Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2024 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity Registrant Name | SANTANDER UK PLC |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2024 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0001087711 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Income S
Condensed Consolidated Income Statement (Unaudited) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Profit (loss) [abstract] | ||
Interest and similar income | £ 6,279 | £ 5,346 |
Interest expense and similar charges | (4,175) | (2,985) |
Net interest income | 2,104 | 2,361 |
Fee and commission income | 370 | 401 |
Fee and commission expense | (242) | (251) |
Net fee and commission income | 128 | 150 |
Other operating income | 63 | 83 |
Total operating income | 2,295 | 2,594 |
Operating expenses before credit impairment charges, provisions and charges | (1,279) | (1,219) |
Credit impairment charges | (61) | (105) |
Provisions for other liabilities and charges | (142) | (148) |
Total credit impairment charges, provisions and charges | (203) | (253) |
Profit before tax | 813 | 1,122 |
Tax on profit | (213) | (308) |
Profit after tax | 600 | 814 |
Attributable to: | ||
Equity holders of the parent | 600 | 814 |
Profit after tax | £ 600 | £ 814 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Comprehensive Income (Unaudited) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of comprehensive income [abstract] | ||
Profit after tax | £ 600 | £ 814 |
Movement in fair value reserve (debt instruments): | ||
- Change in fair value | (29) | (12) |
- Income statement transfers | 39 | 8 |
- Taxation | (3) | 1 |
Other comprehensive income, fair value reserve (debt instruments) | 7 | (3) |
Cash flow hedges: | ||
- Effective portion of changes in fair value | (412) | (1,187) |
- Income statement transfers | 72 | 1,112 |
- Taxation | 95 | 21 |
Other comprehensive income, cash flow hedges, total | (245) | (54) |
Net other comprehensive expense that may be reclassified to profit or loss subsequently | (238) | (57) |
Pension remeasurement: | ||
- Change in fair value | (159) | (160) |
- Taxation | 45 | 45 |
Pension remeasurement, total | (114) | (115) |
Own credit adjustment: | ||
- Change in fair value | (11) | (7) |
- Taxation | 3 | 2 |
Own credit adjustment, total | (8) | (5) |
Net other comprehensive expense that will not be reclassified to profit or loss subsequently | (122) | (120) |
Total other comprehensive expense net of tax | (360) | (177) |
Total comprehensive income | 240 | 637 |
Attributable to: | ||
Equity holders of the parent | 240 | 637 |
Total comprehensive income | £ 240 | £ 637 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet (Unaudited) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and balances at central banks | £ 26,875 | £ 38,214 |
Derivative financial instruments | 1,131 | 1,432 |
Other financial assets at fair value through profit or loss | 249 | 262 |
Loans and advances to customers | 203,043 | 207,435 |
Loans and advances to banks | 1,040 | 1,080 |
Reverse repurchase agreements - non-trading | 15,319 | 12,468 |
Other financial assets at amortised cost | 1,744 | 152 |
Macro hedge of interest rate risk | (1,034) | (632) |
Financial assets at fair value through other comprehensive income | 8,618 | 8,481 |
Interests in other entities | 266 | 245 |
Intangible assets | 1,521 | 1,548 |
Property, plant and equipment | 1,455 | 1,494 |
Current tax assets | 557 | 490 |
Retirement benefit assets | 622 | 723 |
Other assets | 2,769 | 2,043 |
Assets held for sale | 13 | 13 |
Total assets | 264,188 | 275,448 |
Liabilities | ||
Derivative financial instruments | 741 | 818 |
Other financial liabilities at fair value through profit or loss | 973 | 899 |
Deposits by customers | 184,874 | 190,850 |
Deposits by banks | 16,499 | 20,332 |
Repurchase agreements - non-trading | 6,623 | 8,411 |
Debt securities in issue | 34,053 | 33,910 |
Subordinated liabilities | 2,397 | 2,386 |
Macro hedge of interest rate risk | 52 | 86 |
Other liabilities | 3,269 | 2,479 |
Provisions | 380 | 402 |
Deferred tax liabilities | 154 | 186 |
Retirement benefit obligations | 30 | 66 |
Total liabilities | 250,045 | 260,825 |
Equity | ||
Share capital | 3,105 | 3,105 |
Share premium | 5,620 | 5,620 |
Other equity instruments | 1,860 | 1,956 |
Retained earnings | 4,149 | 4,295 |
Other reserves | (591) | (353) |
Total equity | 14,143 | 14,623 |
Total liabilities and equity | £ 264,188 | £ 275,448 |
Condensed Consolidated Cash Flo
Condensed Consolidated Cash Flow Statement (Unaudited) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Profit before tax | £ 813 | £ 1,122 |
Adjustments for: | ||
Non-cash items included in profit | 327 | 1,029 |
Change in operating assets | 4,724 | 8,032 |
Change in operating liabilities | (10,898) | (9,355) |
Corporation taxes paid | (171) | (295) |
Effects of exchange rate differences | 154 | (437) |
Net cash flows from operating activities | (5,051) | 96 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment and intangible assets | (176) | (235) |
Proceeds from sale of property, plant and equipment and intangible assets | 91 | 78 |
Purchase of financial assets at amortised cost and financial assets at FVOCI | (7,017) | (3,417) |
Proceeds from sale and redemption of financial assets at amortised cost and financial assets at FVOCI | 4,875 | 2,088 |
Net cash flows from investing activities | (2,227) | (1,486) |
Cash flows from financing activities | ||
Issue of other equity instruments | 400 | 0 |
Issue of debt securities and subordinated notes | 5,135 | 2,326 |
Issuance costs of debt securities and subordinated notes | (14) | (10) |
Repayment of debt securities and subordinated notes | (4,791) | (1,598) |
Repurchase of other equity instruments | (500) | 0 |
Dividends paid on ordinary shares | (554) | (410) |
Dividends paid on preference shares and other equity instruments | (66) | (61) |
Principal elements of lease payments | (20) | (34) |
Net cash flows from financing activities | (410) | 213 |
Change in cash and cash equivalents | (7,688) | (1,177) |
Cash and cash equivalents at beginning of the period | 42,502 | 46,484 |
Effects of exchange rate changes on cash and cash equivalents | (14) | (197) |
Cash and cash equivalents at the end of the period | 34,800 | 45,110 |
Cash and cash equivalents consist of: | ||
Cash and balances at central banks | 26,875 | 39,612 |
Less: restricted balances | (1,330) | (2,076) |
Cash and bank balances at central banks less regulatory minimum cash balances | 25,545 | 37,536 |
Other cash equivalents: Loans and advances to banks - Non-trading | 859 | 925 |
Other cash equivalents: Reverse repurchase agreements | 8,396 | 6,649 |
Cash and cash equivalents at the end of the period | £ 34,800 | £ 45,110 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Equity (Unaudited) - GBP (£) £ in Millions | Total | Share capital | Share premium | Other equity instruments | Fair value | Cash flow hedging | Currency translation | Retained earnings |
Beginning balance at Dec. 31, 2022 | £ 14,407 | £ 3,105 | £ 5,620 | £ 1,956 | £ 5 | £ (1,128) | £ 1 | £ 4,848 |
Profit after tax | 814 | 814 | ||||||
Other comprehensive (expense), net of tax: | ||||||||
- Fair value reserve (debt instruments) | (3) | (3) | ||||||
- Cash flow hedges | (54) | (54) | ||||||
- Pension remeasurement | (115) | (115) | ||||||
- Own credit adjustment | (5) | (5) | ||||||
Total other comprehensive income/(expense) | (177) | (3) | (54) | (120) | ||||
Total comprehensive income | 637 | (3) | (54) | 694 | ||||
Dividends on ordinary shares | (410) | (410) | ||||||
Dividends on preference shares and other equity instruments | (61) | (61) | ||||||
Ending balance at Jun. 30, 2023 | 14,573 | 3,105 | 5,620 | 1,956 | 2 | (1,182) | 1 | 5,071 |
Beginning balance at Dec. 31, 2023 | 14,623 | 3,105 | 5,620 | 1,956 | (6) | (348) | 1 | 4,295 |
Profit after tax | 600 | 600 | ||||||
Other comprehensive (expense), net of tax: | ||||||||
- Fair value reserve (debt instruments) | 7 | 7 | ||||||
- Cash flow hedges | (245) | (245) | ||||||
- Pension remeasurement | (114) | (114) | ||||||
- Own credit adjustment | (8) | (8) | ||||||
Total other comprehensive income/(expense) | (360) | 7 | (245) | (122) | ||||
Total comprehensive income | 240 | 7 | (245) | 478 | ||||
Issue of other equity instruments | 400 | 400 | ||||||
Repurchase of other equity instruments | (500) | (496) | (4) | |||||
Dividends on ordinary shares | (554) | (554) | ||||||
Dividends on preference shares and other equity instruments | (66) | (66) | ||||||
Ending balance at Jun. 30, 2024 | £ 14,143 | £ 3,105 | £ 5,620 | £ 1,860 | £ 1 | £ (593) | £ 1 | £ 4,149 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
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. Statutory accounts for the year ended 31 December 2023 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 2023 which were prepared in accordance with UK-adopted International Accounting Standards (IAS). Those consolidated financial statements were also prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee, as there were no applicable differences from IFRS as issued by the IASB for the periods presented. 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 the Santander UK group’s 2023 Annual Report. Future accounting developments The IASB issued the following new/amended accounting standards which are not yet effective and have not been endorsed for use in the UK: – Effective 1 January 2026: ‘Amendments to the Classification and Measurement of Financial Instruments’ (Amendments to IFRS 9 ‘Financial Instruments’ and IFRS 7 ‘Financial Instruments: Disclosures’) - the amendments set out changes to settling financial liabilities using an electronic payment system, assessing contractual cash flow characteristics of financial assets including those with environmental, social and governance (ESG)-linked features and requiring additional disclosures for certain financial instruments. – Effective 1 January 2027: IFRS 18 ‘Presentation and Disclosure in Financial Statements’ – the new standard will replace IAS 1 ‘Presentation of Financial Statements’ and introduces changes to the categories for classifying income and expenses and subtotals presented in the income statement and new or amended disclosures in respect of management-defined performance measures and specified expenses by nature. The Santander UK group is assessing these new/amended accounting standards to determine the potential impacts on the financial statements when they become effective or if they are otherwise earlier adopted when available. Going concern In light of geopolitical and economic uncertainty, the Directors updated their going concern assessment in preparing these Condensed Consolidated Interim Financial Statements. In making their going concern assessment, 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. 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. Critical judgements and accounting estimates The preparation of Santander UK's condensed consolidated financial statements in accordance with IFRS requires management to make judgements and assumptions in applying the accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Due to the inherent uncertainty in making estimates, actual results reported in future periods may be based on amounts which differ from those estimates. Estimates, judgements and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 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. The significant judgements, apart from those involving estimation, made by management in applying Santander UK's accounting policies in these financial statements (key judgements) and the key sources of estimation uncertainty that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year (key estimates), which together are considered critical to Santander UK's results and financial position, are as follows: a) Credit impairment allowance 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 the need for any judgemental adjustments – Determining the need to assess corporate Stage 3 exposures individually 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 2023 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 – Determining 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 22 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 24 provides disclosure relating to ongoing factual issues and reviews that could impact the timing and amount of any outflows. It 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. It also includes disclosure relating to the historical use of discretionary commission arrangements by Santander Consumer (UK) plc. 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 each of these key judgements and estimates, see Notes 22 and 24 . c) Retirement benefit plans 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 23 . Sensitivity of defined benefit pension scheme estimates For detailed disclosures, see ‘Actuarial assumption sensitivities’ in Note 23 . The Scheme is 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 support the values obtained in respect of these assets 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 testing methodology, including the need for planning assumptions and internal capital allocations – Identifying the indicators of potential impairment 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 14 . Sensitivity of goodwill For detailed disclosures, see ‘Sensitivities of key assumptions in calculating VIU’ in Note 20 to the Consolidated Financial Statements in the 2023 Annual Report . |
Segments
Segments | 6 Months Ended |
Jun. 30, 2024 | |
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. Geographical information is not provided, as substantially all of Santander UK’s activities are in the UK. Results by segment For the half year to Retail & Business Banking Consumer Finance Corporate & Commercial Banking Corporate Centre Total 30 June 2024 £m £m £m £m £m Net interest income/(expense) 1,684 74 383 (37) 2,104 Non-interest income/(expense) 62 83 67 (21) 191 Total operating income/(expense) 1,746 157 450 (58) 2,295 Operating expenses before credit impairment charges, provisions and charges (999) (77) (205) 2 (1,279) Credit impairment charges (49) (8) (3) (1) (61) Provisions for other liabilities and charges (98) (15) (18) (11) (142) Total credit impairment charges, provisions and charges (147) (23) (21) (12) (203) Profit/(loss) before tax 600 57 224 (68) 813 Revenue/(expense) from external customers 1,686 360 264 (15) 2,295 Inter-segment revenue/(expense) 60 (203) 186 (43) — Total operating income/(expense) 1,746 157 450 (58) 2,295 Revenue from external customers includes the following fee and commission income: (1) – Current account and debit card fees 212 — 26 — 238 – Insurance, protection and investments 25 — — — 25 – Credit cards 45 — — — 45 – Non-banking and other fees (2) 2 14 37 9 62 Total fee and commission income 284 14 63 9 370 Fee and commission expense (221) (4) (6) (11) (242) Net fee and commission income/(expense) 63 10 57 (2) 128 Customer loans 175,262 4,880 18,084 — 198,226 Customer deposits 150,982 — 25,372 4,794 181,148 30 June 2023 £m £m £m £m £m Net interest income 1,865 79 405 12 2,361 Non-interest income/(expense) 88 100 67 (22) 233 Total operating income 1,953 179 472 (10) 2,594 Operating expenses before credit impairment charges, provisions and charges (912) (73) (170) (64) (1,219) Credit impairment charges (55) (14) (36) — (105) Provisions for other liabilities and charges (106) (3) 4 (43) (148) Total credit impairment charges, provisions and charges (161) (17) (32) (43) (253) Profit/(loss) before tax 880 89 270 (117) 1,122 Revenue from external customers 1,856 313 364 61 2,594 Inter-segment revenue/(expense) 97 (134) 108 (71) — Total operating income/(expense) 1,953 179 472 (10) 2,594 Revenue from external customers includes the following fee and commission income: (1) – Current account and debit card fees 227 — 31 — 258 – Insurance, protection and investments 24 — — — 24 – Credit cards 49 — — — 49 – Non-banking and other fees (2) 1 12 53 4 70 Total fee and commission income 301 12 84 4 401 Fee and commission expense (216) (3) (26) (6) (251) Net fee/(expense) and commission income 85 9 58 (2) 150 31 December 2023 Customer loans 179,887 5,228 17,939 — 203,054 Customer deposits 158,329 — 24,066 5,050 187,445 (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. The table below shows the relationship between Customer assets and Loans and advances to customers as presented in the Condensed Consolidated Balance Sheet. Customer assets exclude Joint ventures, as they carry low credit risk and therefore have an immaterial ECL, and Other items, mainly accrued interest that we have not yet charged to the customer's account and cash collateral. It also shows the relationship between customer liabilities (see above) and Deposits by customers as presented in the Condensed Consolidated Balance Sheet. Net carrying amount Assets Liabilities 30 June 2024 31 December 2023 30 June 2024 31 December 2023 £m £m £m £m Customer balances (gross) 198,226 203,054 181,148 187,445 Loan loss allowance (860) (914) — — Customer balances (net) 197,366 202,140 181,148 187,445 Intercompany balances 4,901 4,544 3,406 2,825 Accrued interest 434 739 1,002 830 Other items 342 12 (682) (250) Loans and advances to customers / Deposits by customers 203,043 207,435 184,874 190,850 |
Operating Expenses Before Credi
Operating Expenses Before Credit Impairment Charges, Provisions and Charges | 6 Months Ended |
Jun. 30, 2024 | |
Expenses by nature [abstract] | |
Operating Expenses Before Credit Impairment Charges, Provisions and Charges | 3. OPERATING EXPENSES BEFORE CREDIT IMPAIRMENT CHARGES, PROVISIONS AND CHARGES For the half year to 30 June 2024 30 June 2023 £m £m Staff costs 641 611 Other administration expenses 488 474 Depreciation, amortisation and impairment 150 134 1,279 1,219 |
Credit Impairment Charges and P
Credit Impairment Charges and Provisions | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure Of Credit Impairment Loss And Provisions [Abstract] | |
Credit Impairment Charges and Provisions | 4. CREDIT IMPAIRMENT CHARGES AND PROVISIONS For the half year to 30 June 2024 30 June 2023 £m £m Credit impairment charges: Loans and advances to customers 33 98 Recoveries of loans and advances, net of collection costs 8 4 Off-balance sheet credit exposures (See Note 22) 20 3 61 105 Provisions for other liabilities and charges (excluding off-balance sheet credit exposures) (See Note 22) 141 149 Charge/(release) for residual value and voluntary termination 1 (1) 142 148 203 253 In H124 and H123 there were no material credit impairment charges 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, 2024 | |
Major components of tax expense (income) [abstract] | |
Taxation | 5. TAXATION The Santander UK group’s effective tax rate for H124 was 26.2% ( H123 : 27.5% ). Tax on profit differs from that calculated at the statutory rate as follows: For the half year to 30 June 2024 30 June 2023 £m £m Profit before tax 813 1,122 Tax calculated at the statutory rate of 25% (H123: 23.5%) 203 264 Bank surcharge on profits 23 44 Non-deductible preference dividends paid 4 5 Non-deductible UK Bank Levy 5 8 Non-deductible conduct remediation, fines and penalties — 3 Other non-deductible costs and non-taxable income 2 3 Tax relief on dividends in respect of other equity instruments (20) (19) Adjustment to prior year provisions (4) — Tax on profit 213 308 Interim period corporation tax is accrued based on the estimated average annual effective corporation tax for the year. 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 has consistently applied the UK’s Code of Practice on Taxation for Banks following first adoption in 2010. |
Dividends on Ordinary Shares
Dividends on Ordinary Shares | 6 Months Ended |
Jun. 30, 2024 | |
Dividends On Ordinary Shares [Abstract] | |
Dividends on Ordinary Shares | 6. DIVIDENDS ON ORDINARY SHARES An int erim dividend of £554m was declared on the Company’s ordinary shares in issue ( H123 : £410m ). |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
Derivative Financial Instruments | 7. DERIVATIVE FINANCIAL INSTRUMENTS The table below includes the notional amounts of transactions outstanding at the balance sheet date; they do not represent actual exposures. 30 June 2024 31 December 2023 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 13,170 91 97 12,927 92 217 Interest rate contracts (1) 25,892 326 549 28,351 389 583 Equity and credit contracts 727 141 19 765 133 20 Total derivatives held for trading 39,789 558 665 42,043 614 820 Derivatives held for hedging Designated as fair value hedges: Exchange rate contracts 1,398 40 1 1,145 29 2 Interest rate contracts 137,260 1,101 488 107,540 1,275 839 138,658 1,141 489 108,685 1,304 841 Designated as cash flow hedges: Exchange rate contracts 20,544 729 288 21,618 1,008 289 Interest rate contracts (1) 62,615 468 1,064 50,896 553 915 83,159 1,197 1,352 72,514 1,561 1,204 Total derivatives held for hedging 221,817 2,338 1,841 181,199 2,865 2,045 Derivative netting (2) — (1,765) (1,765) — (2,047) (2,047) Total derivatives 261,606 1,131 741 223,242 1,432 818 (1) Interest rate contracts include inflation rate contracts. (2) 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 £682m ( 2023 : £472m ) and the amount of cash collateral paid that had been offset against the gross derivative liabilities was £1m ( 2023 : £12m ). At 30 June 2024 , the fair value of derivative assets included amounts due from Banco Santander group entities of £484m ( 2023 : £762m ) and the fair value of derivative liabilities included amounts due to Banco Santander group entities of £254m ( 2023 : £230m ). |
Other Financial Assets at Fair
Other Financial Assets at Fair Value Through Profit or Loss | 6 Months Ended |
Jun. 30, 2024 | |
Financial assets at fair value through profit or loss [abstract] | |
Other Financial Assets at Fair Value Through Profit or Loss | 8. OTHER FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 30 June 2024 31 December 2023 £m £m Loans and advances to customers 44 46 Debt securities 165 167 Other debt instruments 40 49 249 262 |
Loans and Advances to Customers
Loans and Advances to Customers | 6 Months Ended |
Jun. 30, 2024 | |
Net Loans And Advances To Customers [Abstract] | |
Loans and Advances to Customers | 9. LOANS AND ADVANCES TO CUSTOMERS 30 June 2024 31 December 2023 £m £m Loans and advances to customers 203,925 208,370 Credit impairment loss allowances on loans and advances to customers (860) (914) Residual value and voluntary termination provisions on finance leases (22) (21) Net loans and advances to customers 203,043 207,435 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, 2024 | |
Disclosure Of Securitisations And Covered Bonds [Abstract] | |
Securitisations and covered bonds | 10. 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. The gross assets securitised, or for the covered bond programme assigned, at 30 June 2024 and 31 December 2023 were: 30 June 2024 31 December 2023 £m £m Mortgage-backed master trust structures: – Holmes 4,669 3,242 – Fosse 2,724 2,048 7,393 5,290 Other asset-backed securitisation structures: – Repton 766 757 766 757 Total securitisation programmes 8,159 6,047 Covered bond programme: – Euro 35bn Global Covered Bond Programme 25,030 21,880 Total securitisation and covered bond programmes 33,189 27,927 The following table sets out the internal and external issuances and redemptions in H124 and H123 for each securitisation and covered bond programme. Internal issuances External issuances Internal redemptions External redemptions H124 H123 H124 H123 H124 H123 H124 H123 £m £m £m £m £m £m £m £m Mortgage-backed master trust structures: – Holmes 106 118 750 750 — 30 — 142 – Fosse 760 — — — — — — — Other asset-backed securitisation structures: – Motor — — — — — — — 7 – Repton — — — 550 — — — — Covered bond programme: – Euro 35bn Global Covered Bond Programme — 1,100 4,099 1,500 41 5 1,962 1,017 866 1,218 4,849 2,800 41 35 1,962 1,166 |
Reverse Repurchase Agreements -
Reverse Repurchase Agreements - Non Trading | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure Of Reserve Repurchase Agreements Non-Trading [Abstract] | |
Reverse Repurchase Agreements - Non Trading | 11. REVERSE REPURCHASE AGREEMENTS – NON-TRADING 30 June 2024 31 December 2023 £m £m Agreements with banks 1,949 2,397 Agreements with customers 13,370 10,071 15,319 12,468 |
Other Financial Assets at Amort
Other Financial Assets at Amortised Cost | 6 Months Ended |
Jun. 30, 2024 | |
Financial assets at fair value through profit or loss [abstract] | |
Other Financial Assets at Amortised Cost | 12. OTHER FINANCIAL ASSETS AT AMORTISED COST 30 June 2024 31 December 2023 £m £m Debt securities 1,744 152 1,744 152 A significant portion of the debt securities are held in our eligible liquidity pool and consist mainly of government bonds and covered bonds. In H124, Santander UK increased the allocation of liquid assets to longer-dated, duration-hedged UK Gilts to support ongoing HQLA requirements. Detailed disclosures can be found in the 'Liquidity risk' section of the Risk review. |
Interests in Other Entities
Interests in Other Entities | 6 Months Ended |
Jun. 30, 2024 | |
Investments accounted for using equity method [abstract] | |
Interests in Other Entities | 13. 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 2023 Annual Report . |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangible Assets | 14. INTANGIBLE ASSETS At 30 June 2024 , intangible assets comprised goodwill of £1,199m ( 2023 : £1,199m ) and computer software of £322m ( 2023 : £349m ). At 30 June 2024 , a review was performed to identify any potential impairment indicators for goodwill. No indicators of impairment were identified and so a full impairment test was not performed for the half year. Details of the sensitivity of value in use (VIU) to changes in assumptions, including changes required to achieve nil headroom, are set out in Note 20 to the Consolidated Financial Statements in the 2023 Annual Report . |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
Property, plant and equipment [abstract] | |
Property, Plant and Equipment | 15. 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 2024 918 877 67 635 263 2,760 Additions — 21 — 104 16 141 Disposals (3) (16) — (117) (13) (149) At 30 June 2024 915 882 67 622 266 2,752 Accumulated depreciation: At 1 January 2024 226 653 67 147 173 1,266 Charge for the period 11 32 — 37 9 89 Disposals (2) (15) — (41) — (58) At 30 June 2024 235 670 67 143 182 1,297 Carrying amount 680 212 — 479 84 1,455 (1) Property, plant and equipment includes investment properties of £16m ( 2023 : £17m ). |
Other Financial Liabilities at
Other Financial Liabilities at Fair Value Through Profit or Loss | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of financial liabilities [abstract] | |
Other Financial Liabilities at Fair Value Through Profit or Loss | 16. OTHER FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS 30 June 2024 31 December 2023 £m £m Structured Notes Programmes 362 369 Structured deposits 518 426 Zero Amortising Guaranteed Notes 93 104 973 899 |
Deposits by Customers
Deposits by Customers | 6 Months Ended |
Jun. 30, 2024 | |
Deposits from customers [abstract] | |
Deposits by Customers | 17. DEPOSITS BY CUSTOMERS 30 June 2024 31 December 2023 £m £m Demand and time deposits (1) 181,468 188,004 Amounts due to other Santander UK Group Holdings plc subsidiaries 123 114 Amounts due to Santander UK Group Holdings plc (2) 1,778 1,772 Amounts due to fellow Banco Santander subsidiaries and joint ventures 1,505 960 184,874 190,850 (1) Includes capital amount guaranteed / protected equity index-linked deposits of £232m ( 2023 : £304m ). (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, 2024 | |
Disclosure Of Deposits From Banks [Abstract] | |
Deposits by Banks | 18. DEPOSITS BY BANKS 30 June 2024 31 December 2023 £m £m Items in the course of transmission 973 732 Deposits held as collateral 578 860 Other deposits (1) 14,944 18,737 Amounts due to Santander UK subsidiaries 4 3 16,499 20,332 (1) Includes balance drawn from the TFSME of £13.0bn ( 2023 : £17.0bn ). |
Repurchase Agreements - Non Tra
Repurchase Agreements - Non Trading | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure Of Repurchase Agreements [Abstract] | |
Repurchase Agreements - Non Trading | 19. REPURCHASE AGREEMENTS – NON-TRADING 30 June 2024 31 December 2023 £m £m Agreements with banks 616 551 Agreements with customers 6,007 7,860 6,623 8,411 |
Debt Securities in Issue
Debt Securities in Issue | 6 Months Ended |
Jun. 30, 2024 | |
Debt Securities In Issue [Abstract] | |
Debt Securities in Issue | 20. DEBT SECURITIES IN ISSUE 30 June 2024 31 December 2023 £m £m Medium-term notes 8,879 11,656 Euro €35bn Global Covered Bond Programme 16,896 15,000 US $20bn Commercial Paper Programmes 2,968 2,761 Certificates of deposit 1,397 1,530 Credit linked notes 387 194 Securitisation programmes 3,526 2,769 34,053 33,910 |
Subordinated Liabilities
Subordinated Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Subordinated liabilities [abstract] | |
Subordinated Liabilities | 21. SUBORDINATED LIABILITIES 30 June 2024 31 December 2023 £m £m £325m Sterling preference shares 343 343 Undated subordinated liabilities 205 205 Dated subordinated liabilities 1,849 1,838 2,397 2,386 In H124 , no subordinated liabilities were repurchased as part of ongoing liability management exercises. In H123 , certain subordinated liabilities were repurchased, resulting in a profit of £3m . |
Provisions
Provisions | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of other provisions [abstract] | |
Provisions | 22. PROVISIONS Customer remediation Litigation and other regulatory Regulatory levies and fees Bank Levy Property ECL on undrawn facilities and guarantees Restructuring Other Total £m £m £m £m £m £m £m £m £m At 1 January 2024 106 132 — — 47 78 32 7 402 Additional provisions (See Note 4) 6 4 41 — — 20 13 83 167 Provisions released (See Note 4) — (4) — — (1) — — — (5) Utilisation and other (39) (28) (1) — (13) — (27) (76) (184) At 30 June 2024 73 104 40 — 33 98 18 14 380 Net provisions of £6m were recognised in H124 for customer remediations, relating to our mortgage book. The provisions remain subject to change as additional data becomes available and remediation boundaries are finalised. Litigation and other regulatory provisions principally comprised amounts in respect of litigation and other regulatory charges, operational loss and operational risk provisions, and related expenses. A number of uncertainties exist with respect to these provisions given the uncertainties inherent in litigation and other regulatory matters, that affect the amount and timing of any potential outflows with respect to which provisions have been established. These provisions are reviewed at least quarterly. In H124 there were charges of £4m for legal provisions. The balance also includes an amount in respect of our best estimate of liability relating to legal dispute regarding allocation of responsibility for a specific PPI portfolio of complaints, further described in Note 24 . No further information on the best estimate is provided on the basis that it would be seriously prejudicial. Regulatory levies and fees are payable to regulatory bodies such as the FCA, PRA and Bank of England in the ordinary course of business. In H124 there were charges of £37m relating to the new Bank of England levy. In H124 , other provisions included charges for operational risk provisions of £71m ( H123 : £87m ), including fraud losses of £54m ( H123 : £75m ). |
Retirement Benefit Plans
Retirement Benefit Plans | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of net defined benefit liability (asset) [abstract] | |
Retirement Benefit Plans | 23. RETIREMENT BENEFIT PLANS The amounts recognised in the balance sheet were as follows: 30 June 2024 31 December 2023 £m £m Assets/(liabilities) Funded defined benefit pension scheme - surplus 622 723 Funded defined benefit pension scheme - deficit (6) (41) Unfunded pension and post-retirement medical benefits (24) (25) Total net assets 592 657 a) Defined contribution pension plans An expense of £40m ( H123 : £33m ) was recognised for defined contribution plans in the period and is included in staff costs within operating expenses (see Note 3 ). b) Defined benefit pension schemes The total amount charged to the income statement was £6m ( H123 : charge of £16m ). The amounts recognised in other comprehensive income were as follows: For the half year to 30 June 2024 30 June 2023 £m £m Return on plan assets (excluding amounts included in net interest expense) 634 470 Actuarial (gains) arising from changes in demographic assumptions (88) — Actuarial losses arising from experience adjustments 64 89 Actuarial (gains) arising from changes in financial assumptions (451) (399) Pension remeasurement 159 160 The net assets recognised in the balance sheet were determined as follows: 30 June 2024 31 December 2023 £m £m Present value of defined benefit obligations (7,725) (8,201) Fair value of scheme assets 8,317 8,858 Net defined benefit assets 592 657 Actuarial assumptions The principal actuarial assumptions used for the Scheme were: 30 June 2024 31 December 2023 % % To determine benefit obligations (1) : – Discount rate for scheme liabilities 5.2 4.6 – General price inflation 3.1 3.0 – General salary increase 1 1.0 – Expected rate of pension increase 2.9 3.0 Years Years Longevity at 60 for current pensioners, on the valuation date: – Males 27.1 27.0 – Females 29.8 29.8 Longevity at 60 for future pensioners currently aged 40, on the valuation date: – Males 28.7 28.6 – Females 31.4 31.3 (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 in H124 was due to increased fixed interest gilt yields. In H124, we adopted a new version of the model that we currently use to set the discount rate. The updated model is based on an expanded data set which improves stability of the model. 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 30 June 2024 31 December 2023 Assumption Change in pension obligation at period end from £m £m Discount rate 50 bps increase (460) (507) General price inflation 50 bps increase 348 385 Mortality Each additional year of longevity assumed 201 223 |
Contingent Liabilities and Comm
Contingent Liabilities and Commitments | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of contingent liabilities [abstract] | |
Contingent Liabilities and Commitments | 24. CONTINGENT LIABILITIES AND COMMITMENTS 30 June 2024 31 December 2023 £m £m Guarantees given to third parties 420 452 Formal standby facilities, credit lines and other commitments 36,757 30,976 37,177 31,428 Where the items set out below can be reliably estimated, they are disclosed in the table above. Other legal, regulatory or tax 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, Santander UK is subject to audits, reviews, challenges and tax, regulatory or law enforcement investigations or proceedings by relevant regulators or government agencies 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. Payment Protection Insurance AXA France IARD and AXA France Vie (former GE Capital Corporation Group entities (GE Capital), known as Financial Insurance Company Ltd (FICL) and Financial Assurance Company Ltd (FACL), acquired by AXA SA in 2015) (together, AXA France) have brought a claim for £552m (plus interest) against (i) Santander Cards UK Limited (former GE Capital entity known as GE Capital Bank Limited (GECB), which was acquired by Banco Santander SA in 2008 and subsequently transferred to Santander UK plc); and (ii) Santander Insurance Services UK Limited (a Banco Santander SA subsidiary) (together the Santander Entities). The claim relates to the allocation of liability for compensation and associated costs in respect of a large number of PPI policies distributed by GECB pre-2005, which were underwritten by FICL and FACL. AXA France reduced their claim from £670m (plus interest) to £552m (plus interest) in their Re-Re- Amended Particulars of Claim dated 29 June 2023. The Santander Entities strongly refute the claim. Trial has been fixed for six weeks, beginning on 3 March 2025. 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 22 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 22 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 H124 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, t he 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. These uncertainties mean it is not currently practicable to make a reliable assessment of the size of any related potential liability. 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. SCUK - Motor Finance Broker Commissions Following the FCA’s Motor Market review in 2019 which resulted in a change in rules in January 2021, Santander Consumer (UK) plc (SCUK) has received a number of county court claims and complaints in respect of its historical use of discretionary commission arrangements (DCAs) prior to the 2021 rule changes. In the context of the complaints made to the Financial Ombudsman Service relating to such commission arrangements, the FCA commenced in January a review of the use of DCAs between lenders and credit brokers (the FCA review). A claim has also been issued against SCUK, Santander UK plc and others in the Competition Appeal Tribunal (CAT), alleging that SCUK’s historical commission arrangements in respect of used car financing operated in breach of the Competition Act 1998. In July 2024, the FCA extended the timeline for its review to May 2025 and proposed an extension of the current pause on complaints handling related to discretionary commission arrangements from September 2024 to 4 December 2025. While it is possible that certain charges may be incurred in relation to the FCA’s review or related existing or future county court claims, Financial Ombudsman Service (FOS) complaints and the Competition Appeal Tribunal (CAT) proceedings, it is not considered that a legal or constructive obligation has been incurred in relation to these matters that would require a provision to be recognised at this stage. The resolution of such matters is not possible to predict with any certainty and there remain significant inherent uncertainties regarding the existence, scope and timing of any possible outflow which make it impracticable to disclose the extent of any potential financial impact. 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. Conversion of the preferred stock into Class A Common Stock of Visa Inc. depends on the outcome of litigation against Visa involving UK & Ireland multilateral interchange fees (UK&I MIFs). The convertible preferred stock is now held by Santander Equity Investments Limited (SEIL), outside the ring-fenced bank. In addition, Santander UK plc 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 . Santander UK plc's liability under this indemnity is capped at €39.85m . 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 not practicable 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, entities within the Santander UK group have given warranties and/or indemnities to the purchasers. |
Other Equity Instruments
Other Equity Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of classes of share capital [abstract] | |
Other Equity Instruments | 25. OTHER EQUITY INSTRUMENTS Interest rate 30 June 2024 31 December 2023 % Next call date £m £m AT1 securities: - £500m Perpetual Capital Securities 6.75 June 2024 — 496 - £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 June 2027 750 750 - £400m Perpetual Capital Securities 8.75 Sept 2029 400 — 1,860 1,956 |
Assets Charged as Security for
Assets Charged as Security for Liabilities and Collateral Accepted as Security for Assets | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure Of Assets Pledged As Security [Abstract] | |
Assets Charged as Security for Liabilities and Collateral Accepted as Security for Assets | 26. ASSETS CHARGED AS SECURITY FOR LIABILITIES AND COLLATERAL ACCEPTED AS SECURITY FOR ASSETS Securitisations and covered bonds As described in Note 14 , to the Consolidated Financial Statements in the 2023 Annual Report , Santander UK plc and certain of its subsidiaries issue securitisations and covered bonds through or involving structured entities. At 30 June 2024 , there were £33,189m ( 2023 : £27,927m ) of gross assets in these secured programmes and £1,637m ( 2023 : £839m ) of these related to internally retained issuances that were available for use as collateral for liquidity purposes in the future. At 30 June 2024 , £3,753m ( 2023 : £2,928m ) 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 £1,500m at 30 June 2024 ( 2023 : £1,500m ), or for use as collateral for liquidity purposes in the future. |
Related Party Disclosures
Related Party Disclosures | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of transactions between related parties [abstract] | |
Related Party Disclosures | 27. RELATED PARTY DISCLOSURES Related party transactions in the period were similar in nature to those in Note 38 to the Consolidated Financial Statements in the 2023 Annual Report. The financial position and performance of the Santander UK group were not materially affected in H124 by any related party transactions, or changes to related party transactions, other than as disclosed herein. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Financial Instruments | 28. FINANCIAL INSTRUMENTS a) Measurement basis of financial assets and liabilities Disclosures relating to fair value measurement and hierarchy, valuation techniques and the control framework and related aspects pertaining to financial instruments at fair value are included in the 2023 Annual Report. Valuation, sensitivity methodologies and inputs at 30 June 2024 are consistent with those described in Note 39 to the Consolidated Financial Statements in the 2023 Annual Report . 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 2024 and 31 December 2023 . Cash and balances at central banks, which consist of demand deposits with the Bank of England, together with cash in tills and ATMs, have been excluded from the table as the carrying amount is deemed an appropriate 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 39 (d) to the Consolidated Financial Statements in the 2023 Annual Report. 30 June 2024 31 December 2023 Fair Carrying Fair Carrying value value value value £m £m £m £m Assets Loans and advances to customers 200,648 203,043 205,917 207,435 Loans and advances to banks 1,040 1,040 1,080 1,080 Reverse repurchase agreements - non-trading 15,315 15,319 12,470 12,468 Other financial assets at amortised cost 1,737 1,744 144 152 218,740 221,146 219,611 221,135 Liabilities Deposits by customers 184,436 184,874 190,632 190,850 Deposits by banks 16,524 16,499 20,382 20,332 Repurchase agreements - non-trading 6,626 6,623 8,413 8,411 Debt securities in issue 34,059 34,053 33,621 33,910 Subordinated liabilities 2,613 2,397 2,800 2,386 244,258 244,446 255,848 255,889 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 2024 and 31 December 2023 , analysed by their levels in the fair value hierarchy - Level 1, Level 2 and Level 3. 30 June 2024 31 December 2023 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 — 860 — 860 — 1,129 — 1,129 A Interest rate contracts — 1,895 — 1,895 — 2,216 1 2,217 A & C Equity and credit contracts — 104 37 141 — 98 35 133 B & D Netting — (1,765) — (1,765) — (2,047) — (2,047) — 1,094 37 1,131 — 1,396 36 1,432 Other financial assets at FVTPL Loans and advances to customers — — 44 44 — — 46 46 A Debt securities — 165 40 205 — 167 49 216 A, B & D — 165 84 249 — 167 95 262 Financial assets at FVOCI Debt securities 8,293 325 — 8,618 8,293 188 — 8,481 D 8,293 325 — 8,618 8,293 188 — 8,481 Total assets at fair value 8,293 1,584 121 9,998 8,293 1,751 131 10,175 Liabilities Derivative financial instruments Exchange rate contracts — 386 — 386 — 508 — 508 A Interest rate contracts — 2,101 — 2,101 — 2,336 1 2,337 A & C Equity and credit contracts — 6 13 19 — 11 9 20 B & D Netting — (1,765) — (1,765) — (2,047) — (2,047) — 728 13 741 — 808 10 818 Other financial liabilities at FVTPL Debt securities in issue — 362 — 362 — 369 — 369 A Structured deposits — 518 — 518 — 426 — 426 A Zero Amortising Guaranteed Notes — 93 — 93 — 104 — 104 D — 973 — 973 — 899 — 899 Total liabilities at fair value — 1,701 13 1,714 — 1,707 10 1,717 Transfers between levels of the fair value hierarchy In H124 there were no significant ( H123 : 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 39 (b) to the Consolidated Financial Statements in the 2023 Annual Report . 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 fair value adjustments are set out in the following table: 30 June 2024 31 December 2023 £m £m Risk-related: - Bid-offer and trade specific adjustments 8 (6) - Uncertainty 5 6 - Credit risk adjustment — 1 - Funding fair value adjustment — 1 13 2 Day One profit 1 1 14 3 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 39 (f) to the Consolidated Financial Statements in the 2023 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 39 (g) to the Consolidated Financial Statements in the 2023 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 H124 : Assets Liabilities Derivatives Other financial assets at FVTPL Total Derivatives Total £m £m £m £m £m At 1 January 2024 36 95 131 (10) (10) Total gains/(losses) recognised: Fair value movements (1) 6 (1) 5 (4) (4) Settlements (5) (10) (15) 1 1 At 30 June 2024 37 84 121 (13) (13) Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period (1) 6 (1) 5 (4) (4) (1) Fair value movements relating to derivatives and other financial assets at FVTPL are recognised in other operating income in the income statement. 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 39 (g) to the Consolidated Financial Statements in the 2023 Annual Report . |
Assets Held for Sale
Assets Held for Sale | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Assets and Liabilities Held for Sale [Abstract] | |
Assets Held for Sale | 29. ASSETS HELD FOR SALE Assets held for sale Sale of property Management considered the sale of part of Santander House (Milton Keynes) under a proposed transaction with the developer for the construction of Unity Place and Buckingham House (Bletchley), to be highly probable at the balance sheet date. As such, the Santander UK group classified these properties, which are included in the Corporate Centre segment and carried at their sales prices, as held for sale. Both sales are expected to complete in 2024 with no gain or loss. At 30 June 2024 and 31 December 2023 , assets held for sale comprised: 30 June 2024 31 December 2023 £m £m Assets Property, plant and equipment 13 13 Total assets held for sale 13 13 |
Events After the Balance Sheet
Events After the Balance Sheet Date | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Events After the Balance Sheet Date | 30. EVENTS AFTER THE BALANCE SHEET DATE There have been no significant events between 30 June 2024 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, 2024 | |
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. Statutory accounts for the year ended 31 December 2023 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 2023 which were prepared in accordance with UK-adopted International Accounting Standards (IAS). Those consolidated financial statements were also prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee, as there were no applicable differences from IFRS as issued by the IASB for the periods presented. 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 the Santander UK group’s 2023 Annual Report. |
Future accounting developments | Future accounting developments The IASB issued the following new/amended accounting standards which are not yet effective and have not been endorsed for use in the UK: – Effective 1 January 2026: ‘Amendments to the Classification and Measurement of Financial Instruments’ (Amendments to IFRS 9 ‘Financial Instruments’ and IFRS 7 ‘Financial Instruments: Disclosures’) - the amendments set out changes to settling financial liabilities using an electronic payment system, assessing contractual cash flow characteristics of financial assets including those with environmental, social and governance (ESG)-linked features and requiring additional disclosures for certain financial instruments. – Effective 1 January 2027: IFRS 18 ‘Presentation and Disclosure in Financial Statements’ – the new standard will replace IAS 1 ‘Presentation of Financial Statements’ and introduces changes to the categories for classifying income and expenses and subtotals presented in the income statement and new or amended disclosures in respect of management-defined performance measures and specified expenses by nature. The Santander UK group is assessing these new/amended accounting standards to determine the potential impacts on the financial statements when they become effective or if they are otherwise earlier adopted when available. |
Going concern | Going concern In light of geopolitical and economic uncertainty, the Directors updated their going concern assessment in preparing these Condensed Consolidated Interim Financial Statements. In making their going concern assessment, 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. 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. |
Critical judgements and accounting estimates | Critical judgements and accounting estimates The preparation of Santander UK's condensed consolidated financial statements in accordance with IFRS requires management to make judgements and assumptions in applying the accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Due to the inherent uncertainty in making estimates, actual results reported in future periods may be based on amounts which differ from those estimates. Estimates, judgements and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 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. The significant judgements, apart from those involving estimation, made by management in applying Santander UK's accounting policies in these financial statements (key judgements) and the key sources of estimation uncertainty that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year (key estimates), which together are considered critical to Santander UK's results and financial position, are as follows: a) Credit impairment allowance 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 the need for any judgemental adjustments – Determining the need to assess corporate Stage 3 exposures individually 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 2023 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 – Determining 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 22 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 24 provides disclosure relating to ongoing factual issues and reviews that could impact the timing and amount of any outflows. It 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. It also includes disclosure relating to the historical use of discretionary commission arrangements by Santander Consumer (UK) plc. 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 each of these key judgements and estimates, see Notes 22 and 24 . c) Retirement benefit plans 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 23 . Sensitivity of defined benefit pension scheme estimates For detailed disclosures, see ‘Actuarial assumption sensitivities’ in Note 23 . The Scheme is 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 support the values obtained in respect of these assets 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 testing methodology, including the need for planning assumptions and internal capital allocations – Identifying the indicators of potential impairment 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 14 . Sensitivity of goodwill For detailed disclosures, see ‘Sensitivities of key assumptions in calculating VIU’ in Note 20 to the Consolidated Financial Statements in the 2023 Annual Report . |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 the need for any judgemental adjustments – Determining the need to assess corporate Stage 3 exposures individually Key estimates – Forward-looking multiple economic scenario assumptions – Probability weights assigned to multiple economic scenarios Key judgements – Determining whether a present obligation exists – Determining 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 testing methodology, including the need for planning assumptions and internal capital allocations – Identifying the indicators of potential impairment 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, 2024 | |
Disclosure of operating segments [abstract] | |
Summary of Results by Segment | Results by segment For the half year to Retail & Business Banking Consumer Finance Corporate & Commercial Banking Corporate Centre Total 30 June 2024 £m £m £m £m £m Net interest income/(expense) 1,684 74 383 (37) 2,104 Non-interest income/(expense) 62 83 67 (21) 191 Total operating income/(expense) 1,746 157 450 (58) 2,295 Operating expenses before credit impairment charges, provisions and charges (999) (77) (205) 2 (1,279) Credit impairment charges (49) (8) (3) (1) (61) Provisions for other liabilities and charges (98) (15) (18) (11) (142) Total credit impairment charges, provisions and charges (147) (23) (21) (12) (203) Profit/(loss) before tax 600 57 224 (68) 813 Revenue/(expense) from external customers 1,686 360 264 (15) 2,295 Inter-segment revenue/(expense) 60 (203) 186 (43) — Total operating income/(expense) 1,746 157 450 (58) 2,295 Revenue from external customers includes the following fee and commission income: (1) – Current account and debit card fees 212 — 26 — 238 – Insurance, protection and investments 25 — — — 25 – Credit cards 45 — — — 45 – Non-banking and other fees (2) 2 14 37 9 62 Total fee and commission income 284 14 63 9 370 Fee and commission expense (221) (4) (6) (11) (242) Net fee and commission income/(expense) 63 10 57 (2) 128 Customer loans 175,262 4,880 18,084 — 198,226 Customer deposits 150,982 — 25,372 4,794 181,148 30 June 2023 £m £m £m £m £m Net interest income 1,865 79 405 12 2,361 Non-interest income/(expense) 88 100 67 (22) 233 Total operating income 1,953 179 472 (10) 2,594 Operating expenses before credit impairment charges, provisions and charges (912) (73) (170) (64) (1,219) Credit impairment charges (55) (14) (36) — (105) Provisions for other liabilities and charges (106) (3) 4 (43) (148) Total credit impairment charges, provisions and charges (161) (17) (32) (43) (253) Profit/(loss) before tax 880 89 270 (117) 1,122 Revenue from external customers 1,856 313 364 61 2,594 Inter-segment revenue/(expense) 97 (134) 108 (71) — Total operating income/(expense) 1,953 179 472 (10) 2,594 Revenue from external customers includes the following fee and commission income: (1) – Current account and debit card fees 227 — 31 — 258 – Insurance, protection and investments 24 — — — 24 – Credit cards 49 — — — 49 – Non-banking and other fees (2) 1 12 53 4 70 Total fee and commission income 301 12 84 4 401 Fee and commission expense (216) (3) (26) (6) (251) Net fee/(expense) and commission income 85 9 58 (2) 150 31 December 2023 Customer loans 179,887 5,228 17,939 — 203,054 Customer deposits 158,329 — 24,066 5,050 187,445 (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. |
Summary Of Relationship Between Customer Liabilities And Deposits | The table below shows the relationship between Customer assets and Loans and advances to customers as presented in the Condensed Consolidated Balance Sheet. Customer assets exclude Joint ventures, as they carry low credit risk and therefore have an immaterial ECL, and Other items, mainly accrued interest that we have not yet charged to the customer's account and cash collateral. It also shows the relationship between customer liabilities (see above) and Deposits by customers as presented in the Condensed Consolidated Balance Sheet. Net carrying amount Assets Liabilities 30 June 2024 31 December 2023 30 June 2024 31 December 2023 £m £m £m £m Customer balances (gross) 198,226 203,054 181,148 187,445 Loan loss allowance (860) (914) — — Customer balances (net) 197,366 202,140 181,148 187,445 Intercompany balances 4,901 4,544 3,406 2,825 Accrued interest 434 739 1,002 830 Other items 342 12 (682) (250) Loans and advances to customers / Deposits by customers 203,043 207,435 184,874 190,850 |
Operating Expenses Before Cre_2
Operating Expenses Before Credit Impairment Charges, Provisions and Charges (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Expenses by nature [abstract] | |
Summary of Operating Expenses Before Credit Impairment Losses, Provisions and Charges | 30 June 2024 30 June 2023 £m £m Staff costs 641 611 Other administration expenses 488 474 Depreciation, amortisation and impairment 150 134 1,279 1,219 |
Credit Impairment Charges and_2
Credit Impairment Charges and Provisions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure Of Credit Impairment Loss And Provisions [Abstract] | |
Summary of Impairment Losses and Provisions | 30 June 2024 30 June 2023 £m £m Credit impairment charges: Loans and advances to customers 33 98 Recoveries of loans and advances, net of collection costs 8 4 Off-balance sheet credit exposures (See Note 22) 20 3 61 105 Provisions for other liabilities and charges (excluding off-balance sheet credit exposures) (See Note 22) 141 149 Charge/(release) for residual value and voluntary termination 1 (1) 142 148 203 253 |
Taxation (Tables)
Taxation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 H124 was 26.2% ( H123 : 27.5% ). Tax on profit differs from that calculated at the statutory rate as follows: For the half year to 30 June 2024 30 June 2023 £m £m Profit before tax 813 1,122 Tax calculated at the statutory rate of 25% (H123: 23.5%) 203 264 Bank surcharge on profits 23 44 Non-deductible preference dividends paid 4 5 Non-deductible UK Bank Levy 5 8 Non-deductible conduct remediation, fines and penalties — 3 Other non-deductible costs and non-taxable income 2 3 Tax relief on dividends in respect of other equity instruments (20) (19) Adjustment to prior year provisions (4) — Tax on profit 213 308 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
Disclosure of Notional Amounts and Fair Values of Derivatives | The table below includes the notional amounts of transactions outstanding at the balance sheet date; they do not represent actual exposures. 30 June 2024 31 December 2023 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 13,170 91 97 12,927 92 217 Interest rate contracts (1) 25,892 326 549 28,351 389 583 Equity and credit contracts 727 141 19 765 133 20 Total derivatives held for trading 39,789 558 665 42,043 614 820 Derivatives held for hedging Designated as fair value hedges: Exchange rate contracts 1,398 40 1 1,145 29 2 Interest rate contracts 137,260 1,101 488 107,540 1,275 839 138,658 1,141 489 108,685 1,304 841 Designated as cash flow hedges: Exchange rate contracts 20,544 729 288 21,618 1,008 289 Interest rate contracts (1) 62,615 468 1,064 50,896 553 915 83,159 1,197 1,352 72,514 1,561 1,204 Total derivatives held for hedging 221,817 2,338 1,841 181,199 2,865 2,045 Derivative netting (2) — (1,765) (1,765) — (2,047) (2,047) Total derivatives 261,606 1,131 741 223,242 1,432 818 (1) Interest rate contracts include inflation rate contracts. (2) 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 £682m ( 2023 : £472m ) and the amount of cash collateral paid that had been offset against the gross derivative liabilities was £1m ( 2023 : £12m ). |
Other Financial Assets at Fai_2
Other Financial Assets at Fair Value Through Profit or Loss (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Financial assets at fair value through profit or loss [abstract] | |
Summary of Other Financial Assets at Fair Value Through Profit or Loss | 30 June 2024 31 December 2023 £m £m Loans and advances to customers 44 46 Debt securities 165 167 Other debt instruments 40 49 249 262 |
Loans and Advances to Custome_2
Loans and Advances to Customers (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Net Loans And Advances To Customers [Abstract] | |
Summary of Net Loans and Advances to Customers | 30 June 2024 31 December 2023 £m £m Loans and advances to customers 203,925 208,370 Credit impairment loss allowances on loans and advances to customers (860) (914) Residual value and voluntary termination provisions on finance leases (22) (21) Net loans and advances to customers 203,043 207,435 |
Securitisations and Covered B_2
Securitisations and Covered Bonds (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 2024 and 31 December 2023 were: 30 June 2024 31 December 2023 £m £m Mortgage-backed master trust structures: – Holmes 4,669 3,242 – Fosse 2,724 2,048 7,393 5,290 Other asset-backed securitisation structures: – Repton 766 757 766 757 Total securitisation programmes 8,159 6,047 Covered bond programme: – Euro 35bn Global Covered Bond Programme 25,030 21,880 Total securitisation and covered bond programmes 33,189 27,927 |
Summary of Issuances and Redemptions of Securitisation and Covered Bond Programme | The following table sets out the internal and external issuances and redemptions in H124 and H123 for each securitisation and covered bond programme. Internal issuances External issuances Internal redemptions External redemptions H124 H123 H124 H123 H124 H123 H124 H123 £m £m £m £m £m £m £m £m Mortgage-backed master trust structures: – Holmes 106 118 750 750 — 30 — 142 – Fosse 760 — — — — — — — Other asset-backed securitisation structures: – Motor — — — — — — — 7 – Repton — — — 550 — — — — Covered bond programme: – Euro 35bn Global Covered Bond Programme — 1,100 4,099 1,500 41 5 1,962 1,017 866 1,218 4,849 2,800 41 35 1,962 1,166 |
Reverse Repurchase Agreements_2
Reverse Repurchase Agreements - Non Trading (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure Of Reserve Repurchase Agreements Non-Trading [Abstract] | |
Summary of Reverse Repurchase Agreements - Non Trading | 30 June 2024 31 December 2023 £m £m Agreements with banks 1,949 2,397 Agreements with customers 13,370 10,071 15,319 12,468 30 June 2024 31 December 2023 £m £m Agreements with banks 616 551 Agreements with customers 6,007 7,860 6,623 8,411 |
Other Financial Assets at Amo_2
Other Financial Assets at Amortised Cost (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Financial assets at fair value through profit or loss [abstract] | |
Summary of Other Financial Assets at Amortised Cost | 30 June 2024 31 December 2023 £m £m Debt securities 1,744 152 1,744 152 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 2024 918 877 67 635 263 2,760 Additions — 21 — 104 16 141 Disposals (3) (16) — (117) (13) (149) At 30 June 2024 915 882 67 622 266 2,752 Accumulated depreciation: At 1 January 2024 226 653 67 147 173 1,266 Charge for the period 11 32 — 37 9 89 Disposals (2) (15) — (41) — (58) At 30 June 2024 235 670 67 143 182 1,297 Carrying amount 680 212 — 479 84 1,455 (1) Property, plant and equipment includes investment properties of £16m ( 2023 : £17m ). |
Other Financial Liabilities a_2
Other Financial Liabilities at Fair Value Through Profit or Loss (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of financial liabilities [abstract] | |
Summary of Other Financial Liabilities at Fair Value Through Profit or Loss | 30 June 2024 31 December 2023 £m £m Structured Notes Programmes 362 369 Structured deposits 518 426 Zero Amortising Guaranteed Notes 93 104 973 899 |
Deposits by Customers (Tables)
Deposits by Customers (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deposits from customers [abstract] | |
Schedule of Deposits by Customers | 30 June 2024 31 December 2023 £m £m Demand and time deposits (1) 181,468 188,004 Amounts due to other Santander UK Group Holdings plc subsidiaries 123 114 Amounts due to Santander UK Group Holdings plc (2) 1,778 1,772 Amounts due to fellow Banco Santander subsidiaries and joint ventures 1,505 960 184,874 190,850 (1) Includes capital amount guaranteed / protected equity index-linked deposits of £232m ( 2023 : £304m ). (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, 2024 | |
Disclosure Of Deposits From Banks [Abstract] | |
Schedule of Deposits by Banks | 30 June 2024 31 December 2023 £m £m Items in the course of transmission 973 732 Deposits held as collateral 578 860 Other deposits (1) 14,944 18,737 Amounts due to Santander UK subsidiaries 4 3 16,499 20,332 (1) Includes balance drawn from the TFSME of £13.0bn ( 2023 : £17.0bn |
Repurchase Agreements - Non T_2
Repurchase Agreements - Non Trading (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure Of Repurchase Agreements [Abstract] | |
Summary of Reverse Repurchase Agreements - Non Trading | 30 June 2024 31 December 2023 £m £m Agreements with banks 1,949 2,397 Agreements with customers 13,370 10,071 15,319 12,468 30 June 2024 31 December 2023 £m £m Agreements with banks 616 551 Agreements with customers 6,007 7,860 6,623 8,411 |
Debt Securities in Issue (Table
Debt Securities in Issue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Securities In Issue [Abstract] | |
Summary of Debt Securities in Issue | 30 June 2024 31 December 2023 £m £m Medium-term notes 8,879 11,656 Euro €35bn Global Covered Bond Programme 16,896 15,000 US $20bn Commercial Paper Programmes 2,968 2,761 Certificates of deposit 1,397 1,530 Credit linked notes 387 194 Securitisation programmes 3,526 2,769 34,053 33,910 |
Subordinated Liabilities (Table
Subordinated Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Subordinated liabilities [abstract] | |
Schedule of Subordinated Liabilities | 30 June 2024 31 December 2023 £m £m £325m Sterling preference shares 343 343 Undated subordinated liabilities 205 205 Dated subordinated liabilities 1,849 1,838 2,397 2,386 |
Provisions (Tables)
Provisions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of other provisions [abstract] | |
Summary of Provisions Reconciliation | Customer remediation Litigation and other regulatory Regulatory levies and fees Bank Levy Property ECL on undrawn facilities and guarantees Restructuring Other Total £m £m £m £m £m £m £m £m £m At 1 January 2024 106 132 — — 47 78 32 7 402 Additional provisions (See Note 4) 6 4 41 — — 20 13 83 167 Provisions released (See Note 4) — (4) — — (1) — — — (5) Utilisation and other (39) (28) (1) — (13) — (27) (76) (184) At 30 June 2024 73 104 40 — 33 98 18 14 380 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 2024 31 December 2023 £m £m Assets/(liabilities) Funded defined benefit pension scheme - surplus 622 723 Funded defined benefit pension scheme - deficit (6) (41) Unfunded pension and post-retirement medical benefits (24) (25) Total net assets 592 657 The amounts recognised in other comprehensive income were as follows: For the half year to 30 June 2024 30 June 2023 £m £m Return on plan assets (excluding amounts included in net interest expense) 634 470 Actuarial (gains) arising from changes in demographic assumptions (88) — Actuarial losses arising from experience adjustments 64 89 Actuarial (gains) arising from changes in financial assumptions (451) (399) Pension remeasurement 159 160 The net assets recognised in the balance sheet were determined as follows: 30 June 2024 31 December 2023 £m £m Present value of defined benefit obligations (7,725) (8,201) Fair value of scheme assets 8,317 8,858 Net defined benefit assets 592 657 The principal actuarial assumptions used for the Scheme were: 30 June 2024 31 December 2023 % % To determine benefit obligations (1) : – Discount rate for scheme liabilities 5.2 4.6 – General price inflation 3.1 3.0 – General salary increase 1 1.0 – Expected rate of pension increase 2.9 3.0 Years Years Longevity at 60 for current pensioners, on the valuation date: – Males 27.1 27.0 – Females 29.8 29.8 Longevity at 60 for future pensioners currently aged 40, on the valuation date: – Males 28.7 28.6 – Females 31.4 31.3 (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 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 30 June 2024 31 December 2023 Assumption Change in pension obligation at period end from £m £m Discount rate 50 bps increase (460) (507) General price inflation 50 bps increase 348 385 Mortality Each additional year of longevity assumed 201 223 |
Summary of Net Assets Recognised | The net assets recognised in the balance sheet were determined as follows: 30 June 2024 31 December 2023 £m £m Present value of defined benefit obligations (7,725) (8,201) Fair value of scheme assets 8,317 8,858 Net defined benefit assets 592 657 |
Summary of Principal Actuarial Assumptions Used for Defined Benefit Schemes | The principal actuarial assumptions used for the Scheme were: 30 June 2024 31 December 2023 % % To determine benefit obligations (1) : – Discount rate for scheme liabilities 5.2 4.6 – General price inflation 3.1 3.0 – General salary increase 1 1.0 – Expected rate of pension increase 2.9 3.0 Years Years Longevity at 60 for current pensioners, on the valuation date: – Males 27.1 27.0 – Females 29.8 29.8 Longevity at 60 for future pensioners currently aged 40, on the valuation date: – Males 28.7 28.6 – Females 31.4 31.3 (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 30 June 2024 31 December 2023 Assumption Change in pension obligation at period end from £m £m Discount rate 50 bps increase (460) (507) General price inflation 50 bps increase 348 385 Mortality Each additional year of longevity assumed 201 223 |
Contingent Liabilities and Co_2
Contingent Liabilities and Commitments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of contingent liabilities [abstract] | |
Summary of Contingent Liabilities and Commitments | 30 June 2024 31 December 2023 £m £m Guarantees given to third parties 420 452 Formal standby facilities, credit lines and other commitments 36,757 30,976 37,177 31,428 |
Other Equity Instruments (Table
Other Equity Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure of classes of share capital [abstract] | |
Summary of Other Equity Instruments | Interest rate 30 June 2024 31 December 2023 % Next call date £m £m AT1 securities: - £500m Perpetual Capital Securities 6.75 June 2024 — 496 - £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 June 2027 750 750 - £400m Perpetual Capital Securities 8.75 Sept 2029 400 — 1,860 1,956 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 2024 and 31 December 2023 . Cash and balances at central banks, which consist of demand deposits with the Bank of England, together with cash in tills and ATMs, have been excluded from the table as the carrying amount is deemed an appropriate 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 39 (d) to the Consolidated Financial Statements in the 2023 Annual Report. 30 June 2024 31 December 2023 Fair Carrying Fair Carrying value value value value £m £m £m £m Assets Loans and advances to customers 200,648 203,043 205,917 207,435 Loans and advances to banks 1,040 1,040 1,080 1,080 Reverse repurchase agreements - non-trading 15,315 15,319 12,470 12,468 Other financial assets at amortised cost 1,737 1,744 144 152 218,740 221,146 219,611 221,135 Liabilities Deposits by customers 184,436 184,874 190,632 190,850 Deposits by banks 16,524 16,499 20,382 20,332 Repurchase agreements - non-trading 6,626 6,623 8,413 8,411 Debt securities in issue 34,059 34,053 33,621 33,910 Subordinated liabilities 2,613 2,397 2,800 2,386 244,258 244,446 255,848 255,889 |
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 2024 and 31 December 2023 , analysed by their levels in the fair value hierarchy - Level 1, Level 2 and Level 3. 30 June 2024 31 December 2023 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 — 860 — 860 — 1,129 — 1,129 A Interest rate contracts — 1,895 — 1,895 — 2,216 1 2,217 A & C Equity and credit contracts — 104 37 141 — 98 35 133 B & D Netting — (1,765) — (1,765) — (2,047) — (2,047) — 1,094 37 1,131 — 1,396 36 1,432 Other financial assets at FVTPL Loans and advances to customers — — 44 44 — — 46 46 A Debt securities — 165 40 205 — 167 49 216 A, B & D — 165 84 249 — 167 95 262 Financial assets at FVOCI Debt securities 8,293 325 — 8,618 8,293 188 — 8,481 D 8,293 325 — 8,618 8,293 188 — 8,481 Total assets at fair value 8,293 1,584 121 9,998 8,293 1,751 131 10,175 Liabilities Derivative financial instruments Exchange rate contracts — 386 — 386 — 508 — 508 A Interest rate contracts — 2,101 — 2,101 — 2,336 1 2,337 A & C Equity and credit contracts — 6 13 19 — 11 9 20 B & D Netting — (1,765) — (1,765) — (2,047) — (2,047) — 728 13 741 — 808 10 818 Other financial liabilities at FVTPL Debt securities in issue — 362 — 362 — 369 — 369 A Structured deposits — 518 — 518 — 426 — 426 A Zero Amortising Guaranteed Notes — 93 — 93 — 104 — 104 D — 973 — 973 — 899 — 899 Total liabilities at fair value — 1,701 13 1,714 — 1,707 10 1,717 |
Summary of Fair Value Adjustment | The fair value adjustments are set out in the following table: 30 June 2024 31 December 2023 £m £m Risk-related: - Bid-offer and trade specific adjustments 8 (6) - Uncertainty 5 6 - Credit risk adjustment — 1 - Funding fair value adjustment — 1 13 2 Day One profit 1 1 14 3 |
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 H124 : Assets Liabilities Derivatives Other financial assets at FVTPL Total Derivatives Total £m £m £m £m £m At 1 January 2024 36 95 131 (10) (10) Total gains/(losses) recognised: Fair value movements (1) 6 (1) 5 (4) (4) Settlements (5) (10) (15) 1 1 At 30 June 2024 37 84 121 (13) (13) Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period (1) 6 (1) 5 (4) (4) (1) Fair value movements relating to derivatives and other financial assets at FVTPL are recognised in other operating income in the income statement. |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Assets and Liabilities Held for Sale [Abstract] | |
Disclosure of Assets Classified as Held for Sale | At 30 June 2024 and 31 December 2023 , assets held for sale comprised: 30 June 2024 31 December 2023 £m £m Assets Property, plant and equipment 13 13 Total assets held for sale 13 13 |
Segments - Additional Informati
Segments - Additional Information (Details) | Jun. 30, 2024 segment |
Disclosure of operating segments [abstract] | |
Number of segments | 4 |
Segments - Summary of Results b
Segments - Summary of Results by Segment (Details) - GBP (£) £ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Disclosure of operating segments [line items] | |||
Net interest income/(expense) | £ 2,104 | £ 2,361 | |
Non-interest income/(expense) | 191 | 233 | |
Total operating income/(expense) | 2,295 | 2,594 | |
Operating expenses before credit impairment charges, provisions and charges | (1,279) | (1,219) | |
Credit impairment charges | (61) | (105) | |
Provisions for other liabilities and charges | (142) | (148) | |
Total credit impairment charges, provisions and charges | (203) | (253) | |
Profit before tax | 813 | 1,122 | |
Revenue from external customers | 2,295 | 2,594 | |
Inter-segment revenue/(expense) | 2,295 | 2,594 | |
Revenue from external customers includes the following fee and commission income | |||
Current account and debit card fees | 238 | 258 | |
Insurance, protection and investments | 25 | 24 | |
Credit cards | 45 | 49 | |
Non-banking and other fees | 62 | 70 | |
Total fee and commission income | 370 | 401 | |
Fee and commission expense | (242) | (251) | |
Net fee and commission income | 128 | 150 | |
Customer loans | 198,226 | £ 203,054 | |
Customer deposits | 181,148 | 187,445 | |
Inter-segment revenue/(expense) | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue/(expense) | 0 | 0 | |
Retail and Business Banking | |||
Disclosure of operating segments [line items] | |||
Net interest income/(expense) | 1,684 | 1,865 | |
Non-interest income/(expense) | 62 | 88 | |
Total operating income/(expense) | 1,746 | 1,953 | |
Operating expenses before credit impairment charges, provisions and charges | (999) | (912) | |
Credit impairment charges | (49) | (55) | |
Provisions for other liabilities and charges | (98) | (106) | |
Total credit impairment charges, provisions and charges | (147) | (161) | |
Profit before tax | 600 | 880 | |
Revenue from external customers | 1,686 | 1,856 | |
Revenue from external customers includes the following fee and commission income | |||
Current account and debit card fees | 212 | 227 | |
Insurance, protection and investments | 25 | 24 | |
Credit cards | 45 | 49 | |
Non-banking and other fees | 2 | 1 | |
Total fee and commission income | 284 | 301 | |
Fee and commission expense | (221) | (216) | |
Net fee and commission income | 63 | 85 | |
Customer loans | 175,262 | 179,887 | |
Customer deposits | 150,982 | 158,329 | |
Retail and Business Banking | Inter-segment revenue/(expense) | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue/(expense) | 60 | 97 | |
Consumer Finance | |||
Disclosure of operating segments [line items] | |||
Net interest income/(expense) | 74 | 79 | |
Non-interest income/(expense) | 83 | 100 | |
Total operating income/(expense) | 157 | 179 | |
Operating expenses before credit impairment charges, provisions and charges | (77) | (73) | |
Credit impairment charges | (8) | (14) | |
Provisions for other liabilities and charges | (15) | (3) | |
Total credit impairment charges, provisions and charges | (23) | (17) | |
Profit before tax | 57 | 89 | |
Revenue from external customers | 360 | 313 | |
Revenue from external customers includes the following fee and commission income | |||
Current account and debit card fees | 0 | 0 | |
Insurance, protection and investments | 0 | 0 | |
Credit cards | 0 | 0 | |
Non-banking and other fees | 14 | 12 | |
Total fee and commission income | 14 | 12 | |
Fee and commission expense | (4) | (3) | |
Net fee and commission income | 10 | 9 | |
Customer loans | 4,880 | 5,228 | |
Customer deposits | 0 | 0 | |
Consumer Finance | Inter-segment revenue/(expense) | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue/(expense) | (203) | (134) | |
Corporate & Commercial Banking | |||
Disclosure of operating segments [line items] | |||
Net interest income/(expense) | 383 | 405 | |
Non-interest income/(expense) | 67 | 67 | |
Total operating income/(expense) | 450 | 472 | |
Operating expenses before credit impairment charges, provisions and charges | (205) | (170) | |
Credit impairment charges | (3) | (36) | |
Provisions for other liabilities and charges | (18) | 4 | |
Total credit impairment charges, provisions and charges | (21) | (32) | |
Profit before tax | 224 | 270 | |
Revenue from external customers | 264 | 364 | |
Revenue from external customers includes the following fee and commission income | |||
Current account and debit card fees | 26 | 31 | |
Insurance, protection and investments | 0 | 0 | |
Credit cards | 0 | 0 | |
Non-banking and other fees | 37 | 53 | |
Total fee and commission income | 63 | 84 | |
Fee and commission expense | (6) | (26) | |
Net fee and commission income | 57 | 58 | |
Customer loans | 18,084 | 17,939 | |
Customer deposits | 25,372 | 24,066 | |
Corporate & Commercial Banking | Inter-segment revenue/(expense) | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue/(expense) | 186 | 108 | |
Corporate Centre | |||
Disclosure of operating segments [line items] | |||
Net interest income/(expense) | (37) | 12 | |
Non-interest income/(expense) | (21) | (22) | |
Total operating income/(expense) | (58) | (10) | |
Operating expenses before credit impairment charges, provisions and charges | 2 | (64) | |
Credit impairment charges | (1) | 0 | |
Provisions for other liabilities and charges | (11) | (43) | |
Total credit impairment charges, provisions and charges | (12) | (43) | |
Profit before tax | (68) | (117) | |
Revenue from external customers | (15) | 61 | |
Revenue from external customers includes the following fee and commission income | |||
Current account and debit card fees | 0 | 0 | |
Insurance, protection and investments | 0 | 0 | |
Credit cards | 0 | 0 | |
Non-banking and other fees | 9 | 4 | |
Total fee and commission income | 9 | 4 | |
Fee and commission expense | (11) | (6) | |
Net fee and commission income | (2) | (2) | |
Customer loans | 0 | 0 | |
Customer deposits | 4,794 | £ 5,050 | |
Corporate Centre | Inter-segment revenue/(expense) | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue/(expense) | £ (43) | £ (71) |
Segments - Schedule Of Relation
Segments - Schedule Of Relationship between Customer Assets and Loans and Advances (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Customer balances (gross) | £ 198,226 | £ 203,054 |
Loan loss allowance | (860) | (914) |
Customer balances (net) | 197,366 | 202,140 |
Accrued interest | 434 | 739 |
Other items | 342 | 12 |
Net loans and advances to customers | 203,043 | 207,435 |
Liabilities | ||
Customer balances (gross) | 181,148 | 187,445 |
Customer balances (net) | 181,148 | 187,445 |
Accrued interest | 1,002 | 830 |
Other items | (682) | (250) |
Deposits by customers | 184,874 | 190,850 |
Intercompany balances | ||
Assets | ||
Intercompany balances | 4,901 | 4,544 |
Liabilities | ||
Intercompany balances | £ 3,406 | £ 2,825 |
Operating Expenses Before Cre_3
Operating Expenses Before Credit Impairment Charges, Provisions and Charges - Summary of Operating Expenses Before Credit Impairment Losses, Provisions and Charges (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Expenses by nature [abstract] | ||
Staff costs | £ 641 | £ 611 |
Other administration expenses | 488 | 474 |
Depreciation, amortisation and impairment | 150 | 134 |
Total operating expenses before impairment losses, provisions and charges | £ 1,279 | £ 1,219 |
Credit Impairment Charges and_3
Credit Impairment Charges and Provisions - Summary of Impairment Losses and Provisions (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Disclosure Of Credit Impairment Loss And Provisions [Abstract] | ||
Loans and advances to customers | £ 33 | £ 98 |
Recoveries of loans and advances, net of collection costs | 8 | 4 |
Off-balance sheet credit exposures (See Note 22) | 20 | 3 |
Credit impairment charges: | 61 | 105 |
Provisions for other liabilities and charges (excluding off-balance sheet credit exposures) (See Note 22) | 141 | 149 |
Charge/(release) for residual value and voluntary termination | 1 | (1) |
Provisions for other liabilities and charges | 142 | 148 |
Total operating credit impairment (charges)/write-backs, provisions and charges | £ 203 | £ 253 |
Credit Impairment Charges and_4
Credit Impairment Charges and Provisions - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
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, 2024 | Jun. 30, 2023 | |
Major components of tax expense (income) [abstract] | ||
Effective tax rate (percentage) | 26.20% | 27.50% |
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, 2024 | Jun. 30, 2023 | |
Major components of tax expense (income) [abstract] | ||
Profit before tax | £ 813 | £ 1,122 |
Tax calculated at the statutory rate of 25% (H123: 23.5%) | 203 | 264 |
Bank surcharge on profits | 23 | 44 |
Non-deductible preference dividends paid | 4 | 5 |
Non-deductible UK Bank Levy | 5 | 8 |
Non-deductible conduct remediation, fines and penalties | 0 | 3 |
Other non-deductible costs and non-taxable income | 2 | 3 |
Tax relief on dividends in respect of other equity instruments | (20) | (19) |
Adjustment to prior year provisions | (4) | 0 |
Tax on profit | £ 213 | £ 308 |
Dividends on Ordinary Shares (D
Dividends on Ordinary Shares (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Dividends On Ordinary Shares [Abstract] | ||
Dividends declared and paid | £ 554 | £ 410 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Disclosure of Notional Amounts and Fair Values of Derivatives (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure of detailed information about hedges | ||
Notional amount | £ 261,606 | £ 223,242 |
Assets | 1,131 | 1,432 |
Liabilities | 741 | 818 |
Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Notional amount | 39,789 | 42,043 |
Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 221,817 | 181,199 |
Designated as fair value hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 138,658 | 108,685 |
Designated as cash flow hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 83,159 | 72,514 |
Exchange rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Notional amount | 13,170 | 12,927 |
Exchange rate contracts | Designated as fair value hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 1,398 | 1,145 |
Exchange rate contracts | Designated as cash flow hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 20,544 | 21,618 |
Interest rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Notional amount | 25,892 | 28,351 |
Interest rate contracts | Designated as fair value hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 137,260 | 107,540 |
Interest rate contracts | Designated as cash flow hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Notional amount | 62,615 | 50,896 |
Equity and credit contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Notional amount | 727 | 765 |
Derivative assets | ||
Disclosure of detailed information about hedges | ||
Cash collateral received subject to enforceable master netting arrangement or similar agreement set off against financial assets | 682 | 472 |
Derivative liabilities | ||
Disclosure of detailed information about hedges | ||
Cash collateral pledged subject to enforceable master netting arrangement or similar agreement set off against financial liabilities | 1 | 12 |
Fair value | ||
Disclosure of detailed information about hedges | ||
Assets | 1,131 | 1,432 |
Liabilities | 741 | 818 |
Fair value | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Assets | 558 | 614 |
Liabilities | 665 | 820 |
Fair value | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 2,338 | 2,865 |
Liabilities | 1,841 | 2,045 |
Fair value | Designated as fair value hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 1,141 | 1,304 |
Liabilities | 489 | 841 |
Fair value | Designated as cash flow hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 1,197 | 1,561 |
Liabilities | 1,352 | 1,204 |
Fair value | Exchange rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Assets | 91 | 92 |
Liabilities | 97 | 217 |
Fair value | Exchange rate contracts | Designated as fair value hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 40 | 29 |
Liabilities | 1 | 2 |
Fair value | Exchange rate contracts | Designated as cash flow hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 729 | 1,008 |
Liabilities | 288 | 289 |
Fair value | Interest rate contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Assets | 326 | 389 |
Liabilities | 549 | 583 |
Fair value | Interest rate contracts | Designated as fair value hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 1,101 | 1,275 |
Liabilities | 488 | 839 |
Fair value | Interest rate contracts | Designated as cash flow hedges: | Derivatives held for hedging | ||
Disclosure of detailed information about hedges | ||
Assets | 468 | 553 |
Liabilities | 1,064 | 915 |
Fair value | Equity and credit contracts | Derivatives held for trading: | ||
Disclosure of detailed information about hedges | ||
Assets | 141 | 133 |
Liabilities | 19 | 20 |
Fair value | Derivative netting | ||
Disclosure of detailed information about hedges | ||
Assets | (1,765) | (2,047) |
Liabilities | £ (1,765) | £ (2,047) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Disclosure of detailed information about hedging instruments [line items] | |||
Derivative financial assets | £ 1,131 | £ 1,432 | |
Derivative financial liabilities | 741 | 818 | |
Fair value | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Derivative financial assets | 1,131 | 1,432 | |
Derivative financial liabilities | 741 | £ 818 | |
Fair value | Group Entities | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Derivative financial assets | 484 | £ 762 | |
Derivative financial liabilities | £ 254 | £ 230 |
Other Financial Assets at Fai_3
Other Financial Assets at Fair Value Through Profit or Loss (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure Of Other Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at fair value through profit or loss | £ 249 | £ 262 |
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 | 44 | 46 |
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 | 165 | 167 |
Other debt instruments | ||
Disclosure Of Other Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at fair value through profit or loss | £ 40 | £ 49 |
Loans and Advances to Custome_3
Loans and Advances to Customers (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Net Loans And Advances To Customers [Abstract] | ||
Loans and advances to customers | £ 203,925 | £ 208,370 |
Credit impairment loss allowances on loans and advances to customers | (860) | (914) |
Residual value and voluntary termination provisions on finance leases | (22) | (21) |
Net loans and advances to customers | £ 203,043 | £ 207,435 |
Securitisations and Covered B_3
Securitisations and Covered Bonds - Disclosure of Analysis of Securitisations and Covered Bonds (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Notional amount | £ 261,606 | £ 223,242 |
Assets recognised in entity's financial statements in relation to structured entities | 33,189 | 27,927 |
Securitisation programmes | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Assets recognised in entity's financial statements in relation to structured entities | 8,159 | 6,047 |
Securitisation programmes | Mortgage-backed master trust structures | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Assets recognised in entity's financial statements in relation to structured entities | 7,393 | 5,290 |
Securitisation programmes | Other asset-backed securitisation structure | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Assets recognised in entity's financial statements in relation to structured entities | 766 | 757 |
Holmes | Securitisation programmes | Mortgage-backed master trust structures | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Assets recognised in entity's financial statements in relation to structured entities | 4,669 | 3,242 |
Fosse | Securitisation programmes | Mortgage-backed master trust structures | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Assets recognised in entity's financial statements in relation to structured entities | 2,724 | 2,048 |
Repton | Securitisation programmes | Other asset-backed securitisation structure | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Assets recognised in entity's financial statements in relation to structured entities | 766 | 757 |
Euro €35bn Global Covered Bond Programme | Covered bond programme | ||
Disclosure Of Securitisations And Covered Bonds [Line Items] | ||
Assets recognised in entity's financial statements in relation to structured entities | £ 25,030 | £ 21,880 |
Securitisations and Covered B_4
Securitisations and Covered Bonds - Summary of Issuances and Redemptions of Securitisation and Covered Bond Programme (Details) £ in Millions, € in Billions | 6 Months Ended | |||||
Jun. 30, 2024 GBP (£) | Jun. 30, 2023 GBP (£) | Jun. 30, 2024 EUR (€) | Dec. 31, 2023 GBP (£) | Dec. 31, 2023 EUR (€) | Jun. 30, 2023 EUR (€) | |
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Notional amount | £ 261,606 | £ 223,242 | ||||
Euro €35bn Global Covered Bond Programme | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Notional amount | € | € 35 | € 35 | € 35 | |||
Internal | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 866 | £ 1,218 | ||||
Internal and external redemptions | 41 | 35 | ||||
External | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 4,849 | 2,800 | ||||
Internal and external redemptions | 1,962 | 1,166 | ||||
Holmes | Mortgage-backed master trust structures | Internal | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 106 | 118 | ||||
Internal and external redemptions | 0 | 30 | ||||
Holmes | Mortgage-backed master trust structures | External | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 750 | 750 | ||||
Internal and external redemptions | 0 | 142 | ||||
Fosse | Mortgage-backed master trust structures | Internal | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 760 | 0 | ||||
Internal and external redemptions | 0 | 0 | ||||
Fosse | Mortgage-backed master trust structures | External | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 0 | 0 | ||||
Internal and external redemptions | 0 | 0 | ||||
Motor | Other asset-backed securitisation structure | Internal | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 0 | 0 | ||||
Internal and external redemptions | 0 | 0 | ||||
Motor | Other asset-backed securitisation structure | External | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 0 | 0 | ||||
Internal and external redemptions | 0 | 7 | ||||
Repton | Other asset-backed securitisation structure | Internal | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 0 | 0 | ||||
Internal and external redemptions | 0 | 0 | ||||
Repton | Other asset-backed securitisation structure | External | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 0 | 550 | ||||
Internal and external redemptions | 0 | 0 | ||||
Euro €35bn Global Covered Bond Programme | Covered bond programme | Internal | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 0 | 1,100 | ||||
Internal and external redemptions | 41 | 5 | ||||
Euro €35bn Global Covered Bond Programme | Covered bond programme | External | ||||||
Issuances And Redemptions Of Securitisation And Covered Bond [Line items] | ||||||
Internal and external issuances | 4,099 | 1,500 | ||||
Internal and external redemptions | £ 1,962 | £ 1,017 |
Reverse Repurchase Agreements_3
Reverse Repurchase Agreements - Non Trading (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure Of Reserve Repurchase Agreements Non-Trading [Line Items] | ||
Reverse repurchase agreements - non-trading | £ 15,319 | £ 12,468 |
Agreements with banks | ||
Disclosure Of Reserve Repurchase Agreements Non-Trading [Line Items] | ||
Reverse repurchase agreements - non-trading | 1,949 | 2,397 |
Agreements with customers | ||
Disclosure Of Reserve Repurchase Agreements Non-Trading [Line Items] | ||
Reverse repurchase agreements - non-trading | £ 13,370 | £ 10,071 |
Other Financial Assets at Amo_3
Other Financial Assets at Amortised Cost (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at amortised cost | £ 1,744 | £ 152 |
Other financial assets | ||
Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at amortised cost | 1,744 | 152 |
Other financial assets | Debt securities | ||
Financial Assets At Fair Value Through Profit Or Loss [Line Items] | ||
Financial assets at amortised cost | £ 1,744 | £ 152 |
Intangible Assets (Details)
Intangible Assets (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | £ 1,199 | £ 1,199 |
Computer software | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets other than goodwill | £ 322 | £ 349 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | £ 1,494 | |
Property, plant and equipment at end of period | 1,455 | |
Investment property | 16 | £ 17 |
Cost: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 2,760 | |
Additions | 141 | |
Disposals | (149) | |
Property, plant and equipment at end of period | 2,752 | |
Accumulated depreciation: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (1,266) | |
Charge for the period | 89 | |
Disposals | 58 | |
Property, plant and equipment at end of period | (1,297) | |
Property | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at end of period | 680 | |
Property | Cost: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 918 | |
Additions | 0 | |
Disposals | (3) | |
Property, plant and equipment at end of period | 915 | |
Property | Accumulated depreciation: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (226) | |
Charge for the period | 11 | |
Disposals | 2 | |
Property, plant and equipment at end of period | (235) | |
Office fixtures and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at end of period | 212 | |
Office fixtures and equipment | Cost: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 877 | |
Additions | 21 | |
Disposals | (16) | |
Property, plant and equipment at end of period | 882 | |
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 | (653) | |
Charge for the period | 32 | |
Disposals | 15 | |
Property, plant and equipment at end of period | (670) | |
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 | 67 | |
Additions | 0 | |
Disposals | 0 | |
Property, plant and equipment at end of period | 67 | |
Computer software | Accumulated depreciation: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (67) | |
Charge for the period | 0 | |
Disposals | 0 | |
Property, plant and equipment at end of period | (67) | |
Operating lease assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at end of period | 479 | |
Operating lease assets | Cost: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 635 | |
Additions | 104 | |
Disposals | (117) | |
Property, plant and equipment at end of period | 622 | |
Operating lease assets | Accumulated depreciation: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (147) | |
Charge for the period | 37 | |
Disposals | 41 | |
Property, plant and equipment at end of period | (143) | |
Right-of-use assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at end of period | 84 | |
Right-of-use assets | Cost: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 263 | |
Additions | 16 | |
Disposals | (13) | |
Property, plant and equipment at end of period | 266 | |
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 | (173) | |
Charge for the period | 9 | |
Disposals | 0 | |
Property, plant and equipment at end of period | £ (182) |
Other Financial Liabilities a_3
Other Financial Liabilities at Fair Value Through Profit or Loss (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure Of Other Financial Liabilities At Fair Value Through Profit Or Loss [Line Items] | ||
Other financial liabilities at fair value through profit or loss | £ 973 | £ 899 |
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 | 362 | 369 |
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 | 518 | 426 |
Zero Amortising Guaranteed Notes | ||
Disclosure Of Other Financial Liabilities At Fair Value Through Profit Or Loss [Line Items] | ||
Other financial liabilities at fair value through profit or loss | £ 93 | £ 104 |
Deposits by Customers (Details)
Deposits by Customers (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | £ 184,874 | £ 190,850 |
Demand and time deposits | ||
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | 181,468 | 188,004 |
Amounts due to other Santander UK Group Holdings plc subsidiaries | ||
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | 123 | 114 |
Amounts due to Santander UK Group Holdings plc | ||
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | 1,778 | 1,772 |
Amounts due to fellow Banco Santander subsidiaries and joint ventures | ||
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | 1,505 | 960 |
Equity index linked deposits | ||
Disclosure Of Deposits From Customers [Line Items] | ||
Deposits by customers | £ 232 | £ 304 |
Deposits by Banks (Details)
Deposits by Banks (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure Of Deposits From Banks [Line Items] | ||
Deposits by banks | £ 16,499 | £ 20,332 |
Drawdown from TFSME | 13,000 | 17,000 |
Items in the course of transmission | ||
Disclosure Of Deposits From Banks [Line Items] | ||
Deposits by banks | 973 | 732 |
Deposits held as collateral | ||
Disclosure Of Deposits From Banks [Line Items] | ||
Deposits by banks | 578 | 860 |
Other deposits | ||
Disclosure Of Deposits From Banks [Line Items] | ||
Deposits by banks | 14,944 | 18,737 |
Amounts due to Santander UK subsidiaries | ||
Disclosure Of Deposits From Banks [Line Items] | ||
Deposits by banks | £ 4 | £ 3 |
Repurchase Agreements - Non T_3
Repurchase Agreements - Non Trading (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure Of Repurchase Agreements [Line Items] | ||
Repurchase agreements - non trading | £ 6,623 | £ 8,411 |
Agreements with banks | ||
Disclosure Of Repurchase Agreements [Line Items] | ||
Repurchase agreements - non trading | 616 | 551 |
Agreements with customers | ||
Disclosure Of Repurchase Agreements [Line Items] | ||
Repurchase agreements - non trading | £ 6,007 | £ 7,860 |
Debt Securities in Issue (Detai
Debt Securities in Issue (Details) £ in Millions, € in Billions, $ in Billions | Jun. 30, 2024 GBP (£) | Jun. 30, 2024 EUR (€) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 GBP (£) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 EUR (€) |
Debt Securities In Issue [Line Items] | |||||||
Notional amount | £ 261,606 | £ 223,242 | |||||
Debt securities | 34,053 | 33,910 | |||||
Medium-term notes | |||||||
Debt Securities In Issue [Line Items] | |||||||
Debt securities | 8,879 | 11,656 | |||||
Euro €35bn Global Covered Bond Programme | |||||||
Debt Securities In Issue [Line Items] | |||||||
Notional amount | € | € 35 | € 35 | € 35 | ||||
Debt securities | 16,896 | 15,000 | |||||
US $20bn Commercial Paper Programmes | |||||||
Debt Securities In Issue [Line Items] | |||||||
Notional amount | $ | $ 20 | $ 20 | |||||
Debt securities | 2,968 | 2,761 | |||||
Certificates of deposit | |||||||
Debt Securities In Issue [Line Items] | |||||||
Debt securities | 1,397 | 1,530 | |||||
Credit linked notes | |||||||
Debt Securities In Issue [Line Items] | |||||||
Credit linked notes | 387 | 194 | |||||
Securitisation programmes | |||||||
Debt Securities In Issue [Line Items] | |||||||
Debt securities | £ 3,526 | £ 2,769 |
Subordinated Liabilities - Sche
Subordinated Liabilities - Schedule of Subordinated Liabilities (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Subordinated liabilities [abstract] | ||
£325m Sterling preference shares, notional amount | £ 325 | £ 325 |
£325m Sterling preference shares | 343 | 343 |
Undated subordinated liabilities | 205 | 205 |
Dated subordinated liabilities | 1,849 | 1,838 |
Subordinated liabilities | £ 2,397 | £ 2,386 |
Subordinated Liabilities - Addi
Subordinated Liabilities - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Subordinated liabilities [abstract] | ||
Profit on repurchase of subordinated liabilities | £ 0 | £ 3 |
Provisions - Summary of Provisi
Provisions - Summary of Provisions Reconciliation (Details) £ in Millions | 6 Months Ended |
Jun. 30, 2024 GBP (£) | |
Disclosure of other provisions [line items] | |
Beginning balance | £ 402 |
Additional provisions (See Note 4) | 167 |
Provisions released (See Note 4) | (5) |
Utilisation and other | (184) |
Ending balance | 380 |
Customer remediation | |
Disclosure of other provisions [line items] | |
Beginning balance | 106 |
Additional provisions (See Note 4) | 6 |
Provisions released (See Note 4) | 0 |
Utilisation and other | (39) |
Ending balance | 73 |
Litigation and other regulatory | |
Disclosure of other provisions [line items] | |
Beginning balance | 132 |
Additional provisions (See Note 4) | 4 |
Provisions released (See Note 4) | (4) |
Utilisation and other | (28) |
Ending balance | 104 |
Regulatory levies and fees | |
Disclosure of other provisions [line items] | |
Beginning balance | 0 |
Additional provisions (See Note 4) | 41 |
Provisions released (See Note 4) | 0 |
Utilisation and other | (1) |
Ending balance | 40 |
Bank Levy | |
Disclosure of other provisions [line items] | |
Beginning balance | 0 |
Additional provisions (See Note 4) | 0 |
Provisions released (See Note 4) | 0 |
Utilisation and other | 0 |
Ending balance | 0 |
Property | |
Disclosure of other provisions [line items] | |
Beginning balance | 47 |
Additional provisions (See Note 4) | 0 |
Provisions released (See Note 4) | (1) |
Utilisation and other | (13) |
Ending balance | 33 |
ECL on undrawn facilities and guarantees | |
Disclosure of other provisions [line items] | |
Beginning balance | 78 |
Additional provisions (See Note 4) | 20 |
Provisions released (See Note 4) | 0 |
Utilisation and other | 0 |
Ending balance | 98 |
Restructuring | |
Disclosure of other provisions [line items] | |
Beginning balance | 32 |
Additional provisions (See Note 4) | 13 |
Provisions released (See Note 4) | 0 |
Utilisation and other | (27) |
Ending balance | 18 |
Other | |
Disclosure of other provisions [line items] | |
Beginning balance | 7 |
Additional provisions (See Note 4) | 83 |
Provisions released (See Note 4) | 0 |
Utilisation and other | (76) |
Ending balance | £ 14 |
Provisions - Additional Informa
Provisions - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Disclosure of other provisions [line items] | ||
Additional provisions | £ 167 | |
Customer remediation | ||
Disclosure of other provisions [line items] | ||
Additional provisions | 6 | |
Operational risk provisions | ||
Disclosure of other provisions [line items] | ||
Additional provisions | 71 | £ 87 |
Fraud losses | ||
Disclosure of other provisions [line items] | ||
Additional provisions | 54 | £ 75 |
Litigation and other regulatory | ||
Disclosure of other provisions [line items] | ||
Additional provisions | 4 | |
Regulatory levies and fees | ||
Disclosure of other provisions [line items] | ||
Additional provisions | 41 | |
Regulatory levies and fees | Bank of England | ||
Disclosure of other provisions [line items] | ||
Additional provisions | £ 37 |
Retirement Benefit Plans - Summ
Retirement Benefit Plans - Summary of Retirement Benefit Plans (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Net assets (liabilities) [abstract] | ||
Total net assets | £ 592 | £ 657 |
Unfunded pension and post-retirement medical benefits | ||
Net assets (liabilities) [abstract] | ||
Surplus (deficit) in plan | (24) | (25) |
Surplus | Funded defined benefit pension scheme | ||
Net assets (liabilities) [abstract] | ||
Surplus (deficit) in plan | 622 | 723 |
Deficit | Funded defined benefit pension scheme | ||
Net assets (liabilities) [abstract] | ||
Surplus (deficit) in plan | £ (6) | £ (41) |
Retirement Benefit Plans - Addi
Retirement Benefit Plans - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Disclosure of net defined benefit liability (asset) [abstract] | ||
Defined contribution expense | £ 40 | £ 33 |
Defined benefit expense | £ 6 | £ 16 |
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, 2024 | Jun. 30, 2023 | |
Disclosure of net defined benefit liability (asset) [abstract] | ||
Return on plan assets (excluding amounts included in net interest expense) | £ 634 | £ 470 |
Actuarial (gains) arising from changes in demographic assumptions | (88) | 0 |
Actuarial losses arising from experience adjustments | 64 | 89 |
Actuarial (gains) arising from changes in financial assumptions | (451) | (399) |
Pension remeasurement | £ 159 | £ 160 |
Retirement Benefit Plans - Su_3
Retirement Benefit Plans - Summary of Net Assets Recognised (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure of net defined benefit liability (asset) [abstract] | ||
Present value of defined benefit obligations | £ (7,725) | £ (8,201) |
Fair value of scheme assets | 8,317 | 8,858 |
Net defined benefit assets | £ 592 | £ 657 |
Retirement Benefit Plans - Su_4
Retirement Benefit Plans - Summary of Principal Actuarial Assumptions Used for Defined Benefit Schemes (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Disclosure of net defined benefit liability (asset) [abstract] | ||
Discount rate for scheme liabilities | 5.20% | 4.60% |
General price inflation | 3.10% | 3% |
General salary increase | 1% | 1% |
Expected rate of pension increase | 2.90% | 3% |
Longevity at 60 for current pensioners, on the valuation date: | ||
Males | 27 years 1 month 6 days | 27 years |
Females | 29 years 9 months 18 days | 29 years 9 months 18 days |
Longevity at 60 for future pensioners currently aged 40, on the valuation date: | ||
Males | 28 years 8 months 12 days | 28 years 7 months 6 days |
Females | 31 years 4 months 24 days | 31 years 3 months 18 days |
Retirement Benefit Plans - Su_5
Retirement Benefit Plans - Summary of Actuarial Assumption Sensitivities (Details) - GBP (£) £ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Percentage of reasonably possible increase in actuarial assumption | 0.50% | 0.50% | |
Description of changes in methods and assumptions | bps increase | bps increase | |
Increase (decrease) in defined benefit obligation | £ (460) | £ (507) | |
General price inflation | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Percentage of reasonably possible increase in actuarial assumption | 0.50% | 0.50% | |
Description of changes in methods and assumptions | bps increase | bps increase | |
Increase (decrease) in defined benefit obligation | £ 348 | 385 | |
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 | £ 201 | £ 223 |
Contingent Liabilities and Co_3
Contingent Liabilities and Commitments - Summary of Contingent Liabilities and Commitments (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||
Guarantees and formal standby facilities, credit lines and other commitments | £ 37,177 | £ 31,428 |
Contingent liability for guarantees | ||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||
Guarantees given to third parties | 420 | 452 |
Loan commitments | ||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||
Formal standby facilities, credit lines and other commitments | £ 36,757 | £ 30,976 |
Contingent Liabilities and Co_4
Contingent Liabilities and Commitments - Additional Information (Details) € in Thousands, £ in Millions | 6 Months Ended | |||
Nov. 02, 2015 | Jun. 30, 2024 EUR (€) | Jun. 29, 2023 GBP (£) | Oct. 21, 2022 GBP (£) | |
Minimum | ||||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||||
Losses on litigation settlements | € 1,000,000 | |||
Maximum | ||||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||||
Santander UK liability under indemnity cap | 39,850 | |||
AXA France | ||||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||||
Amount claimed by other party | £ | £ 552 | £ 670 | ||
UK&I Banks | ||||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||||
Preferred stock issued, threshold value | € 0 | |||
Visa Europe Ltd | ||||
Disclosure Of Contingent Liabilities And Commitments [Line Items] | ||||
Visa Europe Ltd sale to Visa Inc | 100% |
Other Equity Instruments (Detai
Other Equity Instruments (Details) £ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 GBP (£) | Dec. 31, 2023 GBP (£) | |
Disclosure Of Other Equity Instruments [Line Items] | ||
Other equity instruments | £ 1,860 | £ 1,956 |
- £500m Perpetual Capital Securities | ||
Disclosure Of Other Equity Instruments [Line Items] | ||
Capital securities | £ 500 | £ 500 |
Interest rate | 0.0675 | 0.0675 |
Other equity instruments | £ 0 | £ 496 |
- £500m Perpetual Capital Securities | ||
Disclosure Of Other Equity Instruments [Line Items] | ||
Capital securities | £ 500 | £ 500 |
Interest rate | 0.0630 | 0.0630 |
Other equity instruments | £ 500 | £ 500 |
- £210m Perpetual Capital Securities | ||
Disclosure Of Other Equity Instruments [Line Items] | ||
Capital securities | £ 210 | £ 210 |
Interest rate | 0.0425 | 0.0425 |
Other equity instruments | £ 210 | £ 210 |
- £750m Perpetual Capital Securities | ||
Disclosure Of Other Equity Instruments [Line Items] | ||
Capital securities | £ 750 | £ 750 |
Interest rate | 0.0650 | 0.0650 |
Other equity instruments | £ 750 | £ 750 |
- £400m Perpetual Capital Securities | ||
Disclosure Of Other Equity Instruments [Line Items] | ||
Capital securities | £ 400 | £ 400 |
Interest rate | 0.0875 | 0.0875 |
Other equity instruments | £ 400 | £ 0 |
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, 2024 | Dec. 31, 2023 |
Disclosure Of Assets Pledged As Security [Line Items] | ||
Gross assets charged as security for liabilities | £ 33,189 | £ 27,927 |
Internally retained | Securitisations and covered bonds | ||
Disclosure Of Assets Pledged As Security [Line Items] | ||
Notes issued under securitisation and covered bond programmes retained internally | 3,753 | 2,928 |
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 | 1,637 | 839 |
Third party bilateral secured funding transactions | Securitisations and covered bonds | ||
Disclosure Of Assets Pledged As Security [Line Items] | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | £ 1,500 | £ 1,500 |
Financial Instruments - Disclos
Financial Instruments - Disclosure of Analysis of Fair Value of Financial Instruments Carried at Amortised Cost (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Loans and advances to customers | £ 203,043 | £ 207,435 |
Loans and advances to banks | 1,040 | 1,080 |
Reverse repurchase agreements - non-trading | 15,319 | 12,468 |
Other financial assets at amortised cost | 1,744 | 152 |
Deposits by customers | 184,874 | 190,850 |
Deposits by banks | 16,499 | 20,332 |
Repurchase agreements - non trading | 6,623 | 8,411 |
Debt securities in issue | 34,053 | 33,910 |
Subordinated liabilities | 2,397 | 2,386 |
Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Total financial liabilities | 244,446 | 255,889 |
Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Total financial assets | 221,146 | 221,135 |
Deposits by customers | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by customers | 184,874 | 190,850 |
Deposits by banks | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Deposits by banks | 16,499 | 20,332 |
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 | 6,623 | 8,411 |
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 | 34,053 | 33,910 |
Subordinated liabilities | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Subordinated liabilities | 2,397 | 2,386 |
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 | 203,043 | 207,435 |
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 | 1,040 | 1,080 |
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 | 15,319 | 12,468 |
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 | 1,744 | 152 |
Fair value | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Total financial liabilities | 244,258 | 255,848 |
Fair value | Financial assets at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Total financial assets | 218,740 | 219,611 |
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 | 184,436 | 190,632 |
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 | 16,524 | 20,382 |
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 | 6,626 | 8,413 |
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 | 34,059 | 33,621 |
Fair value | Subordinated liabilities | Financial liabilities at amortised cost | ||
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items] | ||
Subordinated liabilities | 2,613 | 2,800 |
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 | 200,648 | 205,917 |
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 | 1,040 | 1,080 |
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 | 15,315 | 12,470 |
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 | £ 1,737 | £ 144 |
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 | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 9,998 | £ 10,175 |
Liabilities at fair value | 1,714 | 1,717 |
Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | 741 | 818 |
Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | 973 | 899 |
Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 1,131 | 1,432 |
Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 249 | 262 |
Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 8,618 | 8,481 |
Level 1 | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 8,293 | 8,293 |
Liabilities at fair value | 0 | 0 |
Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | 0 | 0 |
Level 1 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
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 | 8,293 | 8,293 |
Level 2 | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 1,584 | 1,751 |
Liabilities at fair value | 1,701 | 1,707 |
Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | 728 | 808 |
Level 2 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | 973 | 899 |
Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 1,094 | 1,396 |
Level 2 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 165 | 167 |
Level 2 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 325 | 188 |
Level 3 | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 121 | 131 |
Liabilities at fair value | 13 | 10 |
Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | 13 | 10 |
Level 3 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | 0 | 0 |
Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 37 | 36 |
Level 3 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 84 | 95 |
Level 3 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 0 | £ 0 |
Exchange rate contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Valuation technique | A | A |
Liabilities at fair value | £ 386 | £ 508 |
Exchange rate contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 860 | £ 1,129 |
Valuation technique | A | A |
Exchange rate contracts | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
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] | ||
Liabilities at fair value | 386 | 508 |
Exchange rate contracts | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 860 | 1,129 |
Exchange rate contracts | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
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 | £ 0 |
Interest rate contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Valuation technique | A & C | A & C |
Liabilities at fair value | £ 2,101 | £ 2,337 |
Interest rate contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 1,895 | £ 2,217 |
Valuation technique | A & C | A & C |
Interest rate contracts | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
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] | ||
Liabilities at fair value | 2,101 | 2,336 |
Interest rate contracts | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 1,895 | 2,216 |
Interest rate contracts | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | 0 | 1 |
Interest rate contracts | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 0 | £ 1 |
Equity and credit contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Valuation technique | B & D | B & D |
Liabilities at fair value | £ 19 | £ 20 |
Equity and credit contracts | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 141 | £ 133 |
Valuation technique | B & D | B & D |
Equity and credit contracts | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
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] | ||
Liabilities at fair value | 6 | 11 |
Equity and credit contracts | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 104 | 98 |
Equity and credit contracts | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | 13 | 9 |
Equity and credit contracts | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 37 | 35 |
Netting | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | (1,765) | (2,047) |
Netting | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | (1,765) | (2,047) |
Netting | Level 1 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
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] | ||
Liabilities at fair value | (1,765) | (2,047) |
Netting | Level 2 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | (1,765) | (2,047) |
Netting | Level 3 | Derivative financial instruments | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
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 | £ 44 | £ 46 |
Valuation technique | A | A |
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 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 3 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 44 | 46 |
Debt securities | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 205 | £ 216 |
Valuation technique | A, B & D | A, B & D |
Debt securities | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | £ 8,618 | £ 8,481 |
Valuation technique | D | 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 | 8,293 | 8,293 |
Debt securities | Level 2 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 165 | 167 |
Debt securities | Level 2 | Financial assets at FVOCI | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 325 | 188 |
Debt securities | Level 3 | Other financial assets at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 40 | 49 |
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 | A |
Liabilities at fair value | £ 362 | £ 369 |
Debt securities in issue | Level 1 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
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] | ||
Liabilities at fair value | 362 | 369 |
Debt securities in issue | Level 3 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | £ 0 | £ 0 |
Structured deposits | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Valuation technique | A | A |
Liabilities at fair value | £ 518 | £ 426 |
Structured deposits | Level 1 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
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] | ||
Liabilities at fair value | 518 | 426 |
Structured deposits | Level 3 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | £ 0 | £ 0 |
Zero Amortising Guaranteed Notes | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Valuation technique | D | D |
Liabilities at fair value | £ 93 | £ 104 |
Zero Amortising Guaranteed Notes | Level 1 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | 0 | 0 |
Zero Amortising Guaranteed Notes | Level 2 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | 93 | 104 |
Zero Amortising Guaranteed Notes | Level 3 | Other financial liabilities at FVTPL | ||
Disclosure Of Fair Value Measurements Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | £ 0 | £ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | ||
Transfers out of Level 1 into Level 2 of fair value hierarchy, liabilities held at end of reporting period | £ 0 | £ 0 |
Financial Instruments - Summary
Financial Instruments - Summary of Fair Value Adjustment (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Disclosure of financial assets [line items] | ||
Fair value adjustments | £ 14 | £ 3 |
Risk-related: | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | 13 | 2 |
Day One profit | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | 1 | 1 |
- Bid-offer and trade specific adjustments | Risk-related: | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | 8 | (6) |
- Uncertainty | Risk-related: | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | 5 | 6 |
- Credit risk adjustment | Risk-related: | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | 0 | 1 |
- Funding fair value adjustment | Risk-related: | ||
Disclosure of financial assets [line items] | ||
Fair value adjustments | £ 0 | £ 1 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Reconciliation of Fair Value Measurement in Level 3 of the Fair Value Hierarchy (Details) £ in Millions | 6 Months Ended |
Jun. 30, 2024 GBP (£) | |
Disclosure of fair value measurement of assets [line items] | |
Beginning balance | £ 275,448 |
Beginning balance | (260,825) |
Ending Balance | 264,188 |
Ending Balance | (250,045) |
Level 3 | Other financial assets at FVTPL | |
Disclosure of fair value measurement of assets [line items] | |
Beginning balance | 95 |
Fair value movements | (1) |
Settlements | (10) |
Ending Balance | 84 |
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 | 131 |
Fair value movements | 5 |
Settlements | (15) |
Ending Balance | 121 |
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 | 36 |
Fair value movements | 6 |
Settlements | (5) |
Ending Balance | 37 |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | 6 |
Derivatives | Level 3 | |
Disclosure of fair value measurement of assets [line items] | |
Beginning balance | (10) |
Fair value movements | (4) |
Settlements | 1 |
Ending Balance | (13) |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | (4) |
Financial liabilities at fair value | Level 3 | |
Disclosure of fair value measurement of assets [line items] | |
Beginning balance | (10) |
Fair value movements | (4) |
Settlements | 1 |
Ending Balance | (13) |
Gains/(losses) recognised in profit or loss/other comprehensive income relating to assets and liabilities held at the end of the period | £ (4) |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - GBP (£) £ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Disclosure Of Assets And Liabilities Classified As Held For Sale [Line Items] | ||
Assets held for sale | £ 13 | £ 13 |
Property, plant and equipment | ||
Disclosure Of Assets And Liabilities Classified As Held For Sale [Line Items] | ||
Assets held for sale | £ 13 | £ 13 |