Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2022 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | SANTANDER UK PLC |
Entity Central Index Key | 0001087711 |
Current Fiscal Year End Date | --12-31 |
Consolidated Income Statement U
Consolidated Income Statement Unaudited - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Profit (loss) [abstract] | ||
Interest and similar income | £ 2,743 | £ 2,355 |
Interest expense and similar charges | (623) | (450) |
Net interest income | 2,120 | 1,905 |
Fee and commission income | 377 | 305 |
Fee and commission expense | (209) | (154) |
Net fee and commission income | 168 | 151 |
Other operating income | 102 | 135 |
Total operating income | 2,390 | 2,191 |
Operating expenses before credit impairment (losses)/write-backs, provisions and charges | (1,172) | (1,328) |
Credit impairment (losses)/write-backs | (118) | 70 |
Provisions for other liabilities and charges | (118) | (190) |
Total operating credit impairment (losses)/write-backs, provisions and charges | (236) | (120) |
Profit from continuing operations before tax | 982 | 743 |
Tax on profit from continuing operations | (232) | (205) |
Profit from continuing operations after tax | 750 | 538 |
Profit from discontinued operations after tax | 0 | 24 |
Profit after tax | 750 | 562 |
Attributable to: | ||
Equity holders of the parent | 750 | 545 |
Non-controlling interests | 0 | 17 |
Profit after tax | £ 750 | £ 562 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Unaudited - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of comprehensive income [abstract] | ||
Profit after tax | £ 750 | £ 562 |
Movement in fair value reserve (debt instruments): | ||
Change in fair value | (171) | (62) |
Income statement transfers | 162 | 59 |
Taxation | 4 | (1) |
Other comprehensive income, fair value reserve (debt instruments) | (5) | (4) |
Cash flow hedges: | ||
Effective portion of changes in fair value | 726 | (618) |
Income statement transfers | (1,807) | 377 |
Taxation | 299 | 41 |
Other comprehensive income, cash flow hedges, total | (782) | (200) |
Net other comprehensive expense that may be reclassified to profit or loss subsequently | (787) | (204) |
Pension remeasurement: | ||
Change in fair value | 326 | 745 |
Taxation | (26) | (248) |
Pension remeasurement, total | 300 | 497 |
Own credit adjustment: | ||
Change in fair value | 29 | 0 |
Taxation | (9) | 0 |
Own credit adjustment, total | 20 | 0 |
Net other comprehensive income that will not be reclassified to profit or loss subsequently | 320 | 497 |
Total other comprehensive income/(expense) net of tax | (467) | 293 |
Total comprehensive income | 283 | 855 |
Attributable to: | ||
Equity holders of the parent | 283 | 837 |
Non-controlling interests | 0 | 18 |
Total comprehensive income | £ 283 | £ 855 |
Consolidated Balance Sheet Unau
Consolidated Balance Sheet Unaudited - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and balances at central banks | £ 43,390 | £ 48,139 |
Financial assets at fair value through profit or loss: | ||
Derivative financial instruments | 2,271 | 1,681 |
Other financial assets at fair value through profit or loss | 155 | 185 |
Financial assets at amortised cost: | ||
Loans and advances to customers | 217,012 | 210,094 |
Loans and advances to banks | 793 | 1,169 |
Repurchase agreements – non trading | 8,793 | 12,683 |
Other financial assets at amortised cost | 156 | 506 |
Financial assets at fair value through other comprehensive income | 4,913 | 5,851 |
Interests in other entities | 234 | 201 |
Intangible assets | 1,538 | 1,545 |
Property, plant and equipment | 1,490 | 1,548 |
Current tax assets | 430 | 347 |
Retirement benefit assets | 2,011 | 1,572 |
Other assets | 1,082 | 1,577 |
Assets held for sale | 49 | 0 |
Total assets | 284,317 | 287,098 |
Financial liabilities at fair value through profit or loss: | ||
Derivative financial instruments | 720 | 777 |
Other financial liabilities at fair value through profit or loss | 827 | 803 |
Financial liabilities at amortised cost: | ||
Deposits by customers | 189,729 | 192,926 |
Deposits by banks | 35,182 | 33,855 |
Repurchase agreements – non trading | 6,910 | 11,718 |
Debt securities in issue | 29,521 | 25,520 |
Subordinated liabilities | 2,335 | 2,228 |
Other liabilities | 2,636 | 2,189 |
Provisions | 363 | 364 |
Deferred tax liabilities | 392 | 579 |
Retirement benefit obligations | 29 | 37 |
Total liabilities | 268,644 | 270,996 |
Equity | ||
Share capital | 3,105 | 3,105 |
Share premium | 5,620 | 5,620 |
Other equity instruments | 1,956 | 2,191 |
Retained earnings | 5,646 | 5,053 |
Other reserves | (654) | 133 |
Total shareholders’ equity | 15,673 | 16,102 |
Total equity | 15,673 | 16,102 |
Total liabilities and equity | £ 284,317 | £ 287,098 |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statement Unaudited - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Profit after tax | £ 982 | £ 776 |
Adjustments for: | ||
Non-cash items included in profit | 827 | 431 |
Change in operating assets | (4,126) | 5,450 |
Change in operating liabilities | (7,263) | (29) |
Corporation taxes paid | (223) | (153) |
Effects of exchange rate differences | 878 | (534) |
Net cash flows from operating activities | (8,925) | 5,941 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment and intangible assets | (263) | (350) |
Proceeds from sale of property, plant and equipment and intangible assets | 103 | 272 |
Purchase of financial assets at amortised cost and financial assets at FVOCI | (1,146) | (1,016) |
Proceeds from sale and redemption of financial assets at amortised cost and financial assets at FVOCI | 2,421 | 3,789 |
Net cash flows from investing activities | 1,115 | 2,695 |
Cash flows from financing activities | ||
Issue of other equity instruments | 750 | 210 |
Issue of debt securities and subordinated notes | 4,116 | 36 |
Issuance costs of debt securities and subordinated notes | (8) | (3) |
Repayment of debt securities and subordinated notes | (1,977) | (8,031) |
Repurchase of other equity instruments | (985) | (210) |
Dividends paid on ordinary shares | (389) | 0 |
Dividends paid on preference shares and other equity instruments | 88 | 83 |
Principal elements of lease payments | (33) | (13) |
Net cash flows from financing activities | 1,386 | (8,094) |
Change in cash and cash equivalents | (6,424) | 542 |
Cash and cash equivalents at beginning of the period | 49,254 | 46,696 |
Effects of exchange rate changes on cash and cash equivalents | 37 | (10) |
Cash and cash equivalents at the end of the period | 42,867 | 47,228 |
Cash and cash equivalents consist of: | ||
Cash and balances at central banks | 43,390 | 39,021 |
Less: restricted balances | (2,137) | (1,677) |
Cash and bank balances at central banks less regulatory minimum cash balances | 41,253 | 37,344 |
Other cash equivalents: Loans and advances to banks - Non trading | 733 | 1,437 |
Other cash equivalents: Reverse repurchase agreements | 881 | 8,447 |
Cash and cash equivalents at the end of the period | £ 42,867 | £ 47,228 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity Unaudited - GBP (£) £ in Millions | Total | Total | Share capital | Share premium | Other equity instruments | Fair value | Cash flow hedging | Currency translation | Retained earnings | Non-controlling interests |
Beginning balance at Dec. 31, 2020 | £ 15,936 | £ 15,774 | £ 3,105 | £ 5,620 | £ 2,191 | £ 28 | £ 481 | £ 1 | £ 4,348 | £ 162 |
Profit for the year | 562 | 545 | 545 | 17 | ||||||
Other comprehensive (expense)/income, net of tax: | ||||||||||
– Fair value reserve (debt instruments) | (4) | (4) | (4) | |||||||
– Cash flow hedges | (200) | (200) | (200) | |||||||
– Pension remeasurement | 497 | 496 | 496 | 1 | ||||||
– Own credit adjustment | 0 | |||||||||
Total comprehensive income | 855 | 837 | (4) | (200) | 0 | 1,041 | 18 | |||
Issue of other equity instruments | 210 | 210 | 210 | |||||||
Repurchase of other equity instruments | (210) | (210) | (210) | |||||||
Dividends on preference shares and other equity instruments | (83) | (83) | (83) | |||||||
Ending balance at Jun. 30, 2021 | 16,708 | 16,528 | 3,105 | 5,620 | 2,191 | 24 | 281 | 1 | 5,306 | 180 |
Beginning balance at Dec. 31, 2021 | 16,102 | 16,102 | 3,105 | 5,620 | 2,191 | 25 | 107 | 1 | 5,053 | 0 |
Profit for the year | 750 | 750 | 750 | |||||||
Other comprehensive (expense)/income, net of tax: | ||||||||||
– Fair value reserve (debt instruments) | (5) | (5) | (5) | |||||||
– Cash flow hedges | (782) | (782) | (782) | |||||||
– Pension remeasurement | 300 | 300 | 300 | |||||||
– Own credit adjustment | 20 | 20 | 20 | |||||||
Total comprehensive income | 283 | 283 | (5) | (782) | 0 | 1,070 | 0 | |||
Issue of other equity instruments | 750 | 750 | 750 | |||||||
Repurchase of other equity instruments | (985) | (985) | (985) | |||||||
Dividends on ordinary shares | (389) | (389) | (389) | |||||||
Dividends on preference shares and other equity instruments | (88) | (88) | (88) | |||||||
Ending balance at Jun. 30, 2022 | £ 15,673 | £ 15,673 | £ 3,105 | £ 5,620 | £ 1,956 | £ 20 | £ (675) | £ 1 | £ 5,646 | £ 0 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Accounting Policies | 1. ACCOUNTING POLICIES The financial information in these Condensed Consolidated Interim Financial Statements is unaudited and does not constitute statutory accounts as defined in section 434 of the UK Companies Act 2006. These Condensed Consolidated Interim Financial Statements were approved by the Board of Directors on 11 August 2022. Statutory accounts for the year ended 31 December 2021 have been delivered to the Registrar of Companies. The Condensed Consolidated Interim Financial Statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of operations for the interim period. All such adjustments to the financial information are of a normal, recurring nature. Because the results from common banking activities are so closely related and responsive to changes in market conditions, the results for any interim period are not necessarily indicative of the results that can be expected for the year. The Condensed Consolidated Interim Financial Statements have been prepared in accordance with International Accounting Standard IAS 34 ‘Interim Financial Reporting', as issued by the International Accounting Standards Board (IASB) and adopted in the UK, and the Disclosure Guidance and Transparency Rules sourcebook of the UK's Financial Conduct Authority (FCA). They do not include all the information and disclosures normally required for full annual financial statements and should be read in conjunction with the Consolidated Financial Statements of Santander UK plc (the Company) and its subsidiaries (collectively Santander UK or the Santander UK group) for the year ended 31 December 2021 which were prepared in accordance with UK-adopted International Accounting Standards (IAS). Those consolidated financial statements were also prepared in accordance with IFRSs as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee, as there were no applicable differences from IFRSs as issued by the IASB for the periods presented. Except as noted below, the same accounting policies, presentation and methods of computation are followed in these Condensed Consolidated Interim Financial Statements as were applied in the presentation of Santander UK’s 2021 Annual Report. Property, plant and equipment During H122, Santander UK expanded its accounting policy for 'Property, plant and equipment' to separately address properties which it no longer occupies, and to identify such properties as ‘Investment property’. This change had no financial impact on these Condensed Consolidated Interim Financial Statements. Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the companies in the Santander UK group, is classified as investment property and included in property, plant and equipment. Investment property is accounted for in the same manner as owner-occupied property. In addition, rental income from investment property is recognised as other revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. Cash and cash equivalents Following a decision by the IFRS Interpretations Committee in April 2022, Santander UK updated its accounting policy to exclude from cash and cash equivalents Reserves Collateralisation Accounts (RCAs) balances held at the BoE relating to Santander UK’s participation in certain payments schemes. Instead, RCAs balances are classified as restricted balances and included within 'change in operating assets' in the cash flow statement. Prior periods have been restated. For the purposes of the cash flow statement, cash and cash equivalents comprise balances with less than three months maturity from the date of acquisition, including cash and non-restricted balances with central banks, treasury bills and other eligible bills, loans and advances to banks and short-term investments in securities. Balances with central banks represent amounts held at the BoE as part of the Santander UK group’s liquidity management activities. It includes certain minimum cash ratio deposits held for regulatory purposes and reserves collateralised accounts in respect of Santander UK’s participation in certain payments schemes which are required to be maintained with the BoE and are restricted balances. Non-current assets held for sale Non-current assets (or disposal groups) are classified as held for sale when their carrying amount is to be recovered principally through a sale transaction rather than continuing use. In order to be classified as held for sale, the asset must be available for immediate sale in its present condition subject only to terms that are usual and customary, and the sale must be highly probable. Non-current assets (or disposal groups) held for sale are measured at the lower of carrying amount and fair value less cost to sell, with the exception of financial instruments which remain governed by the requirements of IFRS 9 and are held at their IFRS 9 carrying value. Future accounting developments Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2 In February 2021, the IASB amended IAS 1 Presentation of Financial Statements to require entities to disclose their material rather than their significant accounting policies. To support this amendment, the IASB also amended IFRS Practice Statement 2 Making Materiality Judgements to provide guidance on how to apply the concept of materiality. The amendments are effective for annual periods beginning on or after 1 January 2023 with earlier application permitted. The amendments are awaiting UK endorsement. The amendments are expected to streamline and improve our accounting policy disclosures by making them more specific to the Santander UK group. Going concern In light of the continuing economic uncertainty, the Directors updated their going concern assessment in preparing these Condensed Consolidated Interim Financial Statements. After making enquiries, the Directors have a reasonable expectation that Santander UK has adequate resources to continue in operational existence for at least twelve months from the date of this report and, therefore, having reassessed the principal risks and uncertainties, the Directors consider it appropriate for the Condensed Consolidated Interim Financial Statements to be prepared on a going concern basis. In making their going concern assessment in connection with preparing the Condensed Consolidated Interim Financial Statements, the Directors considered a wide range of information that included Santander UK’s long-term business and strategic plans, forecasts and projections, estimated capital, funding and liquidity requirements, contingent liabilities and the reasonably possible changes in trading performance arising from potential economic, market and product developments. CRITICAL JUDGEMENTS AND ACCOUNTING ESTIMATES The preparation of the Condensed Consolidated Interim Financial Statements requires management to make judgements and accounting estimates that affect the reported amount of assets and liabilities at the reporting date and the reported amount of income and expenses during the reporting period. Management evaluates its judgements and accounting estimates, which are based on historical experience and on various other factors that are believed to be reasonable under the circumstances, on an ongoing basis. Actual results may differ from these accounting estimates under different assumptions or conditions. In preparing the Condensed Consolidated Interim Financial Statements, no significant judgements were made in applying the accounting policies, other than those involving estimations about credit impairment losses, provisions and contingent liabilities, pensions and goodwill. There has been no change in the inherent sensitivity of the areas of judgement in the period. Management have considered the impact of developments in principal risks and uncertainties, as set out in the Risk review, on critical judgements and accounting estimates. a) Credit impairment losses Key judgements – Determining an appropriate definition of default – Establishing the criteria for a significant increase in credit risk (SICR) and, for corporate borrowers, internal credit risk rating – Determining appropriate post model adjustments – Assessing individual corporate Stage 3 exposures Key estimates – Forward-looking multiple economic scenario assumptions – Probability weights assigned to multiple economic scenarios For more on each of these key judgements and estimates, see 'Critical judgements and accounting estimates applied in calculating ECL' in the ‘Credit risk – credit risk management’ section of the Risk review in the 2021 Annual Report. Sensitivity of ECL allowance For detailed disclosures, see 'Sensitivity of ECL allowance' in the ‘Credit risk – credit risk management’ section of the Risk review. b) Provisions and contingent liabilities Key judgements – Determining whether a present obligation exists – Assessing the likely outcome of future legal decisions Key estimates – Probability, timing, nature and amount of any outflows that may arise from past events Included in Litigation and other regulatory provisions in Note 24 are amounts in respect of management’s best estimates of liability relating to a legal dispute regarding allocation of responsibility for a specific PPI portfolio of complaints, and Plevin related litigation. Note 26 provides disclosure relating to ongoing factual issues and reviews that could impact the timing and amount of any outflows. Note 26 includes disclosure relating to an investigation in relation to the historical involvement of Santander UK plc, Santander Financial Services plc and Cater Allen International Limited (all subsidiaries of Santander UK Group Holdings plc) in German dividend tax arbitrage transactions, as well as an FCA civil regulatory investigation which commenced in July 2017 into our compliance with the Money Laundering Regulations 2007 and potential breaches of FCA principles and rules relating to anti-money laundering and financial crime systems and controls. These judgements are based on the specific facts available and often require specialist professional advice. There can be a wide range of possible outcomes and uncertainties, particularly in relation to legal actions, and regulatory and consumer credit matters. As a result, it is often not possible to make reliable estimates of the likelihood and amount of any potential outflows, or to calculate any resulting sensitivities. For more on these key judgements and estimates, see Notes 24 and 26. c) Pensions Key judgements – Setting the criteria for constructing the corporate bond yield curve used to determine the discount rate – Determining the methodology for setting the inflation assumption Key estimates – Discount rate applied to future cash flows – Rate of price inflation – Expected lifetime of the schemes' members – Valuation of pension fund assets whose values are not based on market observable data For more on each of these key judgements and estimates, see Note 25. Sensitivity of defined benefit pension scheme estimates For detailed disclosures, see ‘Actuarial assumption sensitivities’ in Note 25. The Scheme was invested in certain assets whose values are not based on market observable data, such as investments in private equity funds and property. Due diligence has been conducted to ensure the values obtained in respect of these assets are appropriate and represent fair value. Given the nature of these investments, we are unable to prepare sensitivities on how their values could vary as market conditions or other variables change. d) Goodwill Key judgements: – Determining the basis of goodwill impairment calculation assumptions, including management's planning assumptions considering internal capital allocations needed to support Santander UK's strategy, current market conditions and the macro-economic outlook. Key estimates: – Forecast cash flows for cash generating units, including estimated allocations of regulatory capital – Growth rate beyond initial cash flow projections – Discount rates which factor in risk-free rates and applicable risk premiums All of these variables are subject to fluctuations in external market rates and economic conditions beyond management’s control For more on each of these key judgements and estimates, see Note 16. Sensitivity of goodwill |
Segments
Segments | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of operating segments [abstract] | |
Segments | 2. SEGMENTS Santander UK’s principal activity is financial services, mainly in the UK. The business is managed and reported on the basis of four segments, which are strategic business units that offer different products and services, have different customers and require different technology and marketing strategies. As reflected in the 2021 Annual Report, the segmental basis of presentation in these Condensed Consolidated Interim Financial Statements changed following a management review of our structure in Q4 2021. Previously, Consumer Finance was managed as part of Retail Banking. Santander UK plc transferred a significant part of its Corporate & Investment Banking business to the London branch of Banco Santander SA under a Part VII banking business transfer scheme, which completed on 11 October 2021. The residual parts of the Corporate & Investment Banking business have been wound down or transferred to other segments. For the periods prior to its sale, the Corporate & Investment Banking business met the requirements for presentation as discontinued operations. For more details, see Note 33. Results by segment For the Half Year to Retail Banking Consumer Finance Corporate & Commercial Banking Corporate Centre Total 30 June 2022 £m £m £m £m £m Net interest income 1,784 92 242 2 2,120 Non-interest income 116 101 69 (16) 270 Total operating income 1,900 193 311 (14) 2,390 Operating expenses before credit impairment (losses)/write-backs, provisions and charges (831) (73) (181) (87) (1,172) Credit impairment (losses)/write-backs (126) (13) 19 2 (118) Provisions for other liabilities and charges (101) — (2) (15) (118) Total operating credit impairment (losses)/write-backs, provisions and charges (227) (13) 17 (13) (236) Profit/(loss) from continuing operations before tax 842 107 147 (114) 982 Revenue from external customers 2,033 243 318 (204) 2,390 Inter-segment revenue (133) (50) (7) 190 — Total operating income 1,900 193 311 (14) 2,390 Revenue from external customers includes the following fee and commission income disaggregated by income type: (1) – Current account and debit card fees 218 — 29 — 247 – Insurance, protection and investments 31 — — — 31 – Credit cards 46 — — — 46 – Non-banking and other fees (2) 4 8 36 5 53 Total fee and commission income 299 8 65 5 377 Fee and commission expense (191) — (11) (7) (209) Net fee and commission income/(expense) 108 8 54 (2) 168 Customer loans 189,318 5,129 17,358 1,711 213,516 Total assets (3) 196,505 9,652 17,358 60,802 284,317 Of which assets held for sale — — — 49 49 Customer deposits 154,759 — 25,305 3,940 184,004 Total liabilities 155,199 1,153 25,326 86,966 268,644 (1) The disaggregation of fees and commission income as shown above is not included in reports provided to the chief operating decision maker but is provided to show the split by reportable segments. (2) Non-banking and other fees include mortgages (except mortgage account fees), consumer finance, commitment commission, asset finance, invoice finance and trade finance. (3) Includes customer loans, net of credit impairment loss allowances. Retail Banking (4) Consumer Finance (4) Corporate & Commercial Banking Corporate & Investment Banking Corporate Centre Total 30 June 2021 £m £m £m £m £m £m Net interest income/(expense) 1,602 135 202 — (34) 1,905 Non-interest income 109 77 51 — 49 286 Total operating income 1,711 212 253 — 15 2,191 Operating expenses before credit impairment (losses)/write-backs, provisions and charges (858) (90) (181) — (199) (1,328) Credit impairment (losses)/write-backs 28 20 23 — (1) 70 Provisions for other liabilities and charges (67) — (5) — (118) (190) Total operating credit impairment (losses)/write-backs, provisions and charges (39) 20 18 — (119) (120) Profit/(loss) from continuing operations before tax 814 142 90 — (303) 743 Revenue from external customers 1,939 255 272 — (275) 2,191 Inter-segment revenue (228) (43) (19) — 290 — Total operating income/(expense) 1,711 212 253 — 15 2,191 Revenue from external customers includes the following fee and commission income disaggregated by income type: (1) – Current account and debit card fees 172 — 23 — — 195 – Insurance, protection and investments 32 — — — — 32 – Credit cards 37 — — — — 37 – Non-banking and other fees (2) 1 4 29 — 7 41 Total fee and commission income 242 4 52 — 7 305 Fee and commission expense (136) — (10) — (8) (154) Net fee and commission income 106 4 42 — (1) 151 31 December 2021 Customer loans 183,023 4,984 16,997 — 2,284 207,288 Total assets (3) 190,629 8,873 16,997 — 70,599 287,098 Customer deposits 156,991 — 25,597 — 3,627 186,215 Total liabilities 157,622 1,173 25,613 — 86,588 270,996 (1) The disaggregation of fees and commission income as shown above is not included in reports provided to the chief operating decision maker but is provided to show the split by reportable segments. (2) Non-banking and other fees include mortgages (except mortgage account fees), consumer finance, commitment commission, asset finance, invoice finance and trade finance. (3) Includes customer loans, net of credit impairment loss allowances. (4) Restated to reflect the resegmentation of the Retail Banking segment into the Retail Banking and Consumer Finance segments described above, and a refinement of our fee and commission income disaggregation. Geographical information is not provided, as substantially all of Santander UK’s activities are in the UK. |
Other Operating Income
Other Operating Income | 6 Months Ended |
Jun. 30, 2022 | |
Net Trading And Other Income [abstract] | |
Other Operating Income | 3. OTHER OPERATING INCOME In H122, the Santander UK group repurchased certain debt securities and subordinated liabilities as part of ongoing liability management exercises, resulting in a loss of £1m. In H121, the Santander UK group repurchased certain debt securities as part of ongoing liability management exercises, resulting in a loss of £27m. |
Operating Expenses Before Credi
Operating Expenses Before Credit Impairment Losses, Provisions and Charges | 6 Months Ended |
Jun. 30, 2022 | |
Expenses by nature [abstract] | |
Operating Expenses Before Credit Impairment Losses, Provisions and Charges | 4. OPERATING EXPENSES BEFORE CREDIT IMPAIRMENT LOSSES, PROVISIONS AND CHARGES For the Half Year to 30 June 2022 30 June 2021 £m £m Staff costs 556 577 Other administration expenses 458 431 Depreciation, amortisation and impairment 158 320 1,172 1,328 In H122, 'Depreciation, amortisation and impairment' included an impairment charge of £10m ( H121 : £105m) associated with branch and head office site closures as part of the transformation programme. For more, see Note 17. |
Credit Impairment Losses and Pr
Credit Impairment Losses and Provisions | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Credit Impairment Loss And Provisions [Abstract] | |
Credit Impairment Losses and Provisions | 5. CREDIT IMPAIRMENT LOSSES AND PROVISIONS For the Half Year to 30 June 2022 30 June 2021 £m £m Credit impairment losses/(write-backs): Loans and advances to customers 114 (33) Recoveries of loans and advances, net of collection costs (6) (13) Off-balance sheet exposures (See Note 24) 10 (24) 118 (70) Provisions for other liabilities and charges (excluding off-balance sheet credit exposures) (See Note 24) 121 191 Releases for residual value and voluntary termination (3) (1) 118 190 236 120 In H122 and H121 there were no material credit impairment losses on loans and advances to banks, non-trading reverse repurchase agreements, other financial assets at amortised cost and financial assets at FVOCI. |
Taxation
Taxation | 6 Months Ended |
Jun. 30, 2022 | |
Major components of tax expense (income) [abstract] | |
Taxation | 6. TAXATION The Santander UK group’s effective tax rate for H122 was 23.6% (H121: 27.6%). The tax on profit from continuing operations before tax differs from the theoretical amount that would arise using the basic corporation tax rate as follows: For the Half Year to 30 June 2022 30 June 2021 £m £m Profit from continuing operations before tax 982 743 Tax calculated at a tax rate of 19% (H121: 19%) 187 141 Bank surcharge on profits 70 49 Non-deductible preference dividends paid 5 6 Non-deductible UK Bank Levy 8 14 Non-deductible conduct remediation, fines and penalties (1) — Other non-deductible costs and non-taxable income 8 14 Effect of change in tax rate on deferred tax provision (23) 13 Tax relief on dividends in respect of other equity instruments (22) (32) Tax on profit from continuing operations 232 205 Interim period corporation tax is accrued based on the estimated average annual effective corporation tax for the year of 26.0% (H121: 25.8% ) before including both the impact of the changes in the standard rate of corporation tax (substantively enacted in 2021) and the bank surcharge (substantively enacted in 2022). See Note 9 to the Consolidated Financial Statements in the 2021 Annual Report. |
Dividends on Ordinary Shares
Dividends on Ordinary Shares | 6 Months Ended |
Jun. 30, 2022 | |
Dividends On Ordinary Shares [Abstract] | |
Dividends on Ordinary Shares | 7. DIVIDENDS ON ORDINARY SHARES £389m int erim dividend was declared on the Company’s ordinary shares in issue (H121: £nil ). |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
Derivative Financial Instruments | 8. DERIVATIVE FINANCIAL INSTRUMENTS 30 June 2022 31 December 2021 Fair value Fair value Notional amount Assets Liabilities Notional amount Assets Liabilities £m £m £m £m £m £m Derivatives held for trading: Exchange rate contracts 13,712 287 314 11,036 159 168 Interest rate contracts 29,363 404 602 25,148 463 485 Equity and credit contracts 1,005 141 35 1,056 161 54 Total derivatives held for trading 44,080 832 951 37,240 783 707 Derivatives held for hedging Designated as fair value hedges: Exchange rate contracts 490 20 2 590 39 — Interest rate contracts 83,070 1,377 447 80,514 904 737 83,560 1,397 449 81,104 943 737 Designated as cash flow hedges: Exchange rate contracts 24,636 1,602 111 22,239 996 338 Interest rate contracts 25,361 223 992 21,466 180 216 49,997 1,825 1,103 43,705 1,176 554 Total derivatives held for hedging 133,557 3,222 1,552 124,809 2,119 1,291 Derivative netting (1) (1,783) (1,783) (1,221) (1,221) Total derivatives 177,637 2,271 720 162,049 1,681 777 (1) Derivative netting excludes the effect of cash collateral, which is offset against the gross derivative position. The amount of cash collateral received that had been offset against the gross derivative assets was £557m ( 2021 : £189m ) and the amount of cash collateral paid that had been offset against the gross derivative liabilities was £557m ( 2021 : £202m ). IBOR Reform Note 32 includes details of the notional value of hedging instruments by benchmark interest rate impacted by IBOR reform and the notional amounts of assets, liabilities and off-balance sheet commitments affected by IBOR reform that have yet to transition to an alternative benchmark interest rate. |
Other Financial Assets at Fair
Other Financial Assets at Fair Value Through Profit or Loss | 6 Months Ended |
Jun. 30, 2022 | |
Financial assets at fair value through profit or loss [abstract] | |
Other Financial Assets at Fair Value Through Profit or Loss | 9. OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 30 June 2022 31 December 2021 £m £m Loans and advances to customers: Loans to housing associations 11 12 Other loans 49 62 60 74 Debt securities 95 111 155 185 |
Loans and Advances to Customers
Loans and Advances to Customers | 6 Months Ended |
Jun. 30, 2022 | |
Net Loans And Advances To Customers [Abstract] | |
Loans and Advances to Customers | 10. LOANS AND ADVANCES TO CUSTOMERS 30 June 2022 31 December 2021 £m £m Loans and advances to customers 217,910 210,947 Credit impairment loss allowances on loans and advances to customers (876) (828) Residual value and voluntary termination provisions on finance leases (22) (25) Net loans and advances to customers 217,012 210,094 For movements in expected credit losses, see the 'Movement in total exposures and the corresponding ECL' table in the Santander UK group level - Credit risk review section of the Risk review. |
Securitisations and Covered Bon
Securitisations and Covered Bonds | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Securitisations And Covered Bonds [Abstract] | |
Securitisations and Covered Bonds | 11. SECURITISATIONS AND COVERED BONDS The information in this Note relates to securitisations and covered bonds for consolidated structured entities, used to obtain funding or collateral. It excludes structured entities relating to credit protection transactions. 30 June 2022 31 December 2021 £m £m Mortgage-backed master trust structures: – Holmes 2,010 2,294 – Fosse 1,910 2,154 3,920 4,448 Other asset-backed securitisation structures: – Motor 18 38 18 38 Total securitisation programmes 3,938 4,486 Covered bond programmes – Euro 35bn Global Covered Bond Programme 20,245 15,713 Total securitisation and covered bond programmes 24,183 20,199 The following table sets out the internal and external issuances and redemptions in H122 and H121 for each securitisation and covered bond programme. Internal issuances External issuances Internal redemptions External redemptions H122 H121 H122 H121 H122 H121 H122 H121 £bn £bn £bn £bn £bn £bn £bn £bn Mortgage-backed master trust structures: – Holmes — — — — — — — 0.3 – Langton — — — — — 2.4 — — Other asset-backed securitisation structures: – Motor — — — — — 0.1 — — – Auto ABS UK Loans — — — — — 0.1 — 0.1 Covered bond programme — — — — — — — 4.5 — — — — — 2.6 — 4.9 In H121, all the remaining Langton bonds were redeemed and all the remaining associated mortgages were repurchased by Santander UK plc. There was no gain or loss on redemption. Auto ABS UK Loans was held in PSA Finance UK Limited (PSA), which was a subsidiary of the Santander UK group. On 30 July 2021, the Santander UK group through Santander Consumer (UK) plc sold its entire 50% shareholding in PSA to PSA Financial Services Spain EFC SA, a joint venture between Santander Consumer Finance SA, a fellow subsidiary of Banco Santander SA, and Banque PSA Finance SA, the auto finance arm of Group PSA Peugeot Citroën. |
Reverse Repurchase Agreements -
Reverse Repurchase Agreements - Non Trading | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Reserve Repurchase Agreements Non-Trading [Abstract] | |
Reverse Repurchase Agreements - Non Trading | 12. REVERSE REPURCHASE AGREEMENTS – NON TRADING 30 June 2022 31 December 2021 £m £m Agreements with banks 475 447 Agreements with customers 8,318 12,236 8,793 12,683 |
Other Financial Assets at Amort
Other Financial Assets at Amortised Cost | 6 Months Ended |
Jun. 30, 2022 | |
Financial assets at fair value through profit or loss [abstract] | |
Other Financial Assets at Amortised Cost | 13. OTHER FINANCIAL ASSETS AT AMORTISED COST 30 June 2022 31 December 2021 £m £m Asset backed securities 94 443 Debt securities 62 63 0 156 506 |
Financial Assets at Fair Value
Financial Assets at Fair Value Through Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2022 | |
Financial assets at fair value through other comprehensive income [abstract] | |
Financial Assets at Fair Value Through Other Comprehensive Income | 14. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 30 June 2022 31 December 2021 £m £m Debt securities 4,894 5,833 Loans and advances to customers 19 18 4,913 5,851 |
Interests in Other Entities
Interests in Other Entities | 6 Months Ended |
Jun. 30, 2022 | |
Investments accounted for using equity method [abstract] | |
Interests in Other Entities | 15. INTERESTS IN OTHER ENTITIES There have been no significant changes to the Santander UK group's interests in subsidiaries, joint ventures and unconsolidated structured entities, as set out in Note 19 to the Consolidated Financial Statements in the 2021 Annual Report. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangible Assets | 16. INTANGIBLE ASSETS At 30 June 2022, intangible assets comprised goodwill of £1,199m (2021: £1,203m) and computer software of £339m (2021: £342m). |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property, plant and equipment [abstract] | |
Property, Plant and Equipment | 17. PROPERTY, PLANT AND EQUIPMENT Property Office fixtures and equipment Computer software Operating lease assets Right-of-use assets Total (1) £m £m £m £m £m £m Cost: At 1 January 2022 978 1,049 434 755 254 3,470 Additions 31 29 — 112 32 204 Reclassification to assets held for sale (109) (31) — — — (140) Disposals (25) (268) (363) (126) (23) (805) At 30 June 2022 875 779 71 741 263 2,729 Accumulated depreciation: At 1 January 2022 334 857 434 160 137 1,922 Charge for the period 10 34 — 41 9 94 Impairment during the period 8 2 — — — 10 Reclassification to assets held for sale (62) (29) — — — (91) Disposals (16) (265) (363) (51) (1) (696) At 30 June 2022 274 599 71 150 145 1,239 Net book value 601 180 — 591 118 1,490 (1) Property, plant and equipment includes assets under construction of £155m (2021: £106m) and investment properties of £20m (2021: £17m). |
Other Financial Liabilities at
Other Financial Liabilities at Fair Value Through Profit or Loss | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of financial liabilities [abstract] | |
Other Financial Liabilities at Fair Value Through Profit or Loss | 18. OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS 30 June 2022 31 December 2021 £m £m US$30bn Euro Medium Term Note Programme 3 5 Structured Notes Programmes 353 413 Eurobonds 110 142 Structured deposits 346 223 Collateral and associated financial guarantees 15 20 827 803 |
Deposits by Customers
Deposits by Customers | 6 Months Ended |
Jun. 30, 2022 | |
Deposits from customers [abstract] | |
Deposits by Customers | 19. DEPOSITS BY CUSTOMERS 30 June 2022 31 December 2021 £m £m Demand and time deposits (1) 183,553 185,843 Amounts due to other Santander UK Group Holdings plc subsidiaries 63 59 Amounts due to Santander UK Group Holdings plc (2) 4,987 5,874 Amounts due to fellow Banco Santander subsidiaries and joint ventures 1,126 1,150 189,729 192,926 (1) Includes equity index-linked deposits of £520m (2021: £549m). The capital amount guaranteed/protected and the amount of return guaranteed in respect of the equity index-linked deposits were £520m and £2m (2021: £549m and £2m) respectively. (2) Includes downstreamed funding from our immediate parent company Santander UK Group Holdings plc. |
Deposits by Banks
Deposits by Banks | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Deposits From Banks [Abstract] | |
Deposits by Banks | 20. DEPOSITS BY BANKS 30 June 2022 31 December 2021 £m £m Items in the course of transmission 447 414 Deposits held as collateral 1,627 931 Other deposits (1) 33,105 32,507 Amounts due to Santander UK subsidiaries 3 3 35,182 33,855 (1) Includes drawdown from the TFS of £0.0bn (2021:£0.0bn) and drawdown from the TFSME of £31.9bn (2021: £31.9bn). |
Repurchase Agreements - Non Tra
Repurchase Agreements - Non Trading | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Repurchase Agreements [Abstract] | |
Repurchase Agreements - Non Trading | 21. REPURCHASE AGREEMENTS – NON TRADING 30 June 2022 31 December 2021 £m £m Agreements with banks 2,558 4,145 Agreements with customers 4,352 7,573 6,910 11,718 |
Debt Securities in Issue
Debt Securities in Issue | 6 Months Ended |
Jun. 30, 2022 | |
Debt Securities In Issue [Abstract] | |
Debt Securities in Issue | 22. DEBT SECURITIES IN ISSUE 30 June 2022 31 December 2021 £m £m Medium-term notes 7,972 6,851 Euro 35bn Global Covered Bond Programme 15,952 12,760 US$20bn Commercial Paper Programmes 3,434 2,704 Certificates of deposit 1,667 2,387 Credit linked notes 60 59 Securitisation programmes 436 759 29,521 25,520 |
Subordinated Liabilities
Subordinated Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Subordinated liabilities [abstract] | |
Subordinated Liabilities | 23. SUBORDINATED LIABILITIES 30 June 2022 31 December 2021 £m £m 2,335 2,228 |
Provisions
Provisions | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of other provisions [abstract] | |
Provisions | 24. PROVISIONS Customer remediation Litigation and other regulatory Bank Levy Property ECL on undrawn facilities and guarantees Restructuring Other Total £m £m £m £m £m £m £m £m At 1 January 2022 44 166 1 74 38 28 13 364 Additional provisions (See Note 5) 25 16 — 1 10 8 84 144 Provisions released (See Note 5) (12) (1) — — — — — (13) Utilisation and other (8) (15) (1) (11) (2) (12) (83) (132) At 30 June 2022 49 166 — 64 46 24 14 363 A £25m customer remediation provision was recognised in H122 relating to the proposed refund of certain charges historically paid by cohorts of mortgage customers. In H122, Other provisions included charges for operational risk provisions of £78m (H121: £50m), including fraud losses of £63m (H121: £37m). |
Retirement Benefit Plans
Retirement Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of net defined benefit liability (asset) [abstract] | |
Retirement Benefit Plans | 25. RETIREMENT BENEFIT PLANS The amounts recognised in the balance sheet were as follows: 30 June 2022 31 December 2021 £m £m Assets/(liabilities) Funded defined benefit pension scheme - surplus 2,011 1,572 Unfunded pension and post-retirement medical benefits (29) (37) Total net assets 1,982 1,535 An expense of £30m (H121: £33m) was recognised for defined contribution plans in the period and is included in staff costs within operating expenses (see Note 4). b) Defined benefit pension schemes The total amount charged to the income statement was £4m (H121: £23m ). The amounts recognised in other comprehensive income were as follows: 30 June 2022 30 June 2021 £m £m Return on plan assets (excluding amounts included in net interest expense) 3,352 383 Actuarial gains arising from experience adjustments 296 (30) Actuarial gains arising from changes in financial assumptions (3,974) (1,098) Pension remeasurement (326) (745) The net assets recognised in the balance sheet were determined as follows: 30 June 2022 31 December 2021 £m £m Present value of defined benefit obligations (9,138) (12,878) Fair value of scheme assets 11,120 14,413 Net defined benefit assets 1,982 1,535 Actuarial assumptions The principal actuarial assumptions used for the defined benefit schemes were: 30 June 2022 31 December 2021 % % To determine benefit obligations (1) : – Discount rate for scheme liabilities 3.8 1.9 – General price inflation 3.1 3.4 – General salary increase 1.0 1.0 – Expected rate of pension increase 3.0 3.2 Years Years Longevity at 60 for current pensioners, on the valuation date: – Males 27.5 27.5 – Females 30.2 30.1 Longevity at 60 for future pensioners currently aged 40, on the valuation date: – Males 29.1 29.0 – Females 31.7 31.6 (1) The discount rate and inflation related assumptions set out in the table above reflect the assumptions calculated based on the Scheme’s duration and cash flow profile as a whole. The actual assumptions used were determined for each section independently based on each section’s duration and cash flow profile. The majority of the liability movement over the half year was due to changes in market conditions. Actuarial assumption sensitivities The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. (Decrease)/increase Change in pension obligation at period end from 30 June 2022 31 December 2021 Assumption £m £m Discount rate 25 bps increase (335) (571) General price inflation 25 bps increase 239 392 Mortality Each additional year of longevity assumed 256 478 |
Contingent Liabilities and Comm
Contingent Liabilities and Commitments | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of contingent liabilities [abstract] | |
Contingent Liabilities and Commitments | 26. CONTINGENT LIABILITIES AND COMMITMENTS 30 June 2022 31 December 2021 £m £m Guarantees given to third parties 428 363 Formal standby facilities, credit lines and other commitments 37,224 37,346 37,652 37,709 Other legal actions and regulatory matters Santander UK engages in discussion, and co-operates, with the FCA, PRA, CMA and other regulators and government agencies in various jurisdictions in their supervision and review of Santander UK including reviews exercised under statutory powers, regarding its interaction with past and present customers, both as part of general thematic work and in relation to specific products, services and activities. During the ordinary course of business, Santander UK is also subject to complaints and threatened legal proceedings brought by or on behalf of current or former employees, customers, investors or other third parties, in addition to legal and regulatory reviews, challenges and tax or enforcement investigations or proceedings in various jurisdictions. All such matters are assessed periodically to determine the likelihood of Santander UK incurring a liability. In those instances where it is concluded that it is not yet probable that a quantifiable payment will be made, for example because the facts are unclear or further time is required to fully assess the merits of the case or to reasonably quantify the expected payment, no provision is made. In addition, where it is not currently practicable to estimate the possible financial effect of these matters, no provision is made. FCA civil regulatory investigation into Santander UK plc financial crime systems, processes and controls, and compliance with the Money Laundering Regulations 2007 During HY 2022 Santander UK plc continued to cooperate with an FCA civil regulatory investigation which commenced in July 2017 into our compliance with the Money Laundering Regulations 2007 and potential breaches of FCA principles and rules relating to anti-money laundering and financial crime systems and controls. The FCA’s investigation focuses primarily on the period 2012 to 2017 and includes consideration of high-risk customers including Money Service Businesses. It is not currently possible to make a reliable assessment of any liability resulting from the investigation including any financial penalty. Payment Protection Insurance In relation to a specific PPI portfolio of complaints, a legal dispute regarding allocation of liability is in its early stages. The dispute relates to the liability for PPI mis-selling complaints relating to pre-2005 PPI policies underwritten by AXA France IARD and AXA France Vie (together, AXA France - previously Financial Insurance Company Ltd and Financial Assurance Company Ltd respectively) and involves Santander Cards UK Limited (a former GE Capital Corporation entity and distributor of pre-2005 PPI known as GE Capital Bank Limited which was acquired by Banco Santander SA in 2008 and subsequently transferred to Santander UK plc) and a Banco Santander SA subsidiary Santander Insurance Services UK Limited (together the Santander Entities). During the relevant period, AXA France were owned by Genworth Financial International Holdings, Inc (Genworth). In September 2015, AXA SA acquired AXA France from Genworth. In July 2017, the Santander Entities notified AXA France that they did not accept liability for losses on PPI policies relating to the relevant period. Santander UK plc entered into a Complaints Handling Agreement (CHA) with AXA France pursuant to which it agreed to handle complaints on their behalf, and AXA France agreed to pay redress assessed to be due to relevant policyholders on a without prejudice basis. A standstill agreement was entered into between the Santander Entities and AXA France as a condition of the CHA. In July 2020, Genworth announced that it had agreed to pay AXA SA circa £624m in respect of PPI mis-selling losses in settlement of the related dispute concerning obligations under the sale and purchase agreement pursuant to which Genworth sold AXA France to AXA SA. The CHA between Santander UK plc and AXA France terminated on 26 December 2020. On 30 December 2020, AXA France provided written notice to the Santander Entities to terminate the standstill agreement. During 2021, AXA France commenced litigation against the Santander Entities seeking recovery of £636m and any further losses relating to pre-2005 PPI. Judgment in respect of the Santander Entities application for AXA France’s claim to be struck out/summarily dismissed, was handed down by the Commercial Court on 12 July 2022. In summary, the Commercial Court upheld a significant part of the Santander Entities’ strike-out application, striking out AXA France’s claim for contribution against Santander for alleged losses and requiring AXA France to re-plead a significant portion of its other pleadings. The Santander Entities are seeking permission to appeal aspects of the strike out decision on which they were unsuccessful. Overall the dispute remains at an early stage and there are ongoing factual issues to be resolved which may have legal consequences including in relation to liability. These issues create uncertainties which mean that it is difficult to reliably predict the outcome or the timing of the resolution of the matter. The litigation and other regulatory provision in Note 24 includes our best estimate of the Santander Entities’ liability to the specific portfolio. Further information has not been provided on the basis that it would be seriously prejudicial to the Santander Entities’ interests in connection with the dispute. In addition, and in relation to PPI more generally the PPI provision includes an amount relating to legal claims challenging the FCA’s industry guidance on the treatment of Plevin / recurring non-disclosure assessments. This provision is based on current stock levels, future projected claims, and average redress. There remains a risk that volumes received in future may be higher than forecast. The provision in Note 24 includes our best estimate of Santander UK’s liability for the specific issue. The actual cost of customer compensation could differ from the amount provided. It is not currently practicable to provide an estimate of the risk and amount of any further financial impact. German dividend tax arbitrage transactions In June 2018 the Cologne Criminal Prosecution Office and the German Federal Tax Office commenced an investigation in relation to the historical involvement of Santander UK plc, Santander Financial Services plc and Cater Allen International Limited (all subsidiaries of Santander UK Group Holdings plc) in German dividend tax arbitrage transactions (known as cum/ex transactions). These transactions allegedly exploited a loophole of a specific German settlement mechanism through short-selling and complex derivative structuring which resulted in the German government either refunding withholding tax where such tax had not been paid or refunding it more than once. The German authorities are investigating numerous institutions and individuals in connection with alleged transactions and practices which may be found to be illegal under German law. During H122 we continued to cooperate with the German authorities and, with the assistance of external experts, to progress an internal investigation into the matters in question. From Santander UK plc’s perspective, the investigation is focused principally on the period 2009-2011 and remains on-going. There remain factual issues to be resolved which may have legal consequences including potentially material financial penalties. These issues create uncertainties which mean that it is difficult to predict the resolution of the matter including timing or the significance of the possible impact. Any potential losses, claims or expenses suffered or incurred by Santander Financial Services plc in respect of these matters have been fully indemnified by Santander UK plc, as part of the ring-fencing transfer scheme between Santander UK plc, Santander Financial Services plc and Banco Santander SA. Taxation The Santander UK group engages in discussion, and co-operates, with HM Revenue & Customs (HMRC) in their oversight of the Santander UK group’s tax matters. The Santander UK group adopted the UK’s Code of Practice on Taxation for Banks in 2010. Certain leases in which the Santander UK group is or was the lessor have been under review by HMRC in connection with claims for tax allowances. Under the terms of the lease agreements, the Santander UK group is fully indemnified in all material respects by the respective lessees for any liability arising from the disallowance of tax allowances plus accrued interest. During 2021, an outline agreement in principle in respect of a number of these lease arrangements was reached directly between the lessee and HMRC. This agreement was executed in April 2022, resulting in a final payment by the lessee to HMRC and the conclusion of HMRC’s review. There is no financial impact for the Santander UK group. Other On 2 November 2015, Visa Europe Ltd agreed to sell 100% of its share capital to Visa Inc. The deal closed on 21 June 2016. As a member and shareholder of Visa Europe Ltd, Santander UK received upfront consideration made up of cash and convertible preferred stock. C onversion of the preferred stock into Class A Common Stock of Visa Inc. depends on the outcome of litigation against Visa involving UK & Ireland (UK&I) multilateral interchange fees (MIFs). Following ring-fencing, all Visa stock is now held by Santander Equity Investments Limited (SEIL), outside the ring fenced bank. In addition, Santander UK and certain other UK&I banks have agreed to indemnify Visa Inc. in the event that the preferred stock is insufficient to meet the costs of this litigation. Visa Inc. has recourse to this indemnity once more than €1bn of losses relating to UK&I MIFs have arisen or once the total value of the preferred stock issued to UK&I banks on closing has been reduced to nil . Whilst Santander UK's liability under this indemnity is capped at €39.85m , Visa Inc. may have recourse to a general indemnity in place under Visa Europe Operating Regulations for damages not satisfied through the above mechanism. At this stage, it is unclear whether the litigation will give rise to more than €1bn of losses relating to UK&I MIFs which means it is difficult to predict the resolution of the matter including the timing or the significance of the possible impact. As part of the sale of subsidiaries, businesses and other entities, and as is normal in such circumstances, Santander UK plc (and/or, where relevant, its subsidiaries) has given warranties and indemnities to the purchasers. |
Other Equity Instruments
Other Equity Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of classes of share capital [abstract] | |
Other Equity Instruments | 27. OTHER EQUITY INSTRUMENTS Interest rate 30 June 2022 31 December 2021 % Next call date £m £m £300m Step-up Callable Perpetual Reserve Capital Instruments 7.037 February 2026 — 235 AT1 securities: - £500m Perpetual Capital Securities 6.75 June 2024 496 496 - £750m Perpetual Capital Securities 7.375 June 2022 — 750 - £500m Perpetual Capital Securities 5.18 n/a — — - £500m Perpetual Capital Securities 6.30 March 2025 500 500 - £210m Perpetual Capital Securities 4.25 March 2026 210 210 - £750m Perpetual Capital Securities 6.50 September 2027 750 — 1,956 2,191 |
Notes to Cash Flows
Notes to Cash Flows | 6 Months Ended |
Jun. 30, 2022 | |
Cash Flows Explanatory Notes [Abstract] | |
Notes to Cash Flows | 28. NOTES TO CASH FLOWS Restatements in the consolidated cash flow Reverse repurchase agreements with a contractual maturity of greater than 3 months and repurchase agreements were previously included in cash and cash equivalents. As set out in the 2021 Annual Report, with effect from 31 December 2021, such agreements are no longer included in cash and cash equivalents, and have been included in the cash flow statement within ‘change in operating assets' and 'change in operating liabilities’ for ‘reverse repurchase agreements - non trading’ and ‘repurchase agreements - non trading’. Prior periods have been restated. As a result, at 30 June 2021, cash and cash equivalents have been increased by £4,339m. The presentation of the consolidated cash flow statement has changed to present 'profit before tax' within cash flows from operating activities instead of 'profit after tax'. Prior periods have been restated. As a result, at 30 June 2021, the adjustment for 'non-cash items included in profit' within cash flows from operating activities has been decreased by £214m . Following a decision by the IFRS Interpretations Committee in April 2022, Santander UK updated its accounting policy to exclude from cash and cash equivalents Reserves Collateralisation Accounts (RCAs) balances held at the BoE relating to Santander UK’s participation in certain payments schemes. Instead, RCAs balances are classified as restricted balances and included within 'change in operating assets' in the cash flow statement. Prior periods have been restated. As a result, opening cash and cash equivalents at 1 January 2022 and 1 January 2021 have been restated by £1,580m and £985m respectively. At 30 June 2021, cash and cash equivalents were reduced by £780m and restricted balances were increased by £780m. |
Assets Charged as Security for
Assets Charged as Security for Liabilities and Collateral Accepted as Security for Assets | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Assets Pledged As Security [Abstract] | |
Assets Charged as Security for Liabilities and Collateral Accepted as Security for Assets | 29. ASSETS CHARGED AS SECURITY FOR LIABILITIES AND COLLATERAL ACCEPTED AS SECURITY FOR ASSETS Securitisations and covered bonds As described in Note14 to the Consolidated Financial Statements in the 2021 Annual Report, Santander UK plc and certain of its subsidiaries issue securitisations and covered bonds. At 30 June 2022, there were £24,183m (2021: £20,199m) of gross assets in these secured programmes, of which £751m (2021: £767m) related to internally retained issuances that were available for use as collateral for liquidity purposes in the future. At 30 June 2022, a total of £1,780m (2021: £1,855m) of notes issued under securitisation and covered bond programmes had been retained internally, a proportion of which had been used as collateral via third party bilateral secured funding transactions, which totalled £500m at 30 June 2022 (2021: £500m), or for use as collateral for liquidity purposes in the future. |
Related Party Disclosures
Related Party Disclosures | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of transactions between related parties [abstract] | |
Related Party Disclosures | 30. RELATED PARTY DISCLOSURES The financial position and performance of the Santander UK group were not materially affected in H122 by any related party transactions, or changes to related party transactions, except for the following : In May 2022, Santander UK plc transferred a portfolio of mortgage assets with a book value of £624m to Santander Financial Services plc for a cash consideration of £631m , including a purchase price premium of £7m . |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Financial Instruments | 31. FINANCIAL INSTRUMENTS a) Measurement basis of financial assets and liabilities Financial assets and financial liabilities are measured on an ongoing basis either at fair value or at amortised cost. Note 1 to the Consolidated Financial Statements in the 2021 Annual Report describes how the classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised. b) Fair values of financial instruments carried at amortised cost The following tables analyse the fair value of the financial instruments carried at amortised cost at 30 June 2022 and 31 December 2021. It does not include fair value information for financial assets and financial liabilities carried at amortised cost if the carrying amount is a reasonable approximation of fair value. Details of the valuation methodology of the financial assets and financial liabilities carried at amortised cost can be found in Note 40(e) to the Consolidated Financial Statements in the 2021 Annual Report. 30 June 2022 31 December 2021 Fair value Carrying Fair value Carrying Level 1 Level 2 Level 3 Fair value value Level 1 Level 2 Level 3 Fair value value £m £m £m £m £m £m £m £m £m £m Assets Loans and advances to customers — — 215,234 215,234 217,012 — — 212,811 212,811 210,094 Loans and advances to banks — 793 — 793 793 — 1,169 — 1,169 1,169 Reverse repurchase agreements - non trading — 8,785 — 8,785 8,793 — 12,453 226 12,679 12,683 Other financial assets at amortised cost 151 — — 151 156 164 348 — 512 506 151 9,578 215,234 224,963 226,754 164 13,970 213,037 227,171 224,452 Liabilities Deposits by customers — 210 189,516 189,726 189,729 — 48 192,898 192,946 192,926 Deposits by banks — 35,012 63 35,075 35,182 — 33,770 85 33,855 33,855 Repurchase agreements - non trading — 6,910 — 6,910 6,910 — 11,718 — 11,718 11,718 Debt securities in issue 2,349 22,569 4,622 29,540 29,521 963 23,926 1,218 26,107 25,520 Subordinated liabilities 19 2,610 — 2,629 2,335 37 2,350 238 2,625 2,228 2,368 67,311 194,201 263,880 263,677 1,000 71,812 194,439 267,251 266,247 c) Fair values of financial instruments measured at fair value The following tables summarise the fair values of the financial assets and liabilities accounted for at fair value at 30 June 2022 and 31 December 2021, analysed by their levels in the fair value hierarchy - Level 1, Level 2 and Level 3. 30 June 2022 31 December 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Valuation £m £m £m £m £m £m £m £m technique Assets Derivative financial instruments Exchange rate contracts — 1,909 — 1,909 — 1,193 1 1,194 A Interest rate contracts — 2,002 2 2,004 — 1,547 — 1,547 A & C Equity and credit contracts — 102 39 141 — 116 45 161 B & D Netting — (1,783) — (1,783) — (1,221) — (1,221) — 2,230 41 2,271 — 1,635 46 1,681 Other financial assets at FVTPL Loans and advances to customers — — 60 60 — — 74 74 A Debt securities — — 95 95 — — 111 111 A, B & D — — 155 155 — — 185 185 Financial assets at FVOCI Debt securities 4,894 — — 4,894 5,833 — — 5,833 D Loans and advances to customers — — 19 19 — — 18 18 D 4,894 — 19 4,913 5,833 — 18 5,851 Total assets at fair value 4,894 2,230 215 7,339 5,833 1,635 249 7,717 Liabilities Derivative financial instruments Exchange rate contracts — 427 — 427 — 506 — 506 A Interest rate contracts — 2,038 3 2,041 — 1,436 2 1,438 A & C Equity and credit contracts — 22 13 35 — 24 30 54 B & D Netting — (1,783) — (1,783) — (1,221) — (1,221) — 704 16 720 — 745 32 777 Other financial liabilities at FVTPL Debt securities in issue — 463 3 466 — 555 5 560 A Structured deposits — 346 — 346 — 223 — 223 A Collateral and associated financial guarantees — 15 — 15 — 19 1 20 D — 824 3 827 — 797 6 803 Total liabilities at fair value — 1,528 19 1,547 — 1,542 38 1,580 Transfers between levels of the fair value hierarchy In H122 there were no significant (H121: no significant) transfers of financial instruments between levels of the fair value hierarchy. d) Valuation techniques The main valuation techniques employed in internal models to measure the fair value of the financial instruments are disclosed in Note 40(c) to the Consolidated Financial Statements in the 2021 Annual Report. The Santander UK group did not make any material changes to the valuation techniques and internal models it used in H122. e) Fair value adjustments The internal models incorporate assumptions that Santander UK believes would be made by a market participant to establish fair value. Fair value adjustments are adopted when Santander UK considers that there are additional factors that would be considered by a market participant that are not incorporated in the valuation model. Santander UK classifies fair value adjustments as either ‘risk-related’ or ‘model-related’. The fair value adjustments form part of the portfolio fair value and are included in the balance sheet values of the product types to which they have been applied. The magnitude and types of fair value adjustment are listed in the following table: 30 June 2022 31 December 2021 £m £m Risk-related: - Bid-offer and trade specific adjustments (15) (9) - Uncertainty 15 20 - Credit risk adjustment 6 6 - Funding fair value adjustment 4 3 10 20 Risk-related adjustments Risk-related adjustments are driven, in part, by the magnitude of Santander UK’s market or credit risk exposure, and by external market factors, such as the size of market spreads. For more details, see ‘Risk-related adjustments’ in Note 40(g) to the Consolidated Financial Statements in the 2021 Annual Report. f) Internal models based on information other than market data (Level 3) Valuation techniques There have been no significant changes to the valuation techniques as set out in Note 40(h) to the Consolidated Financial Statements in the 2021 Annual Report. Reconciliation of fair value measurement in Level 3 of the fair value hierarchy The following table sets out the movements in Level 3 financial instruments in H122: Assets Liabilities Derivatives Other financial assets at FVTPL Financial assets at FVOCI Total Derivatives Other financial liabilities at FVTPL Total £m £m £m £m £m £m £m At 1 January 2022 46 185 18 249 (32) (6) (38) Total (losses)/gains recognised: Fair value movements (2) (2) (18) 1 (19) — 5 5 Transfers in — — — — (2) — (2) Netting (1) — — — — — (4) (4) Settlements (3) (12) — (15) 18 2 20 At 30 June 2022 41 155 19 215 (16) (3) (19) Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period (2) (2) (18) 1 (19) — 5 5 (1) This relates to the effect of netting on the fair value of the credit linked notes due to a legal right of set-off between the principal amounts of the senior notes and the associated cash deposits. For more, see ‘ii) Credit protection entities’ in Note 19 to the Consolidated Financial Statements in the 2021 Annual Report. (2) Fair value movements relating to derivatives and other financial assets at FVTPL are recognised in other operating income in the income statement. Fair value movements relating to financial assets at FVOCI are recognised in the movement in fair value reserve (debt instruments). Effect of changes in significant unobservable assumptions to reasonably possible alternatives (Level 3) There has been no significant change to the unobservable inputs and sensitivities used in Level 3 fair values as set out in Note 40(h) to the Consolidated Financial Statements in the 2021 Annual Report. |
Interest Rate Benchmark Reform
Interest Rate Benchmark Reform | 6 Months Ended |
Jun. 30, 2022 | |
Interest Rate Benchmark Reform [Abstract] | |
Interest Rate Benchmark Reform | 32. INTEREST RATE BENCHMARK REFORM The following tables show the notional amounts of assets, liabilities and off-balance sheet commitments at 30 June 2022 and 31 December 2021 affected by IBOR reform that have yet to transition to an alternative benchmark interest rate as provided internally to key management personnel. 30 June 2022 GBP (2) LIBOR USD (2) LIBOR Other (2) Total £m £m £m £m Assets Derivatives (1) — 1,650 — 1,650 Financial assets at amortised cost 85 17 — 102 85 1,667 — 1,752 Liabilities Derivatives (1) 130 1,830 — 1,960 Other financial liabilities at fair value through profit and loss — 3 — 3 130 1,833 — 1,963 Off-balance sheet commitments given 8 79 — 87 31 December 2021 GBP (2) LIBOR USD (2) LIBOR Other (2) Total £m £m £m £m Assets Derivatives (1) — 1,480 — 1,480 Other financial assets at fair value through profit and loss 8 — — 8 Financial assets at amortised cost 1,373 81 1 1,455 1,381 1,561 1 2,943 Liabilities Derivatives (1) 338 1,831 — 2,169 Other financial liabilities at fair value through profit and loss — 5 — 5 Financial liabilities at amortised cost 34 185 — 219 372 2,021 — 2,393 Off-balance sheet commitments given 338 59 — 397 (1) Many of the Santander UK group's derivatives subject to IBOR reform are standard ISDA contracts and are subject to supplementary ISDA fallback provisions which became effective on 25 January 2021 setting out what floating rates apply on the permanent discontinuation of key IBORs. The Santander UK group adhered to the protocol and implemented the fallback provisions to derivative contracts entered into before 25 January 2021. Where derivative counterparties also adhered to the protocol, fallback provisions were automatically implemented in existing derivative contracts when the supplement became effective. 1-month, 3-month and 6-month GBP & JPY settings for certain legacy contracts have been extended until at least the end of 2022 but not for cleared derivative contracts. (2) Settings for GBP, JPY & NOK LIBOR & 1-week and 2-month USD LIBOR ceased on 31 December 2021 and for EONIA on 3 January 2022, however, for certain legacy contracts, 1-month, 3-month and 6-month settings for GBP & JPY LIBOR have been extended until at least 31 December 2022. Remaining USD LIBOR settings (overnight, 1-month, 3-month, 6-month and 12-month) will cease on 30 June 2023. IBOR Reform The table below shows the notional amount of derivatives in hedging relationships directly affected by uncertainties related to IBOR reform. 30 June 2022 31 December 2021 GBP USD Other Total GBP USD Other Total £m £m £m £m £m £m £m £m Total notional value of hedging instruments – Cash flow hedges — 2,881 — 2,881 — 2,586 — 2,586 – Fair value hedges — 176 — 176 — 160 — 160 — 3,057 — 3,057 — 2,746 — 2,746 Maturing after cessation date (1) – Cash flow hedges — 2,881 — 2,881 — 2,586 — 2,586 – Fair value hedges — 176 — 176 — 160 — 160 — 3,057 — 3,057 — 2,746 — 2,746 (1) Settings for GBP, JPY & NOK LIBOR & 1-week and 2-month USD LIBOR ceased on 31 December 2021 and for EONIA on 3 January 2022, however, for certain legacy contracts, 1-month, 3-month and 6-month settings for GBP & JPY LIBOR have been extended until at least 31 December 2022. Remaining USD LIBOR settings (overnight, 1-month, 3-month, 6-month and 12-month) will cease on 30 June 2023. For more details on interest rate benchmark reform and the Santander UK group’s transition from IBORs to alternative benchmark rates, see Note 42 to the Consolidated Financial Statements in the 2021 Annual Report. |
Discontinued Operations and Ass
Discontinued Operations and Assets Held for Sale | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Assets and Liabilities Held for Sale [Abstract] | |
Discontinued Operations | 33. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE Discontinued operations Transfer of the CIB Business Santander UK plc transferred a significant part of its Corporate & Investment Banking business to the London branch of Banco Santander SA under a Part VII banking business transfer scheme, which completed on 11 October 2021. The residual parts of the Corporate & Investment Banking business have been wound down or transferred to other segments. For the periods prior to its sale, the Corporate & Investment Banking business met the requirements for presentation as discontinued operations. The financial performance and cash flow information relating to the discontinued operations were as follows: For the Half Year to 30 June 2022 30 June 2021 £m £m Net interest income — 24 Net fee and commission income — 27 Total operating income — 51 Operating expenses before credit impairment losses, provisions and charges — (22) Credit impairment losses — 7 Provisions for other liabilities and charges — (3) Total operating credit impairment losses, provisions and charges — 4 Profit from discontinued operations before tax — 33 Tax on profit from discontinued operations — (9) Profit from discontinued operations after tax — 24 There were no gains or losses recognised on the measurement to fair value less costs to sell or on the disposal of the asset groups constituting the discontinued operations. In H122, the net cash flows attributable to the operating activities, investing activities and financing activities in respect of discontinued operations were £nil outflow (H121: £1,754m ou tflow), £nil (H121: £nil) and £nil ( H121: £nil) respectively. Assets held for sale Sale of property Management considered the sale of Santander House and Shenley Wood freehold land and buildings to be highly probable at the balance sheet date. As such, the Santander UK group reclassified these properties as held for sale. The sale is expected to complete in H2 2023 with no gain or loss. At 30 June 2022, assets held for sale comprised: £m Assets Property, plant and equipment 49 Total assets held for sale 49 |
Events After the Balance Sheet
Events After the Balance Sheet Date | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Events After the Balance Sheet Date | 34. EVENTS AFTER THE BALANCE SHEET DATE There have been no significant events between 30 June 2022 and the date of approval of these financial statements which would require a change to or additional disclosure in the financial statements. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Basis of preparation and accounting developments | The financial information in these Condensed Consolidated Interim Financial Statements is unaudited and does not constitute statutory accounts as defined in section 434 of the UK Companies Act 2006. These Condensed Consolidated Interim Financial Statements were approved by the Board of Directors on 11 August 2022. Statutory accounts for the year ended 31 December 2021 have been delivered to the Registrar of Companies. The Condensed Consolidated Interim Financial Statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of operations for the interim period. All such adjustments to the financial information are of a normal, recurring nature. Because the results from common banking activities are so closely related and responsive to changes in market conditions, the results for any interim period are not necessarily indicative of the results that can be expected for the year. The Condensed Consolidated Interim Financial Statements have been prepared in accordance with International Accounting Standard IAS 34 ‘Interim Financial Reporting', as issued by the International Accounting Standards Board (IASB) and adopted in the UK, and the Disclosure Guidance and Transparency Rules sourcebook of the UK's Financial Conduct Authority (FCA). They do not include all the information and disclosures normally required for full annual financial statements and should be read in conjunction with the Consolidated Financial Statements of Santander UK plc (the Company) and its subsidiaries (collectively Santander UK or the Santander UK group) for the year ended 31 December 2021 which were prepared in accordance with UK-adopted International Accounting Standards (IAS). Those consolidated financial statements were also prepared in accordance with IFRSs as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee, as there were no applicable differences from IFRSs as issued by the IASB for the periods presented. Except as noted below, the same accounting policies, presentation and methods of computation are followed in these Condensed Consolidated Interim Financial Statements as were applied in the presentation of Santander UK’s 2021 Annual Report. Future accounting developments Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2 |
Property, plant and equipment | Property, plant and equipment During H122, Santander UK expanded its accounting policy for 'Property, plant and equipment' to separately address properties which it no longer occupies, and to identify such properties as ‘Investment property’. This change had no financial impact on these Condensed Consolidated Interim Financial Statements. Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the companies in the Santander UK group, is classified as investment property and included in property, plant and equipment. Investment property is accounted for in the same manner as owner-occupied property. In addition, rental income from investment property is recognised as other revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. |
Cash and cash equivalents | Cash and cash equivalents Following a decision by the IFRS Interpretations Committee in April 2022, Santander UK updated its accounting policy to exclude from cash and cash equivalents Reserves Collateralisation Accounts (RCAs) balances held at the BoE relating to Santander UK’s participation in certain payments schemes. Instead, RCAs balances are classified as restricted balances and included within 'change in operating assets' in the cash flow statement. Prior periods have been restated. For the purposes of the cash flow statement, cash and cash equivalents comprise balances with less than three months maturity from the date of acquisition, including cash and non-restricted balances with central banks, treasury bills and other eligible bills, loans and advances to banks and short-term investments in securities. Balances with central banks represent amounts held at the BoE as part of the Santander UK group’s liquidity management activities. It includes certain minimum cash ratio deposits held for regulatory purposes and reserves collateralised accounts in respect of Santander UK’s participation in certain payments schemes which are required to be maintained with the BoE and are restricted balances. |
Non-current assets held for sale | Non-current assets held for sale Non-current assets (or disposal groups) are classified as held for sale when their carrying amount is to be recovered principally through a sale transaction rather than continuing use. In order to be classified as held for sale, the asset must be available for immediate sale in its present condition subject only to terms that are usual and customary, and the sale must be highly probable. Non-current assets (or disposal groups) held for sale are measured at the lower of carrying amount and fair value less cost to sell, with the exception of financial instruments which remain governed by the requirements of IFRS 9 and are held at their IFRS 9 carrying value. |
Going concern | Going concern In light of the continuing economic uncertainty, the Directors updated their going concern assessment in preparing these Condensed Consolidated Interim Financial Statements. After making enquiries, the Directors have a reasonable expectation that Santander UK has adequate resources to continue in operational existence for at least twelve months from the date of this report and, therefore, having reassessed the principal risks and uncertainties, the Directors consider it appropriate for the Condensed Consolidated Interim Financial Statements to be prepared on a going concern basis. In making their going concern assessment in connection with preparing the Condensed Consolidated Interim Financial Statements, the Directors considered a wide range of information that included Santander UK’s long-term business and strategic plans, forecasts and projections, estimated capital, funding and liquidity requirements, contingent liabilities and the reasonably possible changes in trading performance arising from potential economic, market and product developments. |
Critical judgements and accounting estimates | CRITICAL JUDGEMENTS AND ACCOUNTING ESTIMATES The preparation of the Condensed Consolidated Interim Financial Statements requires management to make judgements and accounting estimates that affect the reported amount of assets and liabilities at the reporting date and the reported amount of income and expenses during the reporting period. Management evaluates its judgements and accounting estimates, which are based on historical experience and on various other factors that are believed to be reasonable under the circumstances, on an ongoing basis. Actual results may differ from these accounting estimates under different assumptions or conditions. In preparing the Condensed Consolidated Interim Financial Statements, no significant judgements were made in applying the accounting policies, other than those involving estimations about credit impairment losses, provisions and contingent liabilities, pensions and goodwill. There has been no change in the inherent sensitivity of the areas of judgement in the period. Management have considered the impact of developments in principal risks and uncertainties, as set out in the Risk review, on critical judgements and accounting estimates. a) Credit impairment losses Key judgements – Determining an appropriate definition of default – Establishing the criteria for a significant increase in credit risk (SICR) and, for corporate borrowers, internal credit risk rating – Determining appropriate post model adjustments – Assessing individual corporate Stage 3 exposures Key estimates – Forward-looking multiple economic scenario assumptions – Probability weights assigned to multiple economic scenarios For more on each of these key judgements and estimates, see 'Critical judgements and accounting estimates applied in calculating ECL' in the ‘Credit risk – credit risk management’ section of the Risk review in the 2021 Annual Report. Sensitivity of ECL allowance For detailed disclosures, see 'Sensitivity of ECL allowance' in the ‘Credit risk – credit risk management’ section of the Risk review. b) Provisions and contingent liabilities Key judgements – Determining whether a present obligation exists – Assessing the likely outcome of future legal decisions Key estimates – Probability, timing, nature and amount of any outflows that may arise from past events Included in Litigation and other regulatory provisions in Note 24 are amounts in respect of management’s best estimates of liability relating to a legal dispute regarding allocation of responsibility for a specific PPI portfolio of complaints, and Plevin related litigation. Note 26 provides disclosure relating to ongoing factual issues and reviews that could impact the timing and amount of any outflows. Note 26 includes disclosure relating to an investigation in relation to the historical involvement of Santander UK plc, Santander Financial Services plc and Cater Allen International Limited (all subsidiaries of Santander UK Group Holdings plc) in German dividend tax arbitrage transactions, as well as an FCA civil regulatory investigation which commenced in July 2017 into our compliance with the Money Laundering Regulations 2007 and potential breaches of FCA principles and rules relating to anti-money laundering and financial crime systems and controls. These judgements are based on the specific facts available and often require specialist professional advice. There can be a wide range of possible outcomes and uncertainties, particularly in relation to legal actions, and regulatory and consumer credit matters. As a result, it is often not possible to make reliable estimates of the likelihood and amount of any potential outflows, or to calculate any resulting sensitivities. For more on these key judgements and estimates, see Notes 24 and 26. c) Pensions Key judgements – Setting the criteria for constructing the corporate bond yield curve used to determine the discount rate – Determining the methodology for setting the inflation assumption Key estimates – Discount rate applied to future cash flows – Rate of price inflation – Expected lifetime of the schemes' members – Valuation of pension fund assets whose values are not based on market observable data For more on each of these key judgements and estimates, see Note 25. Sensitivity of defined benefit pension scheme estimates For detailed disclosures, see ‘Actuarial assumption sensitivities’ in Note 25. The Scheme was invested in certain assets whose values are not based on market observable data, such as investments in private equity funds and property. Due diligence has been conducted to ensure the values obtained in respect of these assets are appropriate and represent fair value. Given the nature of these investments, we are unable to prepare sensitivities on how their values could vary as market conditions or other variables change. d) Goodwill Key judgements: – Determining the basis of goodwill impairment calculation assumptions, including management's planning assumptions considering internal capital allocations needed to support Santander UK's strategy, current market conditions and the macro-economic outlook. Key estimates: – Forecast cash flows for cash generating units, including estimated allocations of regulatory capital – Growth rate beyond initial cash flow projections – Discount rates which factor in risk-free rates and applicable risk premiums All of these variables are subject to fluctuations in external market rates and economic conditions beyond management’s control For more on each of these key judgements and estimates, see Note 16. Sensitivity of goodwill |
Resegmentation of Retail Banking business | As reflected in the 2021 Annual Report, the segmental basis of presentation in these Condensed Consolidated Interim Financial Statements changed following a management review of our structure in Q4 2021. Previously, Consumer Finance was managed as part of Retail Banking. Santander UK plc transferred a significant part of its Corporate & Investment Banking business to the London branch of Banco Santander SA under a Part VII banking business transfer scheme, which completed on 11 October 2021. The residual parts of the Corporate & Investment Banking business have been wound down or transferred to other segments. For the periods prior to its sale, the Corporate & Investment Banking business met the requirements for presentation as discontinued operations. For more details, see Note 33. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Disclosure of Information about Key Judgements and Key Estimates | Key judgements – Determining an appropriate definition of default – Establishing the criteria for a significant increase in credit risk (SICR) and, for corporate borrowers, internal credit risk rating – Determining appropriate post model adjustments – Assessing individual corporate Stage 3 exposures Key estimates – Forward-looking multiple economic scenario assumptions – Probability weights assigned to multiple economic scenarios Key judgements – Determining whether a present obligation exists – Assessing the likely outcome of future legal decisions Key estimates – Probability, timing, nature and amount of any outflows that may arise from past events Key judgements – Setting the criteria for constructing the corporate bond yield curve used to determine the discount rate – Determining the methodology for setting the inflation assumption Key estimates – Discount rate applied to future cash flows – Rate of price inflation – Expected lifetime of the schemes' members – Valuation of pension fund assets whose values are not based on market observable data Key judgements: – Determining the basis of goodwill impairment calculation assumptions, including management's planning assumptions considering internal capital allocations needed to support Santander UK's strategy, current market conditions and the macro-economic outlook. Key estimates: – Forecast cash flows for cash generating units, including estimated allocations of regulatory capital – Growth rate beyond initial cash flow projections – Discount rates which factor in risk-free rates and applicable risk premiums All of these variables are subject to fluctuations in external market rates and economic conditions beyond management’s control |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of operating segments [abstract] | |
Summary of Results by Segment | Results by segment For the Half Year to Retail Banking Consumer Finance Corporate & Commercial Banking Corporate Centre Total 30 June 2022 £m £m £m £m £m Net interest income 1,784 92 242 2 2,120 Non-interest income 116 101 69 (16) 270 Total operating income 1,900 193 311 (14) 2,390 Operating expenses before credit impairment (losses)/write-backs, provisions and charges (831) (73) (181) (87) (1,172) Credit impairment (losses)/write-backs (126) (13) 19 2 (118) Provisions for other liabilities and charges (101) — (2) (15) (118) Total operating credit impairment (losses)/write-backs, provisions and charges (227) (13) 17 (13) (236) Profit/(loss) from continuing operations before tax 842 107 147 (114) 982 Revenue from external customers 2,033 243 318 (204) 2,390 Inter-segment revenue (133) (50) (7) 190 — Total operating income 1,900 193 311 (14) 2,390 Revenue from external customers includes the following fee and commission income disaggregated by income type: (1) – Current account and debit card fees 218 — 29 — 247 – Insurance, protection and investments 31 — — — 31 – Credit cards 46 — — — 46 – Non-banking and other fees (2) 4 8 36 5 53 Total fee and commission income 299 8 65 5 377 Fee and commission expense (191) — (11) (7) (209) Net fee and commission income/(expense) 108 8 54 (2) 168 Customer loans 189,318 5,129 17,358 1,711 213,516 Total assets (3) 196,505 9,652 17,358 60,802 284,317 Of which assets held for sale — — — 49 49 Customer deposits 154,759 — 25,305 3,940 184,004 Total liabilities 155,199 1,153 25,326 86,966 268,644 (1) The disaggregation of fees and commission income as shown above is not included in reports provided to the chief operating decision maker but is provided to show the split by reportable segments. (2) Non-banking and other fees include mortgages (except mortgage account fees), consumer finance, commitment commission, asset finance, invoice finance and trade finance. (3) Includes customer loans, net of credit impairment loss allowances. Retail Banking (4) Consumer Finance (4) Corporate & Commercial Banking Corporate & Investment Banking Corporate Centre Total 30 June 2021 £m £m £m £m £m £m Net interest income/(expense) 1,602 135 202 — (34) 1,905 Non-interest income 109 77 51 — 49 286 Total operating income 1,711 212 253 — 15 2,191 Operating expenses before credit impairment (losses)/write-backs, provisions and charges (858) (90) (181) — (199) (1,328) Credit impairment (losses)/write-backs 28 20 23 — (1) 70 Provisions for other liabilities and charges (67) — (5) — (118) (190) Total operating credit impairment (losses)/write-backs, provisions and charges (39) 20 18 — (119) (120) Profit/(loss) from continuing operations before tax 814 142 90 — (303) 743 Revenue from external customers 1,939 255 272 — (275) 2,191 Inter-segment revenue (228) (43) (19) — 290 — Total operating income/(expense) 1,711 212 253 — 15 2,191 Revenue from external customers includes the following fee and commission income disaggregated by income type: (1) – Current account and debit card fees 172 — 23 — — 195 – Insurance, protection and investments 32 — — — — 32 – Credit cards 37 — — — — 37 – Non-banking and other fees (2) 1 4 29 — 7 41 Total fee and commission income 242 4 52 — 7 305 Fee and commission expense (136) — (10) — (8) (154) Net fee and commission income 106 4 42 — (1) 151 31 December 2021 Customer loans 183,023 4,984 16,997 — 2,284 207,288 Total assets (3) 190,629 8,873 16,997 — 70,599 287,098 Customer deposits 156,991 — 25,597 — 3,627 186,215 Total liabilities 157,622 1,173 25,613 — 86,588 270,996 (1) The disaggregation of fees and commission income as shown above is not included in reports provided to the chief operating decision maker but is provided to show the split by reportable segments. (2) Non-banking and other fees include mortgages (except mortgage account fees), consumer finance, commitment commission, asset finance, invoice finance and trade finance. (3) Includes customer loans, net of credit impairment loss allowances. (4) Restated to reflect the resegmentation of the Retail Banking segment into the Retail Banking and Consumer Finance segments described above, and a refinement of our fee and commission income disaggregation. |
Operating Expenses Before Cre_2
Operating Expenses Before Credit Impairment Losses, Provisions and Charges (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Expenses by nature [abstract] | |
Summary of Operating Expenses Before Credit Impairment Losses, Provisions and Charges | 30 June 2022 30 June 2021 £m £m Staff costs 556 577 Other administration expenses 458 431 Depreciation, amortisation and impairment 158 320 1,172 1,328 |
Credit Impairment Losses and _2
Credit Impairment Losses and Provisions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Credit Impairment Loss And Provisions [Abstract] | |
Summary of Impairment Losses and Provisions | 30 June 2022 30 June 2021 £m £m Credit impairment losses/(write-backs): Loans and advances to customers 114 (33) Recoveries of loans and advances, net of collection costs (6) (13) Off-balance sheet exposures (See Note 24) 10 (24) 118 (70) Provisions for other liabilities and charges (excluding off-balance sheet credit exposures) (See Note 24) 121 191 Releases for residual value and voluntary termination (3) (1) 118 190 236 120 |
Taxation (Tables)
Taxation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Major components of tax expense (income) [abstract] | |
Schedule of Tax on Profit Before Tax Differs from Theoretical Amount that Arise Using Basic Corporation Tax Rate | The Santander UK group’s effective tax rate for H122 was 23.6% (H121: 27.6%). The tax on profit from continuing operations before tax differs from the theoretical amount that would arise using the basic corporation tax rate as follows: For the Half Year to 30 June 2022 30 June 2021 £m £m Profit from continuing operations before tax 982 743 Tax calculated at a tax rate of 19% (H121: 19%) 187 141 Bank surcharge on profits 70 49 Non-deductible preference dividends paid 5 6 Non-deductible UK Bank Levy 8 14 Non-deductible conduct remediation, fines and penalties (1) — Other non-deductible costs and non-taxable income 8 14 Effect of change in tax rate on deferred tax provision (23) 13 Tax relief on dividends in respect of other equity instruments (22) (32) Tax on profit from continuing operations 232 205 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
Disclosure of Notional Amounts and Fair Values of Derivatives | 30 June 2022 31 December 2021 Fair value Fair value Notional amount Assets Liabilities Notional amount Assets Liabilities £m £m £m £m £m £m Derivatives held for trading: Exchange rate contracts 13,712 287 314 11,036 159 168 Interest rate contracts 29,363 404 602 25,148 463 485 Equity and credit contracts 1,005 141 35 1,056 161 54 Total derivatives held for trading 44,080 832 951 37,240 783 707 Derivatives held for hedging Designated as fair value hedges: Exchange rate contracts 490 20 2 590 39 — Interest rate contracts 83,070 1,377 447 80,514 904 737 83,560 1,397 449 81,104 943 737 Designated as cash flow hedges: Exchange rate contracts 24,636 1,602 111 22,239 996 338 Interest rate contracts 25,361 223 992 21,466 180 216 49,997 1,825 1,103 43,705 1,176 554 Total derivatives held for hedging 133,557 3,222 1,552 124,809 2,119 1,291 Derivative netting (1) (1,783) (1,783) (1,221) (1,221) Total derivatives 177,637 2,271 720 162,049 1,681 777 (1) Derivative netting excludes the effect of cash collateral, which is offset against the gross derivative position. The amount of cash collateral received that had been offset against the gross derivative assets was £557m ( 2021 : £189m ) and the amount of cash collateral paid that had been offset against the gross derivative liabilities was £557m ( 2021 : £202m ). |
Other Financial Assets at Fai_2
Other Financial Assets at Fair Value Through Profit or Loss (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Financial assets at fair value through profit or loss [abstract] | |
Summary of Other Financial Assets at Fair Value Through Profit or Loss | 30 June 2022 31 December 2021 £m £m Loans and advances to customers: Loans to housing associations 11 12 Other loans 49 62 60 74 Debt securities 95 111 155 185 |
Loans and Advances to Custome_2
Loans and Advances to Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Net Loans And Advances To Customers [Abstract] | |
Summary of Net Loans and Advances to Customers | 30 June 2022 31 December 2021 £m £m Loans and advances to customers 217,910 210,947 Credit impairment loss allowances on loans and advances to customers (876) (828) Residual value and voluntary termination provisions on finance leases (22) (25) Net loans and advances to customers 217,012 210,094 |
Securitisations and Covered B_2
Securitisations and Covered Bonds (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Securitisations And Covered Bonds [Abstract] | |
Disclosure of Analysis of Securitisations and Covered Bonds | The gross assets securitised, or for the covered bond programme assigned at 30 June 2022 and 31 December 2021 were: 30 June 2022 31 December 2021 £m £m Mortgage-backed master trust structures: – Holmes 2,010 2,294 – Fosse 1,910 2,154 3,920 4,448 Other asset-backed securitisation structures: – Motor 18 38 18 38 Total securitisation programmes 3,938 4,486 Covered bond programmes – Euro 35bn Global Covered Bond Programme 20,245 15,713 Total securitisation and covered bond programmes 24,183 20,199 |
Summary of Issuances and Redemptions of Securitisation and Covered Bond Programme | The following table sets out the internal and external issuances and redemptions in H122 and H121 for each securitisation and covered bond programme. Internal issuances External issuances Internal redemptions External redemptions H122 H121 H122 H121 H122 H121 H122 H121 £bn £bn £bn £bn £bn £bn £bn £bn Mortgage-backed master trust structures: – Holmes — — — — — — — 0.3 – Langton — — — — — 2.4 — — Other asset-backed securitisation structures: – Motor — — — — — 0.1 — — – Auto ABS UK Loans — — — — — 0.1 — 0.1 Covered bond programme — — — — — — — 4.5 — — — — — 2.6 — 4.9 |
Reverse Repurchase Agreements_2
Reverse Repurchase Agreements - Non Trading (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Reserve Repurchase Agreements Non-Trading [Abstract] | |
Summary of Reverse Repurchase Agreements - Non Trading | 30 June 2022 31 December 2021 £m £m Agreements with banks 475 447 Agreements with customers 8,318 12,236 8,793 12,683 |
Other Financial Assets at Amo_2
Other Financial Assets at Amortised Cost (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Financial assets at fair value through profit or loss [abstract] | |
Summary of Other Financial Assets at Amortised Cost | 30 June 2022 31 December 2021 £m £m Asset backed securities 94 443 Debt securities 62 63 0 156 506 |
Financial Assets at Fair Valu_2
Financial Assets at Fair Value Through Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Financial assets at fair value through other comprehensive income [abstract] | |
Summary of Financial Assets at Fair Value Through Other Comprehensive Income | 30 June 2022 31 December 2021 £m £m Debt securities 4,894 5,833 Loans and advances to customers 19 18 4,913 5,851 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, plant and equipment [abstract] | |
Disclosure of Detailed Information about Property, Plant and Equipment | Property Office fixtures and equipment Computer software Operating lease assets Right-of-use assets Total (1) £m £m £m £m £m £m Cost: At 1 January 2022 978 1,049 434 755 254 3,470 Additions 31 29 — 112 32 204 Reclassification to assets held for sale (109) (31) — — — (140) Disposals (25) (268) (363) (126) (23) (805) At 30 June 2022 875 779 71 741 263 2,729 Accumulated depreciation: At 1 January 2022 334 857 434 160 137 1,922 Charge for the period 10 34 — 41 9 94 Impairment during the period 8 2 — — — 10 Reclassification to assets held for sale (62) (29) — — — (91) Disposals (16) (265) (363) (51) (1) (696) At 30 June 2022 274 599 71 150 145 1,239 Net book value 601 180 — 591 118 1,490 (1) Property, plant and equipment includes assets under construction of £155m (2021: £106m) and investment properties of £20m (2021: £17m). |
Other Financial Liabilities a_2
Other Financial Liabilities at Fair Value Through Profit or Loss (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of financial liabilities [abstract] | |
Summary of Other Financial Liabilities at Fair Value Through Profit or Loss | 30 June 2022 31 December 2021 £m £m US$30bn Euro Medium Term Note Programme 3 5 Structured Notes Programmes 353 413 Eurobonds 110 142 Structured deposits 346 223 Collateral and associated financial guarantees 15 20 827 803 |
Deposits by Customers (Tables)
Deposits by Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deposits from customers [abstract] | |
Schedule of Deposits by Customers | 30 June 2022 31 December 2021 £m £m Demand and time deposits (1) 183,553 185,843 Amounts due to other Santander UK Group Holdings plc subsidiaries 63 59 Amounts due to Santander UK Group Holdings plc (2) 4,987 5,874 Amounts due to fellow Banco Santander subsidiaries and joint ventures 1,126 1,150 189,729 192,926 (1) Includes equity index-linked deposits of £520m (2021: £549m). The capital amount guaranteed/protected and the amount of return guaranteed in respect of the equity index-linked deposits were £520m and £2m (2021: £549m and £2m) respectively. (2) Includes downstreamed funding from our immediate parent company Santander UK Group Holdings plc. |
Deposits by Banks (Tables)
Deposits by Banks (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Deposits From Banks [Abstract] | |
Schedule of Deposits by Banks | 30 June 2022 31 December 2021 £m £m Items in the course of transmission 447 414 Deposits held as collateral 1,627 931 Other deposits (1) 33,105 32,507 Amounts due to Santander UK subsidiaries 3 3 35,182 33,855 (1) Includes drawdown from the TFS of £0.0bn (2021:£0.0bn) and drawdown from the TFSME of |
Repurchase Agreements - Non T_2
Repurchase Agreements - Non Trading (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Repurchase Agreements [Abstract] | |
Summary of Repurchase Agreements - Non Trading | 30 June 2022 31 December 2021 £m £m Agreements with banks 2,558 4,145 Agreements with customers 4,352 7,573 6,910 11,718 |
Debt Securities in Issue (Table
Debt Securities in Issue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Securities In Issue [Abstract] | |
Summary of Debt Securities in Issue | 30 June 2022 31 December 2021 £m £m Medium-term notes 7,972 6,851 Euro 35bn Global Covered Bond Programme 15,952 12,760 US$20bn Commercial Paper Programmes 3,434 2,704 Certificates of deposit 1,667 2,387 Credit linked notes 60 59 Securitisation programmes 436 759 29,521 25,520 |
Subordinated Liabilities (Table
Subordinated Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Subordinated liabilities [abstract] | |
Schedule of Subordinated Liabilities | 30 June 2022 31 December 2021 £m £m 2,335 2,228 |
Provisions (Tables)
Provisions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of other provisions [abstract] | |
Summary of Provisions Reconciliation | Customer remediation Litigation and other regulatory Bank Levy Property ECL on undrawn facilities and guarantees Restructuring Other Total £m £m £m £m £m £m £m £m At 1 January 2022 44 166 1 74 38 28 13 364 Additional provisions (See Note 5) 25 16 — 1 10 8 84 144 Provisions released (See Note 5) (12) (1) — — — — — (13) Utilisation and other (8) (15) (1) (11) (2) (12) (83) (132) At 30 June 2022 49 166 — 64 46 24 14 363 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of net defined benefit liability (asset) [abstract] | |
Summary of Retirement Benefit Plans | The amounts recognised in the balance sheet were as follows: 30 June 2022 31 December 2021 £m £m Assets/(liabilities) Funded defined benefit pension scheme - surplus 2,011 1,572 Unfunded pension and post-retirement medical benefits (29) (37) Total net assets 1,982 1,535 |
Summary of Amounts Recognised in Other Comprehensive Income | The amounts recognised in other comprehensive income were as follows: 30 June 2022 30 June 2021 £m £m Return on plan assets (excluding amounts included in net interest expense) 3,352 383 Actuarial gains arising from experience adjustments 296 (30) Actuarial gains arising from changes in financial assumptions (3,974) (1,098) Pension remeasurement (326) (745) |
Summary of Net Assets Recognised | The net assets recognised in the balance sheet were determined as follows: 30 June 2022 31 December 2021 £m £m Present value of defined benefit obligations (9,138) (12,878) Fair value of scheme assets 11,120 14,413 Net defined benefit assets 1,982 1,535 |
Summary of Principal Actuarial Assumptions Used for Defined Benefit Schemes | The principal actuarial assumptions used for the defined benefit schemes were: 30 June 2022 31 December 2021 % % To determine benefit obligations (1) : – Discount rate for scheme liabilities 3.8 1.9 – General price inflation 3.1 3.4 – General salary increase 1.0 1.0 – Expected rate of pension increase 3.0 3.2 Years Years Longevity at 60 for current pensioners, on the valuation date: – Males 27.5 27.5 – Females 30.2 30.1 Longevity at 60 for future pensioners currently aged 40, on the valuation date: – Males 29.1 29.0 – Females 31.7 31.6 (1) The discount rate and inflation related assumptions set out in the table above reflect the assumptions calculated based on the Scheme’s duration and cash flow profile as a whole. The actual assumptions used were determined for each section independently based on each section’s duration and cash flow profile. |
Summary of Actuarial Assumption Sensitivities | The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. (Decrease)/increase Change in pension obligation at period end from 30 June 2022 31 December 2021 Assumption £m £m Discount rate 25 bps increase (335) (571) General price inflation 25 bps increase 239 392 Mortality Each additional year of longevity assumed 256 478 |
Contingent Liabilities and Co_2
Contingent Liabilities and Commitments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of contingent liabilities [abstract] | |
Summary of Contingent Liabilities and Commitments | 30 June 2022 31 December 2021 £m £m Guarantees given to third parties 428 363 Formal standby facilities, credit lines and other commitments 37,224 37,346 37,652 37,709 |
Other Equity Instruments (Table
Other Equity Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of classes of share capital [abstract] | |
Summary of Other Equity Instruments | Interest rate 30 June 2022 31 December 2021 % Next call date £m £m £300m Step-up Callable Perpetual Reserve Capital Instruments 7.037 February 2026 — 235 AT1 securities: - £500m Perpetual Capital Securities 6.75 June 2024 496 496 - £750m Perpetual Capital Securities 7.375 June 2022 — 750 - £500m Perpetual Capital Securities 5.18 n/a — — - £500m Perpetual Capital Securities 6.30 March 2025 500 500 - £210m Perpetual Capital Securities 4.25 March 2026 210 210 - £750m Perpetual Capital Securities 6.50 September 2027 750 — 1,956 2,191 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Disclosure of Analysis of Fair Value of Financial Instruments Carried at Amortised Cost | The following tables analyse the fair value of the financial instruments carried at amortised cost at 30 June 2022 and 31 December 2021. It does not include fair value information for financial assets and financial liabilities carried at amortised cost if the carrying amount is a reasonable approximation of fair value. Details of the valuation methodology of the financial assets and financial liabilities carried at amortised cost can be found in Note 40(e) to the Consolidated Financial Statements in the 2021 Annual Report. 30 June 2022 31 December 2021 Fair value Carrying Fair value Carrying Level 1 Level 2 Level 3 Fair value value Level 1 Level 2 Level 3 Fair value value £m £m £m £m £m £m £m £m £m £m Assets Loans and advances to customers — — 215,234 215,234 217,012 — — 212,811 212,811 210,094 Loans and advances to banks — 793 — 793 793 — 1,169 — 1,169 1,169 Reverse repurchase agreements - non trading — 8,785 — 8,785 8,793 — 12,453 226 12,679 12,683 Other financial assets at amortised cost 151 — — 151 156 164 348 — 512 506 151 9,578 215,234 224,963 226,754 164 13,970 213,037 227,171 224,452 Liabilities Deposits by customers — 210 189,516 189,726 189,729 — 48 192,898 192,946 192,926 Deposits by banks — 35,012 63 35,075 35,182 — 33,770 85 33,855 33,855 Repurchase agreements - non trading — 6,910 — 6,910 6,910 — 11,718 — 11,718 11,718 Debt securities in issue 2,349 22,569 4,622 29,540 29,521 963 23,926 1,218 26,107 25,520 Subordinated liabilities 19 2,610 — 2,629 2,335 37 2,350 238 2,625 2,228 2,368 67,311 194,201 263,880 263,677 1,000 71,812 194,439 267,251 266,247 |
Disclosure of Analysis of Fair Value of Financial Instruments Measured at Fair Value on a Recurring Basis | The following tables summarise the fair values of the financial assets and liabilities accounted for at fair value at 30 June 2022 and 31 December 2021, analysed by their levels in the fair value hierarchy - Level 1, Level 2 and Level 3. 30 June 2022 31 December 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Valuation £m £m £m £m £m £m £m £m technique Assets Derivative financial instruments Exchange rate contracts — 1,909 — 1,909 — 1,193 1 1,194 A Interest rate contracts — 2,002 2 2,004 — 1,547 — 1,547 A & C Equity and credit contracts — 102 39 141 — 116 45 161 B & D Netting — (1,783) — (1,783) — (1,221) — (1,221) — 2,230 41 2,271 — 1,635 46 1,681 Other financial assets at FVTPL Loans and advances to customers — — 60 60 — — 74 74 A Debt securities — — 95 95 — — 111 111 A, B & D — — 155 155 — — 185 185 Financial assets at FVOCI Debt securities 4,894 — — 4,894 5,833 — — 5,833 D Loans and advances to customers — — 19 19 — — 18 18 D 4,894 — 19 4,913 5,833 — 18 5,851 Total assets at fair value 4,894 2,230 215 7,339 5,833 1,635 249 7,717 Liabilities Derivative financial instruments Exchange rate contracts — 427 — 427 — 506 — 506 A Interest rate contracts — 2,038 3 2,041 — 1,436 2 1,438 A & C Equity and credit contracts — 22 13 35 — 24 30 54 B & D Netting — (1,783) — (1,783) — (1,221) — (1,221) — 704 16 720 — 745 32 777 Other financial liabilities at FVTPL Debt securities in issue — 463 3 466 — 555 5 560 A Structured deposits — 346 — 346 — 223 — 223 A Collateral and associated financial guarantees — 15 — 15 — 19 1 20 D — 824 3 827 — 797 6 803 Total liabilities at fair value — 1,528 19 1,547 — 1,542 38 1,580 |
Summary of Fair Value Adjustment | The magnitude and types of fair value adjustment are listed in the following table: 30 June 2022 31 December 2021 £m £m Risk-related: - Bid-offer and trade specific adjustments (15) (9) - Uncertainty 15 20 - Credit risk adjustment 6 6 - Funding fair value adjustment 4 3 10 20 |
Summary of Reconciliation of Fair Value Measurement in Level 3 of the Fair Value Hierarchy | The following table sets out the movements in Level 3 financial instruments in H122: Assets Liabilities Derivatives Other financial assets at FVTPL Financial assets at FVOCI Total Derivatives Other financial liabilities at FVTPL Total £m £m £m £m £m £m £m At 1 January 2022 46 185 18 249 (32) (6) (38) Total (losses)/gains recognised: Fair value movements (2) (2) (18) 1 (19) — 5 5 Transfers in — — — — (2) — (2) Netting (1) — — — — — (4) (4) Settlements (3) (12) — (15) 18 2 20 At 30 June 2022 41 155 19 215 (16) (3) (19) Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period (2) (2) (18) 1 (19) — 5 5 (1) This relates to the effect of netting on the fair value of the credit linked notes due to a legal right of set-off between the principal amounts of the senior notes and the associated cash deposits. For more, see ‘ii) Credit protection entities’ in Note 19 to the Consolidated Financial Statements in the 2021 Annual Report. |
Interest Rate Benchmark Reform
Interest Rate Benchmark Reform (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Interest Rate Benchmark Reform [Abstract] | |
Schedule of Amounts Affected by IBOR Reform | The following tables show the notional amounts of assets, liabilities and off-balance sheet commitments at 30 June 2022 and 31 December 2021 affected by IBOR reform that have yet to transition to an alternative benchmark interest rate as provided internally to key management personnel. 30 June 2022 GBP (2) LIBOR USD (2) LIBOR Other (2) Total £m £m £m £m Assets Derivatives (1) — 1,650 — 1,650 Financial assets at amortised cost 85 17 — 102 85 1,667 — 1,752 Liabilities Derivatives (1) 130 1,830 — 1,960 Other financial liabilities at fair value through profit and loss — 3 — 3 130 1,833 — 1,963 Off-balance sheet commitments given 8 79 — 87 31 December 2021 GBP (2) LIBOR USD (2) LIBOR Other (2) Total £m £m £m £m Assets Derivatives (1) — 1,480 — 1,480 Other financial assets at fair value through profit and loss 8 — — 8 Financial assets at amortised cost 1,373 81 1 1,455 1,381 1,561 1 2,943 Liabilities Derivatives (1) 338 1,831 — 2,169 Other financial liabilities at fair value through profit and loss — 5 — 5 Financial liabilities at amortised cost 34 185 — 219 372 2,021 — 2,393 Off-balance sheet commitments given 338 59 — 397 (1) Many of the Santander UK group's derivatives subject to IBOR reform are standard ISDA contracts and are subject to supplementary ISDA fallback provisions which became effective on 25 January 2021 setting out what floating rates apply on the permanent discontinuation of key IBORs. The Santander UK group adhered to the protocol and implemented the fallback provisions to derivative contracts entered into before 25 January 2021. Where derivative counterparties also adhered to the protocol, fallback provisions were automatically implemented in existing derivative contracts when the supplement became effective. 1-month, 3-month and 6-month GBP & JPY settings for certain legacy contracts have been extended until at least the end of 2022 but not for cleared derivative contracts. (2) Settings for GBP, JPY & NOK LIBOR & 1-week and 2-month USD LIBOR ceased on 31 December 2021 and for EONIA on 3 January 2022, however, for certain legacy contracts, 1-month, 3-month and 6-month settings for GBP & JPY LIBOR have been extended until at least 31 December 2022. Remaining USD LIBOR settings (overnight, 1-month, 3-month, 6-month and 12-month) will cease on 30 June 2023. |
Schedule of Derivatives Directly Affected by IBOR Reform Uncertainties | The table below shows the notional amount of derivatives in hedging relationships directly affected by uncertainties related to IBOR reform. 30 June 2022 31 December 2021 GBP USD Other Total GBP USD Other Total £m £m £m £m £m £m £m £m Total notional value of hedging instruments – Cash flow hedges — 2,881 — 2,881 — 2,586 — 2,586 – Fair value hedges — 176 — 176 — 160 — 160 — 3,057 — 3,057 — 2,746 — 2,746 Maturing after cessation date (1) – Cash flow hedges — 2,881 — 2,881 — 2,586 — 2,586 – Fair value hedges — 176 — 176 — 160 — 160 — 3,057 — 3,057 — 2,746 — 2,746 (1) Settings for GBP, JPY & NOK LIBOR & 1-week and 2-month USD LIBOR ceased on 31 December 2021 and for EONIA on 3 January 2022, however, for certain legacy contracts, 1-month, 3-month and 6-month settings for GBP & JPY LIBOR have been extended until at least 31 December 2022. Remaining USD LIBOR settings (overnight, 1-month, 3-month, 6-month and 12-month) will cease on 30 June 2023. |
Discontinued Operations and A_2
Discontinued Operations and Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Assets and Liabilities Held for Sale [Abstract] | |
Disclosure of Financial Performance Relating to Discontinued Operations | For the periods prior to its sale, the Corporate & Investment Banking business met the requirements for presentation as discontinued operations. The financial performance and cash flow information relating to the discontinued operations were as follows: For the Half Year to 30 June 2022 30 June 2021 £m £m Net interest income — 24 Net fee and commission income — 27 Total operating income — 51 Operating expenses before credit impairment losses, provisions and charges — (22) Credit impairment losses — 7 Provisions for other liabilities and charges — (3) Total operating credit impairment losses, provisions and charges — 4 Profit from discontinued operations before tax — 33 Tax on profit from discontinued operations — (9) Profit from discontinued operations after tax — 24 |
Disclosure of Assets Classified as Held for Sale | At 30 June 2022, assets held for sale comprised: £m Assets Property, plant and equipment 49 Total assets held for sale 49 |
Segments (Details)
Segments (Details) - GBP (£) £ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | |||
Net interest income | £ 2,120 | £ 1,905 | |
Non-interest income | 270 | 286 | |
Total operating income | 2,390 | 2,191 | |
Operating expenses before credit impairment (losses)/write-backs, provisions and charges | (1,172) | (1,328) | |
Credit impairment (losses)/write-backs | (118) | 70 | |
Provisions for other liabilities and charges | (118) | (190) | |
Total operating credit impairment (losses)/write-backs, provisions and charges | (236) | (120) | |
Profit from continuing operations before tax | 982 | 743 | |
Revenue from external customers | 2,390 | 2,191 | |
Inter-segment revenue | 2,390 | 2,191 | |
Revenue from external customers includes the following fee and commission income disaggregated by income type | |||
Current account and debit card fees | 247 | 195 | |
Insurance, protection and investments | 31 | 32 | |
Credit cards | 46 | 37 | |
Non-banking and other fees | 53 | 41 | |
Total fee and commission income | 377 | 305 | |
Fee and commission expense | (209) | (154) | |
Net fee and commission income | 168 | 151 | |
Customer loans | 213,516 | £ 207,288 | |
Total assets | 284,317 | 287,098 | |
Assets held for sale | 49 | 0 | |
Customer deposits | 184,004 | 186,215 | |
Total liabilities | 268,644 | 270,996 | |
Inter-segment revenue | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue | 0 | 0 | |
Retail Banking | |||
Disclosure of operating segments [line items] | |||
Net interest income | 1,784 | 1,602 | |
Non-interest income | 116 | 109 | |
Total operating income | 1,900 | 1,711 | |
Operating expenses before credit impairment (losses)/write-backs, provisions and charges | (831) | (858) | |
Credit impairment (losses)/write-backs | (126) | 28 | |
Provisions for other liabilities and charges | (101) | (67) | |
Total operating credit impairment (losses)/write-backs, provisions and charges | (227) | (39) | |
Profit from continuing operations before tax | 842 | 814 | |
Revenue from external customers | 2,033 | 1,939 | |
Revenue from external customers includes the following fee and commission income disaggregated by income type | |||
Current account and debit card fees | 218 | 172 | |
Insurance, protection and investments | 31 | 32 | |
Credit cards | 46 | 37 | |
Non-banking and other fees | 4 | 1 | |
Total fee and commission income | 299 | 242 | |
Fee and commission expense | (191) | (136) | |
Net fee and commission income | 108 | 106 | |
Customer loans | 189,318 | 183,023 | |
Total assets | 196,505 | 190,629 | |
Assets held for sale | 0 | ||
Customer deposits | 154,759 | 156,991 | |
Total liabilities | 155,199 | 157,622 | |
Retail Banking | Inter-segment revenue | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue | (133) | (228) | |
Consumer Finance | |||
Disclosure of operating segments [line items] | |||
Net interest income | 92 | 135 | |
Non-interest income | 101 | 77 | |
Total operating income | 193 | 212 | |
Operating expenses before credit impairment (losses)/write-backs, provisions and charges | (73) | (90) | |
Credit impairment (losses)/write-backs | (13) | 20 | |
Provisions for other liabilities and charges | 0 | 0 | |
Total operating credit impairment (losses)/write-backs, provisions and charges | (13) | 20 | |
Profit from continuing operations before tax | 107 | 142 | |
Revenue from external customers | 243 | 255 | |
Revenue from external customers includes the following fee and commission income disaggregated by income type | |||
Current account and debit card fees | 0 | 0 | |
Insurance, protection and investments | 0 | 0 | |
Credit cards | 0 | 0 | |
Non-banking and other fees | 8 | 4 | |
Total fee and commission income | 8 | 4 | |
Fee and commission expense | 0 | 0 | |
Net fee and commission income | 8 | 4 | |
Customer loans | 5,129 | 4,984 | |
Total assets | 9,652 | 8,873 | |
Assets held for sale | 0 | ||
Customer deposits | 0 | 0 | |
Total liabilities | 1,153 | 1,173 | |
Consumer Finance | Inter-segment revenue | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue | (50) | (43) | |
Corporate & Commercial Banking | |||
Disclosure of operating segments [line items] | |||
Net interest income | 242 | 202 | |
Non-interest income | 69 | 51 | |
Total operating income | 311 | 253 | |
Operating expenses before credit impairment (losses)/write-backs, provisions and charges | (181) | (181) | |
Credit impairment (losses)/write-backs | 19 | 23 | |
Provisions for other liabilities and charges | (2) | (5) | |
Total operating credit impairment (losses)/write-backs, provisions and charges | 17 | 18 | |
Profit from continuing operations before tax | 147 | 90 | |
Revenue from external customers | 318 | 272 | |
Revenue from external customers includes the following fee and commission income disaggregated by income type | |||
Current account and debit card fees | 29 | 23 | |
Insurance, protection and investments | 0 | 0 | |
Credit cards | 0 | 0 | |
Non-banking and other fees | 36 | 29 | |
Total fee and commission income | 65 | 52 | |
Fee and commission expense | (11) | (10) | |
Net fee and commission income | 54 | 42 | |
Customer loans | 17,358 | 16,997 | |
Total assets | 17,358 | 16,997 | |
Assets held for sale | 0 | ||
Customer deposits | 25,305 | 25,597 | |
Total liabilities | 25,326 | 25,613 | |
Corporate & Commercial Banking | Inter-segment revenue | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue | (7) | (19) | |
Corporate & Investment Banking | |||
Disclosure of operating segments [line items] | |||
Net interest income | 0 | ||
Non-interest income | 0 | ||
Total operating income | 0 | ||
Operating expenses before credit impairment (losses)/write-backs, provisions and charges | 0 | ||
Credit impairment (losses)/write-backs | 0 | ||
Provisions for other liabilities and charges | 0 | ||
Total operating credit impairment (losses)/write-backs, provisions and charges | 0 | ||
Profit from continuing operations before tax | 0 | ||
Revenue from external customers | 0 | ||
Revenue from external customers includes the following fee and commission income disaggregated by income type | |||
Current account and debit card fees | 0 | ||
Insurance, protection and investments | 0 | ||
Credit cards | 0 | ||
Non-banking and other fees | 0 | ||
Total fee and commission income | 0 | ||
Fee and commission expense | 0 | ||
Net fee and commission income | 0 | ||
Customer loans | 0 | ||
Total assets | 0 | ||
Customer deposits | 0 | ||
Total liabilities | 0 | ||
Corporate & Investment Banking | Inter-segment revenue | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue | 0 | ||
Corporate Centre | |||
Disclosure of operating segments [line items] | |||
Net interest income | 2 | (34) | |
Non-interest income | (16) | 49 | |
Total operating income | (14) | 15 | |
Operating expenses before credit impairment (losses)/write-backs, provisions and charges | (87) | (199) | |
Credit impairment (losses)/write-backs | 2 | (1) | |
Provisions for other liabilities and charges | (15) | (118) | |
Total operating credit impairment (losses)/write-backs, provisions and charges | (13) | (119) | |
Profit from continuing operations before tax | (114) | (303) | |
Revenue from external customers | (204) | (275) | |
Revenue from external customers includes the following fee and commission income disaggregated by income type | |||
Current account and debit card fees | 0 | 0 | |
Insurance, protection and investments | 0 | 0 | |
Credit cards | 0 | 0 | |
Non-banking and other fees | 5 | 7 | |
Total fee and commission income | 5 | 7 | |
Fee and commission expense | (7) | (8) | |
Net fee and commission income | (2) | (1) | |
Customer loans | 1,711 | 2,284 | |
Total assets | 60,802 | 70,599 | |
Assets held for sale | 49 | ||
Customer deposits | 3,940 | 3,627 | |
Total liabilities | 86,966 | £ 86,588 | |
Corporate Centre | Inter-segment revenue | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue | £ 190 | £ 290 |
Other Operating Income (Details
Other Operating Income (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Net Trading And Other Income [abstract] | ||
Loss on repurchase of debt securities and subordinated liabilities | £ 1 | |
Loss on repurchase of debt securities | £ 27 |
Operating Expenses Before Cre_3
Operating Expenses Before Credit Impairment Losses, Provisions and Charges - Summary of Operating Expenses Before Credit Impairment Losses, Provisions and Charges (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Expenses by nature [abstract] | ||
Staff costs | £ 556 | £ 577 |
Other administration expenses | 458 | 431 |
Depreciation, amortisation and impairment | 158 | 320 |
Total operating expenses before impairment losses, provisions and charges | £ 1,172 | £ 1,328 |
Operating Expenses Before Cre_4
Operating Expenses Before Credit Impairment Losses, Provisions and Charges - Additional Information (Details) - Accumulated depreciation - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Expenses Before Credit Impairment Losses Provision And Charges [Line Items] | ||
Impairment during the period | £ (10) | |
Branch and head office site closures | ||
Operating Expenses Before Credit Impairment Losses Provision And Charges [Line Items] | ||
Impairment during the period | £ 10 | £ 105 |
Credit Impairment Losses and _3
Credit Impairment Losses and Provisions - Summary of Impairment Losses and Provisions (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Credit Impairment Loss And Provisions [Abstract] | ||
Loans and advances to customers | £ 114 | £ (33) |
Recoveries of loans and advances, net of collection costs | (6) | (13) |
Off-balance sheet exposures (See Note 24) | 10 | (24) |
Impairment loss on financial assets | 118 | (70) |
Provisions for other liabilities and charges (excluding off-balance sheet credit exposures) (See Note 24) | 121 | 191 |
Releases for residual value and voluntary termination | (3) | (1) |
Provisions for other liabilities and charges | 118 | 190 |
Total operating credit impairment loss/(release), provisions and charges | £ 236 | £ 120 |
Credit Impairment Losses and _4
Credit Impairment Losses and Provisions - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Credit Impairment Loss And Provisions [Abstract] | ||
Impairment losses on loans and advances to banks | £ 0 | £ 0 |
Impairment losses on non-trading reverse repurchase agreements | 0 | 0 |
Impairment losses on other financial assets at amortised cost | 0 | 0 |
Impairment losses on financial assets at FVOCI | £ 0 | £ 0 |
Taxation - Additional Informati
Taxation - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Expense Benefits [Line Items] | ||
Effective tax rate (percentage) | 23.60% | 27.60% |
Forecast | ||
Income Tax Expense Benefits [Line Items] | ||
Effective tax rate (percentage) | 26% | 25.80% |
Taxation - Schedule of Tax on P
Taxation - Schedule of Tax on Profit Before Tax Differs from Theoretical Amount that Arise Using Basic Corporation Tax Rate (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Major components of tax expense (income) [abstract] | ||
Profit from continuing operations before tax | £ 982 | £ 743 |
Tax calculated at a tax rate of 19% (H121: 19%) | 187 | 141 |
Bank surcharge on profits | 70 | 49 |
Non-deductible preference dividends paid | 5 | 6 |
Non-deductible UK Bank Levy | 8 | 14 |
Non-deductible conduct remediation, fines and penalties | (1) | 0 |
Other non-deductible costs and non-taxable income | 8 | 14 |
Effect of change in tax rate on deferred tax provision | (23) | 13 |
Tax relief on dividends in respect of other equity instruments | (22) | (32) |
Tax on profit from continuing operations | £ 232 | £ 205 |
Dividends on Ordinary Shares (D
Dividends on Ordinary Shares (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Dividends On Ordinary Shares [Abstract] | ||
Dividends declared and paid | £ 389 | £ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about hedges | ||
Notional amount | £ 177,637 | £ 162,049 |
Assets | 2,271 | 1,681 |
Liabilities | 720 | 777 |
Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Notional amount | 44,080 | 37,240 |
Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 133,557 | 124,809 |
Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 83,560 | 81,104 |
Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 49,997 | 43,705 |
Exchange rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Notional amount | 13,712 | 11,036 |
Exchange rate contracts | Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 490 | 590 |
Exchange rate contracts | Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 24,636 | 22,239 |
Interest rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Notional amount | 29,363 | 25,148 |
Interest rate contracts | Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 83,070 | 80,514 |
Interest rate contracts | Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 25,361 | 21,466 |
Equity and credit contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Notional amount | 1,005 | 1,056 |
Derivative assets | ||
Disclosure of detailed information about hedges | ||
Cash collateral received subject to enforceable master netting arrangement or similar agreement not set off against financial assets | 557 | 189 |
Derivative liabilities | ||
Disclosure of detailed information about hedges | ||
Collateral cash | 557 | 202 |
Fair value | ||
Disclosure of detailed information about hedges | ||
Assets | 2,271 | 1,681 |
Liabilities | 720 | 777 |
Fair value | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Assets | 832 | 783 |
Liabilities | 951 | 707 |
Fair value | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 3,222 | 2,119 |
Liabilities | 1,552 | 1,291 |
Fair value | Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 1,397 | 943 |
Liabilities | 449 | 737 |
Fair value | Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 1,825 | 1,176 |
Liabilities | 1,103 | 554 |
Fair value | Exchange rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Assets | 287 | 159 |
Liabilities | 314 | 168 |
Fair value | Exchange rate contracts | Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 20 | 39 |
Liabilities | 2 | 0 |
Fair value | Exchange rate contracts | Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 1,602 | 996 |
Liabilities | 111 | 338 |
Fair value | Interest rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Assets | 404 | 463 |
Liabilities | 602 | 485 |
Fair value | Interest rate contracts | Fair value hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 1,377 | 904 |
Liabilities | 447 | 737 |
Fair value | Interest rate contracts | Cash flow hedges | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 223 | 180 |
Liabilities | 992 | 216 |
Fair value | Equity and credit contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Assets | 141 | 161 |
Liabilities | 35 | 54 |
Fair value | Derivative netting | ||
Disclosure of detailed information about hedges | ||
Assets | (1,783) | (1,221) |
Liabilities | £ (1,783) | £ (1,221) |
Other Financial Assets at Fai_3
Other Financial Assets at Fair Value Through Profit or Loss (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Other Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at fair value through profit or loss | £ 155 | £ 185 |
Loans and advances to customers | ||
Disclosure Of Other Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at fair value through profit or loss | 60 | 74 |
Debt securities | ||
Disclosure Of Other Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at fair value through profit or loss | 95 | 111 |
Loans to housing associations | Loans and advances to customers | ||
Disclosure Of Other Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at fair value through profit or loss | 11 | 12 |
Other loans | Loans and advances to customers | ||
Disclosure Of Other Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at fair value through profit or loss | £ 49 | £ 62 |
Loans and Advances to Custome_3
Loans and Advances to Customers (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Net Loans And Advances To Customers [Abstract] | ||
Loans and advances to customers | £ 217,910 | £ 210,947 |
Credit impairment loss allowances on loans and advances to customers | (876) | (828) |
Residual value and voluntary termination provisions on finance leases | (22) | (25) |
Net loans and advances to customers | £ 217,012 | £ 210,094 |
Securitisations and Covered B_3
Securitisations and Covered Bonds - Disclosure of Analysis of Securitisations and Covered Bonds (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Gross assets | £ 24,183 | £ 20,199 |
Securitisation programmes | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Gross assets | 3,938 | 4,486 |
Securitisation programmes | Mortgage-backed master trust structures: | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Gross assets | 3,920 | 4,448 |
Securitisation programmes | Other asset-backed securitisation structures: | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Gross assets | 18 | 38 |
Holmes | Securitisation programmes | Mortgage-backed master trust structures: | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Gross assets | 2,010 | 2,294 |
Fosse | Securitisation programmes | Mortgage-backed master trust structures: | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Gross assets | 1,910 | 2,154 |
Motor | Securitisation programmes | Other asset-backed securitisation structures: | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Gross assets | 18 | 38 |
Euro 35bn Global Covered Bond Programme | Covered bond programmes | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Gross assets | £ 20,245 | £ 15,713 |
Securitisations and Covered B_4
Securitisations and Covered Bonds - Summary of Issuances and Redemptions of Securitisation and Covered Bond Programme (Details) - GBP (£) £ in Billions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Internal issuances | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | £ 0 | £ 0 |
Internal and external redemptions | 0 | 2.6 |
Internal issuances | Mortgage-backed master trust structures: | Holmes | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0 | 0 |
Internal and external redemptions | 0 | 0 |
Internal issuances | Mortgage-backed master trust structures: | Langton | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0 | 0 |
Internal and external redemptions | 0 | 2.4 |
Internal issuances | Other asset-backed securitisation structures: | Motor | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0 | 0 |
Internal and external redemptions | 0 | 0.1 |
Internal issuances | Other asset-backed securitisation structures: | Auto ABS UK Loans | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0 | 0 |
Internal and external redemptions | 0 | 0.1 |
Internal issuances | Covered bond programmes | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0 | 0 |
Internal and external redemptions | 0 | 0 |
External issuances | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0 | 0 |
Internal and external redemptions | 0 | 4.9 |
External issuances | Mortgage-backed master trust structures: | Holmes | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0 | 0 |
Internal and external redemptions | 0 | 0.3 |
External issuances | Mortgage-backed master trust structures: | Langton | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0 | 0 |
Internal and external redemptions | 0 | 0 |
External issuances | Other asset-backed securitisation structures: | Motor | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0 | 0 |
Internal and external redemptions | 0 | 0 |
External issuances | Other asset-backed securitisation structures: | Auto ABS UK Loans | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0 | 0 |
Internal and external redemptions | 0 | 0.1 |
External issuances | Covered bond programmes | ||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||
Internal and external issuances | 0 | 0 |
Internal and external redemptions | £ 0 | £ 4.5 |
Securitisations and Covered B_5
Securitisations and Covered Bonds - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
PSA Finance UK Limited | Santander Consumer (UK) | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Proportion of ownership interest in subsidiary sold | 50% | |
Langton | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Gain or loss on covered bonds programme redemption | £ 0 |
Reverse Repurchase Agreements_3
Reverse Repurchase Agreements - Non Trading (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Reserve Repurchase Agreements Non-Trading [Line Items] | ||
Repurchase agreements – non trading | £ 8,793 | £ 12,683 |
Agreements with banks | ||
Disclosure Of Reserve Repurchase Agreements Non-Trading [Line Items] | ||
Repurchase agreements – non trading | 475 | 447 |
Agreements with customers | ||
Disclosure Of Reserve Repurchase Agreements Non-Trading [Line Items] | ||
Repurchase agreements – non trading | £ 8,318 | £ 12,236 |
Other Financial Assets at Amo_3
Other Financial Assets at Amortised Cost (Details) - Other financial assets - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at amortised cost | £ 156 | £ 506 |
Asset backed securities | ||
Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at amortised cost | 94 | 443 |
Debt securities | ||
Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at amortised cost | £ 62 | £ 63 |
Financial Assets at Fair Valu_3
Financial Assets at Fair Value Through Other Comprehensive Income (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Financial Assets At Fair Value Through Other Comprehensive Income [Line Items] | ||
Financial assets at FVOCI | £ 4,913 | £ 5,851 |
Debt securities | ||
Disclosure Of Financial Assets At Fair Value Through Other Comprehensive Income [Line Items] | ||
Financial assets at FVOCI | 4,894 | 5,833 |
Loans and advances to customers | ||
Disclosure Of Financial Assets At Fair Value Through Other Comprehensive Income [Line Items] | ||
Financial assets at FVOCI | £ 19 | £ 18 |
Intangible Assets (Details)
Intangible Assets (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | £ 1,199 | £ 1,203 |
Computer software | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets other than goodwill | £ 339 | £ 342 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | £ 1,548 | |
Property, plant and equipment at end of period | 1,490 | |
Construction in progress | 155 | £ 106 |
Investment property | 20 | £ 17 |
Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 3,470 | |
Additions | 204 | |
Reclassification to assets held for sale | (140) | |
Disposals | (805) | |
Property, plant and equipment at end of period | 2,729 | |
Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (1,922) | |
Additions | (94) | |
Impairment during the period | 10 | |
Reclassification to assets held for sale | 91 | |
Disposals | 696 | |
Property, plant and equipment at end of period | (1,239) | |
Property | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at end of period | 601 | |
Property | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 978 | |
Additions | 31 | |
Reclassification to assets held for sale | (109) | |
Disposals | (25) | |
Property, plant and equipment at end of period | 875 | |
Property | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (334) | |
Additions | (10) | |
Impairment during the period | 8 | |
Reclassification to assets held for sale | 62 | |
Disposals | 16 | |
Property, plant and equipment at end of period | (274) | |
Office fixtures and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at end of period | 180 | |
Office fixtures and equipment | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 1,049 | |
Additions | 29 | |
Reclassification to assets held for sale | (31) | |
Disposals | (268) | |
Property, plant and equipment at end of period | 779 | |
Office fixtures and equipment | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (857) | |
Additions | (34) | |
Impairment during the period | 2 | |
Reclassification to assets held for sale | 29 | |
Disposals | 265 | |
Property, plant and equipment at end of period | (599) | |
Computer software | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at end of period | 0 | |
Computer software | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 434 | |
Additions | 0 | |
Reclassification to assets held for sale | 0 | |
Disposals | (363) | |
Property, plant and equipment at end of period | 71 | |
Computer software | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (434) | |
Additions | 0 | |
Impairment during the period | 0 | |
Reclassification to assets held for sale | 0 | |
Disposals | 363 | |
Property, plant and equipment at end of period | (71) | |
Operating lease assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at end of period | 591 | |
Operating lease assets | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 755 | |
Additions | 112 | |
Reclassification to assets held for sale | 0 | |
Disposals | (126) | |
Property, plant and equipment at end of period | 741 | |
Operating lease assets | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (160) | |
Additions | (41) | |
Impairment during the period | 0 | |
Reclassification to assets held for sale | 0 | |
Disposals | 51 | |
Property, plant and equipment at end of period | (150) | |
Right-of-use assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at end of period | 118 | |
Right-of-use assets | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 254 | |
Additions | 32 | |
Reclassification to assets held for sale | 0 | |
Disposals | (23) | |
Property, plant and equipment at end of period | 263 | |
Right-of-use assets | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (137) | |
Additions | (9) | |
Impairment during the period | 0 | |
Reclassification to assets held for sale | 0 | |
Disposals | 1 | |
Property, plant and equipment at end of period | £ (145) |
Other Financial Liabilities a_3
Other Financial Liabilities at Fair Value Through Profit or Loss (Details) £ in Millions | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 USD ($) |
Disclosure Of Other Financial Liabilities At Fair Value Through Profit Or Loss [Line Items] | ||||
Other financial liabilities at fair value through profit or loss | £ 827 | £ 803 | ||
Notional amount | 177,637 | 162,049 | ||
US$30bn Euro Medium Term Note Programme | ||||
Disclosure Of Other Financial Liabilities At Fair Value Through Profit Or Loss [Line Items] | ||||
Other financial liabilities at fair value through profit or loss | 3 | 5 | ||
Notional amount | $ | $ 30,000,000,000 | $ 30,000,000,000 | ||
Structured Notes Programmes | ||||
Disclosure Of Other Financial Liabilities At Fair Value Through Profit Or Loss [Line Items] | ||||
Other financial liabilities at fair value through profit or loss | 353 | 413 | ||
Eurobonds | ||||
Disclosure Of Other Financial Liabilities At Fair Value Through Profit Or Loss [Line Items] | ||||
Other financial liabilities at fair value through profit or loss | 110 | 142 | ||
Structured deposits | ||||
Disclosure Of Other Financial Liabilities At Fair Value Through Profit Or Loss [Line Items] | ||||
Other financial liabilities at fair value through profit or loss | 346 | 223 | ||
Collateral and associated financial guarantees | ||||
Disclosure Of Other Financial Liabilities At Fair Value Through Profit Or Loss [Line Items] | ||||
Other financial liabilities at fair value through profit or loss | £ 15 | £ 20 |
Deposits by Customers (Details)
Deposits by Customers (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | £ 189,729 | £ 192,926 |
Demand and time deposits | ||
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | 183,553 | 185,843 |
Amounts due to other Santander UK Group Holdings plc subsidiaries | ||
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | 63 | 59 |
Amounts due to Santander UK Group Holdings plc | ||
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | 4,987 | 5,874 |
Amounts due to fellow Banco Santander subsidiaries and joint ventures | ||
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | 1,126 | 1,150 |
Equity Index Linked Deposits | ||
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | 520 | 549 |
Capital amount guaranteed or protected | 520 | 549 |
Capital amount of return guaranteed | £ 2 | £ 2 |
Deposits by Banks (Details)
Deposits by Banks (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Deposits From Banks [Line Items] | ||
Deposits by banks | £ 35,182 | £ 33,855 |
Drawdown from TFS | 0 | 0 |
Drawdown from TFSME | 31,900 | 31,900 |
Items in the course of transmission | ||
Disclosure Of Deposits From Banks [Line Items] | ||
Deposits by banks | 447 | 414 |
Deposits held as collateral | ||
Disclosure Of Deposits From Banks [Line Items] | ||
Deposits by banks | 1,627 | 931 |
Other deposits | ||
Disclosure Of Deposits From Banks [Line Items] | ||
Deposits by banks | 33,105 | 32,507 |
Amounts due to Santander UK subsidiaries | ||
Disclosure Of Deposits From Banks [Line Items] | ||
Deposits by banks | £ 3 | £ 3 |
Repurchase Agreements - Non T_3
Repurchase Agreements - Non Trading (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Repurchase Agreements [Line Items] | ||
Repurchase agreements - non trading | £ 6,910 | £ 11,718 |
Agreements with banks | ||
Disclosure Of Repurchase Agreements [Line Items] | ||
Repurchase agreements - non trading | 2,558 | 4,145 |
Agreements with customers | ||
Disclosure Of Repurchase Agreements [Line Items] | ||
Repurchase agreements - non trading | £ 4,352 | £ 7,573 |
Debt Securities in Issue (Detai
Debt Securities in Issue (Details) £ in Millions | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 EUR (€) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) |
Debt Securities In Issue [Line Items] | ||||||
Notional amount | £ 177,637 | £ 162,049 | ||||
Debt securities | 29,521 | 25,520 | ||||
Medium-term notes | ||||||
Debt Securities In Issue [Line Items] | ||||||
Debt securities | 7,972 | 6,851 | ||||
Euro 35bn Global Covered Bond Programme | ||||||
Debt Securities In Issue [Line Items] | ||||||
Notional amount | € | € 35,000,000,000 | € 35,000,000,000 | ||||
Debt securities | 15,952 | 12,760 | ||||
US$20bn Commercial Paper Programmes | ||||||
Debt Securities In Issue [Line Items] | ||||||
Notional amount | $ | $ 20,000,000,000 | $ 20,000,000,000 | ||||
Debt securities | 3,434 | 2,704 | ||||
Certificates of deposit | ||||||
Debt Securities In Issue [Line Items] | ||||||
Debt securities | 1,667 | 2,387 | ||||
Credit linked notes | ||||||
Debt Securities In Issue [Line Items] | ||||||
Credit linked notes | 60 | 59 | ||||
Securitisation programmes | ||||||
Debt Securities In Issue [Line Items] | ||||||
Debt securities | £ 436 | £ 759 |
Subordinated Liabilities - Sche
Subordinated Liabilities - Schedule of Subordinated Liabilities (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Subordinated liabilities [abstract] | ||
Subordinated liabilities | £ 2,335 | £ 2,228 |
Subordinated Liabilities - Addi
Subordinated Liabilities - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Subordinated liabilities [abstract] | ||
Loss on repurchase of debt securities and subordinated liabilities | £ 1 | |
Loss on repurchase of debt securities | £ 27 |
Provisions - Summary of Provisi
Provisions - Summary of Provisions Reconciliation (Details) £ in Millions | 6 Months Ended |
Jun. 30, 2022 GBP (£) | |
Disclosure of other provisions [line items] | |
Beginning balance | £ 364 |
Additional provisions | 144 |
Provision releaseds | (13) |
Utilisation and other | (132) |
Ending balance | 363 |
Customer remediation | |
Disclosure of other provisions [line items] | |
Beginning balance | 44 |
Additional provisions | 25 |
Provision releaseds | (12) |
Utilisation and other | (8) |
Ending balance | 49 |
Litigation and other regulatory | |
Disclosure of other provisions [line items] | |
Beginning balance | 166 |
Additional provisions | 16 |
Provision releaseds | (1) |
Utilisation and other | (15) |
Ending balance | 166 |
Bank Levy | |
Disclosure of other provisions [line items] | |
Beginning balance | 1 |
Additional provisions | 0 |
Provision releaseds | 0 |
Utilisation and other | (1) |
Ending balance | 0 |
Property | |
Disclosure of other provisions [line items] | |
Beginning balance | 74 |
Additional provisions | 1 |
Provision releaseds | 0 |
Utilisation and other | (11) |
Ending balance | 64 |
ECL on undrawn facilities and guarantees | |
Disclosure of other provisions [line items] | |
Beginning balance | 38 |
Additional provisions | 10 |
Provision releaseds | 0 |
Utilisation and other | (2) |
Ending balance | 46 |
Restructuring | |
Disclosure of other provisions [line items] | |
Beginning balance | 28 |
Additional provisions | 8 |
Provision releaseds | 0 |
Utilisation and other | (12) |
Ending balance | 24 |
Other | |
Disclosure of other provisions [line items] | |
Beginning balance | 13 |
Additional provisions | 84 |
Provision releaseds | 0 |
Utilisation and other | (83) |
Ending balance | £ 14 |
Provisions - Additional Informa
Provisions - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Future expected provision number | ||
Additional provisions | £ 144 | |
Operational risk provisions | ||
Future expected provision number | ||
Additional provisions | 78 | £ 50 |
Fraud loss | ||
Future expected provision number | ||
Additional provisions | £ 63 | £ 37 |
Retirement Benefit Plans - Summ
Retirement Benefit Plans - Summary of Retirement Benefit Plans (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Net change in operating assets and liabilities: | ||
Net defined benefit assets | £ 1,982 | £ 1,535 |
Unfunded pension and post-retirement medical benefits | ||
Net change in operating assets and liabilities: | ||
Surplus (deficit) in plan | (29) | (37) |
Surplus | Funded defined benefit pension scheme | ||
Net change in operating assets and liabilities: | ||
Surplus (deficit) in plan | £ 2,011 | £ 1,572 |
Retirement Benefit Plans - Addi
Retirement Benefit Plans - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of net defined benefit liability (asset) [abstract] | ||
Defined contribution expense | £ 30 | £ 33 |
Defined benefit expense | £ 4 | £ 23 |
Retirement Benefit Plans - Su_2
Retirement Benefit Plans - Summary of Amounts Recognised in Other Comprehensive Income (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of net defined benefit liability (asset) [abstract] | ||
Return on plan assets (excluding amounts included in net interest expense) | £ 3,352 | £ 383 |
Actuarial gains arising from experience adjustments | 296 | (30) |
Actuarial gains arising from changes in financial assumptions | (3,974) | (1,098) |
Pension remeasurement | £ (326) | £ (745) |
Retirement Benefit Plans - Su_3
Retirement Benefit Plans - Summary of Net Assets Recognised (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure of net defined benefit liability (asset) [abstract] | ||
Present value of defined benefit obligations | £ (9,138) | £ (12,878) |
Fair value of scheme assets | 11,120 | 14,413 |
Net defined benefit assets | £ 1,982 | £ 1,535 |
Retirement Benefit Plans - Su_4
Retirement Benefit Plans - Summary of Principal Actuarial Assumptions Used for Defined Benefit Schemes (Details) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Disclosure of net defined benefit liability (asset) [abstract] | |||
Discount rate for scheme liabilities | 3.80% | 1.90% | |
General price inflation | 3.10% | 3.40% | |
General salary increase | 1% | 1% | |
Expected rate of pension increase | 3% | 3.20% | |
Longevity at 60 for current pensioners, on the valuation date: | |||
Males | 27 years 6 months | 27 years 6 months | |
Females | 30 years 2 months 12 days | 30 years 1 month 6 days | |
Longevity at 60 for future pensioners currently aged 40, on the valuation date: | |||
Males | 29 years 1 month 6 days | 29 years | |
Females | 31 years 8 months 12 days | 31 years 7 months 6 days |
Retirement Benefit Plans - Su_5
Retirement Benefit Plans - Summary of Actuarial Assumption Sensitivities (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Discount rate | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Description of changes in methods and assumptions | 25 bps increase | |
Increase (decrease) in defined benefit obligation | £ (335) | £ (571) |
Percentage of reasonably possible increase in actuarial assumption | 0.25% | |
General price inflation | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Description of changes in methods and assumptions | 25 bps increase | |
Increase (decrease) in defined benefit obligation | £ 239 | 392 |
Percentage of reasonably possible increase in actuarial assumption | 0.25% | |
Mortality | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Description of changes in methods and assumptions | Each additional year of longevity assumed | |
Increase (decrease) in defined benefit obligation | £ 256 | £ 478 |
Contingent Liabilities and Co_3
Contingent Liabilities and Commitments - Summary of Contingent Liabilities and Commitments (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||
Guarantees and formal standby facilities, credit lines and other commitments | £ 37,652 | £ 37,709 |
Contingent liability for guarantees | ||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||
Guarantees given to third parties | 428 | 363 |
Loan commitments | ||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||
Formal standby facilities, credit lines and other commitments | £ 37,224 | £ 37,346 |
Contingent Liabilities and Co_4
Contingent Liabilities and Commitments - Additional Information (Details) £ in Millions | 6 Months Ended | |||
Nov. 02, 2015 | Jun. 30, 2022 EUR (€) | Dec. 31, 2021 GBP (£) | Jul. 31, 2020 GBP (£) | |
Minimum | ||||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||||
Losses on litigation settlements | € 1,000,000,000 | |||
Maximum | ||||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||||
Santander UK liability under indemnity cap | 39,850,000 | |||
AXA France | ||||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||||
Amount claimed by other party | £ | £ 636 | |||
UK&I Banks | ||||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||||
Preferred stock issued, threshold value | € 0 | |||
Genworth Financial International Holdings Inc | ||||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||||
Amount awarded to other party | £ | £ 624 | |||
Visa Europe Ltd | ||||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||||
Visa Europe Ltd sale to Visa Inc | 100% |
Other Equity Instruments - Summ
Other Equity Instruments - Summary of Other Equity Instruments (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 GBP (£) | Jun. 30, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | |
Disclosure Of Other Equity Instruments [Line Items] | |||
Other equity instruments | £ 1,956,000,000 | £ 1,956,000,000 | £ 2,191,000,000 |
$300m Step-up Callable Perpetual Reserve Capital Instruments | |||
Disclosure Of Other Equity Instruments [Line Items] | |||
Capital securities | £ 300,000,000 | £ 300,000,000 | |
Interest rate | 0.07037 | 0.07037 | |
Other equity interest maturity period | 2026-02 | 2026-02 | |
Other equity instruments | 0 | £ 0 | £ 235,000,000 |
- $500m Perpetual Capital Securities | |||
Disclosure Of Other Equity Instruments [Line Items] | |||
Capital securities | £ 500,000,000 | £ 500,000,000 | |
Interest rate | 0.0675 | 0.0675 | |
Other equity interest maturity period | 2024-06 | 2024-06 | |
Other equity instruments | £ 496,000,000 | £ 496,000,000 | £ 496,000,000 |
- $750m Perpetual Capital Securities | |||
Disclosure Of Other Equity Instruments [Line Items] | |||
Capital securities | £ 750,000,000 | £ 750,000,000 | |
Interest rate | 0.07375 | 0.07375 | 0.07375 |
Other equity interest maturity period | 2022-06 | 2022-06 | |
Other equity instruments | £ 0 | £ 0 | £ 750,000,000 |
- $500m Perpetual Capital Securities | |||
Disclosure Of Other Equity Instruments [Line Items] | |||
Capital securities | £ 500,000,000 | £ 500,000,000 | |
Interest rate | 0.0518 | 0.0518 | |
Other equity instruments | 0 | £ 0 | £ 0 |
- $500m Perpetual Capital Securities | |||
Disclosure Of Other Equity Instruments [Line Items] | |||
Capital securities | £ 500,000,000 | £ 500,000,000 | |
Interest rate | 0.0630 | 0.0630 | |
Other equity interest maturity period | 2025-03 | 2025-03 | |
Other equity instruments | 500,000,000 | £ 500,000,000 | £ 500,000,000 |
- $210m Perpetual Capital Securities | |||
Disclosure Of Other Equity Instruments [Line Items] | |||
Capital securities | £ 210,000,000 | £ 210,000,000 | |
Interest rate | 0.0425 | 0.0425 | |
Other equity interest maturity period | 2026-03 | 2026-03 | |
Other equity instruments | 210,000,000 | £ 210,000,000 | £ 210,000,000 |
- £750m Perpetual Capital Securities | |||
Disclosure Of Other Equity Instruments [Line Items] | |||
Capital securities | £ 750,000,000 | £ 750,000,000 | £ 750,000,000 |
Interest rate | 0.0650 | 0.0650 | 0.0650 |
Other equity interest maturity period | 2027-09 | 2027-09 | |
Other equity instruments | £ 750,000,000 | £ 750,000,000 | £ 0 |
Other Equity Instruments - Addi
Other Equity Instruments - Additional Information (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Feb. 14, 2022 GBP (£) | Jun. 30, 2022 GBP (£) | Jun. 30, 2022 GBP (£) | Jun. 30, 2021 GBP (£) | Dec. 31, 2021 GBP (£) | |
Disclosure Of Other Equity Instruments [Line Items] | |||||
Repurchase of other equity instruments | £ 985,000,000 | £ 210,000,000 | |||
$300m Step-up Callable Perpetual Reserve Capital Instruments | |||||
Disclosure Of Other Equity Instruments [Line Items] | |||||
Repurchase of other equity instruments | £ 300,000,000 | ||||
Interest rate | 0.07037 | 0.07037 | |||
Capital securities | £ 300,000,000 | £ 300,000,000 | |||
- $750m Perpetual Capital Securities | |||||
Disclosure Of Other Equity Instruments [Line Items] | |||||
Capital securities purchased and redeemed | £ 750,000,000 | ||||
Interest rate | 0.07375 | 0.07375 | 0.07375 | ||
Capital securities | £ 750,000,000 | £ 750,000,000 | |||
- £750m Perpetual Capital Securities | |||||
Disclosure Of Other Equity Instruments [Line Items] | |||||
Interest rate | 0.0650 | 0.0650 | 0.0650 | ||
Capital securities | £ 750,000,000 | £ 750,000,000 | £ 750,000,000 |
Notes to Cash Flows (Details)
Notes to Cash Flows (Details) - GBP (£) £ in Millions | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Cash Flows Explanatory Notes [Line Items] | ||||
Cash and cash equivalents restated | £ 42,867 | £ 47,228 | £ 49,254 | £ 46,696 |
Non-cash items included in profit restated | (827) | (431) | ||
Restricted balances restated | £ 2,137 | 1,677 | ||
Increase (decrease) due to corrections of prior period errors | ||||
Disclosure Of Cash Flows Explanatory Notes [Line Items] | ||||
Cash and cash equivalents restated | 4,339 | |||
Increase (decrease) due to voluntary changes in accounting policy | ||||
Disclosure Of Cash Flows Explanatory Notes [Line Items] | ||||
Non-cash items included in profit restated | 214 | |||
Increase (decrease) due to changes in accounting policy required by IFRSs | ||||
Disclosure Of Cash Flows Explanatory Notes [Line Items] | ||||
Cash and cash equivalents restated | (780) | £ (1,580) | £ (985) | |
Restricted balances restated | £ 780 |
Assets Charged as Security fo_2
Assets Charged as Security for Liabilities and Collateral Accepted as Security for Assets (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Assets Pledged As Security [Line Items] | ||
Gross assets charged as security for liabilities | £ 24,183 | £ 20,199 |
Internally retained | Securitisations and covered bonds | ||
Disclosure Of Assets Pledged As Security [Line Items] | ||
Notes issued under securitisation and covered bond programmes retained internally | 1,780 | 1,855 |
Internally retained | Securitisations and covered bonds | Santander UK Plc | ||
Disclosure Of Assets Pledged As Security [Line Items] | ||
Internally retained securitisation and covered bond issuances available for creating collateral | 751 | 767 |
Third party bilateral secured funding transactions | Securitisations and covered bonds | ||
Disclosure Of Assets Pledged As Security [Line Items] | ||
Notes issued to Santander UK plc/subsidiaries as collateral | £ 500 | £ 500 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - Santander Financial Services PLC - Mortgages £ in Millions | 1 Months Ended |
May 31, 2022 GBP (£) | |
Disclosure of transactions between related parties [line items] | |
Book value of financial assets transferred | £ 624 |
Proceeds from transfer of financial assets | 631 |
Price premium on transfer of financial assets | £ 7 |
Financial Instruments - Disclos
Financial Instruments - Disclosure of Analysis of Fair Value of Financial Instruments Carried at Amortised Cost (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to customers | £ 217,012 | £ 210,094 |
Loans and advances to banks | 793 | 1,169 |
Reverse repurchase agreements - non trading | 8,793 | 12,683 |
Deposits by customers | 189,729 | 192,926 |
Deposits by banks | 35,182 | 33,855 |
Repurchase agreements - non trading | 6,910 | 11,718 |
Debt securities in issue | 29,521 | 25,520 |
Subordinated liabilities | 2,335 | 2,228 |
Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Total financial liabilities | 263,677 | 266,247 |
Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Financial assets | 226,754 | 224,452 |
Deposits by customers | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by customers | 189,729 | 192,926 |
Deposits by banks | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by banks | 35,182 | 33,855 |
Repurchase agreements - non trading | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Repurchase agreements - non trading | 6,910 | 11,718 |
Debt securities in issue | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Debt securities in issue | 29,521 | 25,520 |
Subordinated liabilities | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Subordinated liabilities | 2,335 | 2,228 |
Loans and advances to customers | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to customers | 217,012 | 210,094 |
Loans and advances to banks | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to banks | 793 | 1,169 |
Reverse repurchase agreements – non trading | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Reverse repurchase agreements - non trading | 8,793 | 12,683 |
Other financial assets at amortised cost | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Other financial assets at amortised cost | 156 | 506 |
Fair value | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Total financial liabilities | 263,880 | 267,251 |
Fair value | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Financial assets | 224,963 | 227,171 |
Fair value | Deposits by customers | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by customers | 189,726 | 192,946 |
Fair value | Deposits by banks | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by banks | 35,075 | 33,855 |
Fair value | Repurchase agreements - non trading | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Repurchase agreements - non trading | 6,910 | 11,718 |
Fair value | Debt securities in issue | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Debt securities in issue | 29,540 | 26,107 |
Fair value | Subordinated liabilities | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Subordinated liabilities | 2,629 | 2,625 |
Fair value | Loans and advances to customers | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to customers | 215,234 | 212,811 |
Fair value | Loans and advances to banks | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to banks | 793 | 1,169 |
Fair value | Reverse repurchase agreements – non trading | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Reverse repurchase agreements - non trading | 8,785 | 12,679 |
Fair value | Other financial assets at amortised cost | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Other financial assets at amortised cost | 151 | 512 |
Level 1 | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Total financial liabilities | 2,368 | 1,000 |
Level 1 | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Financial assets | 151 | 164 |
Level 1 | Deposits by customers | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by customers | 0 | 0 |
Level 1 | Deposits by banks | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by banks | 0 | 0 |
Level 1 | Repurchase agreements - non trading | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Repurchase agreements - non trading | 0 | 0 |
Level 1 | Debt securities in issue | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Debt securities in issue | 2,349 | 963 |
Level 1 | Subordinated liabilities | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Subordinated liabilities | 19 | 37 |
Level 1 | Loans and advances to customers | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to customers | 0 | 0 |
Level 1 | Loans and advances to banks | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to banks | 0 | 0 |
Level 1 | Reverse repurchase agreements – non trading | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Reverse repurchase agreements - non trading | 0 | 0 |
Level 1 | Other financial assets at amortised cost | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Other financial assets at amortised cost | 151 | 164 |
Level 2 | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Total financial liabilities | 67,311 | 71,812 |
Level 2 | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Financial assets | 9,578 | 13,970 |
Level 2 | Deposits by customers | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by customers | 210 | 48 |
Level 2 | Deposits by banks | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by banks | 35,012 | 33,770 |
Level 2 | Repurchase agreements - non trading | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Repurchase agreements - non trading | 6,910 | 11,718 |
Level 2 | Debt securities in issue | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Debt securities in issue | 22,569 | 23,926 |
Level 2 | Subordinated liabilities | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Subordinated liabilities | 2,610 | 2,350 |
Level 2 | Loans and advances to customers | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to customers | 0 | 0 |
Level 2 | Loans and advances to banks | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to banks | 793 | 1,169 |
Level 2 | Reverse repurchase agreements – non trading | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Reverse repurchase agreements - non trading | 8,785 | 12,453 |
Level 2 | Other financial assets at amortised cost | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Other financial assets at amortised cost | 0 | 348 |
Level 3 | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Total financial liabilities | 194,201 | 194,439 |
Level 3 | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Financial assets | 215,234 | 213,037 |
Level 3 | Deposits by customers | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by customers | 189,516 | 192,898 |
Level 3 | Deposits by banks | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by banks | 63 | 85 |
Level 3 | Repurchase agreements - non trading | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Repurchase agreements - non trading | 0 | 0 |
Level 3 | Debt securities in issue | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Debt securities in issue | 4,622 | 1,218 |
Level 3 | Subordinated liabilities | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Subordinated liabilities | 0 | 238 |
Level 3 | Loans and advances to customers | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to customers | 215,234 | 212,811 |
Level 3 | Loans and advances to banks | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to banks | 0 | 0 |
Level 3 | Reverse repurchase agreements – non trading | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Reverse repurchase agreements - non trading | 0 | 226 |
Level 3 | Other financial assets at amortised cost | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Other financial assets at amortised cost | £ 0 | £ 0 |
Financial Instruments - Discl_2
Financial Instruments - Disclosure of Analysis of Fair Value of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 7,339 | £ 7,717 |
Total liabilities at fair value | 1,547 | 1,580 |
Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 720 | 777 |
Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 827 | 803 |
Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 2,271 | 1,681 |
Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 155 | 185 |
Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 4,913 | 5,851 |
Level 1 | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 4,894 | 5,833 |
Total liabilities at fair value | 0 | 0 |
Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 0 | 0 |
Level 1 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 0 | 0 |
Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Level 1 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Level 1 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 4,894 | 5,833 |
Level 2 | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 2,230 | 1,635 |
Total liabilities at fair value | 1,528 | 1,542 |
Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 704 | 745 |
Level 2 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 824 | 797 |
Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 2,230 | 1,635 |
Level 2 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Level 2 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Level 3 | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 215 | 249 |
Total liabilities at fair value | 19 | 38 |
Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 16 | 32 |
Level 3 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 3 | 6 |
Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 41 | 46 |
Level 3 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 155 | 185 |
Level 3 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 19 | 18 |
Exchange rate contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Valuation technique | A | |
Total liabilities at fair value | £ 427 | 506 |
Exchange rate contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 1,909 | 1,194 |
Valuation technique | A | |
Exchange rate contracts | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | £ 0 | 0 |
Exchange rate contracts | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Exchange rate contracts | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 427 | 506 |
Exchange rate contracts | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 1,909 | 1,193 |
Exchange rate contracts | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 0 | 0 |
Exchange rate contracts | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 0 | 1 |
Interest rate contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Valuation technique | A & C | |
Total liabilities at fair value | £ 2,041 | 1,438 |
Interest rate contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 2,004 | 1,547 |
Valuation technique | A & C | |
Interest rate contracts | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | £ 0 | 0 |
Interest rate contracts | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Interest rate contracts | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 2,038 | 1,436 |
Interest rate contracts | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 2,002 | 1,547 |
Interest rate contracts | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 3 | 2 |
Interest rate contracts | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 2 | 0 |
Equity and credit contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Valuation technique | B & D | |
Total liabilities at fair value | £ 35 | 54 |
Equity and credit contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 141 | 161 |
Valuation technique | B & D | |
Equity and credit contracts | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | £ 0 | 0 |
Equity and credit contracts | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Equity and credit contracts | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 22 | 24 |
Equity and credit contracts | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 102 | 116 |
Equity and credit contracts | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 13 | 30 |
Equity and credit contracts | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 39 | 45 |
Netting | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | (1,783) | (1,221) |
Netting | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | (1,783) | (1,221) |
Netting | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 0 | 0 |
Netting | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Netting | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | (1,783) | (1,221) |
Netting | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | (1,783) | (1,221) |
Netting | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 0 | 0 |
Netting | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Loans and advances to customers | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 60 | 74 |
Valuation technique | A | |
Loans and advances to customers | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 19 | 18 |
Valuation technique | D | |
Loans and advances to customers | Level 1 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 0 | 0 |
Loans and advances to customers | Level 1 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Loans and advances to customers | Level 2 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Loans and advances to customers | Level 2 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Loans and advances to customers | Level 3 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 60 | 74 |
Loans and advances to customers | Level 3 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 19 | 18 |
Debt securities | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 95 | 111 |
Valuation technique | A, B & D | |
Debt securities | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 4,894 | 5,833 |
Valuation technique | D | |
Debt securities | Level 1 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 0 | 0 |
Debt securities | Level 1 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 4,894 | 5,833 |
Debt securities | Level 2 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Debt securities | Level 2 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 0 | 0 |
Debt securities | Level 3 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 95 | 111 |
Debt securities | Level 3 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 0 | 0 |
Debt securities in issue | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Valuation technique | A | |
Total liabilities at fair value | £ 466 | 560 |
Debt securities in issue | Level 1 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 0 | 0 |
Debt securities in issue | Level 2 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 463 | 555 |
Debt securities in issue | Level 3 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | £ 3 | 5 |
Structured deposits | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Valuation technique | A | |
Total liabilities at fair value | £ 346 | 223 |
Structured deposits | Level 1 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 0 | 0 |
Structured deposits | Level 2 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 346 | 223 |
Structured deposits | Level 3 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | £ 0 | 0 |
Collateral and associated financial guarantees | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Valuation technique | D | |
Total liabilities at fair value | £ 15 | 20 |
Collateral and associated financial guarantees | Level 1 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 0 | 0 |
Collateral and associated financial guarantees | Level 2 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | 15 | 19 |
Collateral and associated financial guarantees | Level 3 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Total liabilities at fair value | £ 0 | £ 1 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | ||
Transfers out of Level 1 into Level 2 of fair value hierarchy, assets held at end of reporting period | £ 0 | £ 0 |
Transfers out of Level 2 into Level 1 of fair value hierarchy, assets held at end of reporting period | 0 | 0 |
Transfers in | 0 | 0 |
Transfers out of Level 3 of fair value hierarchy, assets | 0 | 0 |
Transfers out of Level 1 into Level 2 of fair value hierarchy, liabilities held at end of reporting period | 0 | 0 |
Transfers out of Level 2 into Level 1 of fair value hierarchy, liabilities held at end of reporting period | 0 | 0 |
Transfers into Level 3 of fair value hierarchy, liabilities | 0 | 0 |
Transfers out of Level 3 of fair value hierarchy, liabilities | £ 0 | £ 0 |
Financial Instruments - Summary
Financial Instruments - Summary of Fair Value Adjustment (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Risk related adjustments | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | £ 10 | £ 20 |
- Bid-offer and trade specific adjustments | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | (15) | (9) |
- Uncertainty | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | 15 | 20 |
- Credit risk adjustment | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | 6 | 6 |
- Funding fair value adjustment | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | £ 4 | £ 3 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Reconciliation of Fair Value Measurement in Level 3 of the Fair Value Hierarchy (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | £ 287,098 | |
Beginning balance | (270,996) | |
Transfers in | 0 | £ 0 |
Transfers in | 0 | £ 0 |
Ending Balance | 284,317 | |
Ending Balance | (268,644) | |
Level 3 | Other financial liabilities at FVTPL | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | (6) | |
Fair value movements | 5 | |
Transfers in | 0 | |
Netting | (4) | |
Settlements | 2 | |
Ending Balance | (3) | |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | 5 | |
Level 3 | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | (38) | |
Fair value movements | 5 | |
Transfers in | (2) | |
Netting | (4) | |
Settlements | 20 | |
Ending Balance | (19) | |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | 5 | |
Level 3 | Derivatives | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | (32) | |
Fair value movements | 0 | |
Transfers in | (2) | |
Netting | 0 | |
Settlements | 18 | |
Ending Balance | (16) | |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | 0 | |
Level 3 | Other financial assets at FVTPL | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | 185 | |
Fair value movements | (18) | |
Transfers in | 0 | |
Netting | 0 | |
Settlements | (12) | |
Ending Balance | 155 | |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | (18) | |
Level 3 | Financial assets at FVOCI | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | 18 | |
Fair value movements | 1 | |
Transfers in | 0 | |
Netting | 0 | |
Settlements | 0 | |
Ending Balance | 19 | |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | 1 | |
Level 3 | Financial assets at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | 249 | |
Fair value movements | (19) | |
Transfers in | 0 | |
Netting | 0 | |
Settlements | (15) | |
Ending Balance | 215 | |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | (19) | |
Level 3 | Derivatives | ||
Disclosure of fair value measurement of assets [line items] | ||
Beginning balance | 46 | |
Fair value movements | (2) | |
Transfers in | 0 | |
Netting | 0 | |
Settlements | (3) | |
Ending Balance | 41 | |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | £ (2) |
Interest Rate Benchmark Refor_2
Interest Rate Benchmark Reform - Schedule of Amounts Affected by IBOR Reform (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Derivative financial instruments | £ 2,271 | £ 1,681 |
Other financial assets at FVTPL | 155 | 185 |
Financial assets at amortised cost | 156 | 506 |
Total assets | 284,317 | 287,098 |
Liabilities | ||
Derivative financial instruments | 720 | 777 |
Other financial liabilities at fair value through profit or loss | 827 | 803 |
Total liabilities | 268,644 | 270,996 |
GBP LIBOR | ||
Assets | ||
Derivative financial instruments | 0 | 0 |
Other financial assets at FVTPL | 8 | |
Financial assets at amortised cost | 85 | 1,373 |
Total assets | 85 | 1,381 |
Liabilities | ||
Derivative financial instruments | 130 | 338 |
Other financial liabilities at fair value through profit or loss | 0 | 0 |
Financial liabilities at amortised cost | 34 | |
Total liabilities | 130 | 372 |
Off-balance sheet commitments given | 8 | 338 |
USD LIBOR | ||
Assets | ||
Derivative financial instruments | 1,650 | 1,480 |
Other financial assets at FVTPL | 0 | |
Financial assets at amortised cost | 17 | 81 |
Total assets | 1,667 | 1,561 |
Liabilities | ||
Derivative financial instruments | 1,830 | 1,831 |
Other financial liabilities at fair value through profit or loss | 3 | 5 |
Financial liabilities at amortised cost | 185 | |
Total liabilities | 1,833 | 2,021 |
Off-balance sheet commitments given | 79 | 59 |
Other | ||
Assets | ||
Derivative financial instruments | 0 | 0 |
Other financial assets at FVTPL | 0 | |
Financial assets at amortised cost | 0 | 1 |
Total assets | 0 | 1 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Other financial liabilities at fair value through profit or loss | 0 | 0 |
Financial liabilities at amortised cost | 0 | |
Total liabilities | 0 | 0 |
Off-balance sheet commitments given | 0 | 0 |
Total | ||
Assets | ||
Derivative financial instruments | 1,650 | 1,480 |
Other financial assets at FVTPL | 8 | |
Financial assets at amortised cost | 102 | 1,455 |
Total assets | 1,752 | 2,943 |
Liabilities | ||
Derivative financial instruments | 1,960 | 2,169 |
Other financial liabilities at fair value through profit or loss | 3 | 5 |
Financial liabilities at amortised cost | 219 | |
Total liabilities | 1,963 | 2,393 |
Off-balance sheet commitments given | £ 87 | £ 397 |
Interest Rate Benchmark Refor_3
Interest Rate Benchmark Reform - Schedule of Derivatives Directly Affected by IBOR Reform Uncertainties (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
GBP LIBOR | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
GBP LIBOR | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
USD LIBOR | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 3,057 | 2,746 |
USD LIBOR | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 3,057 | 2,746 |
Other | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
Other | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
Total | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 3,057 | 2,746 |
Total | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 3,057 | 2,746 |
Cash flow hedges | GBP LIBOR | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
Cash flow hedges | GBP LIBOR | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
Cash flow hedges | USD LIBOR | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 2,881 | 2,586 |
Cash flow hedges | USD LIBOR | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 2,881 | 2,586 |
Cash flow hedges | Other | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
Cash flow hedges | Other | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
Cash flow hedges | Total | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 2,881 | 2,586 |
Cash flow hedges | Total | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 2,881 | 2,586 |
Fair value hedges | GBP LIBOR | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
Fair value hedges | GBP LIBOR | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
Fair value hedges | USD LIBOR | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 176 | 160 |
Fair value hedges | USD LIBOR | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 176 | 160 |
Fair value hedges | Other | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
Fair value hedges | Other | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 0 | 0 |
Fair value hedges | Total | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 176 | 160 |
Fair value hedges | Total | Maturing after cessation date | ||
Disclosure Of Analysis Of Notional And Fair Values Of Derivatives By Trading And Settlement Method [Line Items] | ||
Notional value of hedging instruments | 176 | 160 |
Discontinued Operations and A_3
Discontinued Operations and Assets Held for Sale - Disclosure of Financial Performance Relating to Discontinued Operations (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of analysis of single amount of discontinued operations [line items] | ||
Net interest income | £ 2,120 | £ 1,905 |
Net fee and commission income | 168 | 151 |
Total operating income | 2,390 | 2,191 |
Operating expenses before credit impairment losses, provisions and charges | (1,172) | (1,328) |
Credit impairment losses | (118) | 70 |
Provisions for other liabilities and charges | (118) | (190) |
Total operating credit impairment (losses)/write-backs, provisions and charges | (236) | (120) |
Profit from discontinued operations before tax | 0 | 33 |
Tax on profit from discontinued operations | 0 | (9) |
Profit from discontinued operations after tax | 0 | 24 |
Discontinued operations | ||
Disclosure of analysis of single amount of discontinued operations [line items] | ||
Net interest income | 0 | 24 |
Net fee and commission income | 0 | 27 |
Total operating income | 0 | 51 |
Operating expenses before credit impairment losses, provisions and charges | 0 | (22) |
Credit impairment losses | 0 | 7 |
Provisions for other liabilities and charges | 0 | (3) |
Total operating credit impairment (losses)/write-backs, provisions and charges | £ 0 | £ 4 |
Discontinued Operations and A_4
Discontinued Operations and Assets Held for Sale - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Discontinued Operations and Assets and Liabilities Held for Sale [Abstract] | ||
Gain (loss) recognised on measurement to fair value less costs to sell or on disposal of assets or disposal groups constituting discontinued operation | £ 0 | £ 0 |
Cash flows from (used in) operating activities, discontinued operations | 0 | 1,754 |
Cash flows from (used in) investing activities, discontinued operations | 0 | 0 |
Cash flows from (used in) financing activities, discontinued operations | £ 0 | £ 0 |
Discontinued Operations and A_5
Discontinued Operations and Assets Held for Sale - Disclosure of Assets Held for Sale (Details) - GBP (£) £ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Of Assets And Liabilities Classified As Held For Sale [Line Items] | ||
Assets held for sale | £ 49 | £ 0 |
Property, plant and equipment | ||
Disclosure Of Assets And Liabilities Classified As Held For Sale [Line Items] | ||
Assets held for sale | £ 49 |
Events After the Balance Shee_2
Events After the Balance Sheet Date (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Description of nature of non-adjusting event after reporting period | There have been no significant events between 30 June 2022 and the date of approval of these financial statements which would require a change to or additional disclosure in the financial statements. |