Member] | |||
Asset-backed securities: | |||
Asset-backed securities | [1] | 763 | 1,025 |
Other asset-backed [Member] | Other [Member] | |||
Asset-backed securities: | |||
Asset-backed securities | [2] | 17 | 7 |
Debt securities held within loans and receivables [Member] | |||
Asset-backed securities: | |||
Gross exposure | 5,244 | 3,340 | |
Allowance for impairment losses | (6) | (26) | |
Debt securities held within loans and receivables [Member] | Investment Grade [Member] | |||
Asset-backed securities: | |||
Gross exposure | [1] | 5,202 | 3,317 |
Debt securities held within loans and receivables [Member] | Other [Member] | |||
Asset-backed securities: | |||
Gross exposure | [2] | £ 42 | £ 23 |
[1] | Credit ratings equal to or better than 'BBB'. | ||
[2] | Other comprises sub-investment grade (31 December 2018: 6 million; 1 January 2018: nil) and not rated (31 December 2018: 36 million; 1 January 2018: 23 million). |
FINANCIAL RISK MANAGEMENT (D_14
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Available-for-Sale Financial Assets (Excluding Equity Shares) - Excluding equity share [Member] - Financial assets available-for-sale, category [member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt securities: | ||||
Government securities | £ 18,971 | £ 34,708 | ||
Bank and building society certificates of deposit | 118 | 167 | ||
Asset-backed securities: | ||||
Mortgage-backed securities | 120 | 2,381 | ||
Other asset-backed securities | 131 | 467 | ||
251 | 2,848 | |||
Corporate and other debt securities | 5,151 | 4,615 | ||
Total debt securities | 24,491 | 42,338 | ||
Treasury and other bills | 303 | |||
Total financial assets at fair value through other comprehensive income/available-for-sale financial assets | 24,794 | 42,338 | ||
Investment Grade [Member] | ||||
Debt securities: | ||||
Government securities | [1] | 18,971 | 34,708 | |
Bank and building society certificates of deposit | [1] | 118 | 167 | |
Asset-backed securities: | ||||
Mortgage-backed securities | [1] | 120 | 2,381 | |
Other asset-backed securities | [1] | 358 | ||
[1] | 120 | 2,739 | ||
Corporate and other debt securities | [1] | 4,934 | 4,250 | |
Total debt securities | [1] | 24,143 | 41,864 | |
Treasury and other bills | [1] | 303 | ||
Total financial assets at fair value through other comprehensive income/available-for-sale financial assets | [1] | 24,446 | 41,864 | |
Other [Member] | ||||
Debt securities: | ||||
Government securities | [2] | |||
Bank and building society certificates of deposit | [2] | |||
Asset-backed securities: | ||||
Mortgage-backed securities | [2] | |||
Other asset-backed securities | [2] | 131 | 109 | |
131 | 109 | [2] | ||
Corporate and other debt securities | [2] | 217 | 365 | |
Total debt securities | [2] | 348 | 474 | |
Treasury and other bills | [2] | |||
Total financial assets at fair value through other comprehensive income/available-for-sale financial assets | [2] | £ 348 | £ 474 | |
[1] | Credit ratings equal to or better than 'BBB'. | |||
[2] | Other comprises sub-investment grade (31 December 2018: 85 million; 1 January 2018: 98 million) and not rated (31 December 2018: 263 million; 1 January 2018: 376 million). |
FINANCIAL RISK MANAGEMENT (D_15
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss - Treasury shares [member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset-backed securities: | |||
Total held as trading assets | £ 7,512 | £ 10,640 | |
Total debt securities held at fair value through profit or loss | 32,636 | 34,540 | |
Treasury bills and other bills | 20 | 18 | |
Total other assets held at fair value through profit or loss | 32,656 | 34,558 | |
Trading and other financial assets at fair value through profit or loss | 40,168 | 45,198 | |
Investment Grade [Member] | |||
Asset-backed securities: | |||
Total held as trading assets | [1] | 7,493 | 10,481 |
Total debt securities held at fair value through profit or loss | [1] | 30,699 | 32,396 |
Treasury bills and other bills | [1] | 20 | 18 |
Total other assets held at fair value through profit or loss | [1] | 30,719 | 32,414 |
Trading and other financial assets at fair value through profit or loss | [1] | 38,212 | 42,895 |
Other [Member] | |||
Asset-backed securities: | |||
Total held as trading assets | [2] | 19 | 159 |
Total debt securities held at fair value through profit or loss | [2] | 1,937 | 2,144 |
Treasury bills and other bills | [2] | ||
Total other assets held at fair value through profit or loss | [2] | 1,937 | 2,144 |
Trading and other financial assets at fair value through profit or loss | [2] | 1,956 | 2,303 |
Debt securities, treasury, and other bills at fair value through profit or loss [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | 7,192 | 9,833 | |
Asset-backed securities: | |||
Mortgage-backed securities | 10 | 189 | |
Other asset-backed securities | 63 | 95 | |
73 | 284 | ||
Corporate and other debt securities | 247 | 523 | |
Debt securities, treasury, and other bills at fair value through profit or loss [Member] | Investment Grade [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | [1] | 7,192 | 9,833 |
Asset-backed securities: | |||
Mortgage-backed securities | [1] | 10 | 84 |
Other asset-backed securities | [1] | 63 | 95 |
[1] | 73 | 179 | |
Corporate and other debt securities | [1] | 228 | 469 |
Debt securities, treasury, and other bills at fair value through profit or loss [Member] | Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | [2] | ||
Asset-backed securities: | |||
Mortgage-backed securities | [2] | 105 | |
Other asset-backed securities | [2] | ||
[2] | 105 | ||
Corporate and other debt securities | [2] | 19 | 54 |
Other assets held at fair value through profit or loss [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | 10,903 | 12,187 | |
Other public sector securities | 2,064 | 1,527 | |
Bank and building society certificates of deposit | 1,105 | 222 | |
Asset-backed securities: | |||
Mortgage-backed securities | 215 | 211 | |
Other asset-backed securities | 286 | 926 | |
501 | 1,137 | ||
Corporate and other debt securities | 18,063 | 19,467 | |
Other assets held at fair value through profit or loss [Member] | Investment Grade [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | [1] | 10,903 | 12,180 |
Other public sector securities | [1] | 2,059 | 1,519 |
Bank and building society certificates of deposit | [1] | 1,105 | 222 |
Asset-backed securities: | |||
Mortgage-backed securities | [1] | 208 | 208 |
Other asset-backed securities | [1] | 283 | 924 |
[1] | 491 | 1,132 | |
Corporate and other debt securities | [1] | 16,141 | 17,343 |
Other assets held at fair value through profit or loss [Member] | Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Debt Securities, Treasury and Other Bills Held at Fair Value Through Profit or Loss [Line Items] | |||
Government securities | [2] | 7 | |
Other public sector securities | [2] | 5 | 8 |
Bank and building society certificates of deposit | [2] | ||
Asset-backed securities: | |||
Mortgage-backed securities | [2] | 7 | 3 |
Other asset-backed securities | [2] | 3 | 2 |
[2] | 10 | 5 | |
Corporate and other debt securities | [2] | £ 1,922 | £ 2,124 |
[1] | Credit ratings equal to or better than 'BBB'. | ||
[2] | Other comprises sub-investment grade (2018: 411 million; 2017: 331 million) and not rated (2018: 1,545 million; 2017: 1,972 million). |
FINANCIAL RISK MANAGEMENT (D_16
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | £ 23,595 | £ 25,474 | |
Previously stated [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | 25,834 | ||
Investment Grade [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [1] | 21,331 | |
Investment Grade [Member] | Previously stated [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [1] | 23,616 | |
Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [2] | 2,264 | |
Other [Member] | Previously stated [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [2] | 2,218 | |
Trading and Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | 22,032 | ||
Trading and Other [Member] | Previously stated [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | 23,953 | ||
Trading and Other [Member] | Investment Grade [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [1] | 19,797 | |
Trading and Other [Member] | Investment Grade [Member] | Previously stated [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [1] | 21,742 | |
Trading and Other [Member] | Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [2] | 2,235 | |
Trading and Other [Member] | Other [Member] | Previously stated [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [2] | 2,211 | |
Hedging [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | 1,563 | ||
Hedging [Member] | Previously stated [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | 1,881 | ||
Hedging [Member] | Investment Grade [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [1] | 1,534 | |
Hedging [Member] | Investment Grade [Member] | Previously stated [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [1] | 1,874 | |
Hedging [Member] | Other [Member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [2] | £ 29 | |
Hedging [Member] | Other [Member] | Previously stated [member] | |||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Derivative Assets [Line Items] | |||
Derivative financial instruments | [2] | £ 7 | |
[1] | Credit ratings equal to or better than 'BBB'. | ||
[2] | Other comprises sub-investment grade (2018: 1,920 million; 2017: 1,878 million) and not rated (2018: 344 million; 2017: 340 million). |
FINANCIAL RISK MANAGEMENT (D_17
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending - Mortgages [member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | £ 288,235 | £ 290,985 |
Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 210,543 | 217,925 |
Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 42,609 | 42,621 |
Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 28,304 | 23,241 |
Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 5,672 | 5,390 |
Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 1,107 | 1,808 |
Stage 1 [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 257,797 | |
Stage 1 [member] | Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 186,974 | |
Stage 1 [member] | Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 38,865 | |
Stage 1 [member] | Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 26,353 | |
Stage 1 [member] | Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 5,136 | |
Stage 1 [member] | Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 469 | |
Stage 2 [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 13,654 | |
Stage 2 [member] | Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 10,853 | |
Stage 2 [member] | Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 1,704 | |
Stage 2 [member] | Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 837 | |
Stage 2 [member] | Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 154 | |
Stage 2 [member] | Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 106 | |
Stage 3 [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 1,393 | |
Stage 3 [member] | Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 1,058 | |
Stage 3 [member] | Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 176 | |
Stage 3 [member] | Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 90 | |
Stage 3 [member] | Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 33 | |
Stage 3 [member] | Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 36 | |
Purchased or originated credit-impaired [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 15,391 | |
Purchased or originated credit-impaired [member] | Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 11,658 | |
Purchased or originated credit-impaired [member] | Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 1,864 | |
Purchased or originated credit-impaired [member] | Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 1,024 | |
Purchased or originated credit-impaired [member] | Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 349 | |
Purchased or originated credit-impaired [member] | Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | £ 496 | |
Financial assets neither past due nor impaired [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 281,472 | |
Financial assets neither past due nor impaired [member] | Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 211,366 | |
Financial assets neither past due nor impaired [member] | Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 41,323 | |
Financial assets neither past due nor impaired [member] | Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 22,421 | |
Financial assets neither past due nor impaired [member] | Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 5,036 | |
Financial assets neither past due nor impaired [member] | Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 1,326 | |
Financial assets past due but not impaired [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 5,627 | |
Financial assets past due but not impaired [member] | Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 4,211 | |
Financial assets past due but not impaired [member] | Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 754 | |
Financial assets past due but not impaired [member] | Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 422 | |
Financial assets past due but not impaired [member] | Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 145 | |
Financial assets past due but not impaired [member] | Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 95 | |
Financial assets impaired [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 3,886 | |
Financial assets impaired [member] | Less than seventy percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 2,348 | |
Financial assets impaired [member] | Seventy percent to eighty percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 544 | |
Financial assets impaired [member] | Eighty percent to ninety percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 398 | |
Financial assets impaired [member] | Ninety percent to one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | 209 | |
Financial assets impaired [member] | Greater than one hundred percent [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Mortgage Lending [Line Items] | ||
Loan-to-value ratio | £ 387 |
FINANCIAL RISK MANAGEMENT (D_18
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Securities Lending Transactions - Securities lending [member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Securities Lending Transactions [Line Items] | ||
Financial assets at fair value through profit or loss | £ 5,837 | £ 6,622 |
Loans and advances to customers | 197 | |
Financial assets at fair value through other comprehensive income (2017: available-for-sale financial assets) | 1,917 | 2,608 |
£ 7,754 | £ 9,427 |
FINANCIAL RISK MANAGEMENT (D_19
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Assets and Liabilities - Balance Sheet maturity - legal basis [Member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Not later than one month [member] | ||
Assets | ||
Cash and balances at central banks | £ 54,662 | £ 58,519 |
Trading and other financial assets at fair value through profit or loss | 10,686 | 11,473 |
Derivative financial instruments | 579 | 449 |
Loans and advances to banks | 2,594 | 3,104 |
Loans and advances to customers | 36,326 | 28,297 |
Debt securities | 7 | 10 |
Financial assets at fair value through other comprehensive income | 166 | |
Other assets | 2,667 | 3,807 |
Total assets | 107,687 | 105,718 |
Liabilities | ||
Deposits from banks | 2,793 | 2,810 |
Customer deposits | 380,753 | 366,778 |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 5,160 | 19,215 |
Debt securities in issue | 4,172 | 3,248 |
Liabilities arising from insurance contracts and participating investment contracts | 1,844 | 1,898 |
Other liabilities | 4,403 | 4,229 |
Subordinated liabilities | 85 | |
Total liabilities | 399,210 | 398,178 |
Available-for-sale financial assets | 59 | |
Later than one month and not later than three months [member] | ||
Assets | ||
Cash and balances at central banks | 1 | 2 |
Trading and other financial assets at fair value through profit or loss | 8,826 | 13,345 |
Derivative financial instruments | 688 | 601 |
Loans and advances to banks | 520 | 314 |
Loans and advances to customers | 19,383 | 15,953 |
Debt securities | 29 | |
Financial assets at fair value through other comprehensive income | 453 | |
Other assets | 1,552 | 897 |
Total assets | 31,423 | 31,506 |
Liabilities | ||
Deposits from banks | 1,688 | 2,318 |
Customer deposits | 10,623 | 18,821 |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 11,877 | 16,932 |
Debt securities in issue | 5,692 | 6,014 |
Liabilities arising from insurance contracts and participating investment contracts | 1,850 | 2,003 |
Other liabilities | 3,201 | 2,805 |
Subordinated liabilities | 145 | 202 |
Total liabilities | 35,076 | 49,095 |
Available-for-sale financial assets | 365 | |
Total [Member] | ||
Assets | ||
Cash and balances at central banks | 54,663 | 58,521 |
Trading and other financial assets at fair value through profit or loss | 158,529 | 162,878 |
Derivative financial instruments | 23,595 | 25,834 |
Loans and advances to banks | 6,283 | 6,611 |
Loans and advances to customers | 484,858 | 472,498 |
Debt securities | 5,238 | 3,643 |
Financial assets at fair value through other comprehensive income | 24,815 | |
Other assets | 39,617 | 40,026 |
Total assets | 797,598 | 812,109 |
Liabilities | ||
Deposits from banks | 30,320 | 29,804 |
Customer deposits | 418,066 | 418,124 |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 51,920 | 77,001 |
Debt securities in issue | 91,168 | 72,450 |
Liabilities arising from insurance contracts and participating investment contracts | 112,727 | 118,860 |
Other liabilities | 25,542 | 28,805 |
Subordinated liabilities | 17,656 | 17,922 |
Total liabilities | 747,399 | 762,966 |
Available-for-sale financial assets | 42,098 | |
Later than three months and not later than six months [member] | ||
Assets | ||
Trading and other financial assets at fair value through profit or loss | 8,492 | 4,858 |
Derivative financial instruments | 418 | 763 |
Loans and advances to banks | 584 | 190 |
Loans and advances to customers | 18,415 | 13,585 |
Financial assets at fair value through other comprehensive income | 249 | |
Other assets | 196 | 414 |
Total assets | 28,354 | 20,096 |
Liabilities | ||
Deposits from banks | 748 | 1,885 |
Customer deposits | 5,628 | 10,615 |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 5,048 | 4,933 |
Debt securities in issue | 9,007 | 4,431 |
Liabilities arising from insurance contracts and participating investment contracts | 2,316 | 2,484 |
Other liabilities | 733 | 239 |
Subordinated liabilities | 95 | 1,588 |
Total liabilities | 23,575 | 26,175 |
Available-for-sale financial assets | 286 | |
Later than six months and not later than nine months [Member] | ||
Assets | ||
Trading and other financial assets at fair value through profit or loss | 5,133 | 2,781 |
Derivative financial instruments | 336 | 451 |
Loans and advances to banks | 172 | 190 |
Loans and advances to customers | 14,378 | 11,881 |
Debt securities | 521 | |
Financial assets at fair value through other comprehensive income | 800 | |
Other assets | 238 | 1,170 |
Total assets | 21,578 | 17,498 |
Liabilities | ||
Deposits from banks | 54 | 87 |
Customer deposits | 4,543 | 5,524 |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 1,663 | 3,419 |
Debt securities in issue | 4,668 | 3,506 |
Liabilities arising from insurance contracts and participating investment contracts | 2,302 | 2,466 |
Other liabilities | 1,182 | 2,216 |
Subordinated liabilities | 251 | |
Total liabilities | 14,663 | 17,218 |
Available-for-sale financial assets | 1,025 | |
Later than nine months and not later than twelve months [Member] | ||
Assets | ||
Trading and other financial assets at fair value through profit or loss | 2,587 | 1,056 |
Derivative financial instruments | 441 | 503 |
Loans and advances to banks | 203 | 192 |
Loans and advances to customers | 11,318 | 10,482 |
Debt securities | 7 | |
Financial assets at fair value through other comprehensive income | 1,685 | |
Other assets | 219 | 854 |
Total assets | 16,453 | 13,359 |
Liabilities | ||
Deposits from banks | 45 | 28 |
Customer deposits | 4,431 | 5,074 |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 522 | 948 |
Debt securities in issue | 1,694 | 2,902 |
Liabilities arising from insurance contracts and participating investment contracts | 2,104 | 2,425 |
Other liabilities | 1,383 | 1,894 |
Subordinated liabilities | 570 | |
Total liabilities | 10,179 | 13,841 |
Available-for-sale financial assets | 265 | |
Later than one year and not later than two years [member] | ||
Assets | ||
Trading and other financial assets at fair value through profit or loss | 2,090 | 2,655 |
Derivative financial instruments | 1,064 | 965 |
Loans and advances to banks | 160 | 131 |
Loans and advances to customers | 30,459 | 29,340 |
Debt securities | 350 | |
Financial assets at fair value through other comprehensive income | 2,536 | |
Other assets | 387 | 725 |
Total assets | 36,696 | 37,206 |
Liabilities | ||
Deposits from banks | 4,758 | |
Customer deposits | 6,421 | 7,823 |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 1,104 | 1,961 |
Debt securities in issue | 13,062 | 6,333 |
Liabilities arising from insurance contracts and participating investment contracts | 7,995 | 8,532 |
Other liabilities | 756 | 1,498 |
Subordinated liabilities | 2,600 | 574 |
Total liabilities | 36,696 | 26,721 |
Available-for-sale financial assets | 3,040 | |
Later than two years and not later than five years [member] | ||
Assets | ||
Trading and other financial assets at fair value through profit or loss | 5,467 | 5,341 |
Derivative financial instruments | 3,075 | 2,763 |
Loans and advances to banks | 2,405 | |
Loans and advances to customers | 72,028 | 70,967 |
Debt securities | 2,262 | 2,775 |
Financial assets at fair value through other comprehensive income | 11,496 | |
Other assets | 1,118 | 5,618 |
Total assets | 95,446 | 105,235 |
Liabilities | ||
Deposits from banks | 16,052 | 22,378 |
Customer deposits | 3,244 | 2,986 |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 4,108 | 4,298 |
Debt securities in issue | 28,676 | 25,669 |
Liabilities arising from insurance contracts and participating investment contracts | 20,986 | 21,842 |
Other liabilities | 232 | 1,933 |
Subordinated liabilities | 2,559 | 3,983 |
Total liabilities | 75,857 | 83,089 |
Available-for-sale financial assets | 15,366 | |
Later than five years [member] | ||
Assets | ||
Trading and other financial assets at fair value through profit or loss | 115,248 | 121,369 |
Derivative financial instruments | 16,994 | 19,339 |
Loans and advances to banks | 2,050 | 85 |
Loans and advances to customers | 282,551 | 291,993 |
Debt securities | 2,448 | 472 |
Financial assets at fair value through other comprehensive income | 7,430 | |
Other assets | 33,240 | 26,541 |
Total assets | 459,961 | 481,491 |
Liabilities | ||
Deposits from banks | 4,182 | 298 |
Customer deposits | 2,423 | 503 |
Derivative financial instruments, trading and other financial liabilities at fair value through profit or loss | 22,438 | 25,295 |
Debt securities in issue | 24,197 | 20,347 |
Liabilities arising from insurance contracts and participating investment contracts | 73,330 | 77,210 |
Other liabilities | 13,652 | 13,991 |
Subordinated liabilities | 11,921 | 11,005 |
Total liabilities | £ 152,143 | 148,649 |
Available-for-sale financial assets | £ 21,692 |
FINANCIAL RISK MANAGEMENT (D_20
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities - Undiscounted future cash flow basis [Member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | ||
Deposits from banks | £ 30,974 | £ 30,315 |
Customer deposits | 418,926 | 420,838 |
Trading and other financial liabilities at fair value through profit or loss | 39,931 | 59,504 |
Debt securities in issue | 108,254 | 83,259 |
Liabilities arising from non-participating investment contracts | 13,853 | 15,447 |
Subordinated liabilities | 29,967 | 29,926 |
Total non-derivative financial liabilities | 641,905 | 639,289 |
Derivative financial liabilities: | ||
Derivative financial liabilities | 26,578 | 23,420 |
Net settled derivatives liabilities | 16,798 | 22,098 |
Outflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | 168,121 | 154,796 |
Inflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | (158,341) | (153,474) |
Net Flows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | 9,780 | 1,322 |
Not later than one month [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | ||
Deposits from banks | 2,820 | 2,516 |
Customer deposits | 380,985 | 367,103 |
Trading and other financial liabilities at fair value through profit or loss | 9,693 | 21,286 |
Debt securities in issue | 5,942 | 3,444 |
Liabilities arising from non-participating investment contracts | 13,853 | 15,447 |
Subordinated liabilities | 247 | 231 |
Total non-derivative financial liabilities | 413,540 | 410,027 |
Derivative financial liabilities: | ||
Derivative financial liabilities | 14,375 | 18,247 |
Net settled derivatives liabilities | 13,511 | 17,425 |
Not later than one month [member] | Outflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | 39,165 | 23,850 |
Not later than one month [member] | Inflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | (38,301) | (23,028) |
Not later than one month [member] | Net Flows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | 864 | 822 |
Later than one month and not later than three months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | ||
Deposits from banks | 2,710 | 3,545 |
Customer deposits | 10,584 | 18,854 |
Trading and other financial liabilities at fair value through profit or loss | 10,984 | 14,424 |
Debt securities in issue | 7,314 | 6,331 |
Subordinated liabilities | 1,017 | 454 |
Total non-derivative financial liabilities | 32,609 | 43,608 |
Derivative financial liabilities: | ||
Derivative financial liabilities | 796 | 1,130 |
Net settled derivatives liabilities | 103 | 128 |
Later than one month and not later than three months [member] | Outflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | 27,976 | 31,974 |
Later than one month and not later than three months [member] | Inflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | (27,283) | (30,972) |
Later than one month and not later than three months [member] | Net Flows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | 693 | 1,002 |
Later than three months and not later than twelve months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | ||
Deposits from banks | 1,022 | 2,096 |
Customer deposits | 14,169 | 21,308 |
Trading and other financial liabilities at fair value through profit or loss | 7,553 | 6,499 |
Debt securities in issue | 22,564 | 12,562 |
Subordinated liabilities | 1,144 | 2,907 |
Total non-derivative financial liabilities | 46,452 | 45,372 |
Derivative financial liabilities: | ||
Derivative financial liabilities | 1,053 | 1,813 |
Net settled derivatives liabilities | 209 | 776 |
Later than three months and not later than twelve months [Member] | Outflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | 23,978 | 24,923 |
Later than three months and not later than twelve months [Member] | Inflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | (23,134) | (23,886) |
Later than three months and not later than twelve months [Member] | Net Flows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | 844 | 1,037 |
Later than one year and not later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | ||
Deposits from banks | 20,920 | 21,498 |
Customer deposits | 11,634 | 11,198 |
Trading and other financial liabilities at fair value through profit or loss | 930 | 4,251 |
Debt securities in issue | 48,233 | 36,999 |
Subordinated liabilities | 8,231 | 7,170 |
Total non-derivative financial liabilities | 89,948 | 81,116 |
Derivative financial liabilities: | ||
Derivative financial liabilities | 3,331 | 895 |
Net settled derivatives liabilities | 782 | 974 |
Later than one year and not later than five years [member] | Outflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | 43,239 | 43,444 |
Later than one year and not later than five years [member] | Inflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | (40,690) | (43,523) |
Later than one year and not later than five years [member] | Net Flows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | 2,549 | (79) |
Later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Maturities of Liabilities [Line Items] | ||
Deposits from banks | 3,502 | 660 |
Customer deposits | 1,554 | 2,375 |
Trading and other financial liabilities at fair value through profit or loss | 10,771 | 13,044 |
Debt securities in issue | 24,201 | 23,923 |
Subordinated liabilities | 19,328 | 19,164 |
Total non-derivative financial liabilities | 59,356 | 59,166 |
Derivative financial liabilities: | ||
Derivative financial liabilities | 7,023 | 1,335 |
Net settled derivatives liabilities | 2,193 | 2,795 |
Later than five years [member] | Outflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | 33,763 | 30,605 |
Later than five years [member] | Inflows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | (28,933) | (32,065) |
Later than five years [member] | Net Flows [Member] | ||
Derivative financial liabilities: | ||
Derivative financial liabilities | £ 4,830 | £ (1,460) |
FINANCIAL RISK MANAGEMENT (D_21
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts - Analysed on a behavioural basis [Member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
£ 98,874 | £ 103,413 | |
Not later than one month [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
1,667 | 1,708 | |
Later than one month and not later than three months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
1,624 | 1,747 | |
Later than three months and not later than twelve months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
5,925 | 6,467 | |
Later than one year and not later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
25,414 | 26,479 | |
Later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Liabilities Arising from Insurance and Participating Investment Contracts [Line Items] | ||
£ 64,244 | £ 67,012 |
FINANCIAL RISK MANAGEMENT (D_22
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | £ 3,251 | £ 3,111 |
Commitments | 135,098 | 135,629 |
Total contingents and commitments | 138,349 | 138,740 |
Lending commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 134,367 | 135,245 |
Other commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 731 | 384 |
Not later than one month [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 514 | 404 |
Commitments | 67,483 | 66,983 |
Total contingents and commitments | 67,997 | 67,387 |
Not later than one month [member] | Lending commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 67,055 | 66,964 |
Not later than one month [member] | Other commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 428 | 19 |
Later than one month and not later than three months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 567 | 720 |
Commitments | 2,947 | 3,137 |
Total contingents and commitments | 3,514 | 3,857 |
Later than one month and not later than three months [member] | Lending commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 2,947 | 3,137 |
Later than three months and not later than six months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 237 | 214 |
Commitments | 4,474 | 5,966 |
Total contingents and commitments | 4,711 | 6,180 |
Later than three months and not later than six months [member] | Lending commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 4,474 | 5,966 |
Later than six months and not later than nine months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 236 | 131 |
Commitments | 6,057 | 5,563 |
Total contingents and commitments | 6,293 | 5,694 |
Later than six months and not later than nine months [Member] | Lending commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 6,055 | 5,525 |
Later than six months and not later than nine months [Member] | Other commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 2 | 38 |
Later than nine months and not later than twelve months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 150 | 205 |
Commitments | 16,215 | 14,572 |
Total contingents and commitments | 16,365 | 14,777 |
Later than nine months and not later than twelve months [Member] | Lending commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 16,123 | 14,572 |
Later than nine months and not later than twelve months [Member] | Other commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 92 | |
Later than one year and not later than three years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 665 | 510 |
Commitments | 17,757 | 18,047 |
Total contingents and commitments | 18,422 | 18,557 |
Later than one year and not later than three years [member] | Lending commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 17,737 | 18,001 |
Later than one year and not later than three years [member] | Other commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 20 | 46 |
Later than three years and not later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 133 | 271 |
Commitments | 15,387 | 16,648 |
Total contingents and commitments | 15,520 | 16,919 |
Later than three years and not later than five years [member] | Lending commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 15,374 | 16,577 |
Later than three years and not later than five years [member] | Other commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 13 | 71 |
Later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 749 | 656 |
Commitments | 4,778 | 4,713 |
Total contingents and commitments | 5,527 | 5,369 |
Later than five years [member] | Lending commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 4,602 | 4,503 |
Later than five years [member] | Other commitments [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Commitments | 176 | 210 |
Acceptances and endorsements [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 194 | 71 |
Acceptances and endorsements [Member] | Not later than one month [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 64 | 12 |
Acceptances and endorsements [Member] | Later than one month and not later than three months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 83 | 51 |
Acceptances and endorsements [Member] | Later than three months and not later than six months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 34 | 4 |
Acceptances and endorsements [Member] | Later than six months and not later than nine months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 13 | |
Acceptances and endorsements [Member] | Later than one year and not later than three years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 4 | |
Other contingent liabilities [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 3,057 | 3,040 |
Other contingent liabilities [member] | Not later than one month [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 450 | 392 |
Other contingent liabilities [member] | Later than one month and not later than three months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 484 | 669 |
Other contingent liabilities [member] | Later than three months and not later than six months [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 203 | 210 |
Other contingent liabilities [member] | Later than six months and not later than nine months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 223 | 131 |
Other contingent liabilities [member] | Later than nine months and not later than twelve months [Member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 150 | 205 |
Other contingent liabilities [member] | Later than one year and not later than three years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 665 | 506 |
Other contingent liabilities [member] | Later than three years and not later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | 133 | 271 |
Other contingent liabilities [member] | Later than five years [member] | ||
FINANCIAL RISK MANAGEMENT (Details) - Schedule of Amounts and Residual Maturities of the Group's Off Balance Sheet Contingent Liabilities and Commitments [Line Items] | ||
Contingent Liabilities | £ 749 | £ 656 |
CONSOLIDATED CASH FLOW STATEM_4
CONSOLIDATED CASH FLOW STATEMENT (Details) - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
CONSOLIDATED CASH FLOW STATEMENT (Details) [Line Items] | |||
Cash and cash equivalents held by entity unavailable for use by group | £ 40 | £ 2,322 | |
Previously stated [member] | |||
CONSOLIDATED CASH FLOW STATEMENT (Details) [Line Items] | |||
Cash and cash equivalents held by entity unavailable for use by group | £ 48 | £ 14,475 |
CONSOLIDATED CASH FLOW STATEM_5
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Change in Operating Assets - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Change in Operating Assets [Abstract] | |||
Change in financial assets held at amortised cost | £ (27,038) | £ (24,747) | £ 710 |
Change in derivative financial instruments and financial assets at fair value through profit or loss | 22,046 | 9,916 | (13,889) |
Change in other operating assets | 520 | (661) | 961 |
Change in operating assets | £ (4,472) | £ (15,492) | £ (12,218) |
CONSOLIDATED CASH FLOW STATEM_6
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Change in Operating Liabilities - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Change in Operating Liabilities [Abstract] | |||
Change in deposits from banks | £ 515 | £ 13,415 | £ (654) |
Change in customer deposits | (322) | 2,913 | (3,690) |
Change in debt securities in issue | 18,579 | (3,600) | (6,552) |
Change in derivative financial instruments and liabilities at fair value through profit or loss | (24,606) | (12,481) | 11,265 |
Change in investment contract liabilities | (1,594) | (4,665) | (2,665) |
Change in other operating liabilities | (1,245) | 136 | (363) |
Change in operating liabilities | £ (8,673) | £ (4,282) | £ (2,659) |
CONSOLIDATED CASH FLOW STATEM_7
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | |||||
Depreciation and amortisation | £ 2,405 | £ 2,370 | £ 2,380 | ||
Revaluation of investment properties | (139) | (230) | 83 | ||
Allowance for loan losses | 937 | 688 | 752 | ||
Write-off of allowance for loan losses, net of recoveries | (1,025) | (1,061) | (1,272) | ||
Impairment charge relating to undrawn balances | (73) | (9) | (13) | ||
Impairment of available-for-sale financial assets | 1,023 | ||||
Change in insurance contract liabilities | (4,547) | 9,168 | 14,084 | ||
Other provision movements | (518) | (8) | (27) | ||
Net charge (credit) in respect of defined benefit schemes | 405 | 369 | 287 | ||
Impact of consolidation and deconsolidation of OEICs | [1] | (3,157) | |||
Unwind of discount on impairment allowances | (44) | (23) | (32) | ||
Foreign exchange impact on balance sheet | [2] | 191 | 125 | (155) | |
Loss on ECN transactions | 721 | ||||
Interest expense on subordinated liabilities | 1,388 | 1,436 | 1,864 | ||
Net gain on sale of available-for-sale financial assets through other comprehensive income | (275) | (446) | (575) | ||
Hedging valuation adjustments on subordinated debt | (429) | (327) | 153 | ||
Value of employee services | 260 | 414 | 309 | ||
Transactions in own shares | 40 | (411) | (175) | ||
Accretion of discounts and amortisation of premiums and issue costs | 1,947 | 1,701 | 465 | ||
Share of post-tax results of associates and joint ventures | (9) | (6) | 1 | ||
Transfers to income statement from reserves | (701) | (650) | (557) | ||
Other non-cash items | (34) | (17) | |||
Total non-cash items | 1,098 | 15,154 | 17,474 | ||
Contributions to defined benefit schemes | £ (1,050) | (868) | (587) | (630) | |
Payments in respect of payment protection insurance provision | (2,104) | (1,657) | (2,200) | ||
Payments in respect of other regulatory provisions | (1,032) | (928) | (761) | ||
Other | 14 | 2 | |||
Total other items | (3,990) | (3,172) | (3,589) | ||
Non-cash and other items | (2,892) | 11,982 | 13,885 | ||
Payment Protection Insurance [Member] | |||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | |||||
Charge for the year | 750 | 1,300 | 1,350 | ||
Other regulatory provisions [Member] | |||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | |||||
Charge for the year | 600 | 865 | 1,085 | ||
Loans and Receivables [Member] | |||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | |||||
Allowance for loan losses | 1,024 | 691 | 592 | ||
Financial assets available-for-sale, category [member] | |||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | |||||
Impairment of available-for-sale financial assets | (14) | 6 | 173 | ||
Disposal Of Tangible Fixed Assets [Member] | |||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Non-Cash and Other Items [Line Items] | |||||
Profit on disposal of tangible fixed assets | £ (104) | £ (120) | £ (93) | ||
[1] | These OEICs (Open-ended investment companies) are mutual funds which are consolidated if the Group manages the funds and also has a sufficient beneficial interest. The population of OEICs to be consolidated varies at each reporting date as external investors acquire and divest holdings in the various funds. The consolidation of these funds is effected by the inclusion of the fund investments and a matching liability to the unitholders; and changes in funds consolidated represent a non-cash movement on the balance sheet. | ||||
[2] | When considering the movement on each line of the balance sheet, the impact of foreign exchange rate movements is removed in order to show the underlying cash impact. |
CONSOLIDATED CASH FLOW STATEM_8
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Analysis of Cash and Cash Equivalents as Shown in the Balance Sheet - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Analysis of Cash and Cash Equivalents as Shown in the Balance Sheet [Line Items] | ||||||
Cash and balances at central banks | £ 54,663 | £ 58,521 | ||||
Less: mandatory reserve deposits | [1] | (2,553) | ||||
52,110 | ||||||
Loans and advances to banks | 6,283 | 4,246 | ||||
Less: amounts with a maturity of three months or more | (3,169) | |||||
3,114 | ||||||
Total cash and cash equivalents | £ 55,224 | 58,708 | [2] | |||
Previously stated [member] | ||||||
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Analysis of Cash and Cash Equivalents as Shown in the Balance Sheet [Line Items] | ||||||
Cash and balances at central banks | 58,521 | £ 47,452 | ||||
Less: mandatory reserve deposits | [1] | (957) | (914) | |||
57,564 | 46,538 | |||||
Loans and advances to banks | 6,611 | 26,902 | ||||
Less: amounts with a maturity of three months or more | (3,193) | (11,052) | ||||
3,418 | 15,850 | |||||
Total cash and cash equivalents | £ 60,982 | £ 62,388 | £ 71,953 | |||
[1] | Mandatory reserve deposits are held with local central banks in accordance with statutory requirements; these deposits are not available to finance the Group's day-to-day operations. | |||||
[2] | Adjusted for IFRS 9 |
CONSOLIDATED CASH FLOW STATEM_9
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Acquisition of Group Undertakings and Businesses - Business combinations [member] - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net assets acquired: | ||||
Cash and cash equivalents | £ 123 | |||
Loans and receivables: Loans and advances to customers | 7,811 | |||
Available-for-sale financial assets | 16 | |||
Intangible assets | £ 21 | 702 | ||
Property, plant and equipment | 6 | |||
Other assets | 6 | 414 | ||
Deposits from banks | [1] | (6,431) | ||
Other liabilities | (1) | (927) | ||
Goodwill arising on acquisition | 302 | |||
Cash consideration | 26 | 2,016 | ||
Less: Cash and cash equivalents acquired | (123) | |||
Net cash outflow arising from acquisition of subsidiaries and businesses | 26 | 1,893 | ||
Acquisition of and additional investment in joint ventures | 23 | 30 | 20 | |
Net cash outflow from acquisitions in the year | £ 49 | £ 1,923 | £ 20 | |
[1] | Upon acquisition in 2017, the funding of MBNA was assumed by Lloyds Bank plc. |
CONSOLIDATED CASH FLOW STATE_10
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Disposal and Closure of Group Undertakings and Businesses - Other disposals of assets [member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED CASH FLOW STATEMENT (Details) - Schedule of Disposal and Closure of Group Undertakings and Businesses [Line Items] | |||
Loans and advances to customers | £ 342 | ||
Non-controlling interests | (242) | ||
Other net assets (liabilities) | £ 1 | 29 | £ 5 |
1 | 129 | 5 | |
Net assets | 1 | 129 | 5 |
Cash consideration received on losing control of group undertakings and businesses | 1 | 129 | 5 |
Net cash inflow (outflow) | £ 1 | £ 129 | £ 5 |
ADOPTION OF IFRS 9 AND IFRS 1_2
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) [Line Items] | |||
Equity Attributable To Owners Of Parent Excluding Other Equity Instruments | £ 43,434 | £ 42,360 | |
Impairment loss | 937 | 688 | £ 752 |
Financial assets at amortised cost | 496,379 | 468,576 | |
Loans and advances to banks | 6,283 | £ 4,246 | |
Increase (decrease) due to application of IFRS 9 [member] | |||
ADOPTION OF IFRS 9 AND IFRS 15 (Details) [Line Items] | |||
Equity Attributable To Owners Of Parent Excluding Other Equity Instruments | (1,180) | ||
Impairment loss | 1,276 | ||
Financial assets at amortised cost | (13,167) | ||
Financial assets described in paragraph 39E(a) of IFRS 4, carrying amount applying IAS 39 | 6,882 | ||
Loans and advances to banks | 2,274 | ||
Financial assets previously designated at fair value through profit or loss reclassified due to requirements of IFRS 9, initial application of IFRS 9 | 3,116 | ||
Fair value gain (loss) that would have been recognised in profit or loss if financial assets had not been reclassified | £ 0.2 | ||
Effective interest rate of financial assets reclassified out of financial assets at fair value through profit or loss | 1.97% | ||
Interest revenue (expense) recognised for financial assets reclassified out of fair value through profit or loss category, initial application of IFRS 9 | £ 20 | ||
Reclassification adjustments on financial assets measured at fair value through other comprehensive income, before tax | 229 | ||
Reclassification adjustments on financial assets measured at fair value through other comprehensive income, net of tax | 207 | ||
Reclassified following changes in the business model [member] | |||
ADOPTION OF IFRS 9 AND IFRS 15 (Details) [Line Items] | |||
Financial assets previously designated at fair value through profit or loss reclassified due to requirements of IFRS 9, initial application of IFRS 9 | 847 | ||
Increase (decrease) due to application of IFRS 15 [member] | |||
ADOPTION OF IFRS 9 AND IFRS 15 (Details) [Line Items] | |||
Adjustments for increase (decrease) in deferred income | 14 | ||
Increase (decrease) in equity | £ (11) |
ADOPTION OF IFRS 9 AND IFRS 1_3
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Balance Sheet Under IFRS 9 and IFRS 15 - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and balances at central banks | £ 54,663 | £ 58,521 | ||
Items in course of collection from banks | 647 | 755 | ||
Financial assets at fair value through profit or loss | 158,529 | 176,008 | ||
Derivative financial instruments | 23,595 | 25,474 | ||
Loans and advances to banks | 6,283 | 4,246 | ||
Loans and advances to customers | 484,858 | 461,016 | ||
Debt securities | 5,238 | 3,314 | ||
Financial assets at amortised cost | 496,379 | 468,576 | ||
Financial assets at fair value through other comprehensive income | 24,815 | 42,917 | ||
Goodwill | 2,310 | 2,310 | £ 2,016 | |
Value of in-force business | 4,762 | 4,839 | ||
Other intangible assets | 3,347 | 2,835 | ||
Property, plant and equipment | 12,300 | 12,727 | ||
Current tax recoverable | 5 | 16 | ||
Deferred tax assets | 2,453 | 2,609 | ||
Retirement benefit assets | 1,267 | 723 | ||
Other assets | 12,526 | 12,872 | ||
Total assets | 797,598 | 811,182 | ||
Liabilities | ||||
Deposits from banks | 30,320 | 29,804 | ||
Customer deposits | 418,066 | 418,124 | ||
Items in course of transmission to banks | 636 | 584 | ||
Financial liabilities at fair value through profit or loss | 30,547 | 50,935 | ||
Derivative financial instruments | 21,373 | 26,124 | ||
Notes in circulation | 1,104 | 1,313 | ||
Debt securities in issue | 91,168 | 72,402 | ||
Liabilities arising from insurance contracts and participating investment contracts | 98,874 | 103,413 | ||
Liabilities arising from non-participating investment contracts | 13,853 | 15,447 | ||
Other liabilities | 20,741 | |||
Retirement benefit obligations | 245 | 358 | ||
Current tax liabilities | 274 | |||
Other provisions | 3,547 | 5,789 | ||
Subordinated liabilities | 17,656 | 17,922 | 19,831 | |
Total liabilities | 747,399 | 763,230 | ||
Equity | ||||
Shareholders’ equity | 43,434 | 42,360 | ||
Other equity instruments | 6,491 | 5,355 | ||
Non-controlling interests | 274 | 237 | ||
Total equity | 50,199 | 47,952 | 48,465 | £ 46,980 |
Total equity and liabilities | £ 797,598 | 811,182 | ||
Previously stated [member] | ||||
Assets | ||||
Cash and balances at central banks | 58,521 | 47,452 | ||
Items in course of collection from banks | 755 | |||
Financial assets at fair value through profit or loss | 162,878 | |||
Derivative financial instruments | 25,834 | |||
Loans and advances to banks | 6,611 | £ 26,902 | ||
Loans and advances to customers | 472,498 | |||
Debt securities | 3,643 | |||
Financial assets at amortised cost | 482,752 | |||
Financial assets at fair value through other comprehensive income | 42,098 | |||
Available-for-sale financial assets | 42,098 | |||
Goodwill | 2,310 | |||
Value of in-force business | 4,839 | |||
Other intangible assets | 2,835 | |||
Property, plant and equipment | 12,727 | |||
Current tax recoverable | 16 | |||
Deferred tax assets | 2,284 | |||
Retirement benefit assets | 723 | |||
Other assets | 13,537 | |||
Total assets | 812,109 | |||
Liabilities | ||||
Deposits from banks | 29,804 | |||
Customer deposits | 418,124 | |||
Items in course of transmission to banks | 584 | |||
Financial liabilities at fair value through profit or loss | 50,877 | |||
Derivative financial instruments | 26,124 | |||
Notes in circulation | 1,313 | |||
Debt securities in issue | 72,450 | |||
Liabilities arising from insurance contracts and participating investment contracts | 103,413 | |||
Liabilities arising from non-participating investment contracts | 15,447 | |||
Other liabilities | 20,730 | |||
Retirement benefit obligations | 358 | |||
Current tax liabilities | 274 | |||
Other provisions | 5,546 | |||
Subordinated liabilities | 17,922 | |||
Total liabilities | 762,966 | |||
Equity | ||||
Shareholders’ equity | 43,551 | |||
Other equity instruments | 5,355 | |||
Non-controlling interests | 237 | |||
Total equity | 49,143 | |||
Total equity and liabilities | 812,109 | |||
Increase (decrease) due to classification and measurement of IFRS 9 [member] | ||||
Assets | ||||
Financial assets at fair value through profit or loss | 13,130 | |||
Derivative financial instruments | (360) | |||
Loans and advances to banks | (2,364) | |||
Loans and advances to customers | (10,460) | |||
Debt securities | (329) | |||
Financial assets at amortised cost | (13,153) | |||
Financial assets at fair value through other comprehensive income | 42,917 | |||
Available-for-sale financial assets | (42,098) | |||
Deferred tax assets | 22 | |||
Other assets | (655) | |||
Total assets | (197) | |||
Liabilities | ||||
Financial liabilities at fair value through profit or loss | 58 | |||
Debt securities in issue | (48) | |||
Total liabilities | 10 | |||
Equity | ||||
Shareholders’ equity | (207) | |||
Total equity | (207) | |||
Total equity and liabilities | (197) | |||
Increase (decrease) due to application of IFRS 9 related to impairment [member] | ||||
Assets | ||||
Loans and advances to banks | (1) | |||
Loans and advances to customers | (1,022) | |||
Financial assets at amortised cost | (1,023) | |||
Deferred tax assets | 300 | |||
Other assets | (10) | |||
Total assets | (733) | |||
Liabilities | ||||
Other liabilities | (3) | |||
Other provisions | 243 | |||
Total liabilities | 240 | |||
Equity | ||||
Shareholders’ equity | (973) | |||
Total equity | (973) | |||
Total equity and liabilities | (733) | |||
Increase (decrease) due to application of IFRS 15 [member] | ||||
Assets | ||||
Deferred tax assets | 3 | |||
Total assets | 3 | |||
Liabilities | ||||
Other liabilities | 14 | |||
Total liabilities | 14 | |||
Equity | ||||
Shareholders’ equity | (11) | |||
Total equity | (11) | |||
Total equity and liabilities | £ 3 |
ADOPTION OF IFRS 9 AND IFRS 1_4
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Impact of Transitional Adjustments on the Group's Loss Allowances - Accumulated impairment [member] - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Impact of Transitional Adjustments on the Group's Loss Allowances [Line Items] | ||
Loans and advances to banks | £ 1 | |
Loans and advances to customers | 3,223 | |
Debt securities | 26 | |
Other | 10 | |
3,260 | ||
Provisions for undrawn commitments and financial guarantees | 273 | |
Total loss allowance | 3,533 | |
Increase (decrease) due to application of IFRS 9 related to impairment [member] | ||
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Impact of Transitional Adjustments on the Group's Loss Allowances [Line Items] | ||
Loans and advances to banks | 1 | |
Loans and advances to customers | 1,022 | |
Other | 10 | |
1,033 | ||
Provisions for undrawn commitments and financial guarantees | 243 | |
Total loss allowance | 1,276 | |
Previously stated [member] | ||
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Impact of Transitional Adjustments on the Group's Loss Allowances [Line Items] | ||
Loans and advances to customers | 2,201 | |
Debt securities | 26 | |
2,227 | £ 2,488 | |
Provisions for undrawn commitments and financial guarantees | 30 | |
Total loss allowance | £ 2,257 |
ADOPTION OF IFRS 9 AND IFRS 1_5
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 £ in Millions | Dec. 31, 2018GBP (£) |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | £ 1,276 |
IAS 39 latent risk [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | (1,133) |
12-month expected credit losses [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 619 |
Lifetime expected credit losses [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 1,203 |
Undrawn commitments [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 236 |
Economic Scenarios [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 351 |
Retail [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 760 |
Retail [Member] | Secured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 61 |
Retail [Member] | Unsecured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 566 |
Retail [Member] | UK Motor Finance [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 87 |
Retail [Member] | Other [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 46 |
Retail [Member] | IAS 39 latent risk [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | (823) |
Retail [Member] | IAS 39 latent risk [member] | Secured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | (561) |
Retail [Member] | IAS 39 latent risk [member] | Unsecured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | (133) |
Retail [Member] | IAS 39 latent risk [member] | UK Motor Finance [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | (99) |
Retail [Member] | IAS 39 latent risk [member] | Other [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | (30) |
Retail [Member] | 12-month expected credit losses [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 445 |
Retail [Member] | 12-month expected credit losses [member] | Secured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 24 |
Retail [Member] | 12-month expected credit losses [member] | Unsecured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 279 |
Retail [Member] | 12-month expected credit losses [member] | UK Motor Finance [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 112 |
Retail [Member] | 12-month expected credit losses [member] | Other [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 30 |
Retail [Member] | Lifetime expected credit losses [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 723 |
Retail [Member] | Lifetime expected credit losses [member] | Secured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 371 |
Retail [Member] | Lifetime expected credit losses [member] | Unsecured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 251 |
Retail [Member] | Lifetime expected credit losses [member] | UK Motor Finance [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 72 |
Retail [Member] | Lifetime expected credit losses [member] | Other [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 29 |
Retail [Member] | Undrawn commitments [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 176 |
Retail [Member] | Undrawn commitments [Member] | Secured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 1 |
Retail [Member] | Undrawn commitments [Member] | Unsecured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 161 |
Retail [Member] | Undrawn commitments [Member] | UK Motor Finance [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 1 |
Retail [Member] | Undrawn commitments [Member] | Other [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 13 |
Retail [Member] | Economic Scenarios [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 239 |
Retail [Member] | Economic Scenarios [Member] | Secured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 226 |
Retail [Member] | Economic Scenarios [Member] | Unsecured Debt [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 8 |
Retail [Member] | Economic Scenarios [Member] | UK Motor Finance [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 1 |
Retail [Member] | Economic Scenarios [Member] | Other [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 4 |
Commercial Banking [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 371 |
Commercial Banking [Member] | IAS 39 latent risk [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | (190) |
Commercial Banking [Member] | 12-month expected credit losses [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 108 |
Commercial Banking [Member] | Lifetime expected credit losses [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 330 |
Commercial Banking [Member] | Undrawn commitments [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 60 |
Commercial Banking [Member] | Economic Scenarios [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 63 |
Insurance and wealth [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 17 |
Insurance and wealth [Member] | IAS 39 latent risk [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | (5) |
Insurance and wealth [Member] | 12-month expected credit losses [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 15 |
Insurance and wealth [Member] | Lifetime expected credit losses [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 6 |
Insurance and wealth [Member] | Economic Scenarios [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 1 |
Other [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 128 |
Other [Member] | IAS 39 latent risk [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | (115) |
Other [Member] | 12-month expected credit losses [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 51 |
Other [Member] | Lifetime expected credit losses [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | 144 |
Other [Member] | Economic Scenarios [Member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Impairment Allowances Under IFRS 9 [Line Items] | |
Impairment allowances | £ 48 |
ADOPTION OF IFRS 9 AND IFRS 1_6
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Reclassifications £ in Millions | Dec. 31, 2018GBP (£) |
IAS 39 carrying amount [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Reclassifications [Line Items] | |
Financial assets at fair value through profit or loss | £ 162,878 |
Derivative financial instruments | 25,834 |
Loans and advances to banks | 6,611 |
Loans and advances to customers | 472,498 |
Debt securities | 3,643 |
Financial assets at amortised cost | 482,752 |
Available-for-sale financial assets | 42,098 |
Other assets | 13,537 |
Total | 727,099 |
Financial liabilities at fair value through profit or loss | 50,877 |
Debt securities in issue | 72,450 |
Total | 123,327 |
IFRS 9 Reclassification at fair value through profit or loss [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Reclassifications [Line Items] | |
Financial assets at fair value through profit or loss | 14,447 |
Derivative financial instruments | (360) |
Loans and advances to banks | (2,274) |
Loans and advances to customers | (10,474) |
Financial assets at amortised cost | (12,748) |
Available-for-sale financial assets | (684) |
Other assets | (655) |
Financial liabilities at fair value through profit or loss | 48 |
Debt securities in issue | (48) |
IFRS 9 Reclassification at fair value through other comprehensive income [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Reclassifications [Line Items] | |
Financial assets at fair value through profit or loss | (1,139) |
Loans and advances to banks | (90) |
Debt securities | (329) |
Financial assets at amortised cost | (419) |
Financial assets at fair value through other comprehensive income | 42,972 |
Available-for-sale financial assets | (41,414) |
Total reclassification [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Reclassifications [Line Items] | |
Financial assets at fair value through profit or loss | 13,308 |
Derivative financial instruments | (360) |
Loans and advances to banks | (2,364) |
Loans and advances to customers | (10,474) |
Debt securities | (329) |
Financial assets at amortised cost | (13,167) |
Financial assets at fair value through other comprehensive income | 42,972 |
Available-for-sale financial assets | (42,098) |
Other assets | (655) |
Financial liabilities at fair value through profit or loss | 48 |
Debt securities in issue | (48) |
IFRS 9 remeasurement [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Reclassifications [Line Items] | |
Financial assets at fair value through profit or loss | (178) |
Loans and advances to customers | 14 |
Financial assets at amortised cost | 14 |
Financial assets at fair value through other comprehensive income | (55) |
Total | (219) |
Financial liabilities at fair value through profit or loss | 10 |
Total | 10 |
Before IFRS 9 impairment adjustments [member] | |
ADOPTION OF IFRS 9 AND IFRS 15 (Details) - Schedule of Reclassifications [Line Items] | |
Financial assets at fair value through profit or loss | 176,008 |
Derivative financial instruments | 25,474 |
Loans and advances to banks | 4,247 |
Loans and advances to customers | 462,038 |
Debt securities | 3,314 |
Financial assets at amortised cost | 469,599 |
Financial assets at fair value through other comprehensive income | 42,917 |
Other assets | 12,882 |
Total | 726,880 |
Financial liabilities at fair value through profit or loss | 50,935 |
Debt securities in issue | 72,402 |
Total | £ 123,337 |
FUTURE ACCOUNTING DEVELOPMENTS
FUTURE ACCOUNTING DEVELOPMENTS (Details) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
At cost or in accordance with IFRS 16 within fair value model [member] | ||
FUTURE ACCOUNTING DEVELOPMENTS (Details) [Line Items] | ||
Additions to right-of-use assets | £ 1,800 | |
IAS 12 [member] | ||
FUTURE ACCOUNTING DEVELOPMENTS (Details) [Line Items] | ||
Reclassified tax credit | £ 106 | £ 102 |
PARENT COMPANY DISCLOSURES (Det
PARENT COMPANY DISCLOSURES (Details) - Parent Company [Member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PARENT COMPANY DISCLOSURES (Details) [Line Items] | |||
Profit Attributable To Other Equity Holders | £ 433 | £ (415) | £ 412 |
Tax Credit Attributable To Ordinary Shareholders | 82 | 79 | 82 |
Payments of other equity instruments | £ 82 | £ 79 | £ 82 |
PARENT COMPANY DISCLOSURES (D_2
PARENT COMPANY DISCLOSURES (Details) - Company Income Statement - Parent Company [Member] - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Condensed Income Statements, Captions [Line Items] | ||||
Net interest (expense) income | £ (173) | £ (121) | £ 66 | |
Other income | 4,524 | 2,792 | 3,618 | |
Total income | 4,351 | 2,671 | 3,684 | |
Operating expenses | (246) | (255) | (221) | |
Trading surplus | 4,105 | 2,416 | 3,463 | |
Impairment | (3) | |||
Profit on ordinary activities before tax | 4,102 | 2,416 | 3,463 | |
Tax expense | (80) | (17) | (328) | |
Profit for the year | 4,022 | 2,399 | 3,135 | |
Profit attributable to ordinary shareholders | 3,589 | 1,984 | 2,723 | |
Profit attributable to other equity holders | [1] | £ 433 | £ 415 | £ 412 |
[1] | The profit after tax attributable to other equity holders of 433 million (2017: 415 million; 2016: 412 million) is offset in reserves by a tax credit attributable to ordinary shareholders of 82 million (2017: 79 million; 2016: 82 million). |
PARENT COMPANY DISCLOSURES (D_3
PARENT COMPANY DISCLOSURES (Details) - Company Balance Sheet - Parent Company [Member] - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Non-current assets: | ||||
Investment in subsidiaries | £ 46,725 | |||
Loans to subsidiaries | 24,211 | |||
Deferred tax assets | 9 | |||
70,945 | ||||
Current assets: | ||||
Derivative financial instruments | 256 | |||
Financial assets at fair value through profit or loss | 588 | |||
Other assets | 955 | |||
Amounts due from subsidiaries | 27 | |||
Cash and cash equivalents | 57 | £ 272 | £ 42 | £ 24 |
Current tax recoverable | 76 | |||
1,959 | ||||
Total assets | 72,904 | |||
Capital and reserves: | ||||
Share capital | 7,116 | |||
Share premium account | 17,719 | |||
Merger reserve | 7,423 | |||
Capital redemption reserve | 4,273 | |||
Retained profits | 2,103 | |||
Shareholders’ equity | 38,634 | |||
Other equity instruments | 6,491 | |||
Total equity | 45,125 | 43,222 | £ 43,245 | £ 42,446 |
Non-current liabilities: | ||||
Debt securities in issue | 20,394 | |||
Subordinated liabilities | 6,043 | |||
26,437 | ||||
Current liabilities: | ||||
Derivative financial instruments | 209 | |||
Other liabilities | 1,133 | |||
1,342 | ||||
Total liabilities | 27,779 | |||
Total equity and liabilities | £ 72,904 | |||
Previously stated [member] | ||||
Non-current assets: | ||||
Investment in subsidiaries | 44,863 | |||
Loans to subsidiaries | 14,379 | |||
Deferred tax assets | 22 | |||
59,264 | ||||
Current assets: | ||||
Derivative financial instruments | 265 | |||
Other assets | 961 | |||
Amounts due from subsidiaries | 47 | |||
Cash and cash equivalents | 272 | |||
Current tax recoverable | 724 | |||
2,269 | ||||
Total assets | 61,533 | |||
Capital and reserves: | ||||
Share capital | 7,197 | |||
Share premium account | 17,634 | |||
Merger reserve | 7,423 | |||
Capital redemption reserve | 4,115 | |||
Retained profits | 1,500 | |||
Shareholders’ equity | 37,869 | |||
Other equity instruments | 5,355 | |||
Total equity | 43,224 | |||
Non-current liabilities: | ||||
Debt securities in issue | 10,886 | |||
Subordinated liabilities | 3,993 | |||
14,879 | ||||
Current liabilities: | ||||
Derivative financial instruments | 327 | |||
Other liabilities | 3,103 | |||
3,430 | ||||
Total liabilities | 18,309 | |||
Total equity and liabilities | £ 61,533 |
PARENT COMPANY DISCLOSURES (D_4
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity - Parent Company [Member] - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | £ 43,222 | £ 43,245 | £ 42,446 | |
Total comprehensive income | [1] | 4,022 | 3,135 | |
Dividends paid | (2,240) | (2,014) | ||
Distributions on other equity instruments, net of tax | [2] | (351) | (330) | |
Issue of ordinary shares | 162 | |||
Share buy-back programme | (1,005) | |||
Issue of AT1 securities | 1,129 | |||
Movement in treasury shares | (74) | (301) | ||
Value of employee services: | ||||
Share option schemes | 53 | 141 | ||
Other employee award schemes | 207 | 168 | ||
Ending Balance | 45,125 | 43,222 | 43,245 | |
Previously stated [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | 43,224 | |||
Total comprehensive income | [1] | 2,399 | ||
Dividends paid | (2,284) | |||
Distributions on other equity instruments, net of tax | [2] | (336) | ||
Issue of ordinary shares | 63 | |||
Movement in treasury shares | (277) | |||
Value of employee services: | ||||
Share option schemes | 82 | |||
Other employee award schemes | 332 | |||
Ending Balance | 43,224 | |||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | (2) | |||
Value of employee services: | ||||
Ending Balance | (2) | |||
Issued capital [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | 24,831 | 24,768 | 24,558 | |
Issue of ordinary shares | 162 | |||
Share buy-back programme | (158) | |||
Redemption of preference shares | 210 | |||
Value of employee services: | ||||
Ending Balance | 24,835 | 24,831 | 24,768 | |
Issued capital [member] | Previously stated [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | 24,831 | |||
Issue of ordinary shares | 63 | |||
Value of employee services: | ||||
Ending Balance | 24,831 | |||
Merger reserve [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | 7,423 | 7,423 | 7,633 | |
Redemption of preference shares | (210) | |||
Value of employee services: | ||||
Ending Balance | 7,423 | 7,423 | 7,423 | |
Merger reserve [member] | Previously stated [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | 7,423 | |||
Value of employee services: | ||||
Ending Balance | 7,423 | |||
Capital redemption reserve [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | 4,115 | 4,115 | 4,115 | |
Share buy-back programme | 158 | |||
Value of employee services: | ||||
Ending Balance | 4,273 | 4,115 | 4,115 | |
Capital redemption reserve [member] | Previously stated [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | 4,115 | |||
Value of employee services: | ||||
Ending Balance | 4,115 | |||
Retained earnings [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | [1] | 1,498 | 1,584 | 785 |
Total comprehensive income | [1] | 4,022 | 3,135 | |
Dividends paid | [1] | (2,240) | (2,014) | |
Distributions on other equity instruments, net of tax | [1],[2] | (351) | (330) | |
Share buy-back programme | [1] | (1,005) | ||
Issue of AT1 securities | [1] | (7) | ||
Movement in treasury shares | [1] | (74) | (301) | |
Value of employee services: | ||||
Share option schemes | [1] | 53 | 141 | |
Other employee award schemes | [1] | 207 | 168 | |
Ending Balance | [1] | 2,103 | 1,498 | 1,584 |
Retained earnings [member] | Previously stated [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | [1] | 1,500 | ||
Total comprehensive income | [1] | 2,399 | ||
Dividends paid | [1] | (2,284) | ||
Distributions on other equity instruments, net of tax | [1],[2] | (336) | ||
Movement in treasury shares | [1] | (277) | ||
Value of employee services: | ||||
Share option schemes | [1] | 82 | ||
Other employee award schemes | [1] | 332 | ||
Ending Balance | [1] | 1,500 | ||
Retained earnings [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | [1] | (2) | ||
Value of employee services: | ||||
Ending Balance | [1] | (2) | ||
Equity attributable to owners of parent [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | 37,867 | 37,890 | 37,091 | |
Total comprehensive income | [1] | 4,022 | 3,135 | |
Dividends paid | (2,240) | (2,014) | ||
Distributions on other equity instruments, net of tax | [2] | (351) | (330) | |
Issue of ordinary shares | 162 | |||
Share buy-back programme | (1,005) | |||
Issue of AT1 securities | (7) | |||
Movement in treasury shares | (74) | (301) | ||
Value of employee services: | ||||
Share option schemes | 53 | 141 | ||
Other employee award schemes | 207 | 168 | ||
Ending Balance | 38,634 | 37,867 | 37,890 | |
Equity attributable to owners of parent [member] | Previously stated [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | 37,869 | |||
Total comprehensive income | [1] | 2,399 | ||
Dividends paid | (2,284) | |||
Distributions on other equity instruments, net of tax | [2] | (336) | ||
Issue of ordinary shares | 63 | |||
Movement in treasury shares | (277) | |||
Value of employee services: | ||||
Share option schemes | 82 | |||
Other employee award schemes | 332 | |||
Ending Balance | 37,869 | |||
Equity attributable to owners of parent [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | (2) | |||
Value of employee services: | ||||
Ending Balance | (2) | |||
Other equity interest [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | 5,355 | 5,355 | 5,355 | |
Issue of AT1 securities | 1,136 | |||
Value of employee services: | ||||
Ending Balance | 6,491 | 5,355 | £ 5,355 | |
Other equity interest [member] | Previously stated [member] | ||||
PARENT COMPANY DISCLOSURES (Details) - Company Statement of Changes in Equity [Line Items] | ||||
Beginning Balance | £ 5,355 | |||
Value of employee services: | ||||
Ending Balance | £ 5,355 | |||
[1] | Total comprehensive income comprises only the profit for the year. | |||
[2] | Distributions on other equity instruments are shown net of tax of 82 million (2017: 79 million; 2016: 82 million) credited to retained profits. |
PARENT COMPANY DISCLOSURES (D_5
PARENT COMPANY DISCLOSURES (Details) - Company Cash Flow Statement - Parent Company [Member] - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Profit before tax | £ 4,102 | £ 2,416 | £ 3,463 |
Fair value and exchange adjustments and other non-cash items | (715) | 495 | 1,986 |
Change in other assets | (572) | 18 | (50) |
Change in other liabilities and other items | 7,538 | 8,431 | (8,392) |
Dividends received | (4,000) | (2,650) | (3,759) |
Distributions on other equity instruments received | (324) | (292) | (119) |
Tax (paid) received | 660 | (197) | (679) |
Net cash provided by (used in) operating activities | 6,689 | 8,221 | (7,550) |
Cash flows from investing activities | |||
Return of capital contribution | 9 | 77 | 441 |
Dividends received | 4,000 | 2,650 | 3,759 |
Distributions on other equity instruments received | 324 | 292 | 119 |
Acquisition of and capital injections to subsidiaries | (12,753) | (320) | (3,522) |
Return of capital | 11,114 | ||
Amounts advanced to subsidiaries | (21,577) | (8,476) | (4,978) |
Repayment of loans to subsidiaries | 12,602 | 475 | 13,166 |
Interest received on loans to subsidiaries | 370 | 244 | 496 |
Net cash (used in) provided by investing activities | (5,911) | (5,058) | 9,481 |
Cash flows from financing activities | |||
Dividends paid to ordinary shareholders | (2,240) | (2,284) | (2,014) |
Distributions on other equity instruments | (433) | (415) | (412) |
Issue of subordinated liabilities | 1,729 | 1,061 | |
Interest paid on subordinated liabilities | (275) | (248) | (229) |
Share buy-back | (1,005) | ||
Issue of other equity instruments | 1,129 | ||
Repayment of subordinated liabilities | (319) | ||
Proceeds from issue of ordinary shares | 102 | 14 | |
Net cash provided by financing activities | (993) | (2,933) | (1,913) |
Change in cash and cash equivalents | (215) | 230 | 18 |
Cash and cash equivalents at beginning of year | 272 | 42 | 24 |
Cash and cash equivalents at end of year | £ 57 | £ 272 | £ 42 |
PARENT COMPANY DISCLOSURES (D_6
PARENT COMPANY DISCLOSURES (Details) - Interests In Subsidiaries | 12 Months Ended | |
Dec. 31, 2018 | ||
Banking and financial services [Member] | Lloyds Bank plc [Member] | ||
PARENT COMPANY DISCLOSURES (Details) - Interests In Subsidiaries [Line Items] | ||
Country of registration/Incorporation | England | |
Percentage of equity share capital and voting rights held | 100.00% | |
Banking and financial services [Member] | Bank of Scotland plc [Member] | ||
PARENT COMPANY DISCLOSURES (Details) - Interests In Subsidiaries [Line Items] | ||
Country of registration/Incorporation | Scotland | |
Percentage of equity share capital and voting rights held | [1] | |
Banking and financial services [Member] | Lloyds Bank Corporate Markets plc [member] | ||
PARENT COMPANY DISCLOSURES (Details) - Interests In Subsidiaries [Line Items] | ||
Country of registration/Incorporation | England | |
Percentage of equity share capital and voting rights held | 100.00% | |
Life assurance [Member] | Scottish Widows Limited [Member] | ||
PARENT COMPANY DISCLOSURES (Details) - Interests In Subsidiaries [Line Items] | ||
Country of registration/Incorporation | Scotland | |
Percentage of equity share capital and voting rights held | [1] | |
Holding company [Member] | HBOS plc [Member] | ||
PARENT COMPANY DISCLOSURES (Details) - Interests In Subsidiaries [Line Items] | ||
Country of registration/Incorporation | Scotland | |
Percentage of equity share capital and voting rights held | [1] | |
[1] | Indirect interest. |
CONDENSED CONSOLIDATING FINAN_3
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) [Line Items] | |||
Proportion of ownership interest in subsidiary | 100.00% | ||
Parent [member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) [Line Items] | |||
Increase (decrease) In Profit (loss) Due To Accounting In Accordance With Rule 3-10 of Regulation S-X | £ 280 | £ 1,408 | £ (1,072) |
Increase (decrease) In Net Assets Due To Accounting In Accordance With Rule 3-10 of Regulation S-X | 4,800 | 5,682 | |
Lloyds Bank [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) [Line Items] | |||
Increase (decrease) In Profit (loss) Due To Accounting In Accordance With Rule 3-10 of Regulation S-X | (1,453) | (1,140) | £ (851) |
Increase (decrease) In Net Assets Due To Accounting In Accordance With Rule 3-10 of Regulation S-X | £ (11,994) | £ (9,962) |
CONDENSED CONSOLIDATING FINAN_4
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - INCOME STATEMENTS - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - INCOME STATEMENTS [Line Items] | |||
Net interest income | £ 13,396 | £ 10,912 | £ 9,274 |
Other income | 8,695 | 23,325 | 30,337 |
Total income | 22,091 | 34,237 | 39,611 |
Insurance claims | (3,465) | (15,578) | (22,344) |
Total income, net of insurance claims | 18,626 | 18,659 | 17,267 |
Operating expenses | (11,729) | (12,346) | (12,627) |
Trading surplus | 6,897 | 6,313 | 4,640 |
Impairment | (937) | (688) | (752) |
Profit before tax | 5,960 | 5,625 | 3,888 |
Taxation | (1,560) | (1,728) | (1,724) |
Profit for the year | 4,400 | 3,897 | 2,164 |
Parent [member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - INCOME STATEMENTS [Line Items] | |||
Net interest income | (173) | (121) | 66 |
Other income | 4,524 | 2,792 | 3,618 |
Total income | 4,351 | 2,671 | 3,684 |
Total income, net of insurance claims | 4,351 | 2,671 | 3,684 |
Operating expenses | (246) | (255) | (221) |
Trading surplus | 4,105 | 2,416 | 3,463 |
Impairment | (3) | ||
Profit before tax | 4,102 | 2,416 | 3,463 |
Taxation | (80) | (17) | (328) |
Profit for the year | 4,022 | 2,399 | 3,135 |
Lloyds Bank [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - INCOME STATEMENTS [Line Items] | |||
Net interest income | 6,129 | 5,829 | 4,883 |
Other income | 7,992 | 7,642 | 5,489 |
Total income | 14,121 | 13,471 | 10,372 |
Total income, net of insurance claims | 14,121 | 13,471 | 10,372 |
Operating expenses | (6,492) | (7,201) | (7,722) |
Trading surplus | 7,629 | 6,270 | 2,650 |
Impairment | (504) | (462) | (620) |
Profit before tax | 7,125 | 5,808 | 2,030 |
Taxation | (853) | (529) | (77) |
Profit for the year | 6,272 | 5,279 | 1,953 |
Subsidiaries [member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - INCOME STATEMENTS [Line Items] | |||
Net interest income | 7,769 | 5,360 | 4,661 |
Other income | 7,136 | 22,553 | 30,349 |
Total income | 14,905 | 27,913 | 35,010 |
Insurance claims | (3,465) | (15,578) | (22,344) |
Total income, net of insurance claims | 11,440 | 12,335 | 12,666 |
Operating expenses | (7,033) | (6,939) | (6,380) |
Trading surplus | 4,407 | 5,396 | 6,286 |
Impairment | (480) | (281) | (239) |
Profit before tax | 3,927 | 5,115 | 6,047 |
Taxation | (795) | (1,153) | (1,815) |
Profit for the year | 3,132 | 3,962 | 4,232 |
Consolidation adjustments [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - INCOME STATEMENTS [Line Items] | |||
Net interest income | (329) | (156) | (336) |
Other income | (10,957) | (9,662) | (9,119) |
Total income | (11,286) | (9,818) | (9,455) |
Total income, net of insurance claims | (11,286) | (9,818) | (9,455) |
Operating expenses | 2,042 | 2,049 | 1,696 |
Trading surplus | (9,244) | (7,769) | (7,759) |
Impairment | 50 | 55 | 107 |
Profit before tax | (9,194) | (7,714) | (7,652) |
Taxation | 168 | (29) | 496 |
Profit for the year | £ (9,026) | £ (7,743) | £ (7,156) |
CONDENSED CONSOLIDATING FINAN_5
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Line Items] | |||
Profit (loss) for the year | £ 4,400 | £ 3,897 | £ 2,164 |
Post-retirement defined benefit scheme remeasurements: | |||
Remeasurements before taxation | 167 | 628 | (1,348) |
Taxation | (47) | (146) | 320 |
120 | 482 | (1,028) | |
Movements in revaluation reserve in respect of equity shares held at fair value through other comprehensive income: | |||
Change in fair value | (97) | ||
Tax | 22 | ||
(75) | |||
Gains and losses attributable to own credit risk: | |||
Gains (losses) before tax | 533 | (55) | |
Tax | (144) | 15 | |
389 | (40) | ||
Movements in revaluation reserve in respect of available-for-sale financial assets: | |||
Adjustment on transfer from held-to-maturity portfolio | (74) | 1,544 | |
Change in fair value | 303 | 356 | |
Income statement transfers in respect of disposals | (446) | (575) | |
Income statement transfers in respect of impairment | 6 | 173 | |
Taxation | 63 | (301) | |
(74) | 1,197 | ||
Share of other comprehensive income of associates and joint ventures | 8 | ||
Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income: | |||
Change in fair value | (37) | ||
Income statement transfers in respect of disposals | (275) | ||
Taxation | 119 | ||
(193) | |||
Movements in cash flow hedging reserve: | |||
Effective portion of changes in fair value | 234 | (363) | 2,432 |
Net income statement transfers | (701) | (651) | (557) |
Taxation | 113 | 283 | (466) |
(354) | (731) | 1,409 | |
Currency translation differences (tax: nil) | (8) | (32) | (4) |
Other comprehensive income for the year, net of tax | (113) | (395) | 1,574 |
Total comprehensive income for the year | 4,287 | 3,502 | 3,738 |
Total comprehensive income attributable to ordinary shareholders | 3,756 | 2,997 | 3,225 |
Total comprehensive income attributable to other equity holders | 433 | 415 | 412 |
Total comprehensive income attributable to equity holders | 4,189 | 3,412 | 3,637 |
Total comprehensive income attributable to non-controlling interests | 98 | 90 | 101 |
Parent [member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Line Items] | |||
Profit (loss) for the year | 4,022 | 2,399 | 3,135 |
Movements in cash flow hedging reserve: | |||
Total comprehensive income for the year | 4,022 | 2,399 | 3,135 |
Total comprehensive income attributable to ordinary shareholders | 3,589 | 1,984 | 2,723 |
Total comprehensive income attributable to other equity holders | 433 | 415 | 412 |
Total comprehensive income attributable to equity holders | 4,022 | 2,399 | 3,135 |
Lloyds Bank [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Line Items] | |||
Profit (loss) for the year | 6,272 | 5,279 | 1,953 |
Post-retirement defined benefit scheme remeasurements: | |||
Remeasurements before taxation | (206) | 442 | (682) |
Taxation | 44 | (110) | 184 |
(162) | 332 | (498) | |
Movements in revaluation reserve in respect of equity shares held at fair value through other comprehensive income: | |||
Change in fair value | (102) | ||
(102) | |||
Gains and losses attributable to own credit risk: | |||
Gains (losses) before tax | 533 | (55) | |
Tax | (144) | 15 | |
389 | (40) | ||
Movements in revaluation reserve in respect of available-for-sale financial assets: | |||
Adjustment on transfer from held-to-maturity portfolio | 1,544 | ||
Change in fair value | 231 | 268 | |
Income statement transfers in respect of disposals | (333) | (507) | |
Income statement transfers in respect of impairment | 172 | ||
Taxation | 46 | (269) | |
(56) | 1,208 | ||
Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income: | |||
Change in fair value | (58) | ||
Income statement transfers in respect of disposals | (258) | ||
Taxation | 114 | ||
(202) | |||
Movements in cash flow hedging reserve: | |||
Effective portion of changes in fair value | 255 | 15 | 1,290 |
Net income statement transfers | (628) | (436) | (241) |
Taxation | 87 | 130 | (258) |
(286) | (291) | 791 | |
Currency translation differences (tax: nil) | 2 | (5) | 19 |
Other comprehensive income for the year, net of tax | (361) | (60) | 1,520 |
Total comprehensive income for the year | 5,911 | 5,219 | 3,473 |
Total comprehensive income attributable to ordinary shareholders | 5,636 | 4,946 | 3,354 |
Total comprehensive income attributable to other equity holders | 275 | 273 | 119 |
Total comprehensive income attributable to equity holders | 5,911 | 5,219 | 3,473 |
Subsidiaries [member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Line Items] | |||
Profit (loss) for the year | 3,132 | 3,962 | 4,232 |
Post-retirement defined benefit scheme remeasurements: | |||
Remeasurements before taxation | 373 | 186 | (666) |
Taxation | (91) | (36) | 136 |
282 | 150 | (530) | |
Movements in revaluation reserve in respect of equity shares held at fair value through other comprehensive income: | |||
Change in fair value | 9 | ||
9 | |||
Movements in revaluation reserve in respect of available-for-sale financial assets: | |||
Change in fair value | 38 | 84 | |
Income statement transfers in respect of disposals | (131) | (68) | |
Income statement transfers in respect of impairment | 9 | 1 | |
Taxation | 17 | (32) | |
(67) | (15) | ||
Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income: | |||
Change in fair value | (35) | ||
Income statement transfers in respect of disposals | (6) | ||
Taxation | 5 | ||
(36) | |||
Movements in cash flow hedging reserve: | |||
Effective portion of changes in fair value | (89) | (136) | 125 |
Net income statement transfers | (29) | 46 | (233) |
Taxation | 31 | 23 | 29 |
(87) | (67) | (79) | |
Currency translation differences (tax: nil) | (10) | (27) | 44 |
Other comprehensive income for the year, net of tax | 158 | (11) | (580) |
Total comprehensive income for the year | 3,290 | 3,951 | 3,652 |
Total comprehensive income attributable to ordinary shareholders | 3,085 | 3,740 | 3,450 |
Total comprehensive income attributable to other equity holders | 107 | 121 | 101 |
Total comprehensive income attributable to equity holders | 3,192 | 3,861 | 3,551 |
Total comprehensive income attributable to non-controlling interests | 98 | 90 | 101 |
Consolidation adjustments [Member] | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Line Items] | |||
Profit (loss) for the year | (9,026) | (7,743) | (7,156) |
Movements in revaluation reserve in respect of equity shares held at fair value through other comprehensive income: | |||
Change in fair value | (4) | ||
Tax | 22 | ||
18 | |||
Movements in revaluation reserve in respect of available-for-sale financial assets: | |||
Change in fair value | 34 | 4 | |
Income statement transfers in respect of disposals | 18 | ||
Income statement transfers in respect of impairment | (3) | ||
49 | 4 | ||
Share of other comprehensive income of associates and joint ventures | 8 | ||
Movements in revaluation reserve in respect of debt securities held at fair value through other comprehensive income: | |||
Change in fair value | 56 | ||
Income statement transfers in respect of disposals | (11) | ||
45 | |||
Movements in cash flow hedging reserve: | |||
Effective portion of changes in fair value | 68 | (242) | 1,017 |
Net income statement transfers | (44) | (261) | (83) |
Taxation | (5) | 130 | (237) |
19 | (373) | 697 | |
Currency translation differences (tax: nil) | (67) | ||
Other comprehensive income for the year, net of tax | 90 | (324) | 634 |
Total comprehensive income for the year | (8,936) | (8,067) | (6,522) |
Total comprehensive income attributable to ordinary shareholders | (8,554) | (7,673) | (6,302) |
Total comprehensive income attributable to other equity holders | (382) | (394) | (220) |
Total comprehensive income attributable to equity holders | £ (8,936) | £ (8,067) | £ (6,522) |
CONDENSED CONSOLIDATING FINAN_6
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - BALANCE SHEETS - GBP (£) £ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and balances at central banks | £ 54,663 | £ 58,521 | ||
Items in course of collection from banks | 647 | 755 | ||
Financial assets at fair value through profit or loss | 158,529 | 176,008 | ||
Derivative financial instruments | 23,595 | 25,474 | ||
At amortised cost: | ||||
Loans and advances to banks | 6,283 | 4,246 | ||
Loans and advances to customers | 484,858 | 461,016 | ||
Debt securities | 5,238 | 3,314 | ||
Financial assets at fair value through other comprehensive income | 24,815 | 42,917 | ||
Goodwill | 2,310 | 2,310 | £ 2,016 | |
Value of in-force business | 4,762 | 4,839 | ||
Other intangible assets | 3,347 | 2,835 | ||
Property, plant and equipment | 12,300 | 12,727 | ||
Current tax recoverable | 5 | 16 | ||
Deferred tax assets | 2,453 | 2,609 | ||
Retirement benefit assets | 1,267 | 723 | ||
Other assets | 12,526 | 12,872 | ||
Total assets | 797,598 | 811,182 | ||
Liabilities | ||||
Deposits from banks | 30,320 | 29,804 | ||
Customer deposits | 418,066 | 418,124 | ||
Items in course of transmission to banks | 636 | 584 | ||
Financial liabilities at fair value through profit or loss | 30,547 | 50,935 | ||
Derivative financial instruments | 21,373 | 26,124 | ||
Notes in circulation | 1,104 | 1,313 | ||
Debt securities in issue | 91,168 | 72,402 | ||
Liabilities arising from insurance contracts and participating investment contracts | 98,874 | 103,413 | ||
Liabilities arising from non-participating investment contracts | 13,853 | 15,447 | ||
Other liabilities | 19,633 | |||
Retirement benefit obligations | 245 | 358 | ||
Current tax liabilities | 377 | |||
Other provisions | 3,547 | 5,789 | ||
Subordinated liabilities | 17,656 | 17,922 | 19,831 | |
Total liabilities | 747,399 | 763,230 | ||
Equity | ||||
Shareholders’ equity | 43,434 | 42,360 | ||
Other equity instruments | 6,491 | 5,355 | ||
Total equity excluding non-controlling interests | 49,925 | |||
Non-controlling interests | 274 | 237 | ||
Total equity | 50,199 | 47,952 | 48,465 | £ 46,980 |
Total equity and liabilities | 797,598 | 811,182 | ||
Previously stated [member] | ||||
Assets | ||||
Cash and balances at central banks | 58,521 | 47,452 | ||
Items in course of collection from banks | 755 | |||
Financial assets at fair value through profit or loss | 162,878 | |||
Derivative financial instruments | 25,834 | |||
At amortised cost: | ||||
Loans and advances to banks | 6,611 | £ 26,902 | ||
Loans and advances to customers | 472,498 | |||
Debt securities | 3,643 | |||
Available-for-sale financial assets | 42,098 | |||
Financial assets at fair value through other comprehensive income | 42,098 | |||
Goodwill | 2,310 | |||
Value of in-force business | 4,839 | |||
Other intangible assets | 2,835 | |||
Property, plant and equipment | 12,727 | |||
Current tax recoverable | 16 | |||
Deferred tax assets | 2,284 | |||
Retirement benefit assets | 723 | |||
Other assets | 13,537 | |||
Total assets | 812,109 | |||
Liabilities | ||||
Deposits from banks | 29,804 | |||
Customer deposits | 418,124 | |||
Items in course of transmission to banks | 584 | |||
Financial liabilities at fair value through profit or loss | 50,877 | |||
Derivative financial instruments | 26,124 | |||
Notes in circulation | 1,313 | |||
Debt securities in issue | 72,450 | |||
Liabilities arising from insurance contracts and participating investment contracts | 103,413 | |||
Liabilities arising from non-participating investment contracts | 15,447 | |||
Other liabilities | 20,730 | |||
Retirement benefit obligations | 358 | |||
Current tax liabilities | 274 | |||
Other provisions | 5,546 | |||
Subordinated liabilities | 17,922 | |||
Total liabilities | 762,966 | |||
Equity | ||||
Shareholders’ equity | 43,551 | |||
Other equity instruments | 5,355 | |||
Total equity excluding non-controlling interests | 48,906 | |||
Non-controlling interests | 237 | |||
Total equity | 49,143 | |||
Total equity and liabilities | 812,109 | |||
Parent [member] | ||||
Assets | ||||
Cash and balances at central banks | ||||
Financial assets at fair value through profit or loss | 588 | |||
Derivative financial instruments | 256 | |||
At amortised cost: | ||||
Due from fellow Lloyds Banking Group undertakings | 24,295 | |||
Current tax recoverable | 76 | |||
Deferred tax assets | 9 | |||
Investment in subsidiary undertakings, including assets held for sale | 46,725 | |||
Other assets | 955 | |||
Total assets | 72,904 | |||
Liabilities | ||||
Due to fellow Lloyds Banking Group undertakings | 51 | |||
Derivative financial instruments | 209 | |||
Debt securities in issue | 20,394 | |||
Other liabilities | 1,082 | |||
Subordinated liabilities | 6,043 | |||
Total liabilities | 27,779 | |||
Equity | ||||
Shareholders’ equity | 38,634 | |||
Other equity instruments | 6,491 | |||
Total equity excluding non-controlling interests | 45,125 | |||
Total equity | 45,125 | |||
Total equity and liabilities | 72,904 | |||
Parent [member] | Previously stated [member] | ||||
Assets | ||||
Derivative financial instruments | 265 | |||
At amortised cost: | ||||
Due from fellow Lloyds Banking Group undertakings | 14,698 | |||
Current tax recoverable | 724 | |||
Deferred tax assets | 22 | |||
Investment in subsidiary undertakings, including assets held for sale | 44,863 | |||
Other assets | 961 | |||
Total assets | 61,533 | |||
Liabilities | ||||
Due to fellow Lloyds Banking Group undertakings | 2,168 | |||
Derivative financial instruments | 327 | |||
Debt securities in issue | 10,886 | |||
Other liabilities | 935 | |||
Subordinated liabilities | 3,993 | |||
Total liabilities | 18,309 | |||
Equity | ||||
Shareholders’ equity | 37,869 | |||
Other equity instruments | 5,355 | |||
Total equity excluding non-controlling interests | 43,224 | |||
Total equity | 43,224 | |||
Total equity and liabilities | 61,533 | |||
Lloyds Bank [Member] | ||||
Assets | ||||
Cash and balances at central banks | 37,632 | |||
Items in course of collection from banks | 464 | |||
Financial assets at fair value through profit or loss | 20,843 | |||
Derivative financial instruments | 15,431 | |||
At amortised cost: | ||||
Loans and advances to banks | 3,153 | |||
Loans and advances to customers | 172,315 | |||
Debt securities | 4,960 | |||
Due from fellow Lloyds Banking Group undertakings | 173,475 | |||
Financial assets at fair value through other comprehensive income | 23,208 | |||
Other intangible assets | 2,062 | |||
Property, plant and equipment | 2,940 | |||
Deferred tax assets | 1,980 | |||
Retirement benefit assets | 704 | |||
Investment in subsidiary undertakings, including assets held for sale | 32,656 | |||
Other assets | 849 | |||
Total assets | 492,672 | |||
Liabilities | ||||
Deposits from banks | 5,320 | |||
Customer deposits | 229,402 | |||
Due to fellow Lloyds Banking Group undertakings | 88,383 | |||
Items in course of transmission to banks | 341 | |||
Financial liabilities at fair value through profit or loss | 17,719 | |||
Derivative financial instruments | 14,546 | |||
Debt securities in issue | 70,556 | |||
Other liabilities | 2,643 | |||
Retirement benefit obligations | 121 | |||
Current tax liabilities | 231 | |||
Other provisions | 1,608 | |||
Subordinated liabilities | 9,528 | |||
Total liabilities | 440,398 | |||
Equity | ||||
Shareholders’ equity | 49,057 | |||
Other equity instruments | 3,217 | |||
Total equity excluding non-controlling interests | 52,274 | |||
Total equity | 52,274 | |||
Total equity and liabilities | 492,672 | |||
Lloyds Bank [Member] | Previously stated [member] | ||||
Assets | ||||
Cash and balances at central banks | 55,835 | |||
Items in course of collection from banks | 490 | |||
Financial assets at fair value through profit or loss | 43,977 | |||
Derivative financial instruments | 26,764 | |||
At amortised cost: | ||||
Loans and advances to banks | 3,611 | |||
Loans and advances to customers | 170,804 | |||
Debt securities | 3,182 | |||
Due from fellow Lloyds Banking Group undertakings | 180,772 | |||
Available-for-sale financial assets | 42,566 | |||
Other intangible assets | 1,415 | |||
Property, plant and equipment | 3,252 | |||
Deferred tax assets | 1,995 | |||
Retirement benefit assets | 673 | |||
Investment in subsidiary undertakings, including assets held for sale | 40,500 | |||
Other assets | 1,117 | |||
Total assets | 576,953 | |||
Liabilities | ||||
Deposits from banks | 7,538 | |||
Customer deposits | 234,397 | |||
Due to fellow Lloyds Banking Group undertakings | 112,769 | |||
Items in course of transmission to banks | 304 | |||
Financial liabilities at fair value through profit or loss | 51,045 | |||
Derivative financial instruments | 28,267 | |||
Debt securities in issue | 66,249 | |||
Other liabilities | 3,425 | |||
Retirement benefit obligations | 143 | |||
Current tax liabilities | 105 | |||
Other provisions | 2,593 | |||
Subordinated liabilities | 9,341 | |||
Total liabilities | 516,176 | |||
Equity | ||||
Shareholders’ equity | 57,560 | |||
Other equity instruments | 3,217 | |||
Total equity excluding non-controlling interests | 60,777 | |||
Total equity | 60,777 | |||
Total equity and liabilities | 576,953 | |||
Subsidiaries [member] | ||||
Assets | ||||
Cash and balances at central banks | 17,031 | |||
Items in course of collection from banks | 183 | |||
Financial assets at fair value through profit or loss | 139,339 | |||
Derivative financial instruments | 26,872 | |||
At amortised cost: | ||||
Loans and advances to banks | 3,105 | |||
Loans and advances to customers | 312,388 | |||
Debt securities | 271 | |||
Due from fellow Lloyds Banking Group undertakings | 99,186 | |||
Financial assets at fair value through other comprehensive income | 1,607 | |||
Goodwill | 2,331 | |||
Value of in-force business | 4,543 | |||
Other intangible assets | 318 | |||
Property, plant and equipment | 9,346 | |||
Current tax recoverable | 227 | |||
Deferred tax assets | 2,278 | |||
Retirement benefit assets | 551 | |||
Other assets | 11,366 | |||
Total assets | 630,942 | |||
Liabilities | ||||
Deposits from banks | 25,002 | |||
Customer deposits | 188,735 | |||
Due to fellow Lloyds Banking Group undertakings | 175,761 | |||
Items in course of transmission to banks | 295 | |||
Financial liabilities at fair value through profit or loss | 14,177 | |||
Derivative financial instruments | 25,582 | |||
Notes in circulation | 1,104 | |||
Debt securities in issue | 30,102 | |||
Liabilities arising from insurance contracts and participating investment contracts | 98,890 | |||
Liabilities arising from non-participating investment contracts | 13,853 | |||
Other liabilities | 18,793 | |||
Retirement benefit obligations | 122 | |||
Current tax liabilities | 639 | |||
Deferred tax liabilities | 750 | |||
Other provisions | 2,135 | |||
Subordinated liabilities | 6,611 | |||
Total liabilities | 602,551 | |||
Equity | ||||
Shareholders’ equity | 25,530 | |||
Other equity instruments | 2,587 | |||
Total equity excluding non-controlling interests | 28,117 | |||
Non-controlling interests | 274 | |||
Total equity | 28,391 | |||
Total equity and liabilities | 630,942 | |||
Subsidiaries [member] | Previously stated [member] | ||||
Assets | ||||
Cash and balances at central banks | 2,686 | |||
Items in course of collection from banks | 265 | |||
Financial assets at fair value through profit or loss | 126,864 | |||
Derivative financial instruments | 14,785 | |||
At amortised cost: | ||||
Loans and advances to banks | 2,975 | |||
Loans and advances to customers | 294,463 | |||
Debt securities | 420 | |||
Due from fellow Lloyds Banking Group undertakings | 119,914 | |||
Available-for-sale financial assets | 1,582 | |||
Goodwill | 2,332 | |||
Value of in-force business | 4,590 | |||
Other intangible assets | 345 | |||
Property, plant and equipment | 9,526 | |||
Current tax recoverable | 26 | |||
Deferred tax assets | 2,285 | |||
Retirement benefit assets | 69 | |||
Other assets | 12,107 | |||
Total assets | 595,234 | |||
Liabilities | ||||
Deposits from banks | 22,268 | |||
Customer deposits | 183,830 | |||
Due to fellow Lloyds Banking Group undertakings | 179,952 | |||
Items in course of transmission to banks | 280 | |||
Financial liabilities at fair value through profit or loss | 53 | |||
Derivative financial instruments | 13,510 | |||
Notes in circulation | 1,313 | |||
Debt securities in issue | 15,847 | |||
Liabilities arising from insurance contracts and participating investment contracts | 103,434 | |||
Liabilities arising from non-participating investment contracts | 15,447 | |||
Other liabilities | 18,480 | |||
Retirement benefit obligations | 134 | |||
Current tax liabilities | 1,242 | |||
Deferred tax liabilities | 779 | |||
Other provisions | 2,865 | |||
Subordinated liabilities | 8,288 | |||
Total liabilities | 567,722 | |||
Equity | ||||
Shareholders’ equity | 25,470 | |||
Other equity instruments | 1,805 | |||
Total equity excluding non-controlling interests | 27,275 | |||
Non-controlling interests | 237 | |||
Total equity | 27,512 | |||
Total equity and liabilities | 595,234 | |||
Consolidation adjustments [Member] | ||||
Assets | ||||
Cash and balances at central banks | ||||
Financial assets at fair value through profit or loss | (2,241) | |||
Derivative financial instruments | (18,964) | |||
At amortised cost: | ||||
Loans and advances to banks | 25 | |||
Loans and advances to customers | 155 | |||
Debt securities | 7 | |||
Due from fellow Lloyds Banking Group undertakings | (296,956) | |||
Goodwill | (21) | |||
Value of in-force business | 219 | |||
Other intangible assets | 967 | |||
Property, plant and equipment | 14 | |||
Current tax recoverable | (298) | |||
Deferred tax assets | (1,814) | |||
Retirement benefit assets | 12 | |||
Investment in subsidiary undertakings, including assets held for sale | (79,381) | |||
Other assets | (644) | |||
Total assets | (398,920) | |||
Liabilities | ||||
Deposits from banks | (2) | |||
Customer deposits | (71) | |||
Due to fellow Lloyds Banking Group undertakings | (264,195) | |||
Financial liabilities at fair value through profit or loss | (1,349) | |||
Derivative financial instruments | (18,964) | |||
Debt securities in issue | (29,884) | |||
Liabilities arising from insurance contracts and participating investment contracts | (16) | |||
Other liabilities | (2,885) | |||
Retirement benefit obligations | 2 | |||
Current tax liabilities | (493) | |||
Deferred tax liabilities | (750) | |||
Other provisions | (196) | |||
Subordinated liabilities | (4,526) | |||
Total liabilities | (323,329) | |||
Equity | ||||
Shareholders’ equity | (69,787) | |||
Other equity instruments | (5,804) | |||
Total equity excluding non-controlling interests | (75,591) | |||
Total equity | (75,591) | |||
Total equity and liabilities | £ (398,920) | |||
Consolidation adjustments [Member] | Previously stated [member] | ||||
Assets | ||||
Financial assets at fair value through profit or loss | (7,963) | |||
Derivative financial instruments | (15,980) | |||
At amortised cost: | ||||
Loans and advances to banks | 25 | |||
Loans and advances to customers | 7,231 | |||
Debt securities | 41 | |||
Due from fellow Lloyds Banking Group undertakings | (315,384) | |||
Available-for-sale financial assets | (2,050) | |||
Goodwill | (22) | |||
Value of in-force business | 249 | |||
Other intangible assets | 1,075 | |||
Property, plant and equipment | (51) | |||
Current tax recoverable | (734) | |||
Deferred tax assets | (2,018) | |||
Retirement benefit assets | (19) | |||
Investment in subsidiary undertakings, including assets held for sale | (85,363) | |||
Other assets | (648) | |||
Total assets | (421,611) | |||
Liabilities | ||||
Deposits from banks | (2) | |||
Customer deposits | (103) | |||
Due to fellow Lloyds Banking Group undertakings | (294,889) | |||
Financial liabilities at fair value through profit or loss | (221) | |||
Derivative financial instruments | (15,980) | |||
Debt securities in issue | (20,532) | |||
Liabilities arising from insurance contracts and participating investment contracts | (21) | |||
Other liabilities | (2,110) | |||
Retirement benefit obligations | 81 | |||
Current tax liabilities | (1,073) | |||
Deferred tax liabilities | (779) | |||
Other provisions | 88 | |||
Subordinated liabilities | (3,700) | |||
Total liabilities | (339,241) | |||
Equity | ||||
Shareholders’ equity | (77,348) | |||
Other equity instruments | (5,022) | |||
Total equity excluding non-controlling interests | (82,370) | |||
Total equity | (82,370) | |||
Total equity and liabilities | £ (421,611) |
CONDENSED CONSOLIDATING FINAN_7
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CASH FLOW STATEMENTS - GBP (£) £ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CASH FLOW STATEMENTS [Line Items] | |||||
Net cash provided by (used in) operating activities | £ (11,107) | ||||
Financial assets at fair value through other comprehensive income: | |||||
Purchases | (12,657) | ||||
Proceeds from sale and maturity | 26,806 | ||||
Purchase of fixed assets | (3,514) | ||||
Proceeds from sale of fixed assets | 1,334 | ||||
Acquisitions of and capital injections to subsidiaries | (49) | ||||
Disposal of businesses, net of cash disposed | 1 | ||||
Net cash flows from investing activities | 11,921 | ||||
Dividends paid to ordinary shareholders | (2,240) | £ (2,288) | £ (2,034) | ||
Distributions on other equity instruments | (433) | ||||
Dividends paid to non-controlling interests | (61) | ||||
Interest paid on subordinated liabilities | (1,268) | ||||
Issue of ordinary shares | 102 | ||||
Share buy-back programme | (1,005) | ||||
Proceeds from issue of other equity instruments | 1,131 | ||||
Proceeds from issue of subordinated liabilities | [1] | 1,729 | |||
Repayment of subordinated liabilities | (2,256) | ||||
Dividends paid to equity shareholders | (2,240) | ||||
Change in stake of non-controlling interests | 98 | 90 | 101 | ||
Net cash used in financing activities | (4,301) | ||||
Effects of exchange rate changes on cash and cash equivalents | 3 | ||||
Change in cash and cash equivalents | (3,484) | ||||
Cash and cash equivalents at beginning of year | [2] | 58,708 | |||
Cash and cash equivalents at end of year | 55,224 | 58,708 | [2] | ||
Previously stated [member] | |||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CASH FLOW STATEMENTS [Line Items] | |||||
Net cash provided by (used in) operating activities | (3,195) | 2,074 | |||
Financial assets at fair value through other comprehensive income: | |||||
Purchases | (7,862) | (4,930) | |||
Proceeds from sale and maturity | 18,675 | 6,335 | |||
Purchase of fixed assets | (3,655) | (3,760) | |||
Proceeds from sale of fixed assets | 1,444 | 1,684 | |||
Disposal of businesses, net of cash disposed | 129 | 5 | |||
Acquisition of businesses, net of cash acquired | (1,923) | (20) | |||
Net cash flows from investing activities | 6,808 | (686) | |||
Dividends paid to ordinary shareholders | (2,014) | ||||
Distributions on other equity instruments | (415) | (412) | |||
Dividends paid to non-controlling interests | (51) | (29) | |||
Interest paid on subordinated liabilities | (1,275) | (1,687) | |||
Issue of ordinary shares | 14 | ||||
Proceeds from issue of subordinated liabilities | 1,061 | ||||
Repayment of subordinated liabilities | (1,008) | (7,885) | |||
Dividends paid to equity shareholders | (2,284) | (2,014) | |||
Change in stake of non-controlling interests | (8) | ||||
Net cash used in financing activities | (5,019) | (10,974) | |||
Effects of exchange rate changes on cash and cash equivalents | 21 | ||||
Change in cash and cash equivalents | (1,406) | (9,565) | |||
Cash and cash equivalents at beginning of year | 60,982 | 62,388 | 71,953 | ||
Cash and cash equivalents at end of year | 60,982 | 62,388 | |||
Parent [member] | |||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CASH FLOW STATEMENTS [Line Items] | |||||
Net cash provided by (used in) operating activities | 6,689 | ||||
Cash flows from investing activities | |||||
Dividends received from subsidiary undertakings | 4,000 | ||||
Distributions on other equity instruments received | 324 | ||||
Financial assets at fair value through other comprehensive income: | |||||
Acquisitions of and capital injections to subsidiaries | (12,753) | ||||
Return of capital | 11,114 | ||||
Return of capital contribution | 9 | ||||
Interest received on lending | 370 | ||||
Net cash flows from investing activities | (5,911) | ||||
Dividends paid to ordinary shareholders | (2,240) | ||||
Distributions on other equity instruments | (433) | ||||
Interest paid on subordinated liabilities | (275) | ||||
Issue of ordinary shares | 102 | ||||
Share buy-back programme | (1,005) | ||||
Proceeds from issue of other equity instruments | 1,129 | ||||
Proceeds from issue of subordinated liabilities | 1,729 | ||||
Net cash used in financing activities | (993) | ||||
Change in cash and cash equivalents | (215) | ||||
Cash and cash equivalents at beginning of year | [2] | 272 | |||
Cash and cash equivalents at end of year | 57 | 272 | [2] | ||
Parent [member] | Previously stated [member] | |||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CASH FLOW STATEMENTS [Line Items] | |||||
Net cash provided by (used in) operating activities | 8,221 | (7,550) | |||
Cash flows from investing activities | |||||
Dividends received from subsidiary undertakings | 2,650 | 3,759 | |||
Distributions on other equity instruments received | 292 | 119 | |||
Financial assets at fair value through other comprehensive income: | |||||
Return of capital contribution | 77 | 441 | |||
Capital lending | (8,476) | ||||
Interest received on lending | 244 | 496 | |||
Additional capital injections to subsidiaries | (3,522) | ||||
Acquisition of businesses, net of cash acquired | (320) | ||||
Net cash flows from investing activities | (5,058) | 9,481 | |||
Dividends paid to ordinary shareholders | (2,014) | ||||
Distributions on other equity instruments | (415) | (412) | |||
Interest paid on subordinated liabilities | (248) | (229) | |||
Issue of ordinary shares | 14 | ||||
Proceeds from issue of subordinated liabilities | 1,061 | ||||
Repayment of subordinated liabilities | (319) | ||||
Dividends paid to equity shareholders | (2,284) | ||||
Net cash used in financing activities | (2,933) | (1,913) | |||
Change in cash and cash equivalents | 230 | 18 | |||
Cash and cash equivalents at beginning of year | 272 | 42 | 24 | ||
Cash and cash equivalents at end of year | 272 | 42 | |||
Lloyds Bank [Member] | |||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CASH FLOW STATEMENTS [Line Items] | |||||
Net cash provided by (used in) operating activities | (27,290) | ||||
Cash flows from investing activities | |||||
Dividends received from subsidiary undertakings | 4,867 | ||||
Distributions on other equity instruments received | 101 | ||||
Financial assets at fair value through other comprehensive income: | |||||
Purchases | (11,699) | ||||
Proceeds from sale and maturity | 25,927 | ||||
Purchase of fixed assets | (1,486) | ||||
Proceeds from sale of fixed assets | 113 | ||||
Acquisitions of and capital injections to subsidiaries | (111) | ||||
Return of capital | 210 | ||||
Disposal of businesses, net of cash disposed | 7,704 | ||||
Net cash flows from investing activities | 25,626 | ||||
Dividends paid to ordinary shareholders | (11,022) | ||||
Distributions on other equity instruments | (275) | ||||
Interest paid on subordinated liabilities | (659) | ||||
Return of capital contributions | (9) | ||||
Capital borrowing from the Company | 9,860 | ||||
Interest paid on borrowing from the Company | (370) | ||||
Net cash used in financing activities | (15,804) | ||||
Effects of exchange rate changes on cash and cash equivalents | 2 | ||||
Change in cash and cash equivalents | (17,466) | ||||
Cash and cash equivalents at beginning of year | [2] | 56,120 | |||
Cash and cash equivalents at end of year | 38,654 | 56,120 | [2] | ||
Lloyds Bank [Member] | Previously stated [member] | |||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CASH FLOW STATEMENTS [Line Items] | |||||
Net cash provided by (used in) operating activities | (3,430) | 1,073 | |||
Cash flows from investing activities | |||||
Dividends received from subsidiary undertakings | 4,378 | 3,984 | |||
Distributions on other equity instruments received | 101 | ||||
Financial assets at fair value through other comprehensive income: | |||||
Purchases | (7,550) | (4,664) | |||
Proceeds from sale and maturity | 16,480 | 6,429 | |||
Purchase of fixed assets | (1,155) | (1,122) | |||
Proceeds from sale of fixed assets | 85 | 19 | |||
Capital lending | (34) | ||||
Disposal of businesses, net of cash disposed | 592 | 231 | |||
Additional capital injections to subsidiaries | (309) | ||||
Acquisition of businesses, net of cash acquired | (2,026) | ||||
Net cash flows from investing activities | 10,871 | 4,568 | |||
Dividends paid to ordinary shareholders | (3,040) | ||||
Distributions on other equity instruments | (273) | (119) | |||
Interest paid on subordinated liabilities | (668) | (1,516) | |||
Proceeds from issue of other equity instruments | 3,217 | ||||
Proceeds from issue of subordinated liabilities | 2,753 | ||||
Repayment of subordinated liabilities | (675) | (13,200) | |||
Return of capital contributions | (77) | (441) | |||
Capital borrowing from the Company | 8,476 | ||||
Interest paid on borrowing from the Company | (244) | (496) | |||
Dividends paid to equity shareholders | (2,650) | ||||
Net cash used in financing activities | 3,414 | (16,229) | |||
Effects of exchange rate changes on cash and cash equivalents | (1) | 2 | |||
Change in cash and cash equivalents | 10,854 | (10,586) | |||
Cash and cash equivalents at beginning of year | 56,120 | 45,266 | 55,852 | ||
Cash and cash equivalents at end of year | 56,120 | 45,266 | |||
Subsidiaries [member] | |||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CASH FLOW STATEMENTS [Line Items] | |||||
Net cash provided by (used in) operating activities | 8,871 | ||||
Financial assets at fair value through other comprehensive income: | |||||
Purchases | (958) | ||||
Proceeds from sale and maturity | 918 | ||||
Purchase of fixed assets | (2,028) | ||||
Proceeds from sale of fixed assets | 1,221 | ||||
Acquisitions of and capital injections to subsidiaries | (131) | ||||
Disposal of businesses, net of cash disposed | 1,373 | ||||
Net cash flows from investing activities | 395 | ||||
Dividends paid to ordinary shareholders | (5,467) | ||||
Distributions on other equity instruments | (150) | ||||
Dividends paid to non-controlling interests | (61) | ||||
Interest paid on subordinated liabilities | (673) | ||||
Proceeds from issue of other equity instruments | 782 | ||||
Repayment of subordinated liabilities | (2,273) | ||||
Capital contributions received | 3,088 | ||||
Capital borrowing from the Company | 11,717 | ||||
Net cash used in financing activities | 4,715 | ||||
Effects of exchange rate changes on cash and cash equivalents | 1 | ||||
Change in cash and cash equivalents | 13,982 | ||||
Cash and cash equivalents at beginning of year | [2] | 2,588 | |||
Cash and cash equivalents at end of year | 16,570 | 2,588 | [2] | ||
Subsidiaries [member] | Previously stated [member] | |||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CASH FLOW STATEMENTS [Line Items] | |||||
Net cash provided by (used in) operating activities | (5,959) | 11,131 | |||
Financial assets at fair value through other comprehensive income: | |||||
Purchases | (482) | (322) | |||
Proceeds from sale and maturity | 2,195 | 2,350 | |||
Purchase of fixed assets | (2,500) | (2,638) | |||
Proceeds from sale of fixed assets | 1,359 | 1,665 | |||
Disposal of businesses, net of cash disposed | 129 | 5 | |||
Acquisition of businesses, net of cash acquired | (622) | (20) | |||
Net cash flows from investing activities | 79 | 1,040 | |||
Dividends paid to ordinary shareholders | (4,602) | ||||
Distributions on other equity instruments | (120) | (101) | |||
Dividends paid to non-controlling interests | (51) | (29) | |||
Interest paid on subordinated liabilities | (700) | (893) | |||
Proceeds from issue of other equity instruments | 305 | ||||
Repayment of subordinated liabilities | (1,132) | (4,952) | |||
Dividends paid to equity shareholders | (4,378) | ||||
Capital contribution received | 309 | ||||
Change in stake of non-controlling interests | (8) | ||||
Net cash used in financing activities | (6,381) | (11,169) | |||
Effects of exchange rate changes on cash and cash equivalents | 1 | 19 | |||
Change in cash and cash equivalents | (12,260) | 1,021 | |||
Cash and cash equivalents at beginning of year | 4,862 | 17,122 | 16,101 | ||
Cash and cash equivalents at end of year | 4,862 | 17,122 | |||
Consolidation adjustments [Member] | |||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CASH FLOW STATEMENTS [Line Items] | |||||
Net cash provided by (used in) operating activities | 623 | ||||
Cash flows from investing activities | |||||
Dividends received from subsidiary undertakings | (8,867) | ||||
Distributions on other equity instruments received | (425) | ||||
Financial assets at fair value through other comprehensive income: | |||||
Proceeds from sale and maturity | (39) | ||||
Acquisitions of and capital injections to subsidiaries | 12,946 | ||||
Return of capital | (11,324) | ||||
Return of capital contribution | (9) | ||||
Interest received on lending | (370) | ||||
Disposal of businesses, net of cash disposed | (9,076) | ||||
Net cash flows from investing activities | (8,189) | ||||
Dividends paid to ordinary shareholders | 16,489 | ||||
Distributions on other equity instruments | 425 | ||||
Interest paid on subordinated liabilities | 339 | ||||
Proceeds from issue of other equity instruments | (780) | ||||
Repayment of subordinated liabilities | 17 | ||||
Capital contributions received | (3,088) | ||||
Return of capital contributions | 9 | ||||
Capital borrowing from the Company | (21,577) | ||||
Interest paid on borrowing from the Company | 370 | ||||
Net cash used in financing activities | 7,781 | ||||
Change in cash and cash equivalents | 215 | ||||
Cash and cash equivalents at beginning of year | [2] | (272) | |||
Cash and cash equivalents at end of year | (57) | (272) | [2] | ||
Consolidation adjustments [Member] | Previously stated [member] | |||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - CASH FLOW STATEMENTS [Line Items] | |||||
Net cash provided by (used in) operating activities | (2,027) | (2,580) | |||
Cash flows from investing activities | |||||
Dividends received from subsidiary undertakings | (7,028) | (7,743) | |||
Distributions on other equity instruments received | (393) | (119) | |||
Financial assets at fair value through other comprehensive income: | |||||
Purchases | 170 | 56 | |||
Proceeds from sale and maturity | (2,444) | ||||
Return of capital contribution | (77) | (441) | |||
Capital lending | 8,510 | ||||
Interest received on lending | (244) | (496) | |||
Disposal of businesses, net of cash disposed | (592) | (231) | |||
Additional capital injections to subsidiaries | 3,831 | ||||
Acquisition of businesses, net of cash acquired | 1,045 | ||||
Net cash flows from investing activities | 916 | (15,775) | |||
Dividends paid to ordinary shareholders | 7,642 | ||||
Distributions on other equity instruments | 393 | 220 | |||
Interest paid on subordinated liabilities | 341 | 951 | |||
Proceeds from issue of other equity instruments | (3,522) | ||||
Proceeds from issue of subordinated liabilities | (2,753) | ||||
Repayment of subordinated liabilities | 799 | 10,586 | |||
Return of capital contributions | 77 | 441 | |||
Capital borrowing from the Company | (8,476) | ||||
Interest paid on borrowing from the Company | 244 | 496 | |||
Dividends paid to equity shareholders | 7,028 | ||||
Capital contribution received | (309) | ||||
Net cash used in financing activities | 881 | 18,337 | |||
Change in cash and cash equivalents | (230) | (18) | |||
Cash and cash equivalents at beginning of year | (272) | (42) | (24) | ||
Cash and cash equivalents at end of year | (272) | (42) | |||
To subsidiaries [member] | Parent [member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital lending | (21,577) | ||||
To subsidiaries [member] | Parent [member] | Previously stated [member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital lending | (4,978) | ||||
To subsidiaries [member] | Consolidation adjustments [Member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital lending | 21,577 | ||||
To subsidiaries [member] | Consolidation adjustments [Member] | Previously stated [member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital lending | 4,978 | ||||
By subsidiaries [member] | Parent [member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital repayments | 12,602 | ||||
By subsidiaries [member] | Parent [member] | Previously stated [member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital repayments | 475 | 13,166 | |||
By subsidiaries [member] | Consolidation adjustments [Member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital repayments | (12,602) | ||||
By subsidiaries [member] | Consolidation adjustments [Member] | Previously stated [member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital repayments | (475) | (13,166) | |||
To parent company [member] | Lloyds Bank [Member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Return of capital | (2,975) | ||||
Capital repayments | (10,354) | ||||
To parent company [member] | Lloyds Bank [Member] | Previously stated [member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital repayments | (475) | (3,387) | |||
To parent company [member] | Subsidiaries [member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital repayments | (2,248) | ||||
To parent company [member] | Subsidiaries [member] | Previously stated [member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital repayments | (1,198) | ||||
To parent company [member] | Consolidation adjustments [Member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Return of capital | 2,975 | ||||
Capital repayments | £ 12,602 | ||||
To parent company [member] | Consolidation adjustments [Member] | Previously stated [member] | |||||
Financial assets at fair value through other comprehensive income: | |||||
Capital repayments | £ 475 | £ 4,585 | |||
[1] | The repurchases and redemptions resulted in cash outflows of 2,256 million (2017: 1,008 million). | ||||
[2] | Adjusted for IFRS 9 |