|
BASIS
OF PRESENTATION
|
|
This
release covers the results of Lloyds Banking Group plc together
with its subsidiaries (the Group) for the six months ended
30 June 2020.
|
Statutory basis: Statutory profit / loss
before tax and statutory profit after tax are included within this
document. However, a number of factors have had a significant
effect on the comparability of the Group’s financial position
and results. Accordingly, the results are also presented on an
underlying basis.
|
Underlying basis: The statutory results
are adjusted for certain items which are listed below, to allow a
comparison of the Group’s underlying
performance:
- restructuring,
including severance-related costs, the rationalisation of the
non-branch property portfolio, the establishment of the Schroders
partnership, the integration of MBNA and Zurich’s UK
workplace pensions and savings business;
- volatility and
other items, which includes the effects of certain asset sales, the
volatility relating to the Group’s hedging arrangements and
that arising in the insurance businesses, insurance gross up, the
unwind of acquisition-related fair value adjustments and the
amortisation of purchased intangible assets;
- payment protection
insurance provisions.
|
Unless
otherwise stated, income statement commentaries throughout this
document compare the six months ended 30 June 2020 to the six
months ended 30 June 2019 and the balance sheet analysis
compares the Group balance sheet as at 30 June 2020 to the
Group balance sheet as at 31 December 2019.
Segmental information: During the
half-year to 30 June 2020, the Group migrated certain customer
relationships from the SME business within Commercial Banking to
Business Banking within Retail. In addition, Commercial Banking has
been resegmented to reflect the division’s new client
coverage model and is now analysed according to SME, Mid
Corporates, Corporate & Institutional, and Other. The Group has
also revised its approach to internal funding charges, including
the adoption of the Sterling Overnight Index Average (SONIA)
interest rate benchmark in place of LIBOR. Comparatives have been
restated accordingly.
|
Alternative performance measures: The
Group uses a number of alternative performance measures, including
underlying profit, in the discussion of its business performance
and financial position. There have been no changes to the
definitions of alternative performance measures used by the Group;
further information on these measures is set out in the summary of
alternative performance measures.
|
|
|
This
document can also be found on the Group’s website under
“Financial Performance Downloads” via this link
www.lloydsbankinggroup.com/investors/financial-performance/.
In
addition, the Group Chief Executive’s letter to shareholders
is also available from the same link.
|
|
|
|
Page
|
Results for the half-year
|
1
|
Income statement –
underlying basis
|
3
|
Key
balance sheet metrics
|
3
|
Quarterly information
|
4
|
Balance
sheet analysis
|
5
|
Group
Chief Executive’s statement
|
6
|
Summary of Group results
|
10
|
Underlying basis segmental analysis
|
23
|
|
|
Divisional results
|
|
Retail
|
25
|
Commercial
Banking
|
27
|
Insurance
and Wealth
|
29
|
Central
items
|
31
|
|
|
Other financial information
|
|
Reconciliation
between statutory and underlying basis results
|
32
|
Banking
net interest margin and average interest-earning banking
assets
|
33
|
Volatility
arising in insurance businesses
|
33
|
Tangible
net assets per share
|
34
|
Return
on tangible equity
|
34
|
|
|
Risk management
|
|
Principal
risks and uncertainties
|
35
|
Credit
risk portfolio
|
37
|
Funding
and liquidity management
|
56
|
Capital
management
|
60
|
|
|
Statutory information
|
|
Condensed consolidated
half-year financial statements
|
|
Consolidated
income statement
|
71
|
Consolidated
statement of comprehensive income
|
72
|
Consolidated
balance sheet
|
73
|
Consolidated
statement of changes in equity
|
75
|
78
|
|
Notes to the consolidated financial statements
|
79
|
Statement
of directors’ responsibilities
|
124
|
Independent
review report to Lloyds Banking Group plc
|
125
|
|
|
Summary of alternative performance measures
|
128
|
Contacts
|
129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
2019
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
5,478
|
|
6,145
|
|
(11)
|
|
6,232
|
|
(12)
|
Other income
|
|
2,461
|
|
3,150
|
|
(22)
|
|
2,582
|
|
(5)
|
Operating lease depreciation
|
|
(526)
|
|
(473)
|
|
(11)
|
|
(494)
|
|
(6)
|
Net income
|
|
7,413
|
|
8,822
|
|
(16)
|
|
8,320
|
|
(11)
|
Operating costs
|
|
(3,699)
|
|
(3,906)
|
|
5
|
|
(3,969)
|
|
7
|
Remediation
|
|
(177)
|
|
(143)
|
|
(24)
|
|
(302)
|
|
41
|
Total costs
|
|
(3,876)
|
|
(4,049)
|
|
4
|
|
(4,271)
|
|
9
|
Trading surplus
|
|
3,537
|
|
4,773
|
|
(26)
|
|
4,049
|
|
(13)
|
Impairment
|
|
(3,818)
|
|
(579)
|
|
|
|
(712)
|
|
|
Underlying (loss) / profit
|
|
(281)
|
|
4,194
|
|
|
|
3,337
|
|
|
Restructuring
|
|
(133)
|
|
(182)
|
|
27
|
|
(289)
|
|
54
|
Volatility and other items
|
|
(188)
|
|
(465)
|
|
60
|
|
248
|
|
|
Payment protection insurance provision
|
|
–
|
|
(650)
|
|
100
|
|
(1,800)
|
|
100
|
Statutory (loss) / profit before tax
|
|
(602)
|
|
2,897
|
|
|
|
1,496
|
|
|
Tax credit / (expense)
|
|
621
|
|
(672)
|
|
|
|
(715)
|
|
|
Statutory profit after tax
|
|
19
|
|
2,225
|
|
(99)
|
|
781
|
|
(98)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) / earnings per share
|
|
(0.3)p
|
|
2.7p
|
|
|
|
0.8p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.59%
|
|
2.90%
|
|
(31)bp
|
|
2.86%
|
|
(27)bp
|
Average interest-earning banking assets
|
|
£433bn
|
|
£433bn
|
|
–
|
|
£436bn
|
|
(1)
|
Cost:income ratio
|
|
52.3%
|
|
45.9%
|
|
6.4pp
|
|
51.3%
|
|
1.0pp
|
Asset quality ratio
|
|
1.73%
|
|
0.26%
|
|
147bp
|
|
0.31%
|
|
142bp
|
Underlying return on tangible equity
|
|
(0.7)%
|
|
16.3%
|
|
(17.0)pp
|
|
13.3%
|
|
(14.0)pp
|
Return on tangible equity
|
|
0.1%
|
|
11.5%
|
|
(11.4)pp
|
|
4.0%
|
|
(3.9)pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
Change
|
|
At 31 Dec
|
|
Change
|
|
|
2020
|
|
2019
|
|
%
|
|
2019
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loans and advances to customers1
|
|
£440bn
|
|
£441bn
|
|
–
|
|
£440bn
|
|
–
|
Customer deposits2
|
|
£441bn
|
|
£418bn
|
|
6
|
|
£412bn
|
|
7
|
Loan to deposit ratio
|
|
100%
|
|
106%
|
|
(6)pp
|
|
107%
|
|
(7.0)pp
|
CET1 ratio3
|
|
14.6%
|
|
14.0%
|
|
0.6pp
|
|
13.8%
|
|
0.8pp
|
CET1 ratio pre IFRS 9 transitional relief3,4
|
|
13.4%
|
|
13.7%
|
|
(0.3)pp
|
|
13.4%
|
|
–
|
Transitional MREL ratio3
|
|
36.8%
|
|
32.2%
|
|
4.6pp
|
|
32.6%
|
|
4.2pp
|
UK leverage ratio3
|
|
5.4%
|
|
5.1%
|
|
0.3pp
|
|
5.2%
|
|
0.2pp
|
Risk-weighted assets3
|
|
£207bn
|
|
£207bn
|
|
–
|
|
£203bn
|
|
2
|
Tangible net assets per share
|
|
51.6p
|
|
53.0p
|
|
(1.4)p
|
|
50.8p
|
|
0.8p
|
|
|
1
|
Excludes
reverse repos of £61.1 billion (30 June 2019:
£54.1 billion; 31 December 2019: £54.6
billion).
|
2
|
Excludes
repos of £12.3 billion (30 June 2019: £4.1 billion;
31 December 2019: £9.5 billion).
|
3
|
The
CET1, MREL and leverage ratios and risk-weighted assets at 30 June
2019 and 31 December 2019 are reported on a pro forma basis,
reflecting the dividend paid up by the Insurance business in the
subsequent reporting period.
|
4
|
CET1
ratio reflecting the full impact of IFRS 9, prior to the
application of transitional arrangements for capital that provide
relief for the impact of IFRS 9.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
|
30 June
|
|
31 Mar
|
|
31 Dec
|
|
30 Sept
|
|
30 June
|
|
31 Mar
|
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
2,528
|
|
2,950
|
|
3,102
|
|
3,130
|
|
3,062
|
|
3,083
|
Other income
|
|
1,235
|
|
1,226
|
|
1,267
|
|
1,315
|
|
1,594
|
|
1,556
|
Operating lease depreciation
|
|
(302)
|
|
(224)
|
|
(236)
|
|
(258)
|
|
(254)
|
|
(219)
|
Net income
|
|
3,461
|
|
3,952
|
|
4,133
|
|
4,187
|
|
4,402
|
|
4,420
|
Operating costs
|
|
(1,822)
|
|
(1,877)
|
|
(2,058)
|
|
(1,911)
|
|
(1,949)
|
|
(1,957)
|
Remediation
|
|
(90)
|
|
(87)
|
|
(219)
|
|
(83)
|
|
(123)
|
|
(20)
|
Total costs
|
|
(1,912)
|
|
(1,964)
|
|
(2,277)
|
|
(1,994)
|
|
(2,072)
|
|
(1,977)
|
Trading surplus
|
|
1,549
|
|
1,988
|
|
1,856
|
|
2,193
|
|
2,330
|
|
2,443
|
Impairment
|
|
(2,388)
|
|
(1,430)
|
|
(341)
|
|
(371)
|
|
(304)
|
|
(275)
|
Underlying (loss) / profit
|
|
(839)
|
|
558
|
|
1,515
|
|
1,822
|
|
2,026
|
|
2,168
|
Restructuring
|
|
(70)
|
|
(63)
|
|
(191)
|
|
(98)
|
|
(56)
|
|
(126)
|
Volatility and other items
|
|
233
|
|
(421)
|
|
122
|
|
126
|
|
(126)
|
|
(339)
|
Payment protection insurance provision
|
|
–
|
|
–
|
|
–
|
|
(1,800)
|
|
(550)
|
|
(100)
|
Statutory (loss) / profit before tax
|
|
(676)
|
|
74
|
|
1,446
|
|
50
|
|
1,294
|
|
1,603
|
Tax credit / (expense)
|
|
215
|
|
406
|
|
(427)
|
|
(288)
|
|
(269)
|
|
(403)
|
Statutory (loss) / profit after tax
|
|
(461)
|
|
480
|
|
1,019
|
|
(238)
|
|
1,025
|
|
1,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.40%
|
|
2.79%
|
|
2.85%
|
|
2.88%
|
|
2.89%
|
|
2.91%
|
Average interest-earning banking assets
|
|
£435bn
|
|
£432bn
|
|
£437bn
|
|
£435bn
|
|
£433bn
|
|
£433bn
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost:income ratio
|
|
55.2%
|
|
49.7%
|
|
55.1%
|
|
47.6%
|
|
47.1%
|
|
44.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality ratio
|
|
2.16%
|
|
1.30%
|
|
0.30%
|
|
0.33%
|
|
0.27%
|
|
0.25%
|
Gross asset quality ratio
|
|
2.19%
|
|
1.35%
|
|
0.39%
|
|
0.40%
|
|
0.38%
|
|
0.30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying return on tangible equity
|
|
(6.0)%
|
|
4.7%
|
|
12.2%
|
|
14.3%
|
|
15.6%
|
|
17.0%
|
Return on tangible equity
|
|
(4.8)%
|
|
5.0%
|
|
11.0%
|
|
(2.8)%
|
|
10.5%
|
|
12.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and advances to customers1
|
|
£440bn
|
|
£443bn
|
|
£440bn
|
|
£447bn
|
|
£441bn
|
|
£441bn
|
Customer deposits2
|
|
£441bn
|
|
£428bn
|
|
£412bn
|
|
£419bn
|
|
£418bn
|
|
£417bn
|
Loan to deposit ratio
|
|
100%
|
|
103%
|
|
107%
|
|
107%
|
|
106%
|
|
106%
|
Risk-weighted assets3
|
|
£207bn
|
|
£209bn
|
|
£203bn
|
|
£209bn
|
|
£207bn
|
|
£208bn
|
Tangible net assets per share
|
|
51.6p
|
|
57.4p
|
|
50.8p
|
|
52.0p
|
|
53.0p
|
|
53.4p
|
|
|
1
|
Excludes
reverse repos.
|
2
|
Excludes
repos.
|
3
|
Risk-weighted
assets at 30 June 2019 and 31 December 2019 are reported on a pro
forma basis reflecting the Insurance dividend paid to the Group in
the subsequent reporting period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Mar
|
|
|
|
At 30 June
|
|
|
|
At 31 Dec
|
|
|
|
|
2020
|
|
2020
|
|
Change
|
|
2019
|
|
Change
|
|
2019
|
|
Change
|
|
|
£bn
|
|
£bn
|
|
%
|
|
£bn
|
|
%
|
|
£bn
|
|
%
|
Loans and advances to customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Open mortgage book
|
|
267.1
|
|
268.1
|
|
–
|
|
264.9
|
|
1
|
|
270.1
|
|
(1)
|
Closed mortgage book
|
|
17.5
|
|
17.9
|
|
(2)
|
|
19.8
|
|
(12)
|
|
18.5
|
|
(5)
|
Credit cards
|
|
15.2
|
|
16.7
|
|
(9)
|
|
17.7
|
|
(14)
|
|
17.7
|
|
(14)
|
UK Retail unsecured loans
|
|
8.2
|
|
8.6
|
|
(5)
|
|
8.2
|
|
–
|
|
8.4
|
|
(2)
|
UK motor finance
|
|
15.3
|
|
15.8
|
|
(3)
|
|
15.5
|
|
(1)
|
|
15.6
|
|
(2)
|
Overdrafts
|
|
1.0
|
|
1.2
|
|
(17)
|
|
1.2
|
|
(17)
|
|
1.3
|
|
(23)
|
Retail other1
|
|
9.7
|
|
9.3
|
|
4
|
|
9.0
|
|
8
|
|
9.0
|
|
8
|
SME2
|
|
38.4
|
|
32.0
|
|
20
|
|
32.3
|
|
19
|
|
32.1
|
|
20
|
Mid Corporates3
|
|
4.6
|
|
4.7
|
|
(2)
|
|
5.5
|
|
(16)
|
|
5.3
|
|
(13)
|
Corporate and Institutional3
|
|
55.0
|
|
60.9
|
|
(10)
|
|
59.8
|
|
(8)
|
|
54.6
|
|
1
|
Commercial Banking other
|
|
5.0
|
|
4.9
|
|
2
|
|
4.3
|
|
16
|
|
5.2
|
|
(4)
|
Wealth
|
|
0.9
|
|
0.9
|
|
–
|
|
0.9
|
|
–
|
|
0.9
|
|
–
|
Central items
|
|
2.5
|
|
2.1
|
|
19
|
|
1.9
|
|
32
|
|
1.7
|
|
47
|
Loans and advances to
customers4
|
|
440.4
|
|
443.1
|
|
(1)
|
|
441.0
|
|
–
|
|
440.4
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail current accounts
|
|
87.5
|
|
79.9
|
|
10
|
|
76.0
|
|
15
|
|
76.9
|
|
14
|
Commercial current accounts2,5
|
|
44.2
|
|
34.5
|
|
28
|
|
34.0
|
|
30
|
|
34.9
|
|
27
|
Retail relationship savings accounts
|
|
148.5
|
|
144.1
|
|
3
|
|
144.4
|
|
3
|
|
144.5
|
|
3
|
Retail tactical savings accounts
|
|
12.7
|
|
12.7
|
|
–
|
|
15.3
|
|
(17)
|
|
13.3
|
|
(5)
|
Commercial deposits2,6
|
|
133.8
|
|
142.5
|
|
(6)
|
|
133.2
|
|
–
|
|
127.6
|
|
5
|
Wealth
|
|
13.5
|
|
13.3
|
|
2
|
|
13.8
|
|
(2)
|
|
13.7
|
|
(1)
|
Central items
|
|
0.9
|
|
1.4
|
|
(36)
|
|
0.9
|
|
–
|
|
0.9
|
|
|
Total customer
deposits7
|
|
441.1
|
|
428.4
|
|
3
|
|
417.6
|
|
6
|
|
411.8
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
873.0
|
|
861.7
|
|
1
|
|
822.2
|
|
6
|
|
833.9
|
|
5
|
Total liabilities
|
|
824.1
|
|
809.0
|
|
2
|
|
773.2
|
|
7
|
|
786.1
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
42.8
|
|
46.6
|
|
(8)
|
|
43.4
|
|
(1)
|
|
41.7
|
|
3
|
Other equity instruments
|
|
5.9
|
|
5.9
|
|
–
|
|
5.4
|
|
9
|
|
5.9
|
|
–
|
Non-controlling interests
|
|
0.2
|
|
0.2
|
|
–
|
|
0.2
|
|
–
|
|
0.2
|
|
–
|
Total equity
|
|
48.9
|
|
52.7
|
|
(7)
|
|
49.0
|
|
–
|
|
47.8
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares in issue, excluding own shares
|
|
70,735m
|
|
70,411m
|
|
–
|
|
70,740m
|
|
–
|
|
70,031m
|
|
1
|
|
|
1
|
Primarily
Europe.
|
2
|
Includes
Retail Business Banking.
|
3
|
Commercial
Banking segmentation has been updated to reflect new client
coverage model.
|
4
|
Excludes
reverse repos.
|
5
|
Primarily
non interest-bearing Commercial Banking current
accounts.
|
6
|
Primarily
Commercial Banking interest-bearing accounts.
|
7
|
Excludes
repos.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
2019
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
5,478
|
|
6,145
|
|
(11)
|
|
6,232
|
|
(12)
|
Other income
|
|
2,461
|
|
3,150
|
|
(22)
|
|
2,582
|
|
(5)
|
Operating lease depreciation1
|
|
(526)
|
|
(473)
|
|
(11)
|
|
(494)
|
|
(6)
|
Net income
|
|
7,413
|
|
8,822
|
|
(16)
|
|
8,320
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.59%
|
|
2.90%
|
|
(31)bp
|
|
2.86%
|
|
(27)bp
|
Average interest-earning banking assets
|
|
£433.2bn
|
|
£433.3bn
|
|
–
|
|
£436.1bn
|
|
(1)
|
1
|
Net of
profits on disposal of operating lease assets of £18 million (half-year to 30 June 2019:
£14 million; half-year to
31 December 2019: £27 million).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
2019
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
|
|
3,699
|
|
3,906
|
|
5
|
|
3,969
|
|
7
|
Remediation
|
|
177
|
|
143
|
|
(24)
|
|
302
|
|
41
|
Total costs
|
|
3,876
|
|
4,049
|
|
4
|
|
4,271
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
Business as usual costs
|
|
2,509
|
|
2,677
|
|
6
|
|
2,801
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
Cost:income ratio
|
|
52.3%
|
|
45.9%
|
|
6.4pp
|
|
51.3%
|
|
1.0pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
2019
|
|
Change
|
|
|
£m
|
|
£m
|
|
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charge
|
|
3,818
|
|
579
|
|
|
|
712
|
|
|
Asset quality ratio
|
|
1.73%
|
|
0.26%
|
|
147bp
|
|
0.31%
|
|
142bp
|
Gross asset quality ratio
|
|
1.77%
|
|
0.34%
|
|
143bp
|
|
0.40%
|
|
137bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
|
|
At 31 Dec
|
|
|
|
|
20201
|
|
20191
|
|
Change
|
|
20191
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Stage 2 gross loans and advances to customers
|
|
67,858
|
|
40,272
|
|
68
|
|
38,440
|
|
77
|
Stage 2 loans and advances to customers as % of total
|
|
13.4%
|
|
8.1%
|
|
5.3pp
|
|
7.7%
|
|
5.7pp
|
Stage 2 ECL2
allowances
|
|
2,817
|
|
1,449
|
|
94
|
|
1,423
|
|
98
|
Stage 2 ECL2
allowances as % of Stage 2 drawn
balances
|
|
4.2%
|
|
3.6%
|
|
0.6pp
|
|
3.7%
|
|
0.5pp
|
|
|
|
|
|
|
|
|
|
|
|
Stage 3 loans and advances to customers
|
|
9,538
|
|
9,616
|
|
(1)
|
|
8,754
|
|
9
|
Stage 3 loans and advances to customers as a % of
total
|
|
1.9%
|
|
1.9%
|
|
–
|
|
1.8%
|
|
0.1pp
|
Stage 3 ECL2
allowances
|
|
2,763
|
|
2,149
|
|
29
|
|
1,922
|
|
44
|
Stage 3 ECL2
allowances as % of Stage 3 drawn
balances3
|
|
29.6%
|
|
23.0%
|
|
6.6pp
|
|
22.5%
|
|
7.1pp
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and advances to customers
|
|
508,076
|
|
499,124
|
|
2
|
|
498,805
|
|
2
|
Total ECL2
allowances
|
|
7,186
|
|
4,337
|
|
66
|
|
4,142
|
|
73
|
Total ECL2
allowances as % of drawn
balances
|
|
1.4%
|
|
0.9%
|
|
0.5pp
|
|
0.8%
|
|
0.6pp
|
|
|
1
|
Underlying
basis.
|
2
|
Expected
credit loss.
|
3
|
Stage 3
ECL allowances as a percentage of drawn balances are calculated
excluding loans in recoveries in Retail of £206 million
(30 June 2019: £260 million; 31 December 2019:
£205 million).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
2019
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Charges pre-updated multiple economic scenarios
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
578
|
|
556
|
|
(4)
|
|
482
|
|
(20)
|
Commercial
Banking
|
|
206
|
|
65
|
|
|
|
241
|
|
15
|
Other
|
|
4
|
|
(42)
|
|
|
|
(11)
|
|
|
|
|
788
|
|
579
|
|
(36)
|
|
712
|
|
(11)
|
Coronavirus impacted restructuring cases1
|
|
432
|
|
–
|
|
|
|
–
|
|
|
Updated economic outlook
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
1,517
|
|
–
|
|
|
|
–
|
|
|
Commercial
Banking
|
|
881
|
|
–
|
|
|
|
–
|
|
|
Other
|
|
200
|
|
–
|
|
|
|
–
|
|
|
|
|
2,598
|
|
–
|
|
|
|
–
|
|
|
Impairment charge
|
|
3,818
|
|
579
|
|
|
|
712
|
|
|
|
|
1
|
Additional
charges made during the first half of 2020 on cases subject to
restructuring at the end of 2019, where the coronavirus pandemic is
considered to have had a direct affect upon the recovery
strategy.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
2019
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Underlying (loss) / profit
|
|
(281)
|
|
4,194
|
|
|
|
3,337
|
|
|
Restructuring
|
|
(133)
|
|
(182)
|
|
27
|
|
(289)
|
|
54
|
Volatility and other items
|
|
|
|
|
|
|
|
|
|
|
Market
volatility and asset sales
|
|
(43)
|
|
(296)
|
|
|
|
422
|
|
|
Amortisation
of purchased intangibles
|
|
(34)
|
|
(34)
|
|
–
|
|
(34)
|
|
–
|
Fair
value unwind and other
|
|
(111)
|
|
(135)
|
|
18
|
|
(140)
|
|
21
|
|
|
(188)
|
|
(465)
|
|
60
|
|
248
|
|
|
Payment protection insurance provision
|
|
–
|
|
(650)
|
|
100
|
|
(1,800)
|
|
100
|
Statutory (loss) / profit before tax
|
|
(602)
|
|
2,897
|
|
|
|
1,496
|
|
|
Tax credit / (expense)
|
|
621
|
|
(672)
|
|
|
|
(715)
|
|
|
Statutory profit after tax
|
|
19
|
|
2,225
|
|
(99)
|
|
781
|
|
(98)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) / earnings per share
|
|
(0.3)p
|
|
2.7p
|
|
|
|
0.8p
|
|
|
Return on tangible equity
|
|
0.1%
|
|
11.5%
|
|
(11.4)pp
|
|
4.0%
|
|
(3.9)pp
|
Further
information on the reconciliation of underlying to statutory
results is included on page 32.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Mar
|
|
Change
|
|
At 30 June
|
|
Change
|
|
At 31 Dec
|
|
Change
|
|
|
2020
|
|
2020
|
|
%
|
|
2019
|
|
%
|
|
2019
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and advances to customers1
|
|
£440bn
|
|
£443bn
|
|
(1)
|
|
£441bn
|
|
–
|
|
£440bn
|
|
–
|
Customer deposits2
|
|
£441bn
|
|
£428bn
|
|
3
|
|
£418bn
|
|
6
|
|
£412bn
|
|
7
|
Loan to deposit ratio
|
|
100%
|
|
103%
|
|
(3)pp
|
|
106%
|
|
(6)pp
|
|
107%
|
|
(7)pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale funding3
|
|
£125bn
|
|
£126bn
|
|
(1)
|
|
£126bn
|
|
(1)
|
|
£124bn
|
|
1
|
Wholesale funding <1 year maturity3
|
|
£40bn
|
|
£39bn
|
|
3
|
|
£39bn
|
|
2
|
|
£39bn
|
|
2
|
Of which money-market funding <1 year
maturity3
|
|
£26bn
|
|
£26bn
|
|
(1)
|
|
£27bn
|
|
(4)
|
|
£25bn
|
|
4
|
Liquidity coverage ratio - eligible assets4
|
|
£138bn
|
|
£132bn
|
|
5
|
|
£132bn
|
|
4
|
|
£131bn
|
|
5
|
Liquidity coverage ratio5
|
|
140%
|
|
138%
|
|
2pp
|
|
132%
|
|
8pp
|
|
137%
|
|
3pp
|
|
|
1
|
Excludes
reverse repos of £61.1 billion (31 March 2020:
£55.2 billion; 30 June 2019: £54.1 billion; 31
December 2019: £54.6 billion).
|
2
|
Excludes
repos of £12.3 billion (31 March 2020: £9.4 billion;
30 June 2019: £4.1 billion; 31 December 2019: £9.5
billion).
|
3
|
Excludes
balances relating to margins of £6.9 billion (31 December
2019: £4.2 billion).
|
4
|
Eligible
assets are calculated as a simple average of month end observations
over the previous 12 months.
|
5
|
The
Liquidity coverage ratio is calculated as a simple average of month
end observations over the previous 12 months.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages
|
|
Cards
|
|
Loans
|
|
Motor
|
As of 24 July 2020
|
|
|
|
|
|
|
|
|
|
|
Total payment holidays granted (000s)
|
|
|
|
472
|
|
299
|
|
234
|
|
126
|
Total payment holidays matured (000s)
|
|
|
|
193
|
|
74
|
|
145
|
|
70
|
Repaying (%)
|
|
|
|
72%
|
|
74%
|
|
67%
|
|
59%
|
|
|
1
|
At 24
July 2020 mortgage maturities exclude c.5,000 St James Place,
Intelligent Finance and Tesco portfolio payment holidays; motor
finance maturities exclude c.12,000 Lex Autolease payment
holidays.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
Change
|
|
At 31 Dec
|
|
Change
|
|
|
2020
|
|
2019
|
|
%
|
|
2019
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
CET1 ratio1
|
|
14.6%
|
|
14.0%
|
|
0.6pp
|
|
13.8%
|
|
0.8pp
|
CET1 ratio pre IFRS 9 transitional relief1,2
|
|
13.4%
|
|
13.7%
|
|
(0.3)pp
|
|
13.4%
|
|
–
|
Transitional total capital ratio1
|
|
22.3%
|
|
21.7%
|
|
0.6pp
|
|
21.5%
|
|
0.8pp
|
Transitional MREL ratio1
|
|
36.8%
|
|
32.2%
|
|
4.6pp
|
|
32.6%
|
|
4.2pp
|
UK leverage ratio1
|
|
5.4%
|
|
5.1%
|
|
0.3pp
|
|
5.2%
|
|
0.2pp
|
Risk-weighted assets1
|
|
£207bn
|
|
£207bn
|
|
–
|
|
£203bn
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
£43bn
|
|
£43bn
|
|
(1)
|
|
£42bn
|
|
3
|
Tangible net assets per share
|
|
51.6p
|
|
53.0p
|
|
(1.4)p
|
|
50.8p
|
|
0.8p
|
|
|
1
|
The
CET1, total, MREL and leverage ratios and risk-weighted assets at
30 June 2019 and 31 December 2019 are reported on a pro forma
basis, reflecting the dividend paid up by the Insurance business in
the subsequent reporting period.
|
2
|
CET1
ratio reflecting the full impact of IFRS 9, prior to the
application of transitional arrangements for capital that provide
relief for the impact of IFRS 9.
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma CET1 ratio at 31 December 2019
|
|
|
|
|
|
|
|
|
|
13.8%
|
Banking business underlying capital build excluding impairment
charge (bps)
|
|
|
|
|
|
|
|
|
|
100
|
Impairment charge (bps)
|
|
|
|
|
|
|
|
|
|
(153)
|
Banking business underlying capital build (bps)
|
|
|
|
|
|
|
|
|
|
(53)
|
IFRS 9 transitional relief (bps)
|
|
|
|
|
|
|
|
|
|
79
|
RWA and other movements (bps)
|
|
|
|
|
|
|
|
|
|
11
|
Pensions contributions (bps)
|
|
|
|
|
|
|
|
|
|
(39)
|
Reversal of FY 2019 ordinary dividend accrual (bps)
|
|
|
|
|
|
|
|
|
|
83
|
CET1 ratio at 30 June 2020
|
|
|
|
|
|
|
|
|
|
14.6%
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 30 June 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
Insurance
|
|
Central
|
|
|
|
|
Retail
|
|
Banking
|
|
and Wealth
|
|
items
|
|
Group
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
4,233
|
|
1,222
|
|
14
|
|
9
|
|
5,478
|
Other income
|
|
919
|
|
658
|
|
853
|
|
31
|
|
2,461
|
Operating lease depreciation
|
|
(518)
|
|
(8)
|
|
–
|
|
–
|
|
(526)
|
Net income
|
|
4,634
|
|
1,872
|
|
867
|
|
40
|
|
7,413
|
Operating costs
|
|
(2,277)
|
|
(906)
|
|
(459)
|
|
(57)
|
|
(3,699)
|
Remediation
|
|
(50)
|
|
(115)
|
|
(19)
|
|
7
|
|
(177)
|
Total costs
|
|
(2,327)
|
|
(1,021)
|
|
(478)
|
|
(50)
|
|
(3,876)
|
Trading surplus
|
|
2,307
|
|
851
|
|
389
|
|
(10)
|
|
3,537
|
Impairment
|
|
(2,095)
|
|
(1,519)
|
|
(10)
|
|
(194)
|
|
(3,818)
|
Underlying profit / (loss)
|
|
212
|
|
(668)
|
|
379
|
|
(204)
|
|
(281)
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.59%
|
|
2.92%
|
|
|
|
|
|
2.59%
|
Average interest-earning banking assets
|
|
£342.3bn
|
|
£90.0bn
|
|
£0.9bn
|
|
–
|
|
£433.2bn
|
Asset quality ratio
|
|
1.23%
|
|
3.12%
|
|
|
|
|
|
1.73%
|
Return on risk-weighted assets
|
|
0.43%
|
|
(1.70)%
|
|
|
|
|
|
(0.27)%
|
Loans and advances to customers1
|
|
£341.0bn
|
|
£96.0bn
|
|
£0.9bn
|
|
£2.5bn
|
|
£440.4bn
|
Customer deposits2
|
|
£272.2bn
|
|
£154.5bn
|
|
£13.5bn
|
|
£0.9bn
|
|
£441.1bn
|
Risk-weighted assets
|
|
£99.4bn
|
|
£78.4bn
|
|
£1.3bn
|
|
£28.0bn
|
|
£207.1bn
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 30 June 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
Insurance
|
|
Central
|
|
|
|
|
Retail3
|
|
Banking3
|
|
and Wealth3
|
|
items3
|
|
Group
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
4,561
|
|
1,449
|
|
40
|
|
95
|
|
6,145
|
Other income
|
|
1,009
|
|
731
|
|
1,183
|
|
227
|
|
3,150
|
Operating lease depreciation
|
|
(461)
|
|
(12)
|
|
–
|
|
–
|
|
(473)
|
Net income
|
|
5,109
|
|
2,168
|
|
1,223
|
|
322
|
|
8,822
|
Operating costs
|
|
(2,328)
|
|
(1,031)
|
|
(539)
|
|
(8)
|
|
(3,906)
|
Remediation
|
|
(48)
|
|
(90)
|
|
(25)
|
|
20
|
|
(143)
|
Total costs
|
|
(2,376)
|
|
(1,121)
|
|
(564)
|
|
12
|
|
(4,049)
|
Trading surplus
|
|
2,733
|
|
1,047
|
|
659
|
|
334
|
|
4,773
|
Impairment
|
|
(556)
|
|
(65)
|
|
–
|
|
42
|
|
(579)
|
Underlying profit
|
|
2,177
|
|
982
|
|
659
|
|
376
|
|
4,194
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.79%
|
|
3.24%
|
|
|
|
|
|
2.90%
|
Average interest-earning banking assets
|
|
£340.1bn
|
|
£92.3bn
|
|
£0.9bn
|
|
–
|
|
£433.3bn
|
Asset quality ratio
|
|
0.33%
|
|
0.13%
|
|
|
|
|
|
0.26%
|
Return on risk-weighted assets
|
|
4.64%
|
|
2.33%
|
|
|
|
|
|
4.09%
|
Loans and advances to customers1
|
|
£338.4bn
|
|
£99.8bn
|
|
£0.9bn
|
|
£1.9bn
|
|
£441.0bn
|
Customer deposits2
|
|
£253.5bn
|
|
£149.5bn
|
|
£13.8bn
|
|
£0.8bn
|
|
£417.6bn
|
Risk-weighted assets
|
|
£95.8bn
|
|
£83.0bn
|
|
£1.3bn
|
|
£26.4bn
|
|
£206.5bn
|
|
|
||
1
|
Excludes
reverse repos.
|
|
|
2
|
Excludes
repos.
|
|
|
3
|
Restated
to reflect migration of certain customer relationships from the SME
business within Commercial Banking to Business Banking within
Retail. Segmental net interest income also restated to reflect the
Group’s adoption of the Sterling Overnight Index Average
(SONIA).
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 31 December 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
Insurance
|
|
Central
|
|
|
|
|
Retail1
|
|
Banking1
|
|
and Wealth1
|
|
items1
|
|
Group
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
4,623
|
|
1,443
|
|
37
|
|
129
|
|
6,232
|
Other income
|
|
1,010
|
|
686
|
|
838
|
|
48
|
|
2,582
|
Operating lease depreciation
|
|
(485)
|
|
(9)
|
|
–
|
|
–
|
|
(494)
|
Net income
|
|
5,148
|
|
2,120
|
|
875
|
|
177
|
|
8,320
|
Operating costs
|
|
(2,440)
|
|
(1,042)
|
|
(443)
|
|
(44)
|
|
(3,969)
|
Remediation
|
|
(190)
|
|
(65)
|
|
(25)
|
|
(22)
|
|
(302)
|
Total costs
|
|
(2,630)
|
|
(1,107)
|
|
(468)
|
|
(66)
|
|
(4,271)
|
Trading surplus
|
|
2,518
|
|
1,013
|
|
407
|
|
111
|
|
4,049
|
Impairment
|
|
(482)
|
|
(241)
|
|
–
|
|
11
|
|
(712)
|
Underlying profit
|
|
2,036
|
|
772
|
|
407
|
|
122
|
|
3,337
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.76%
|
|
3.20%
|
|
|
|
|
|
2.86%
|
Average interest-earning banking assets
|
|
£343.7bn
|
|
£91.5bn
|
|
£0.9bn
|
|
–
|
|
£436.1bn
|
Asset quality ratio
|
|
0.28%
|
|
0.46%
|
|
|
|
|
|
0.31%
|
Return on risk-weighted assets
|
|
4.14%
|
|
1.89%
|
|
|
|
|
|
3.21%
|
Loans and advances to customers2
|
|
£342.6bn
|
|
£95.2bn
|
|
£0.9bn
|
|
£1.7bn
|
|
£440.4bn
|
Customer deposits3
|
|
£253.2bn
|
|
£144.0bn
|
|
£13.7bn
|
|
£0.9bn
|
|
£411.8bn
|
Risk-weighted assets
|
|
£98.4bn
|
|
£77.4bn
|
|
£1.3bn
|
|
£26.3bn
|
|
£203.4bn
|
|
|
|
|
1
|
Restated
to reflect migration of certain customer relationships from the SME
business within Commercial Banking to Business Banking within
Retail. Segmental net interest income also restated to reflect the
Group’s adoption of the Sterling Overnight Index Average
(SONIA).
|
||
2
|
Excludes
reverse repos.
|
||
3
|
Excludes
repos.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2020
|
|
20191
|
|
Change
|
|
20191
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
4,233
|
|
4,561
|
|
(7)
|
|
4,623
|
|
(8)
|
Other income
|
|
919
|
|
1,009
|
|
(9)
|
|
1,010
|
|
(9)
|
Operating lease depreciation
|
|
(518)
|
|
(461)
|
|
(12)
|
|
(485)
|
|
(7)
|
Net income
|
|
4,634
|
|
5,109
|
|
(9)
|
|
5,148
|
|
(10)
|
Operating costs
|
|
(2,277)
|
|
(2,328)
|
|
2
|
|
(2,440)
|
|
7
|
Remediation
|
|
(50)
|
|
(48)
|
|
(4)
|
|
(190)
|
|
74
|
Total costs
|
|
(2,327)
|
|
(2,376)
|
|
2
|
|
(2,630)
|
|
12
|
Trading surplus
|
|
2,307
|
|
2,733
|
|
(16)
|
|
2,518
|
|
8
|
Impairment
|
|
(2,095)
|
|
(556)
|
|
|
|
(482)
|
|
|
Underlying profit
|
|
212
|
|
2,177
|
|
(90)
|
|
2,036
|
|
(90)
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.59%
|
|
2.79%
|
|
(20)bp
|
|
2.76%
|
|
(17)bp
|
Average interest-earning banking assets
|
|
£342.3bn
|
|
£340.1bn
|
|
1
|
|
£343.7bn
|
|
–
|
Asset quality ratio
|
|
1.23%
|
|
0.33%
|
|
90bp
|
|
0.28%
|
|
95bp
|
Return on risk-weighted assets
|
|
0.43%
|
|
4.64%
|
|
(421)bp
|
|
4.14%
|
|
(371)bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
|
|
At 31 Dec
|
|
|
|
|
2020
|
|
20191
|
|
Change
|
|
20191
|
|
|
|
|
£bn
|
|
£bn
|
|
%
|
|
£bn
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Open mortgage book
|
|
267.1
|
|
264.9
|
|
1
|
|
270.1
|
|
(1)
|
Closed mortgage book
|
|
17.5
|
|
19.8
|
|
(12)
|
|
18.5
|
|
(5)
|
Credit cards
|
|
15.2
|
|
17.7
|
|
(14)
|
|
17.7
|
|
(14)
|
UK unsecured loans
|
|
8.2
|
|
8.2
|
|
–
|
|
8.4
|
|
(2)
|
UK motor finance
|
|
15.3
|
|
15.5
|
|
(1)
|
|
15.6
|
|
(2)
|
Business Banking
|
|
7.0
|
|
2.1
|
|
|
|
2.0
|
|
|
Overdrafts
|
|
1.0
|
|
1.2
|
|
(17)
|
|
1.3
|
|
(23)
|
Other2
|
|
9.7
|
|
9.0
|
|
8
|
|
9.0
|
|
8
|
Loans and advances to customers
|
|
341.0
|
|
338.4
|
|
1
|
|
342.6
|
|
–
|
Operating lease assets
|
|
4.1
|
|
4.5
|
|
(9)
|
|
4.3
|
|
(5)
|
Total customer assets
|
|
345.1
|
|
342.9
|
|
1
|
|
346.9
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
Current Accounts
|
|
87.5
|
|
76.0
|
|
15
|
|
76.9
|
|
14
|
Relationship savings3
|
|
172.0
|
|
162.2
|
|
6
|
|
163.0
|
|
6
|
Tactical savings
|
|
12.7
|
|
15.3
|
|
(17)
|
|
13.3
|
|
(5)
|
Customer deposits
|
|
272.2
|
|
253.5
|
|
7
|
|
253.2
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets
|
|
99.4
|
|
95.8
|
|
4
|
|
98.4
|
|
1
|
|
|
1
|
Restated
to reflect migration of certain customer relationships from the SME
business within Commercial Banking to Business Banking within
Retail. Also restated to reflect the Group’s adoption of the
Sterling Overnight Index Average (SONIA).
|
2
|
Includes
Europe and run-off.
|
3
|
Includes
Business Banking.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2020
|
|
20191
|
|
Change
|
|
20191
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
1,222
|
|
1,449
|
|
(16)
|
|
1,443
|
|
(15)
|
Other income
|
|
658
|
|
731
|
|
(10)
|
|
686
|
|
(4)
|
Operating lease depreciation
|
|
(8)
|
|
(12)
|
|
33
|
|
(9)
|
|
11
|
Net income
|
|
1,872
|
|
2,168
|
|
(14)
|
|
2,120
|
|
(12)
|
Operating costs
|
|
(906)
|
|
(1,031)
|
|
12
|
|
(1,042)
|
|
13
|
Remediation
|
|
(115)
|
|
(90)
|
|
(28)
|
|
(65)
|
|
(77)
|
Total costs
|
|
(1,021)
|
|
(1,121)
|
|
9
|
|
(1,107)
|
|
8
|
Trading surplus
|
|
851
|
|
1,047
|
|
(19)
|
|
1,013
|
|
16
|
Impairment
|
|
(1,519)
|
|
(65)
|
|
|
|
(241)
|
|
|
Underlying (loss) / profit
|
|
(668)
|
|
982
|
|
|
|
772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking net interest margin
|
|
2.92%
|
|
3.24%
|
|
(32)bp
|
|
3.20%
|
|
(28)bp
|
Average interest-earning banking assets
|
|
£90.0bn
|
|
£92.3bn
|
|
(2)
|
|
£91.5bn
|
|
(2)
|
Asset quality ratio
|
|
3.12%
|
|
0.13%
|
|
299bp
|
|
0.46%
|
|
266bp
|
Return on risk-weighted assets
|
|
(1.70)%
|
|
2.33%
|
|
(403)bp
|
|
1.89%
|
|
(359)bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
|
|
At 31 Dec
|
|
|
|
|
2020
|
|
20191
|
|
Change
|
|
20191
|
|
Change
|
|
|
£bn
|
|
£bn
|
|
%
|
|
£bn
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
31.4
|
|
30.2
|
|
4
|
|
30.1
|
|
4
|
Mid Corporates
|
|
4.6
|
|
5.5
|
|
(16)
|
|
5.3
|
|
(13)
|
Corporate and Institutional
|
|
55.0
|
|
59.8
|
|
(8)
|
|
54.6
|
|
1
|
Other
|
|
5.0
|
|
4.3
|
|
16
|
|
5.2
|
|
(4)
|
Loans and advances to customers
|
|
96.0
|
|
99.8
|
|
(4)
|
|
95.2
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
SME including Retail Business Banking
|
|
38.4
|
|
32.3
|
|
19
|
|
32.1
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
Customer deposits
|
|
154.5
|
|
149.5
|
|
3
|
|
144.0
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
Current accounts including Retail Business Banking
|
|
44.2
|
|
34.0
|
|
30
|
|
34.9
|
|
27
|
Other deposits including Retail Business Banking
|
|
133.8
|
|
133.2
|
|
–
|
|
127.6
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets
|
|
78.4
|
|
83.0
|
|
(6)
|
|
77.4
|
|
1
|
1
|
Restated
to reflect migration of certain customer relationships from the SME
business within Commercial Banking to Business Banking within
Retail. Also restated to reflect the Group’s adoption of the
Sterling Overnight Index Average (SONIA).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2020
|
|
20191
|
|
Change
|
|
20191
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
14
|
|
40
|
|
(65)
|
|
37
|
|
(62)
|
Other income
|
|
853
|
|
1,183
|
|
(28)
|
|
838
|
|
2
|
Net income
|
|
867
|
|
1,223
|
|
(29)
|
|
875
|
|
(1)
|
Operating costs
|
|
(459)
|
|
(539)
|
|
15
|
|
(443)
|
|
(4)
|
Remediation
|
|
(19)
|
|
(25)
|
|
24
|
|
(25)
|
|
24
|
Total costs
|
|
(478)
|
|
(564)
|
|
15
|
|
(468)
|
|
(2)
|
Trading surplus
|
|
389
|
|
659
|
|
(41)
|
|
407
|
|
(4)
|
Impairment
|
|
(10)
|
|
–
|
|
|
|
–
|
|
|
Underlying profit
|
|
379
|
|
659
|
|
(42)
|
|
407
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
Life and pensions sales (PVNBP)2
|
|
7,880
|
|
8,568
|
|
(8)
|
|
8,947
|
|
(12)
|
General insurance underwritten new GWP3
|
|
56
|
|
64
|
|
(13)
|
|
63
|
|
(11)
|
General insurance underwritten total GWP3
|
|
327
|
|
335
|
|
(2)
|
|
336
|
|
(3)
|
General insurance combined ratio
|
|
89%
|
|
80%
|
|
9pp
|
|
82%
|
|
7pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
|
|
At 31 Dec
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
2019
|
|
Change
|
|
|
£bn
|
|
£bn
|
|
%
|
|
£bn
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Insurance Solvency II ratio4
|
|
140%
|
|
149%
|
|
(9)pp
|
|
170%
|
|
(30)pp
|
UK Wealth Loans and advances to customers
|
|
0.9
|
|
0.9
|
|
–
|
|
0.9
|
|
–
|
UK Wealth Customer deposits
|
|
13.5
|
|
13.8
|
|
(2)
|
|
13.7
|
|
(1)
|
UK Wealth Risk-weighted assets
|
|
1.3
|
|
1.3
|
|
–
|
|
1.3
|
|
–
|
Total customer assets under administration
|
|
159.6
|
|
155.0
|
|
3
|
|
170.0
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 30 June 2020
|
|
Half-year to 30 June 2019
|
|
Half-year
|
||||||||
|
|
New
|
|
Existing
|
|
|
|
New
|
|
Existing
|
|
|
|
to 31 Dec
|
|
|
business
|
|
business
|
|
Total
|
|
business
|
|
business
|
|
Total
|
|
20191
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Workplace, planning and retirement
|
|
121
|
|
62
|
|
183
|
|
245
|
|
56
|
|
301
|
|
206
|
Individual and bulk annuities
|
|
108
|
|
41
|
|
149
|
|
78
|
|
34
|
|
112
|
|
165
|
Protection
|
|
11
|
|
10
|
|
21
|
|
11
|
|
12
|
|
23
|
|
22
|
Longstanding LP&I
|
|
4
|
|
175
|
|
179
|
|
6
|
|
191
|
|
197
|
|
198
|
|
|
244
|
|
288
|
|
532
|
|
340
|
|
293
|
|
633
|
|
591
|
Life and pensions experience and other items
|
|
|
|
|
|
72
|
|
|
|
|
|
230
|
|
(10)
|
General insurance
|
|
|
|
|
|
155
|
|
|
|
|
|
179
|
|
147
|
|
|
|
|
|
|
759
|
|
|
|
|
|
1,042
|
|
728
|
Wealth
|
|
|
|
|
|
108
|
|
|
|
|
|
181
|
|
147
|
Net income
|
|
|
|
|
|
867
|
|
|
|
|
|
1,223
|
|
875
|
|
|
1
|
Restated
to reflect the Group’s adoption of the Sterling Overnight
Index Average (SONIA).
|
2
|
Present
value of new business premiums.
|
3
|
Gross
written premiums.
|
4
|
Equivalent
regulatory view of ratio (including With Profits funds) was 135 per
cent (30 June 2019: 141 per cent; 31 December 2019:
154 per cent).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2020
|
|
20191
|
|
Change
|
|
20191
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
40
|
|
322
|
|
(88)
|
|
177
|
|
(77)
|
Operating costs
|
|
(57)
|
|
(8)
|
|
|
|
(44)
|
|
(30)
|
Remediation
|
|
7
|
|
20
|
|
(65)
|
|
(22)
|
|
|
Total costs
|
|
(50)
|
|
12
|
|
|
|
(66)
|
|
24
|
Trading surplus
|
|
(10)
|
|
334
|
|
|
|
111
|
|
|
Impairment
|
|
(194)
|
|
42
|
|
|
|
11
|
|
|
Underlying (loss) / profit
|
|
(204)
|
|
376
|
|
|
|
122
|
|
|
|
|
1
|
Restated
to reflect the Group’s adoption of the Sterling Overnight
Index Average (SONIA).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Removal of:
|
|
|||||
|
|
|
|
Volatility
|
|
|
|
|
|
|
|
|
Statutory
|
|
and other
|
|
Insurance
|
|
|
|
Underlying
|
|
|
basis
|
|
items1,2,3
|
|
gross up4
|
|
PPI
|
|
basis
|
Half-year to 30 June 2020
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
6,556
|
|
54
|
|
(1,132)
|
|
–
|
|
5,478
|
Other income, net of insurance claims
|
|
1,339
|
|
104
|
|
1,018
|
|
–
|
|
2,461
|
Operating lease depreciation
|
|
|
|
(526)
|
|
–
|
|
–
|
|
(526)
|
Net income
|
|
7,895
|
|
(368)
|
|
(114)
|
|
–
|
|
7,413
|
Operating expenses5
|
|
(4,668)
|
|
689
|
|
103
|
|
–
|
|
(3,876)
|
Trading surplus
|
|
3,227
|
|
321
|
|
(11)
|
|
–
|
|
3,537
|
Impairment
|
|
(3,829)
|
|
–
|
|
11
|
|
–
|
|
(3,818)
|
(Loss) / profit before tax
|
|
(602)
|
|
321
|
|
–
|
|
–
|
|
(281)
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 30 June 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
4,639
|
|
203
|
|
1,303
|
|
–
|
|
6,145
|
Other income, net of insurance claims
|
|
4,492
|
|
76
|
|
(1,418)
|
|
–
|
|
3,150
|
Operating lease depreciation
|
|
|
|
(473)
|
|
–
|
|
–
|
|
(473)
|
Net income
|
|
9,131
|
|
(194)
|
|
(115)
|
|
–
|
|
8,822
|
Operating expenses5
|
|
(5,655)
|
|
841
|
|
115
|
|
650
|
|
(4,049)
|
Trading surplus
|
|
3,476
|
|
647
|
|
–
|
|
650
|
|
4,773
|
Impairment
|
|
(579)
|
|
–
|
|
–
|
|
–
|
|
(579)
|
Profit before tax
|
|
2,897
|
|
647
|
|
–
|
|
650
|
|
4,194
|
|
|
|
|
|
|
|
|
|
|
|
Half-year to 31 December 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
5,541
|
|
176
|
|
515
|
|
–
|
|
6,232
|
Other income, net of insurance claims
|
|
3,687
|
|
(502)
|
|
(603)
|
|
–
|
|
2,582
|
Operating lease depreciation
|
|
|
|
(494)
|
|
–
|
|
–
|
|
(494)
|
Net income
|
|
9,228
|
|
(820)
|
|
(88)
|
|
–
|
|
8,320
|
Operating expenses5
|
|
(7,015)
|
|
856
|
|
88
|
|
1,800
|
|
(4,271)
|
Trading surplus
|
|
2,213
|
|
36
|
|
–
|
|
1,800
|
|
4,049
|
Impairment
|
|
(717)
|
|
5
|
|
–
|
|
–
|
|
(712)
|
Profit before tax
|
|
1,496
|
|
41
|
|
–
|
|
1,800
|
|
3,337
|
|
|
|
1
|
Half-year
to 30 June 2020 comprises the effects of market volatility and
asset sales (losses of £43 million); the amortisation of
purchased intangibles (£34 million); restructuring (£133
million, comprising severance related costs, the rationalisation of
the non-branch property portfolio, the integration of
Zurich’s UK workplace pensions and savings business); and the
fair value unwind and other items (losses of £111
million).
|
|
2
|
Half-year
to 30 June 2019 comprises the effects of market volatility and
asset sales (losses of £296 million); the amortisation of
purchased intangibles (£34 million); restructuring (£182
million, comprising severance related costs, the rationalisation of
the non-branch property portfolio, the integration of MBNA and
Zurich’s UK workplace pensions and savings business); and the
fair value unwind and other items (losses of £135
million).
|
|
3
|
Half-year
to 31 December 2019 comprises the effects of market volatility and
asset sales (gains of £422 million); the amortisation of
purchased intangibles (£34 million); restructuring (£289
million, comprising severance related costs, the rationalisation of
the non-branch property portfolio, the integration of
Zurich’s UK workplace pensions and savings business); and the
fair value unwind and other items (losses of £140
million).
|
|
4
|
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.
|
|
5
|
The
statutory basis figure is the aggregate of operating costs and
operating lease depreciation.
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
Half-year
|
|
|
to 30 June
|
|
to 30 June
|
|
to 31 Dec
|
|
|
2020
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
Group net interest income – statutory basis
(£m)
|
|
6,556
|
|
4,639
|
|
5,541
|
Insurance gross up (£m)
|
|
(1,132)
|
|
1,303
|
|
515
|
Volatility and other items (£m)
|
|
54
|
|
203
|
|
176
|
Group net interest income – underlying basis
(£m)
|
|
5,478
|
|
6,145
|
|
6,232
|
Non-banking net interest expense (£m)
|
|
110
|
|
79
|
|
66
|
Banking net interest income – underlying basis
(£m)
|
|
5,588
|
|
6,224
|
|
6,298
|
|
|
|
|
|
|
|
Net loans and advances to customers
(£bn)1
|
|
440.4
|
|
441.0
|
|
440.4
|
Impairment provision and fair value adjustments
(£bn)
|
|
6.6
|
|
4.0
|
|
3.9
|
Non-banking items:
|
|
|
|
|
|
|
Fee-based
loans and advances (£bn)
|
|
(6.5)
|
|
(7.5)
|
|
(6.3)
|
Other
non-banking (£bn)
|
|
(2.4)
|
|
(2.5)
|
|
(3.1)
|
Gross banking loans and advances (£bn)
|
|
438.1
|
|
435.0
|
|
434.9
|
Averaging (£bn)
|
|
(4.9)
|
|
(1.7)
|
|
1.2
|
Average interest-earning banking assets (£bn)
|
|
433.2
|
|
433.3
|
|
436.1
|
|
|
|
|
|
|
|
Banking net interest margin (%)
|
|
2.59
|
|
2.90
|
|
2.86
|
|
|
|
1
|
Excludes
reverse repos.
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
Half-year
|
|
|
to 30 June
|
|
to 30 June
|
|
to 31 Dec
|
|
|
2020
|
|
2019
|
|
2019
|
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
Insurance volatility
|
|
(393)
|
|
221
|
|
9
|
Policyholder interests volatility
|
|
(205)
|
|
105
|
|
88
|
Total volatility
|
|
(598)
|
|
326
|
|
97
|
Insurance hedging arrangements
|
|
228
|
|
(299)
|
|
(48)
|
Total insurance volatility
|
|
(370)
|
|
27
|
|
49
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2020
|
|
2019
|
|
2019
|
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
42,734
|
|
43,448
|
|
41,697
|
Goodwill
|
|
(2,324)
|
|
(2,314)
|
|
(2,324)
|
Intangible assets
|
|
(3,985)
|
|
(3,615)
|
|
(3,808)
|
Purchased value of in-force business
|
|
(234)
|
|
(255)
|
|
(247)
|
Other, including deferred tax effects
|
|
309
|
|
203
|
|
269
|
Tangible net assets
|
|
36,500
|
|
37,467
|
|
35,587
|
|
|
|
|
|
|
|
Ordinary shares in issue, excluding own shares
|
|
70,735m
|
|
70,740m
|
|
70,031m
|
Tangible net assets per share
|
|
51.6p
|
|
53.0p
|
|
50.8p
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
Half-year
|
|
|
to 30 June
|
|
to 30 June
|
|
to 31 Dec
|
|
|
2020
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
Average shareholders' equity (£bn)
|
|
43.7
|
|
43.6
|
|
42.6
|
Average intangible assets (£bn)
|
|
(6.2)
|
|
(5.8)
|
|
(6.1)
|
Average tangible equity (£bn)
|
|
37.5
|
|
37.8
|
|
36.5
|
|
|
|
|
|
|
|
Underlying (loss) / profit after tax (£m)
|
|
(93)
|
|
3,160
|
|
2,530
|
Add back amortisation of intangible assets (post tax)
(£m)
|
|
212
|
|
178
|
|
186
|
Less profit attributable to non-controlling interests and other
equity holders (£m)
|
|
(253)
|
|
(283)
|
|
(264)
|
Adjusted underlying (loss) / profit after tax
(£m)
|
|
(134)
|
|
3,055
|
|
2,452
|
|
|
|
|
|
|
|
Underlying return on tangible equity (%)
|
|
(0.7)
|
|
16.3
|
|
13.3
|
|
|
|
|
|
|
|
Group statutory profit after tax (£m)
|
|
19
|
|
2,225
|
|
781
|
Add back amortisation of intangible assets (post tax)
(£m)
|
|
212
|
|
178
|
|
186
|
Add back amortisation of purchased intangible assets (post tax)
(£m)
|
|
35
|
|
38
|
|
36
|
Less profit attributable to non-controlling interests and other
equity holders (£m)
|
|
(253)
|
|
(283)
|
|
(264)
|
Adjusted statutory profit after tax (£m)
|
|
13
|
|
2,158
|
|
739
|
|
|
|
|
|
|
|
Statutory return on tangible equity (%)
|
|
0.1
|
|
11.5
|
|
4.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half-year
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
to 30 June
|
|
|
|
to 31 Dec
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
2019
|
|
Change
|
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
%
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
603
|
|
(38)
|
|
|
|
(130)
|
|
|
Credit
Cards
|
|
656
|
|
267
|
|
146
|
|
236
|
|
178
|
UK
Motor Finance
|
|
241
|
|
104
|
|
132
|
|
99
|
|
143
|
Other
|
|
595
|
|
223
|
|
167
|
|
277
|
|
115
|
|
|
2,095
|
|
556
|
|
277
|
|
482
|
|
335
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
257
|
|
(48)
|
|
|
|
(17)
|
|
|
Other
|
|
1,262
|
|
113
|
|
1,017
|
|
258
|
|
389
|
|
|
1,519
|
|
65
|
|
2,237
|
|
241
|
|
530
|
Insurance and Wealth
|
|
10
|
|
–
|
|
|
|
–
|
|
|
Central items
|
|
194
|
|
(42)
|
|
|
|
(11)
|
|
|
Total impairment charge
|
|
3,818
|
|
579
|
|
559
|
|
712
|
|
436
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality ratio
|
|
1.73%
|
|
0.26%
|
|
147bp
|
|
0.31%
|
|
142bp
|
Gross asset quality ratio
|
|
1.77%
|
|
0.34%
|
|
143bp
|
|
0.40%
|
|
137bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stage 2
|
|
Stage 3
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
POCI
|
|
as %
|
|
as %
|
At 30 June 2020
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
Total
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
285,727
|
|
236,577
|
|
34,307
|
|
1,800
|
|
13,043
|
|
12.0
|
|
0.6
|
Credit
Cards
|
|
15,895
|
|
13,439
|
|
2,088
|
|
368
|
|
–
|
|
13.1
|
|
2.3
|
UK
Motor Finance
|
|
15,830
|
|
12,674
|
|
2,920
|
|
236
|
|
–
|
|
18.4
|
|
1.5
|
Other1
|
|
26,780
|
|
24,239
|
|
2,061
|
|
480
|
|
–
|
|
7.7
|
|
1.8
|
|
|
344,232
|
|
286,929
|
|
41,376
|
|
2,884
|
|
13,043
|
|
12.0
|
|
0.8
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
31,769
|
|
25,742
|
|
5,181
|
|
846
|
|
–
|
|
16.3
|
|
2.7
|
Other
|
|
66,841
|
|
52,320
|
|
11,559
|
|
2,962
|
|
–
|
|
17.3
|
|
4.4
|
|
|
98,610
|
|
78,062
|
|
16,740
|
|
3,808
|
|
–
|
|
17.0
|
|
3.9
|
Insurance and Wealth
|
|
871
|
|
765
|
|
23
|
|
83
|
|
–
|
|
2.6
|
|
9.5
|
Central items
|
|
63,781
|
|
63,773
|
|
–
|
|
8
|
|
–
|
|
–
|
|
–
|
Total gross lending
|
|
507,494
|
|
429,529
|
|
58,139
|
|
6,783
|
|
13,043
|
|
11.5
|
|
1.3
|
ECL allowance on drawn balances
|
|
(5,986)
|
|
(1,332)
|
|
(2,168)
|
|
(2,161)
|
|
(325)
|
|
|
|
|
Net balance sheet carrying value
|
|
501,508
|
|
428,197
|
|
55,971
|
|
4,622
|
|
12,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL allowance (drawn and undrawn) as a percentage of gross lending
(%)2
|
|
1.3
|
|
0.4
|
|
4.1
|
|
33.4
|
|
|
|
|
|
|
|
|
1
|
Retail Other includes Business Banking, Loans, Overdrafts, Europe
and Retail run-off.
|
2
|
Stage 3 ECL allowances as a percentage of drawn balances are
calculated excluding loans in recoveries in Credit Cards of
£77 million and £129 million in Loans, Overdrafts
and Business Banking within Retail other.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stage 2
|
|
Stage 3
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
POCI
|
|
as %
|
|
as %
|
At 31 December 20191
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
Total
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
289,198
|
|
257,043
|
|
16,935
|
|
1,506
|
|
13,714
|
|
5.9
|
|
0.5
|
Credit
Cards
|
|
18,198
|
|
16,132
|
|
1,681
|
|
385
|
|
–
|
|
9.2
|
|
2.1
|
UK
Motor Finance
|
|
15,976
|
|
13,884
|
|
1,942
|
|
150
|
|
–
|
|
12.2
|
|
0.9
|
Other2
|
|
21,111
|
|
18,692
|
|
1,976
|
|
443
|
|
–
|
|
9.4
|
|
2.1
|
|
|
344,483
|
|
305,751
|
|
22,534
|
|
2,484
|
|
13,714
|
|
6.5
|
|
0.7
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
30,433
|
|
27,206
|
|
2,507
|
|
720
|
|
–
|
|
8.2
|
|
2.4
|
Other
|
|
66,065
|
|
59,868
|
|
3,470
|
|
2,727
|
|
–
|
|
5.3
|
|
4.1
|
|
|
96,498
|
|
87,074
|
|
5,977
|
|
3,447
|
|
–
|
|
6.2
|
|
3.6
|
Insurance and Wealth
|
|
862
|
|
753
|
|
32
|
|
77
|
|
–
|
|
3.7
|
|
8.9
|
Central items
|
|
56,404
|
|
56,397
|
|
–
|
|
7
|
|
–
|
|
–
|
|
–
|
Total gross lending
|
|
498,247
|
|
449,975
|
|
28,543
|
|
6,015
|
|
13,714
|
|
5.7
|
|
1.2
|
ECL allowance on drawn balances
|
|
(3,259)
|
|
(675)
|
|
(995)
|
|
(1,447)
|
|
(142)
|
|
|
|
|
Net balance sheet carrying value
|
|
494,988
|
|
449,300
|
|
27,548
|
|
4,568
|
|
13,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL allowance (drawn and undrawn) as a percentage of gross lending
(%)3
|
|
0.7
|
|
0.2
|
|
3.8
|
|
25.0
|
|
1.0
|
|
|
|
|
|
|
1
|
Restated
to reflect migration of certain customer relationships from the SME
business within Commercial Banking to Business Banking within
Retail.
|
2
|
Retail Other includes Business Banking, Loans, Overdrafts, Europe
and Retail run-off.
|
3
|
Stage 3 ECL allowances as a percentage of drawn balances are
calculated excluding loans in recoveries in Credit Cards of
£80 million and £125 million in Loans, Overdrafts
and Business Banking within Retail other.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stage 2
|
|
Stage 3
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
as %
|
|
as %
|
At 30 June
20201
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
Total
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
286,379
|
|
237,787
|
|
44,035
|
|
4,557
|
|
15.4
|
|
1.6
|
Credit
Cards
|
|
15,825
|
|
13,380
|
|
2,079
|
|
366
|
|
13.1
|
|
2.3
|
UK
Motor Finance
|
|
15,830
|
|
12,674
|
|
2,920
|
|
236
|
|
18.4
|
|
1.5
|
Other2
|
|
26,780
|
|
24,239
|
|
2,061
|
|
480
|
|
7.7
|
|
1.8
|
|
|
344,814
|
|
288,080
|
|
51,095
|
|
5,639
|
|
14.8
|
|
1.6
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
31,769
|
|
25,742
|
|
5,181
|
|
846
|
|
16.3
|
|
2.7
|
Other
|
|
66,841
|
|
52,320
|
|
11,559
|
|
2,962
|
|
17.3
|
|
4.4
|
|
|
98,610
|
|
78,062
|
|
16,740
|
|
3,808
|
|
17.0
|
|
3.9
|
Insurance and Wealth
|
|
871
|
|
765
|
|
23
|
|
83
|
|
2.6
|
|
9.5
|
Central items
|
|
63,781
|
|
63,773
|
|
–
|
|
8
|
|
–
|
|
–
|
Total gross lending
|
|
508,076
|
|
430,680
|
|
67,858
|
|
9,538
|
|
13.4
|
|
1.9
|
ECL allowance on drawn balances
|
|
(6,685)
|
|
(1,355)
|
|
(2,602)
|
|
(2,728)
|
|
|
|
|
Net balance sheet carrying value
|
|
501,391
|
|
429,325
|
|
65,256
|
|
6,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL allowance (drawn and undrawn) as a percentage of gross lending
(%)3
|
|
1.4
|
|
0.4
|
|
4.2
|
|
29.6
|
|
|
|
|
|
|
1
|
These balances exclude the impact of the HBOS and MBNA acquisition
related adjustments.
|
2
|
Retail Other includes Business Banking, Loans, Overdrafts, Europe
and Retail run-off.
|
3
|
Stage 3 ECL allowances as a percentage of drawn balances are
calculated excluding loans in recoveries in Credit Cards of
£77 million and £129 million in Loans, Overdrafts
and Business Banking within Retail other.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stage 2
|
|
Stage 3
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
as %
|
|
as %
|
At 31 December 20191,2
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
Total
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
289,845
|
|
258,760
|
|
26,838
|
|
4,247
|
|
9.3
|
|
1.5
|
Credit
Cards
|
|
18,110
|
|
16,052
|
|
1,675
|
|
383
|
|
9.2
|
|
2.1
|
UK
Motor Finance
|
|
15,976
|
|
13,884
|
|
1,942
|
|
150
|
|
12.2
|
|
0.9
|
Other3
|
|
21,110
|
|
18,691
|
|
1,976
|
|
443
|
|
9.4
|
|
2.1
|
|
|
345,041
|
|
307,387
|
|
32,431
|
|
5,223
|
|
9.4
|
|
1.5
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
30,433
|
|
27,206
|
|
2,507
|
|
720
|
|
8.2
|
|
2.4
|
Other
|
|
66,065
|
|
59,868
|
|
3,470
|
|
2,727
|
|
5.3
|
|
4.1
|
|
|
96,498
|
|
87,074
|
|
5,977
|
|
3,447
|
|
6.2
|
|
3.6
|
Insurance and Wealth
|
|
862
|
|
753
|
|
32
|
|
77
|
|
3.7
|
|
8.9
|
Central items
|
|
56,404
|
|
56,397
|
|
–
|
|
7
|
|
–
|
|
–
|
Total gross lending
|
|
498,805
|
|
451,611
|
|
38,440
|
|
8,754
|
|
7.7
|
|
1.8
|
ECL allowance on drawn balances
|
|
(3,965)
|
|
(702)
|
|
(1,346)
|
|
(1,917)
|
|
|
|
|
Net balance sheet carrying value
|
|
494,840
|
|
450,909
|
|
37,094
|
|
6,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL allowance (drawn and undrawn) as a percentage of gross lending
(%)4
|
|
0.8
|
|
0.2
|
|
3.7
|
|
22.5
|
|
|
|
|
|
|
1
|
These balances exclude the impact of the HBOS and MBNA acquisition
related adjustments.
|
2
|
Restated
to reflect migration of certain customer relationships from the SME
business within Commercial Banking to Business Banking within
Retail.
|
3
|
Retail Other includes Business Banking, Loans, Overdrafts, Europe
and Retail run-off.
|
4
|
Stage 3 ECL allowances as a percentage of drawn balances are
calculated excluding loans in recoveries in Credit Cards of
£80 million and £125 million in Loans, Overdrafts
and Business Banking within Retail other.
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2020
|
|
2019
|
|
|
£m
|
|
£m
|
Customer related balances
|
|
|
|
|
Drawn
|
|
5,986
|
|
3,259
|
Undrawn
|
|
501
|
|
177
|
|
|
6,487
|
|
3,436
|
Other assets
|
|
54
|
|
19
|
Total ECL allowance
|
|
6,541
|
|
3,455
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2020
|
|
2019
|
|
|
£m
|
|
£m
|
Customer related balances
|
|
|
|
|
Drawn
|
|
6,685
|
|
3,965
|
Undrawn
|
|
501
|
|
177
|
|
|
7,186
|
|
4,142
|
Other assets
|
|
54
|
|
19
|
Total ECL allowance
|
|
7,240
|
|
4,161
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
POCI
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
At 30 June 2020
|
|
|
|
|
|
|
|
|
|
Underlying basis
|
508,076
|
|
430,680
|
|
67,858
|
|
9,538
|
|
–
|
POCI assets
|
–
|
|
(1,210)
|
|
(9,728)
|
|
(2,757)
|
|
13,695
|
Acquisition fair value adjustment
|
(582)
|
|
59
|
|
9
|
|
2
|
|
(652)
|
|
(582)
|
|
(1,151)
|
|
(9,719)
|
|
(2,755)
|
|
13,043
|
Statutory basis
|
507,494
|
|
429,529
|
|
58,139
|
|
6,783
|
|
13,043
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2019
|
|
|
|
|
|
|
|
|
|
Underlying basis
|
498,805
|
|
451,611
|
|
38,440
|
|
8,754
|
|
–
|
POCI assets
|
–
|
|
(1,718)
|
|
(9,903)
|
|
(2,740)
|
|
14,361
|
Acquisition fair value adjustment
|
(558)
|
|
82
|
|
6
|
|
1
|
|
(647)
|
|
(558)
|
|
(1,636)
|
|
(9,897)
|
|
(2,739)
|
|
13,714
|
Statutory basis
|
498,247
|
|
449,975
|
|
28,543
|
|
6,015
|
|
13,714
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
POCI
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
At 30 June 2020
|
|
|
|
|
|
|
|
|
|
Underlying basis
|
6,685
|
|
1,355
|
|
2,602
|
|
2,728
|
|
–
|
POCI assets
|
–
|
|
–
|
|
(416)
|
|
(561)
|
|
977
|
Acquisition fair value adjustment
|
(699)
|
|
(23)
|
|
(18)
|
|
(6)
|
|
(652)
|
|
(699)
|
|
(23)
|
|
(434)
|
|
(567)
|
|
325
|
Statutory basis
|
5,986
|
|
1,332
|
|
2,168
|
|
2,161
|
|
325
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2019
|
|
|
|
|
|
|
|
|
|
Expected credit losses on drawn balances
|
|
|
|
|
|
|
|
|
|
Underlying basis
|
3,965
|
|
702
|
|
1,346
|
|
1,917
|
|
–
|
POCI assets
|
–
|
|
–
|
|
(334)
|
|
(455)
|
|
789
|
Acquisition fair value adjustment
|
(706)
|
|
(27)
|
|
(17)
|
|
(15)
|
|
(647)
|
|
(706)
|
|
(27)
|
|
(351)
|
|
(470)
|
|
142
|
Statutory basis
|
3,259
|
|
675
|
|
995
|
|
1,447
|
|
142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
POCI
|
||||||||||
At 30 June 2020
|
|
£m
|
|
%1,2
|
|
£m
|
|
%1,2
|
|
£m
|
|
%1,2
|
|
£m
|
|
%1,2,3
|
|
£m
|
|
%1,2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
1,111
|
|
0.4
|
|
108
|
|
–
|
|
491
|
|
1.4
|
|
187
|
|
10.4
|
|
325
|
|
2.5
|
Credit
Cards
|
|
944
|
|
6.0
|
|
403
|
|
3.0
|
|
420
|
|
20.1
|
|
121
|
|
41.6
|
|
–
|
|
–
|
UK Motor Finance4
|
|
563
|
|
3.6
|
|
194
|
|
1.5
|
|
217
|
|
7.4
|
|
152
|
|
64.4
|
|
–
|
|
–
|
Other5
|
|
897
|
|
3.4
|
|
341
|
|
1.4
|
|
383
|
|
18.6
|
|
173
|
|
49.3
|
|
–
|
|
–
|
|
|
3,515
|
|
1.0
|
|
1,046
|
|
0.4
|
|
1,511
|
|
3.7
|
|
633
|
|
23.6
|
|
325
|
|
2.5
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
502
|
|
1.6
|
|
115
|
|
0.4
|
|
269
|
|
5.2
|
|
118
|
|
13.9
|
|
–
|
|
–
|
Other
|
|
2,238
|
|
3.3
|
|
210
|
|
0.4
|
|
602
|
|
5.2
|
|
1,426
|
|
48.1
|
|
–
|
|
–
|
|
|
2,740
|
|
2.8
|
|
325
|
|
0.4
|
|
871
|
|
5.2
|
|
1,544
|
|
40.5
|
|
–
|
|
–
|
Insurance and Wealth
|
|
25
|
|
2.9
|
|
11
|
|
1.4
|
|
1
|
|
4.3
|
|
13
|
|
15.7
|
|
–
|
|
–
|
Central items
|
|
207
|
|
0.3
|
|
201
|
|
0.3
|
|
–
|
|
–
|
|
6
|
|
75.0
|
|
–
|
|
–
|
Total
|
|
6,487
|
|
1.3
|
|
1,583
|
|
0.4
|
|
2,383
|
|
4.1
|
|
2,196
|
|
33.4
|
|
325
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
569
|
|
0.2
|
|
24
|
|
–
|
|
281
|
|
1.7
|
|
122
|
|
8.1
|
|
142
|
|
1.0
|
Credit
Cards
|
|
546
|
|
3.0
|
|
203
|
|
1.3
|
|
218
|
|
13.0
|
|
125
|
|
41.0
|
|
–
|
|
–
|
UK Motor Finance4
|
|
387
|
|
2.4
|
|
216
|
|
1.6
|
|
87
|
|
4.5
|
|
84
|
|
56.0
|
|
–
|
|
–
|
Other5
|
|
588
|
|
2.8
|
|
196
|
|
1.0
|
|
233
|
|
11.8
|
|
159
|
|
50.0
|
|
–
|
|
–
|
|
|
2,090
|
|
0.6
|
|
639
|
|
0.2
|
|
819
|
|
3.6
|
|
490
|
|
21.5
|
|
142
|
|
1.0
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
273
|
|
0.9
|
|
45
|
|
0.2
|
|
127
|
|
5.1
|
|
101
|
|
14.0
|
|
–
|
|
–
|
Other
|
|
1,040
|
|
1.6
|
|
70
|
|
0.1
|
|
125
|
|
3.6
|
|
845
|
|
31.0
|
|
–
|
|
–
|
|
|
1,313
|
|
1.4
|
|
115
|
|
0.1
|
|
252
|
|
4.2
|
|
946
|
|
27.4
|
|
–
|
|
–
|
Insurance and Wealth
|
|
17
|
|
2.0
|
|
6
|
|
0.8
|
|
1
|
|
3.1
|
|
10
|
|
13.0
|
|
–
|
|
–
|
Central items
|
|
16
|
|
–
|
|
10
|
|
–
|
|
–
|
|
–
|
|
6
|
|
85.7
|
|
–
|
|
–
|
Total
|
|
3,436
|
|
0.7
|
|
770
|
|
0.2
|
|
1,072
|
|
3.8
|
|
1,452
|
|
25.0
|
|
142
|
|
1.0
|
|
|
1
|
As a
percentage of drawn balances.
|
2
|
ECL
allowances as a percentage of drawn balances as at 31 December 2019
restated to reflect migration of certain customer relationships
from the SME business within Commercial Banking to Business Banking
within Retail.
|
3
|
Stage 3 ECL allowances as a percentage of drawn balances are
calculated excluding loans in recoveries in Credit Cards of
£77 million (31 December 2019: £80 million) and
£129 million (31 December 2019: £125 million) in
Loans, Overdrafts and Business Banking within Retail
other.
|
4
|
UK motor finance for Stages 1 and 2 include £191 million (31
December 2019: £201 million) relating to provisions against
residual values of vehicles subject to finance leasing agreements.
These provisions are included within the calculation of coverage
ratios.
|
5
|
Retail Other includes Business Banking, Loans, Overdrafts, Europe
and Retail run-off.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
||||||||
|
|
£m
|
|
%2,3
|
|
£m
|
|
%2,3
|
|
£m
|
|
%2,3
|
|
£m
|
|
%2,3,4
|
At 30 June
20201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
1,763
|
|
0.6
|
|
108
|
|
–
|
|
907
|
|
2.1
|
|
748
|
|
16.4
|
Credit
Cards
|
|
991
|
|
6.3
|
|
426
|
|
3.2
|
|
438
|
|
21.1
|
|
127
|
|
43.9
|
UK Motor Finance5
|
|
563
|
|
3.6
|
|
194
|
|
1.5
|
|
217
|
|
7.4
|
|
152
|
|
64.4
|
Other6
|
|
897
|
|
3.4
|
|
341
|
|
1.4
|
|
383
|
|
18.6
|
|
173
|
|
49.3
|
|
|
4,214
|
|
1.2
|
|
1,069
|
|
0.4
|
|
1,945
|
|
3.8
|
|
1,200
|
|
22.1
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
502
|
|
1.6
|
|
115
|
|
0.4
|
|
269
|
|
5.2
|
|
118
|
|
13.9
|
Other
|
|
2,238
|
|
3.3
|
|
210
|
|
0.4
|
|
602
|
|
5.2
|
|
1,426
|
|
48.1
|
|
|
2,740
|
|
2.8
|
|
325
|
|
0.4
|
|
871
|
|
5.2
|
|
1,544
|
|
40.5
|
Insurance and Wealth
|
|
25
|
|
2.9
|
|
11
|
|
1.4
|
|
1
|
|
4.3
|
|
13
|
|
15.7
|
Central items
|
|
207
|
|
0.3
|
|
201
|
|
0.3
|
|
–
|
|
–
|
|
6
|
|
75.0
|
Total
|
|
7,186
|
|
1.4
|
|
1,606
|
|
0.4
|
|
2,817
|
|
4.2
|
|
2,763
|
|
29.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 20191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
1,216
|
|
0.4
|
|
26
|
|
–
|
|
614
|
|
2.3
|
|
576
|
|
13.6
|
Credit
Cards
|
|
606
|
|
3.4
|
|
230
|
|
1.4
|
|
236
|
|
14.1
|
|
140
|
|
46.2
|
UK Motor Finance5
|
|
387
|
|
2.4
|
|
216
|
|
1.6
|
|
87
|
|
4.5
|
|
84
|
|
56.0
|
Other6
|
|
587
|
|
2.8
|
|
194
|
|
1.0
|
|
233
|
|
11.8
|
|
160
|
|
50.3
|
|
|
2,796
|
|
0.8
|
|
666
|
|
0.2
|
|
1,170
|
|
3.6
|
|
960
|
|
19.1
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
273
|
|
0.9
|
|
45
|
|
0.2
|
|
127
|
|
5.1
|
|
101
|
|
14.0
|
Other
|
|
1,040
|
|
1.6
|
|
70
|
|
0.1
|
|
125
|
|
3.6
|
|
845
|
|
31.0
|
|
|
1,313
|
|
1.4
|
|
115
|
|
0.1
|
|
252
|
|
4.2
|
|
946
|
|
27.4
|
Insurance and Wealth
|
|
17
|
|
2.0
|
|
6
|
|
0.8
|
|
1
|
|
3.1
|
|
10
|
|
13.0
|
Central items
|
|
16
|
|
–
|
|
10
|
|
–
|
|
–
|
|
–
|
|
6
|
|
85.7
|
Total
|
|
4,142
|
|
0.8
|
|
797
|
|
0.2
|
|
1,423
|
|
3.7
|
|
1,922
|
|
22.5
|
|
|
1
|
These balances exclude the impact of the HBOS and MBNA acquisition
related adjustments. Stage 2 up to date loans are assigned to PD
movement if they also meet other triggers. This represents a change
in presentation for Commercial Banking where these loans were
reported in Other at 31 December 2019.
|
2
|
As a
percentage of drawn balances.
|
3
|
ECL
allowances as a percentage of drawn balances as at 31 December 2019
restated to reflect migration of certain customer relationships
from the SME business within Commercial Banking to Business Banking
within Retail.
|
4
|
Stage 3 ECL allowances as a percentage of drawn balances are
calculated excluding loans in recoveries in Credit Cards of
£77 million (31 December 2019: £80 million) and
£129 million (31 December 2019: £125 million) in
Loans, Overdrafts and Business Banking within Retail
other.
|
5
|
UK motor finance for Stages 1 and 2 include £191 million (31
December 2019: £201 million) relating to provisions against
residual values of vehicles subject to finance leasing agreements.
These provisions are included within the calculation of coverage
ratios.
|
6
|
Retail Other includes Business Banking, Loans, Overdrafts, Europe
and Retail run-off.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to date
|
|
1-30 days past due
|
|
Over 30 days past due
|
||||||||||||||||||
|
|
PD movements
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Gross
|
|
|
|
|
|
Gross
|
|
|
|
|
|
Gross
|
|
|
|
|
|
Gross
|
|
|
|
|
|
|
lending
|
|
ECL
|
|
|
|
lending
|
|
ECL
|
|
|
|
lending
|
|
ECL
|
|
|
|
lending
|
|
ECL
|
|
|
|
|
£m
|
|
£m
|
|
%1
|
|
£m
|
|
£m
|
|
%1
|
|
£m
|
|
£m
|
|
%1
|
|
£m
|
|
£m
|
|
%1
|
At 30 June 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
21,032
|
|
191
|
|
0.9
|
|
9,602
|
|
139
|
|
1.4
|
|
1,488
|
|
41
|
|
2.8
|
|
2,185
|
|
120
|
|
5.5
|
Credit
Cards
|
|
1,562
|
|
295
|
|
18.9
|
|
439
|
|
96
|
|
21.9
|
|
64
|
|
18
|
|
28.1
|
|
23
|
|
11
|
|
47.8
|
UK
Motor Finance
|
|
784
|
|
57
|
|
7.3
|
|
1,871
|
|
67
|
|
3.6
|
|
142
|
|
40
|
|
28.2
|
|
123
|
|
53
|
|
43.1
|
Other2
|
|
947
|
|
192
|
|
20.3
|
|
793
|
|
104
|
|
13.1
|
|
183
|
|
55
|
|
30.1
|
|
138
|
|
32
|
|
23.2
|
|
|
24,325
|
|
735
|
|
3.0
|
|
12,705
|
|
406
|
|
3.2
|
|
1,877
|
|
154
|
|
8.2
|
|
2,469
|
|
216
|
|
8.7
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
4,702
|
|
234
|
|
5.0
|
|
245
|
|
11
|
|
4.5
|
|
139
|
|
17
|
|
12.2
|
|
95
|
|
7
|
|
7.4
|
Other
|
|
11,018
|
|
592
|
|
5.4
|
|
239
|
|
5
|
|
2.1
|
|
29
|
|
2
|
|
6.9
|
|
273
|
|
3
|
|
1.1
|
|
|
15,720
|
|
826
|
|
5.3
|
|
484
|
|
16
|
|
3.3
|
|
168
|
|
19
|
|
11.3
|
|
368
|
|
10
|
|
2.7
|
Insurance and Wealth
|
|
1
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
22
|
|
1
|
|
4.5
|
Central items
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Total
|
|
40,046
|
|
1,561
|
|
3.9
|
|
13,189
|
|
422
|
|
3.2
|
|
2,045
|
|
173
|
|
8.5
|
|
2,859
|
|
227
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
10,846
|
|
83
|
|
0.8
|
|
2,593
|
|
107
|
|
4.1
|
|
1,876
|
|
33
|
|
1.8
|
|
1,620
|
|
58
|
|
3.6
|
Credit
Cards
|
|
1,093
|
|
129
|
|
11.8
|
|
423
|
|
47
|
|
11.1
|
|
124
|
|
26
|
|
21.0
|
|
41
|
|
16
|
|
39.0
|
UK
Motor Finance
|
|
543
|
|
27
|
|
5.0
|
|
1,232
|
|
30
|
|
2.4
|
|
135
|
|
21
|
|
15.6
|
|
32
|
|
9
|
|
28.1
|
Other2
|
|
893
|
|
102
|
|
11.4
|
|
711
|
|
54
|
|
7.6
|
|
238
|
|
50
|
|
21.0
|
|
134
|
|
27
|
|
20.1
|
|
|
13,375
|
|
341
|
|
2.5
|
|
4,959
|
|
238
|
|
4.8
|
|
2,373
|
|
130
|
|
5.5
|
|
1,827
|
|
110
|
|
6.0
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
2,014
|
|
104
|
|
5.2
|
|
410
|
|
17
|
|
4.1
|
|
56
|
|
6
|
|
10.7
|
|
27
|
|
–
|
|
–
|
Other
|
|
1,881
|
|
75
|
|
4.0
|
|
1,290
|
|
47
|
|
3.6
|
|
61
|
|
2
|
|
3.3
|
|
238
|
|
1
|
|
0.4
|
|
|
3,895
|
|
179
|
|
4.6
|
|
1,700
|
|
64
|
|
3.8
|
|
117
|
|
8
|
|
6.8
|
|
265
|
|
1
|
|
0.4
|
Insurance and Wealth
|
|
–
|
|
–
|
|
–
|
|
28
|
|
1
|
|
3.6
|
|
1
|
|
–
|
|
–
|
|
3
|
|
–
|
|
–
|
Central items
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Total
|
|
17,270
|
|
520
|
|
3.0
|
|
6,687
|
|
303
|
|
4.5
|
|
2,491
|
|
138
|
|
5.5
|
|
2,095
|
|
111
|
|
5.3
|
|
|
1
|
ECL
allowances as a percentage of drawn balances as at 31 December 2019
restated to reflect migration of certain customer relationships
from the SME business within Commercial Banking to Business Banking
within Retail. Stage 2 up to date loans are assigned to PD movement
if they also meet other triggers. This represents a change in
presentation for Commercial Banking where these loans were reported
in Other at 31 December 2019.
|
2
|
Retail Other includes Business Banking, Loans, Overdrafts, Europe
and Retail run-off.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to date
|
|
1-30 days past due
|
|
Over 30 days past due
|
||||||||||||||||||
|
|
PD movements
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Gross
|
|
|
|
|
|
Gross
|
|
|
|
|
|
Gross
|
|
|
|
|
|
Gross
|
|
|
|
|
|
|
lending
|
|
ECL
|
|
|
|
lending
|
|
ECL
|
|
|
|
lending
|
|
ECL
|
|
|
|
lending
|
|
ECL
|
|
|
|
|
£m
|
|
£m
|
|
%2
|
|
£m
|
|
£m
|
|
%2
|
|
£m
|
|
£m
|
|
%2
|
|
£m
|
|
£m
|
|
%2
|
At 30 June
20201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
26,507
|
|
352
|
|
1.3
|
|
11,122
|
|
210
|
|
1.9
|
|
2,403
|
|
78
|
|
3.2
|
|
4,003
|
|
267
|
|
6.7
|
Credit
Cards
|
|
1,555
|
|
309
|
|
19.9
|
|
438
|
|
98
|
|
22.4
|
|
63
|
|
19
|
|
30.2
|
|
23
|
|
12
|
|
52.2
|
UK
Motor Finance
|
|
784
|
|
57
|
|
7.3
|
|
1,871
|
|
67
|
|
3.6
|
|
142
|
|
40
|
|
28.2
|
|
123
|
|
53
|
|
43.1
|
Other3
|
|
947
|
|
192
|
|
20.3
|
|
793
|
|
104
|
|
13.1
|
|
183
|
|
55
|
|
30.1
|
|
138
|
|
32
|
|
23.2
|
|
|
29,793
|
|
910
|
|
3.1
|
|
14,224
|
|
479
|
|
3.4
|
|
2,791
|
|
192
|
|
6.9
|
|
4,287
|
|
364
|
|
8.5
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
4,702
|
|
234
|
|
5.0
|
|
245
|
|
11
|
|
4.5
|
|
139
|
|
17
|
|
12.2
|
|
95
|
|
7
|
|
7.4
|
Other
|
|
11,018
|
|
592
|
|
5.4
|
|
239
|
|
5
|
|
2.1
|
|
29
|
|
2
|
|
6.9
|
|
273
|
|
3
|
|
1.1
|
|
|
15,720
|
|
826
|
|
5.3
|
|
484
|
|
16
|
|
3.3
|
|
168
|
|
19
|
|
11.3
|
|
368
|
|
10
|
|
2.7
|
Insurance and Wealth
|
|
1
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
22
|
|
1
|
|
4.5
|
Central items
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Total
|
|
45,514
|
|
1,736
|
|
3.8
|
|
14,708
|
|
495
|
|
3.4
|
|
2,959
|
|
211
|
|
7.1
|
|
4,677
|
|
375
|
|
8.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 20191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
16,100
|
|
192
|
|
1.2
|
|
3,730
|
|
171
|
|
4.6
|
|
3,517
|
|
84
|
|
2.4
|
|
3,491
|
|
167
|
|
4.8
|
Credit
Cards
|
|
1,088
|
|
139
|
|
12.8
|
|
422
|
|
49
|
|
11.6
|
|
124
|
|
30
|
|
24.2
|
|
41
|
|
17
|
|
41.5
|
UK
Motor Finance
|
|
543
|
|
27
|
|
5.0
|
|
1,232
|
|
30
|
|
2.4
|
|
135
|
|
21
|
|
15.6
|
|
32
|
|
9
|
|
28.1
|
Other3
|
|
892
|
|
103
|
|
11.5
|
|
712
|
|
54
|
|
7.6
|
|
238
|
|
49
|
|
20.6
|
|
134
|
|
28
|
|
20.9
|
|
|
18,623
|
|
461
|
|
2.5
|
|
6,096
|
|
304
|
|
5.0
|
|
4,014
|
|
184
|
|
4.6
|
|
3,698
|
|
221
|
|
6.0
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SME
|
|
2,014
|
|
104
|
|
5.2
|
|
410
|
|
17
|
|
4.1
|
|
56
|
|
6
|
|
10.7
|
|
27
|
|
–
|
|
–
|
Other
|
|
1,881
|
|
75
|
|
4.0
|
|
1,290
|
|
47
|
|
3.6
|
|
61
|
|
2
|
|
3.3
|
|
238
|
|
1
|
|
0.4
|
|
|
3,895
|
|
179
|
|
4.6
|
|
1,700
|
|
64
|
|
3.8
|
|
117
|
|
8
|
|
6.8
|
|
265
|
|
1
|
|
0.4
|
Insurance and Wealth
|
|
–
|
|
–
|
|
–
|
|
28
|
|
1
|
|
3.6
|
|
1
|
|
–
|
|
–
|
|
3
|
|
–
|
|
–
|
Central items
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Total
|
|
22,518
|
|
640
|
|
2.8
|
|
7,824
|
|
369
|
|
4.7
|
|
4,132
|
|
192
|
|
4.6
|
|
3,966
|
|
222
|
|
5.6
|
|
|
1
|
These balances exclude the impact of the HBOS and MBNA acquisition
related adjustments. Stage 2 up to date loans are assigned to PD
movement if they also meet other triggers. This represents a change
in presentation for Commercial Banking where these loans were
reported in Other at 31 December 2019.
|
2
|
ECL allowances as a percentage of drawn balances as at 31 December
2019 restated to reflect migration of certain customer
relationships from the SME business within Commercial Banking to
Business Banking within Retail. Stage 2 up to date loans are
assigned to PD movement if they also meet other triggers. This
represents a change in presentation for Commercial Banking where
these loans were reported in Other at 31 December
2019.
|
3
|
Retail Other includes Business Banking, Loans, Overdrafts, Europe
and Retail run-off.
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Dec
|
|
|
20201
|
|
20191
|
|
|
£m
|
|
£m
|
|
|
|
|
|
Mainstream
|
|
226,090
|
|
227,975
|
Buy-to-let
|
|
48,094
|
|
49,086
|
Specialist
|
|
11,543
|
|
12,137
|
Total
|
|
285,727
|
|
289,198
|
|
|
1
|
The
balances include the impact of HBOS related acquisition
adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
Total
|
||||
|
|
Number of cases
|
|
mortgage accounts
|
|
Value of loans1
|
|
mortgage balances
|
||||||||
|
|
30 June
|
|
31 Dec
|
|
30 June
|
|
31 Dec
|
|
30 June
|
|
31 Dec
|
|
30 June
|
|
31 Dec
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
Cases
|
|
Cases
|
|
%
|
|
%
|
|
£m
|
|
£m
|
|
%
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainstream
|
|
26,074
|
|
24,393
|
|
1.4
|
|
1.3
|
|
2,874
|
|
2,619
|
|
1.3
|
|
1.1
|
Buy-to-let
|
|
4,699
|
|
3,863
|
|
1.1
|
|
0.9
|
|
597
|
|
502
|
|
1.2
|
|
1.0
|
Specialist
|
|
6,560
|
|
6,059
|
|
7.5
|
|
6.6
|
|
1,092
|
|
998
|
|
9.4
|
|
8.2
|
Total
|
|
37,333
|
|
34,315
|
|
1.6
|
|
1.4
|
|
4,563
|
|
4,119
|
|
1.6
|
|
1.4
|
|
|
1
|
Value
of loans represents total gross book value of mortgages more than
three months in arrears; the balances exclude the impact of HBOS
related acquisition adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
Mainstream
|
|
Buy-to-let
|
|
Specialist
|
|
Total
|
|
|
%
|
|
%
|
|
%
|
|
%
|
At 30 June 2020
|
|
|
|
|
|
|
|
|
Less than 60%
|
|
53.1
|
|
58.4
|
|
65.6
|
|
54.5
|
60% to 70%
|
|
17.1
|
|
24.6
|
|
17.3
|
|
18.4
|
70% to 80%
|
|
17.2
|
|
14.7
|
|
9.9
|
|
16.4
|
80% to 90%
|
|
11.0
|
|
1.7
|
|
3.3
|
|
9.1
|
90% to 100%
|
|
1.4
|
|
0.2
|
|
1.1
|
|
1.2
|
Greater than 100%
|
|
0.2
|
|
0.4
|
|
2.8
|
|
0.4
|
Total
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
Average loan to value1:
|
|
|
|
|
|
|
|
|
Stock of residential mortgages
|
|
42.8
|
|
50.8
|
|
42.5
|
|
44.0
|
New residential lending
|
|
64.3
|
|
56.8
|
|
n/a
|
|
63.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2019
|
|
|
|
|
|
|
|
|
Less than 60%
|
|
51.8
|
|
54.1
|
|
62.7
|
|
52.7
|
60% to 70%
|
|
16.4
|
|
25.1
|
|
17.5
|
|
18.0
|
70% to 80%
|
|
16.9
|
|
18.0
|
|
11.7
|
|
16.8
|
80% to 90%
|
|
12.0
|
|
2.0
|
|
4.1
|
|
10.0
|
90% to 100%
|
|
2.6
|
|
0.4
|
|
1.2
|
|
2.1
|
Greater than 100%
|
|
0.3
|
|
0.4
|
|
2.8
|
|
0.4
|
Total
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
Average loan to value1:
|
|
|
|
|
|
|
|
|
Stock of residential mortgages
|
|
43.6
|
|
52.3
|
|
44.0
|
|
44.9
|
New residential lending
|
|
65.2
|
|
58.2
|
|
n/a
|
|
64.3
|
|
|
1
|
Average
loan to value is calculated as total gross loans and advances as a
percentage of the indexed total collateral of these loans and
advances; the balances exclude the impact of HBOS related
acquisition adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2020
|
|
|
|
|
|
Drawn
|
|
Undrawn
|
|
Drawn as a % of Group Loans and Advances
|
|
|
|
|
|
|
£bn
|
|
£bn
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Retail non-food
|
|
|
|
|
|
2.4
|
|
1.8
|
|
0.5
|
Automotive dealerships2
|
|
|
|
|
|
2.4
|
|
1.5
|
|
0.5
|
Oil and gas
|
|
|
|
|
|
1.4
|
|
2.7
|
|
0.3
|
Construction
|
|
|
|
|
|
1.3
|
|
1.7
|
|
0.3
|
Hotels
|
|
|
|
|
|
1.9
|
|
0.3
|
|
0.4
|
Passenger transport
|
|
|
|
|
|
1.3
|
|
0.6
|
|
0.3
|
Leisure
|
|
|
|
|
|
0.8
|
|
0.5
|
|
0.2
|
Restaurants and bars
|
|
|
|
|
|
0.8
|
|
0.5
|
|
0.2
|
|
|
1
|
Lending
classified using ONS SIC codes at legal entity level.
|
2
|
Automotive
dealerships includes Black Horse Motor Wholesale lending (within
Retail Division).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Probability-
|
|
|
|
|
|
|
|
Severe
|
|
|
weighted
|
|
Upside
|
|
Base case
|
|
Downside
|
|
Downside
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
Underlying basis
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
1,763
|
|
1,425
|
|
1,581
|
|
1,916
|
|
2,866
|
Other Retail
|
|
2,451
|
|
2,255
|
|
2,430
|
|
2,557
|
|
2,788
|
Commercial
|
|
2,763
|
|
2,416
|
|
2,656
|
|
2,954
|
|
3,553
|
Other
|
|
263
|
|
63
|
|
63
|
|
64
|
|
2,064
|
At 30 June 2020
|
|
7,240
|
|
6,159
|
|
6,730
|
|
7,491
|
|
11,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Probability-
|
|
|
|
|
|
|
|
Severe
|
|
|
weighted
|
|
Upside
|
|
Base case
|
|
Downside
|
|
Downside
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
1,216
|
|
964
|
|
1,111
|
|
1,300
|
|
2,036
|
Other Retail
|
|
1,580
|
|
1,502
|
|
1,551
|
|
1,623
|
|
1,771
|
Commercial
|
|
1,315
|
|
1,211
|
|
1,258
|
|
1,382
|
|
1,597
|
Other
|
|
50
|
|
50
|
|
50
|
|
50
|
|
50
|
At 31 December 2019
|
|
4,161
|
|
3,727
|
|
3,970
|
|
4,355
|
|
5,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net AQR
|
|
|
||||||
|
|
Half-year
|
|
Economic
|
|
Pre economic
|
|
Half-year
|
|
|
|
|
to 30 June
|
|
update and
|
|
update and
|
|
to 30 June
|
|
|
|
|
2020
|
|
restructuring
|
|
restructuring
|
|
2019
|
|
Increase
|
|
|
bps
|
|
bps
|
|
bps
|
|
bps
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
123
|
|
89
|
|
34
|
|
33
|
|
90
|
Mortgages
|
|
42
|
|
40
|
|
2
|
|
(3)
|
|
45
|
Other
|
|
539
|
|
340
|
|
199
|
|
222
|
|
317
|
Commercial Banking
|
|
312
|
|
270
|
|
42
|
|
13
|
|
299
|
Total
|
|
173
|
|
137
|
|
36
|
|
26
|
|
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECL
|
|
|
|
|
|
Income
|
|
ECL
|
|
|
At 30 June
|
|
Net ECL
|
|
Write-offs
|
|
Statement
|
|
At 31 Dec
|
|
|
2020
|
|
increase
|
|
and other
|
|
charge
|
|
2019
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
4,214
|
|
1,418
|
|
(677)
|
|
2,095
|
|
2,796
|
Mortgages
|
|
1,763
|
|
547
|
|
(56)
|
|
603
|
|
1,216
|
Other
|
|
2,451
|
|
871
|
|
(621)
|
|
1,492
|
|
1,580
|
Commercial Banking
|
|
2,763
|
|
1,448
|
|
(71)
|
|
1,519
|
|
1,315
|
Other
|
|
263
|
|
213
|
|
9
|
|
204
|
|
50
|
Total
|
|
7,240
|
|
3,079
|
|
(739)
|
|
3,818
|
|
4,161
|
|
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Dec
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
|
£bn
|
|
£bn
|
|
%
|
Funding requirement
|
|
|
|
|
|
|
Loans and advances to customers1
|
|
440.4
|
|
440.4
|
|
–
|
Loans and advances to banks2
|
|
8.5
|
|
8.1
|
|
5
|
Debt securities at amortised cost
|
|
2.8
|
|
3.9
|
|
(28)
|
Financial assets at fair value through other comprehensive income -
non-LCR eligible3
|
|
0.7
|
|
0.1
|
|
|
Cash and balances at central bank – non-LCR
eligible4
|
|
5.7
|
|
5.7
|
|
–
|
Funded assets
|
|
458.1
|
|
458.2
|
|
–
|
Other assets5
|
|
261.2
|
|
251.7
|
|
4
|
|
|
719.3
|
|
709.9
|
|
1
|
On balance sheet LCR eligible liquid assets
|
|
|
|
|
|
|
Reverse repurchase agreements
|
|
63.7
|
|
56.2
|
|
13
|
Cash and balances at central banks4
|
|
72.4
|
|
49.4
|
|
47
|
Debt securities at amortised cost
|
|
2.8
|
|
1.6
|
|
75
|
Financial assets at fair value through other comprehensive
income
|
|
26.5
|
|
25.0
|
|
6
|
Trading and fair value through profit and loss
|
|
5.2
|
|
4.0
|
|
30
|
Repurchase agreements
|
|
(16.9)
|
|
(12.2)
|
|
39
|
|
|
153.7
|
|
124.0
|
|
24
|
Total Group assets
|
|
873.0
|
|
833.9
|
|
5
|
Less: other liabilities5
|
|
(246.5)
|
|
(234.7)
|
|
5
|
Funding requirement
|
|
626.5
|
|
599.2
|
|
5
|
Funded by
|
|
|
|
|
|
|
Customer deposits6
|
|
441.1
|
|
411.8
|
|
7
|
Wholesale funding7
|
|
125.1
|
|
124.2
|
|
1
|
|
|
566.2
|
|
536.0
|
|
6
|
Term funding schemes8
|
|
11.4
|
|
15.4
|
|
(26)
|
Total equity
|
|
48.9
|
|
47.8
|
|
2
|
Total funding
|
|
626.5
|
|
599.2
|
|
5
|
|
|
1
|
Excludes
reverse repos of £61.1 billion (31 December 2019:
£54.6 billion).
|
2
|
Excludes
£0.1 billion (31 December 2019: £0.1billion) of
loans and advances to banks within the Insurance business and
£2.6 billion (31 December 2019:
£1.6 billion) of reverse repurchase
agreements.
|
3
|
Non-LCR
eligible liquid assets comprise a diversified pool of highly rated
unencumbered collateral (including retained issuance).
|
4
|
Cash
and balances at central banks are combined in the Group’s
balance sheet.
|
5
|
Other
assets and other liabilities primarily include balances in the
Group’s Insurance business and the fair value of derivative
assets and liabilities.
|
6
|
Excludes
repos of £12.3 billion (31 December 2019:
£9.5 billion).
|
7
|
The
Group’s definition of wholesale funding aligns with that used
by other international market participants; including bank
deposits, debt securities in issue and subordinated liabilities. 31
December 2019 has been restated to exclude margins.
|
8
|
Includes
the Bank of England's Term Funding Scheme (TFS) and Term Funding
Scheme with additional incentives for SMEs (TFSME).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value
|
|
|
|
|
Included in
|
|
Repos and
|
|
and other
|
|
|
|
|
funding
|
|
collateral
|
|
accounting
|
|
Balance
|
|
|
analysis
|
|
received
|
|
methods
|
|
sheet
|
At 30 June 2020
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
|
|
|
|
|
|
|
|
Deposits from banks
|
|
6.2
|
|
26.1
|
|
1.8
|
|
34.1
|
Debt securities in issue
|
|
102.9
|
|
–
|
|
(3.0)
|
|
99.9
|
Subordinated liabilities
|
|
16.0
|
|
–
|
|
1.7
|
|
17.7
|
Total wholesale
funding1,2
|
|
125.1
|
|
26.1
|
|
|
|
|
Customer deposits
|
|
441.1
|
|
12.3
|
|
–
|
|
453.4
|
Total
|
|
566.2
|
|
38.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits from banks
|
|
5.5
|
|
22.8
|
|
(0.1)
|
|
28.2
|
Debt securities in issue
|
|
102.1
|
|
–
|
|
(4.4)
|
|
97.7
|
Subordinated liabilities
|
|
16.6
|
|
–
|
|
0.5
|
|
17.1
|
Total wholesale funding1,2
|
|
124.2
|
|
22.8
|
|
|
|
|
Customer deposits
|
|
411.8
|
|
9.5
|
|
–
|
|
421.3
|
Total
|
|
536.0
|
|
32.3
|
|
|
|
|
|
|
1
|
The
Group’s definition of wholesale funding aligns with that used
by other international market participants; including bank
deposits, debt securities and subordinated
liabilities.
|
2
|
Excludes
balances relating to margins of £6.9 billion (31 December
2019: £4.2 billion).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
|
|
|
|
|
|
|
|
Nine
|
|
|
|
|
|
More
|
|
Total
|
|
Total
|
|
|
than
|
|
One to
|
|
Three
|
|
Six to
|
|
months
|
|
One to
|
|
Two to
|
|
than
|
|
at
|
|
at
|
|
|
one
|
|
three
|
|
to six
|
|
nine
|
|
to one
|
|
two
|
|
five
|
|
five
|
|
30 June
|
|
31 Dec
|
|
|
month
|
|
months
|
|
months
|
|
months
|
|
year
|
|
years
|
|
years
|
|
years
|
|
2020
|
|
2019
|
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
Deposit from banks
|
|
3.9
|
|
0.9
|
|
0.6
|
|
0.1
|
|
0.1
|
|
0.2
|
|
0.4
|
|
–
|
|
6.2
|
|
5.5
|
Debt securities in issue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates
of deposit
|
|
3.1
|
|
1.9
|
|
4.4
|
|
1.7
|
|
0.5
|
|
0.2
|
|
–
|
|
–
|
|
11.8
|
|
10.6
|
Commercial
paper
|
|
3.2
|
|
2.5
|
|
1.8
|
|
0.8
|
|
0.3
|
|
–
|
|
–
|
|
–
|
|
8.6
|
|
8.9
|
Medium-term
notes
|
|
–
|
|
1.0
|
|
0.2
|
|
1.1
|
|
1.8
|
|
2.9
|
|
29.1
|
|
15.1
|
|
51.2
|
|
48.0
|
Covered
bonds
|
|
1.4
|
|
–
|
|
1.8
|
|
2.4
|
|
0.9
|
|
4.7
|
|
10.8
|
|
4.8
|
|
26.8
|
|
28.7
|
Securitisation
|
|
0.4
|
|
–
|
|
1.0
|
|
0.2
|
|
0.2
|
|
1.5
|
|
1.2
|
|
–
|
|
4.5
|
|
5.9
|
|
|
8.1
|
|
5.4
|
|
9.2
|
|
6.2
|
|
3.7
|
|
9.3
|
|
41.1
|
|
19.9
|
|
102.9
|
|
102.1
|
Subordinated liabilities
|
|
0.4
|
|
–
|
|
0.8
|
|
–
|
|
0.5
|
|
–
|
|
5.8
|
|
8.5
|
|
16.0
|
|
16.6
|
Total wholesale
funding1,2
|
|
12.4
|
|
6.3
|
|
10.6
|
|
6.3
|
|
4.3
|
|
9.5
|
|
47.3
|
|
28.4
|
|
125.1
|
|
124.2
|
|
|
1
|
The
Group’s definition of wholesale funding aligns with that used
by other international market participants; including bank
deposits, debt securities and subordinated
liabilities.
|
2
|
Excludes
balances relating to margins of £6.9 billion (31 December
2019: £4.2 billion).
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
Sterling
|
|
US Dollar
|
|
Euro
|
|
Currencies
|
|
Total
|
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
|
|
|
|
|
|
|
|
|
|
Medium-term notes
|
|
1.3
|
|
2.8
|
|
2.7
|
|
–
|
|
6.8
|
Covered bonds
|
|
1.0
|
|
–
|
|
–
|
|
–
|
|
1.0
|
Private placements1
|
|
–
|
|
0.1
|
|
0.1
|
|
0.2
|
|
0.4
|
Subordinated liabilities
|
|
–
|
|
–
|
|
0.3
|
|
–
|
|
0.3
|
Total issuance
|
|
2.3
|
|
2.9
|
|
3.1
|
|
0.2
|
|
8.5
|
|
|
1
|
Private
placements include structured bonds.
|
|
|
|
|
|
|
|
|
|
Average1
|
|
Average2
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
|
£bn
|
|
£bn
|
|
%
|
Level 1
|
|
|
|
|
|
|
Cash and central bank reserves
|
|
60.1
|
|
50.9
|
|
18
|
High quality government/MDB/agency bonds3
|
|
73.0
|
|
76.4
|
|
(4)
|
High quality covered bonds
|
|
2.7
|
|
1.9
|
|
42
|
Total
|
|
135.8
|
|
129.2
|
|
5
|
Level 24
|
|
1.7
|
|
1.5
|
|
13
|
Total LCR eligible assets
|
|
137.5
|
|
130.7
|
|
5
|
|
Designated
multilateral development bank (MDB).
|
1
|
Based
on 12 months rolling average to 30 June 2020.
|
2
|
Based
on 12 months rolling average to 31 December 2019.
|
3
|
Designated
multilateral development bank (MDB).
|
4
|
Includes
Level 2A and Level 2B.
|
|
|
|
|
|
|
|
|
|
|
|
Transitional
|
|
Fully loaded
|
||||
|
|
At 30 June
|
|
At 31 Dec
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
Common equity tier 1
|
|
|
|
|
|
|
|
|
Shareholders’ equity per balance sheet
|
|
42,734
|
|
41,697
|
|
42,734
|
|
41,697
|
Adjustment
to retained earnings for foreseeable dividends
|
|
–
|
|
(1,586)
|
|
–
|
|
(1,586)
|
Deconsolidation adjustments1
|
|
2,343
|
|
2,337
|
|
2,343
|
|
2,337
|
Adjustment
for own credit
|
|
28
|
|
26
|
|
28
|
|
26
|
Cash
flow hedging reserve
|
|
(1,962)
|
|
(1,504)
|
|
(1,962)
|
|
(1,504)
|
Other
adjustments
|
|
1,729
|
|
247
|
|
1,729
|
|
247
|
|
|
44,872
|
|
41,217
|
|
44,872
|
|
41,217
|
less: deductions from common equity tier 1
|
|
|
|
|
|
|
|
|
Goodwill and other intangible assets
|
|
(4,321)
|
|
(4,179)
|
|
(4,321)
|
|
(4,179)
|
Prudent valuation adjustment
|
|
(495)
|
|
(509)
|
|
(495)
|
|
(509)
|
Excess of expected losses over impairment provisions and value
adjustments
|
|
(32)
|
|
(243)
|
|
(32)
|
|
(243)
|
Removal of defined benefit pension surplus
|
|
(1,712)
|
|
(531)
|
|
(1,712)
|
|
(531)
|
Securitisation deductions
|
|
(182)
|
|
(185)
|
|
(182)
|
|
(185)
|
Significant investments1
|
|
(4,410)
|
|
(4,626)
|
|
(4,410)
|
|
(4,626)
|
Deferred tax assets
|
|
(3,531)
|
|
(3,200)
|
|
(3,531)
|
|
(3,200)
|
Common equity tier 1 capital
|
|
30,189
|
|
27,744
|
|
30,189
|
|
27,744
|
Additional tier 1
|
|
|
|
|
|
|
|
|
Other equity instruments
|
|
5,881
|
|
5,881
|
|
5,881
|
|
5,881
|
Preference shares and preferred securities2
|
|
4,569
|
|
4,127
|
|
–
|
|
–
|
Transitional limit and other adjustments
|
|
(3,468)
|
|
(2,474)
|
|
–
|
|
–
|
|
|
6,982
|
|
7,534
|
|
5,881
|
|
5,881
|
less: deductions from tier 1
|
|
|
|
|
|
|
|
|
Significant investments1
|
|
(1,140)
|
|
(1,286)
|
|
–
|
|
–
|
Total tier 1 capital
|
|
36,031
|
|
33,992
|
|
36,070
|
|
33,625
|
Tier 2
|
|
|
|
|
|
|
|
|
Other subordinated liabilities2
|
|
13,148
|
|
13,003
|
|
13,148
|
|
13,003
|
Deconsolidation of instruments issued by insurance
entities1
|
|
(1,884)
|
|
(1,796)
|
|
(1,884)
|
|
(1,796)
|
Adjustments
for transitional limit and non-eligible instruments
|
|
2,205
|
|
2,278
|
|
(1,666)
|
|
(2,204)
|
Amortisation
and other adjustments
|
|
(2,413)
|
|
(3,101)
|
|
(2,413)
|
|
(3,101)
|
|
|
11,056
|
|
10,384
|
|
7,185
|
|
5,902
|
less: deductions from tier 2
|
|
|
|
|
|
|
|
|
Significant investments1
|
|
(941)
|
|
(960)
|
|
(2,081)
|
|
(2,246)
|
Total capital resources
|
|
46,146
|
|
43,416
|
|
41,174
|
|
37,281
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets (unaudited)
|
|
207,052
|
|
203,431
|
|
207,052
|
|
203,431
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital ratio
|
|
14.6%
|
|
13.6%
|
|
14.6%
|
|
13.6%
|
Tier 1 capital ratio
|
|
17.4%
|
|
16.7%
|
|
17.4%
|
|
16.5%
|
Total capital ratio
|
|
22.3%
|
|
21.3%
|
|
19.9%
|
|
18.3%
|
|
|
1
|
For
regulatory capital purposes, the Group’s Insurance business
is deconsolidated and replaced by the amount of the Group’s
investment in the business. A part of this amount is deducted from
capital (via ‘significant investments’ in the table
above) and the remaining amount is risk-weighted, forming part of
threshold risk-weighted assets.
|
2
|
Preference
shares, preferred securities and other subordinated liabilities are
categorised as subordinated liabilities in the balance
sheet.
|
|
|
|
|
|
|
|
|
|
|
|
Common
|
|
Additional
|
|
|
|
Total
|
|
|
equity tier 1
|
|
tier 1
|
|
Tier 2
|
|
capital
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
At 31 December 2019
|
|
27,744
|
|
6,248
|
|
9,424
|
|
43,416
|
Banking profit attributable to ordinary
shareholders1
|
|
174
|
|
–
|
|
–
|
|
174
|
Movement in foreseeable dividends2
|
|
1,586
|
|
–
|
|
–
|
|
1,586
|
Dividends received from the Insurance business1
|
|
250
|
|
–
|
|
–
|
|
250
|
IFRS 9 transitional adjustment to retained earnings
|
|
1,542
|
|
–
|
|
–
|
|
1,542
|
Pension movements:
|
|
|
|
|
|
|
|
|
Removal
of defined benefit pension surplus
|
|
(1,181)
|
|
–
|
|
–
|
|
(1,181)
|
Movement
through other comprehensive income
|
|
514
|
|
–
|
|
–
|
|
514
|
Fair value through other comprehensive income reserve
|
|
(171)
|
|
–
|
|
–
|
|
(171)
|
Prudent valuation adjustment
|
|
14
|
|
–
|
|
–
|
|
14
|
Deferred tax asset
|
|
(331)
|
|
–
|
|
–
|
|
(331)
|
Goodwill and other intangible assets
|
|
(142)
|
|
–
|
|
–
|
|
(142)
|
Excess of expected losses over impairment provisions and value
adjustments
|
|
211
|
|
–
|
|
–
|
|
211
|
Significant investments
|
|
216
|
|
146
|
|
19
|
|
381
|
Movements in other equity, subordinated debt and other tier 2
items:
|
|
|
|
|
|
|
|
|
Repurchases,
redemptions and other
|
|
–
|
|
(552)
|
|
672
|
|
120
|
Issuances
|
|
–
|
|
–
|
|
–
|
|
–
|
Other movements
|
|
(237)
|
|
–
|
|
–
|
|
(237)
|
At 30 June 2020
|
|
30,189
|
|
5,842
|
|
10,115
|
|
46,146
|
|
|
1
|
Under
the regulatory framework, profits made by Insurance are removed
from CET1 capital. However, when dividends are paid to the Group by
Insurance these are recognised through CET1 capital.
|
2
|
Reflects
the reversal of the accrual for the Group’s 2019 full year
ordinary dividend which was cancelled during the
period.
|
|
|
|
|
|
|
|
Transitional2
|
||
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2020
|
|
2019
|
|
|
£m
|
|
£m
|
|
|
|
|
|
Total capital resources (transitional basis)
|
|
46,146
|
|
43,416
|
Ineligible AT1 and tier 2 instruments1
|
|
(553)
|
|
(874)
|
Amortised portion of eligible tier 2 instruments issued by Lloyds
Banking Group plc
|
|
115
|
|
24
|
Senior unsecured securities issued by Lloyds Banking Group
plc
|
|
30,567
|
|
23,554
|
Total MREL
resources2
|
|
76,275
|
|
66,120
|
|
|
|
|
|
Risk-weighted assets
|
|
207,052
|
|
203,431
|
|
|
|
|
|
MREL ratio
|
|
36.8%
|
|
32.5%
|
|
|
|
|
|
Leverage exposure measure
|
|
665,789
|
|
654,387
|
|
|
|
|
|
MREL leverage ratio
|
|
11.5%
|
|
10.1%
|
|
|
1
|
Instruments
with less than or equal to one year to maturity or governed under
non-EEA law without a contractual bail-in clause.
|
2
|
Until
2022, externally issued regulatory capital in operating entities
can count towards the Group’s MREL to the extent that such
capital would count towards the Group's consolidated capital
resources.
|
|
|
|
|
|
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2020
|
|
2019
|
|
|
£m
|
|
£m
|
|
|
|
|
|
Foundation Internal Ratings Based (IRB) Approach
|
|
54,058
|
|
53,842
|
Retail IRB Approach
|
|
64,589
|
|
63,208
|
Other IRB Approach
|
|
19,109
|
|
18,544
|
IRB Approach
|
|
137,756
|
|
135,594
|
Standardised (STA) Approach
|
|
24,046
|
|
24,420
|
Credit risk
|
|
161,802
|
|
160,014
|
Counterparty credit risk
|
|
5,675
|
|
5,083
|
Contributions to the default fund of a central
counterparty
|
|
235
|
|
210
|
Credit valuation adjustment risk
|
|
629
|
|
584
|
Operational risk
|
|
25,437
|
|
25,482
|
Market risk
|
|
1,953
|
|
1,790
|
Underlying risk-weighted assets
|
|
195,731
|
|
193,163
|
Threshold risk-weighted assets1
|
|
11,321
|
|
10,268
|
Total risk-weighted assets
|
|
207,052
|
|
203,431
|
|
|
1
|
Threshold
risk-weighted assets reflect the element of significant investments
and deferred tax assets that are permitted to be risk-weighted
instead of being deducted from CET1 capital. Significant
investments primarily arise from investment in the Group’s
Insurance business.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit risk
|
|
Credit risk
|
|
Credit risk
|
|
Counterparty
|
|
Market
|
|
Operational
|
|
|
|
|
IRB
|
|
STA
|
|
total1
|
|
credit risk2
|
|
risk
|
|
risk
|
|
Total
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-weighted assets at 31 December 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
203,431
|
Less threshold risk-weighted assets3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,268)
|
Risk-weighted assets as at 31 December 2019
|
|
135,594
|
|
24,420
|
|
160,014
|
|
5,877
|
|
1,790
|
|
25,482
|
|
193,163
|
Asset size
|
|
(2,488)
|
|
(1,227)
|
|
(3,715)
|
|
628
|
|
–
|
|
–
|
|
(3,087)
|
Asset quality
|
|
3,881
|
|
212
|
|
4,093
|
|
(105)
|
|
–
|
|
–
|
|
3,988
|
Model updates
|
|
–
|
|
–
|
|
–
|
|
–
|
|
307
|
|
–
|
|
307
|
Methodology and policy
|
|
(12)
|
|
445
|
|
433
|
|
–
|
|
(277)
|
|
–
|
|
156
|
Acquisitions and disposals
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Movements in risk levels (market risk only)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
133
|
|
–
|
|
133
|
Foreign exchange movements
|
|
781
|
|
196
|
|
977
|
|
139
|
|
–
|
|
–
|
|
1,116
|
Other
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(45)
|
|
(45)
|
Risk-weighted assets as at 30 June 2020
|
|
137,756
|
|
24,046
|
|
161,802
|
|
6,539
|
|
1,953
|
|
25,437
|
|
195,731
|
Threshold risk-weighted assets3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,321
|
Risk-weighted assets as at 30 June 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
207,052
|
|
|
1
|
Threshold
risk-weighted assets reflect the element of significant investments
and deferred tax assets that are permitted to be risk-weighted
instead of being deducted from CET1 capital. Significant
investments primarily arise from investments in the Group’s
Insurance business.
|
2
|
Credit
risk includes securitisation risk-weighted assets.
|
3
|
Counterparty
credit risk includes movements in contributions to the default fund
of central counterparties and movements in credit valuation
adjustment risk.
|
|
|
|
|
|
|
|
Fully loaded
|
||
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2020
|
|
2019
|
|
|
£m
|
|
£m
|
Total tier 1 capital for leverage ratio
|
|
|
|
|
Common equity tier 1 capital
|
|
30,189
|
|
27,744
|
Additional tier 1 capital
|
|
5,881
|
|
5,881
|
Total tier 1 capital
|
|
36,070
|
|
33,625
|
|
|
|
|
|
Exposure measure
|
|
|
|
|
Statutory balance sheet assets
|
|
|
|
|
Derivative financial instruments
|
|
32,978
|
|
26,369
|
Securities financing transactions
|
|
75,287
|
|
67,424
|
Loans and advances and other assets
|
|
764,729
|
|
740,100
|
Total assets
|
|
872,994
|
|
833,893
|
|
|
|
|
|
Qualifying central bank claims
|
|
(73,098)
|
|
(49,590)
|
|
|
|
|
|
Deconsolidation adjustments1
|
|
|
|
|
Derivative financial instruments
|
|
(1,681)
|
|
(1,293)
|
Securities financing transactions
|
|
–
|
|
(334)
|
Loans and advances and other assets
|
|
(159,667)
|
|
(167,410)
|
Total deconsolidation adjustments
|
|
(161,348)
|
|
(169,037)
|
|
|
|
|
|
Derivatives adjustments
|
|
|
|
|
Adjustments for regulatory netting
|
|
(13,447)
|
|
(11,298)
|
Adjustments for cash collateral
|
|
(14,423)
|
|
(12,551)
|
Net written credit protection
|
|
462
|
|
458
|
Regulatory potential future exposure
|
|
16,201
|
|
16,337
|
Total derivatives adjustments
|
|
(11,207)
|
|
(7,054)
|
|
|
|
|
|
Securities financing transactions adjustments
|
|
2,190
|
|
1,164
|
Off-balance sheet items
|
|
53,541
|
|
53,191
|
Regulatory deductions and other
adjustments5
|
|
(17,283)
|
|
(8,180)
|
Total exposure measure2
|
|
665,789
|
|
654,387
|
Average exposure
measure3
|
|
674,641
|
|
667,433
|
|
|
|
|
|
UK Leverage ratio2
|
|
5.4%
|
|
5.1%
|
Average UK leverage ratio3
|
|
5.3%
|
|
5.0%
|
|
|
|
|
|
CRD IV exposure
measure4
|
|
738,887
|
|
703,977
|
CRD IV leverage ratio4
|
|
4.9%
|
|
4.8%
|
1
|
Deconsolidation
adjustments relate to the deconsolidation of certain Group entities
that fall outside the scope of the Group’s regulatory capital
consolidation, being primarily the Group’s Insurance
business.
|
2
|
Calculated
in accordance with the UK Leverage Ratio Framework which requires
qualifying central bank claims to be excluded from the leverage
exposure measure.
|
3
|
The
average UK leverage ratio is based on the average of the month end
tier 1 capital position and average exposure measure over the
quarter (1 April 2020 to 30 June 2020). The average of 5.3 per cent
compares to 5.3 per cent at the start and 5.4 per cent at the end
of the quarter.
|
4
|
Calculated
in accordance with CRD IV rules which include central bank claims
within the leverage exposure measure.
|
5
|
Includes
adjustments to exclude lending under the UK Government’s
Bounce Back Loan Scheme (BBLS) and the accelerated implementation
for the netting of regular-way purchases and sales awaiting
settlement in accordance with CRR Article 500d.
|
|
|
|
|
|
|
|
IFRS 9 full impact
|
||
|
|
At 30 June
|
|
At 31 Dec
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Common equity tier 1 (£m)
|
|
27,583
|
|
27,002
|
Transitional tier 1 (£m)
|
|
33,425
|
|
33,249
|
Transitional total capital (£m)
|
|
44,691
|
|
43,153
|
Total risk-weighted assets (£m)
|
|
205,595
|
|
203,083
|
Common equity tier 1 ratio (%)
|
|
13.4%
|
|
13.3%
|
Transitional tier 1 ratio (%)
|
|
16.3%
|
|
16.4%
|
Transitional total capital ratio (%)
|
|
21.7%
|
|
21.2%
|
UK leverage ratio exposure measure (£m)
|
|
663,181
|
|
653,643
|
UK leverage ratio (%)
|
|
5.0%
|
|
5.0%
|